FY 2015 Annual Financial Report

Transcription

City of Pismo Beach, California
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2015
Cover photograph reflects the City of Pismo Beach stairs
Photo credit – Vivian Krug
Fiscal Year Ended June 30, 2015
Mayor
Mayor Pro Tem
Council Member
Council Member
Council Member
Shelly Higginbotham
Edward Waage
Sheila Blake
Erik Howell
Mary Ann Reiss
City Manager
Prepared by
James R. Lewis
Administrative Services Department
www.pismobeach.org
City of Pismo Beach
Table of Contents
Page
Table of Contents
i-v
Introductory Section
Letter of Transmittal
vii-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
4-14
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position
15-16
Statement of Activities
17-18
Fund Financial Statements:
Balance Sheet – Governmental Funds
19
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
20-21
22
Reconciliation of the Statement of Revenues, Expenditures and Changes in
Fund Balance of Governmental Funds to the Government-wide Statement
of Activities
23-24
Statement of Fund Net Position – Proprietary Funds
25-26
Statement of Revenues, Expenses, and Changes in Fund Net Position –
Proprietary Funds
i
27
City of Pismo Beach
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Page
Statement of Cash Flows – Proprietary Funds
28-29
Statement of Fiduciary Net Position – Employee Benefit Trust Fund
30
Statement of Changes in Fiduciary Net Position – Employee Benefit Trust Fund
31
Notes to the Basic Financial Statements
32-65
Required Supplementary Information Section
Budgetary Comparison Schedule – General Fund
67-68
Budgetary Comparison Schedule – Housing In Lieu Special Revenue Fund
69
Schedule of Funding Progress for Other Post-Employment Benefits (OPEB)
70
Schedule of Employer Contributions for Other Post-Employment Benefits (OPEB)
71
Schedule of the City's Proportionate Share of the Net Pension Liability
And Related Ratios as of the Measurement Date
72
Schedule of Plan Contributions
73
Notes to Required Supplementary Information Section
74-75
Supplementary Information Section
Nonmajor Governmental Funds – Overview
77-78
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds
79-82
Combining Statement of Revenues, Expenditures and Changes in
Fund Balance – Nonmajor Governmental Funds
83-86
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
87
Local Transportation Streets Fund
88
PEG Fund
89
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City of Pismo Beach
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Page
Noncapital Grants Fund
90
Local Business Improvement Fund (LBID)
91
Chapman House Estate
92
Public Facilities Fund
93
Park Development Fund
94
Capital Outlay Fund
95
Circulation Improvement Fund
96
Impact Fees Fund
97
Developer Impact Fees Fund
98
Underground Utility Fund
99
City of Pismo Beach Public Financing Authority Fund
100
Indio/El Portal Assessment District Fund
101
Visalia Assessment District Fund
102
Reassessment Districts Fund
103
Nonmajor Proprietary Funds – Overview
104
Combining Statement of Fund Net Position – Nonmajor Proprietary Funds
105
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position –
Nonmajor Proprietary Funds
106
Combining Statement of Cash Flows – Nonmajor Proprietary Funds
107
Other Schedules:
Comparative Schedule of Capital Assets By Source
108
Schedule of Changes in Capital Assets By Source
109
Schedule of Capital Assets By Function and Activity
110
Schedule of Changes in Capital Assets By Function and Activity
111
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City of Pismo Beach
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Page
Statistical Section
Statistical Section – Overview
113
Financial Trends Information:
Schedule of Net Position by Component – Last Ten Fiscal Years
Schedule of Changes in Net Position – Last Ten Fiscal Years
114
115-118
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
119
120-121
Revenue Capacity Information:
Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years
122
Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years
123
Principal Property Tax Payers – Top Ten Payers – Last Ten Fiscal Years
124-125
Property Tax Levies and Collections – Last Ten Fiscal Years
126
Sales Tax Revenue Base Data – Last Ten Fiscal Years
127
Principal Sales Tax Generators by Industry – Revenue Base Concentration
Data – Last Ten Calendar Years
128-129
Principal Sales Tax Payers – Top 25 – Last Ten Fiscal Years
130-132
Transient Occupancy Tax Revenue Base Data – Last Ten Fiscal Years
133
Principal Transient Occupancy Tax Payers and Other Data – Last Ten Fiscal Years
134
Principal Transient Occupancy Payers – Top Ten in Alphabetical Order – Last Ten Fiscal Years
135
Water and Sewer Rates for Single Family Residents – Last Ten Fiscal Years
136
Principal Water and Wastewater Payers – Revenue Base Concentration
Data – Last Ten Fiscal Years
137
Principal Water Sales Purchasers – Top Ten – Last Ten Fiscal Years
138
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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
139
Ratios of General Bonded Debt – Last Ten Fiscal Years
140
Direct and Overlapping Governmental Activities Debt – Current Year
141
Legal Debt Margin Information – Last Ten Fiscal Years
142
Pledged Revenue Coverage – Last Ten Fiscal Years
143-144
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Fiscal Years
Principal Employers – Top Ten – Last Eight Fiscal Years
145
146-147
Full-Time Equivalent City Government Employees by Function/Program – Last Ten Fiscal Years
148
Operating Information:
Operating Indicators by Function/Program – Last Ten Fiscal Years
149
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years
150
Bond Issue Continuing Disclosure Information
Series 2007A Lease Revenue Refunding Bonds
151
Series 2012 Wastewater Refunding Revenue Bonds
152-156
Water Enterprise Fund
157-159
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
v
161-162
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Introductory Section
Administrative Services Department
760 Mattie Road
Pismo Beach CA 93449
Phone: 805-773-4655 Fax: 805-773-7065
December 7, 2015
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, 2015. 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, 2015. It is the fourteenth 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, 2015 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, 2015 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
organizational 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 7,711
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, 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 2015 during the development of the two-year budget and
confirmed by the Council on June 2, 2015. These policies establish goals for the allocation of public
resources in the manner best suited to 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. In addition, on April 7, 2015, the City Council passed Ordinance No. O-2015-003
adopting fiscal policies for General Fund Committed Fund Balances.
•
Second, the Council undertakes a strategic planning process to establish goals and priorities for the
organization after taking into account public input. Specifically, the Council engaged the community
at a public hearing and by soliciting ideas and input through a variety of means. Additionally, the
employees were able to collaborate by department to share their thoughts on what investments
should be made. Based on this input, the City Council adopted six major City goals, five other
important objectives, and 10 as resources permit objectives.
•
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
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.
•
Fourth, 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.
•
Finally, Implementation of Governmental Accounting Standards Board (GASB) 68 is included in this
year’s financial statements and provides additional transparency on long-term pension obligations in
the annual financial report.
The general fund’s budget to actual comparison, a major governmental type fund under the new 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 39.4% of the
City’s General Fund revenues. Sales and use tax revenues make up 20.4%, 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, then started
climbing in the last three years.
Fortunately, due to the City’s Conference and Visitors Bureau and Lodging Business Improvement
District promotion efforts, the focus and investment of our hoteliers and business community, and a
variety of external factors including a dry warm winter, tourism in our City has flourished during FY 2015;
revenues were much higher than expected. Visitors have come to Pismo Beach, many for the first time,
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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 level expenditures have allowed the City to accumulate a healthy General Fund unrestricted fund
balance.
To illustrate this revenue growth in FY 2015 compared to the previous year, the City’s tax revenues have
increased from the previous year by 7.5% for all funds and 7.9% for the General Fund. About 80.5% of
the City’s General Fund revenues come from the local hotel tax, sales tax revenues, and local property
taxes. General Fund property tax related revenues increased by 5.1% from FY 2014. Sales and use tax
revenues, including the half-cent transaction sales and use tax, came in at $4,498 thousand in FY 2015
compared to $4,104 thousand in FY 2014, or 9.6% higher in FY 2015. If the half-cent transaction sales
and use tax is removed from the equation, sales taxes actually came in at around $2,787 thousand in FY
2015 compared to $2,761 thousand in FY 2014, or 0.9% higher. The hotel tax revenues came in at
$8,682 thousand in FY 2015, or 8.7% greater than FY 2014 by $694 thousand.
Another significant growth in revenues across several funds was in permit revenues and impact fees due
to development around the City. Permit revenues across all funds increased from $2,010 thousand in
FY 2014 to $2,681 thousand in FY 2015, a $672 thousand, or 33.4% increase. Impact fee revenues
across all funds increased from $798 thousand in FY 2014 to $2,863 thousand in FY 2015, a $2,065
thousand or 258.6% increase. These revenues are considered one-time revenues as the area is
reaching build out.
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
4.4% for June 2015, which is lower than the 5.4% as reported in June 2014. According to the California
Department of Finance, the population factor for Pismo Beach remained relatively stable from January 1,
2014 to January 1, 2015 from 7,726 to 7,688.
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 as defined in the Adopted Budget and Purchasing
Policy. In addition, the City Council approved or adopted several other fiscal policies including:
• City’s Investment Policy, most recently in January 2015
• Adopted an ordinance to amend the City’s Municipal Code to add details on committed fund balances,
including the General Fund Reserve, the General Fund City Facility Reserve, and the Risk
Management Reserve policies in April 2015
• Capital Assets Policies and Procedures, effective on July 1, 2014 as part of the City’s Purchasing
Policy.
The following policies are particularly relevant to the City’s financial performance in FY 2015.
General Fund Reserve: Establish and maintain a General Fund reserve of 22% of budgeted expenditures
in the General Fund. The City maintained a General Fund reserve of 22% of budgeted operating
expenditures and did not use any of these reserves.
Risk Management Reserve: Establish and maintain a Risk Management Reserve to be used for
unanticipated risk management costs, funded with $50 thousand per year, up to $250,000. The City
maintained a reserve of $100 thousand in FY 2015 and did not use any of these reserves.
Fiscal Management: Annually consider reduction of long-term debt as a use of revenues. In FY 2014,
the City Council established a $1 million Debt/Pension Reduction reserve to consider reduction of longterm debt or pension liability. The Debt/Pension Reduction Reserve was made up of one-time savings
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from prior year expenditures and additional unanticipated revenues. A large portion of the one-time
savings came from salary and benefit savings due to vacancies. Based on a reduced payroll, the
contributions to the CalPERS pension costs were less in previous years and have not reduced the
pension liability balance as much as anticipated. Contributing this Reserve to reducing the CalPERS
pension liability uses prior year personnel savings and pays off the personnel unfunded liability costs.
On March 17, 2015, the City Council approved a $1 million payment to CalPERS to reduce the City’s
unfunded pension liability costs. This payment reduces the City’s unfunded pension costs by an
estimated $670 thousand and reduces the annual ongoing contribution of approximately $200 thousand
per year to CalPERS starting in FY 2018-19.
Infrastructure: Contribute from the General Fund annually for the improvement of infrastructure. The City
contributed to various infrastructure improvements in FY 2015, including: City Hall, Pismo Beach
Veterans Hall, and Shell Beach Veterans Hall improvements; street paving; the Bello Bridge project;
design of a new Public Works corporation yard building; storm drain construction on Price Canyon Road;
and design of the drainage master plan project.
Economic Development: Achieve organized, sustainable community development for the citizens of
Pismo Beach by providing a diverse economic base while preserving our scenic beauty, small town
charm, and historical assets. The City contributed various funds in FY 2015 for the implementation of the
Downtown Strategic Plan; the Price House Historical Park Plan and infrastructure; the Shell Beach
Streetscape Phase 1 project; and a study of the pier plaza seawall.
Projects Accomplished in FY 2014-15
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 2014-15. The following list highlights some of the most significant accomplishments
in FY 2014-15.
Infrastructure Maintenance and Beautification
 Radio Tower Emergency Back Up Generators (3 locations)
 Pier Inspection
 City Hall, Police Dept. and Fire Dept. Carpet Project
 Halls Improvement Project
 Chapman Estate Americans with Disability Act (ADA) Improvements
 Heights Drainage Study
 Infrastructure Assessment – ADA
 Recycled Water Facility Plan
 Old City Hall Clean Up
Housing, Health, and Safety
 Risk Management focus on the Americans with Disabilities Act (ADA) including work with other City
Departments to update programs, policies, notices, designation of ADA Coordinator, update to the
ADA Grievance policy, and update to the City’s Transition Plan
 Completed a pier structural inspection
Preservation of essential services and fiscal health
 Increased the General Fund Reserves from 21% to 22%
 Contributed $50 thousand to the Risk Management Reserve for a total balance of $100 thousand to
fund unanticipated general liability and workers’ compensation costs
 Adopted formal General Fund Reserve policies for General Fund committed balances including the
General Fund Reserve, the General Fund City Facility Reserve, and the Risk Management Reserve
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 Contributed $1 million to reduce the City’s annual CalPERS pension costs and reduce the City’s
unfunded pension liability
 Updated water and wastewater fees
 Updated service fees and cost allocation model
Economic Development
 Began implementation of Downtown Strategic Plan, incorporating downtown visioning and
revitalization efforts
 Obtained approval of the 2013 Uniform Building Code, initiated and completed training of inspectors
in the administration and application of these codes
Community Awareness and Communication
 Updated the City’s Citizen Request tracker and implemented a City of Pismo Beach mobile app,
Pismo Pulse
 Developed a Social Media Policy, added a City of Pismo Beach Facebook page and Twitter handle
 Conducted 2014 General Municipal Election in addition to certifying a referendum and initiative
petitions
 Created a new “Guidelines, Application and Fee Schedule” for City wide Special Events
 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 rebate program to promote conservation efforts
 Developed educational information for the half-cent sales tax program
FY 2016 Major Initiatives
As we look to the future, we are fiscally healthy and have the largest General Fund financial reserve we
have ever had, our City employee culture is positive, collaborative and employee relations are excellent,
we enjoy beneficial working relationships with the private sector and our community partners, the
community’s economy is growing healthily, and outside investment is coming in. We enjoy the trust of
the citizenry as evidenced by the half-cent sales tax being renewed by over 71% of voters, the highest
percentage of any sales tax measure countywide that was considered on the last ballot. Finally, the local,
state, and federal economy have recovered with interest rates at historic lows, residential and commercial
valuations are high, and consumer and investor confidence have improved. THE TIME IS NOW to
capitalize on all of these factors and make very strategic investments in our community that will further
enhance our quality of life and make us more sustainable in the future. While the time is now to make
major investments, the City continues to set aside some of the savings from prior years and a portion of
new revenues into reserves. The Time is Now to make major investments in areas that will impact our
community for many years to come. Specifically, these investments are outlined in more detail below.
The Time Is Now to Protect Our Clean Water Supply While Making it More Sustainable
The FY 2016 adopted budget makes significant strides towards protecting our clean water while
discovering ways to make it more sustainable. Pismo Beach is being proactive to ensure clean water is
available now and for the future, including:
•
•
•
•
Updating the City’s Water Master Plan
Updating the Urban Water Management Plan
Investing in strategic planning efforts with neighboring communities included in the Northern Cities
Management Area
Seeking funding for and beginning the planning and design of a reclaimed water system
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The Time is Now to Further Enhance Our Neighborhoods and Protect Quality of Life
The FY 2016 adopted budget includes strategic investments into our future, including:
•
•
•
•
•
•
Beginning implementation of the Shell Beach streetscape phase 1 to provide a more walkable
community, a more attractive community and a more vibrant business environment
Creating additional commercial and visitor serving parking opportunities in Shell Beach
Developing standards for Shell Beach residential and commercial development that will protect the
feel and character of the area
Revising the General Plan Circulation Element to ensure efficient access throughout the community
via a variety of transportation types
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
Investing in new equipment and amenities for City parks
The Time is Now to Invest in Economic Development
The FY 2016 adopted budget includes efforts to promote our City to our residents and visitors, including:
•
•
•
•
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
Implementing Pier area improvements that are sensitive to parking needs
Working with new hotel developments to ensure they incorporate well into downtown and leverage
their investment to attract additional retailers and restaurants
Working with the Land Conservancy to ensure a successful Pismo Preserve opening that creates an
accessible entry for residents and visitors while being complimentary to the neighborhood
The Time is Now to Preserve and Enhance City Resources
Finally, FY 2016 adopted budget also invests in and protects City resources, including:
•
•
•
•
•
•
•
Improving opportunities for employee education and training that result in more efficient, resourceful,
and entrepreneurial operations
Continuing to enhance the environment and culture at City facilities to improve employee morale,
development, and creativity
Repairing the City’s landmark pier and looking at ways to provide additional options to enhance the
space
Increasing efficiency and mobility in the Police and Community Development Departments
Implementing technology to support continuous operations for emergency operations and online
payment systems and implementing the City’s IT Strategic Plan for security, agenda management,
and record retention
Continuing replacement of mission critical public safety vehicles, including the replacement of the
1997 Fire Engine at Station 63, to ensure the City’s fleet is in good working order and maintenance
costs remain low
Pursuing continued options to conserve water and reduce electricity use at City facilities
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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, 2014. 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 oneyear 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
Sheila Blake
Erik Howell
Mary Ann Reiss
Executive Management Team
City Manager
City Clerk
Community Development Director
Management Services Director
Fire Battalion Chief
Police Chief
Public Works Director/City Engineer
Conference & Visitors Bureau
James R. Lewis
Erica Inderlied
Nadia Feeser
Jon Biggs
Debra Garcia
Paul Lee
Jake Miller
Benjamin Fine
Gordon Jackson
Year End Audit / Financial Statement Team
Finance Manager
Accountant
Accounting Technician
Accounting Technician
Accounting Clerk
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
Conference &
Visitors Bureau
Management
Services
Administrative
Services
Human
Resources
Finance/
Accounting
City Clerk
Utility
Billing
Records
Management
Public
Information
Information
Technology
Parks, Rec &
Beautification
Commission
Parking Advisory
Committee
City
Attorney
City Manager, HR,
Council Support
Public Works
Department
Community
Development
Engineering
Maintenance/
Operations
Emergency
Response
Operations
Building
Fire
Prevention
Support
Recreation
Park
Maintenance
Parking
Water
Operations
Wastewater
Operations
xvi
Police
Planning
Street/Building
Maintenance
Fleet
Maintenance
Fire
Lifeguards
Junior
Lifegaurds
Weed
Abatement
Financial Section
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The Honorable Mayor and Members of the City Council
Pismo Beach, California
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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, 2015, 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.
