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HomeMy WebLinkAbout02-02-2016 Item 07 - City of SLO FS 6-30-15-webSan Luis Obispo, CaliforniaComprehensive Annual Financial Report Fiscal Year Ended June 30, 2015     COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 2015 JAN HOWELL MARX, MAYOR JOHN ASHBAUGH, VICE MAYOR1 DAN CARPENTER, COUNCIL MEMBER CARLYN CHRISTIANSON, COUNCIL MEMBER DAN RIVOIRE, COUNCIL MEMBER KATIE LICHTIG, CITY MANAGER Prepared by the Department of Finance & Information Technology Derek Johnson, Assistant City Manager/Interim Finance Director Vilma Warner, Finance Operations Manager Lynn Covey, Senior Accountant Traci Kawaguchi, Accountant City of San Luis Obispo, California www.slocity.org     1 Mayor and Council Member positions as of June 30, 2015. i  City of San Luis Obispo, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2015 Table of Contents Page Introductory Section Transmittal Memorandum vi-xix Report Purpose and Organization vi Profile of the City of San Luis Obispo vii Factors Affecting Financial Condition ix Financial Condition Overview xi Relevant Financial Policies xiv Major Initiatives xvi Award for Excellence in Financial Reporting xviii Acknowledgments xviii Directory of Officials and Advisory Bodies xx City Council xx Advisory Bodies xx Appointed Officials and Department Heads xx Mission Statement xxi Organizational Values xxii-xxiii Organization of the City of San Luis Obispo xxiv GFOA Certificate of Achievement for Excellence in Financial Reporting xxv Financial Section Independent Auditors’ Report 1-3 Management’s Discussion and Analysis 4-17 Financial Highlights 4 Overview of the Financial Statements 5 ii  City of San Luis Obispo, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2015 Table of Contents Page 2 Page Government-wide Overall Financial Analysis 8 Financial Analysis of Governmental Funds 12 General Fund Budgetary Highlights 14 Capital Assets and Debt Administration 16 Economic Factors and Next Year’s Budgets and Rates 17 Requests for Additional Information 17 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position 19 Statement of Activities 20-21 Fund Financial Statements: Balance Sheet – Governmental Funds 22 Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position 23 Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds 24-27 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Government-wide Statement of Activities and Changes in Net Position 28 Statement of Fund Net Position Business-Type Activities – Enterprise Funds 29-30 Statement of Revenues, Expenses and Changes in Fund Net Position Business-Type Activities—Enterprise Funds 31 Statement of Cash Flows Business-Type Activities – Enterprise Funds 32-33 Statement of Net Position - Fiduciary Funds - Agency Funds 34 Notes to the Basic Financial Statements 38-89 iii  City of San Luis Obispo, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2015 Table of Contents Page 3 Page Required Supplementary Information Section Budgetary Comparison Schedule – General Fund 91-95 Schedule of Funding Progress for Other Post-Employment Benefits (OPEB) 96 Schedule of the Changes in the Net Pension Liability and Related Ratios – Miscellaneous Agent Multiple – Employer Plan 97 Schedule of the Plan Contributions – Miscellaneous Agent Multiple – Employer Plan 98 Schedule of the City’s Proportionate Share of the Net Pension Liability – Safety Cost-Sharing Plans 99 Schedule of the City’s Contributions – Safety Cost-Sharing Plans. 100 Notes to Required Supplementary Information 101-103 Other Supplementary Information and Combining and Individual Fund Statements and Schedules Half Percent Sales Tax Measure Funding Schedule 105-107 Major Governmental Funds 108 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual - Transportation Impact Fee Fund 109 Nonmajor Governmental Funds 110-113 Combing Balance Sheet – Nonmajor Governmental Funds 114-117 Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) - Nonmajor Governmental Funds 118-121 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Downtown Business Improvement District Fund 122 Transportation Development Act (TDA) Fund 123 Tourism Business Improvement District Fund 124 Gas Tax Fund 125 Community Development Block Grant (CDBG) Fund 126 Law Enforcement Grants Fund 127 Public Art Contributions Fund 128 iv  City of San Luis Obispo, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2015 Table of Contents Page 4 Page Agency Funds 129 Combining Statement of Changes in Assets and Liabilities – Agency Funds 130-134 Statistical Section Statistical Section – Overview (Unaudited) 136 Financial Trends: Net Positions by Component – Last Ten Fiscal Years 137 Changes in Net Position – Last Ten Fiscal Years 138-140 Governmental Activities Tax and Franchise Revenues by Source – Last Ten Fiscal Years 141 Fund Balances of Governmental Funds – Last Ten Fiscal Years 142 Revenues, Expenditures and Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 143-144 General Fund Operating Expenditure Trends by Type – Last Ten Fiscal Years 145 Revenue Capacity: Assessed and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years 146 Property Tax Rates – Last Ten Fiscal Years 147 Principal Property Taxpayers – Current Year and Nine Years Ago 148 Secured Property Tax Roll Levies and Collections – Last Ten Fiscal Years 149 Schedule of Taxable Sales and Permits by Category – Last Ten Calendar Years 150 Historical Sales and Use Tax Rates 151 Schedule of Business Tax Certificates Issued - Fiscal Years Ended June 30, 2015 and 2014 152 v  City of San Luis Obispo, California Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2015 Table of Contents Page 5 Page Debt Capacity: Per Capital Outstanding Debt by Type – Last Ten Fiscal Years 153 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt per Capital - Last Ten Fiscal Years 154 Direct and Overlapping Long-Term Debt – Fiscal Year Ended June 30, 2015 155 Computation of Legal Debt Margins – Last Ten Fiscal Years 156 Revenue Bond Coverage: Water Fund – Last Ten Fiscal Years 157 Parking Fund – Last Ten Fiscal Years 158 Demographic and Economic Information: Demographic and Economic Statistics – Last Ten Fiscal Years 159 Principal Employers – Current Year and Nine Years Ago 160 Regular Authorized Positions – Last Ten Fiscal Years 161 Operating Information: Operating Indicators and Capital Asset Statistics by Function – Last Ten Fiscal Years 162-166 Water System Statistical Data 167 Water and Sewer Rates – Last Ten Fiscal Years 168 Water System Ten Largest Users – Fiscal Year Ended June 30, 2015 169      INTRODUCTORY SECTION MEMORANDUM December 17, 2015 TO: The Honorable Mayor and Members of the City Council and Citizens of the City of San Luis Obispo FROM: Katie Lichtig, City Manager Derek Johnson, Assistant City Manager /Interim Director of Finance & I.T. SUBJECT: TRANSMITTAL MEMORANDUM FOR COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR 2014-15 REPORT PURPOSE AND ORGANIZATION We are pleased to submit the City of San Luis Obispo’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2015. Section 810 of the City’s Charter requires that an independent certified public accountant conduct an annual audit at the end of each fiscal year and issue a financial report to the City Council. This CAFR is being issued in compliance with this requirement. The CAFR consists of management’s representations concerning the finances of the City of San Luis Obispo (City). Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. We believe that the data presented in this report is accurate in all material respects and all statements and disclosures needed for the reader to obtain a thorough understanding of the City’s financial activities have been included. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement 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 audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the overall accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. vi TRANSMITTAL MEMORANDUM The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City’s financial statements for the fiscal year ended June 30, 2015 are fairly presented in conformity with GAAP. Glenn Burdette’s judgment is that the City’s financial records and statements are fairly and appropriately presented, and in accordance with Generally Accepted Accounting Principles (GAAP). The independent auditors’ report is presented as the first component 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). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors. “Single Audit” for Federal Grant Programs. The independent audit of the financial statements of the City was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. This separately prepared report is available from the Department of Finance & Information Technology upon request. This audit has been completed and will be filed and distributed to appropriate agencies to meet Federal requirements. Organization of Report This report is presented in three sections: introductory, financial and statistical. The Introductory section includes this transmittal memorandum and other information to familiarize the reader with the City, including a directory of officials and advisory bodies, the City's mission statement and organizational values, and the organization chart. The Financial section consists of five parts: the independent auditors’ report; Management’s Discussion and Analysis; the basic financial statements including the Government-Wide Financial Statements, Fund Financial Statements, and Notes to the Financial Statements; Required Supplementary Information; and additional supplementary statements and schedules including the local half-percent sales tax , non-major governmental funds and agency funds. The Statistical section includes selected unaudited financial and demographic information generally presented on a multi-year basis. This information includes Financial Trends, Revenue Capacity, Debt Capacity, Demographics and Economic Information, and Operating Information. PROFILE OF THE CITY OF SAN LUIS OBISPO With a population of approximately 45,500, the City is located eight miles from the Pacific Ocean and is midway between San Francisco and Los Angeles at the junction of Highway 101 and scenic Highway 1. The City serves as the commercial, governmental, and cultural hub of California’s Central Coast. San Luis Obispo is the County seat of San Luis Obispo County and a number of federal and State regional offices and facilities are located here, along with California Polytechnic State University and Cuesta College. vii TRANSMITTAL MEMORANDUM One of California’s oldest communities, the City began with the founding of Mission San Luis Obispo de Tolosa in 1772 by Father Junipero Serra as the fifth mission in the California chain of 21 missions. It was first incorporated in 1856 as a General Law City and became a Charter City in 1876. As a Charter City, San Luis Obispo has more local authority than cities that incorporate under the general laws of the State of California. The Charter is the City’s governing document and any changes must be approved by the voters. The City’s Charter has been amended several times since its adoption, most recently in August 2011. Form of Government As set forth in the City Charter, the City operates under the “Council-Mayor-City Manager” form of government. The City Council has the authority to make and enforce all laws and regulations with respect to municipal affairs, subject only to the limitations of the City Charter and the State Constitution. There are four Council members, who are elected at-large and serve overlapping, four-year terms. The Mayor is also elected at-large for a two-year term, and serves as an equal member of the Council. The City Council appoints the City Manager and City Attorney. All other department heads are appointed by the City Manager. City Services The City provides a wide range of municipal services, including police and fire protection, water and sewer utilities, street maintenance, public transportation, parking, parks and recreation, planning, building and safety, and other general government services. Several municipal services are provided through other governmental agencies or private utility companies, including the following: Service Agency Courts, Health and Social Services County of San Luis Obispo Elementary and Secondary Schools San Luis Coastal Unified School District Community College San Luis Obispo County Community College District Solid Waste Collection and Disposal San Luis Garbage Company Gas, Electric and Telephone Private Utility Companies Financial data for all funds through which services are provided by the City have been included in this report. As required by GAAP, these financial statements present the City (the primary government) and its component units (entities for which the government is considered to be financially accountable). Blended component units (although legally separate entities) are in substance part of the government's operations, and so data from these units are combined with data of the primary government. The City has one component unit, the San Luis Obispo Capital Improvement Board, which provides financing for the construction and acquisition of City facilities. The Board is comprised solely of members of the City Council. Activities of the Board are accounted for in the applicable City governmental or enterprise funds. Budgetary Policy and Control Budgets are legally adopted annually by the City Council by resolution, and are prepared for each fund in accordance with its basis of accounting. As provided under City Charter, the City Manager is responsible for preparing the budget and for its implementation after adoption. viii TRANSMITTAL MEMORANDUM Since the City uses a two -year budget, operating appropriations not expended during the first year may be carried forward into the second year for specific purposes with the approval of the City Manager. (When applicable, these amounts are shown as assigned for subsequent year expenditures in the financial statements.) At the end of the final year of the two-year plan, operating appropriations lapse unless they are encumbered by contract or purchase order. Multi-year budgets are adopted for capital projects as necessary. The City Council has the legal authority to amend the budget at any time during the fiscal year. The City Manager has the authority to make administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances. The City's budgetary policies are more fully described in Note 1 of the financial statements. Expenditure and budgeting detail is maintained by the City for each fund and department by program area at the line item level. Budgetary control is exercised through an on-line computerized system, which interfaces with the City's general ledger. The system maintains an ongoing record of budget balances throughout the year based on actual expenditures and unfilled purchase orders. Open encumbrances at year-end are reported as assignments of fund balance. It is the City's policy to maintain an unassigned fund balance in the General Fund of at least 20% of operating expenditures. As noted above, this policy objective has been achieved for 2014-15. The City maintains a similar policy for working capital balances in the water, sewer and parking enterprise funds. The Fleet Replacement Fund and the Information Technology (IT) Replacement Fund were added to the policy to maintain a minimum fund balance of at least 20% of the original purchase cost of the items accounted for in these funds. The goal has been met for these funds in 2014-15 with exception of the IT Replacement Fund. FACTORS AFFECTING FINANCIAL CONDITION The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates. Local Economic Environment Historically, the City has experienced a stable economy, largely insulated from economic downturns in other parts of the State or the nation due to major State and federal employers such as the California Polytechnic State University (Cal Poly), California Men’s Colony, California Department of Transportation (Cal Trans) District 5 offices, Regional Water Control Board and Camp San Luis. However, these entities have also faced budgetary pressures and reductions in the past few years that have affected the local economy. Employment. Employment in the San Luis Obispo County region has historically been stabilized by a large government presence and diversity. As noted above, the State has a major university, correctional facility and other regional offices located in the community. The County government and school districts are also major employers. Several of these entities have experienced job losses in the last few years due to reduction in State funding. However, these employers have begun to create new job opportunities as the economy recovers. Other major employers include a real estate investment firm, a regional bank, major hospital facilities, several software companies and Pacific Gas and Electric. ix TRANSMITTAL MEMORANDUM Unemployment rose sharply in the San Luis Obispo area in 2008-09 to over 10% due to the severe economic downturn commonly referred to as the “Great Recession.” The unemployment rate has declined as the economy has begun to recover and currently stands at 4.1% countywide as was reported by Beacon Economics Central Coast Forecast presented in November 2015. Key Revenue Sources. As the commercial, governmental, and cultural hub of San Luis Obispo County, the City is blessed with a diverse array of strong revenue sources. All of the City’s top three revenue sources, Sales Tax, Property Tax, and Transient Occupancy Tax (TOT), substantially exceed the per capita average for the County. Long-Term Financial Planning The City engages in a number of activities focused on long-term financial planning, including: Five Year Fiscal Forecast. Before the two-year budget process begins, the City Council reviews a Five Year General Fund Fiscal Forecast to help set the stage for long-term decision making. The purpose of the forecast is to identify the General Fund’s ability over the next five years – on an order of magnitude basis – to continue current services, maintain existing assets and fund new initiatives or acquire new capital assets. The 2015-20 forecast was completed in early December 2014, before the City Council considered the 2015-17 Financial Plan for adoption. It is available on the City’s web site at www.slocity.org. Further updates will be prepared and presented to the City Council in February and June 2016. Major City Goals. The City Council adopts Major City Goals as an integral part of the Financial Plan. These goals address the highest priority issues and community-wide concerns and needs. The Financial Plan is the City’s main tool for programming implementation of these goals, plans and policies by allocating the resources necessary to achieve them. The following is a brief summary of the five major City goals adopted by the Council as part of the 2013-15 Financial Plan. Detailed work programs were prepared for each of these and their status is updated three times each year through presentation to the Council. The final progress reports were presented to the City Council in September 2015 and are available on the city’s website. • Implement Comprehensive Strategies to Address Homelessness. In partnership with other entities. Encourage existing, improved, and expanded services (including advocating to the County and other organizations for delivery of case management, drug, alcohol, and detoxification services, and mental health services), support the establishment of a new homeless services center, and pursue good-neighbor, safety, and quality of life programs (including restrooms), using technology as appropriate. • Sustain Essential Services, Infrastructure, and Fiscal Health. Preserve public health and safety and provide essential services in line with residents’ priorities and sustain the City’s short and long term fiscal health by planning future revenues (including renewal of half percent sales tax or an alternative measure), while implementing contingency planning, efficiency measures, and cost containment strategies including implementation of the Compensation Philosophy and monitoring further pension and benefit issues. x TRANSMITTAL MEMORANDUM • Expand Bicycle and Pedestrian Paths. Improve connectivity and safety, including continued progress on Rail Road Bicycle and Pedestrian Safety Trail and Bob Jones Trail, and pursuit of other options contained in the Bicycle Transportation Plan. • Continue and Enhance Neighborhood Wellness Initiatives. Continue to support proactive code enforcement, pursue a residential rental inspection program, improve street cleanliness, increase public safety enforcement, and support neighborhood led initiatives. • Economic Development. Implement the adopted Economic Development Strategic Plan (EDSP) which includes an emphasis on head-of-household jobs, collaboration, and measureable outcomes. FINANCIAL CONDITION OVERVIEW Financial results for the year performed better than expected when compared to the budget estimates in virtually all areas of the City’s operations. For the General Fund, realized revenues were 2.9% more than the budget estimate while expenditure and other uses were $2.5 million or almost 4% less than expected in the budget forecast. The total General Fund balance increased by $3.7 million to $24.6 million. From this $60,181 are non- expendable and represent prepaid items; $303,126 are restricted for Debt service; $6.5 million is committed for General government programs and the net balance of the Half Percent Sales Tax; $12.4 million is assigned and includes $10.4 million for the 20% operating reserve (Contingency Fund); $5.2 million is classified as unassigned. Per City Council direction, and in conjunction with adopted Council policies; staff will provide a recommendation for the use of any Fund Balances in excess of the 20% reserves not budgeted with the 2015-2016 mid-year budget review. General Fund - Fund Balance June 30,2015 Nonspendable 60,181$ Restricted for: Debt service 303,126 Committed to: General government programs 6,570,959 Assigned to: Contingency fund (20% Minimum reserve)10,486,931 Development services 1,848,386 Safety fire 97,239 Unassigned 5,199,984 Total fund balance 24,566,806$ 1 For the Future: Continue to Focus on Sustainability Through the adoption of the 2015-17 Financial Plan, the City continues to move along the path of financial sustainability by strategically expanding existing city programs, reinvesting in critical infrastructure and proposing a 1 $1.9 million is available for allocation of the unassigned amount of $5.1 million. xi TRANSMITTAL MEMORANDUM few staffing adjustments to address the most pressing community priorities. The Capital Improvement Plan includes new and significant investment and reinvestment in critical infrastructure. Revenue Base Growth. After experiencing the deepest recession since the Great Depression, the local economy is progressing and major revenues are continuing the growth that was first realized in 2012-13. Sales tax (including the Half Percent Sales Tax Measure), Property Tax and Transient Occupancy Tax (TOT) account for 50% of all funding sources in the General Fund. All of these revenues are showing continuing growth over the past two years which is expected into the future. TOT revenues exceed their pre-recession peak. Another revenue source that is seeing significant growth is development review fees. Fueled by strong private development occurring within the community, the revenue levels are also approaching record levels in terms of amounts received and the level of annual growth. This growth trend is also expected to continue at varying levels over the next five years, though the City should be cautious about being overly optimistic and taking on long term costs associated with potentially fluctuating revenue sources. Containment of Operating Costs. The City’s efforts to control costs have been successful and are ongoing. For example, prior negotiations led to concessions by all employee groups resulting in ongoing savings in the General Fund of $2.6 million in the General Fund and $3.1 million across all funds. The City also implemented 2nd and 3rd tier retirement benefit programs which now constitute 13% of the City’s contribution for current employees. These actions have been instrumental in helping the City contain current costs and long-term liabilities related to retirement benefit programs. Since 2013-14 the City Council has approved lump sum prepayments against the safety side fund retirement liability in order to begin making significant reductions in the amount owed. The first was paid in May 2014 in the amount of $935,000; the second was approved and was paid as part of the 2014- 15 budget in the amount of $300,000. The 2015-16 budget has an approved amount of $750,000. These actions along with growth in CalPERS investments has meant that the portion of the City’s funded pension system for Miscellaneous Employees has increased from 62% to 66%. The funded status for Safety Employees was not available at the time that these financial statements were being finalized. Infrastructure and Facilities Maintenance. The estimated cost of adequately maintaining, repairing or replacing existing General Fund facilities, infrastructure and equipment exceeds $10 million annually. This excludes any enhancements or “betterments.” To place this in context, General Fund contributions to the Capital Improvement Program (CIP) for the 12 year period ending in 2006-07 averaged about $3.8 million annually. The budget for the General Fund’s contributions to the CIP was reduced to $1.7 million for 2010-11. It then increased to $3.4 million the following year and in 2012-13 the General Fund contributed nearly $3.5 million. In 2013-14, that amount grew to nearly $7.3 million with the addition of $2.0 million from one-time monies taken from the General Fund reserve amount that exceeds the minimum 20% level. In 2014-15, the General Fund contribution was $2.4 million with an additional $7.5 million coming from grant sources and $7.8 million coming from tax-exempt debt proceeds. These figures do not include the General Fund support of the Capital Improvement Program that occurs in the form of annual debt service payments that approximate $3.0 million per year. The City Council has indicated through the adoption of budget policies that an adequate CIP to maintain existing facilities will continue to be a priority. xii TRANSMITTAL MEMORANDUM - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 General Fund Transfers to Capital Improvement Fund Ongoing Commitment to Half Percent Sales Tax Measure Priorities (Essential Services Measure) The City remains committed to addressing the priorities identified by the community as established through the budget process, such as public safety, senior services, code enforcement, neighborhood street paving, open space preservation, traffic congestion relief and flood protection. The following summarizes how the Half Percent Sales Tax Measure funds were used during 2014-15. Total Half Percent Sales Tax Measure expenditures during 2014-15 were $11.4 million (including encumbrances and carryovers); the remaining balances of these resources are designated for future year expenditures. A more detailed schedule of Half Percent Sales Tax Measure sources and uses is provided in the Financial Section of this report. xiii TRANSMITTAL MEMORANDUM Operating Programs CIP Total Infrastructure Maintenance -$ 2,944,480$ 2,944,480$ Traffic Congestion Relief 91,295 47,085 138,380 Preservation of Essential Services Public Safety 1,360,288 534,937 1,895,225 Maintenance Services 810,202 557,662 1,367,864 Neighborhood Code Enforcement 277,121 277,121 Total Preservation of Essential Services 2,447,611 1,092,599 3,540,210 Open Space Preservation 59,426 2,687 62,113 Total 2,598,332$ 4,086,851$ 6,685,183$ Half Percent Sale