Change in Accounting Principle
As discussed in Note 13 to the financial statements, in 2015 the City adopted new accounting guidance,
GASB Statement No. 68, Accounting and Financial Reporting for Pensions – An Amendment of GASB
Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to
the Measurement Date – An Amendment of GASB Statement No. 68. Our opinion is not modified with
respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis on pages 4 through 14, the budgetary information on pages 67 through 69, the
Schedule of Funding Progress for Other Post-Employment Benefits on page 70, the Schedule of Employer
Contributions for Other Post-Employment Benefits on page 71, the Schedule of City’s Proportionate Share of
the Net Pension Liability and Related Rations on page 72 and the Schedule of Plan Contributions on page 73
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 79 through 107, the other schedules on pages 108 through 111 and the
statistical section are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
2
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, 2015.
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 assets decreased by about $6.80 million over the course of this year’s operations
after conducting all City operations and programs. The decrease was primarily the result of GASB 68,
the liability for Pension funds that was included for the first time this fiscal year. The assets of the City
exceeded its liabilities by about $87.91 million at the end of the 2015 fiscal year. Of that amount, $21.76
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 $4.87
million compared to the 2014 fiscal year. The increase in revenues was primarily in charges for services
of $2.19 million, Transient Occupancy Taxes at $694,000, $394,000 in Sales Tax revenues, $199,000
in Property Tax revenues, and $670,000 in other revenues.
• Transient Occupancy Tax Revenues increased by $694,000 in 2015 to $8.68 million.
• The City's total expense of all programs in the 2015 fiscal year increased by about $1.75 million
compared to the 2014 fiscal year.
• The General Fund reported a fund balance of $15.64 million at the end of the 2015 fiscal year; a 7.82
percent increase over the end of the 2014 fiscal year.
• The City also ended the 2015 fiscal year with $13.98 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 2015 fiscal year with about $4.54 million
available for special purposes.
• The City contributed $1.0 million of General Fund pension reserves to reduce the City’s CalPERS
ongoing pension costs and the unfunded liability for the side fund for the Miscellaneous Group
• Implementation of GASB 68 which will now provide additional transparency on long-term pension
obligations in the annual financial report and increase liabilities by $13.21 million.
4
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.
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.
5
Figure A-1
Major Features of City of Pismo Beach's Government-Wide and Fund Financial Statements
Fund Statements
Government-Wide
Statements
Governmental Funds
Proprietary Funds
Scope
Entire City government
The activities of the City that
are not proprietary or fiduciary,
such as police, fire, streets,
general government, and
community services
Activities the City operates
similar to private businesses:
the water, wastewater, parking,
pier and transit systems
Required financial
statements
Statement of net
position
Statement of activities
Balance sheet
Statement of net position
Statement of revenues,
expenditures, and changes in
fund balance
Statement of revenues
expenses, and changes in net
position
Statement of cash flows
Accounting basis and Accrual accounting and Modified accrual accounting
Accrual accounting and
measurement focus
economic resources
and current financial resources economic resources focus
focus
focus
Type of asset/liability
information
All assets and liabilities,
both financial and
capital, and short-term
and long-term
Type of inflow/outflow All revenues and
information
expenses during year,
regardless of when
cash is received or paid
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 shortterm and long-term
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
6
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.
7
• 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 decreased about $6.80 million between fiscal years 2014
and 2015. The decrease was primarily the result of GASB 68, the liability for Pension funds that was
included for the first time this fiscal year. (See Table A-1)
Table A-1
City of Pismo Beach's Net Position
(in millions of dollars)
Governmental
Activities
2015
Current and other assets
Capital assets and other
noncurrent assets
Total assets
Deferred Outflows
Long-term debt outstanding
Other liabilities
Total liabilities
Deferred Inflows
Investment in capital assets
Restricted
Unrestricted
Total net position
Business-type
Activities
2014
2015
2014
Total
Percentage
Change
Total
2015
2014
2014-2015
$28.05
$27.14
$15.84
$12.75
$43.89
$39.89
10.03%
44.01
72.06
43.85
70.99
32.08
47.92
31.64
44.39
76.09
119.98
75.49
115.38
0.79%
3.99%
0.67
0.26
3.03
12.92
1.30
14.22
12.26
1.31
13.57
28.15
4.69
32.84
16.12
4.81
20.93
74.63%
-2.49%
56.90%
2.26
-
100.00%
59.38
6.77
21.76
$87.91
59.16
5.34
30.21
$94.71
0.37%
26.78%
-27.97%
-7.18%
2.36
15.23
3.39
18.62
3.86
3.50
7.36
2.00
39.25
5.27
9.28
$53.80
0.26
40.20
4.86
18.57
$63.63
20.13
1.50
12.48
$34.11
18.96
0.48
11.64
$31.08
0.26 1065.38%
Net position of the City's governmental and business-type activities decreased 7.18 percent to $87.91
million. About 68 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 32
percent is essentially represented by cash, investments, and receivables. About 86 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.
8
Changes in Net Position
Revenues: The City's 2015 total revenues of about $37.57 million were about $4.87 million higher than
revenues in 2014, a 14.89 percent increase. (See Table A-2.) About 55 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 2015 was about $29.44 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
Business-type
Activities
2015
2015
2014
2014
Total
Percentage
Change
Total
2015
2014
2014-2015
$14.93
$12.74
17.19%
Revenues
Program revenues
$5.45
$4.40
Operating grants and contributions
1.01
0.65
1.01
0.65
55.38%
Capital grants and contributions
0.23
0.30
0.23
0.30
-23.33%
8.68
9.24
0.81
7.99
9.16
0.14
2.67
1.72
8.68
11.91
0.81
7.99
10.88
0.14
8.64%
9.47%
478.57%
25.42
22.64
12.15
10.06
37.57
32.70
14.89%
General government
Public safety
Streets
Public works
7.65
5.65
4.19
1.75
5.86
6.97
2.67
1.87
7.65
5.65
4.19
1.75
5.86
6.97
2.67
1.87
30.55%
-18.94%
56.93%
-6.42%
Community services
Water
Wastewater
Other
Total expenses
1.86
1.98
0.15
21.25
Excess (deficiency) before transfers
Transfers
Charges for services
$9.48
$8.34
General revenues
Transient occupancy taxes
Property, sales and other taxes
Other
Total revenues
Expenses
0.15
4.76
2.85
0.58
4.44
3.33
0.42
1.86
4.76
2.85
0.73
1.98
4.44
3.33
0.57
-6.06%
7.21%
-14.41%
28.07%
19.50
8.19
8.19
29.44
27.69
6.32%
4.17
(0.70)
3.14
0.09
3.96
0.70
1.87
(0.09)
8.13
-
5.01
-
62.28%
0.00%
3.47
3.23
4.66
1.78
8.13
5.01
62.28%
Net position, beginning of year
Prior year restatement
63.63
(13.29)
60.40
31.08
(1.64)
29.30
94.71
(14.93)
89.70
5.59%
100.00%
Net position, beginning of year,
as restated
50.34
60.40
29.44
29.30
79.78
89.70
-11.06%
$53.81
$63.63
$34.10
$31.08
$87.91
$94.71
-7.18%
Increase in net position
Net position, end of year
9
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 (governmental and business type activities):
Figure A-2
City’s Major Revenue Sources and Uses
Other
Revenues,
2.17%
Sources
Other Taxes, Grants, 3.32%
8.03%
Enterprise
Funds,
25.23%
Charges for
Services,
14.49%
Transient
Occupancy
Tax, 23.10%
Sales and Use
Tax, 11.97% Property
Related
Taxes,
11.69%
Community
Services,
All Other, 6.33%
6.44%
Uses
Enterprise
Funds,
27.79%
Streets,
14.25%
Police and
Fire, 19.19%
General
Government,
25.99%
Governmental Activities
Revenues from all governmental activities in the 2015 fiscal year increased by about $2.78 million
compared to the 2014 fiscal year. The primary increase was from charges for services at $1.05 million.
Transient occupancy taxes increased by $694,000 from the previous year. Property, sales, and other
taxes also increased by $80,000 from 2014.
The City's primary source of revenue comes from some kind of tax. About 30 percent of all City revenues
in Governmental Activities come from taxes such as property, sales, transient occupancy and other taxes.
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 2014 by 8.64 percent or $694,000. Sales tax revenues, including the Half-Cent Transactions
10
Sales and Use Tax revenues, came in 9.59 percent higher than 2014. Sales tax revenues excluding the
Half-Cent Sales Tax revenues, came in $25,919 higher than 2014. Half-Cent Sales Tax revenues came
in 27.4 percent higher by $368,000 compared to 2014.
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 27 percent of the
City's total 2015 governmental operating expenses. Another 20 percent of the City's 2015 governmental
activities operating expenses were incurred to provide street improvements throughout Pismo Beach. A
variety of cultural and recreation services including Planning making up 9 percent of operating expenses,
and the remaining 44 percent was spent on general administration and public works services.
When all operations were concluded, the governmental activities function generated a $9.82 million
decrease in net position for 2015 compared to a $3.23 million increase in 2014. The decrease was
primarily the result of GASB 68, the liability for Pension funds that was included for the first time this fiscal
year.
Table A-3 represents 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
Total Cost of
Services
2015
2014
General Government
Percentage
Change
2014-2015
$7.65
$5.86
30.55%
Public Safety
5.65
6.97
-18.94%
Community Services
1.86
1.98
-6.06%
Streets
4.19
2.67
56.93%
Public Works
All Other
1.75
0.15
1.87
0.15
-6.42%
0.00%
$21.25 $19.50
8.97%
Total
The cost of all programs this year was $21.25 million, compared to $19.50 million in fiscal 2014.
While users and contributors funded about $6.69 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 $14.6 million. Major sources of program revenues
were:
• Those who directly benefited from or used the programs ($5.4 million), or
• Other governments and organizations that subsidized certain programs with grants and contributions
(about $1.2 million).
The City paid for the $14.6 million “public benefit” portion out of the $18 million in general revenues such
as property taxes, transient occupancy taxes, sales taxes, and with other tax revenues and investment
earnings.
Overall, 2015 total cost of services is showing an increase of 9.01 percent compared to 2014. Expenses
decreased primarily in the Public Safety, Community Services, and Public Works categories. Expenses
increased in General Government and Streets categories.
11
Business-Type Activities
The City's business-type activities (primarily water and wastewater) were responsible for about $1.25
million increase in net position for 2015, compared to 2014. Revenues in total increased in 2015 by $2.1
million. Revenues for basic water services charges decreased by 4.19 percent or $147,000 in 2015,
primarily as a result of a decrease in consumption. Revenues for basic sewer services charges increased
by 5.46 percent or $204,000 in 2015. Parking Kiosk revenues increased by 6.0 percent or $27,000 in
2015.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As the City completed the year, its governmental funds reported a combined fund balance of $21.81
million, about $2.12 million higher than the last fiscal year. The City's General Fund operations generated
about $4.24 million more in revenues than was spent on governmental activities. From this excess, the
City transferred a total of $3.36 million out of the General Fund and into other funds. About $2.41 million
was transferred out to capital projects, $441,700 of those transfers went to the debt service funds for the
revenue bonds, another $355,800 was transferred to the vehicle replacement internal service fund and
information technology internal service fund, and another $147,400 was transferred out to the Pier fund,
and $4,600 was transferred to the Public Financing Authority (PFA) fund. At year end, the City's General
Fund had a fund balance of about $15.64 million, an increase of $1.14 million from the prior year of
$14.50 million. Of the $15.64 million, about $4.03 million was designated for unanticipated emergencies.
The increase in fund balance was the result of higher revenues in transient occupancy revenues of
$694,000, Licenses and Permits of $239,000, Sales Tax revenues of $394,000, and Property Tax
revenues of $199,000.
In addition, the City's non-major governmental funds ended the 2015 fiscal year with a combined fund
balance of $4.54 million. Of this $4.54 million, $198,400 can be used for debt service, $1.75 million in
Special Revenue Funds, and the remaining $2.59 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 Lodging Business Improvement District Fund, the PEG Fund (Public Education
Government Access), the Noncapital Grant Fund, and the Chapman Estate Fund. The Capital Project
Fund types consist 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 expenditures were $4.91 million less than final budget
amounts. Budget amendments that occurred in revenues during the year include an increase of $1.55
million in General Fund revenues of various categories. The more significant budget changes for
expenses were for carryovers for capital projects of $1.6 million.
General Fund revenues that came in higher than original estimates include transient occupancy tax by
$624,000, sales tax by $405,000, property tax by $222,400, and licenses and permits by $751,300. 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 fines and forfeitures and
transfers-in. The primary General Fund expenditures that exceeded budget estimates were in park
maintenance and non-departmental retiree medical. 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 retiree medical account
came in over budget as a result of more people retiring from the City of Pismo Beach than originally
estimated when preparing the budget.
12
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of 2015, the City had invested $74.68 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 $800,000
or a 1.06 percent decrease from the previous year.
Table A-4
Pismo Beach's Capital Assets
Governmental
Activities
Business-type
Activities
2015
2015
Total
Percentage
Change
Total
(net of depreciation, in
millions of dollars)
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
2014
$12.03
1.68
5.53
$12.03
0.65
5.53
2.53
4.29
9.69
2.42
4.43
9.67
2014
$0.38
1.93
0.33
1.04
2.68
$0.37
0.80
0.33
1.04
2.22
11.03
32.11
1.92
11.03
32.11
1.92
2015
2014
$12.40
1.45
5.86
1.04
4.64
4.43
9.67
11.03
32.11
1.92
45.80
(54.87)
0.08%
148.97%
0.00%
0.00%
12.28%
-3.16%
0.21%
0.00%
0.00%
0.00%
0.48%
6.63%
$75.48
-1.06%
46.02
(39.17)
45.80
(36.69)
(19.34)
(18.18)
$12.41
3.61
5.86
1.04
5.21
4.29
9.69
11.03
32.11
1.92
46.02
(58.51)
$42.60
$43.84
$32.08
$31.64
$74.68
2014-2015
This year’s major capital asset changes included:
•
Completed and capitalized the Telemetry System Upgrade Project totaling $297,900
•
Disposed of $437,800 in old Motor Vehicles and Equipment in the Motor Vehicle Fund
Additional information on capital assets of the City can be found starting on page 42 of the notes to the
Long - Term Debt
At the end of fiscal 2015, the City had $5.16 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 2015, the City had $3.35 million in revenue bonds issued in 2007. The 2007 revenue
bonds are being retired from General Fund revenues.
13
The State Revolving Loans had outstanding balances of $6.68 million, which included $6.03 million for
the Wastewater Treatment Loan, $132,300 for the Park/Cypress Interceptor Loan, and $514,400 for the
Pismo Oaks Lift Station Loan. The outstanding debt for the State Revolving Loans was reduced by
$535,640 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 44 of the notes to the financial
statements.
Under previous arrangements, the City was self-insured for the first $300,000 for each worker’s
compensation claim and $50,000 for each general liability claim, the statement of net position also shows
a liability of about $49,800 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 2016 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.
•
Maintain reserves for Building Depreciation Fund from the General Fund.
•
Effective on July 5, 2015, the City Fees and the cost allocation across funds were updated based on
a comprehensive fee study and Council approval.
•
In 2016, all Impact Fees will be adjusted according to various indices for the designated month and
area as indicated by Council Ordinance or Resolution.
•
In 2016, the City will continue to fund the CalPERS Retiree Benefit Trust and is estimated to
contribute an increasing amount as the City will now begin to cover the cost of the implied subsidy
beyond the $234,000 annual required contribution.
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.
14
City of Pismo Beach
Statement of Net Position
June 30, 2015
Governmental
Activities
Business-Type
Activities
$ 25,945,045
1,412,613
268,168
386,646
6,545
37,096
28,056,113
$
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
12,617,830
5,875
1,439,465
15,837,295
38,562,875
1,412,613
2,042,293
386,646
12,420
1,476,561
43,893,408
150,931
1,247,521
8,000
13,707,443
28,893,784
44,007,679
2,310,401
29,767,836
32,078,237
150,931
1,247,521
8,000
16,017,844
58,661,620
76,085,916
72,063,792
47,915,532
119,979,324
2,359,508
2,359,508
247,941
418,316
666,257
247,941
2,777,824
3,025,765
1,774,125
$
Deferred Outflows of Resources
Unamortized loss on refunding
Deferred pensions
Total deferred outflows of resources
The accompanying notes are an integral part of these financial statements.