Tax Measure Revenues & Uses Summary Revenues: Prior years revenue 43,012,498$ Revenue for 2014-15 7,136,297 Total Revenues 50,148,795 Uses: Prior years uses (36,325,235) Current Year Uses (6,685,183) Total Uses (43,010,418) Half Percent Sale Tax Measure funding available for future year expenditures 7,138,377 Encumbered or designated for carryover for future year expenditures (4,712,098) Net available for future year appropriations 2,426,279$ Half Percent Sales Tax Measure Expenditures 2014-15 1 RELEVANT FINANCIAL POLICIES The City of San Luis Obispo has adopted a comprehensive set of financial policies to provide guidance for all fiscal activities and resource allocation decisions. Although the policies cover virtually every aspect of financial management, several of these policies are particularly relevant to an understanding of the City’s financial performance in 2014-15. Debt Administration Policies The City’s Capital Financing and Debt Management policies contain general guidelines for refinancing of outstanding debt. These guidelines call for periodic review of all outstanding debt to determine refinancing opportunities, particularly to create economic benefit such as lower debt service payment or reduction of principal. Information on the City’s outstanding debt issues and other long-term liabilities is provided in Note 6 in the notes to the financial statements. The City received (December 2014) affirmation from nationally recognized statistical rating organization Fitch Ratings that City bond ratings are “AA” and “AA+”, and the rating outlook is stable. Fitch Ratings’ long term credit ratings are assigned on an alphabetic scale from AAA to D. The bond rating AA means that the City’s investment 1 From this amount Council allocated $2,144,344 in the 2015-16 budget. Recommendation regarding use of remaining $281,935 will be presented after review by the Revenue Measure Oversight Commission. xiv TRANSMITTAL MEMORANDUM grade is “quality”. The City’s 2006, 2009 and 2012 Lease Revenue Bonds are rated AA, and the City’s implied General Obligation bond rating is AA+. At this time, the City of San Luis Obispo has no general obligation debt. In reaching its decision, Fitch Ratings’ analysts lauded the City’s “excellent financial management.” The analysis noted factors that led to their conclusion including (1) active budget monitoring by the City Council and staff, (2) comprehensive financial policies, and (3) the use of long-term budget planning to provide a solid framework for managing through unexpected budgetary challenges during the economic downturn. Fitch analysts noted that the City has successfully implemented cost control measures that included shifting employee pension contributions to employees thereby sharing responsibility while also avoiding across-the-board pay increases. The City’s sparing use of bonded debt was also highlighted. Budgetary Policies The City of San Luis Obispo has a policy that requires the adoption of a balanced budget over the two-year period of the Financial Plan. This means that operating revenues must fully cover operating expenditures, including debt service. Additionally, ending fund balance (or working capital in the enterprise funds) must meet minimum policy levels. Under this policy it is allowable for total expenditures to exceed revenues in a given year but only when fund balance is used to pay for capital improvement plan projects or other “one-time,” nonrecurring expenditures. Fund Balance and Reserve Policies The City’s policies recognize the importance of long-range planning in managing the City’s fiscal affairs in order to provide for stable operations, promote more orderly spending patterns, and assure the City’s long-term fiscal health. The reserves contained in the General Fund and Enterprise Funds play a pivotal role in this strategy. The reserve policies call for a minimum fund balance of at least 20% of operating expenditures in the General Fund and a working capital level of 20% of operating expenses in the Water, Sewer, and Parking Enterprise Funds. The policies also require the Fleet Management and Information Technology Replacement Funds to provide for the timely replacement of vehicles and equipment as well as IT equipment and software. Pension and Other Post-Employment Benefits Pension Obligations. The City contributes to the California Public Employees’ Retirement System (CalPERS), both agent multiple-employer and cost-sharing public employee defined benefit 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 provision and all other requirements are established by State statute and City ordinance. The amount of the City’s required annual contribution is determined actuarially and is reported to the City via the Annual Valuation Reports provided by CalPERS for each retirement plan. It is the policy of the City to fully fund the annual contribution to ensure that the plan will be able to fully meet its obligation to retired employees on a timely basis. As part of its cost reduction strategy, the City has implemented 2nd Tier and the state mandated 3rd tier retirement benefit programs for new hires while also requiring all employees to pay at least the full amount of the member share of the annual retirement contribution. Members of the Police Officers Association contribute 3% of pay toward the cost of the City’s share of the annual required contribution. Starting with FY 2015-16, public agencies are billed a contribution rate as a percentage of payroll plus lump sum dollar payment xv TRANSMITTAL MEMORANDUM toward the City’s unfunded liability. Prepaying the City’s unfunded liability should reduce overall annual costs depending on whether actuarial approved actuarial assumptions are realized and are not adjusted by the CalPERS’ Board. Other Post-Employment Benefits (OPEB). The City’s primary OPEB cost obligation is for retiree health benefits under its election to participate in the CalPERS Health Benefit Program under the “unequal contribution option.” When the City joined the CalPERS health plan in 1993, it immediately experienced an increase in the plan choices available along with a significant reduction in rates. And due to CalPERS purchasing power, the City has continued to experience competitive health care rates since then. However, as a condition of joining the CalPERS health program, the City agreed to contribute the minimum amount required by law per month towards retiree health care coverage for both active and retired employees. This allows retired employees to purchase health insurance at the same rate offered to active employees. Additionally, the City has established certain post-retirement health care benefits available to executive management employees appointed prior to August 2000. For the six former employees, one-half of the retiree health insurance premiums are paid by the City if they elect to remain members of the City's group health plan. This provision ceases upon the death of the retired employee or upon the retired employee reaching age 65. These OPEB benefits were financed on a pay-as-you-go basis in the past. As directed by Council in May 2008, the City began fully pre-funding the OPEB obligation via an irrevocable trust in 2008-09. In 2015-2016, the City will be making a payment of $250,000 towards the OPEB liability in addition to the annual required contribution. Additional information on the City’s retirement and post-employment benefits can be found in Note 7 in the notes to the financial statements. MAJOR INITIATIVES The City continued its efforts on a number of significant initiatives in 2014-15 which had a beneficial effect on fiscal health and quality of life. Fiscal Sustainability and Responsibility An organizational focus continued for Fiscal Sustainability and Responsibility into 2015-16 fiscal year as the City adopted an Other Important Objective to sustain the City’s short and long-term fiscal health, preserve public health and safety in line with residents’ priorities and with a focus on the reduction of unfunded liabilities. Key elements of the City’s Fiscal Responsibility Philosophy include: • Continuing emphasis on effectiveness and efficiency of the City organization. • Identify and address long-term liabilities that are important to the City’s fiscal sustainability through shared responsibility of retirement benefits between employees and the City. • Increase transparency related to labor negotiations and employee compensation matters. • Investments aligned with community needs and priorities. • Diverse revenue sources aligned with expenditures and community priorities. • Continuing to closely review and monitor the City’s fiscal condition. xvi TRANSMITTAL MEMORANDUM Two initiatives in this area are particularly worth noting: Monitoring of the City’s Fiscal Condition. A presentation was made to the City Council in February and April 2015 as part of the City’s budget process to prioritize and create a strategy regarding the use of one-time funding. Based on community feedback and adopted policies, the City Council prioritized the future use of one-time funding as follows: 1) pay down CalPERS Safety Pool 2) pay down OPEB liability 3) invest in roads and 4) replace equipment. This key strategic financial action continues the City’s progress in addressing long term liabilities and key infrastructure and equipment needs. In 2013-14, the City made a prepayment against its unfunded retirement liabilities in the amount of $935,000. A second prepayment in the amount of $300,000 was made in July 2014. In preparation for the changes in pension reporting that are required by Governmental Accounting Standards Board Statement No. 68, the City prepared a draft Changes in Net Position document for an interim period during 2013-14 in order to determine what effect this reporting change would have on the City’s net position. While the impact was significant, the City maintained and continues to have significant margin of assets that are greater than liabilities after the inclusion of the unfunded liability in the City’s balance sheet. The City Council took a further step to monitor both the cost and liability trends that relate to retirement programs and will continue to implement the City Council adopted policy to prepay unfunded liabilities as financial conditions allow for this to occur. Local Sales Tax Measure. In 2006 voters approved Measure Y, the Essential Services Measure, adding a half-percent local sales tax which would have sunset on March 31, 2015 unless reauthorized by the voters at a general election prior to that time. The added revenue from Measure Y funding supported major improvements and operations in key areas identified by the community. In 2013 the City convened a citizen’s committee that reviewed the City’s stewardship of Half Percent Sales Tax Measure and recommended to the City Council that a ballot measure should be drafted and placed before the voters at the November 2014 election. The local half-percent sales tax revenue was approved by City voters with 70% of the vote. As part of Measure G, the REOC was established to review, report, and makes recommendations to the City Council regarding the revenue and expenditures of the City's voter-approved general purpose, half-percent sales tax. The REOC consists of five members who must be residents and registered voters of the City. Economic Development Strategic Plan The City’s 2012 Economic Development Strategic Plan (EDSP) provides a prioritized list of strategic actions aimed at overcoming barriers to job creation and nurturing the conditions, relationships, and resources that enable and encourage the private sector to create head of household jobs on a consistent basis while continuing to support the broader economy of the City. To create and implement these efforts, the EDSP identified the City’s fee program and its lack of infrastructure in key areas as barriers to overcome, and is in the process of implementing strategies to improve the economic environment for job creation in the City. The EDSP builds on the San Luis Obispo County Economic Strategy, which identified five industry clusters with the greatest potential to drive local and regional economic prosperity, and job creation. The EDSP focuses on partnerships and collaborative efforts with community partners including the Economic Vitality Corporation, the Chamber of Commerce, the Small Business Development Center, California Polytechnic State University and Cuesta College. xvii TRANSMITTAL MEMORANDUM In 2013-14, the City implemented an important component of the strategic plan by holding a series of study sessions with the City Council regarding alternatives available for financing new infrastructure projects in the City. The project resulted in several recommendations that will be implemented in coming years, and provided a “primer” to be used as a resource for decision makers when considering future decisions about infrastructure financing. There are two major projects on the horizon that will set the stage for important investments in City infrastructure in the future. These include the update to the City’s impact fee programs following the adoption of the Land Use and Circulation Element update, and the second is the creation of a method to prioritize and enable City investment in infrastructure projects that have a public benefit but might not otherwise happen without City action. Downtown Development Projects The 2014-2015 fiscal year saw the commencement of significant development projects in the Downtown. The primary project was Chinatown and will include retail shops, a hotel, and residential units. The first phase of the project is expected to be completed in November 2016 and will provide retail shops that will further enliven Monterey Street. AWARD FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United States and Canada (GFOA) has awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for our CAFR for the fiscal year ended June 30, 2014. The Award Program The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of State and local government financial reports. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. This report must satisfy both U.S. generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement each year since 1984. We believe our current CAFR continues to conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA to determine its eligibility for another certificate. Value of Program Participation. There are a number of benefits to participating in these programs beyond simply receiving recognition for our efforts. For example, by striving to meet program standards and goals, the City produces better reports. Additionally, as part of the review process, comments for improvement from other municipal finance professionals who review our reports from a “fresh” perspective are received. The City believes that this results in continuous improvements in reporting our financial results to elected officials, staff and other interested parties such as bondholders, credit agencies and the public at-large. ACKNOWLEDGMENTS The preparation and development of this report would not have been possible without the year-round dedication of the Finance Division staff and their special efforts, working in conjunction with the City's independent auditors, to produce this document. xviii xx  DIRECTORY OF OFFICIALS AND ADVISORY BODIES CITY COUNCIL Jan Howell Marx Mayor John Ashbaugh Vice-Mayor Carlyn Christianson Council Member Dan Carpenter Council Member Dan Rivoire Council Member ADVISORY BODIES Architectural Review Commission Bicycle Advisory Committee Construction Board of Appeals Cultural Heritage Committee Housing Authority Human Relations Commission Jack House Committee Mass Transportation Committee Parks and Recreation Commission Personnel Board Planning Commission Promotional Coordinating Committee Revenue Enhancement Oversight Commission Tourism Business Improvement District Board Tree Committee APPOINTED OFFICIALS AND DEPARTMENT HEADS Appointed Officials Katie Lichtig City Manager J. Christine Dietrick City Attorney Department Heads Wayne Padilla Director of Finance & Information Tech. Michael Codron Assistant City Manager Garret Olson Fire Chief Monica Irons Director of Human Resources Derek Johnson Director of Community Development Daryl Grigsby Director of Public Works Carrie Mattingly Director of Utilities Shelly Stanwyck Director of Parks & Recreation Keith Storton Acting Police Chief   xxi MISSION STATEMENT SAN LUIS OBISPO STYLE QUALITY WITH VISION WHO ARE WE? People Serving People  A team that puts high value on each citizen it serves.  Providers of programs that meet basic service needs of each citizen.  Enhancers of the quality of life for the community as a whole. WHAT DO WE STAND FOR? Quality in all Endeavors – Pride in Results  Service to the community – the best – at all times.  Respect – for each other and for those we serve.  Value – ensuring delivery of service with value for cost.  Community involvement – the opportunity to participate in attaining the goals of the City. WHERE ARE WE GOING? Into the Future with a Design  Planning and managing for levels of service consistent with the needs of the citizens.  Offering skills development and organizational direction for employees in order to improve the delivery of municipal services.  Developing sources of funding and establishing a sound financial management program which will result in fiscal independence and flexibility in the delivery of City services.  Providing the residents of the City with accurate and timely information on issues which affect them, and encouraging the full utilization of City services.  Promoting the City as a regional trade, recreational and tourist center and improving the quality of life for residents and visitor. ORGANIZATIONAL VALUES We, as an organization, embrace opportunities to improve our services and the quality and effectiveness of our relationships with the community and our teams. The following values guide and inspire our efforts. Shared Vision, Mission and Goals We have a sense of common purpose and direction pursued with passion and translated into concrete actions. Service We are dedicated to the best use of resources to fulfill identified community goals and needs. Leadership and Support We recognize that the ability to lead can be found at all levels and that to create an environment to succeed requires leading by example. Communication We foster open and clear discussion that encourages the willingness to speak up and to listen, within a framework of respect and understanding. Team Players We encourage effective working relationships within and between departments and the public to address issues and achieve valuable results. Honesty, Respect and Trust We honor commitments, acknowledge legitimate differences of opinion and accept decisions reached with integrity. Initiative and Accountability We take personal responsibility to do what needs to be done and report the results in a straightforward manner. Innovation and Flexibility We are open to change and willing to try new ways to fulfill the organization’s vision, mission, and goals more effectively. xxii Employee Development and Recognition We encourage and support each employee to improve relevant job skills and celebrate personal and team accomplishments. Stewardship and Ethics We promote public trust by using City resources wisely, and through consistent fulfillment of these values. xxiii ORGANIZATION OF THE CITY OF SAN LUIS OBISPO CITIZENS Patrol Fire, Medical & Haz Mat Engineering Water Long Range Planning Traffic Safety Emergency Response Transportation Sewer Development Review Investigations Hazard Prevention Creek & Flood Protection Utilities Resource Building & Safety Neighborhood ServicesFire Inspections Maintenance Services: Conservation CDBG Administration Animal Regulation Disaster Planning Streets, Parks, Bldgs Whale Rock Reservoir Housing Recreation Programs Recruitment Budget Natural Resources Ranger Services Labor Relations Accounting & Revenue Economic Development Park Planning Fair Employment Information Technology Cultural Activities Golf Course Risk Management GIS Management City Clerk Services Public Art Human Relations Support Services General Administration Appointed by the City Council Dept Appointed by the City Manager ADVISORY BODIES CITY ATTORNEY CITY MANAGER MAYOR AND CITY COUNCIL Public WorksFirePolice Utilities Community Development Administration Finance & Information Tech Human Resources Parks & Recreation xxiv FINANCIAL SECTION 2  The Honorable City Council of the City of City of San Luis Obispo, California Page 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Luis Obispo, California, 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 16 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 Requirement Supplementary Information Accounting principles generally accepted in the United States of America require that management's discussion and analysis and required supplementary information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of the 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, Half Percent Sales Tax Measure funding summary schedules on pages 105 through 107, combining and individual nonmajor fund financial statements and schedules on pages 114 through 128, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Half Percent Sales Tax Measure funding summary schedule and combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with Management’s Discussion and Analysis The following provides a narrative overview and analysis of the financial activities of the City of San Luis Obispo (City) for the 2014-2015 fiscal year ending June 30, 2015. It should be read in conjunction with the accompanying transmittal memorandum and the basic financial statements. Financial Highlights In the 2014-15 fiscal year the City adopted two Governmental Accounting Standards Board new GASB statements of financial accounting standards related to pension activities. • Statement No. 68, “Accounting and Financial Reporting for Pensions—an amendment of GASB Statement No. 27,” and • Statement No. 71, “Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68”. GASB Statement No. 68 establishes standards of accounting and financial reporting, but not funding or budgetary standards, for the City’s defined benefit pension plans. This Statement replaces the requirements of prior GASB statements impacting accounting and disclosure of pensions. The significant impact to the City of implementing GASB Statement No. 68 is the reporting of the City’s unfunded pension liability on the full accrual basis of accounting in the government-wide financial statements. There are also new note disclosure requirements and supplementary schedules required by the Statement. The measurement date for the pension liabilities is as of June 30, 2014. This date reflects a one-year lag in the release of actuaries from CalPERS and was used so that these financial statements could be issued in a timely manner. Activity (i.e. contributions made by the City) occurring during 2014‐15 fiscal year are reported as deferred outflows of resources in accordance with Statement No. 71. The City did not reflect these pension standards in the 2014 results because the necessary actuarial information from the California Employees' Retirement System was not provided for the prior years presented. The following outlines financial highlights for the year, which are detailed in the table on page 8 of the MD&A. • The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows at June 30, 2015 by $269 million (net position). The City’s unrestricted net position was negatively impacted this fiscal year with the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions. More information on the City’s plans can be found in Note No. 7 on pages 63-77 of this report. • Total city-wide assets increased by approximately $26.7 million or 6.0%. In the governmental activities, amounts receivable from various sources increased by $1.9 million; cash and investment balances grew by $8.1 million or 26.0%; prepaid expenses decreased by $2.2 million and Cash Held with Fiscal Agent decreased by $2.5 million due to the Debt Services Fund holding a $2.5 million deposit for a workers’ compensation and general liability payment at June 30, 2014. 4 Management’s Discussion and Analysis • In business-type activities, amounts receivable increased by $318,000 while cash and investment balances grew by $5.8 million or 11.0%. City-wide liabilities increased by approximately $114.2 million during the fiscal year. This increase is due primarily to the net pension liability of $113.2 million the City was required to record with the implementation of GASB Statement No. 68. Governmental activities experienced an increase of $98.5 million due primarily to the net pension liability of $93.5 million, and a $4.8 increase in long-term liabilities as a net result with the acquisition of $7.5 million of bonds issued for the Los Osos Valley Road/intersection project. Business-type activities saw a decrease in long term liabilities of $2.6 million, and an increase in net pension liability of $19.7 million. • The City’s governmental funds altogether reported combined ending fund balances of $47 million. Approximately $34.6 million or 73.6% of this total amount is not available for new spending because it represents amounts that are: 1) restricted for debt service, 2) grant obligations, 3) prepaid insurance obligations, or 4) is already committed to specific programs such as impact fee programs and general capital outlay. From this amount $5.03 million is assigned to meet expenses in subsequent years in the form of purchase order encumbrances and unspent appropriations that have been rolled over into the 2015-16 fiscal year in accordance with the City’s budget policies. • The total General Fund balance increased by $3.7 million to $24.6 million. This reflects the steady increase in revenues over the prior year and greater than expected expense savings. After the adjustments to reflect amounts committed to the Half Percent Sale Tax Measure reserve ($2.4 million); debt service reserve ($303,000); purchase encumbrances and other future expenses ($1.5 million); designated reserves for Development Services and Fire ($1.9 million); mid-year budget approved reserves for insurance retro-payment and debt service ($2.6 million) and the amount required to be maintained to meet the 20% minimum reserve requirement, $5.2 million was available for allocation in the 2015-16 fiscal year budget. Certain amounts were already allocated in the 2015- 2016 fiscal year budget. A total of $1.9 million in reserves above the 20% policy level is available for programming. In accordance with City Council policy, staff will present a recommendation on an expense plan for the $1.9 million in excess reserves than is required by City policy with the 2015-16 fiscal year mid-year budget review in February 2016. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which have the following components: (1) government-wide financial statements, (2) fund financial statements and (3) notes to the financial statements. This report also contains required supplementary information (RSI) as well as other supplemental financial information. Government-wide Financial Statements. This set of statements is designed to provide readers with a broad overview of the City’s finances, in a manner similar to private-sector business reporting. The Statement of Net Position presents financial information on all the City’s assets/deferred outflows of resources and liabilities/deferred inflows of resources, with the difference reported as net position. Over time, increases or decreases in net financial position may serve as a useful indicator of whether the financial position of the City is 5 Management’s Discussion and Analysis improving or declining. However, the net position reported for 2014-2015 includes pension liabilities required under GASB Statement No. 68. This means that disclosed liabilities must be included in the City’s net fiscal position. The Statement of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported during the period when the underlying event giving rise to the change occurs, regardless of the timing of related cash flow. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods such as revenue pertaining to uncollected taxes. Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees or are required by grantor agencies or City policies to be accounted for in this fashion (business-type activities). The governmental activities include: (1) public safety, (2) transportation, (3) leisure, cultural and social services, (4) community development and (5) general government support services such as legal services, elections, human resources, and risk management, finance and information technology. The business-type activities of the City include: (1) water, (2) sewer, (3) parking operations and the (4) transit program. As required by U.S. Generally Accepted Accounting Principles (GAAP), these financial statements present the City (the primary government) and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are in substance, part of the government's operations and data from these units are combined with data of the primary government. The San Luis Obispo Capital Improvement Board (Board) is reported as a blended component unit in these statements. The Board provides financing for the construction and acquisition of City facilities. The Board consists of members of the City Council. Activities of the Board are accounted for in the applicable City governmental or enterprise fund. Separate financial statements are not prepared for the San Luis Obispo Capital Improvement Board. The City has no component units that require discrete presentation in accordance with GASB standards. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: (1) governmental funds, (2) proprietary funds and (3) fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information reflects financial sources available in the near future to finance the City’s programs. 6 Management’s Discussion and Analysis Because the focus of governmental funds is narrower than that of the government-wide financial statements; it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenses, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains several individual governmental funds organized according to their purpose (general, special revenue, debt service and capital projects). Information is presented in the governmental funds balance sheet and in the governmental funds statement of revenues, expenses and changes in fund balances. The General Fund, Capital Outlay Fund, and Transportation Impact Fee Fund are considered to be major funds. Data from the major governmental funds are combined into a single, aggregated presentation. Individual fund data for each of the non- major governmental funds is provided in the form of combining statements in the supplementary information section in this report. Of the major funds, the City adopts an annual appropriated budget for all funds. A budgetary comparison statement has been provided as required supplementary information to demonstrate compliance with the budget. Budgetary information for non-major governmental funds with annual budgets has been provided with the fund financial statements in the supplementary information section in this report. During the 2014-2015 fiscal year, the City implemented the new GASB Statement Nos. 68 and 71. Proprietary Funds. Proprietary funds are generally used to account for services for which the City charges customers; either outside customers or internal units/divisions of the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The only type of proprietary fund the City maintains is enterprise funds. The Water, Sewer, Parking and Transit Funds are presented as business-type activities in the government-wide financial statements. The City considers all four of its enterprise funds to be major funds. Fiduciary Funds. Agency funds are the only type of fiduciary funds maintained by the City. These are used to account for resources held for the benefit of parties that are not a part of City government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The Agency Funds are presented with the fund financial statements in the supplementary information section. Notes to the Financial Statements. The notes provide additional information that is essential to the reader for a full understanding of the data provided in the government-wide and fund financial statements. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents required supplementary information including budgetary comparison schedules, reporting of Half Percent Sale Tax 7 Management’s Discussion and Analysis Measure and more detailed information concerning the City’s net pension liability, schedule of contributions to the pension plan and progress in funding its obligation to provide other post-employment benefits (OPEB). Statistical Information. The statistical section presents detailed information as a context for understanding what information in the financial statements, notes disclosures, and required supplementary information indicates about the City’s overall financial health. Government-wide Overall Financial Analysis Statement of Net Position. Changes in net position over time may serve as an indicator of a government’s financial position. For the City, net position and deferred outflows of resources were greater than liabilities by $269 million at June 30, 2015. The following is the condensed net position for 2013-2014 and 2014-2015 fiscal years. CONDENSED STATEMENT OF NET POSITION FY 2013-14 & FY 2014-15 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 Current and other assets 52,971,289$ 47,571,292$ 67,558,392$ 61,379,987$ 120,529,681$ 108,951,279$ Capital assets 181,023,421 169,371,611 178,491,630 175,000,731 359,515,051 344,372,342 Total assets 233,994,710 216,942,903 246,050,022 236,380,718 480,044,732 453,323,621 Total Deferred Outflows of Resources 8,648,893 1,785,745 231,299 10,434,638 231,299 Current liabilities 8,415,818 8,247,200 5,181,918 6,525,654 13,597,736 14,772,854 Noncurrent liabilities 124,396,075 26,079,726 71,048,967 53,954,762 195,445,042 80,034,488 Total liabilities 132,811,893 34,326,926 76,230,885 60,480,416 209,042,778 94,807,342 Total Deferred Inflows of Resources 10,496,291 1,916,717 12,413,008 - Net position: Net investment in capital assets 150,829,869 145,266,043 125,129,704 119,116,303 275,959,573 264,382,346 Restricted 2,350,838 4,825,662 2,261,213 2,248,979 4,612,051 7,074,641 Unrestricted (53,845,288) 32,524,272 42,297,248 54,766,319 (11,548,040) 87,290,591 Total Net Position 99,335,419$ 182,615,977$ 169,688,165$ 176,131,601$ 269,023,584$ 358,747,578$ Governmental Activities Business-Type Activities Total With the application of GASB Statement No. 68, the City restated the 2013-2014 fiscal year beginning net position for both governmental and business-type activities. The significant impact to the City of implementing Statement No. 68 is the reporting of the City’s unfunded pension liability on full accrual basis of accounting government-wide financial statements and more directly affecting the 2014-2015 fiscal year’ unrestricted net position. More information on GASB Statement No. 68 application can be found in Note 7. GASB Statement No. 68 does not change CalPERS policies or contribution rates or cash flow. 8 Management’s Discussion and Analysis The City’s total net position decreased in the 2014-2015 fiscal year by $89.7 million compared to the 2013-14 fiscal year. As mentioned in the prior paragraph, the implementation of GASB Statement No. 68 required the pension liability to be recorded in the government-wide financial statements, resulting in a negative unrestricted fund balance and reducing the total net position. The largest portion of the City’s net assets reflects its investment in capital assets (e.g. land, buildings infrastructure, machinery, and equipment), less any related outstanding debt used to acquire those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Information about changes in net position for the 2013-14 and 2014-15 fiscal years are summarized below. Reasons for the changes are discussed in the following sections for governmental activities and business-type activities. 2014-15 2013-14 2014-15 2013-14 2014-15 2013-14 Revenues: Program Revenues: Charges for services 12,334,078$ 10,940,086$ 44,009,188$ 41,594,436$ 56,343,266$ 52,534,522$ Operating grants and contributions 2,509,323 2,412,469 3,148,652 2,458,640 5,657,975 4,871,109 Capital grants and contributions 7,911,867 3,680,440 60,063 82,359 7,971,930 3,762,799 General Revenues: Sales taxes (Including 1/2 percent local Sale Tax)22,408,980 22,180,173 22,408,980 22,180,173 Property taxes 9,631,890 8,960,010 9,631,890 8,960,010 Transient occupancy tax 6,805,742 6,063,232 6,805,742 6,063,232 Utility users tax 5,211,207 5,345,342 5,211,207 5,345,342 Property tax in lieu of VLF 3,849,341 3,645,692 3,849,341 3,645,692 Other taxes and fees 4,993,285 4,779,570 4,993,285 4,779,570 Investment earnings 467,348 566,930 361,627 364,551 828,975 931,481 Miscellaneous and other 707,781 679,127 707,781 679,127 Total revenues 76,830,842 69,253,071 47,579,530 44,499,986 124,410,372 113,753,057 Program expenses: Public safety 26,881,732 29,651,702 26,881,732 29,651,702 Public utilities 27,260,25428,223,21627,260,254 28,223,216 Transportation 11,457,311 8,975,047 7,550,831 7,695,745 19,008,142 16,670,792 Culture and recreation 10,332,740 10,239,853 10,332,740 10,239,853 Community development 10,960,778 10,183,782 10,960,778 10,183,782 Interest on long-term debt 1,015,011 1,221,205 1,015,011 1,221,205 Total expenses 60,647,572 60,271,589 34,811,085 35,918,961 95,458,657 96,190,550 Increase (decrease) in net position before transfers 16,183,270 8,981,482 12,768,445 8,581,025 28,951,715 17,562,507 Transfers (329,452) (73,771) 329,452 73,771 - Change in net position before transfers 15,853,818 8,907,711 13,097,897 8,654,796 28,951,715 17,562,507 Net position - beginning of year 182,615,977 174,541,500 176,131,601 167,476,805 358,747,578 342,018,305 Prior year restatement (99,134,376) (833,234) (19,541,332) - (118,675,708) (833,234) Net position - end of year 99,335,419$ 182,615,977$ 169,688,166$ 176,131,601$ 269,023,585$ 358,747,578$ Governmental Activities Business-Type Activities Total SUMMARY OF CHANGES IN NET POSITION Governmental Activities. The City’s net position in the Governmental activities increased $15.9 million to $99.3 million at the end of the 2014-2015 fiscal year. The net effect is a decrease of $83 million. This decrease is due to the implementation of GASB Statement No. 68 in the 2014-2015 fiscal year, which restated beginning net position by ($99.6) million. This decrease was slightly offset by a $6.9 million increase in the change of net position. The City is 9 Management’s Discussion and Analysis continuing to see growth in its revenue base and realized savings in the General Fund above the level anticipated in the 2014-15 Budget. As part of the revenue growth trend, more private development is taking place which is generating significantly more revenues in the form of development-related impact and in-lieu fees which are held until needed for planned capital outlay. However, this growth must be taken in the context of increasing pressures of unfunded liabilities and GASB Statement No. 68 reporting requirements which reflect the net reduction in the City’s financial position. Top Governmental Activity Revenue Sources. As shown in the graph below, the City’s top five tax revenues accounted for almost 65% of total revenues, with service charges accounting for another 15%. Generally, revenues for 2014-15 fiscal year increased from the previous fiscal year. The following narrative addresses the significant variances in key revenues from the prior fiscal year: • Sales Tax. Sales Tax increased $228,800 or 4.48% • Property Tax. Property tax revenue increased $671,800 or 7.5%. • Transient Occupancy Tax (TOT). Increased $742,510 or 12.3% 10 Management’s Discussion and Analysis • Charges for Services. These revenues increased $1.4 million or 12.7%. An increase in building activities generated more permit and plan review revenues. • Capital Grants and Contributions. These revenues increased by nearly $4.3 million as a result of the construction of the Los Osos Valley Road/ interchange project. • Program Expenses: Governmental Activities. Program expenses increased by $375,983 or 0.62% over the prior fiscal year The following chart compares program revenues and expenses: Business-Type Activities. The City’s net position in Business-type activities increased $13.1 million to $169.7 at June 30, 2015 Revenue Sources: Business-Type Activities. Operating revenues for services reflect an increase of $2.4 million or 5.8% over the prior fiscal year. This reflects growth in service charges in some of the enterprise funds. Significant variances are as follows: 1. Water revenues. Total operating revenues increased $695,000. Revenues from the sale of water decreased by $884,000 or 4.7% as a consequence of the drought and State regulations about water saving. General water impact fees increased by $1.7 million compared to the prior year which are collected for infrastructure to support new development. 11 Management’s Discussion and Analysis 2. Sewer charges. The overall increase of $887,500 over the prior year includes $584,100 from development impact fees. 3. Parking Fees. In the 2014-15 fiscal year the Parking Fund received $852,825 for in-lieu payments from developers. No such payments were received in 2013-14. Program Expenses: Business Type Activities. Program expenses for the proprietary funds decreased by $1.1 million or 3.0% over the prior fiscal year. The decrease reflects the fact that each of the enterprise funds saw a reduction in their operating program costs. The Water and Sewer funds each saw a decrease in spending over the prior year of approximately $1.0 million in total due to a decrease in the cost of supplies and maintenance and a reduction of the share of the Cost Allocation Plan paid to the General Fund to compensate for General Fund supported services such as engineering, legal services, and accounting. While revenues exceeded expenses for nearly all of the business type activities, it is primarily related to development impact fees that cannot be used to fund on-going operations and must be used for their intended purpose: capital improvements, debt service and related activities to support new development. Financial Analysis of Governmental Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The following funds have been classified as either governmental or proprietary fund types. 12 Management’s Discussion and Analysis Governmental Funds. The focus of the City’s governmental funds is on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance serves as a useful measure of a government’s net resources available for spending at the end of the fiscal year. • As of June 30, 2015, the City’s governmental funds reported combined ending fund balances of $47.0 million, or an increase of $5.4 million compared to the prior fiscal year. The total fund balance of the governmental funds consist of the following: o Non-spendable fund balance of $60,181 represents prepaid items. o Restricted fund balance of $2,460,992 which have restrictions imposed by external parties or enabling legislation. Funds in this category include Debt Services fund and Supplemental Law Enforcement Funds. o Committed fund balance of $24,283,378, which has reserves for capital outlay, impact fees programs, general government programs, housing and the net balance of the Half Percent Local Sale’s Tax. o Assigned fund balance of $15,039,313, which includes the amounts to be used for specific purposes of the City but do not meet the criteria to be classified as restricted or committed. Funds in this category included Contingency funds (20% minimum reserve) and funds to be used for Development Services and Fire mutual aid support. o Unassigned fund balance of $5,199,902 which is available for spending in the future at the government’s discretion. Per City Council direction, and in conjunction with adopted Council policies, staff will provide a recommendation for the use of any Fund Balances in excess of the 20% reserves not budgeted with the 2015-2016 mid-year budget review. Major Governmental Funds. There are three major governmental funds: the General Fund, the Capital Outlay and the Transportation Impact Fee Fund. Changes in the General Fund are highlighted in the Financial Highlights section above. The following information highlights changes in the Capital Outlay and the Transportation Impact Fee Funds: Capital Outlay Fund. This fund was established to account for all of the City’s capital facility and infrastructure improvement program projects where the cost will be at least $25,000. Not counted in this fund are costs that are programmed into one or more of the following funds: (1) Parkland Development, (2) Transportation Impact Fees, (3) Open Space Protection, (4) Airport Area Impact Fees, (5) Fleet Replacement, (6) Affordable Housing, (7) Los Osos Valley Road Sub-Area Fees, (8) Information Technology Replacement and (9) Enterprise Funds. The Capital Outlay Fund relies primarily on resources provided by the General Fund and grants from the State and Federal government. At June 30, 2015 the Capital Outlay Fund had a total fund balance of $3.6 million. The entire amount of the fund balance has been committed to capital projects or is assigned to liquidate contracts and purchase orders. The fund 13 Management’s Discussion and Analysis balance decreased by $2.4 million over the prior fiscal year due to the fact that funding for projects received is spent incrementally as projects such as the Skate Park proceed to completion and a number of projects were in progress at June 30, 2015. From year to year, spending activity in the Capital Outlay Fund may show significant fluctuations depending on the phase of completion of the various capital projects in progress. Significant variances from the prior year include: 1. Grant revenues were approximately $5.9 million higher than the prior year. Grant revenues are received mainly as reimbursements for costs incurred for the LOVR (Los Osos Valley Road) interchange project. 2. Capital expenses increased by $6.8 million from the prior year. The increase is due in its majority to the completion of the Skate Park and the construction of the LOVR interchange projects. Transportation Impact Fee Fund. This fund was established to account for the activities related to construction projects that will be financed primarily with transportation impact fees. In 2015, this qualifies as a major fund as a result of the transactions that relate to the construction of the LOVR interchange project and the issuance of $7.6 million in revenue bonds Non-Major Governmental Funds. Non-major funds include (1) the Debt Service Fund, (2) the Los Osos Valley Road Sub-Area Fee Fund, (3) the Downtown Business Improvement District Fund, (4) the Tourism Business Improvement Fund, (5) the Gas Tax Fund, (6) the Transportation Development Act Fund, (7) the Community Development Block Grant Fund, (8) the Law Enforcement Grants Fund and (9) the Public Art Contributions Fund. These funds are presented in the basic financial statements in the aggregate. A significant number of these funds represent activity for capital projects. As of June 30, 2015, these funds had an aggregate fund balance of $9.9 million. Of this total, 78% ($7.8 million) is restricted for payment of debt service, other City programs, or specific future capital projects. The remaining balance of $2.2 million is assigned to expenses in subsequent years. More information about these aggregated non-major funds can be found in the combining and individual fund statements and schedules immediately following the required supplementary information. Proprietary Funds. The City’s four enterprise funds provide the same type of information found in the government- wide financial statements, but in more detail. Highlights of the annual activity for these funds have already been presented in the discussion of the business-type activities. General Fund Budgetary Highlights A detailed budgetary comparison schedule for the year ended June 30, 2015, is presented as required supplementary information following the notes to the financial statements. The final budget amounts include adjustments that were approved by the City Council at the February 2015 mid-year budget update. 14 Management’s Discussion and Analysis The following summarizes the original budget compared with the final budget for 2014-15: Budgetary Highlights General Fund Original Budget Final Budget Variance Revenues 59,138,299$ 62,071,072$ 2,932,773$ Expenditures 53,345,928 56,084,979 2,739,051 Other sources (uses)(8,979,514) (9,170,192) (190,678) Beginning fund balance 14,857,709 20,797,590 5,939,881 Ending fund balance 11,670,566$ 17,613,491$ 5,942,925$ As discussed below, differences between the original budget and the final amended budget reflect the following key changes: • Key revenue source estimates including Sales Tax, Transient Occupancy Tax (TOT) and subventions and grants were updated at the Financial Plan supplement and at Mid-Year (February 2015), resulting in an increase in overall budgeted revenues of almost $2.9 million or 5.0% over the original budget estimate. The remaining increase to the originally budgeted revenues is the result of budget adjustments presented and approved by the City Council at the mid-year budget update in February 2015. • The increase in the beginning fund balance results from the use of an estimate for the original budget and the use of the actual, audited amount for the final budget. Operating program increases resulted primarily from the carryover of unspent contractual obligations from the prior year, increases related to Mutual Aid program costs for the Fire Department ($130,672 for 2014-15) and the changes related to the Community Development Department’s use of excess revenues ($1.3 million in 2014-15) to fund development review costs to maintain timely responses per the California Government Code. The following table contains a comparison of actual results for revenues, expenses, and fund balance with the final budget for the General Fund. As the table shows, revenues exceeded the final budget by nearly $2.5 million, while expenses were below the final budget figure by $3.7 million. The net amount of other sources was less than budgeted by $737,000. The net result of these differences leads to the ending fund balance increasing by more than $6.9 million over the amount anticipated in the adjusted final budget. General Fund Final Budget Actual Positive (Negative) Variance Revenues 62,071,072$ 64,615,546$ 2,544,474$ Expenditures 56,084,979 52,434,653 (3,650,326) Other sources (uses)(9,170,192) (8,433,470) 736,722 Beginning fund balance 20,797,590 20,819,384 21,794 Ending fund balance 17,613,491$ 24,566,807$ 6,953,316$ Ending fund balance Nonspendable 60,181 60,181 Restricted 303,126 303,126 Committed 3,771,939 6,570,959 2,799,020 Assigned 12,432,556 12,432,556 Unassigned 13,841,552 5,199,985 (8,641,567) Total ending fund balance 17,613,491$ 24,566,807$ 6,953,316$ Budget -Actual Comparison 15 Management’s Discussion and Analysis Capital Assets and Debt Administration Capital Assets. Capital assets, including infrastructure, are those assets that are used in the performance of the City’s functions. As of June 30, 2015, the City’s investment in capital assets for its governmental and business type activities amounts to $359.5 million (net of accumulated depreciation). The investment in capital assets includes land, park improvements, buildings and improvements, vehicles and equipment, streets, bikeways, water, wastewater and storm drain systems. Capital Assets (Net of Depreciation) 201520142015201420152014 Nondepreciable capital assets 51,504,460$ 44,891,130$ 24,235,192$ 17,261,492$ 75,739,652$ 62,152,622$ Depreciable capital assets (net of accumulated depreciation ) 129,518,961 124,480,481 154,256,438 157,739,239 283,775,399 282,219,720 Total Capital Assets 181,023,421$ 169,371,611$ 178,491,630$ 175,000,731$ 359,515,051$ 344,372,342$ Governmental Activities Business-Type Activities Total Major capital asset expenses during the fiscal year include the following: • $1,043,000 for roadway sealing. • $10,009,000 for Los Osos Valley Road/US 101 interchanges construction work. • $1,772,000 for the completion of the Skate Park project. • $554,000 for the Downtown Remodel project. • $7.1 million for Water Resource Recovery Facility Energy Efficiency project • $482,000 in water line improvements. • $680,000 for the Calle Joaquin Lift Station • $713,500 for the Mobile Data Computers (MDC) for Safety • $1.1 million for I.T equipment replacement. • $1.1 million for fleet replacement. • $858,000 for facilities maintenance. Additional information on the City’s capital assets can be found in Note 5 to the basic financial statements. Long-Term Debt. At June 30, 2015, the City had $87.8 million in long-term debt outstanding as summarized below: Long- Term Debt 2015 2014 2015 2014 2015 2014 Revenue bonds 29,158,406$ 22,543,171$ 26,528,095$ 27,689,883$ 55,686,501$ 50,233,054$ Lease-purchase financing 1,035,145 711,622 1,035,145 711,622 Claims & Liabilities 2,371,519 - 2,371,519 Installment sale agreement 8,481,043 8,979,000 8,481,043 8,979,000 Compensated absences 2,693,512 2,465,248 624,544 562,540 3,318,056 3,027,788 Loans 766,092 850,775 18,559,952 19,446,946 19,326,044 20,297,721 33,653,155$ 28,942,335$ 54,193,634$ 56,678,369$ 87,846,789$ 85,620,704$ Governmental Business-Type Total Activities Activities This represents an increase of $2.2 million or 2.60% compared to the prior year. 16 Management’s Discussion and Analysis The California Government Code provides for a limit on debt secured by real property of 3.75% based on market value. The City’s debt management policy, however, sets a lower debt limit of 2% of assessed valuation. At June 30, 2015, the City did not have any general obligation debt subject to the limit. Additional information about the City’s long-term debt can be found in Note 6 to the basic financial statements. Economic Factors and Next Year’s Budgets and Rates On June 23, 2015, the City Council adopted the 2015-17 Financial Plan and concurrently approved 2015-16 Budget, with total appropriations of $123.12 million. Adequate resources are available to fund the proposed expenses. The City Council approved the use of projected reserves in excess of the 20% required minimum amount to pay for one- time expenses. The Financial Plan reflects the use of $750,000 to make a prepayment against the safety side fund retirement liability owed to the California Public Employees Retirement System; and $250,000 to make a prepayment to OPEB liability in 2015-16. Additional one-time funding was used to support several capital improvement projects in accordance with City Council priorities. Consistent with the City’s balanced budget policy, the ending unassigned fund balance meets the City’s policy minimum of 20% of operating expenses. Sales Tax. The local half-percent sales tax was reauthorized by City voters in November 2014 with over 70% of the vote. The local half-percent sales tax measure is projected to generate over $7.0 Million in 2015-16. With the approval of Measure G and the establishment of a citizen’s Revenue Enhancement Oversight Commission, the City Council is further supported through the body. The REOC reviews, reports and makes recommendations directly to the City Council regarding revenues and expenses of half-percent local sales tax. Utility Rates. The City Council approved an increase to the base fee (or minimum charge) as well as drought surcharge for the 2015-2017 financial plan to be effective on July 1, 2015. Sewer revenues remain stable and the City Council approved base rate increase of 4.6% in 2015-16 and 3.0 % increase in 2016-17 during the public hearing held on June 16th, 2015. Parking Fund. Significant changes will be affecting this fund in the next two years. The Garden Street Terrace China Town project will be under construction starting in the 2015-16 fiscal year. The second phase of Chinatown project is anticipated to be under construction. Both of these projects will constrain the parking supply. A study session on the delivery and funding of the Palm-Nipomo Parking Structure to add new supply to meet existing and future demand will occur in 2015-16. Construction of this additional parking structure could begin construction in the 2017-18 fiscal year. Requests for Additional Information This financial report is designed to provide a general overview of the City’s finances for all those with an interest in our finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Department of Finance & Information Technology, 990 Palm Street, San Luis Obispo, CA 93401. 