15
City of Pismo Beach
Statement of Net Position, Continued
June 30, 2015
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
Net pension liability
Total noncurrent liabilities
Total liabilities
934,360
798,987
26,000
9,389
761,572
12,244
540,313
310,000
3,392,865
255,056
78,453
$
21,223
140,585
57,985
740,309
1,293,611
41,820
1,189,416
877,440
26,000
30,612
902,157
70,229
540,313
1,050,309
4,686,476
381,187
23,781
3,040,000
11,783,661
15,228,629
11,456,193
1,423,752
12,921,765
423,007
23,781
14,496,193
13,207,413
28,150,394
18,621,494
14,215,376
32,836,870
1,997,671
259,416
2,257,087
39,251,227
20,129,677
59,380,904
Deferred Inflows of Resources
Deferred pensions
Net Position
Net investment in capital assets
Restricted for:
Debt service
Capital projects
Affordable housing
Community development
Public safety
Streets
Unrestricted
198,426
1,852,084
283,483
597,094
95,675
1,158,058
10,368,088
Total net position
$ 53,804,135
16
198,426
3,353,150
283,483
597,094
95,675
1,158,058
22,844,342
1,501,066
12,476,254
$
34,106,997
$
87,911,132
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
$ 7,653,880
$
1,951,778
$
196,185
$
3,556,827
2,094,768
4,194,972
1,863,037
1,752,177
4,700
140,806
21,261,167
114,191
137,922
182,728
747,979
1,598,614
711,956
479,921
215,216
231,893
5,445,168
1,014,648
231,893
4,757,476
2,846,821
8,615
206,484
364,653
8,184,049
3,817,994
5,065,797
18,016
14,925
566,370
9,483,102
General revenues and transfers:
Property taxes
Sales taxes
Special water taxes
Other taxes
Franchise fees
Unrestricted investment earnings
Other revenue
Transfers
Total general revenues and transfers
Change in net position
Net position, beginning of year, as restated
17
123,326
-
-
Net Revenues (Expenses) and
Governmental
Activities
Business-type
Activities
$
$
(5,505,917)
(3,319,310)
(1,956,846)
(3,300,430)
(899,842)
(153,563)
707,256
(140,806)
(14,569,458)
-
Total
$
-
(939,482)
2,218,976
9,401
(191,559)
201,717
1,299,053
4,392,370
4,497,958
(5,505,917)
(3,319,310)
(1,956,846)
(3,300,430)
(899,842)
(153,563)
707,256
(140,806)
(14,569,458)
(939,482)
2,218,976
9,401
(191,559)
201,717
1,299,053
8,682,119
346,596
544,215
205,281
64,428
(696,140)
18,036,827
696,140
3,368,980
4,392,370
4,497,958
2,672,840
8,682,119
346,596
544,215
205,281
64,428
21,405,807
3,467,369
4,668,033
8,135,402
63,625,949
(13,289,183)
50,336,766
31,080,149
(1,641,185)
29,438,964
94,706,098
(14,930,368)
79,775,730
2,672,840
$ 53,804,135
$ 34,106,997
$ 87,911,132
18
City of Pismo Beach
Balance Sheet – Governmental Funds
June 30, 2015
General
Housing in
Lieu
Capital
Projects
Other
Nonmajor
Governmental
Funds
Total
Governmental
Funds
Assets
Taxes receivable
Accounts receivable
Prepayments
Note receivable
Total assets
$15,805,255
1,309,666
265,032
10,051
4,180
37,096
$ 1,909,890
$
264,670
$
4,710,525
102,947
1,686
376,595
160,695
2,125
1,086,826
$ 17,431,280
$ 3,157,411
$
641,265
$
4,817,283
$
388,615
$
174,805
839
97,175
$ 22,690,340
1,412,613
266,718
386,646
167,000
37,096
1,086,826
$ 26,047,239
Liabilities, Deferred Inflows of Resources and Fund Balance
Liabilities:
Accounts payable
Accrued liabilities
Deposits
Unearned revenue
Total liabilities
$
336,421
787,893
664,397
540,313
1,788,711
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:
General fund reserve
Capital project funding
Risk management reserve
Unassigned
Total fund balance
Total liabilities, deferred inflows of
resources and fund balance
37,096
540,313
388,615
272,819
$
899,841
788,732
761,572
540,313
2,990,458
1,246,789
1,246,789
1,086,826
1,123,922
1,248,179
1,158,058
341,649
283,483
255,445
603,905
95,675
198,426
4,033,000
4,125,692
100,000
7,346,781
15,642,569
1,370,309
$ 17,431,280
$ 3,157,411
$
252,650
816
642,311
4,033,816
5,020,653
100,000
7,346,781
252,650
4,544,464
21,809,992
4,817,283
$ 26,047,239
641,265
19
1,248,179
1,158,058
341,649
283,483
255,445
603,905
95,675
198,426
$
City of Pismo Beach
Reconciliation of the Balance Sheet of Governmental Funds
to the Government-wide Statement of Net Position
June 30, 2015
Total fund balance - governmental funds
$ 21,809,992
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
$
77,326,579
(36,529,202)
40,797,377
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.
150,931
2,359,508
Deferred outflows of resources reported in the Statement of Net Position
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.
1,246,789
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.
8,000
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)
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
$
(3,350,000)
(383,468)
(49,781)
(3,783,249)
20
City of Pismo Beach
Reconciliation of the Balance Sheet of Governmental Funds
to the Government-wide Statement of Net Position, Continued
June 30, 2015
Page 2
Net pension liability is not a current financial resource and, therefore, is not reported in
the governmental funds. In the statement of net position, net pension liability is reported
as a noncurrent liability.
Deferred inflows of resources reported in the Statement of Net Position
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
$ (11,783,661)
(1,997,671)
5,008,363
$ 53,804,135
21
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)
$ 4,392,370
4,497,958
8,682,119
890,811
1,593,998
67,616
361,434
379,550
223,769
Housing in
Lieu
$
Capital
Projects
$
Other
Governmental
Funds
Total
Governmental
Funds
$
$
297,182
528,938
10,452
951,659
868,060
210,628
2,569,737
2,596
711,956
683,299
21,772,924
194
714,746
6,758,606
6,693,012
581,436
1,558,091
1,833,858
89
297,271
1,036,489
1,588,605
19,799
237,046
7,795,095
6,693,012
2,189,840
1,795,137
1,833,858
4,700
300,000
141,681
7,171
1,742,186
300,000
141,681
1,370,365
22,123,688
827,551
3,230,990
4,700
103,463
17,528,466
4,700
4,244,458
710,046
250,160
(3,359,501)
(3,109,341)
1,259,731
2,848,336
(2,551,065)
2,710,345
-
2,710,345
4,392,370
4,497,958
8,682,119
890,811
1,593,998
67,616
1,187,554
392,598
1,887,384
868,060
894,210
25,354,678
469,179
(1,184,472)
(715,293)
3,429,684
(4,543,973)
(1,114,289)
Net change in fund balance
1,135,117
710,046
159,280
112,258
2,116,701
Fund balance, beginning of year
14,507,452
660,263
93,370
4,432,206
19,693,291
$ 15,642,569
$ 1,370,309
$ 252,650
4,544,464
$ 21,809,992
Fund balance, end of year
22
$
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
$ 2,116,701
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.
32,874
Changes in deposits with insurance pools do not provide current financial resources and
are not reported in the governmental funds.
134,712
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
$
1,370,365
(2,647,107)
(1,276,742)
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:
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:
Decreases in actuarially determined claim liabilities for uninsured claims do not provide
current financial resources and are not reported in the governmental funds.
23
(36,000)
875
300,000
(7,557)
149,428
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
Pension expense recorded as an expenditure in governmental funds but not recorded as
a deferred outflow of resources on the statement of activities is:
$ 1,867,360
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:
185,718
Total change in net position - governmental activities
$
24
3,467,369
City of Pismo Beach
Statement of Fund Net Position – Proprietary Funds
June 30, 2015
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
5,996,581
712,188
2,405
1,437,325
8,148,499
$
4,589,354
1,034,493
2,872
$
5,626,719
129,591
532,127
7,767,442
214,759
1,400,499
8,057,731
29,938,701
2,031,895
27,444
598
2,140
2,062,077
33,425
Totals
$ 12,617,830
1,774,125
5,875
1,439,465
15,837,295
Governmental
Activities Internal Service
Funds
$
3,254,705
1,450
240
3,256,395
156,640
16,643,531
(6,864,383)
31,553,959
(10,255,337)
2,334,016
(1,333,549)
377,775
1,932,626
7,767,442
37,996,432
158,038
2,142,553
156,640
50,531,506
(18,453,269)
9,779,148
9,779,148
21,298,622
21,298,622
1,000,467
1,000,467
32,078,237
32,078,237
1,803,850
1,803,850
17,927,647
26,925,341
3,062,544
47,915,532
5,060,245
158,038
2,142,553
170,982
4,275,774
4,446,756
(2,642,906)
Deferred outflows of resources
Unamortized loss on refunding
Deferred pensions
Total deferred outflow of resources
247,941
247,941
164,175
225,557
28,584
418,316
164,175
473,498
28,584
666,257
25
-
City of Pismo Beach
Statement of Fund Net Position – Proprietary Funds, Continued
June 30, 2015
Page 2
Enterprise Funds
Water
Liabilities
Accounts payable
Accrued liabilities
Deposits
Accrued interest payable
Bonds and loans
$
160,767
28,486
5,000
140,585
Deferred inflows of resources
Deferred pensions
Net Position
Restricted for capital improvements
Unrestricted
$
$
43,275
38,785
8,000
$
70,419
558,774
574,379
26,215
6,131,532
5,324,661
767,691
12,250,099
97,287
97,287
41,820
6,131,532
5,324,661
1,423,752
12,921,765
5,319
909,217
13,138,453
167,706
14,215,376
51,882
101,812
139,878
17,726
259,416
9,779,148
1,000,467
7,301,645
9,350,062
1,501,066
3,269,380
1,905,229
20,129,677
1,501,066
12,476,254
17,080,793
$ 14,120,508
2,905,696
$ 34,106,997
57,985
740,309
888,354
$
26
51,014
11,182
8,223
Totals
$
Governmental
Funds
255,056
78,453
21,223
140,585
57,985
740,309
1,293,611
15,605
Total liabilities
Total net position
Wastewater
334,838
Loans
Bonds, net
Total noncurrent liabilities
Other
Enterprise
Funds
$
34,519
10,255
1,789
46,563
5,319
1,803,850
3,204,513
$
5,008,363
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
Prior year restatements
Net position, beginning of year,
as restated
$ 3,362,918
358,446
53,164
3,774,528
Wastewater
Other
Enterprise
Funds
$
$
479,027
124,867
948,210
60,554
2,698,592
446,226
4,757,476
(982,948)
2,672,840
43,466
2,716,306
1,733,358
4,380,459
658,716
5,039,175
566,370
32,928
599,298
602,989
244,394
1,022,539
25,302
152,277
$ 3,362,918
5,305,275
744,808
9,413,001
$
882,269
63,440
945,709
650,989
2,546,213
60,933
579,752
1,234,293
369,261
2,337,291
85,856
2,698,592
1,158,148
7,883,441
2,492,962
19,546
1,529,560
(269,555)
366,542
218,406
1,567
720,283
275,008
1,215,264
26,622
(300,608)
13
2,672,840
70,101
(300,608)
37,124
(273,986)
13
2,442,333
37,124
19,559
3,971,893
(232,431)
2,218,976
273,610
(71,799)
201,811
Totals
Governmental
Activities Internal
Service Funds
399,608
(35,785)
363,823
147,353
(16,847)
130,506
820,571
(124,431)
696,140
418,149
418,149
1,935,169
2,582,799
150,065
4,668,033
15,789,733
(644,109)
12,422,641
(884,932)
2,867,775
(112,144)
31,080,149
(1,641,185)
4,822,645
15,145,624
11,537,709
2,755,631
29,438,964
4,822,645
$ 17,080,793
$ 14,120,508
$ 2,905,696
$ 34,106,997
27
185,718
$
5,008,363
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 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
$ 3,782,182
(3,499,676)
(314,560)
$ 4,593,077
(1,075,204)
(389,856)
(627,535)
(804,873)
(659,589)
Other
Enterprise
Funds
$
598,808
(328,317)
(178,495)
2,323,144
Totals
$ 8,974,067
(4,903,197)
(704,416)
(1,610,903)
Governmental
Fund
$
(708,958)
946,001
(218,249)
91,996
1,755,551
18,794
2,672,840
273,610
(71,799)
399,608
(35,785)
147,353
(16,847)
2,672,840
820,571
(124,431)
418,149
2,874,651
363,823
130,506
3,368,980
418,149
(745,898)
(266,291)
(1,616,908)
(305,829)
(2,629,097)
(305,829)
(501,896)
(745,898)
(266,291)
(1,115,012)
(501,896)
(2,127,201)
-
42,301
42,301
25,356
25,356
132
132
67,789
67,789
37,062
37,062
1,755,467
585,122
222,634
2,563,223
168,176
4,241,114
4,004,232
1,809,261
10,054,607
3,086,529
$ 5,996,581
$ 4,589,354
$ 2,031,895
$ 12,617,830
28
$
3,254,705
City of Pismo Beach
Statement of Cash Flows – Proprietary Funds, Continued
Page 2
Enterprise Funds
Reconciliation of operating income (loss) to
net cash provided by (used in) operating activities:
Adjustments to reconcile operating income (loss) to
Change in assets, deferred outflows of resources,
liabilities and deferred inflows of resources:
Accounts receivable
Prepayments
Accounts payable
Accrued liabilities
Deposits
$
$
Water
Wastewater
(982,948)
$ 2,492,962
Other
Enterprise
Funds
$
19,546
$ 1,529,560
1,158,148
446,226
650,989
60,933
(39,428)
(42,986)
(87,949)
1,222
(808)
47,082
(445,220)
125
(377,340)
1,471
1,035
(878)
(490)
972
11,314
227
(506)
(659,589)
$ 2,323,144
$
Noncash investing, capital or financing activities:
None.
29
Totals
91,996
Governmental
Fund
$
275,008
(485,138)
(41,889)
(453,975)
2,920
(279)
46,204
$ 1,755,551
(269,555)
292
11,232
1,660
157
$
18,794
City of Pismo Beach
Statement of Fiduciary Net Position – Employee Benefit Trust Fund
June 30, 2015
Retired
Employees
Health Care
Plan
Assets
Investments at fair value:
California Employer's Retiree Benefit Trust Program
pooled investments
Total assets
$ 1,592,414
$ 1,592,414
Net Position
Held in trust for other post employment benefits
30
$ 1,592,414
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 depreciation in fair value of investments
Total additions
Deductions:
Administration
Benefits
Total deductions
$
234,000
(10,293)
223,707
1,568
134,389
135,957
Net change
87,750
Net position held in trust for other post employment benefits:
Beginning of year
End of year
1,504,664
$ 1,592,414
31
City of Pismo Beach
Notes to the Financial Statements
June 30, 2015
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
32
City of Pismo Beach
June 30, 2015
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.
Capital Projects Fund is used to accumulate resources for use in financing major capital
improvement projects.
33
City of Pismo Beach
June 30, 2015
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 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 Fund Balance
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.
34
City of Pismo Beach
June 30, 2015
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.
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
35
City of Pismo Beach
June 30, 2015
Page 5
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.
The City recognizes a net pension liability, which represents the City’s proportionate share of the excess of
the total pension liability over the fiduciary net position of the pension reflected in the actuarial reports
provided by the California Public Employees’ Retirement System (CalPERS) plans (Plans). The net pension
liability is measured as of the City’s prior fiscal year-end. Changes in the net pension liability are recorded, in
the period incurred, as pension expense or as deferred inflows of resources or deferred outflows of
resources depending on the nature of the change. The changes in the net pension liability that are recorded
as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial
36
City of Pismo Beach
June 30, 2015
Page 6
assumptions or other inputs and differences between expected or actual experience) are amortized over the
weighted average remaining service life of all participants in the respective pension plan and are recorded as
a component of pension expense beginning with the period in which they are incurred.
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to
pensions, and pension expense, information about the fiduciary net position of the City’s CalPERS Plans and
additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as
they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value. Projected earnings on pension investments are recognized as a component of
pension expense.
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.
37
City of Pismo Beach
June 30, 2015
Page 7
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
15 through 16.
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 17 through 18.
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, 2015, have been evaluated through December 7, 2015, which is the date that
the financial statements were available to be issued. Management did not identify any subsequent events
that required disclosure.
38
City of Pismo Beach
June 30, 2015
Page 8
Note 2: Cash and Investments
At June 30, 2015, cash and investments consisted of the following:
Cash
Investments
$ 3,328,546
35,234,329
Total cash and investments
$ 38,562,875
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, 2015 were insured or collateralized with securities held by the pledging financial institution's trust
department or agent in the City's name.
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, 2015, investments consisted of the following:
State Local Agency Investment Fund (LAIF)
Negotiable certificates of deposit
US Government Agency Obligations
$ 19,439,769
8,344,560
7,450,000
Total investments
$ 35,234,329
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
39
City of Pismo Beach
June 30, 2015
Page 9
Note 2: Cash and Investments (Continued)
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, 2015, maturities were as follows for the City’s investments:
Amount
$ 19,439,769
1,368,000
1,425,000
2,394,000
2,017,000
8,590,560
Liquidity
0 to 30 days
FY 2015-16
FY 2016-17
FY 2017-18
FY 2018-19
FY 2019-20
Total investments
$ 35,234,329
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, 2015, credit risk ratings were as follows for the City’s investments:
Rating
Unrated
Unrated
Aaa
State Local Agency Investment Fund (LAIF)
Negotiable certificates of deposit
US Government Agency Obligations
Total investments
Fair
Value
$ 19,439,769
8,344,560
7,450,000
$ 35,234,329
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 US Government
Agency Obligations represent 21% of the City’s investments at June 30, 2015. These U.S governmentsponsored enterprise agency securities are not explicitly guaranteed by the U.S. government.
40
City of Pismo Beach
June 30, 2015
Page 10
Note 3: Accounts Receivable
At June 30, 2015, accounts receivable consisted of the following:
Housing
in Lieu
General
Taxes receivable
Accounts receivable
$ 1,309,666
265,032
10,051
$
Total accounts receivable
$ 1,584,749
$
$
Total accounts receivable
$
$
$
Internal
Service
102,947
1,686
$
104,633
$
Total
Governmental
Activities
$
1,412,613
268,168
386,646
$
2,067,427
1,450
376,595
-
$ 376,595
$
Wastewater
Other
Enterprise
Funds
712,188
$ 1,034,493
$
27,444
$
1,774,125
712,188
$ 1,034,493
$
27,444
$
1,774,125
Water
Accounts receivable
Capital
Projects
Other
Governmental
Funds
1,450
Total
Business-Type
Activities
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,
2015, the current principal balance and accrued interest on the note receivable was $1,246,789.
41
City of Pismo Beach
June 30, 2015
Page 11
Note 5: Capital Assets
Capital assets activity for the year ended June 30, 2015 was as follows:
Balance
June 30, 2014
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
652,197
Additions
$
Deductions
Balance
June 30, 2015
$
$
1,045,799
(16,376)
6,957,295
5,068,528
1,681,620
12,678,020
1,045,799
(16,376)
13,707,443
5,531,963
2,424,981
4,428,367
9,672,667
45,798,895
108,630
295,021
12,812
213,932
(437,752)
16,376
5,531,963
2,533,611
4,285,636
9,685,479
46,029,203
67,856,873
630,395
(421,376)
68,065,892
(2,539,282)
(1,272,447)
(2,805,650)
(3,312,837)
(26,757,528)
(109,085)
(264,562)
(273,027)
(417,222)
(1,858,220)
437,752
(2,648,367)
(1,537,009)
(2,640,925)
(3,730,059)
(28,615,748)
(36,687,744)
(2,922,116)
437,752
(39,172,108)
31,169,129
(2,291,721)
16,376
28,893,784
$ 43,847,149
$ (1,245,922)
42
$
-
$ 42,601,227
City of Pismo Beach
June 30, 2015
Page 12
Note 5: Capital Assets (Continued)
Balance
June 30, 2014
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
799,363
Additions
$
1,172,138
5,000
1,492,922
Deductions
Balance
June 30, 2015
$
$
1,497,922
333,726
1,044,264
11,023,021
2,223,636
32,110,081
1,922,411
(359,659)
377,775
1,932,626
(359,659)
2,310,401
333,726
1,044,264
11,023,021
2,675,224
32,110,081
1,922,411
454,306
(2,718)
48,657,139
454,306
(2,718)
(333,726)
(835,412)
(5,504,006)
(847,696)
(9,443,689)
(1,220,932)
(52,214)
(476,365)
(100,710)
(484,227)
(44,632)
2,718
(18,185,461)
(1,158,148)
2,718
(19,340,891)
-
29,767,836
30,471,678
$ 31,643,816
43
(703,842)
$
794,080
$
(359,659)
49,108,727
(333,726)
(887,626)
(5,980,371)
(945,688)
(9,927,916)
(1,265,564)
$ 32,078,237
City of Pismo Beach
June 30, 2015
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
$
46,323
162,588
411,900
2,026,297
275,008
$
2,922,116
$
446,226
650,989
16,301
44,632
$
1,158,148
Total interest expense for business-type activities was $300,608 for the year ended June 30, 2015 and the
total amount thereof that was capitalized was $37,426.
Note 6: Long-Term Debt
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, 2015, compensated absences of the internal service fund were $7,107.
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.
44
City of Pismo Beach
June 30, 2015
Page 14
Note 6: Long-Term Debt (Continued)
Long-term debt activity for the year ended June 30, 2015 was as follows:
Balance
June 30, 2014
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
Deductions
Balance
June 30, 2015
Due Within
One Year
$ (300,000)
(57,715)
(175,047)
$ 3,350,000
390,576
49,781
$
65,427
25,619
310,000
9,389
26,000
Additions
$ 3,650,000
382,864
199,209
$
$ 4,232,073
$
91,046
$ (532,762)
$ 3,790,357
$
345,389
$
63,322
5,345,000
384,920
7,212,481
$
10,561
$
$
63,043
5,155,000
364,661
6,676,841
$
21,223
195,000
$ 13,005,723
$
$ 12,259,545
$
10,561
(10,840)
(190,000)
(20,259)
(535,640)
$ (756,739)
545,309
761,532
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.
45
City of Pismo Beach
June 30, 2015
Page 15
At June 30, 2015, future minimum principal and interest payments on the 2007A bonds were as follows:
For the Year Ending June 30,
2016
2017
2018
2019
2020
2021-2025
$
Total
$
Principal
310,000
325,000
335,000
355,000
365,000
1,660,000
Interest
$ 136,431
120,931
108,906
96,344
82,854
187,987
3,350,000
$ 733,453
$
Total
446,431
445,931
443,906
451,344
447,854
1,847,987
$ 4,083,453
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, 2015, future minimum principal and imputed interest payments on this loan payable were as
follows:
2016
2017
2018
2019
2020
2021-2025
2026
$
Total
$
Principal
500,537
509,561
518,749
528,102
537,623
2,837,061
598,469
Interest
$ 108,723
99,698
90,511
81,158
71,636
209,237
10,790
6,030,102
$ 671,753
$
Total
609,260
609,259
609,260
609,260
609,259
3,046,298
609,259
$ 6,701,855
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.
46
City of Pismo Beach
June 30, 2015
Page 16
follows:
2016
2017
2018
2019
2020
2021-2025
$
Total
$
Principal
12,141
12,371
12,605
12,844
13,087
69,249
132,297
$
$
Interest
2,505
2,275
2,041
1,802
1,559
3,983
14,165
$
$
Total
14,646
14,646
14,646
14,646
14,646
73,232
146,462
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:
2016
2017
2018
2019
2020
2021-2025
2026-2029
$
Total
$
Principal
32,631
33,220
33,819
34,428
35,049
184,955
160,340
514,442
$
$
Interest
9,275
8,687
8,088
7,478
6,857
24,578
7,291
72,254
$
$
Total
41,906
41,907
41,907
41,906
41,906
209,533
167,631
586,696
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. For the year ended June 30, 2015, principal and imputed
interest paid and total system net revenues were $665,813 and $3,143,951, respectively.
47
City of Pismo Beach
June 30, 2015
Page 17
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.
At June 30, 2015, future minimum principal and imputed interest payments on the 2012 bonds were as
follows:
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031-2033
$
Total
$
Principal
195,000
205,000
215,000
220,000
235,000
1,340,000
1,625,000
1,120,000
Interest
$ 192,288
185,263
176,863
168,163
159,063
611,065
318,869
57,427
5,155,000
$ 1,869,001
$
Total
387,288
390,263
391,863
388,163
394,063
1,951,065
1,943,869
1,177,427
$ 7,024,001
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, 2015, the unamortized
premium was $364,661.
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. For the year ended
June 30, 2015, principal and interest paid and total customer net revenues were $388,063 and $3,143,951,
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).
48
City of Pismo Beach
June 30, 2015
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, 2015,
the City contributed $134,389 for current year premiums (100% of total premiums) and $234,000 to prefund
benefits and pay down a portion of the implied subsidy. 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
$
360,000
(3,000)
2,000
359,000
(323,000)
36,000
(44,000)
Net OPEB asset, end of year
$
(8,000)
49
City of Pismo Beach
June 30, 2015
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
6/30/2015
6/30/2014
6/30/2013
Annual
OPEB
Cost
$ 359,000
$ 213,000
$ 211,000
Actual
Contributions
$
323,000
$
234,000
$
234,000
% of Annual
OPEB Cost
Contributed
90.0%
109.9%
110.9%
Net OPEB
Obligation
(Asset)
$
(8,000)
$
(44,000)
$
(23,000)
Funding Status and Funding Progress
The funded status of the Plan as of June 30, 2015, 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
$
4,336,000
1,573,000
$ 2,763,000
36.28%
$ 5,967,000
46.30%
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.
50
City of Pismo Beach
June 30, 2015
Page 20
Note 7: Other Post-Employment Benefits (OPEB) (Continued)
In the June 30, 2015 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 7.5 to
7.8% initially, reduced to an ultimate rate of 5% after eight years. The UAAL is being amortized as a level
percentage of projected payroll over 24 years, the remaining amortization period as of June 30, 2015. The
amortization period is closed.
Note 8: Interfund Receivables, Payables and Transfers
There were no interfund receivables and payables at June 30, 2015. Interfund transfers for the year ended
June 30, 2015 were as follows:
Transfers In
Governmental Funds:
General Fund
Capital Projects Fund
Other Governmental Funds:
State Gas Tax Fund
Impact Fee Fund
Public Facilities
Park Development
Circulation Improvement
Indio / El Portal Assessment District
Enterprise Funds:
Water Fund
Wastewater Fund
Other Enterprise Funds:
Pier Fund
Parking Fund
Internal Service Funds
Total interfund transfers
$
250,160
2,710,345
Transfers Out
$
3,359,501
196,878
42,280
872,453
53,000
3,533
19,347
19,861
446,299
273,610
399,608
71,799
35,785
147,353
16,847
418,149
$
4,668,404
$
4,668,404
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
51
City of Pismo Beach
June 30, 2015
Page 21
Note 9: Public Employees Retirement System
General Information about the Pension Plans
Plan Descriptions
The City contributes to the California Public Employees Retirement System (CalPERS), a cost sharing
multiple-employer public employee defined benefit pension plan. All qualified permanent and probationary
employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all
other) Employee Pension Plans. CalPERS provides retirement and disability benefits, annual cost-of-living
adjustments, and death benefits to plan members and beneficiaries. CalPERS 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. CalPERS
issues publicly available financial reports that include the financial statements and required supplementary
information for the CalPERS. CalPERS issues publicly available reports that include a full description of the
pension plans regarding benefit provisions, assumptions and membership information that can be found on
the CalPERS website.
Benefits Provided
PERS provides service retirement and disability benefits, annual cost of living adjustments and death
benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of
credited service, equal to one year of full time employment. Members with five years of total service are
eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability
benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the
1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each
plan are applied as specified by the Public Employees' Retirement Law.
The City participates in the Safety and Miscellaneous CalPERS cost sharing multiple-employer plans. The
Safety plans consists of Fire Tier 1; Fire Tier 2; Police Tier 1, Police Tier 2, and Police PEPRA. The
Miscellaneous plans consist of Tier 1, Tier 2 and PEPRA. The Fire Tier 2 plan had contributions of $330 and
$2,103, for the years ending June 30, 2014 and 2015, respectively. As this plan is new, the City has not
incurred a net pension liability nor received an actuarial valuation for the measurement period ended
June 30, 2014. Therefore this plan is not required to be included in the additional pension disclosures below
or the required supplemental information.
While the City’s Safety and Miscellaneous plan are not closed to new entrants, the component option of
Safety Fire Tier 1, Safety Police Tier 1, and Miscellaneous Tier 1 are closed to new entrants. Classic
members, as defined by CalPERS, entering the City’s plans would enter the Tier 2 plans, which New
Members, as defined by CalPERS, would enter the PEPRA plans.
52
City of Pismo Beach
June 30, 2015
Page 22
Note 9: Public Employees Retirement System (Continued)
The Plan's provisions and benefits in effect at June 30, 2015, are summarized as follows:
Safety ‐ Fire
Tier 1
PEPRA
Prior to
On or after
January 1, 2013
January 1, 2013
Hire date
Benefit formula
2.0% @ 50
2.7% @ 57
Benefit vesting schedule
5 years service
5 years service
Benefit payments
monthly for life
monthly for life
Retirement age
50 ‐ 55
50 ‐ 55
Monthly benefits, as a % of eligible compensation
2%
2.0% to 2.7%
Required employee contribution rates
9%
9%
Required employer contribution rates
49.77%
11.50%
Final average compensation period
3‐Year Average
3‐Year Average
Hire date
Benefit formula
Benefit payments
Retirement age
Less employer share paid by employee
Tier 1
Prior to
January 1, 2013
3.0% @ 50
5 years service
monthly for life
50 ‐ 55
3.00%
12%
47.24%
‐3.00%
Single Highest Year
Safety ‐ Police
Tier 2
On or after
December 17, 2012
3.0% @ 55
5 years service
monthly for life
50 ‐ 55
3.00%
12%
21.37%
‐3.00%
3‐Year Average
PEPRA
On or after
January 1, 2013
2.7% @ 57
5 years service
monthly for life
50 ‐ 55
2.0% to 2.7%
12%
11.50%
‐0.50%
3‐Year Average
Hire date
Benefit formula
Benefit payments
Retirement age
less employer share paid by employee
Tier 1
Prior to
January 1, 2013
2.5% @ 55
5 years service
monthly for life
50 ‐ 55
2.0% to 2.7%
8%
19.40%
0.00%
Single Highest Year
Miscellaneous
Tier 2
On or after
December 17, 2012
2% @ 60
5 years service
monthly for life
50 ‐ 63
1.0% to 2.0%
8%
8.01%
‐1.00%
3‐Year Average
PEPRA
On or after
January 1, 2013
2% @ 62
5 years service
monthly for life
52 ‐ 67
1.0% to 2.5%
8%
6.25%
‐1.75%
3‐Year Average
53
City of Pismo Beach
June 30, 2015
Page 23
Contributions
Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution
rates for all public employers be determined on an annual basis by the actuary and shall be effective on the
July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually
on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount
necessary to finance the costs of benefits earned by employees during the year, with an additional amount to
finance any unfunded accrued liability. The Local Government is required to contribute the difference
between the actuarially determined rate and the contribution rate of employees.
For the year ended June 30, 2015, the contributions recognized as part of pension expense for each Plan
were as follows:
Safety
Fire
Police
Police
Police
Tier 1
Tier 1
Tier 2
PEPRA
Contributions - employer
$
16,157
$ 763,329
$
29,034
$ 21,925
Contributions - employee (paid by
employer)
-
Contributions - employer
Contributions - employee (paid by
employer)
$
Tier 1
702,922
Miscellaneous
Tier 2
$
20,205
-
-
$
PEPRA
10,592
-
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2015, the City reported net pension liabilities for its proportionate shares of the net pension
liability of each Plan as follows:
Safety Fire Tier 1
Safety Police Tier 1
Safety Police Tier 2
Safety Police PEPRA
Miscellaneous Tier 1
Miscellaneous Tier 2
Miscellaneous PEPRA
Total net pension liability
Proportionate
Share of Net
Pension Liability
$
830,933
6,137,396
2,625
138
6,235,581
45
695
$
13,207,413
54
City of Pismo Beach
June 30, 2015
Page 24
The City’s net position liability for each Plan is measured as the proportionate share of the net pension
liability. The net pension liability of each of the Plans is measured as of June 30, 2014, and the total pension
liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of
June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. The City’s proportion of
the net pension liability was based on a projection of the Local Government’s long-term share of
contributions to the pension plans relative to the projected contributions of all participating employers,
actuarially determined. The City’s proportionate share of the net pension liability for each Plan as of
June 30, 2013 and 2014 was as follows:
Safety
Fire
Police
Police
Police
Tier 1
Tier 1
Tier 2
PEPRA
Percentage share at 6/30/2013
0.02109%
0.15215%
0.00007%
0.00000%
0.02215%
0.16362%
0.00007%
0.00000%
Change - Increase/(Decrease)
0.00106%
0.01147%
0.00000%
0.00000%
Change - Increase/(Decrease)
Tier 1
0.23748%
0.25230%
0.01482%
Miscellaneous
Tier 2
0.00000%
0.00000%
0.00000%
PEPRA
0.00003%
0.00003%
0.00000%
For the year ended June 30, 2015, the City recognized pension expense of $156,598. At June 30, 2015, the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
All Plans
Pension contributions subsequent to measurement date
Net difference between actual contributions made by the
employer and the employer's proportionate share of the risk
pool's total contributions
Net differences between projected and actual earnings on
pension plan investments
Adjustment due to differences in proportions
Total
55
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
$ 2,400,289
$
-
351,023
41,557
26,512
2,135,909
79,621
$ 2,777,824
$ 2,257,087
City of Pismo Beach
June 30, 2015
Page 25
Pension contributions subsequent to the measurement dates of $2,400,289 are reported as deferred
outflows of resources and will be recognized as a reduction of the net pension liability in the year ended
June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension income as follows:
All Plans
Year Ended June 30,
2016
$
2017
2018
Total
$
Amount
(630,950)
(625,050)
(623,552)
(1,879,552)
Actuarial Assumptions
The total pension liabilities in the June 30, 2013 actuarial valuations were determined using the following
actuarial assumptions:
Valuation date
Measurement date
Actuarial cost method
Actuarial assumptions:
Discount rate
Inflation
Payroll growth
Projected salary increase
Investment rate of return
Mortality
All Plans
June 30, 2013
June 30, 2014
Entry-Age Normal Cost Method
7.50%
2.75%
Varies by Entry Age and Service
3.3% - 14.2% (1)
7.50% (2)
(3)
(1) Depending on age, service and type of employment.
(2) Net of pension plan investment and administrative expenses, including inflation.
(3) Derived using CalPERS' Membership Data for all Funds
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2013
valuation were based on the results of a January 2014 actuarial experience study for the period 1997 to
2011. Further details of the Experience Study can be found on the CalPERS website.
56
City of Pismo Beach
June 30, 2015
Page 26
Discount Rate
The discount rate used to measure the total pension liability was 7.50% for each Plan. To determine
whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS
stress tested plans that would mostly likely result in a discount rate that would be different from the
actuarially assumed discount rate. Based on the testing, none of the tested plans ran out of assets.
Therefore, the current 7.50% discount rate is adequate and the use of the municipal bond rate calculation is
not necessary. The long term expected discount rate of 7.50% will be applied to all plans in the Public
Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be
obtained from the CalPERS website.
According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without
reduction for pension plan administrative expense. The 7.50% investment return assumption used in this
accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis
points. An investment return excluding administrative expenses would have been 7.65%. Using this lower
discount rate has resulted in a slightly higher Total Pension Liability and Net Pension Liability. CalPERS
checked the materiality threshold for the difference in calculation and did not find it to be a material
difference.
CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management
(ALM) review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate
will require Board action and proper stakeholder outreach. For these reasons, CalPERS expects to continue
using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least 201718 fiscal year. CalPERS will continue to check the materiality of the difference in calculation until such time
as we have changed our methodology.
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which best-estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows. Using historical returns of
all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years)
and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for
both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate
of return was set by calculating the single equivalent expected return that arrived at the same present value
of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected
rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the
nearest one quarter of one percent.
57
City of Pismo Beach
June 30, 2015
Page 27
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
These rates of return are net of administrative expenses.
New
Strategic
Allocation
47.0%
19.0%
6.0%
12.0%
11.0%
3.0%
2.0%
100%
Asset Class
Global Equity
Global Fixed Income
Inflation Sensitive
Private Equity
Real Estate
Infrastructure and Forestland
Liquidity
Total
All Plans
Real
Return Yrs
1 - 10 (a)
5.25%
0.99%
0.45%
6.83%
4.50%
4.50%
-0.55%
Real
Return
Yrs 11+ (b)
5.71%
2.43%
3.36%
6.95%
5.13%
5.09%
-1.05%
(a) An expected inflation of 2.5% used for this period.
(b) An expected inflation of 3.0% used for this period.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the City’s proportionate share of the net pension liability for each Plan, calculated
using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension
liability would be if it were calculated using a discount rate that is one percentage point lower or one
percentage point higher than the current rate:
Safety
Fire
Tier 1
Police
Tier 1
Police
Tier 2
Police
PEPRA
1% Decrease
Net Pension Liability
$
6.50%
1,285,515
6.50%
$ 9,218,530
$
6.50%
4,517
$
6.50%
238
Current Discount Rate
$
7.50%
830,933
7.50%
$ 6,137,396
$
7.50%
2,625
$
7.50%
138
1% Increase
$
8.50%
456,377
8.50%
$ 3,598,675
$
8.50%
1,066
$
8.50%
56
58
City of Pismo Beach
June 30, 2015
Page 28
Miscellaneous
Tier 2
Tier 1
PEPRA
1% Decrease
$
6.50%
9,975,445
$
6.50%
79
$
6.50%
1,238
Current Discount Rate
$
7.50%
6,235,581
$
7.50%
45
$
7.50%
695
1% Increase
$
8.50%
3,131,849
$
8.50%
16
$
8.50%
244
Pension Plan Fiduciary Net Position
Detailed information about each pension plan's fiduciary net position is available in the separately issued
CalPERS financial reports.