17 BASIC FINANCIAL STATEMENTS 19  City of San Luis Obispo, California Statement of Net Position June 30, 2015 Governmental Activities Business-Type ActivitiesTotal Assets Cash and cash equivalents 8,371,759$ 15,046,640$ 23,418,399$ Investments 30,682,839 44,386,006 75,068,845 Taxes receivable 1,649,947 1,649,947 Accounts receivable 1,039,473 4,653,863 5,693,336 Accrued interest receivable 87,145 103,148 190,293 Due from other governments 7,166,852 1,107,522 8,274,374 Prepaid items and other assets 1,639,322 1,639,322 Cash held by fiscal agent 2,333,952 2,261,213 4,595,165 Nondepreciable capital assets 51,504,460 24,235,192 75,739,652 Depreciable capital assets (net of accumulated depreciation) 129,518,961 154,256,438 283,775,399 Total assets 233,994,710 246,050,022 480,044,732 Deferred Outflows of Resources Deferred pensions 8,648,893 1,578,581 10,227,474 Deferred amounts from refunding of debt 207,164 207,164 Total deferred outflows of resources 8,648,893 1,785,745 10,434,638 Liabilities Accounts payable 3,589,855 1,382,160 4,972,015 Accrued salaries 1,620,435 652,712 2,273,147 Deposits payable 31,680 31,680 Unearned revenue 114,970 114,970 Interest payable 85,560 305,299 390,859 Other liabilities 238,135 238,135 Noncurrent liabilities: Due within one year 2,766,863 2,810,067 5,576,930 Due in more than one year30,886,292 51,383,567 82,269,859 Net pension liability93,509,783 19,665,400 113,175,183 Total liabilities132,811,893 76,230,885 209,042,778 Deferred Inflows of Resources Deferred pensions 10,496,291 1,916,717 12,413,008 Net Position Net investment in capital assets 150,829,869 125,129,704 275,959,573 Restricted for: Debt service 2,333,952 2,261,213 4,595,165 Grant program 16,886 16,886 Unrestricted (53,845,288) 42,297,248 (11,548,040) Total net position 99,335,419$ 169,688,165$ 269,023,584$ The accompanying notes are an integral part of these financial statements. THIS PAGE INTENTIONALLY LEFT BLANK 20  City of San Luis Obispo, California Statement of Activities For the Fiscal Year Ended June 30, 2015 Functions/Programs Expenses Indirect Expense Allocation Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental activities: Public safety22,540,519$ 4,341,213$ 1,697,748$ 950,508$ $ Transportation 8,594,231 2,863,080 1,270,787 1,256,169 7,911,867 Culture and recreation 7,901,318 2,431,422 2,155,411 Community development 9,885,382 1,075,396 7,210,132 302,646 General government 11,667,330 (10,711,111) 518,839 437,380 Interest on long-term debt 1,015,011 Total governmental activities 61,603,791 - 12,852,917 2,946,703 7,911,867 Business-type activities: Water 17,128,041 20,446,731 Sewer 10,132,214 18,007,064 Parking 3,556,637 4,905,493 Transit 3,994,194 649,900 3,148,652 60,063 Total business-type activities 34,811,086 44,009,188 3,148,652 60,063 General revenues and transfers: General sales and use taxes Half Percent Sales Tax and use tax Property taxes Transient occupancy tax (TOT) Utility users tax Property tax-in-lieu of vehicle license fees Franchise taxes Business tax Unrestricted investment earnings Other taxes Transfers Total general revenues and transfers Change in net position Net position, beginning of year Prior year restatements Net position, beginning of year, as restated Net position, end of year Program Revenues     The accompanying notes are an integral part of these financial statements. 21  Governmental Activities Business-type ActivitiesTotal (24,233,476)$ $ (24,233,476)$ (1,018,488) (1,018,488) (8,177,329) (8,177,329) (3,448,000) (3,448,000) - - (1,015,011) (1,015,011) (37,892,304) - (37,892,304) 3,318,690 3,318,690 7,874,850 7,874,850 1,348,856 1,348,856 (135,579) (135,579) - 12,406,817 12,406,817 15,272,683 15,272,683 7,136,297 7,136,297 9,631,890 9,631,890 6,805,742 6,805,742 5,211,207 5,211,207 3,849,341 3,849,341 2,790,077 2,790,077 2,203,208 2,203,208 467,348 361,627 828,975 707,781 707,781 (329,452) 329,452 - 53,746,122 691,079 54,437,201 15,853,818 13,097,896 28,951,714 182,615,977 176,131,601 358,747,578 (99,134,376) (19,541,332) (118,675,708) 83,481,601 156,590,269 240,071,870 99,335,419$ 169,688,165$ 269,023,584$ Net Revenues (Expenses) and Changes in Net Position 22  City of San Luis Obispo, California Balance Sheet Governmental Funds June 30, 2015 GeneralCapital Outlay Transportation Impact Fee Other Governmental Funds Total Governmental Funds Assets Cash and cash equivalents 9,042$ 3,468,171$ 2,346,659$ 2,547,887$ 8,371,759$ Investments 18,044,854 6,923,650 5,714,335 30,682,839 Taxes receivable 1,649,947 1,649,947 Accounts receivable 489,554 440,566 930,120 Other receivables 109,353 109,353 Due from other governments 3,357,005 3,724,066 85,781 7,166,852 Due from other funds 3,412,891 3,412,891 Accrued interest receivable 50,201 5,004 16,992 14,948 87,145 Prepaid items 60,181 1,215,013 1,275,194 Cash held by fiscal agent 303,126 2,030,826 2,333,952 Total assets 27,486,154$ 7,197,241$ 9,287,301$ 12,049,356$ 56,020,052$ Liabilities and Fund Balance Liabilities: Accounts payable1,290,573$ 166,474$ 393,934$ 1,738,874$ 3,589,855$ Accrued liabilities1,560,175 13,717 46,543 1,620,435 Due to other funds 30,774 3,283,156 98,961 3,412,891 Unearned revenue 114,970 114,970 Other liabilities 37,825 200,310 238,135 Total liabilities 2,919,347 3,564,600 407,651 2,084,688 8,976,286 Fund balance: Nonspendable 60,181 60,181 Restricted for: Debt service 303,126 2,140,980 2,444,106 Law enforcement grant programs 16,886 16,886 Committed to: Affordable housing programs 2,601,882 2,601,882 Capital outlay 3,632,641 3,632,641 General government programs6,570,959 1,084,221 7,655,180 Impact fee programs 8,879,650 530,623 9,410,273 Open space programs 983,402 983,402 Assigned to: Contingency fund 10,486,931 10,486,931 Development services 1,848,386 2,606,757 4,455,143 Public safety - fire 97,239 97,239 Unassigned 5,199,985 (83) 5,199,902 Total fund balance 24,566,807 3,632,641 8,879,650 9,964,668 47,043,766 Total liabilities and fund balance 27,486,154$ 7,197,241$ 9,287,301$ 12,049,356$ 56,020,052$ The accompanying notes are an integral part of these financial statements. 23  City of San Luis Obispo, California Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position June 30, 2015   Total fund balance - governmental funds 47,043,766$ Capital assets at estimated historical cost 260,960,547 Accumulated depreciation (79,937,126) 181,023,421 Deferred outflows of resources reported in the Statement of Net Position 8,648,893 364,128 Lease revenue bonds28,556,715 Lease purchase financing1,035,146 Compensated absences2,693,511 Conservation loan766,092 Bond premium 601,691 Accrued interest payable85,560 (33,738,715) Net pension liability is not a current financial resource and, therefore, is not reported in the governmental funds. (93,509,783) Deferred inflows of resources reported in the Statement of Net Position (10,496,291) Total net position - governmental activities 99,335,419$ Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. Long-term liabilities, including related interest payable, are not due and payable in the current period and therefore are not reported in the funds. Other long-term assets are not available to pay for current period expenditures and therefore are not reported in the governmental funds. The accompanying notes are an integral part of these financial statements. 24  City of San Luis Obispo, California Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Fiscal Year Ended June 30, 2015 GeneralCapital Outlay Transportation Impact Fee Revenues: Sales and use tax - general15,272,683$ $ $ Sales and use tax - Half Percent Sales Tax7,136,297 Sales tax - Prop 172 409,590 Property tax9,631,890 Transient occupancy tax6,805,742 Utility users tax5,211,207 Property tax in lieu of VLF3,849,341 Franchise taxes2,790,077 Business tax2,203,208 Real property transfer tax298,191 Fines, forfeitures and penalties184,320 Use of money and property378,644 13,463 48,584 Subventions and grants1,278,374 7,506,887 350,172 Charges for services9,031,718 898,574 Miscellaneous134,264 63,791 Total revenues64,615,546 7,520,350 1,361,121 Expenditures: Current: General government10,459,658 Public safety24,056,077 Transportation2,969,111 Leisure, cultural and social services7,250,398 Community development7,605,168 Debt service: Principal84,682 Interest9,559 Capital outlay: Public safety246,640 Transportation9,894,279 3,856,367 Leisure, cultural and social services1,312,275 Community development General government 656,081 Total expenditures52,434,653 12,109,275 3,856,367 Excess (deficiency) of revenues over (under) expenditures12,180,893 (4,588,925) (2,495,246) The accompanying notes are an integral part of these financial statements. 25  Other Governmental Funds Total Governmental Funds $ 15,272,683$ 7,136,297 409,590 9,631,890 6,805,742 5,211,207 3,849,341 2,790,077 2,203,208 298,191 184,320 26,657 467,348 1,723,137 10,858,570 2,520,595 12,450,887 19,655 217,710 4,290,044 77,787,061 74,806 10,534,464 300,000 24,356,077 2,969,111 7,250,398 2,442,104 10,047,272 3,771,642 3,856,324 1,054,261 1,063,820 2,125,225 2,371,865 552,291 14,302,937 1,086,936 2,399,211 123,258 123,258 1,027,964 1,684,045 12,558,487 80,958,782 (8,268,443) (3,171,721) 26  City of San Luis Obispo, California Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds, continued For the Fiscal Year Ended June 30, 2015 Page 2 GeneralCapital Outlay Transportation Impact Fee Other Financing Sources (Uses): Proceeds from debt issuance$ $ 7,823,972$ Transfers in1,504,842 2,477,338 49,388 Transfers out(9,938,312) (300,863) (140,165) Total other financing sources (uses)(8,433,470) 2,176,475 7,733,195 Net change in fund balance3,747,423 (2,412,450) 5,237,949 Fund balance, beginning of year 20,317,179 6,045,091 3,641,701 Prior year restatements502,205 Fund balance, beginning of year, as restated 20,819,384 6,045,091 3,641,701 Fund balance, end of year 24,566,807$ 3,632,641$ 8,879,650$ The accompanying notes are an integral part of these financial statements. 27  Other Governmental Funds Total Governmental Funds 548,351$ 8,372,323$ 7,650,511 11,682,079 (1,632,191) (12,011,531) 6,566,671 8,042,871 (1,701,772) 4,871,150 11,666,440 41,670,411 502,205 11,666,440 42,172,616 9,964,668$ 47,043,766$ 28  City of San Luis Obispo, California Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-wide Statement of Activities and Changes in Net Position For the Fiscal Year Ended June 30, 2015 Total net change in fund balance - governmental funds 4,871,150$ Expenditures for capital outlay - governmental funds 16,809,029 Depreciation expense (5,103,332) 11,705,697 Loss on disposal of capital asset (53,887) 3,856,324 Acquisition of new financing (8,372,323) 15,367 33,442 (253,089) (228,263) Change in net pension liability 4,279,400 Total change in net position - governmental activities 15,853,818$ Change in other long-term asset Change in compensated absences Capital outlay net of depreciation expense and disposal Change in accrued interest on debt Change in unamortized discount/premium (netted with debt) Principal paid on long-term debt The accompanying notes are an integral part of these financial statements. 29  City of San Luis Obispo, California Statement of Fund Net Position Business-Type Activities – Enterprise Funds June 30, 2015 Water Sewer Parking Transit Totals Assets Current assets: Cash and cash equivalents 5,547,777$ 6,699,953$ 2,310,953$ 487,957$ 15,046,640$ Investments 16,367,733 19,767,736 6,810,854 1,439,683 44,386,006 Accounts receivable 2,182,478 2,453,069 18,146 170 4,653,863 Accrued interest receivable 38,132 45,682 15,978 3,356 103,148 Due from other governments 1,107,522 1,107,522 Total current assets 24,136,120 28,966,440 9,155,931 3,038,688 65,297,179 Noncurrent assets: Cash and investments held by fiscal agent1,639,406 58,630 563,177 2,261,213 Capital assets: Land 915,926 2,176,114 5,515,137 8,607,177 Public art 74,100 74,100 Infrastructure 96,258,042 73,972,142 29,494,909 199,725,093 Buildings and improvements 19,134,912 5,024,409 877,033 5,016,142 30,052,496 Equipment 3,861,786 4,237,024 403,173 7,633,780 16,135,763 Construction in progress 1,641,254 13,228,383 624,240 60,038 15,553,915 Total capital assets 121,811,920 98,638,072 36,988,592 12,709,960 270,148,544 Less accumulated depreciation (45,515,228) (29,047,816) (11,251,097) (5,842,773) (91,656,914) Capital assets, net of accumulated depreciation 76,296,692 69,590,256 25,737,495 6,867,187 178,491,630 Total noncurrent assets 77,936,098 69,648,886 26,300,672 6,867,187 180,752,843 Total assets 102,072,218 98,615,326 35,456,603 9,905,875 246,050,022 Deferred Outflows of Resources Deferred pensions 650,536 704,832 180,481 42,732 1,578,581 Deferred amounts from refunding of debt 207,164 207,164 Total deferred outflow of resources 857,700 704,832 180,481 42,732 1,785,745 Enterprise Funds The accompanying notes are an integral part of these financial statements. 30  City of San Luis Obispo, California Statement of Fund Net Position Business-Type Activities – Enterprise Funds, continued June 30, 2015 Page 2 Water Sewer Parking Transit Totals Enterprise Funds Liabilities Current liabilities: Accounts payable 379,794$ 644,406$ 118,129$ 239,831$ 1,382,160$ Accrued liabilities 310,478 247,862 76,517 17,855 652,712 Compensated absences 90,140 102,633 8,337 5,082 206,192 Deposits payable 31,680 31,680 Interest payable 161,843 47,726 95,730 305,299 Current portion of long-term debt 1,285,686 852,004 466,185 2,603,875 Total current liabilities 2,259,621 1,894,631 764,898 262,768 5,181,918 Noncurrent liabilities: Compensated absences 193,697 212,884 6,927 4,844 418,352 Lease revenue bonds 17,297,300 524,400 7,018,800 24,840,500 Bond premium 541,906 2,889 544,795 Installment sale agreement 7,932,297 7,932,297 State loan/note payable 4,188,347 8,358,054 5,101,222 17,647,623 Net pension liability 8,104,149 8,780,538 2,248,369 532,344 19,665,400 Total noncurrent liabilities 30,325,399 25,808,173 14,378,207 537,188 71,048,967 Total liabilities 32,585,020 27,702,804 15,143,105 799,956 76,230,885 Deferred Inflows of Resources Deferred pensions 789,883 855,808 219,140 51,886 1,916,717 Net Position Net investment in capital assets 53,190,617 51,923,501 13,148,399 6,867,187 125,129,704 Restricted: Debt service 1,639,406 58,630 563,177 2,261,213 Subsequent year expenditures 1,638,811 873,502 126,601 57,480 2,696,394 Committed: Rate stabilization fund 1,776,193 856,929 2,633,122 Contingency fund 4,175,416 1,540,988 5,716,404 Unrestricted 7,134,572 15,507,996 6,436,662 2,172,098 31,251,328 Total net position 69,555,015$70,761,546$20,274,839$9,096,765$ 169,688,165$ The accompanying notes are an integral part of these financial statements. 31  City of San Luis Obispo, California Statement of Revenues, Expenses and Changes in Fund Net Position Business-Type Activities – Enterprise Funds For the Fiscal Year Ended June 30, 2015 Water Sewer Parking Transit Total Operating revenues: Charges for sales and service17,761,926$ 17,138,586$ 3,529,257$ 649,414$ 39,079,183$ Impact fees2,471,502 852,232 3,323,734 Fines and forfeitures534,182 534,182 Other revenues137,736 10,485 853,019 1,001,240 Total operating revenues20,371,164 18,001,303 4,916,458 649,414 43,938,339 Operating expenses: Salaries and benefits2,852,010 3,027,243 883,662 214,334 6,977,249 Supplies and maintenance1,263,952 2,119,875 316,653 367,643 4,068,123 Contract services8,275,084 1,266,813 604,486 2,233,531 12,379,914 General government1,167,004 1,291,008 604,225 290,742 3,352,979 Depreciation2,700,098 2,057,221 645,860 887,944 6,291,123 Total operating expenses16,258,148 9,762,160 3,054,886 3,994,194 33,069,388 Operating income (loss)4,113,016 8,239,143 1,861,572 (3,344,780) 10,868,951 Nonoperating revenues (expenses) Interest 165,281 119,550 69,183 7,613 361,627 Grants 3,148,652 3,148,652 Interest expense (869,893) (370,054) (501,751) (1,741,698) Miscellaneous nonoperating revenues (expenses)75,567 5,761 (10,965) 486 70,849 Total nonoperating revenues (expenses)(629,045) (244,743) (443,533) 3,156,751 1,839,430 Income (loss) before transfers 3,483,971 7,994,400 1,418,039 (188,029) 12,708,381 and capital contributions Capital Contributions 60,063 60,063 Transfers (20,800) 287,314 64,338 (1,400) 329,452 Total contributions and transfers (20,800) 287,314 64,338 58,663 389,515 Change in net position 3,463,171 8,281,714 1,482,377 (129,366) 13,097,896 Net position, beginning of year 74,577,879 71,674,129 21,146,779 8,732,814 176,131,601 Prior year restatements (8,486,035) (9,194,297) (2,354,317) 493,317 (19,541,332) Net position, beginning of year, as restated 66,091,844 62,479,832 18,792,462 9,226,131 156,590,269 Net position, end of year 69,555,015$ 70,761,546$20,274,839$9,096,765$ 169,688,165$ Enterprise Funds The accompanying notes are an integral part of these financial statements. 32  City of San Luis Obispo, California Statement of Cash Flows Business-Type Activities – Enterprise Funds For the Fiscal Year Ended June 30, 2015 Water Sewer Parking Transit Total Cash flows from operating activities: Cash received from customers20,165,007$17,152,589$4,914,875$1,259,090$ 43,491,561$ Cash payments to suppliers for goods and services(9,421,946) (4,029,974) (943,953) (2,731,418) (17,127,291) Cash payments to General Fund for interfund services(1,167,004) (1,291,008) (604,225) (290,742) (3,352,979) Cash payments to employees for services (2,838,941) (3,097,163) (924,680) (214,350) (7,075,134) Other cash payments (26,027) (10,965) (36,992) Other cash receipts 75,567 31,788 486 107,841 Net cash provided by (used in) operating activities 6,812,683 8,740,205 2,431,052 (1,976,934) 16,007,006 Cash flows from noncapital financing activities: Operating grants received 3,148,652 3,148,652 Transfers from other funds 309,514 69,738 379,252 Transfers to other funds (20,800) (22,200) (5,400) (1,400) (49,800) Net cash provided by (used in) noncapital financing activities (20,800) 287,314 64,338 3,147,252 3,478,104 Cash flows from capital and related financing activities: Acquisition and construction of capital assets (769,766) (8,905,381) (70,685) (36,190) (9,782,022) Capital grants received 60,063 60,063 Principal paid on debt financing (1,244,669) (791,964) (447,962) (2,484,595) Interest paid on debt financing (918,594) (372,207) (505,789) (1,796,590) Net cash provided by (used in) in capital and related financing activities (2,933,029) (10,069,552) (1,024,436) 23,873 (14,003,144) Cash flows from investing activities: Interest on investments 166,197 135,061 70,708 6,005 377,971 Net cash provided by investing activities 166,197 135,061 70,708 6,005 377,971 Net change in cash and cash equivalents 4,025,051 (906,972) 1,541,662 1,200,196 5,859,937 Cash and cash equivalents, beginning of year 19,529,865 27,433,291 8,143,322 727,444 55,833,922 Cash and cash equivalents, end of year 23,554,916$26,526,319$9,684,984$1,927,640$ 61,693,859$ Enterprise Funds The accompanying notes are an integral part of these financial statements. 33  City of San Luis Obispo, California Statement of Cash Flows Business-Type Activities – Enterprise Funds, continued For the Fiscal Year Ended June 30, 2015 Page 2 Water Sewer Parking Transit Total Reconciliation of operating income (loss) to net cash provided by (used in) operating activities: Operating income (loss)4,113,016$ 8,239,143$ 1,861,572$ (3,344,780)$ 10,868,951$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation2,700,098 2,057,221 645,860 887,944 6,291,123 Other revenues and expenses75,567 5,761 (10,965) 486 70,849 Change in assets, deferred outflows of resources, liabilities, and deferred inflows of resources: Accounts receivable(206,877) (848,714) (1,583) 664,237 (392,937) Prepaid expense 58,125 58,125 Accounts payable 117,090 (701,411) (22,814) (130,244) (737,379) Deposits payable 720 720 Unearned revenue (54,561) (54,561) Accrued salaries and compensated absences255,608 192,863 26,271 15,915 490,657 Deferred pensions and net pension liability (242,539) (262,783) (67,289) (15,931) (588,542) Net cash provided by (used in) operating activities 6,812,683$ 8,740,205$ 2,431,052$(1,976,934)$ 16,007,006$ Reconciliation of cash and investments to the balance sheet: Cash and cash equivalents 5,547,777$ 6,699,953$ 2,310,953$ 487,957$ 15,046,640$ Investments 16,367,733 19,767,736 6,810,854 1,439,683 44,386,006 Cash and investments held by fiscal agent 1,639,406 58,630 563,177 2,261,213 Total cash and investments 23,554,916$26,526,319$9,684,984$1,927,640$ 61,693,859$ Noncash investing, capital, and financing activities: None Enterprise Funds The accompanying notes are an integral part of these financial statements. 34  City of San Luis Obispo, California Statement of Net Position – Fiduciary Funds Agency Funds June 30, 2015 Assets Current assets: Cash and cash equivalents 2,516,674$ Investments 885,366 Accounts receivable 26,572 Accrued interest receivable 4,382 Deferred outflows of resources - pensions 83,956 Other assets 58,707 Total assets 3,575,657$ Liabilities Current liabilities: Accounts payable 162,595$ Accrued liabilities 25,234 Other liabilities 1,857,553 Net pension liability 1,045,899 Deferred inflows of resources - pensions 101,940 Due to agency participants 382,436 Total liabilities 3,575,657$ The accompanying notes are an integral part of these financial statements. 35  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page Note 1: Summary of Significant Accounting Policies 38 Description of the Reporting Entity 38 Government-wide and Fund Financial Statements 38 Measurement Focus, Basis of Accounting and Basis of Presentation 39 Assets, Liabilities, and Net Position or Fund Balance 41 Budgets and Budgetary Accounting 44 Note 2: Cash and Investments 46 Funds with Fiscal Agent 47 Investments 47 Note 3: Property Taxes 51 Note 4: Due from Other Governments 53 Note 5: Capital Assets 53 Note 6: Long-Term Debt 56 Summary of Long-Term Debt 56 Governmental Activities Summary 56 Revenue Bonds 56 Lease-Purchase Financing 58 2014 Energy Sources Conservation State Loan 59 Business-Type Activities Summer 59 Revenue Bonds 59 Loans 61 Installment Sale Agreements 62 Note 7: Pension Plans and Other Post-Employment Benefits 63 Agent-Multiple Employer Plan 64 General Information about the Pension Plan 64 Net Pension Liability 65 Changes in the Net Pension Liability 67 36  City of San Luis Obispo, California Notes to the Financial Statements Table of Contents June 30, 2015 Page 2 Page Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions 68 Payable to the Pension Plan 69 Cost Sharing Employer Plan 69 General Information about the Pension Plans 69 Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions 71 Payable to the Pension Plan 75 Other Post-Employment Benefits (OPEB) 75 Note 8: Interfund Transactions 77 Note 9: Joint Ventures, Jointly Governed Organizations and Operating Agreements 78 Whale Rock Commission 79 San Luis Obispo Regional Transit Authority 80 San Luis Obispo Council of Governments 80 Nacimiento Water Supply Project 80 Note 10: Risk Management 82 California Joint Powers Insurance Authority 82 Self-Insurance Programs of the Authority 82 Purchased Insurance 83 Adequacy of Protection 84 Self-Insurance 84 Note 11: Operating Lease 85 Note 12: Commitments and Contingencies 85 Litigation 85 Grant Awards 86 Note 13: Construction and Other Significant Commitments 86 Note 14: Fund Balance Deficiency 86 37  City of San Luis Obispo, California Notes to the Financial Statements Table of Contents June 30, 2015 Page 3 Page Note 15: Subsequent Events 86 Half Percent Sales Tax Measure 86 Water Rates 86 Note 16: New Accounting Standards 87 Accounting Standards Adopted 87 New Accounting Standards 88 Note 17: Prior Year Restatements 89      38  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Note 1: Summary of Significant Accounting Policies The basic financial statements of the City of San Luis Obispo (City) have been prepared in conformity with U.S. Generally Accepted Accounting Principles (GAAP), as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant policies: Description of the Reporting Entity The City is a California charter city. It was incorporated on February 19, 1856 and chartered on May 1, 1876. It is organized in accordance with the Council-Mayor-City Manager form of government. With a population of approximately 45,500, the City provides a broad range of municipal services, including police and fire protection, parks and recreation, water and sewer utilities, street maintenance, public transportation, parking, planning, building and safety, and other general government services. As required by GAAP, these financial statements present the City (the primary government) and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities, are in substance part of the government's operations which creates the need to include their financial information with that of the primary government. The City has no component units that require discrete presentation in accordance with GASB standards. Blended Component Unit. The San Luis Obispo Capital Improvement Board provides financing for the construction and acquisition of City facilities. The Board consists of members of the City Council. Activities of the Board are accounted for in the applicable City governmental fund and consist of the issuance of debt secured by the lease of property. Separate financial statements are not prepared for the San Luis Obispo Capital Improvement Board. Government-wide and Fund Financial Statements The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component unit. 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 services. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The indirect expense allocation transfers general support services to operating programs based on the most current Cost Allocation Plan. 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    39  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 2 Note 1: Summary of Significant Accounting Policies (Continued) restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and 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 financial statements. Measurement Focus, Basis of Accounting and Basis of Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds. 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 charges between the government’s enterprise funds and various other functions of the government. 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 generally considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. An exception to this timeframe is made to allow for the recognition of the final property tax distributions received from the County, if necessary, as well as for sales tax revenues received in September. This later provision is made in order for the City’s revenue stream to match that recognized by the State of California. 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, franchise 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. 