Payable to the Pension Plan
At June 30, 2015, the City reported a payable of $54,478 for the outstanding amount of contributions to the
pension plan for the year ended June 30, 2015.
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 a portion of its Local Transportation Fund
allocations to the joint powers agencies.
59
City of Pismo Beach
June 30, 2015
Page 29
Note 10: Jointly Governed Organizations and Operating Agreements (Continued)
San Luis Obispo Council of Governments
The San Luis Obispo Council of Governments (SLOCOG) was formed in 1968 through a joint powers
agreement among the incorporated cities and the County of San Luis Obispo. It acts as the regional
transportation planning agency for the county and is the metropolitan planning organization and the
congestion management agency for the region. The City’s obligation to this entity is limited to the
assignment of a portion of its Local Transportation Fund allocations to the agency.
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 $137,745 and $1,576,686 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.
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,
60
City of Pismo Beach
June 30, 2015
Page 30
Note 10: Jointly Governed Organizations and Operating Agreements (Continued)
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 $984,160 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
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.
61
City of Pismo Beach
June 30, 2015
Page 31
Note 11: Risk Management (Continued)
The estimated liability at June 30, 2015 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, 2015
450
(25,619)
(200,712)
150,931
$ (49,781)
Changes in the balances of claims liabilities during the past two fiscal years were as follows:
Deposits at June 30, 2013
Claim payments and related expenditures reimbursement
Increase in estimated claims liability for year ended June 30, 2014
Interest earnings
Claim payments and related expenditures reimbursement
Increase in estimated claims liability for year ended June 30, 2015
Interest earnings
Deposits
$ (161,488)
(38,247)
479
47
(199,209)
(25,619)
13,109
450
161,488
$ (49,781)
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.
62
City of Pismo Beach
June 30, 2015
Page 32
Note 12: Commitments and Contingencies (Continued)
Construction and Other Significant Commitments
Construction and other significant commitments as of June 30, 2015, including encumbrances outstanding at
year-end, were as follows:
General fund
Special revenue funds
Capital project funds
Enterprise funds
Total
$
393,618
231,239
3,048,142
495,062
$
4,168,061
Long term construction contracts are billed and paid on a percentage of completion basis by construction
phase.
Note 13: New Accounting Pronouncements
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.
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.
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.
Management implemented GASB Statements No. 69 and 70 for the City’s June 30, 2014 financial
statements. Implementation of these statements did not have a material impact on the City’s financial
statements.
63
City of Pismo Beach
June 30, 2015
Page 33
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. This Statement establishes
standards for measuring and recognizing liabilities, deferred outflows of resources, deferred inflows of
resources, and expense/expenditures for pensions. Note disclosure and required supplementary information
requirements about pensions also are addressed. The provisions of Statement No. 68 are effective for fiscal
years beginning after June 15, 2014.
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 nonemployer 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 implemented GASB Statements No. 68 and 71 for the City’s June 30, 2015 financial
statements. Implementation of these statements resulted in a restatement of beginning net position as of
July 1, 2014. See Note 9 and Note 14 to Financial Statements for further discussion.
In February 2015, GASB issued Statement No. 72, Fair Value Measurement and Application, which
addresses accounting and financial reporting issues related to fair value measurements. This Statement
also provides guidance for applying fair value to certain investments and disclosures related to all fair value
measurements. The provisions of Statement No. 72 are effective for fiscal years beginning after June 15,
2015. Management has not yet determined the impact of this Statement on its financial statements.
In June 2015, GASB issued Statement No. 73, Accounting and Financial Reporting for Pensions and Related
Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of
GASB Statements 67 and 68. The requirements of this Statement extend the approach to accounting and
financial reporting established in Statement 68 to all pensions, with modifications as necessary to reflect that
for accounting and financial reporting purposes, any assets accumulated for pensions that are provided
through pension plans that are not administered through trusts that meet the criteria specified in Statement
68 should not be considered pension plan assets. The provisions of Statement No. 73 are effective for fiscal
years beginning after June 15, 2015. Management has not yet determined the impact of this Statement on
its financial statements.
In June 2015, GASB issued Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other
Than Pension Plans, which establishes financial reporting standards for state and local governmental OPEB
plans—defined benefit OPEB plans and defined contribution OPEB plans—that are administered through
64
City of Pismo Beach
June 30, 2015
Page 34
Note 13: New Accounting Pronouncements (Continued)
trusts or equivalent arrangements. The provisions of Statement No. 74 are effective for fiscal years
beginning after June 15, 2016. Management has not yet determined the impact of this Statement on its
Additionally, in June 2015, GASB issued Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefit Plans Other Than Pensions. Statement No. 75 establishes new accounting and
financial reporting requirements for governments whose employees are provided with OPEB, as well as for
certain nonemployer governments that have a legal obligation to provide financial support for OPEB provided
to the employees of other entities. The provisions of Statement No. 75 are effective for fiscal years
beginning after June 15, 2017. Management has not yet determined the impact of this Statement on its
In June 2015, GASB issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles
for State and Local Governments. The objective of this Statement is to identify—in the context of the current
governmental financial reporting environment—the hierarchy of generally accepted accounting principles.
The “GAAP hierarchy” consists of the sources of accounting principles used to prepare financial statements
of state and local governmental entities in conformity with GAAP and the framework for selecting those
principles. This Statement reduces the GAAP hierarchy to two categories of authoritative GAAP and
addresses the use of authoritative and nonauthoritative literature in the event that the accounting treatment
for a transaction or other event is not specified within a source of authoritative GAAP. The provisions of
Statement No. 76 are effective for fiscal years beginning after June 15, 2015. Management has not yet
determined the impact of this Statement on its financial statements.
In August 2015, GASB issued Statement No. 77, Tax Abatement Disclosures. Statement No. 77 requires
disclosure of tax abatement information about (1) a reporting government’s own tax abatement agreements
and (2) those that are entered into by other governments and that reduce the reporting government’s tax
revenues. The provisions of Statement No. 77 are effective for fiscal years beginning after December 15,
2015. Management has not yet determined the impact of this Statement on its financial statements.
Note 14: Restatement of Beginning Net Position
The City implemented GASB Statement No. 68, Financial Reporting for Pensions—an amendment of
Statement No. 27, and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to
the Measurement Date – an amendment of GASB Statement No. 68, for the year ended June 30, 2015. The
City has chosen to present prior year data in the MD&A, but not restate the data for the prior year because
all of the information available to restate prior year amounts was not readily available. An adjustment of
$14,930,368 to beginning net position has been made to reflect the cumulative impact of implementing these
standards.
65
Required Supplementary
Information Section
City of Pismo Beach
Budgetary Comparison Schedule – General Fund
Budgetary Basis
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
14,507,452
$ 14,507,452
$ 14,507,452
3,970,000
3,666,000
7,490,000
775,000
579,650
75,000
297,889
153,124
166,775
627,231
237,489
4,170,000
4,093,000
8,058,000
796,766
842,650
75,000
297,889
224,919
138,575
611,149
278,449
4,392,370
4,497,958
8,682,119
890,811
1,593,998
67,616
379,550
361,434
223,769
683,299
250,160
Amounts available for
charges to appropriations
32,545,610
34,093,849
36,530,536
Charges to appropriations:
General Government:
City Council
Administration
City Clerk
Human Resources
Legal
Conference and Visitors Bureau
Finance
Nondepartmental - other
Nondepartmental - capital outlay
Nondepartmental - retiree medical
Government buildings
308,040
645,806
213,893
186,800
528,720
727,139
1,502,477
77,599
355,444
881,996
266,027
501,184
303,436
242,145
281,637
598,708
780,763
1,956,714
114,188
1,355,444
1,233,286
256,262
418,407
273,702
241,951
281,637
597,082
742,469
1,716,934
81,589
1,368,389
801,847
See notes to required supplementary information.
67
Variance with
Final Budget
Positive
(Negative)
$
222,370
404,958
624,119
94,045
751,348
(7,384)
81,661
136,515
85,194
72,150
(28,289)
2,436,687
9,765
82,777
29,734
194
1,626
38,294
239,780
32,599
(12,945)
431,439
City of Pismo Beach
Budgetary Comparison Schedule – General Fund, Continued
Budgetary Basis
Page 2
Actual
Amounts
Budgeted Amounts
Final
Original
Public Safety:
Police
Fire
Weed Abatement
Lifeguards
$
5,070,980
2,037,426
12,200
144,982
$
5,510,005
2,058,154
12,200
144,991
$
4,681,450
1,978,036
7,929
107,397
Variance with
Final Budget
Positive
(Negative)
$
828,555
80,118
4,271
37,594
Public Works
Park maintenance
832,331
862,478
942,032
(79,554)
Community Services:
Building
Planning
Recreation City Supported
Recreation Fee Supported
Pismo Beach Veterans Hall
Shell Beach Veterans Hall
Margo Dodd Park
Facilities Maintenance
Engineering
605,108
838,236
278,120
66,596
38,941
18,946
1,893
117,744
566,378
590,542
861,266
396,742
60,630
45,456
18,613
1,894
126,781
611,064
580,101
680,685
387,482
44,387
44,813
14,660
2,156
122,561
573,072
10,441
180,581
9,260
16,243
643
3,953
(262)
4,220
37,992
Streets:
Maintenance and construction
545,794
767,566
581,436
186,130
1,030,212
6,099,041
3,359,501
2,739,540
17,633,801
25,800,955
20,887,967
4,912,988
8,292,894
$ 15,642,569
Transfers out
Total charges to appropriations
Fund balance - end of year
$
14,911,809
68
$
$
7,349,675
City of Pismo Beach
Schedule of Revenues, Expenditures and
Changes in Fund Balance – Budget and Actual
Housing In Lieu Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Miscellaneous
Total revenues
$
20,000
20,000
20,000
711,956
2,596
194
714,746
500
500
4,700
4,700
4,700
4,700
19,500
15,300
710,046
694,746
19,500
15,300
710,046
694,746
660,263
660,263
660,263
$ 679,763
$ 675,563
$ 1,370,309
Expenditures:
Housing
Total expenditures
Excess(deficiency) of revenues over
(under) expenditures
69
$
20,000
Actual
$
Variance
with Final Budget
Positive (Negative)
$
691,956
2,596
194
694,746
-
$
694,746
City of Pismo Beach
Schedule of Funding Progress for
Other Post-Employment Benefits (OPEB)
June 30, 2015
Actuarial
Valuation Date
6/30/2015
6/30/2013
6/30/2011
Actuarial
Value
of Assets
$ 1,573,000
$ 1,153,000
$ 837,000
Actuarial
Accrued
Liability (AAL)
$ 4,336,000
$ 2,670,000
$ 2,243,000
Unfunded
AAL (UAAL)
$ 2,763,000
$ 1,517,000
$ 1,406,000
70
Funded
Ratio
36.28%
43.18%
37.32%
Covered
Payroll
$ 5,967,000
$ 6,153,000
$ 6,529,000
UAAL as a %
of Covered
Payroll
46.30%
24.65%
21.53%
City of Pismo Beach
Schedule of Employer Contributions for
Other Post-Employment Benefits (OPEB)
June 30, 2015
Fiscal Year
6/30/2015
6/30/2014
6/30/2013
Annual
OPEB
Cost
$ 359,000
$ 213,000
$ 211,000
Actual
Contributions
$
323,000
$
234,000
$
234,000
71
% of Annual
OPEB Cost
Contributed
90.0%
109.9%
110.9%
Net OPEB
Obligation
(Asset)
$
(8,000)
$
(44,000)
$
(23,000)
City of Pismo Beach
Schedule of the City's Proportionate Share of the Net Pension Liability
And Related Ratios as of the Measurement Date
June 30, 2015 *
Safety
Police
Tier 1
2015
0.09863%
Fire
Tier 1
2015
0.01335%
Plan's proportion of the net pension liability
Police
Tier 2
2015
0.00004%
Plan's proportionate share of the net pension liability
$
830,933
$ 6,137,396
$
2,625
Plan's covered-employee payroll
$
65,474
$ 1,864,699
$
133,649
Plan's proportionate Share of the net pension liability
as a percentage of its covered-employee payroll
Plan's proportionate share of the fiduciary net positions
as a percentage of the Plan's total pension liability
Plan's proportionate share of aggregate employer
contributions
$
0.12%
75.52%
73.32%
81.42%
81.43%
72,556
$
477,472
$
Miscellaneous
Tier 2
2015
0.00000%
326
PEPRA
2015
0.00001%
$
45
$
695
Plan's covered-employee payroll
$ 4,017,495
$
142,389
$
141,003
Plan's proportionate share of aggregate employer
contributions
$
155.21%
0.03%
0.49%
77.88%
82.76%
83.02%
593,704
$
6
$
92
* - Fiscal year 2015 was the 1st year of implementation, therefore only one year is shown. Information is as of
and for the year ending June 30, 2014.
72
$ 117,266
1.96%
$ 6,235,581
Plan's proportionate share of the fiduciary net positions
as a percentage of the Plan's total pension liability
138
329.14%
Plan's proportionate share of the net pension liability
Plan's proportionate Share of the net pension liability
as a percentage of its covered-employee payroll
$
1269.10%
Tier 1
2015
0.10021%
Plan's proportion of the net pension liability
Police
PEPRA
2015
0.00000%
$
17
City of Pismo Beach
Schedule of Plan Contributions
June 30, 2015 *
Actuarially determined contribution
Contributions in relation to the actuarially
determined contributions
Contribution deficiency (excess)
$
$
Fire
Tier 1
2015
16,157
(16,157)
-
Covered-employee payroll
65,474
Contributions as a percentage of covered-employee payroll
24.68%
Actuarially determined contribution
Contributions in relation to the actuarially
determined contributions
Contribution deficiency (excess)
Covered-employee payroll
$
Tier 1
2015
706,751
$
(702,922)
3,829
4,017,495
Contributions as a percentage of covered-employee payroll
17.50%
Safety
Police
Police
Tier 1
Tier 2
2015
2015
$ 767,544
$
29,034
$
(763,329)
4,215
$
1,864,699
133,649
40.94%
Miscellaneous
Tier 2
2015
$ 20,205
$
(20,205)
142,389
14.19%
(29,034)
-
21.72%
PEPRA
2015
$
10,592
$
(10,592)
141,003
7.51%
* - Fiscal year 2015 was the 1st year of implementation, therefore only one year is shown. Information is as of
and for the year ending June 30, 2014.
73
Police
PEPRA
2015
$ 21,925
$
(21,925)
117,266
18.70%
City of Pismo Beach
Notes to Required Supplementary Information
June 30, 2015
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.
(14,507,452)
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
(250,160)
$
21,772,924
$
20,887,967
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
36,530,536
(3,359,501)
$
17,528,466
Note 2: Excess of Expenditures Over Appropriations
In the General Fund, expenditures exceeded appropriations as follows:
Variance with Final
Budget (Negative)
General Government:
Nondepartmental - retiree medical
Public Works:
Park Maintenance
Community Services:
Margo Dodd Park
Expenditures did not exceed appropriations in the Housing In Lieu Fund.
74
$
(12,945)
$
(79,554)
$
(262)
City of Pismo Beach
Notes to Required Supplementary Information
June 30, 2015
Page 2
Note 3: Schedule of Plan Contributions
Change in Benefit Terms. The figures above do not include any liability impact that may have
resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact.
Change in Assumptions. None.
75
Supplementary
Information Section
City of Pismo Beach
Nonmajor Governmental Funds - Overview
June 30, 2015
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.
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.
77
City of Pismo Beach
Nonmajor Governmental Funds - Overview, Continued
June 30, 2015
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.
78
City of Pismo Beach
Combining Balance Sheet – Nonmajor Governmental Funds
June 30, 2015
Local
Transportation
Streets
State Gas
Tax
PEG
Assets
Taxes receivable
Accounts receivable
Total assets
$
420,682
$
420,970
$
1,686
343
288
$
632,084
$
634,113
74,629
43
$
74,672
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued liabilities
Deposits
$
Total liabilities
Fund balance:
Restricted for:
Community business promotion
Park development
Public safety
Debt service
Committed for capital projects
Assigned for:
Capital projects
Future contingencies
$
-
-
420,970
634,113
-
74,672
Total fund balance
Total liabilities and fund balance
$
420,970
$
79
420,970
634,113
$
634,113
74,672
$
74,672
Noncapital
Grants
Local
Business
Improvement
$
$
95,619
56
$
95,675
$
298,646
102,947
Chapman
House
Estate
$
161
287,015
Public
Facilities
$
816
Park
Development
Circulation
Improvement
$ 1,255,079
$
167
422
$
401,754
$
287,182
$
$
145,470
839
$
20,205
$
816
59
$ 1,255,501
$
$
$
9,130
102,916
102,975
155
-
146,309
20,205
-
9,285
-
102,975
266,977
255,445
603,905
95,675
75
642,236
816
95,675
$
95,675
255,445
$
401,754
266,977
$
287,182
$
816
1,246,216
816
$ 1,255,501
102,975
$
102,975
Continued
80
City of Pismo Beach
Combining Balance Sheet – Nonmajor Governmental Funds, Continued
June 30, 2015
Page 2
Impact Fees
Developer
Impact Fees
Underground
Utility
$ 1,188,991
$
$
403
$
403
Assets
Taxes receivable
Accounts receivable
Total assets
378
155,339
88
$ 1,189,369
$
$
$
155,427
Liabilities and Fund Balances
Liabilities:
Accounts payable
Accrued liabilities
Deposits
97,020
-
97,020
-
1,189,369
58,407
403
1,189,369
58,407
403
Total liabilities
Fund balance:
Restricted for:
Community business promotion
Park development
Public safety
Debt service
Committed for capital projects
Assigned for:
Capital projects
Future contingencies
Total fund balance
Total liabilities and fund balance
$
$ 1,189,369
81
$
155,427
$
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
$
$
$
$
4,710,525
102,947
1,686
2,125
$
4,817,283
$
174,805
839
97,175
528
$
8
$
-
$
$
536
$
-
93,937
103,841
53
$
93,990
$
-
59
$
103,900
$
-
536
-
93,990
272,819
1,248,179
1,158,058
341,649
255,445
603,905
95,675
198,426
75
103,900
642,236
816
$
-
536
$
536
93,990
$
93,990
103,900
$
103,900
82
4,544,464
$
4,817,283
City of Pismo Beach
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance – Nonmajor Governmental Funds
Special Revenue
Local
Transportation
Streets
State Gas
Tax
Revenues:
Special assessments
Miscellaneous
Interest
Total revenues
$
231,893
$
$
2,653
1,064
194,532
1,037
232,930
Expenditures:
Current:
Community promotion
Debt service:
Principal
Interest and fiscal charges
Capital outlay
Total expenditures
190,815
PEG
159
159
15,181
24,395
Excess (deficiency) of revenues over
Other financing sources (uses):
Transfers in
Transfers out
Total other financing
sources (uses)
-
15,181
7,171
31,566
232,930
179,351
(31,407)
(196,878)
(196,878)
-
-
36,052
179,351
(31,407)
384,918
454,762
106,079
$
420,970
$
83
634,113
$
74,672
Special Revenue
Capital Projects
Noncapital
Grants
Local
Business
Improvement
Chapman
House Estate
$
$
$
106,230
Public
Facilities
$
Park
Development
Circulation
Improvement
$
$
1,200
509,831
868,060
184
106,414
195,832
520
197,552
1,894
869,954
15
15
3,280
202
3,482
1,988
511,819
1,036,489
69,590
-
1,036,489
106,414
(166,535)
142,061
69,590
-
142,061
-
127,962
15
369,758
3,482
3,533
19,347
(42,280)
(53,000)
(42,280)
$
-
-
(53,000)
3,533
19,347
64,134
(166,535)
127,962
(52,985)
373,291
22,829
31,541
421,980
139,015
53,801
872,925
80,146
95,675
$
255,445
$
266,977
$
816
$
1,246,216
$
102,975
Continued
84
City of Pismo Beach
Combining Statement of Revenues, Expenditures and
Changes in Fund Balance – Nonmajor Governmental Funds, Continued
Page 2
Capital Projects
Revenues:
Special assessments
Miscellaneous
Interest
Total revenues
Expenditures:
Current:
Community promotion
Debt service:
Principal
Interest and fiscal charges
Capital outlay
Total expenditures
Impact Fees
Developer
Impact Fees
Underground
Utility
$
$
$
440,628
2,636
443,264
318
318
-
1,000
-
-
442,264
318
-
1,000
Transfers in
Transfers out
sources (uses)
(872,453)
(872,453)
-
-
(430,189)
318
-
58,089
403
1,619,558
$ 1,189,369
$
85
58,407
$
403
City of Pismo
Beach Public
Financing
Authority
Debt Service
Indio /
El Portal
Visalia
Assessment Assessment
District
District
Reassessment
Districts
Total
Nonmajor
Governmental
Funds
$
$
$
$
$
8,863
30
8,893
-
192
192
213
213
4,618
19,799
1,036,489
237,046
300,000
141,681
446,299
(446,299)
-
-
-
300,000
141,681
7,171
1,742,186
8,893
192
213
827,551
446,299
469,179
(1,184,472)
(19,861)
$
528,938
951,659
868,060
210,628
10,452
2,569,737
446,299
(19,861)
-
-
-
(10,968)
192
213
112,258
-
11,504
93,798
103,687
4,432,206
-
$
536
$
93,990
$
103,900
86
(715,293)
$
4,544,464
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
231,893
1,037
232,930
258,497
258,497
232,930
(25,567)
(140,000)
(412,159)
(196,878)
215,281
(140,000)
(412,159)
(196,878)
215,281
118,497
(153,662)
36,052
189,714
384,918
384,918
384,918
-
503,415
87
$
$
258,497
Actual
231,256
$
Variance
with Final Budget
Positive (Negative)
$
420,970
$
$
(26,604)
1,037
(25,567)
189,714
City of Pismo Beach
Local Transportation Streets Fund
Budgeted Amounts
Original
Final
Revenues:
Intergovernmental
Miscellaneous
Interest
Total revenues
$
84,000
84,000
190,815
2,653
1,064
194,532
Expenditures:
Total expenditures
15,181
15,181
15,181
15,181
15,181
15,181
68,819
68,819
179,351
Transfers out
sources (uses)
$
83,000
1,000
$
$
$
110,532
201,143
-
(201,143)
68,819
(132,324)
179,351
454,762
454,762
454,762
523,581
$
88
322,438
107,815
1,653
1,064
110,532
-
(201,143)
83,000
1,000
Actual
Variance
with Final Budget
Positive (Negative)
-
$
634,113
201,143
311,675
$
311,675
City of Pismo Beach
PEG Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
$
15,000
Actual
$
Variance
with Final Budget
Positive (Negative)
$
(15,000)
159
(14,841)
-
15,000
159
159
Expenditures:
Total expenditures
-
33,984
33,984
31,566
31,566
2,418
2,418
-
(18,984)
(31,407)
(12,423)
-
(18,984)
(31,407)
(12,423)
106,079
106,079
-
106,079
$
106,079
$
89
87,095
$
74,672
$
(12,423)
City of Pismo Beach
Budgeted Amounts
Original
Final
Revenues:
Intergovernmental
Interest
Total revenues
$
Transfers out
sources (uses)
$
100,000
$
Actual
100,000
$
Variance
with Final Budget
Positive (Negative)
100,000
100,000
106,230
184
106,414
$
6,230
184
6,414
100,000
100,000
106,414
6,414
(97,489)
(100,000)
(42,280)
57,720
(97,489)
(100,000)
(42,280)
57,720
2,511
-
64,134
64,134
31,541
31,541
31,541
-
34,052
90
$
31,541
$
95,675
$
64,134
City of Pismo Beach
Local Business Improvement Fund
Budgeted Amounts
Original
Final
Revenues:
Special assessments
Interest
Total revenues
$
749,000
805,800
868,060
1,894
869,954
Expenditures:
Community promotion
Total expenditures
532,836
532,836
1,101,609
1,101,609
1,036,489
1,036,489
216,164
(295,809)
(166,535)
129,274
216,164
(295,809)
(166,535)
129,274
421,980
421,980
421,980
$
749,000
638,144
91
$
$
805,800
Actual
126,171
$
Variance
with Final Budget
Positive (Negative)
$
255,445
$
62,260
1,894
64,154
65,120
65,120
$
129,274
City of Pismo Beach
Chapman House Estate
Budgeted Amounts
Original
Final
Revenues:
Charges for services:
Interest
Miscellaneous
Total revenues
$
100,000
101,200
1,200
520
195,832
197,552
1,312
50,661
220,776
271,437
69,590
69,590
151,186
151,186
(1,312)
(170,237)
127,962
247,538
(1,312)
(170,237)
127,962
247,538
139,015
139,015
-
Expenditures:
Professional services
Capital Outlay
Total expenditures
1,312
$
139,015
$
137,703
92
$
1,200
Actual
(31,222)
$
Variance
with Final Budget
Positive (Negative)
$
266,977
$
520
95,832
96,352
$
247,538
City of Pismo Beach
Public Facilities Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
Transfers out
sources (uses)
$
Actual
$
-
Variance
with Final Budget
Positive (Negative)
$
-
15
15
$
15
15
15
15
(53,000)
(53,000)
-
-
(53,000)
(53,000)
-
-
(53,000)
(52,985)
53,801
53,801
53,801
53,801
93
$
801
$
816
15
$
15
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 in
Transfers out
sources (uses)
110,000
110,000
$
509,831
1,988
511,819
$
142,061
$
399,831
1,988
401,819
4,315
368,027
356,345
724,372
142,061
225,966
356,345
582,311
20,685
(614,372)
369,758
984,130
3,533
3,533
60,000
(60,000)
25,000
Actual
Variance
with Final Budget
Positive (Negative)
-
(60,000)
3,533
63,533
20,685
(674,372)
373,291
1,047,663
872,925
872,925
872,925
198,553
$ 1,246,216
893,610
94
$
$
1,047,663
City of Pismo Beach
Capital Outlay Fund
Budgeted Amounts
Original
Final
Revenues:
Intergovernmental
Miscellaneous:
Total revenues
Expenditures:
Capital outlay
Total expenditures
Transfers in
sources (uses)
$
$ 2,446,202
Actual
2,446,202
297,182
89
297,271
1,155,522
1,155,522
8,789,996
8,789,996
1,588,605
1,259,731
2,848,336
(1,588,605)
7,530,265
5,941,660
(1,155,522)
(6,343,794)
(2,551,065)
3,792,729
530,000
6,358,638
2,710,345
(3,648,293)
530,000
6,358,638
2,710,345
(3,648,293)
(625,522)
14,844
159,280
93,370
93,370
93,370
-
$ (532,152)
95
$
108,214
$
Variance
with Final Budget
Positive (Negative)
$
252,650
$
(2,149,020)
89
(2,148,931)
144,436
$
144,436
City of Pismo Beach
Circulation Improvement Fund
Budgeted Amounts
Original
Final
Revenues:
Miscellaneous
Interest
Total revenues
$
Actual
$
$
-
-
3,280
202
3,482
Variance
with Final Budget
Positive (Negative)
$
$
3,280
202
3,482
3,482
3,482
19,347
19,347
Transfers in
sources (uses)
-
-
19,347
19,347
-
-
22,829
22,829
80,146
80,146
80,146
-
$
80,146
96
$
80,146
$
102,975
$
22,829
City of Pismo Beach
Impact Fees Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
$
Actual
$
Variance
with Final Budget
Positive (Negative)
3,000
3,000
3,000
3,000
440,628
2,636
443,264
$
440,628
(364)
440,264
Expenditures:
Community Development
Total expenditures
1,000
1,000
1,000
1,000
1,000
1,000
2,000
2,000
442,264
440,264
-
Transfers out
sources (uses)
(25,000)
(564,874)
(872,453)
(307,579)
(25,000)
(564,874)
(872,453)
(307,579)
(23,000)
(562,874)
(430,189)
132,685
1,619,558
1,619,558
1,619,558
$ 1,596,558
$ 1,056,684
$ 1,189,369
97
$
132,685
City of Pismo Beach
Developer Impact Fees Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
Actual
$
-
$
-
$
-
-
58,089
58,089
58,089
98
$
58,089
318
318
Variance
with Final Budget
Positive (Negative)
$
318
318
318
318
58,089
$
318
318
58,407
$
318
City of Pismo Beach
Underground Utility Fund
Revenues:
Total revenues
Budgeted Amounts
Original
Final
$
$
-
Actual
$
-
Variance
with Final Budget
Positive (Negative)
$
-
-
-
sources (uses)
-
-
-
-
-
-
-
-
403
$
-
$
99
-
$
403
(403)
$
(403)
City of Pismo Beach
Budgeted Amounts
Original
Final
Revenues:
Loan interest
Loan proceeds
Total revenues
$
Expenditures:
Highways and Streets
Debt service:
Principal
Interest
Total expenditures
$
$
141,681
300,000
441,681
$
$
-
(141,681)
(300,000)
(441,681)
2,368
2,183
4,618
2,435
300,000
141,681
444,049
300,000
141,681
443,864
300,000
141,681
446,299
2,435
(2,368)
Transfers in
sources (uses)
141,681
300,000
441,681
Actual
Variance
with Final Budget
Positive (Negative)
(2,183)
(446,299)
(444,116)
446,299
446,299
446,299
446,299
-
-
(2,368)
(2,183)
-
2,183
-
-
-
-
(2,368)
100
$
(2,183)
$
-
$
2,183
City of Pismo Beach
Indio/El Portal Assessment District Fund
Budgeted Amounts
Original
Final
Revenues:
Miscellaneous
Interest
Total revenues
$
$
8,861
Actual
$
-
8,861
8,863
30
8,893
-
8,861
8,893
(19,861)
(19,861)
-
Transfers out
sources (uses)
-
(19,861)
(19,861)
-
(11,000)
(10,968)
11,504
11,504
11,504
$
Variance
with Final Budget
Positive (Negative)
11,504
101
$
504
$
536
$
$
2
30
32
32
32
$
32
City of Pismo Beach
Visalia Assessment District Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
Actual
-
$
-
$
192
192
-
-
192
Variance
with Final Budget
Positive (Negative)
$
192
192
192
Transfers out
sources (uses)
-
(85,000)
-
85,000
-
(85,000)
192
85,192
93,798
93,798
(85,000)
$
93,798
102
$
8,798
85,000
93,798
$
93,990
$
85,192
City of Pismo Beach
Reassessment Districts Fund
Budgeted Amounts
Original
Final
Revenues:
Interest
Total revenues
$
Actual
$
-
$
-
213
213
Variance
with Final Budget
Positive (Negative)
$
213
213
213
213
Transfers out
sources (uses)
-
(91,829)
-
91,829
-
(91,829)
213
92,042
(91,829)
103,687
$
103,687
103
91,829
103,687
$
11,858
103,687
$
103,900
$
92,042
City of Pismo Beach
Nonmajor Proprietary Funds – Overview
June 30, 2015
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.
104
City of Pismo Beach
Combining Statement of Fund Net Position – Nonmajor Proprietary Funds
June 30, 2015
Enterprise
Transit
Pier
Parking
Total
Nonmajor
Enterprise
Funds
$ 2,010,865
26,517
593
2,140
2,040,115
$ 2,031,895
27,444
598
2,140
2,062,077
Assets
Current assets:
Accounts receivable
Prepayments
$
9,066
$
11,964
927
5
9,071
Capital assets:
Land
Equipment
Pier
Less accumulated depreciation
Net capital assets
12,891
33,425
158,038
2,142,553
2,175,978
(1,265,565)
910,413
-
Total assets
9,071
923,304
158,038
(67,984)
90,054
33,425
158,038
2,142,553
2,334,016
(1,333,549)
1,000,467
2,130,169
3,062,544
28,584
28,584
35,292
11,182
8,223
54,697
51,014
11,182
8,223
70,419
97,287
97,287
151,984
167,706
17,726
17,726
910,413
927
90,054
1,898,989
1,000,467
1,905,229
911,340
$ 1,989,043
$ 2,905,696
Deferred Outflows of Resources
Deferred pensions
Liabilities
Accounts payable
Accrued liabilities
3,758
11,964
3,758
11,964
Total liabilities
3,758
11,964
Deferred inflows of resources
Deferred pensions
Net Position
Unrestricted
Total net position
5,313
$
5,313
105
$
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
$
Parking
$
Operating expenses:
Salaries and benefits
Maintenance and operations
Depreciation and amortization
Total operating expenses
18,003
18,003
14,925
14,925
566,370
566,370
32,928
599,298
8,615
8,615
161,852
44,632
206,484
152,277
196,075
16,301
364,653
152,277
366,542
60,933
579,752
9,388
(191,559)
201,717
19,546
Nonoperating revenues (expenses):
Interest and investment revenue
Total nonoperating revenues (expenses)
13
13
Net income (loss) before
transfers
$
-
9,401
Transfers:
Transfers in
Transfers out
Total transfers
(191,559)
566,370
-
Net position - beginning of year
Net position, beginning of year as restated
$
13
13
19,559
147,353
(16,847)
130,506
-
147,353
(16,847)
(16,847)
9,401
(44,206)
184,870
150,065
(4,088)
955,546
(4,088)
955,546
1,916,317
(112,144)
1,804,173
2,867,775
(112,144)
2,755,631
5,313
106
$
201,717
147,353
Net position - end of year
Pier
Total
Nonmajor
Enterprise
Funds
$
911,340
$ 1,989,043
$ 2,905,696
City of Pismo Beach
Combining Statement of Cash Flows – Nonmajor Proprietary Funds
Enterprise
Transit
Cash flows from operating activities:
Receipts from customers
Payments to suppliers for goods and services
Payments to employees for wages and benefits
$
Pier
18,003
(14,004)
$
3,999
Cash flows from noncapital financing activities:
Transfers from other funds
Transfers to other funds
noncapital financing
-
Cash flows from investing activities:
Interest on investments
Net cash provided by investing activities
9
9
Parking
14,498
(151,022)
$
(136,524)
566,307
(163,291)
(178,495)
Total
Nonmajor
Enterprise
Funds
$
224,521
91,996
(16,847)
147,353
(16,847)
(16,847)
130,506
147,353
Net change in cash and cash equivalents
Cash and cash equivalents - beginning of year
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, deferred outflows of resources,
liabilities and deferred inflows of resources:
Receivables
Prepayments
Accounts payable
Accrued liabilities
$
107
147,353
598,808
(328,317)
(178,495)
-
123
123
132
132
4,008
10,829
207,797
222,634
5,058
1,135
1,803,068
1,809,261
11,964
$ 2,010,865
$ 2,031,895
$
$
9,066
$
9,388
$ (191,559)
44,632
16,301
(427)
(1,298)
(4,091)
3,999
$
224,521
19,546
60,933
(63)
972
1,782
4,318
(506)
10,830
$ (136,524)
201,717
(490)
972
11,314
227
(506)
$
91,996
City of Pismo Beach
Comparative Schedule of Capital Assets
By Source
June 30, 2015
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
Internal service fund
Capital projects fund
Total investment in capital assets
used in government-wide activities
108
2015
2014
$ 6,957,295
5,531,963
9,685,479
2,543,472
4,275,775
$ 6,957,295
5,531,963
9,672,667
2,424,981
4,428,367
5,068,528
40,612,787
73,232
521,095
313,961
229,723
1,212,168
2,726,214
26,829
313,194
1,681,620
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
$ 81,773,335
$ 80,534,893
$ 2,042,216
7,348,370
3,624,354
4,446,755
64,311,640
$ 1,938,753
7,348,370
3,617,183
4,578,678
63,051,909
$ 81,773,335
$ 80,534,893
City of Pismo Beach
Schedule of Changes in Capital Assets
By Source
June 30, 2015
Government-wide capital assets
June 30, 2014
Add:
Expenditures from:
Capital projects
Internal service
Deduct:
Retired/transferred
Government-wide capital assets
June 30, 2015
Right of Way
and Land
Infrastructure
Buildings
$ 12,025,823
$ 45,798,895
$ 5,531,963
Equipment,
Vehicles,
Improvements,
and CIP
$
230,308
17,178,212
Total Cost
$
1,167,241
295,021
1,397,549
295,021
(454,128)
$ 12,025,823
$ 46,029,203
109
$ 5,531,963
$
18,186,346
80,534,893
(454,128)
$
81,773,335
City of Pismo Beach
Schedule of Capital Assets
By Function and Activity
June 30, 2015
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
Infrastructure
$
$
319,942
5,566
4,376,379
5,068,529
Buildings
Equipment,
Vehicles,
Improvements,
and CIP
Total Cost
$ 1,747,590
2,844,973
939,400
$
1,624,613
2,571,542
6,922,808
7,067,383
$
3,692,145
5,422,081
12,238,587
53,682,424
4,482,691
2,255,407
$ 5,531,963
$
18,186,346
$
81,773,335
41,546,512
4,482,691
2,255,407
$ 12,025,823
$ 46,029,203
110
City of Pismo Beach
Schedule of Changes in Capital Assets
By Function and Activity
June 30, 2015
Function and Activity
General government:
General operations
Public safety
Parks and recreation
Streets and CIP
Beach stairway
Open space
Balance
June 30, 2014
$
Additions
3,689,194
5,512,328
12,172,581
52,422,692
4,482,691
2,255,407
$
$ 80,534,893
$
111
Deletions
2,951
171,775
241,736
1,276,108
$
1,692,570
$ (454,128)
Balance
June 30, 2015
$
3,692,145
5,422,081
12,238,587
53,682,424
4,482,691
2,255,407
$
81,773,335
(262,022)
(175,730)
(16,376)
Statistical Section
City of Pismo Beach
Statistical Section - Overview
June 30, 2015
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.