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. This 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.    40  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 3 Note 1: Summary of Significant Accounting Policies (Continued) Capital Outlay Fund. This fund was established to account for all of the City's construction projects and capital purchases in excess of $25,000 with the exception of those funded through non-major capital project funds and Enterprise Funds. Financing is provided primarily through transfers in from the General Fund, and from State and Federal grants. Transportation Impact Fee Fund. This fund was established to account for construction projects that will be financed primarily with transportation impact fees. The only proprietary funds the City reports are the Enterprise Funds, all of which are major funds. Proprietary Funds are accounted for on 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 liabilities are incurred. The City reports the following enterprise funds: Water Fund. This fund accounts for the provision of water services to the residents of the City as well as some customers in the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital improvements and debt service. Sewer Fund. This accounts for the provision of wastewater collection and treatment services to the residents of the City as well as some customers in the County. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital improvements and debt service. Parking Fund. This fund accounts for activities related to the implementation of the Access and Parking Management Plan, including the operation of municipal parking lots, parking structures, parking meters and residential parking districts. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, capital improvements and debt service. Transit Fund. This fund accounts for the operation and maintenance of the City's transit system. Although user fees are not the primary funding source for the operation of the system, the State of California and the Federal government, which provide the major funding sources for the system, require that local transit systems be accounted for on an enterprise fund basis. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non- operating revenues and expenses.    41  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 4   Note 1: Summary of Significant Accounting Policies (Continued) The City has established twelve Agency Funds, which are used to account for funds held by the City as an agent for private individuals, organizations or other governmental agencies. Agency funds are accounted for using the accrual basis of accounting. See page 129 for a complete list of Agency Funds. Assets, Liabilities, and Net Position or Fund Balance Cash, Cash Equivalents and Investments. The City pools cash resources of its various funds to facilitate cash management. Cash in excess of current requirements is invested and reported as investments. It is the City’s intent to hold investments until maturity. However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity or yield of the portfolio. 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. Cash and investments held by fiscal agents are treated as cash equivalents for purposes of the statement of cash flows. Highly liquid investments with maturities of one year or less at time of purchase are stated at the amortized cost. All other investments are stated at fair value. Market value is used as fair value for those investments where market quotations are readily available. Receivables and Payables. Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds”. All receivables are shown net of any allowance for uncollectible accounts if material. Charges for utility services rendered but unbilled as of June 30 are accrued and are recognized as revenues. Prepaids and Inventories. The City has no significant inventories. The cost of any inventoriable item has been recorded as an expenditure or expense at the time of purchase. 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. Restricted Assets. Certain proceeds of debt financings, as well as resources set aside for their repayment, are classified as restricted assets on the balance sheet because they are maintained in separate trust bank accounts and their use is limited by applicable debt covenants. Notes 2 and 6 have additional information on funds held by fiscal agents. Capital Assets. Capital assets, which include property, plant, equipment and infrastructure assets (such as streets, sidewalks and bridges), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements, and in the proprietary funds statement of net position. Capital assets are defined by the City as assets with an initial, individual cost of more than $25,000. The City does not have any intangible assets. Detailed information on the City’s capital assets can be found in Note 5.    42  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 5 Note 1: Summary of Significant Accounting Policies (Continued) Property, plant and equipment of the City are depreciated using the straight line method over the following estimated useful lives: Assets Years Infrastructure 20-100 Buildings and structures 20-50 Improvements other than buildings10-100 Equipment 3-21 Deferred Outflows and Inflows of Resources. The City recognizes deferred outflows and inflows of resources in the Statement of Net Position. A deferred outflow of resources is defined as a consumption of net position by the City that is applicable to a future reporting period. A deferred inflow of resources is defined as an acquisition of net position by the City that is applicable to a future reporting period. Compensated Absences. City employees are granted vacation and sick leave in varying amounts. In the event of termination, employees are reimbursed for the total value of their accumulated vacation days. Employees are reimbursed for 10% to 30% of the accumulated sick leave only upon retirement and only after at least 10 years of service. In selected cases, similar accumulated sick leave reimbursements may be available after 20 years of continuous employment. An employee's estate is reimbursed for 30% of the employee's accumulated sick leave in the event of death while in the City's employ. A liability for compensated absences is accrued in the government-wide and proprietary funds financial statements. Long-Term Obligations. In the government-wide financial statements, and proprietary funds in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary funds statement of net position. Bond premiums and discounts and deferred amounts on refunding are deferred and amortized over the life of the bonds. Deferred amounts on refunding are reported separately from assets and liabilities in the Statement of Net Position. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred.   In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the period they originate. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.    43  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 6 Note 1: Summary of Significant Accounting Policies (Continued) Net Pension Liability. 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 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 Equity. In the fund financial statements, fund balance for governmental funds is reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in the funds can be spent. Fund balance is reported in five components in accordance with GASB Statement No. 54 Fund Balance Reporting and Governmental Fund Type Definitions – nonspendable, restricted, committed, assigned and unassigned. The City Council may take action via minute order to add, delete or amend a fund balance commitment that is not required as a condition of a bond covenant or other external, legal requirement. Nonspendable. This component includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted. This component consists of amounts that have constraints placed on them either externally by third-parties (creditors, grantors, contributors, or laws or regulations of other governments) or by law through constitutional provisions or enabling legislation. Enabling legislation authorizes the City to assess, levy, charge or otherwise mandate payment of resources (from external resource providers) and includes legally enforceable requirements (compelled by external parties) that those resources be used only for the specific purposes stipulated in the legislation. Committed. This component consists of amounts that can only be used for specific purposes pursuant to constraints imposed by minute order authorized by the City Council. Also included in this component are encumbrances which represent legal and binding obligations for the acquisition of future goods and services. Those committed amounts established by minute order cannot be used for any other purpose unless the City Council adopts a new minute order so directing. With respect to encumbered amounts, the City may take steps to cancel the order for goods or services and thereby terminate the obligation. 44  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 7 Note 1: Summary of Significant Accounting Policies (Continued) Assigned. This component consists of amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. The City Manager or Director of Finance are authorized by City Council, via formal action at regular public meetings, to assign amounts to a specific purpose. Constraints imposed on the use of assigned amounts can be removed with no formal Council actions. Unassigned. This component is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Other governmental funds may report negative unassigned fund balance, which occurs when a fund has a residual deficit after allocation of fund balance to the nonspendable, restricted or committed categories. Fund Balance Spending Practice. The City follows a practice in which restricted, committed, assigned, and unassigned fund balances are spent when more than one amount is available for a specific purpose. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as they are needed. When unrestricted resources (committed, assigned and unassigned) are available for use, it is the City’s policy to use committed resources first, then assigned, and then unassigned as they are needed.   Budgets and Budgetary Accounting Overview. The City has received national recognition for its use of a two-year Financial Plan and budgetary process that emphasizes long-range planning and effective program management. Significant features of the City's two-year Financial Plan include the integration of Council goal-setting into the budgetary process and the extensive use of formal policies and measurable objectives. The Financial Plan includes operating budgets for two years and a capital improvement plan (CIP) covering five years. Under this multi-year approach, appropriations continue to be made annually; however, the Financial Plan is the foundation for preparing the budget for the second year. Additionally, unexpended operating appropriations from the first year may be carried over for specific purposes into the second year with the approval of the City Manager. Management Policies. The overall goal of the City's Financial Plan is to link what the City wants to accomplish over the next two years with the resources required to do so. Formal statements of budgetary policies and major objectives provide the foundation for achieving this goal. Key budget principles include: maintaining fund balances at levels which will protect the City from future uncertainties; estimating revenues at realistic levels; making current expenditures with current revenues; maintaining the City's traditional commitment to a strong General Fund; and complying with provisions of the State constitution, City charter, municipal code, and sound fiscal policy. Key revenue policies include: maintaining a diversified and stable revenue base; setting enterprise fund rates at levels that fully recover the total cost of providing services in the Water, Sewer and Parking Funds; and at policy levels for cost recovery in the Transit Fund; charging fees for General Fund programs in accordance with adopted user fee cost recovery goals; and ensuring that new development pays its fair share of the cost of constructing necessary community facilities. 45  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 8 Note 1: Summary of Significant Accounting Policies (Continued)  Budget Process. The City Manager is responsible for preparing the budget and submitting it to the Council for approval. Although specific steps will vary from year to year, the following is an overview of the general approach used under the City's two-year budgetary process:  First Year. The Financial Plan process begins with City Council goal-setting to determine major objectives to be accomplished over the next two years. As part of this process, community groups, interested individuals, and Council advisory bodies present their recommendations to the Council. Goals approved by the City Council are incorporated into the budget instructions issued to the operating departments, who are responsible for submitting initial budget proposals. After these proposals are comprehensively reviewed and a detailed financial forecast is prepared, the City Manager issues the Preliminary Financial Plan for public comment. A series of study sessions and public hearings are then held leading to Council adoption of the Financial Plan and Budget prior to the start of the fiscal year.  Second Year. Before the beginning of the second year of the two-year cycle, the Council reviews the progress during the first year, makes adjustments as necessary and approves appropriations for the second fiscal year. Unspent operating appropriations from the first year may be carried over for specific purposes into the second year with the approval of the City Manager. Unspent and unencumbered operating appropriations lapse at the end of the second year. The fiscal year which ended June 30, 2015 was the second year of the 2013-15 two-year cycle.  Mid-Year Reviews. The Council formally reviews the City's financial condition and amends appropriations, if necessary, each February.  Status Reports. Financial reports are prepared monthly to monitor the City's fiscal condition; more formal reports are issued to the Council and Department Heads on a quarterly basis. Additionally, more focused reports are issued on key revenues, such as sales tax, transient occupancy tax and quarterly reports on investments. The status of major goals and program objectives, including Construction in Progress (CIP) projects, are also formally reported to the Council on an ongoing basis. Accounting and Budget Administration. Budgets are prepared for each fund in accordance with its respective basis of accounting consistent with U.S. Generally Accepted Accounting Principles (GAAP). All governmental funds have legally adopted budgets annually. While budgets are prepared for the City's capital projects funds, the capital projects generally span more than one year and are effectively controlled at the project level; accordingly, budgetary comparisons are not presented in the accompanying other supplementary information following the basic financial statements. As provided under the City Charter, the Council may amend or supplement the budget at any time after its adoption by majority vote of the Council members. The legal level of budgetary control – the level at which expenditures are not to exceed appropriations – is the fund level. 46  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 9 Note 1: Summary of Significant Accounting Policies (Continued) For management control purposes, the City Manager has the authority to make or approve administrative adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end fund balances. Department heads have the authority to transfer line-item budgets within the department within a fund. During fiscal year 2015 several supplemental budget appropriations were made to reflect the inclusion of costs related to prior year encumbered amounts as well as the rollover of unspent capital appropriations. Additional appropriations were added to fund a prepayment made to the retirement system as well as to provide additional resources for the Community Development Department to ensure that it maintained a development review process that complied with State law in light of the increased demand for services. These adjustments were material when compared to the original appropriations. Both the original and final amended budgets of the general fund are presented as required supplementary information following the notes to the financial statements. Budget information for non-major governmental funds with annual budgets is presented in other supplementary information following the notes to the financial statements. Encumbrances. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the governmental funds. Encumbrances outstanding at the end of the year are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Amounts encumbered at year end are re-appropriated in the following year. Indirect Cost Reimbursement. All of the City's general government and engineering programs are accounted and budgeted for in the General Fund. However, some of these support service programs also benefit the City's enterprise and agency fund operations, and accordingly, transfers are made from these funds to reimburse the General Fund for these services. The transfers are based on a Central Service Cost Allocation Plan prepared for this purpose, which distributes these shared costs in a uniform, consistent manner in accordance with GAAP. Note 2: Cash and Investments The City follows the practice of pooling cash and investments for all funds under its direct daily control. Funds held by outside fiscal agents under provisions of bond indentures are maintained separately. Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund's average quarterly cash balance. Interest earned from cash and investments with fiscal agents is credited directly to such funds. 47  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 10 Note 2: Cash and Investments (Continued) Funds with Fiscal Agent The City has monies held by trustees or fiscal agents pledged to the payment or security of certain bonds. The California Government Code provides that these funds, in the absence of specific statutory provisions governing the issuance of bonds, may be invested in accordance with the ordinance, resolutions, or indentures specifying the types of investments its trustees or fiscal agents may make. These ordinances, resolutions, or indentures are generally more restrictive than the City's general investment policy. In no instance have additional types of investments been authorized which are not permitted by the City's investment policy. Investments The City is authorized by its investment policy, in accordance with Section 53601 of the California Government Code, to invest in the following instruments:  Treasury bills and notes  Government Sponsored Enterprises  Commercial paper  Repurchase agreements  Bankers' acceptances  Corporate medium-term notes  Negotiable certificates of deposit  Collateralized bank deposits  Money market mutual funds  State Local Agency Investment Fund (LAIF) Investments are stated at fair value, based on quoted market prices, except for discount notes which are stated at amortized cost which approximates fair value, in accordance with GASB standards. Investment income has been adjusted to reflect any unrealized gains and losses resulting from the fair value adjustment annually. While U.S. generally accepted accounting principles require recording any increases or decreases in the market value of the City’s investments, it is the City’s policy to make all investment decisions based on holding them through maturity, and therefore the City may not realize the gains or losses resulting from the fair value adjustment. As such, changes in market value generally do not affect the long-term results of the portfolio, but they can result in significant fluctuations from year-to-year. The fair value of the City’s position in the State LAIF pool is the same as the value of the pool shares. The State LAIF pool credit quality is unrated. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. 48  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 11 Note 2: Cash and Investments (Continued) At June 30, 2015, cash and investments consisted of the following:   Fair Value Percent of Portfolio Cash and cash equivalents22,606,318$ 21.93% State Local Agency Investment Fund27,267,242 26.45% U.S. Treasury securities15,256,021 14.80% U.S. government-sponsored enterprise agency securities4,521,879 4.39% Guaranteed investment contracts24,656,595 23.92% U.S. corporate bonds6,691,199 6.49% Collateralized certificates of deposit2,008,468 1.95% Money market funds74,687 0.07% Total cash and investments 103,082,409$100% At June 30, 2015, cash and investments are reflected in the financial statements as follows: Governmental Funds Enterprise FundsTotal Cash and cash equivalents8,371,759$ 15,046,640$ 23,418,399$ Investments30,682,839 44,386,006 75,068,845 Cash and investments held by fiscal agents2,333,952 2,261,213 4,595,165 Total cash and investments 41,388,550$ 61,693,859$ 103,082,409$   Cash and cash equivalents of $23,418,399 differ from that shown in the previous table ($22,606,318) due to the reclassification of the negative cash allocation in several funds (including General Fund) to accounts payable for financial statement purposes. The negative cash allocation is the result of timing differences between the receipt of revenue, the payment of expenses and the investment activity within the funds, but does not indicate any cash or investment accounts held are negative as of June 30, 2015. Custodial Credit Risk – Deposits with Financial Institutions. The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover deposits. Deposits with financial institutions, including certificates of deposit, totaling $32,538,702 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. The California Government Code 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 or letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105% in excess of the total amount of deposits. 49  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 12 Note 2: Cash and Investments (Continued) Custodial Credit Risk - Investments. This 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. Interest Rate Risk. This is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. In accordance with its policies in the Investment Management Plan, the City mitigates interest rate risk by:  Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market before maturity.  Investing operating funds primarily in shorter-term securities. The City’s investment policy also includes portfolio maturity targets. A minimum of 20% of the portfolio will be invested in securities maturing in one year or less. Up to 80% of the portfolio can be invested in securities with a maturity over one year, with no more than 10% of the portfolio invested in securities with a maturity over five years. Maturities using the segmented time distribution method for those investments requiring this disclosure are as follows: Fair Value Less Than One Month One Month to One Year One to Five Years Over Five Years U.S. Treasury securities15,256,021$ $ 13,586,071$ 1,144,730$ 525,220$ U.S. government-sponsored enterprise agency securities4,521,879 4,521,879 Certificates of deposit 2,008,468 2,008,468 Guaranteed investment contracts24,656,595 24,656,595 U.S. corporate bonds6,691,199 6,691,199 State LAIF27,267,242 27,267,242 Money market funds74,687 74,687 Total maturities 80,476,091$ 27,341,929$15,594,539$7,835,929$ 29,703,694$ Investments held by fiscal agents are structured with maturity dates that correspond to the payment of final debt service of the respective bond indenture. Credit Risk. This is the risk of loss due to the failure of the security issuer or backer. The City’s policies to mitigate credit risk include:  Limiting investments to the safest types of securities. As noted above, the California Government Code limits the investment vehicles available to local agencies. The credit risk of these securities is measured by the assignment of a rating by a nationally recognized statistical rating organization. The table below presents the rating for each investment type as provided by Standard & Poor’s except as noted. 50  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 13 Note 2: Cash and Investments (Continued)  Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors with which the City will do business. The following table identifies the Standard & Poor’s credit quality ratings for those investments requiring this disclosure as of June 30, 2015: Fair ValueAAAAA+AAAA-Not Rated Investments: U.S. government-sponsored enterprise agency securities4,521,879$ $ 4,521,879$ $ $ $ Certificates of deposit 2,008,468 2,008,468 Guaranteed investment contracts24,656,595 24,656,595 U.S. corporate bonds6,691,199 1,684,710 1,400,698 1,938,582 1,667,209 State LAIF 27,267,242 27,267,242 Money market funds 74,687 74,687 Total 65,220,070$ 1,684,710$30,579,172$1,938,582$1,667,209$ 29,350,397$ U.S. Treasury securities are exempt from credit rating disclosures. Concentration Credit Risk. The City’s policies contained in the Investment Management Plan provide guidelines (by type of investment that limits either the dollar amount, the percent of the portfolio or the maturity term) for diversifying the investment portfolio so that potential losses on individual securities will be minimized. The City’s Investment Management Plan outlines the following criteria related to portfolio diversification:  No more than 5% of the City’s portfolio (exclusive of government agency issues or LAIF) shall be placed with any financial institution.  No more than 25% of the City’s portfolio shall be invested in collateralized certificates of deposit issued by financial institutions.  Certificates of deposit (negotiable and collateralized) placed by the City shall not constitute more than 15% of the total assets of the institution; and negotiable certificates of deposit will only be placed with institutions with total assets in excess of $200 million and that maintain a ratio of equity to total assets of at least 5%. 51  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 14 Note 2: Cash and Investments (Continued) Investments that exceed 5% of the portfolio by issuer are summarized below: Fair Value Percent of Portfolio Federal Home Loan Bank3,687,654$ 6% Federal National Mortgage Association8,732,722 13% Federal Home Loan Mortgage Corp 8,422,142 13% Federal Farm Credit Bank 3,814,077 6% These U.S. government-sponsored enterprise agency securities are not explicitly guaranteed by the U.S. government. Approximately 14% of the City’s portfolio is comprised of U.S. Treasury securities, which are exempt from this disclosure. Foreign Currency Risk. The City does not hold any investment that is based on foreign currency exchange rates. Note 3: Property Taxes Property taxes in the State of California (State) are administered for all local agencies at the county level, and consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and practices relating to property taxes:  Property Valuation. Valuations are established by the Assessor of the County of San Luis Obispo (County) for the secured and unsecured property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under the provisions of Article XIIIA of the State Constitution (Proposition 13 adopted by the voters on June 6, 1978), properties are assessed at 100% of full value. Proposition 13 also modified the value of taxable real property for fiscal 1979 by rolling back values to fiscal 1976 levels. From this base of assessment, subsequent annual increases in valuation are limited to a maximum of 2%. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations and is subject to annual reappraisal.  Tax Levies. Under the provisions of Proposition 13, the County wide tax levy for general revenue purposes is limited to 1% of full market value, which results in a tax rate of $1.00 per $100 assessed valuation. Tax rates for voter approved indebtedness are excluded from this limitation.  Tax Levy Dates. All lien dates attach annually on January 1 preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on both real and unsecured personal property as it exists at that time. The lien against real estate as well as the tax on personal property is not relieved by subsequent renewal or change in ownership. 52  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 15 Note 3: Property Taxes (Continued)  Tax Collections. The County Treasurer/Tax Collector is responsible for all property tax collections. Taxes and assessments on the secured and utility rolls, which constitute a lien against the property, may be paid in two installments: the first installment is due on November 1 of the fiscal year and is delinquent if not paid by December 10; and the second installment is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Unsecured personal property taxes do not constitute a lien against real property. However, if the taxes become delinquent the lien is attached against anything the individual owns, which could include real property. Payment must be made in one installment, which is delinquent if not paid by August 31 of the fiscal year. Significant penalties are imposed by the County for late payments.  Teeter Plan. In 1993-94 the City elected to receive property tax revenue in accordance with the alternative method of distribution prescribed by Sections 4701-4717 of the California Revenue and Taxation Code, which is commonly known as the “Teeter Plan” whereby the County remits 100% of taxes levied without regard to delinquencies. The County then pursues collection, retaining any delinquent taxes and related penalties and interest.  Tax Levy Apportionments. Due to the nature of the County wide maximum levy, it is not possible to identify general purpose tax rates for specific entities. Under State legislation adopted subsequent to the passage of Proposition 13, apportionments to local agencies are made by the County Auditor Controller based primarily on two factors: the ratio that each agency represented of the total County wide levy for the three years prior to fiscal 1979; and subsequent adjustments to these apportionments and transfers to the “Educational Revenue Augmentation Fund” (ERAF) as determined by the State.  City Property Tax Distribution Policy. Property taxes are recorded in the General Fund as general purpose revenue. Transfers are made from the General Fund as needed to support expenditures in the Capital Outlay, Open Space Protection, Fleet Replacement, Information Technology Replacement, Major Facility Replacement and Debt Service Funds. Property taxes receivable at June 30, 2015 have been accrued since they will be collected within 60 days subsequent to year-end.    53  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 16 Note 4: Due from Other Governments The following is a summary of amounts due to the City from other governmental agencies at June 30, 2015: County of San Luis Obispo State of California Other Agencies Total General Fund3,356,304$ 701$ $ 3,357,005$ Capital Outlay Fund698,111 3,025,955 3,724,066 Other Governmental Funds41,935 43,846 85,781 Enterprise Funds: Transit Fund 1,107,522 1,107,522 Total 4,096,350$ 3,070,502$ 1,107,522$ 8,274,374$   Note 5: Capital Assets GASB standards require that the City report in the government-wide statements the value of all capital assets net of accumulated depreciation, including infrastructure assets, in accordance with GAAP. Infrastructure assets are defined as long-lived capital assets that are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. The minimum requirement for compliance with GASB standards is to provide infrastructure valuations for all assets constructed, acquired, or placed into service on or after July 1, 1980. Relevant assets for the City were valued at one of two dates: 1) the original date of construction, if available, or 2) the incorporation date of the City. Each asset was reviewed to determine the adequacy of the data to value the asset prior to July 1, 1980 using historical cost or estimated historical cost.    54  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 17 Note 5: Capital Assets (Continued) Capital assets activity for the fiscal year ended June 30, 2015 was as follows:   Balance Balance June 30, 2014IncreasesDecreasesJune 30, 2015 Governmental activities: Capital assets not being depreciated: Land 32,043,900$ $ $ 32,043,900$ Construction in progress 12,200,630 12,773,038 (6,159,708) 18,813,960 Public art 646,600 646,600 Total capital assets not being depreciated 44,891,130 12,773,038 (6,159,708) 51,504,460 Capital assets being depreciated: Infrastructure 142,810,770 6,925,118 149,735,888 Accum. Depreciation (44,850,203) (3,051,882) (47,902,085) Buildings and improvements 35,357,824 35,357,824 Accum. Depreciation (15,995,434) (867,566) (16,863,000) Equipment 22,424,798 3,270,581 (1,333,004) 24,362,375 Accum. Depreciation (15,267,274) (1,183,884) 1,279,117 (15,172,041) Total capital assets being depreciated, net 124,480,481 5,092,367 (53,887) 129,518,961 Governmental activities, capital assets, net 169,371,611 17,865,405 (6,213,595) 181,023,421 Business-type activities: Capital assets not being depreciated: Land 8,607,177 8,607,177 Construction in progress 8,580,215 9,048,615 (2,074,915) 15,553,915 Public art 74,100 74,100 Total capital assets not being depreciated 17,261,492 9,048,615 (2,074,915) 24,235,192 Capital assets being depreciated: Infrastructure 197,280,931 2,444,162 199,725,093 Accum. Depreciation (65,255,491) (4,556,454) (69,811,945) Buildings and improvements 30,052,496 30,052,496 Accum. Depreciation (11,087,260) (625,359) (11,712,619) Equipment 15,855,696 390,188 (110,121) 16,135,763 Accum. Depreciation (9,107,133) (1,109,310) 84,093 (10,132,350) Total capital assets being depreciated, net 157,739,239 (3,456,773) (26,028) 154,256,438 Business-type activities, capital assets, net 175,000,731 5,591,842 (2,100,943) 178,491,630 Total Government-wide 344,372,342$ 23,457,247$ (8,314,538)$ 359,515,051$      55  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 18 Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs as follows:   Governmental activities: Public safety767,444$ Transportation2,820,254 Leisure, cultural and social services745,850 Community development1,194 General government768,590 Total depreciation - governmental activities5,103,332 Business-type activities: Water2,700,098 Sewer2,057,221 Parking645,860 Transit887,944 Total depreciation - business-type activities6,291,123 Total Government-wide 11,394,455$     56  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 19 Note 6: Long-Term Debt Summary of Long-Term Debt The following is a summary of the City's long-term debt transactions for the year ended June 30, 2015: Balance BalanceDue Within June 30, 2014AdditionsDeductionsJune 30, 2015One Year Governmental activities: Revenue bonds 22,152,010$ 7,580,000$ (1,175,295)$ 28,556,715$ 1,357,200$ Unamortized bond premium 391,161 243,972 (33,442) 601,691 Lease-purchase financing 711,622 548,351 (224,827) 1,035,146 223,001 Claims and liabilities 2,371,519 (2,371,519) - Compensated absences 2,465,248 2,082,658 (1,854,395) 2,693,511 1,099,884 Conservation Loan 850,775 (84,683) 766,092 86,778 Total long-term debt, governmental activities28,942,335$ 10,454,981$(5,744,161)$33,653,155$ 2,766,863$ Business-type activities: Revenue bonds 27,083,040$ $ (1,099,740)$25,983,300$ 1,142,800$ Unamortized bond premium 606,843 (62,048) 544,795 Loans 19,446,946 (886,994) 18,559,952 912,329 Installment sale agreements 8,979,000 (497,957) 8,481,043 548,746 Compensated absences 562,540 438,735 (376,731) 624,544 206,192 Total long-term debt, business-type activities56,678,369 438,735 (2,923,470) 54,193,634 2,810,067 Total Government-wide 85,620,704$ 10,893,716$(8,667,631)$87,846,789$ 5,576,930$ Compensated absences in the governmental funds are generally liquidated by the General Fund on a pay as you go basis. Total interest incurred during the year ended June 30, 2015 was $3,044,788 of which $288,079 was capitalized into construction in progress. See Note 10 for detail of estimated claims and liabilities. The San Luis Obispo Capital Improvement Board has entered into a number of lease agreements with the City of San Luis Obispo wherein the City is obligated to make all debt service payments. The transactions between the Board and the City have been eliminated from these financial statements. Governmental Activities Summary: Revenue Bonds 2005 Revenue Refunding Bonds. In 2005, the Board issued lease revenue refunding bonds in the amount of $6,550,000 to refinance the 1996 lease revenue bonds. The purpose of these bonds was to construct several high priority capital improvement projects, including the fire station headquarters, seismic safety and HVAC improvements to City Hall, 57  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 20 Note 6: Long-Term Debt (Continued) Mission Plaza expansion, and various properties and street lighting system purchases. The bonds bear interest from 3.4% to 4.5%, and are due in annual installments on June 1 through June 1, 2026 that range from $195,000 to $565,000. At June 30, 2015, the principal amount outstanding on the bonds was $4,110,000. The bond indenture agreement specifies reserve requirements equal to the maximum debt service in any particular year to be held in the Trustee’s reserve funds. The reserve requirement has been met for the year ended June 30, 2015.  2006 Lease Revenue Bonds. In 2006, the Board issued lease revenue bonds in the amount of $16,160,000 to finance the costs of acquisition and construction of public parking facilities and for purposes of the City’s administrative office. Of the original bond issuance, $7,433,600 was used for financing governmental activities related to this project and the remainder was used for business-type activities. The bonds bear interest from 4.00% to 4.70%, and are due in annual installments on June 1 through June 1, 2036 that range from $116,100 to $515,700. At June 30, 2015, the principal amount outstanding that pertains to governmental activities was $6,104,200 of the total $13,270,000 outstanding. The bond indenture agreement specifies reserve requirements equal to the maximum debt service in any particular year to be held in the Trustee’s reserve funds. The reserve requirement has been met for the year ended June 30, 2015. 2009 Lease Revenue Bonds. In 2009, the Board issued lease revenue bonds in the amount of $10,705,000 to finance the public safety communications and emergency operations center project. Of the original bond issuance, $9,067,135 was used for financing governmental activities related to this project and the remainder was used for business-type activities. The bonds bear interest from 3.0% to 5.75%, and are due in annual installments on June 1 through June 1, 2039 that range from $355,740 to $563,255. At June 30, 2015, the principal amount outstanding that pertains to governmental activities was $6,352,515 of the total $7,500,035 outstanding. The bond indenture agreement specifies reserve requirements equal to the maximum debt service in any particular year to be held in the Trustee’s reserve funds. The reserve requirement has been met for the year ended June 30, 2015. In the Statement of Net Position, the 2009 bonds include the related unamortized premium which is being amortized and charged to expense over the term of the 2009 bonds. At June 30, 2015, the unamortized premium was $90,567.   2012 Refunding Lease Revenue Bonds. In 2012, the Board issued refunding lease revenue bonds in the amount of $5,050,000 to refinance the outstanding 2001 lease revenue bonds, Series C. The purpose of these bonds is to purchase property and build athletic fields, purchase property for police station expansion, and purchase Downton Plan properties. The bonds bear interest from 2.0% to 4.0%, and are due in annual installments on December 1 through December 1, 2029 that range from $210,000 to $390,000. At June 30, 2015, the principal amount outstanding on the bonds was $4,410,000. The bond indenture agreement specifies reserve requirements equal to the maximum debt service in any particular year to be held in the Trustee’s reserve funds. The reserve requirement has been met for the year ended June 30, 2015. 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 $233,595. 58  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 21 Note 6: Long-Term Debt (Continued) 2014 Lease Revenue Bonds. In 2014, the Board issued lease revenue bonds in the amount of $7,580,000 to finance the expansion of the Los Osos Valley Road interchange at U.S. 101. The bonds bear interest from 3.00% to 4.00%, and are due in annual installments on November 1 through November 1, 2044 that range from $145,000 to $410,000. At June 30, 2015, the principal amount outstanding on the bonds was $7,580,000. The bond indenture agreement specifies reserve requirements equal to the maximum debt service in any particular year to be held in the Trustee’s reserve funds. The reserve requirement has been met for the year ended June 30, 2015. In the Statement of Net Position, the 2014 bonds include the related unamortized premium which is being amortized and charged to expense over the term of the 2014 bonds. At June 30, 2015, the unamortized premium was $277,529. At June 30, 2015, the aggregate maturities of the aforementioned governmental activities revenue bonds were as follows: For the Year Ending June 30,PrincipalInterest Total 2016 1,357,200$ 1,214,731$ 2,571,931$ 2017 1,396,040 1,164,804 2,560,844 2018 1,454,115 1,112,399 2,566,514 2019 1,505,255 1,056,298 2,561,553 2020 1,103,250 996,729 2,099,979 2021-2025 6,255,085 4,246,502 10,501,587 2026-2030 5,916,960 2,869,411 8,786,371 2031-2035 4,462,520 1,743,558 6,206,078 2036-2040 3,206,290 735,833 3,942,123 2041-2045 1,900,000 196,000 2,096,000 28,556,715$ 15,336,265$ 43,892,980$ Lease-Purchase Financing Fire Apparatus. In 2010 the Board obtained lease-purchase financing in the amount of $1,080,000 to purchase a fire truck. The gross amount of assets under this lease is $1,047,927 million with accumulated depreciation of $266,305 included in equipment at June 30, 2015. Amortization of the equipment is included in depreciation expense. The lease agreement bears an interest rate of 2.99% due in annual installments on February 1 through February 1, 2020 that range from $80,000 to $125,100. At June 30, 2015 the principal amount outstanding is $585,000. Police Vehicle. In 2012, the City obtained lease-purchase financing in the amount of $30,264 to purchase a police vehicle. The gross amount of assets under this lease is $30,264 with accumulated depreciation of $22,194 included in equipment at June 30, 2015. Amortization of the equipment is included in depreciation expense. The note bears an interest rate of 3.89% due in annual installments of $6,778 on October 1 with the remainder due at maturity on October 1, 2015. At June 30, 2015 the principal amount outstanding is $9,844. 59  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 22 Note 6: Long-Term Debt (Continued) Fire Engine. In 2013 the Board obtained lease-purchase financing in the amount of $548,351 to purchase a fire truck. The gross amount of assets under this lease is $550,738 million with accumulated depreciation of $38,246 included in equipment at June 30, 2015. Amortization of the equipment is included in depreciation expense. The lease agreement bears an interest rate of 6.00% due in annual installments on July 11 through July 11, 2018 that range from $106,000 to $114,000. At June 30, 2015 the principal amount outstanding is $440,302. At June 30, 2015, the aggregate maturities of the aforementioned governmental activities lease-purchase financing were as follows: For the Year Ending June 30,PrincipalInterest Total 2016 223,001$ 27,971$ 250,972$ 2017 226,817 22,154 248,971 2018 226,339 16,127 242,466 2019 233,989 10,039 244,028 2020 125,000 3,738 128,738 1,035,146$ 80,029$ 1,115,175$ 2014 Energy Sources Conservation State Loan In 2014, the City obtained a note in the amount of $850,775 for the purchase of streetlights. The note bears an interest rate of 1% due in semi-annual installments on December 22 and June 22 through December 22, 2023 in the amount of $92,242. At June 30, 2015 the principal amount outstanding is $776,092. At June 30, 2015, the aggregate maturities of the aforementioned governmental activities conservation loan is as follows: For the Year Ending June 30,PrincipalInterest Total 2016 86,778$ 7,465$ 94,243$ 2017 87,667 6,575 94,242 2018 88,546 5,696 94,242 2019 89,434 4,809 94,243 2020 90,320 3,922 94,242 2021-2024 323,347 6,501 329,848 766,092$ 34,968$ 801,060$ Business-Type Activities Summary: Revenue Bonds 2006 Lease Revenue Bonds. In 2006, the Board issued lease revenue bonds in the amount of $16,160,000 to finance the costs of acquisition and construction of public parking facilities and for purposes of the City’s administrative office. Of the original bond issuance, $8,726,400 was used for financing business-type activities related to this project and the 60  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 23 Note 6: Long-Term Debt (Continued) remainder was used for governmental activities. The bonds bear interest from 4.00% to 4.70%, and are due in annual installments on June 1 through June 1, 2036 that range from $116,100 to $515,700. At June 30, 2015, the principal amount outstanding that pertains to business-type activities was $7,165,800 of the total $13,270,000 outstanding. The bond indenture agreement specifies reserve requirements equal to the maximum debt service in any particular year to be held in the Trustee’s reserve funds. The reserve requirement has been met for the year ended June 30, 2015. In the Statement of Net Position, the 2006 bonds include the related unamortized premium which is being amortized and charged to expense over the term of the 2006 bonds. At June 30, 2015, the unamortized premium was $24,331. 2009 Lease Revenue Bonds. In 2009, the Board lease revenue bonds in the amount of $10,705,000 were issued to finance the public safety communications and emergency operations center project. Of the original bond issuance, $1,637,865 was used for financing business-type activities related to this project and the remainder was used for governmental activities. The bonds bear interest from 3.0% to 5.75%, and are due in annual installments on June 1 through June 1, 2039 that range from $355,740 to $563,255. At June 30, 2015, the principal amount outstanding that pertains to business- type activities was $1,147,500 of the total $7,500,035 outstanding. The bond indenture agreement specifies reserve requirements equal to the maximum debt service in any particular year to be held in the Trustee’s reserve funds. The reserve requirement has been met for the year ended June 30, 2015. 2012 Water Revenue Refunding Bonds. In 2012, the City issued water revenue refunding bonds in the amount of $4,960,000 to refund the 2002 water revenue bonds, which were originally issued to fund water system improvements. The bonds bear interest from 2.0% to 4.0%, and are due in annual installments on June 1 through June 1, 2023 than range from $340,000 to $550,000. At June 30, 2015, the principal amount outstanding on the bonds was $3,840,000. The bond indenture agreement specifies reserve requirements equal to the maximum debt service in any particular year to be held in the Trustee’s reserve funds. The reserve requirement has been met for the year ended June 30, 2015. 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 $520,464. The City has pledged future water system revenues, net of specific operating expenses, to repay the bonds on parity with a pledge that services all parity obligations. The bonds are payable solely from water customer net revenues and any moneys in the bond service fund and the reserve fund. For the year ended June 30, 2015, principal and interest paid and total customer net revenues were $569,600 and $4,479,349 respectively. 61  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 24 Note 6: Long-Term Debt (Continued) 2006 Water Revenue Bonds. In 2006, the City issued water revenue bonds in the amount of $16,905,000 to construct improvements to the water treatment plant. The bonds bear interest from 3.75% to 4.625%, and are due in annual installments on June 1 through June 1, 2036 that range from $235,000 to $985,000. At June 30, 2015, the principal amount outstanding on the bonds was $13,830,000. The bond indenture agreement specifies reserve requirements equal to the maximum debt service in any particular year to be held in the Trustee’s reserve funds. The reserve requirement has been met for the year ended June 30, 2015. The City has pledged future water system revenues, net of specific operating expenses, to repay the bonds on parity with a pledge that services all parity obligations. The bonds are payable solely from water customer net revenues and any moneys in the bond service fund and the reserve fund. For the year ended June 30, 2015, principal and interest paid and total customer net revenues were $1,033,948 and $4,479,349, respectively. At June 30, 2015, the aggregate maturities of the business-type revenue bonds were as follows: For the Year Ending June 30,PrincipalInterest Total 2016 1,142,800$ 1,148,916$ 2,291,716$ 2017 1,188,960 1,103,204 2,292,164 2018 1,235,885 1,055,366 2,291,251 2019 1,289,745 1,003,912 2,293,657 2020 1,251,750 952,039 2,203,789 2021-2025 5,944,925 3,947,749 9,892,674 2026-2030 5,418,050 2,759,995 8,178,045 2031-2035 6,792,480 1,394,568 8,187,048 2036-2039 1,718,705 101,967 1,820,672 25,983,300$ 13,467,716$ 39,451,016$ Loans 2004 State Water Control Board Loan. In 2004, the City obtained a note in the amount of $8,883,200 to go towards the water reuse project. The note bears an interest rate of 2.5% due in annual installments on August 31 through August 31, 2024 that range from $296,000 to $512,600. At June 30, 2015, the principal amount outstanding on the loan was $4,598,934. 2001 CIEDB State Loan. In 2001, the City obtained a note in the amount of $7,765,900 to go towards expanding the March Street parking structure. The note bears an interest rate of 3.37% due in semi-annual installments on February 1 and August 1 through August 31, 2031 that range from $169,000 to $396,000. At June 30, 2015, the principal amount outstanding on the loan was $5,345,307. 62  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 25 Note 6: Long-Term Debt (Continued) 2009 Infrastructure and Economic Development Bank Loan– Tank Farm Lift Station. In 2009, the City obtained a note in the amount of $10,000,000 to go towards the Tank Farm lift station and main sewer project. The note bears an interest rate of 3.25% due in annual installments on December 1 through December 1, 2039 that range from $212,600 to $520,744. At June 30, 2015, the principal amount outstanding on the loan was $8,615,711. The City has pledged future sewer system revenues, net of specific operating expenses, to repay the loan. The loan is payable solely from sewer customer net revenues. For the year ended June 30, 2015, principal and interest paid and total customer net revenues were $560,209 and $9,454,617, respectively. At June 30, 2015, the aggregate maturities of the aforementioned business-type loans were as follows: For the Year Ending June 30,PrincipalInterest Total 2016 912,329$ 436,179$ 1,348,508$ 2017 938,460 420,057 1,358,517 2018 965,353 403,426 1,368,779 2019 993,026 386,268 1,379,294 2020 1,021,502 368,567 1,390,069 2021-2025 5,564,401 1,557,072 7,121,473 2026-2030 3,649,546 1,022,514 4,672,060 2031-2035 3,001,658 455,184 3,456,842 2036-2039 1,513,677 74,733 1,588,410 18,559,952$ 5,124,000$ 23,683,952$ Installment Sale Agreements 2008 Suntrust Bond. In 2008, the Board entered into an installment sale contract financing $2,050,000 to finance the Tank Farm lift station. The terms state an interest rate of 4.2% due in annual installments through 2023 that range from $372,900 to $607,200. At June 30, 2015, the principal amount outstanding on the loan was $1,375,000. US Bank 2014 Wastewater Lease. In 2013, the Board entered into an installment sale contract financing $7,479,000 to finance the acquisition and installation of improvements to its water reclamation facility. The note bears an interest rate of 2.8994% due in annual installments on June 1 and December 1 through December 1, 2028 that range from $372,900 to $607,200. At June 30, 2015, the principal amount outstanding on the loan was $7,106,043. 63  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 26 Note 6: Long-Term Debt (Continued) At June 30, 2015, the aggregate maturities of the aforementioned business-type installment sale agreements were as follows: For the Year Ending June 30,PrincipalInterest Total 2016 548,746$ 255,024$ 803,770$ 2017 565,859 237,140 802,999 2018 583,354 218,689 802,043 2019 601,211 199,660 800,871 2020 619,441 179,994 799,435 2021-2025 3,234,485 718,376 3,952,861 2026-2029 2,327,947 137,431 2,465,378 8,481,043$ 1,946,314$ 10,427,357$ There are a number of limitations and restrictions contained in the various bond indentures. City management believes that the City has complied with the indenture requirements. Security for revenue bonds is paid from receipts or net income and amounts in funds or accounts established under bond indentures.   Note 7: Pension Plans and Other Post-Employment Benefits The City contributes to the California Public Employees’ Retirement System (CalPERS) for its employees. The City participates in one agent-multiple employer plan for its miscellaneous employees (Miscellaneous Plan) and five cost sharing employer plans for its safety employees (Safety Plans). The Miscellaneous Plan is described in the first section of the footnote under Agent-Multiple Employer Plan and the Safety Plans follow and are described in the second section of the footnote under Cost-Sharing Employer Plans. The portion of the Miscellaneous Plan that has been allocated to the Whale Rock Commission, an Agency Fund, is included in the Miscellaneous Plan summaries in this footnote. A summary of the government-wide balances for all Plans at June 30, 2015 are as follows: Net PensionDeferred Outflows Deferred Inflows Liabilityof Resourcesof Resources Miscellaneous Plan62,628,662$ 5,027,328$ 6,104,192$ Safety Plans51,592,420 5,284,102 6,410,756 Less: Whale Rock Agency Fund(1,045,899) (83,956) (101,940) Total Government-Wide113,175,183$ 10,227,474$ 12,413,008$ 64  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 27 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) Agent-Multiple Employer Plan General Information about the Pension Plan Plan Descriptions. As noted above, the City contributes to CalPERS for a defined benefit pension plan for all qualified permanent and probationary employees. CalPERS acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and City resolution. 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. CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment for tier 1 employees. Tier 2 and PEPRA employees are based on a three year average 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 the plan are applied as specified by the Public Employees’ Retirement Law. The Miscellaneous Plan’s provisions and benefits in effect at June 30, 2015, are summarized as follows: Prior to On or after On or after Hire date December 6, 2012December 6, 2012January 1, 2013 Benefit formula 2.7% @ 55 2% @ 60 2% @ 62 Benefit vesting schedule 5 years service5 years service5 years service Benefit payments monthly for lifemonthly for lifemonthly for life Retirement age 50 - 55 50 - 63 52 - 67 Monthly benefits, as a % of eligible compensation 2.0% to 2.7%1.092% to 2.418%1.0% to 2.5% Required employee contribution rates 8%7%6.25% Required employer contribution rates 28.300%28.300%28.300% Miscellaneous Plan While the City's Miscellaneous Plan is not closed to new entrants, the component option of 2.7% @ 55 is closed to new entrants. Classic Members as defined by CalPERS entering the City's Miscellaneous Plan would enter the 2% @ 60 option while New Members as defined by CalPERS entering the City Miscellaneous Plan would enter the 2% @ 62 option. 65  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 28 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) Employees Covered. At June 30, 2015, the following employees were covered by the benefit terms for the Miscellaneous Plan: Miscellaneous Plan Inactive employees or beneficiaries currently receiving benefits313 Active employees274 Total 587 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 July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Net Pension Liability The City’s net pension liability for the Miscellaneous Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plan is measured as of June 30, 2014, using an annual actuarial valuation as of June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. Actuarial Assumptions. The total pension liabilities in the June 30, 2013 actuarial valuations were determined using the following actuarial assumptions: Miscellaneous Plan Valuation DateJune 30, 2013 Measurement DateJune 30, 2014 Actuarial Cost MethodEntry-Age Normal Cost Method Actuarial Assumptions: Discount Rate7.50% Inflation2.75% Payroll GrowthVaries by Entry Age and Service Projected Salary Increase3.3% - 14.2% (1) Investment Rate of Return7.50% (2) Mortality(3) (1) Depending on age, service and type of employment. (2) Net of pension investment expenses, including inflation. (3) Derived using CalPERS' Membership Data for all Funds 66  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 29 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) 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 found on the CalPERS website. Discount Rate. The discount rate used to measure the total pension liability was 7.50% for the 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 most 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 run 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 the 2017-18 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 long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound 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. 67  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 30 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) 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 Real ReturnReal Return Asset Class AllocationYears 1 - 10 (a)Years 11+ (b) Global Equity 47.0%5.25%5.71% Global Fixed Income 19.0%0.99%2.43% Inflation Sensitive 6.0%0.45%3.36% Private Equity 12.0%6.83%6.95% Real Estate 11.0%4.50%5.13% Infrastructure and Forestland 3.0%4.50%5.09% Liquidity 2.0%-0.55%-1.05% (a) An expected inflation of 2.5% used for this period (b) An expected inflation of 3.0% used for this period Miscellaneous Plan Changes in the Net Pension Liability The changes in the Net Pension Liability for the Miscellaneous Plan follows: Plan Net Total Fiduciary Pension PensionNetLiability/ Liability Position (Asset) Balance at June 30, 2013 172,370,651$ 102,159,529$ 70,211,122$ Changes during the year: Service cost 3,703,088 3,703,088 Interest on the total pension liability 12,756,967 12,756,967 Contribution - employer 4,631,254 (4,631,254) Contribution - employee 1,664,654 (1,664,654) Net investment income 17,746,607 (17,746,607) Benefit payments, including refunds of employee contributions (8,258,611) (8,258,611) - Net changes 8,201,444 15,783,904 (7,582,460) Balance at June 30, 2014 180,572,095$ 117,943,433$ 62,628,662$ 68  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 31 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rate. The following presents the net pension liability of the City for the Plan, calculated using the discount rate for each Plan, as well as what the City’s net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Miscellaneous Plan 1% Decrease6.50% Net Pension Liability85,052,059$ Current Discount Rate7.50% Net Pension Liability62,628,662$ 1% Increase8.50% Net Pension Liability43,888,737$ Pension Plan Fiduciary Net Position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2015, the City’s pension expense for the Miscellaneous Plan was $3,152,985, of which $3,121,683 was recognized pension expense for the City and $31,302 was recognized as pension expense for Whale Rock Agency Fund. At June 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred OutflowsDeferred Inflows of Resourcesof Resources Pension contributions subsequent to measurement date5,027,328$ $ Net differences between projected and actual earnings on plan investments6,104,192 Total 5,027,328$ 6,104,192$ Miscellaneous Plan 69  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 32 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) The deferred outflows of resources related to contributions subsequent to the measurement date of $5,027,328 will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension income as follows: Year Ended June 30Amount 2016(2,034,730)$ 2017(2,034,730) 2018(2,034,732) (6,104,192)$ Miscellaneous Plan Payable to the Pension Plan At June 30, 2015, the City reported a payable of $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2015. Cost-Sharing Employer Plans General Information about the Pension Plans Plan Descriptions. As noted above, the City contributes to CalPERS for a defined benefit pension plan for all qualified permanent and probationary employees. CalPERS acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plan are established by State statute and City resolution. 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. The City participates in five safety cost-sharing multiple-employer plans. The Safety Plans consist of Safety Tier 1 (police and fire), Police Tier 2, Fire Tier 2, Police PEPRA and Fire PEPRA. Both the Police and Fire PEPRA plans did not incur a net pension liability nor receive an actuary valuation for the measurement period ended June 30, 2014, therefore these plans are not required to be included in the additional pension disclosures below or required supplementary information for the year ended June 30, 2015. Benefits Provided. CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited 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. 70  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 33 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) The Plans’ provisions and benefits in effect at June 30, 2015, are summarized as follows: Police Fire Police Fire Prior to Prior to On or after On or after Hire date December 6, 2012August 30, 2012December 6, 2012August 30, 2012 Benefit formula3.0% @ 503.0% @ 502.0% @ 503.0% @ 55 Benefit vesting schedule5 years service5 years service5 years service5 years service Benefit paymentsmonthly for lifemonthly for lifemonthly for lifemonthly for life Retirement age50 - 5550 - 5550-5550 - 55 Monthly benefits, as a % of eligible compensation3.00%3.00%2.0% to 2.7%2.4% to 3% Required employee contribution rates9%9%9%9% Required employer contribution rates20.230%20.230%15.373%17.950% Safety Tier 1 Safety Tier 2 Although the Police PEPRA and Fire PEPRA plans do not require disclosure for the year ending June 30, 2015, the provisions for these plans were in effect at June 30, 2015, and are summarized as follows: Police PEPRAFire PEPRA On or after On or after Hire date January 1, 2013January 1, 2013 Benefit formula 2.7% @ 57 2.7% @ 57 Benefit vesting schedule 5 years service5 years service Benefit payments monthly for lifemonthly for life Retirement age 50-57 50-57 Monthly benefits, as a % of eligible compensation 2.0% to 2.7%2.0% to 2.7% Required employee contribution rates 12.00%12.25% Required employer contribution rates 11.923%11.923% The Safety Tier 1 plans are closed to new entrants. 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 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 City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 71  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 34 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) For the year ended June 30, 2015, the contributions recognized as part of pension expense for each Plan were as follows: Safety Tier 1Police Tier 2Fire Tier 2 Contributions - employer4,995,236$ 64,667$ 101,308$ Safety 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 Tier 1Police Tier 2Fire Tier 2 Plan's Proportionate Share of the Net Pension Liability51,588,107$ 13$ 4,300$ Proportionate Share of Net Pension Liability The City’s net pension 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 City’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: Proportionate share Safety Tier 1Police Tier 2Fire Tier 2 Percentage share at 6/30/2013 1.25383%0.00000%0.00012% Percentage share at 6/30/2014 1.37532%0.00000%0.00011% Change - Increase/(Decrease)0.12149%0.00000%-0.00001% Proportionate Share of Net Pension Liability 72  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 35 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) For the year ended June 30, 2015, the City recognized pension expense of $1,582,430 for the Safety Plans. At June 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred OutflowsDeferred Inflows of Resourcesof Resources Pension contributions subsequent to measurement date4,607,331$ $ Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions 672,169 Net differences between projected and actual earnings on plan investments6,049,476 Adjustment due to differences in proportions 4,602 361,280 Total 5,284,102$ 6,410,756$ Safety - All Plans Pension contributions subsequent to the measurement date of $4,607,331 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension income as follows: Year Ended June 30Amount 2016(1,974,585)$ 2017(1,934,955) 2018(1,824,445) (5,733,985)$ Safety - All Plans 73  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 36 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) Actuarial Assumptions. The total pension liabilities in the June 30, 2013 actuarial valuations for all Safety Plans were determined using the following actuarial assumptions: Safety - All Plans Valuation DateJune 30, 2013 Measurement Date June 30, 2014 Actuarial Cost Method Entry-Age Normal Cost Method Actuarial Assumptions: Discount Rate 7.50% Inflation 2.75% Payroll Growth Varies by Entry Age and Service Projected Salary Increase 3.3% - 14.2% (1) Investment Rate of Return 7.5% (2) Mortality (3) (1) Depending on age, service and type of employment. (2) Net of pension investment expenses, including inflation. (3) Derived using CalPERS' Membership Data for all Funds The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report. 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 found on the CalPERS website. 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 most 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 run 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. 74  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 37 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) 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 the 2017-18 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 long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound 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. 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 Real ReturnReal Return Asset Class AllocationYears 1 - 10 (a)Years 11+ (b) Global Equity 47.0%5.25%5.71% Global Fixed Income 19.0%0.99%2.43% Inflation Sensitive 6.0%0.45%3.36% Private Equity 12.0%6.83%6.95% Real Estate 11.0%4.50%5.13% Infrastructure and Forestland 3.0%4.50%5.09% Liquidity 2.0%-0.55%-1.05% (a) An expected inflation of 2.5% used for this period (b) An expected inflation of 3.0% used for this period Safety - All Plans 75  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 38 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the City’s proportionate share of the net pension liability for 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 1-percentage point lower or 1-percentage point higher than the current rate: Safety Tier 1Police Tier 2Fire Tier 2 1% Decrease6.50%6.50%6.50% Net Pension Liability74,300,225$ 23$ 7,399$ Current Discount Rate7.50%7.50%7.50% Net Pension Liability51,588,107$ 13$ 4,300$ 1% Increase8.50%8.50%8.50% Net Pension Liability32,874,303$ 5$ 1,746$ Safety - All Plans Pension Plan Fiduciary Net Position. Detailed information about each safety 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 $0 for the outstanding amount of contributions to the pension plan required for the year ended June 30, 2015. Other Post-Employment Benefits (OPEB) The City’s primary OPEB cost obligation is for retiree health benefits under the election to participate in the California Public Employees’ Retirement System (CalPERS) Health Benefit Program, an agent multiple-employer defined benefit OPEB plan, under the “unequal contribution option.” The City entered the CalPERS medical insurance program in 1993 under the Public Employees’ Medical and Hospital Care Act (PEMHCA). The required employer contribution was $122.00 per month in 2014-15. Retirees pay the differential monthly amount of the premium, which varies depending on the health benefits they select. Additionally, the City has established certain post-retirement health care benefits available to executive management employees appointed prior to August 2000. For 6 former employees, the City contributes to the cost of the retiree health insurance premiums if they elect to remain members of the City's group health plan. This provision ceases upon the death of the employee or upon the retired employee reaching age 65. During the fiscal year ended June 30, 2009, the City entered into an agreement with California Employers’ Retiree Benefit Trust (CERBT) to pre-fund the City’s OPEB liability. 76  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 39 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) Funding Policy. The contribution requirements of the plan members and the City are established and may be amended by the City. The City prefunds the plan through CERBT by contributing at least 100% of the annual required contribution. The annual required contribution (ARC) is an amount actuarially determined in accordance with the parameters of GASB standards. The City’s ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize the unfunded actuarial liability over a period of 30 years. The ARC for 2014-15 was $588,000. For fiscal year 2014-15, the City contributed $588,000 to the Plan, which fully funded the ARC. The City paid $323,400 to the CalPERS Health Benefit Program and retirees during the year and $264,600 to the CERBT. CERBT is a tax-qualified irrevocable trust organized under Internal Revenue Code Section 115 and established to pre- fund retiree healthcare benefits. CERBT issues a publicly available financial report including GASB disclosure information in aggregate with other CERBT participating employers. That report may be obtained by contacting CalPERS, 400 P Street, Sacramento, CA 95814. Annual OPEB Cost and Net OPEB Obligation. For the fiscal year ended June 30, 2015, the City’s annual OPEB cost (expense) of $588,000 was equal to the annual required contribution. The City’s Annual OPEB Cost, the percentage of Annual OPEB Cost contributed to the Plan (as described in the funding policy above) and the Net OPEB Obligation is as follows: Fiscal Year Ended Annual OPEB Cost Percentage of Annual OPEB Cost Contributed Net OPEB Obligation 6/30/2015588,000$ 100%- 6/30/2014576,000 100%- 6/30/2013558,000 100%- Funded Status and Funding Progress. The funded status of the plan as of June 30, 2013, the plan’s most recent actuarial valuation date, was as follows: Actuarial accured liability (AAL)6,954,000$ Actuartial value of plan assets 2,527,000 Unfunded actuarial accrued liability (UAAL)4,427,000 Funded ratio (actuarial value of plan assets/AAL)36.3% Covered payroll (active Plan members)27,163,000 UAAL as a percentage of covered payroll 16.3% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, 77  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 40 Note 7: Pension Plans and Other Post-Employment Benefits (Continued) and the healthcare 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 is presented as required supplementary information following the notes to the financial statements. The schedule presents multiyear trend information about whether the actuarial value of Plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short- term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the June 30, 2013 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial assumptions included a 7.00% investment rate of return (net of administrative expenses), which is below the expected 7.61% long- term investment return on CERBT investments and a 3% inflation assumption. The projected health care cost trend rates range from 8-8.3% for 2015 down to 5% after 2021. The unfunded actuarial accrued liability (UAAL) is being amortized over 30 years based on a level percentage of payroll. The remaining amortization period at June 30, 2015 was 23 years. Note 8: Interfund Transactions Interfund receivable and payable balances as of June 30, 2015 consist of the following: Interfund Receivables Interfund Payables General Fund3,412,891$ 30,774$ Capital Outlay3,283,156 Nonmajor Governmental Funds: Info Tech Replacement98,961 Total 3,412,891$ 3,412,891$ Interfund receivables and payables include temporary negative cash balances that result from the timing of cash flows at year end and the time lag between the dates that transactions are recorded in the accounting system and payment between funds are made. Liquidation of interfund receivables and payables typically occurs in the first quarter of the subsequent fiscal year. Interfund balances between governmental funds are not included in the government-wide Statement of Net Position. 78  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 41 Note 8: Interfund Transactions (Continued) Interfund transfers are used to move revenues from the fund with collection authorization to the debt service fund as debt service principal and interest payments become due or to move unrestricted revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations. This may include amounts provided as matching funds for various grant programs. Interfund transfers for the year ended June 30, 2015 consist of the following: Transfers InTransfers Out General Fund1,504,842$ 9,938,312$ Capital Outlay2,477,338 300,863 Transportation Impact Fee Fund49,388 140,165 Nonmajor Governmental Funds: Debt Service5,299,409 Tourism Business Improvement District27,270 Infrastructure60,000 Insurance342,700 Wastewater309,514 Gas Tax Fund1,188,599 TDA Fund54,808 Community Development Block Grand Fund72,602 IT Replacement Fund991,100 Open Space Protection Fund275,000 35,000 Public Art Fund77,100 Fleet Replacement Fund532,600 Affordable Housing17,000 Enterprise Funds: Water Fund20,800 Parking Fund69,738 5,400 Transit Fund1,400 Sewer Fund309,514 22,200 Total 12,061,331$12,061,331$ Note 9: Joint Ventures, Jointly Governed Organizations and Operating Agreements The City participates in three multi-governmental organizations: the Whale Rock Commission, the San Luis Obispo Regional Transit Authority, and the San Luis Obispo Council of Governments. The City also has an operating agreement related to Nacimiento Water Supply Project. The following provides a general description of each of these agencies and operating agreements along with a summary of financial information and indebtedness: 79  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 42 Note 9: Joint Ventures, Jointly Governed Organizations and Operating Agreements (Continued) Whale Rock Commission General Description. The Whale Rock Commission (Commission) was established on December 12, 1960 to govern the operations of the Whale Rock Reservoir. The Commission is composed of six voting members and two non-voting members: three voting members are appointed by the City; one is appointed by California Polytechnic State University; one by California Men's Colony; and one by the Director of Finance, State of California. The two non-voting members are position appointments: the Director of Water Resources, State of California; and the Water Superintendent, City of San Luis Obispo. The Commission is authorized by their respective agencies to establish policies for the operation of the Reservoir, to contract for the sale of excess water, and to approve the annual budget. The City, in accordance with established policies of the Commission, operates and maintains the Reservoir; prepares and recommends the annual budget; and maintains the fiscal records and funds of the Commission. The Whale Rock Agency Fund is used to account for the Commission's ongoing operating activities. The Commission has no long term debt. Ownership in the Reservoir is as follows: 55.05%, City of San Luis Obispo; 33.71%, California Polytechnic State University; and 11.24%, California Men's Colony. The City's share of the Commission's expenses are recorded as expenses of the Water Fund. All receipts and disbursements of the Commission are included in an Agency Fund. Financial Information and Indebtedness. In 1959, the City issued general obligation bonds to secure a future water supply to City residents. Some of the proceeds from the bonds were used to participate with the State of California in the development of the Reservoir. Participation, which is in proportion to the original investment, includes continued operation and maintenance of the facilities. Such indebtedness was directly attributable to provision of water service, and as such, all related indebtedness was recorded in the City's Water Enterprise Fund. These bonds matured in August 1999. The City's original investment in the Reservoir project aggregates $3,900,000, and was amortized on a straight-line basis over thirty-five years. Separate financial statements are available from the Whale Rock Commission, 879 Morro Street, San Luis Obispo, CA 93401. The following segment financial information for the Whale Rock Commission is presented as of and for the year ended June 30, 2015: Joint VentureCity Portion Total assets1,242,074$ 683,800$ Total liabilities148,571 81,800 Fund balance1,390,645 765,600 Total revenues918,668 505,700 Total expenditures999,171 550,000 Excess of revenues over (under) expenditures(80,503)$ (44,300)$   80  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 43 Note 9: Joint Ventures, Jointly Governed Organizations and Operating Agreements (Continued) San Luis Obispo Regional Transit Authority General Description. The City is a member of the San Luis Obispo Regional Transit Authority (Authority), which was established on February 27, 1990, to operate a joint public transportation system. The Authority is composed of the Cities of Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo, as well as the County of San Luis Obispo. The Authority is governed by a Board of Directors comprised of representatives of each of the seven cities, in addition to the five members of the Board of Supervisors. Each member of the Board has one vote. The Board has the authority to establish policies for the operation of the transit system and to adopt an annual budget. Each member makes an annual contribution to the agency for funding the adopted budget. Financial Information. The City allocates a portion of its Transportation Development Act funds directly to the Authority. During 2014-15 the City contributed approximately $744,023 of these funds to the Authority. The City's share of assets, liabilities, and fund equity has not been calculated by the Authority and therefore is not known to the City; however, based on the City's limited financial participation in the Authority, any such assets, liabilities, or equity are not believed to be significant to the basic financial statements taken as a whole. Separate financial statements are available from the Authority, 179 Cross Street, Suite A, San Luis Obispo, CA 93401. San Luis Obispo Council of Governments General Description. 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 governing board consists of twelve delegates, each with one vote that includes the five members of the County Board of Supervisors and one representative from each of the seven cities in the County. Financial Information. A portion of the City's Transportation Development Act funds are directly allocated to the SLOCOG. The City's share of assets, liabilities, and fund equity has not been calculated by SLOCOG and therefore is not known to the City; however, based on the City's limited financial participation in SLOCOG, any such assets, liabilities, or equity are not believed to be significant to the basic financial statements taken as a whole. Separate financial statements are available from SLOCOG, 1114 Marsh Street, San Luis Obispo, CA 93401. Nacimiento Water Supply Project General Description. In 2004, the Council adopted a resolution approving an agreement with the San Luis Obispo County Flood Control and Water Conservation District (District) for the design, construction and operations of the facilities required for the delivery of 3,380 acre-feet of water per year to the City of San Luis Obispo from the Nacimiento Water Supply Project (Project). The agreement includes conditions relative to the costs associated with the project and how these costs will be shared and paid by the participants in the project. 81  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 44 Note 9: Joint Ventures, Jointly Governed Organizations and Operating Agreements (Continued) Each project participant, including the City, has entered into an agreement in order to provide for the development, financing, construction, operation and maintenance of the Project. The agreement is a “take-or-pay” obligation: the City is obligated to pay amounts specified in the agreement whether or not water is delivered. The City is required to pay an amount equal to its share of various capital expenses relating to the funding of design costs, engineering, planning, environmental mitigation, equipping new facilities and/or construction efforts, accounting services, project administration and management, installation, grading, razing and building the Project. The City is also required to pay for its share of operating and maintenance costs. The City records these payments as operating expenses in its water enterprise fund. The City is required to make payments under its agreement solely from the revenues of its water system. The City agreed to establish, fix and collect rates and charges from the customers of the City’s water enterprise fund at levels sufficient to produce revenues equal to: (1) the costs of operating and maintaining the City’s water enterprise; plus (2) the contract payments, calculated in accordance with the delivery contract including the amounts allocated as the City’s share of capital projects installment debt service; plus (3) the coverage factor for the amounts allocated as the City’s share of capital projects installment debt service; and (4) under certain circumstances, that the City understands and agrees that the delivery contract may impose a surcharge following the occurrence of any payment default. Financial Information. In September 2007, the District sold water revenue bonds in the amount of $196 million for the construction of the Project. These bonds were refinanced in August 2015. In addition, the District sold water revenue bonds in the amount of $182 million. Based on the City’s share of construction costs, debt service and operating and maintenance, the following summarizes the City’s Project obligations for 2014-15 and five year projections for the 2015 bonds and the 2007 bonds that will remaining outstanding following the refunding. Actual 2014-15 5,351,623$ Projected: 2015-16 5,222,542 2016-17 4,988,512 2017-18 4,986,702 2018-19 4,985,758 2019-20 4,945,455 2021-25 24,740,788 2026-30 24,730,358 2031-35 24,739,466 2036-40 25,154,900 2041 5,368,221 Nacimiento Water Supply Obligations Separate financial statements are available from the San Luis Obispo County Flood Control and Water Conservation District, 1050 Monterey Street, San Luis Obispo, CA 93401. 