113
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
2010
2011
2006
2007
2008
2009
Restricted
Unrestricted
2012
2013
2014
2015
$ 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
$ 39,251,227
5,271,646
9,281,262
Total governmental activities net position
$ 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
$ 53,804,135
Restricted
Unrestricted
$ 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
$ 20,129,677
1,501,066
12,476,254
Total business-type activities net position
$ 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
$ 34,106,997
Primary government (City wide totals):
Restricted
Unrestricted
$ 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
$ 59,380,904
6,772,712
21,757,516
Total primary government net position
$ 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
$ 87,911,132
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.
114
Schedule 2
City of Pismo Beach
2006
Expenses:
General government
Police
Fire
Public works
Streets
Community Services
Redevelopment and Housing
Interest on long-term debt
Total governmental activities expenses
$
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
2009
$
3,880,596
5,184,560
1,665,396
1,408,778
1,543,671
3,655,274
694,471
249,067
For The Fiscal Year Ended June 30
2010
2011
$
4,572,394
4,370,052
1,749,148
756,867
1,965,141
2,773,862
992,959
198,015
$
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
2015
$
7,653,880
3,556,827
2,094,768
1,752,177
4,194,972
1,863,037
4,700
140,806
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
21,261,167
Water
Wastewater
Pier
Parking
Transit
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
4,757,476
2,846,821
206,484
364,653
8,615
Total business-type activities expenses
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
8,184,049
$ 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
$ 29,445,216
Total City government expenses
Continued
115
Schedule 2
City of Pismo Beach
Changes in Net Position, Continued
Page 2
2006
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
$
4,257,320
$
Total business-type activities programs revenues
Total City government program revenues
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
$
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
2010
2011
$
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
$
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
2015
$
5,352,833
$
3,920,594
3,848,743
14,105
551,567
8,103
-
1,951,778
114,191
137,922
1,598,614
182,728
747,979
711,956
1,014,648
231,893
6,691,709
$
3,817,994
5,065,797
14,925
566,370
18,016
-
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
9,483,102
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
$ 16,174,811
Continued
116
Schedule 2
City of Pismo Beach
Page 3
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
$ (13,795,952)
(1,225,838)
$ (14,160,472)
88,278
$ (16,142,691)
(181,641)
$ (14,151,532)
153,483
$ (14,569,458)
1,299,053
$ (14,627,643)
$ (15,021,790)
$ (14,072,194)
$ (16,324,332)
$ (13,998,049)
$ (13,270,405)
$
$
$
$
$
$
Net Revenues (Expenses):
Governmental activities
Business-type activities
$
(9,720,842)
(131,836)
$
(9,872,538)
(790,052)
$ (11,698,050)
(139,178)
$
(9,580,471)
1,842,947
$ (13,766,505)
(861,138)
Total City government
$
(9,852,678)
$ (10,662,590)
$ (11,837,228)
$
(7,737,524)
$
$
$
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
$ 2,937,753
Incremental property taxes
570,689
Sales taxes
2,134,638
5,295,777
Other taxes
738,257
Unrestricted grants and contributions
58,595
Investment earnings
201,501
Miscellaneous
34,751
Transfers
78,977
Extraordinary item - RDA
Total governmental activities
Special Water Taxes
Transfers
Total business-type activities
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
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
4,392,370
4,497,958
8,682,119
890,811
205,281
64,428
(696,140)
18,036,827
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)
2,672,840
696,140
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
3,368,980
$ 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
$ 21,405,807
Continued
117
Schedule 2
City of Pismo Beach
Page 4
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Change in net position:
Governmental activities
$
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
$
3,467,369
4,668,033
$
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
$
8,135,402
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.
118
Schedule 3
City of Pismo Beach
Fund Balance, Governmental Funds
2006
General fund:
Reserved
Unreserved
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total general fund
All other governmental funds:
Reserved
Unreserved reported in:
Capital projects funds
Debt service funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental
funds
Total all governmental funds
$
495,570
5,684,945
-
2007
$
412,243
6,897,149
-
2008
$
327,779
7,856,880
-
2009
$
830,542
8,058,030
-
For the Fiscal Year Ended June 30
2010
2011
$
1,171,483
8,345,169
-
$
768,088
190,575
7,265,958
714,379
2012
$
2013
462,005
141,756
7,665,163
2,141,222
$
2014
965,312
204,139
6,103,064
3,361,546
$
2015
88,805
9,592,749
4,825,898
$
37,096
8,258,692
7,346,781
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
15,642,569
828,046
1,185,985
1,121,665
606,929
606,763
-
-
-
-
-
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
-
1,657,235
2,856,132
276,240
(1,639,658)
1,697,235
3,135,353
236,068
(1,635,422)
1,121,826
4,201,623
288,953
(426,563)
1,086,826
4,184,820
895,777
-
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
6,167,423
$ 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
$ 21,809,992
119
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
2009
2010
2011
2012
2006
2007
2008
2013
2014
2015
$ 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
$ 18,463
1,594
68
1,887
868
1,188
393
894
15,321
18,261
18,414
18,697
17,525
19,111
20,321
20,301
23,155
25,355
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
7,795
6,693
3,526
3,524
4,077
4,950
4,772
4,187
5,659
3,791
4,160
5,824
1,576
1,754
5,197
1,941
2,369
3,258
3,115
2,508
436
1,370
221
328
26
212
225
243
130
340
260
259
280
200
250
187
270
176
275
162
290
152
300
142
14,223
14,996
19,210
17,351
18,701
19,257
20,872
19,518
17,349
22,124
Continued
120
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
2006
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
sources(uses)
Debt service as a
percentage of noncapital
expenditures
$
3,265
1,937
(2,444)
5,185
(4,045)
2,592
(2,956)
(796)
130
4,962
(5,265)
776
-
-
591
$ 4,041
4.54%
2009
2010
2011
2012
2008
1,098
(507)
Extraordinary item:
Dissolution of RDA
Net change in fund
balance
2007
3.73%
1,346
(1,176)
(146)
(551)
1,438
1,769
(2,292)
2,862
(3,127)
2,689
(3,242)
2,686
(2,819)
(265)
(553)
(133)
(173)
915
-
$
(969)
3.47%
-
$ 2,261
3.49%
121
-
$ (1,441)
3.03%
-
$
2013
783
(692)
(699)
$ (1,376)
2.81%
2.58%
2014
$
2015
5,806
3,231
2,825
(3,101)
825
(1,099)
3,430
(4,544)
(276)
(274)
(1,114)
-
-
-
507
$ 5,532
$ 2,117
2.64%
2.68%
2.18%
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
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%
2014-2015
2,561,760
38,802
2,600,562
1.00%
6,459,831
40.26%
Source: SLO County Assessors Office, and HDL Reports. Amounts for Fiscal years 2006 through 2007
adjusted to data from HDL reports in Fiscal year 2008.
122
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
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%
2014-2015
1.00%
0.00%
1.00%
0.0409%
0.0139%
1.0548%
Note:
The direct property tax rates can only be changed with specific voter approval. Updated
information dating back to FY 2000.
Source: HDL Reports.
123
Schedule 7
City of Pismo Beach
Principal Property Tax Payers – Top Ten
(Dollar Amounts in Thousands)
2015
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
Henry F. Myers Trust
Castleblack Pismo Beach
Taxable
Assessed
Value
$
34,109
29,050
25,854
23,723
20,329
15,719
15,011
14,929
13,197
11,819
Total
$
2014
Rank
1
2
3
4
5
6
7
8
9
10
203,740
Percentage of
Total City
Taxable
Assessed Value
1.31%
1.12%
0.99%
0.91%
0.78%
0.60%
0.58%
0.57%
0.51%
0.45%
7.83%
Taxpayer
Core Pismo, LLC
Spalding G. Wathen, Inc.
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
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
$
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%
8.04%
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
$
2011
Taxpayer
Spalding G. Wathen
Core Pismo, LLC
Cliffs Resort, LLC
Total
$
197,182
200,042
8.02%
2012
193,923
Taxable
Assessed
Value
$
33,751
26,867
24,243
23,710
22,575
14,928
14,306
13,262
12,197
11,343
Rank
1
2
3
4
5
6
7
8
9
10
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%
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%
192,208
8.00%
2010
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%
8.13%
Taxpayer
Spalding G. Wathen
Core Pismo, LLC
Cliffs Resort, LLC
MP Pismo Investments LLC
Taxable
Assessed
Value
$
33,829
26,930
23,904
23,766
22,716
14,964
14,338
13,285
11,628
11,366
Total
$
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%
196,726
8.07%
Continued
124
Schedule 7
City of Pismo Beach
Principal Property Tax Payers – Top Ten, Continued
Page 2
2009
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
$
2008
Rank
1
2
3
4
5
6
7
8
9
10
191,586
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%
7.92%
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
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
$
100,011
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%
2006
Rank
1
2
3
4
5
6
7
8
9
10
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%
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
$
125
123,456
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%
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
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%
2014-2015
4,392,370
4,392,370
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.
126
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
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
2014-2015
275,456,400
7.50%
1.00%
0.50%
4,497,958
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.
127
Schedule 8 B
City of Pismo Beach
Principal Sales Tax Generators by Industry – Revenue Base Concentration Data
Last Ten Calendar Years
2014
Industry
Apparel Stores
Restaurants
All Other Outlets
Other Retail Stores
Service Stations
Food Stores
Retail
Sales
Generated
$
71,452
69,346
44,231
43,228
33,236
8,888
Total
$
2013
Rank
1
2
3
4
5
6
270,381
Percentage of
Total City
Retail
Sales Dollars
26.43%
25.65%
16.36%
15.99%
12.29%
3.29%
100.00%
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
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
$
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%
100.00%
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
$
2010
Industry
Apparel Stores
Restaurants
Other Retail Stores
All Other Outlets
Service Stations
Food Stores
Total
$
213,587
261,911
100.00%
2011
243,695
Retail
Sales
Generated
$
55,409
54,681
33,842
33,354
29,592
6,709
Rank
1
2
3
4
5
6
Percentage of
Total City
Retail
Sales Dollars
27.05%
24.92%
16.11%
15.60%
13.44%
2.88%
Rank
1
2
3
4
5
6
234,118
Percentage of
Total City
Retail
Sales Dollars
26.10%
24.68%
16.19%
15.12%
15.09%
2.81%
100.00%
2009
Rank
1
2
3
4
5
6
Percentage of
Total City
Retail
Sales Dollars
25.94%
25.60%
15.84%
15.62%
13.85%
3.14%
100.00%
Industry
Apparel Stores
Restaurants
Other Retail Stores
All Other Outlets
Service Stations
Food Stores
Retail
Sales
Generated
$
53,576
52,845
36,225
34,234
26,249
7,072
Total
$
210,201
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%
Continued
128
Schedule 8 B
City of Pismo Beach
Principal Sales Tax Generators by Industry – Revenue Base Concentration Data, Continued
Last Ten Calendar Years
Page 2
2008
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
$
2007
Rank
1
2
3
4
5
6
231,803
Percentage of
Total City
Retail
Sales Dollars
23.30%
21.31%
20.54%
17.30%
14.32%
3.22%
0.00%
100.00%
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
Industry
Restaurants
Other Retail Stores
Apparel Stores
All Other Outlets
Service Stations
Food Stores
Retail
Sales
Generated
$
55,469
47,210
45,304
41,505
28,205
7,996
Total
$
225,689
Rank
1
2
3
4
5
6
231,304
Percentage of
Total City
Retail
Sales Dollars
24.46%
20.89%
19.54%
17.87%
13.84%
3.39%
100.00%
2005
Rank
1
2
3
4
5
6
Percentage of
Total City
Retail
Sales Dollars
24.58%
20.92%
20.07%
18.39%
12.50%
3.54%
100.00%
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
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.
129
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%
Schedule 8 B-1
City of Pismo Beach
Principal Sales Tax Payers – Top 25
(In Alphabetical Order)
Fiscal Year Ended June 30
2015
2014
Arco
Brads Restaurant
California Fresh
Calvin Klein
Cliffs at Shell Beach
Coach
Cool Cat Café
Cracked Crab
CVS Pharmacy
Dolphin Bay Hotel & Lido Rest.
McLintocks
Five Cities Chevron
Giuseppes Cucina
Miller 76
Nike Retail
Orchard Supply Hardware
Oshkosh B Gosh
Ralph Lauren
Rite Aid
Ross
Shell
Sky River RV
Splash Café
Spyglass Shell
Ventana Grill
Arco
Brads Restaurant
California Fresh
Calvin Klein
Coach
Cracked Crab
CVS Pharmacy
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
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
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
Scolaris
Shell
Sky River RV
Splash Café
Spyglass Shell
Ventana Grill
Continued
130
Schedule 8 B-1
City of Pismo Beach
Page 2
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
Scolaris
Splash Café
Spyglass Shell
Valley Convenience Stores
2009
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
Scolaris
Shelter Cove Lodge
Splash Café
Spyglass Shell
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
Continued
131
Schedule 8 B-1
City of Pismo Beach
Page 3
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
2006
7 Eleven
Brad's Restaurant
Cliffs At Shell Beach
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
Note: Principal Sales Tax payers provided by HDL.
132
Schedule 8 C
City of Pismo Beach
Transient Occupancy Tax Revenue Base Data
Revenue Base
Room Revenues
Subject to Tax
City
Direct
Tax Rate
Revenue
Recognized
By the City
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
2014-2015
86,821,190
10.00%
8,682,119
Fiscal
Year
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.
133
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
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
$
2014-2015
No Data
No Data
$
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
7,260,482
17
$
$
$
$
$
$
$
$
$
$
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
558,564
14
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
$
2014-2015
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
759,673
7
Note:
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.
134
$
$
$
$
$
$
$
$
$
68,335
8
55,072
9
165,081
11
166,931
12
188,055
15
211,749
15
256,154
15
245,297
17
103,400
14
Schedule 8 D-1
City of Pismo Beach
Principal Transient Occupancy Tax Payers – Top Ten
2015
Cliffs of Shell Beach
Dolphin Bay Hotel
Island Hospitality
Kon Tiki Motel
Oxford Suites
Pismo Coast Village
Pismo Lighthouse Suites
Sandcastle Inn
Seacrest Motel
Shorecliff Inn
2014
2013
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
2012
Cottage Inn
Dolphin Bay Hotel
Hilton Garden Inn
Kon Tiki Motel
Pismo Coast Village
Sandcastle Inn
Seacrest Motel
Shorecliff Inn
2011
Cottage Inn
Dolphin Bay Hotel
Kon Tiki Motel
Oxford Suites Resort
Pismo Coast Village
Sandcastle Inn
Seacrest Motel
Shorecliff Inn
2010
2009
Cottage Inn
Cottage Inn
Dolphin Bay Hotel
Dolphin Bay Hotel
Kon Tiki Motel
Kon Tiki Motel
Pismo Coast Village
Pismo Coast Village
Sandcastle Inn
Sandcastle Inn
Seacrest Motel
Seaventure Motel
Shorecliff Inn
Shorecliff Inn
2008
Cottage Inn
Kon Tiki Motel
Pismo Coast Village
Sandcastle Inn
Seacrest Motel
Seaventure Motel
Shorecliff Inn
2007
2006
Cottage Inn
Cottage Inn
Kon Tiki Motel
Kon Tiki Motel
Pismo Coast Village
Pismo Coast Village
Sandcastle Inn
Sandcastle Inn
Seacrest Motel
Seacrest Motel
Seaventure Motel
Seaventure Motel
Shorecliff Inn
Shorecliff Inn
Spyglass Inn Motel
Source: Principal Transient Occupancy Tax Payers provided by City of Pismo Beach records.
135
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*
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
-
2014-2015
12.72
2.60
38.92
-
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.
136
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
2005-2006
$
2006-2007
$
2007-2008
$
2008-2009
$
2009-2010
$
2010-2011
$
2011-2012
$
2012-2013
$
2013-2014
$
2014-2015
$
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
1,090,870
3,772
$
$
$
$
$
$
$
$
$
$
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
914,283
641
$
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
14,231
91
$
$
$
$
$
$
$
$
$
Totals
$
$
$
$
$
$
$
$
$
$
$
$
$
$
26,338
71
55,832
71
49,126
72
53,741
82
59,911
81
75,576
80
100,766
83
106,819
82
$
$
$
$
$
$
$
$
90,631
122
197,665
124
173,885
127
198,223
125
213,392
123
217,164
125
306,762
130
283,457
132
$
$
$
$
$
$
$
$
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
2,409,660
4,718
Wastewater Revenue Concentration Data
Class of Customer
Other
Residential
Residential
Fiscal
Year
Hotel/Motel
Commercial
Other
Revenue in Dollars and Number of Customers
2005-2006
$
2006-2007
$
2007-2008
$
2008-2009
$
2009-2010
$
2010-2011
$
2011-2012
$
2012-2013
$
2013-2014
$
2014-2015
$
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
1,230,586
3,767
$
$
$
$
$
$
$
$
$
$
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
295,567
325
$
$
$
$
$
$
$
$
$
$
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
534,754
37
137
$
$
$
$
$
$
$
$
$
$
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
619,649
270
Totals
$
$
$
$
$
$
$
$
$
$
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
183,333
48
$
$
$
$
$
$
$
$
$
$
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
2,863,889
4,447
Schedule 8 F-1
City of Pismo Beach
Principal Water Sale Purchasers – Top Ten
2015
Cliffs Shell Beach
Dolphin Bay Hotel, Inc.
Kon Tiki
Motel 6 Inc.
Pismo Coast Village, Inc.
Pismo Mobile Hm Pk
Seacrest Resort
Shorecliff Lodge
Fiscal Years Ended June 30
2014
2013
City of Pismo Beach
City of Pismo Beach
Cliffs Shell Beach
Cliffs Shell Beach
Hilton Garden Inn
Judkins Middle School-LMUSD
Hilton Garden Inn
Motel 6 Inc.
Motel 6 Inc.
Pismo Mobile Hm Pk
Pismo Mobile Hm Pk
Shorecliff Lodge
Seacrest Resort
Toucan I HOA
Shorecliff Lodge
2012
Cliffs Shell Beach
Hacienda Del Pismo
Kon Tiki
Motel 6 Inc.
Pismo Mobile Hm Pk
Quality Inn - Pismo Beach
Seacrest Resort
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
2009
Cliffs of Shell Beach-Hotel
Baycliff Homeowner's Assc
Cliffs of Shell Beach-Restaurant
Motel 6 Inc.
Motel 6 Inc.
Pismo Mobile Hm Pk
Pismo Dunes Travel
Rose Garden Inn
Pismo Mobile Hm Pk
Seacrest Motel
Shorecliff Lodge
Shorecliff Lodge
2008
Hacienda Del Pismo
Motel 6 Inc.
Pismo Mobile Hm Pk
Shorecliff Lodge
Sunset Palisades HOA
2007
2006
Baycliff Homeowner's Assc
Hacienda Del Pismo
Hacienda Del Pismo
Kon Tiki
Kon Tiki
Motel 6
Motel 6
Oxford Suites
Oxford Suites
Pismo Mobile Hm Pk
Pismo Mobile Hm Pk
Seacrest Motel
Seacrest Motel
Seaventure Motel
Shorecliff Lodge
Shorecliff Lodge
138
Schedule 9
City of Pismo Beach
Ratios of Outstanding Debt by Type
(Dollars in Thousands except for Per Capita)
Fiscal
Year
Governmental Activities
Lease
Special
Revenue
Assessment
Bonds
Bonds
General
Obligation
Bonds
Tax
Allocation
Bonds
Business-Type Activities
Capital
Lease
Lease
Revenue
Obligations
Bonds
Capital
Lease
Obligations
Unamortized
Bond
Premium
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
2005-2006
-
4,140
110
1,565
-
-
7,300
-
9,995
23,110
8.65%
2,668
8,662
30,835
2006-2007
-
5,185
85
1,515
-
-
7,145
-
9,945
23,875
9.06%
2,794
8,545
30,835
2007-2008
-
5,160
60
1,465
100
-
6,985
-
9,744
23,514
8.86%
2,733
8,603
30,835
2008-2009
-
4,985
30
-
-
57
6,825
-
9,752
21,649
8.11%
2,500
8,660
30,835
2009-2010
-
4,735
-
-
-
12
6,655
-
9,263
20,665
7.70%
2,374
8,704
30,835
2010-2011
-
4,485
-
-
-
-
6,480
-
8,765
19,730
5.45%
2,577
7,655
47,262
2011-2012
-
4,215
-
-
-
-
5,710
-
8,255
18,180
4.79%
2,369
7,675
49,459
2012-2013
-
3,940
-
-
-
-
5,535
-
7,739
17,214
5.02%
2,231
7,717
44,456
2013-2014
-
3,650
-
-
-
-
5,345
385
7,212
16,592
5.26%
2,153
7,705
40,940
2014-2015
-
3,350
-
-
-
-
5,155
365
6,677
15,547
5.10%
2,022
7,688
39,672
139
Schedule 10
City of Pismo Beach
Ratios of General Bonded Debt Outstanding
Fiscal
Year
General
Obligation
Bonds
General Bonded Debt Outstanding
Lease
Tax
Revenue
Allocation
Bonds
Bonds
Total
Percentage of
Actual Taxable
Value of
Property
Per
Capita
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
2014-2015
-
3,350,000
-
3,350,000
0.13%
435.74
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.
140
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
$
28,365,000
106,204,398
8,025,000
8,035,000
6.067%
6.067%
6.044%
17.864%
TOTAL OVERLAPPING DEBT REPAID WITH PROPERTY TAXES
$
1,720,905
6,443,421
485,031
1,435,372
$ 10,084,729
OVERLAPPING TAX AND ASSESSMENT DEBT:
San Luis Obispo County Flood Control and Water Conservation District, Zone No. 3
San Luis Obispo Community College District
San Luis Coastal Unified School District
Lucia Mar Unified School District
9,115,000
75,000,000
50,000,000
28,773,020
32.047%
6.044%
3.576%
17.864%
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
2,921,086
4,533,000
1,788,000
5,140,012
$ 14,382,098
CITY DIRECT DEBT - GOVERNMENTAL ONLY:
City of Pismo Beach General Fund Obligations
3,350,000
$
3,350,000
TOTAL DIRECT DEBT
$
3,350,000
TOTAL OVERLAPPING DEBT
$ 24,466,827
TOTAL DIRECT AND OVERLAPPING DEBT
100.00%
$ 27,816,827
141
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
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%
2014-2015
97,520,366
-
0%
Legal Debt Margin Calculation for Fiscal Year 2014
Assessed value
$
Conversion Percentage (25%)
2,600,543,087
25%
Adjusted Assessed Valuation
650,135,772
Debt Limit Percentage (15%)
15%
Debt Limit
97,520,366
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
142
97,520,366
0%
Schedule 13
City of Pismo Beach
Pledged Revenue Coverage
Fiscal
Year
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
Special
Assessment
Collections
36,494
34,762
15,938
-
Capital
Impact
Fees
Capital
Impact
Fees
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
Wastewater
Service
Revenues
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
25,000
25,000
30,000
-
Interest
8,370
6,523
4,866
3,030
-
-
2004 Revenue Bonds
Less
Net
Available
Operating
Expenses
Revenue
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
0.93
1.10
0.53
-
Debt Service
Principal
155,000
155,000
160,000
160,000
170,000
175,000
175,000
-
Interest
300,405
297,305
293,472
291,005
285,535
282,330
262,174
-
Coverage
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 were drawn down.
Operating expenses exclude depreciation and amortization.
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
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
5,039,175
State of California Wastewater Construction Loan-WWTP
Capital
Less
Net
Debt Service
Available
Impact
Operating
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
1,895,224
3,143,951
491,672
117,588
Coverage
0.57
1.82
2.14
1.94
2.16
2.64
2.73
2.41
5.16
Continued
143
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
2014-2015
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
5,039,175
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
Wastewater
Service
Revenues
2,784,458
2,966,726
3,037,459
3,224,548
3,518,213
3,571,850
3,841,522
5,039,175
State of California Wastewater Construction Loan-Park/Cypress Project
Capital
Less
Net
Debt Service
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
1,895,224
3,143,951
11,916
2,731
State of California Wastewater Construction Loan-Pismo Oaks Lift Station Project
Capital
Less
Net
Debt Service
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
1,895,224
3,143,951
32,054
9,853
Coverage
23.63
75.58
91.94
80.81
89.77
109.66
113.48
100.45
214.65
Coverage
28.24
31.38
38.33
39.66
35.10
75.02
Note:
For all State of CA SRF Loans, Wastewater revenues include service fees only.
2011-2012
2012-2013
2013-2014
2014-2015
Wastewater
Service
Revenues
3,518,213
3,571,850
3,841,522
5,039,175
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
1,895,224
3,143,951
Note:
Wastewater revenues include service fees only.
No Debt Service paid in FY 11-12 as 2004 Bonds were refunded by this issue.
144
Debt Service
Principal
175,000
190,000
190,000
Interest
211,089
202,813
198,063
Coverage
4.30
3.75
8.10
Schedule 14
City of Pismo Beach
Demographic and Economic Statistics
Fiscal
Year
Population
Personal
Income
Per Capita
Personal
Income
Unemployment
Rate
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%
2014-2015
7,688
304,998,336
39,672
4.50%
Source:
California Labor Market Info. Data Library as of Nov of each year.
Per Capita Personal Income based on Census Data.
145
Schedule 15
City of Pismo Beach
Principal Employers – Top Ten
Last Eight Fiscal Years
Employer
Martin Resorts
The Cliff's of Shell Beach
Dolphin Bay Resort
Keller-Williams
City of Pismo Beach
Sea Venture
Brad's Restaurant
U.S. Postal Service
McClintock's
Steamer's
Total
Number
Employees
Rank
Percentage
of Total City
Employment
260
243
191
106
89
85
79
75
71
62
1
2
3
4
5
6
7
8
9
10
6.50%
6.08%
4.78%
2.65%
2.23%
2.13%
1.98%
1.88%
1.78%
1.55%
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
31.53%
Total
1,261
Employer
Employer
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
Total
Number
Employees
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%
1,032
20.64%
Rank
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%
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
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
Employer
20.08%
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
18.61%
Employer
Rank
Percentage
of Total City
Employment
Percentage
of Total City
Employment
1,021
Number
Employees
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
Employer
21.74%
Continued
146
Schedule 15
City of Pismo Beach
Principal Employers – Top Ten, Continued
Last Eight Fiscal Years
Page 2
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%
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
949
20.63%
Total
Employer
Employer
Employer
Martin Resorts
The Cliff's
City of Pismo Beach
Keller-Williams
McClintock's
Sea Venture
Brad's Restaurant
U.S. Postal Service
Steamer's
Total
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%
1,046
22.74%
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%
McClintock's
City of Pismo Beach
Keller- Williams
U.S. Postal Service
Steamer's
Pelican Pointe
Brad's Restaurant
Sea Venture
24.30%
Total
1,118
Number
Employees
Employer
Note:
Source: City of Pismo Beach provided information by contacting employers for all years except 2010.
HDL provided the information for 2010.
147
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%
Schedule 16
City of Pismo Beach
Full-Time Equivalent City Government Employees by Function/Program
2006
Function/Program
General government:
Administration
Human Resources
City Council
City Attorney - Contract
CVB
Administrative Services
Information Technology
2007
4
1
5
1
2
7
Full-Time Equivalent Employees as of June 30
2009
2010
2011
2012
2013
2008
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
4
1
5
1
2
6
2014
2015
4
1
5
1
2
6
4
1
5
1
2
6
1
4
1
5
1
2
6
1
-
-
-
-
-
-
-
-
34.00
-
34.00
-
34.00
-
34.00
-
34.00
-
34.00
-
33.00
-
33.00
-
34.00
-
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
1.20
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
4.60
4.10
1.20
1.10
Public Works/Engineering:
Engineering
Streets and Govt Bldgs
Park Maintenance/Fac.
Vets Halls
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
-
3.60
3.03
7.32
-
Water:
Treatment and distribution
Billing
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
6.00
0.50
Wastewater:
Collection and treatment
Billing
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
8.10
0.50
Motor Vehicle Operations:
Motor Vehicle Operations
2.05
2.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
1.05
100.45
100.45
95.98
96.00
96.00
96.00
94.00
94.00
95.00
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.
148
Schedule 17
City of Pismo Beach
Operating Indicators by Function/Program
2006
Function/Program:
Police:
Physical arrest
Traffic violations
2007
2008
2009
2010
2011
2012
2013
2014
2015
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
1,328
2,044
Fire:
Emergency responses
Fires extinguished
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
1,265
21
Building:
Building permits issued
Other permits issued
289
597
222
500
298
609
214
460
210
552
177
471
213
455
246
436
209
478
290
956
Public works:
Miles streets resurfaced
0.10
-
3.15
2.62
38.00
4.10
6.03
6.08
-
-
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
240
3,000
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
20
1.64
1.70
1.79
1.80
1.73
1.55
1.48
1.59
1.63
1.72
1.52
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
53
1.01
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
149
Schedule 18
City of Pismo Beach
Capital Asset Statistics by Function/Program
2006
2007
2009
2010
2011
2012
2008
2013
2014
2015
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
3
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
38
757
3
38
757
3
46
828
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
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
56
4,839
2.16
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
40
4,453
1.90
Water:
Miles of mains
Number connections
Maximum plant capacity
in millions gallons
Wastewater:
Miles of sewers
Number connections
Maximum plant capacity
in millions gallons
Note:
Source: City of Pismo Beach Departments.
150
Schedule 19
City of Pismo Beach
Continuing Disclosure Annual Report Information for Fiscal Year 2014-15
$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.
principal and interest payment delinquencies.
2.
non-payment related defaults.
3.
modifications to rights of Bondholders.
4.
optional, contingent or unscheduled bond calls.
5.
defeasances.
6.
rating changes.
7.
adverse tax opinions or events affecting the tax-exempt status of the Bonds.
8.
unscheduled draws on the debt service reserves reflecting financial difficulties.
9.
unscheduled draws on the credit enhancements reflecting financial difficulties.
10. substitution of the credit or liquidity providers or their failure to perform.
11. release, substitution or sale of property securing repayment of the Bonds.
151
Schedule 20
City of Pismo Beach
$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)
2015
5/8”
3/4”
1”
1 ½”
2”
3”
4”
6”
$22.91
$32.30
$51.07
$97.98
$154.29
$285.68
$473.36
$1,130.27
BI-MONTHLY RESIDENTIAL
FIXED CONSUMPTION CHARGES[1]
[1] Customer
Classification
2015
Single Family
Multifamily
Mobile Home
$54.92
$37.04
$33.14
Apartments, Multifamily and Mobile Home are charged by the dwelling unit. 152
Schedule 20
City of Pismo Beach
$5,710,000
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
2015
$5.58
$8.49
$5.38
$11.25
$5.20
$8.53
$5.57
$4.03
$5.72
$8.59
$3.76
$5.13
$11.58
$5.58
[2] Charge based on water consumption (dollars per hundred cubic feet of water billed for each two‐
month billing period). 153
Schedule 20
City of Pismo Beach
$5,710,000
Page 3
(a) 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
2015
Revenue
Customer Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Cliff’s Shell Beach
Pismo Beach Mobile Home Park
Oxford Suites
Motel 6
Shorecliff Lodge
Kon Tiki
Seacrest Resort
Total Wastewater Revenue from
Ten Largest Customers
Total Wastewater Revenue from
all Other Customers
Total Wastewater Service Charges
Percent
of Total
$65,393
$53,399
$46,020
$45,593
$39,764
$38,313
$35,909
$35,226
$33,962
$33,162
1.66%
1.36%
1.17%
1.16%
1.01%
.97%
.91%
.89%
.86%
.84%
$426,741
10.83%
$3,513,607
89.17%
$3,940,348
100%
(b) Any additional indebtedness incurred during the prior Fiscal Year which is payable from revenues of
the Wastewater Enterprise on a parity with the Bonds:
154
Schedule 20
City of Pismo Beach
$5,710,000
Page 4
(c) Debt Service Coverage Projections for the Series 2012 Wastewater Refunding Revenue Bonds:
Historical Operating Results and Debt Service Coverage
Audited
FY 2014-15
Gross Revenues
Charges for Services
Miscellaneous
Interest and Investment Revenue
Total Gross Revenues
$ 4,380,459
$ 658,716
$
26,622
$ 5,065,797
Operating Expenses[4]
Salaries and Benefits
Purchased Power
Customer Accounting
Services and Supplies
Total Operating Expenses
$ 602,989
$ 244,394
$ 25,302
$1,022,539
$1,895,224
Net Revenues
$3,170,573
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
$ 387,288
$1,053,100
Debt Service Coverage
3.01
[4] Excludes depreciation, amortization, loss on capital assets, and debt service expenses.
155
Schedule 20
City of Pismo Beach
$5,710,000
Page 5
Reporting of Significant Events
There were no significant events that occurred during the Fiscal Year ended June 30, 2015. 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.
156
Schedule 21
City of Pismo Beach
Continuing Disclosure for Water Enterprise Fund
For Fiscal Year 2014-2015
Table 1: Five Largest Customers of Water Enterprise
Rank Account # Name
1
4605 CLIFFS RESORT
2
2028 PISMO BEACH MOBILE PARK INC
3
1997 PISMO COAST VILLAGE INC
4
2031 OXFORD SUITES
5
2014 MOTEL 6 INC
TOTAL HCF
12,246
11,616
10,330
8,147
7,257
Total Water Charges
$ 40,957.74
$ 43,803.13
$ 39,634.49
$ 28,970.35
$ 25,048.24
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
3,772
Apartments
325
Commercial/Industrial
307
Other
314
4,718
Total All Customers
Water Sales Revenue
$3,362,918
Table 3: Rates and Charges for Water Deliveries for Fiscal Year Most Recently Concluded
Water Service Rates
Minimum Monthly Service Charge: $12.72
Additional Charge per 100 Cubic Feet of Water Used:
$2.60 0-10; $3.22 11-20; $3.80 21-35; $5.20 Over 35
Water Set-up Fee per Account: $45.00
Re-connection Fees:
During Business Hours: $30.00
After Hours: $132.00
157
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 :
1,840 Acre Feet
Impact Fees/Utility Tax:
Type: Water Tax
Revenue Received: $1,284,341
Type: Impact Fees
Revenue Received: $1,388,499
158
Schedule 21
City of Pismo Beach
Continuing Disclosure for Water Enterprise Fund, Continued
Page 3
FISCAL YEAR 2015 WATER ENTERPRISE FUND OPERATING RESULTS
The following table is a summary of operating results of the water system of the City for FY 2014/15. 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,
2015
$3,362,918
1,388,499
43,466
1,284,341
411,610
$6,490,834
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:
539,581
1,122,088
948,210
124,867
2,734,746
NET REVENUES
3,756,088
State Water Payments
Total Contract Payments
1,576,686
1,576,686
Coverage Ratio:
2.38
Available for Capital improvements and
other purposes
$2,179,402
1
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.
159
Other Independent Auditors’ Report
160
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 2015 Annual Financial Report

Transcription

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