82  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 45 Note 10: Risk Management California Joint Powers Insurance Authority The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 119 California public entities and is organized under a joint powers agreement pursuant to California Government Code § 6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. Each member pays an annual contribution to cover estimated losses for the coverage period. This initial funding is paid at the beginning of the coverage period. After the close of the coverage period, outstanding claims are valued. A retrospective deposit computation is then conducted annually thereafter until all claims incurred during the coverage period are closed on a pool-wide basis. This subsequent cost reallocation among members based on actual claim development can result in adjustments of either refunds or additional deposits required. The total funding requirement for self-insurance programs is estimated using actuarial models and prefunded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional information regarding the cost allocation methodology is provided below. Self-Insurance Programs of the Authority Liability. In the liability program claims are pooled separately between police and non-police exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess of $750,000 up to the reinsurance attachment point of $5 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $5 million to $10 million are paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible. The $2.5 million annual aggregate deductible is fully covered under a separate policy; as such no portion of it is retained by the Authority. Costs of covered claims from $10 million to $15 million are paid under two reinsurance contracts subject to a combined $3 million annual aggregate deductible. The $3.0 million annual aggregate deductible is fully retained by the Authority. (6) Costs of covered claims from $15 million to $20 million are paid under reinsurance agreements. (7) Costs of covered claims from $20 million to $50 million are paid under excess insurance policies. 83  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 46 Note 10: Risk Management (Continued) The overall coverage limit for each member including all layers of coverage is $50 million per occurrence. Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a pooled sub-limit of $30 million per occurrence. This $30 million subsidence sub-limit is composed of (a) $5 million retained within the pool’s SIR, (b) $15 million in reinsurance, subject to the same annual aggregate deductibles previously stated, and (c) $10 million in excess insurance. The excess insurance layer has a $10 million annual aggregate limit. Workers’ Compensation. In the workers’ compensation program claims are pooled separately between public safety (police and fire) and non-public safety exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of $2 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a reinsurance policy. Protection is provided per statutory liability under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members. Purchased Insurance Pollution Legal Liability Insurance. The City participates in the pollution legal liability insurance program (formerly called environmental insurance) which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City. Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has a limit of $50 million for the 3-year period from July 1, 2014 through July 1, 2017. Each member of the Authority has a $10 million sub-limit during the 3-year term of the policy. Property Insurance. The City of participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City property is currently insured according to a schedule of covered property submitted by the City to the Authority. City property currently has all-risk property insurance protection in the amount of $215,923,324. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retrospective adjustments. 84  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 47 Note 10: Risk Management (Continued) Earthquake and Flood Insurance. The City purchases earthquake and flood insurance on a portion of its property. The earthquake insurance is part of the property protection insurance program of the Authority. City property currently has earthquake protection in the amount of $0. There is a deductible of 5% per unit of value with a minimum deductible of $100,000. Premiums for the coverage are paid annually and are not subject to retrospective adjustments. Crime Insurance. The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retrospective adjustments. Special Event Tenant User Liability Insurance. The City further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is arranged by the Authority. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage from coverage in 2014-15. Separate financial statements are available from the California Joint Powers Insurance Authority, 8081 Moody Street, La Palma, CA 90623. Self-Insurance The City retains the risk for workers’ compensation losses incurred prior to joining the California Joint Powers Insurance Authority. Several member agencies of the now dissolved Central Coast Cities Self-Insurance Fund continue to participate in a non-risk sharing arrangement for claims management and the purchase of excess insurance. The participating agencies share a set of common guidelines and annually set aside premiums to pay their individual losses within their self-insured retentions. Losses are debited and investment income is credited to specific member accounts. The City has not incurred any losses in excess of insurance coverage. Claims liabilities in the governmental funds are generally liquidated by the General Fund. The last actuarial study to determine the undiscounted outstanding claims liability was completed for the year ended June 30, 2013. The liability was estimated based on the actuarial study and considered claims asserted and paid, and the time limitations for filing claims. There are no estimates for claims incurred but not reported because the time limit for filing claims has elapsed. The estimated asset (liability) at June 30, 2015 is calculated as follows: 85  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 48 Note 10: Risk Management (Continued) Self-insurance activity as of and for the year ended June 30, 2015 is summarized is as follows: Interest earnings 3,477$ Claims expense (152,670) Estimated liability for reported claims and settlement expenses(1,049,726) Assets on deposit 1,413,854 Estimated unpaid claims asset (liability)364,128$ Changes in the balances of claim liabilities during the past two fiscal years are as follows: Estimated unpaid claims asset (liability) June 30, 2013462,057$ (Claim payments and related expenditures) reimbursement(126,507) Decrease in estimated claims liability June 30, 2014277,370 Interest earnings 4,297 Estimated unpaid claims asset (liability) June 30, 2014617,217 (Claim payments and related expenditures) reimbursement(152,670) Increase in estimated claims liability June 30, 2015(103,896) Interest earnings 3,477 Estimated unpaid claims asset (liability) June 30, 2015364,128$ Note 11: Operating Lease The City entered into an operating lease in October 2014 for the use of various office equipment. Total cost for the lease was $9,844 for the year ended December 31, 2015. At June 30, 2015, the future minimum lease payments were as follows: For the Year Ending June 30, 201619,941$ 201720,282 201820,629 201920,982 202010,625 92,459$ Note 12: Commitments and Contingencies Litigation The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are adequately covered by insurance and not expected to result in a material adverse financial impact on the City. 86  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 49 Note 12: Commitments and Contingencies (continued) Grant Awards Under the terms of Federal and State grants, audits may be required and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to requests for reimbursement to the grantor agencies. City management believes disallowances, if any, will be immaterial. Note 13: Construction and Other Significant Commitments Construction and other significant commitments as of June 30, 2015, including encumbrances outstanding at year-end, are as follows: General Fund 1,516,180$ Special Revenue Funds 98,900 Capital Project Funds 12,746,387 Enterprise Funds: Water 1,638,811 Sewer 873,502 Parking 126,601 Transit 57,548 Total 17,057,929$   Long term construction contracts are billed and paid on a percentage completion basis by construction phase. Note 14: Fund Balance Deficiency At June 30, 2015, the City had a negative fund balance in the Community Development Block Grant (CDBG) Fund and the Information Technology Replacement Fund of $83 and $159,846, respectively. Note 15: Subsequent Events Half Percent Sales Tax Measure. The measure known as Measure Y ended on March 2015 and was replaced by Measure G. The Half Percent Sales Tax was approved by approximately 70 percent of voters in November 2014 and provides an eight year extension of the local general sales tax measure. This funding enables the City to provide important and valued essential services to the community. Water Rates. As a result of the drought and State requirements for water conservation, water sales have decreased over the last year. The City Council approved an increase to the base fee (or minimum charge) as well as drought surcharges on both the base fee and tiered volume charges for 2015-17 during a public hearing held on June 16, 2015. The Water 87  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 50 Note 15: Subsequent Events (Continued) Fund Review, utilizing its complete portable water distribution system master plan and system modeling, addressed the highest priority capital improvement projects. City Council adopted reserve policies and supports the provision of high quality, safe and reliable water services to the community. Note 16: New Accounting Standards Accounting Standards Adopted 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 were 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. The provisions of Statement No. 70 were effective for periods beginning after June 15, 2013. Implementation of GASB Statements No. 69 and 70 did not have a significant impact on the financial statements of the City. In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of Statement No. 27, which addresses accounting and financial reporting for pensions that are provided to the employees of state and local governmental employers. The provisions of Statement No. 68 are effective for fiscal years beginning after June 15, 2014. In November 2013, GASB issued Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68. This Statement addresses an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer on non-employer contributing entity to a defined benefit pension plan after the measurement date of the government’s beginning net pension liability. The provisions of Statement No. 71 are required to be applied simultaneously with the provisions of Statement No. 68, effective for fiscal years beginning after June 15, 2014. Implementation of GASB Statements No. 68 and 71 for the City’s June 30, 2015 financial statements resulted in a restatement of beginning net position as of July 1, 2014. See Notes 7 and 17 to the financial statements for further discussion. 88  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 51 Note 16: New Accounting Standards (Continued) New Accounting Standards 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 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 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 financial statements. 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 financial statements. 89  City of San Luis Obispo, California Notes to the Financial Statements June 30, 2015 Page 52 Note 16: New Accounting Standards (Continued) 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 17: Prior Year Restatements The City implemented GASB Statement No. 68, Financial Reporting for Pensions – an amendment of Statement No. 27, and GASB Statement No. 71, Pension Transitions 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, 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 $120,228,659 to reduce beginning net position has been made to reflect the cumulative impact of implementing these standards. In the current and prior year, the City recorded excess development services revenue and Transportation Development Act (TDA) revenue as unearned revenue. A prior year restatement was required to properly decrease unearned revenue and increase fund balance in the General Fund by $502,205 for the excess development services revenue that should have been recorded in a prior period. A prior year restatement was also required to properly decrease unearned revenue and increase net position in the Transit Fund by $1,050,746 for the TDA revenue that should have been recorded in a prior period. REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) 91  City of San Luis Obispo, California Budgetary Comparison Schedule General Fund For the Fiscal Year Ended June 30, 2015 Variance with Final Budget OriginalFinalPositive BudgetBudgetActual(Negative) Revenues: Taxes and franchise fees: Sales and use tax - general15,276,755$ 15,232,511$ 15,272,683$ 40,172$ Sales and use tax - Half Percent Sales Tax6,775,000 6,902,000 7,136,297 234,297 Sales tax - Prop 172 350,400 411,000 409,590 (1,410) Property tax8,933,600 9,263,333 9,631,890 368,557 Transient occupancy tax6,289,800 6,517,974 6,805,742 287,768 Utility users tax5,499,970 5,345,343 5,211,207 (134,136) Property tax in lieu of VLF3,721,591 3,849,341 3,849,341 - Franchise taxes2,540,199 2,676,149 2,790,077 113,928 Business tax2,184,515 2,184,515 2,203,208 18,693 Real property transfer tax180,000 180,000 298,191 118,191 Total taxes51,751,830 52,562,166 53,608,226 1,046,060 Fines, forfeitures and penalties 156,000 156,000 184,320 28,320 Use of money and property 181,685 331,700 378,644 46,944 Subventions and grants: Homeowners' property tax relief74,000 74,000 73,867 (133) Other in-lieu22,000 22,000 36,990 14,990 Police training grant (POST)40,000 40,000 37,706 (2,294) COPS grant AB 3229100,000 100,000 106,230 6,230 Mutual aid reimbursements245,979 376,651 130,672 State SB90 refunds67,259 363,513 296,254 Transportation grants 85,000 165,000 48,907 (116,093) Other State and Federal grants 6,000 97,524 234,510 136,986 Total subventions and grants 327,000 811,762 1,278,374 466,612                       See notes to required supplementary information. 92  City of San Luis Obispo, California Budgetary Comparison Schedule General Fund, continued For the Fiscal Year Ended June 30, 2015 Page 2   Variance with Final Budget OriginalFinalPositive BudgetBudgetActual(Negative) Charges for services: Public safety: Police425,000$ 471,813$ 627,345$ 155,532$ Fire: Cal Poly fire services270,684 270,684 270,684 - Medical emergency recovery 170,000 172,209 130,001 (42,208) Fire safety/hazardous materials permits 130,000 130,000 134,284 4,284 Multi-dwelling unit inspections 194,000 194,000 194,361 361 Other fire revenues 125,000 115,394 125,034 9,640 Development review: Planning and zoning fees 317,228 317,228 327,608 10,380 Construction plan and check inspections 2,238,572 3,296,390 3,616,392 320,002 Infrastructure plan check and inspections 374,900 600,000 741,571 141,571 Fire plan check and inspections 305,000 350,000 449,476 99,476 Encroachment permits 160,700 160,700 138,915 (21,785) Leisure, cultural and social services: Adult athletic fees 122,400 122,400 133,467 11,067 Youth athletic fees 33,700 33,700 32,826 (874) Instruction fees 83,900 91,000 90,921 (79) Special event fees 92,700 95,255 86,272 (8,983) Rental and use fees 161,500 162,406 204,736 42,330 Children services 511,600 603,878 743,534 139,656 Teens & seniors 500 1,500 2,218 718 Aquatics 249,700 255,792 255,872 80 Golf course 291,700 291,700 331,918 40,218 General government: Other service charges 408,000 388,000 394,283 6,283 Total charges for services 6,666,784 8,124,049 9,031,718 907,669 Other revenues: Insurance refunds 20,000 20,000 14,207 (5,793) Sale of surplus property 4,210 9,118 4,908 Other 35,000 61,185 110,939 49,754 Total other revenues 55,000 85,395 134,264 48,869 Total Revenues 59,138,299 62,071,072 64,615,546 2,544,474 93  City of San Luis Obispo, California Budgetary Comparison Schedule General Fund, continued For the Fiscal Year Ended June 30, 2015 Page 3 Variance with Final Budget OriginalFinalPositive BudgetBudgetActual(Negative) Expenditures: Public Safety: Police protection: Administration1,470,800$ 1,473,427$ 1,360,205$ 113,222$ Investigations2,565,700 2,585,003 2,569,695 15,308 Neighborhood services233,300 234,235 225,523 8,712 Support services2,311,100 2,386,536 2,340,206 46,330 Patrol services7,115,700 7,163,670 6,991,387 172,283 Traffic safety773,700 772,909 676,829 96,080 Total police protection14,470,300 14,615,780 14,163,845 451,935 Fire and environmental safety: Administration797,100 883,986 811,339 72,647 Emergency response7,718,500 7,968,477 7,805,146 163,331 Fire Apparatus Services337,300 365,191 347,192 17,999 Hazard protection698,100 737,638 695,361 42,277 Training113,900 202,690 175,719 26,971 Technical services25,500 31,100 37,908 (6,808) Disaster preparedness9,700 23,670 19,567 4,103 Total fire and environmental safety 9,700,100 10,212,752 9,892,232 320,520 Total public safety24,170,400 24,828,532 24,056,077 772,455 Transportation: Transportation planning and engineering688,800 792,830 690,874 101,956 Street and sidewalk maintenance1,337,200 1,354,387 1,233,751 120,636 Traffic signals and street lights520,400 523,256 472,410 50,846 Creek and flood protection774,900 875,731 666,318 209,413 Total transportation3,321,300 3,546,204 3,063,353 482,851 94  City of San Luis Obispo, California Budgetary Comparison Schedule General Fund, continued For the Fiscal Year Ended June 30, 2015 Page 4   Variance with Final Budget OriginalFinalPositive BudgetBudgetActual(Negative) Leisure, Cultural and Social Services: Recreation programs: Recreation administration708,400$ 729,102$ 703,543$ 25,559$ Aquatics/Sinsheimer park facilities326,900 335,887 353,342 (17,455) Children's services885,200 895,219 914,456 (19,237) Facilities226,400 240,989 219,750 21,239 Special events257,400 263,238 225,410 37,828 Recreational sports315,100 321,890 328,837 (6,947) Golf course588,900 603,868 550,409 53,459 Ranger services316,800 322,071 302,887 19,184 Maintenance programs: Swim center maintenance456,500 464,645 449,524 15,121 Parks and landscape maintenance2,388,200 2,398,966 2,217,860 181,106 Tree maintenance432,800 436,104 451,495 (15,391) Cultural and social service programs: Human relations288,400 288,400 237,508 50,892 Cultural activities295,400 295,400 295,377 23 Total leisure, cultural and social services7,486,400 7,595,779 7,250,398 345,381 Community Development: Planning: Commissions and communities34,500 34,500 36,649 (2,149) Community development administration581,878 638,649 649,462 (10,813) Long-range planning760,971 743,353 731,533 11,820 Development review537,100 917,863 881,307 36,556 Development services237,500 1,082,611 497,430 585,181 Natural resource protection 355,000 438,870 380,783 58,087 Construction regulation: Building and safety 1,434,140 1,501,684 1,464,408 37,276 Engineering development review 621,624 619,542 614,701 4,841 CIP project engineering 1,786,300 1,802,636 1,762,270 40,366 Economic health: Community promotion 388,200 399,079 380,806 18,273 Economic development 291,300 255,516 205,819 49,697 Total community development 7,028,513 8,434,303 7,605,168 829,135 95  City of San Luis Obispo, California Budgetary Comparison Schedule General Fund, continued For the Fiscal Year Ended June 30, 2015 Page 5 Variance with Final Budget OriginalFinalPositive BudgetBudgetActual(Negative) General Government: Legislation: Council143,800$ 148,200$ 133,963$ 14,237$ General administration: City administration656,300 690,840 664,301 26,539 Public works administration924,900 937,062 858,070 78,992 Legal services: City attorney556,400 632,801 570,898 61,903 City clerk services: Administration and records535,200 552,051 548,094 3,957 Organization support services: Human resource administration758,400 788,597 657,651 130,946 Risk management3,481,782 3,513,109 3,442,135 70,974 Finance and information technology administration461,400 486,348 542,734 (56,386) Revenue management775,341 816,467 666,409 150,058 Accounting607,900 644,166 563,176 80,990 Finance non departmental479,200 317,859 317,859 Network services2,448,800 2,618,791 2,527,764 91,027 Geographic information services445,600 459,197 444,763 14,434 Support services240,800 212,884 130,257 82,627 Wellness program16,800 16,800 13,754 3,046 Building and vehicle maintenance: Buildings1,120,600 1,125,164 1,045,452 79,712 Vehicle and equipment maintenance1,137,300 1,171,033 1,101,444 69,589 Total general government before cost reimbursement14,790,523 15,131,369 13,910,865 1,220,504 Cost reimbursement (Note 3 to RSI)(3,451,208) (3,451,208) (3,451,208) - Total general government 11,339,315 11,680,161 10,459,657 1,220,504 Total Expenditures 53,345,928 56,084,979 52,434,653 3,650,326 Excess of Revenues Over Expenditures 5,792,371 5,986,093 12,180,893 (1,105,852) Other Financing Sources (Uses) Transfers in 1,238,659 1,580,562 1,504,842 75,720 Transfers out (10,218,173) (10,750,754) (9,938,312) (812,442) Total other financing uses (8,979,514) (9,170,192) (8,433,470) (736,722) Net Change in Fund Balance (3,187,143) (3,184,099) 3,747,423 (1,842,574) Fund Balance, Beginning of the Year 14,857,709 20,797,590 20,317,179 (480,411) Prior Year Restatements 502,205 502,205 Fund Balance, Beginning of the Year, as Restated 14,857,709 20,797,590 20,819,384 21,794 Fund Balance, End of Year 11,670,566$17,613,491$24,566,807$ (1,820,780)$ 96  City of San Luis Obispo, California Schedule of Funding Progress for Other Post-Employment Benefits (OPEB) For the Fiscal Year Ended June 30, 2015 The table below shows an analysis of the actuarial value of assets as a percentage of the actuarial accrued liability and the unfunded actuarial accrued liability (UAAL) as a percentage of the annual covered payroll as of the three most recent actuarial report for the period ending June 30, 2015. ActuarialActuarialEntry AgeUnfunded UAAL as a ValuationValueActuarialActuarial AccruedFunded Covered Percentage of Dateof AssetsAccrued LiabilityLiabilityRatioPayrollCovered Payroll 6/30/20132,527,000$ 6,954,000$ 4,427,000$ 36.3%27,163,000$ 16.3% 6/30/20111,611,000$ 6,063,000$ 4,452,000$ 26.6%26,960,000$ 16.5% 6/30/2009540,000$ 4,748,000$ 4,208,000$ 11.4%30,006,000$ 14.0% See notes to required supplementary information. 97  City of San Luis Obispo, California Schedule of the Changes in the Net Pension Liability and Related Ratios Miscellaneous Agent Multiple-Employer Plan June 30, 2015 Last 10 Years * Measurement Period 2013-14 * Total Pension Liability Service Cost 3,703,087$ Interest on total pension liability12,756,967 Benefit payments, including refunds of employee contributions(8,258,611) Net change in total pension liability 8,201,443 Total pension liability - beginning 172,370,651 Total pension liability - ending (a)180,572,094$ Plan fiduciary net position Contributions - employer4,631,254$ Contributions - employee1,664,654 Net investment income17,746,607 Benefit payments (8,258,611) Net change in plan fiduciary net position 15,783,904 Plan fiduciary net position - beginning 102,159,529 Plan fiduciary net position - ending (b)117,943,433$ Net pension liability (asset) - ending (a) - (b)62,628,661$ Plan fiduciary net position as a percentage of the total pension liability 65.32% Covered - employee payroll 19,235,818$ Net pension liability as percentage of covered-employee payroll 325.58% * Fiscal year 2015 was the 1st year of implementation, therefore only one year is shown. Information is required only for measurement periods for which GASB 68 is applicable. The measurement period is the year ended June 30, 2014. See notes to required supplementary information. 98  City of San Luis Obispo, California Schedule of the Plan Contributions Miscellaneous Agent Multiple-Employer Plan June 30, 2015 Last 10 Years * 2013-14 * Actuarially determined contribution4,631,254$ Contributions in relation to the actuarially determined contributions(4,631,254) Contribution deficiency (excess)-$ Covered-employee payroll19,235,818 Contributions as a percentage of covered-employee payroll24.08% * Fiscal year 2015 was the 1st year of implementation, therefore only one year is shown. Information is required only for measurement periods for which GASB 68 is applicable. The measurement period is the year ended June 30, 2014. See notes to required supplementary information. 99  City of San Luis Obispo, California Schedule of the City’s Proportionate Share of the Net Pension Liability Safety Cost-Sharing Plans As of June 30, 2015 Last 10 Years * Safety Tier 1Police Tier 2Fire Tier 2 6/30/2014 *6/30/2014 *6/30/2014 * Plan's Proportion of the Net Pension Liability0.82906%0.00000%0.00007% Plan's Proportionate Share of the Net Pension Liability51,588,107$ 13$ 4,300$ Plan's Covered-Employee Payroll10,280,769$ 68,918$ 418,432$ Plan's Proportionate Share of the Net Pension Liability as a Percentage of its Covered-Employee Payroll501.79%0.02%1.03% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability69.58%82.43%81.42% Plan's Proportionate Share of Aggregate Employer Contributions4,248,447$ 2$ 533$ *Fiscal year 2015 was the 1st year of implementation, therefore only one year is shown. Historical information is required only for measurement periods for which GASB 68 is applicable. The measurement period is the year ended June 30, 2014. Safety See notes to required supplementary information. 100  City of San Luis Obispo, California Schedule of the City’s Contributions Safety Cost-Sharing Plans As of June 30, 2015 Last 10 Years * Safety Tier 1Police Tier 2Fire Tier 2 2013-14 *2013-14 *2013-14 * Actuarially determined contribution4,060,236$ 64,667$ 101,308$ Contributions in relation to the actuarially determined contributions(4,995,236) (64,667) (101,308) Contribution deficiency (excess)(935,000)$ -$ -$ Covered-employee payroll10,280,769 68,918 418,432 Contributions as a percentage of covered-employee payroll48.59%93.83%24.21% Safety * Fiscal year 2015 was the 1st year of implementation, therefore only one year is shown. Information is required only for measurement periods for which GASB 68 is applicable. The measurement period is the year ended June 30, 2014. See notes to required supplementary information. 101  City of San Luis Obispo, California Notes to Required Supplementary Information June 30, 2015 Budgetary Comparison Schedule 1. The budget is prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting principles. 2. Outstanding encumbrances from the prior fiscal year are not reflected in the original budget column but are included in the final budget amounts. 3. All the City’s general government and engineering programs are initially accounted and budgeted for in the General Fund. However, certain of these support service programs also benefit the City’s enterprise and agency fund operations, and accordingly, transfers are made from these funds to reimburse the General Fund for these services. The transfers are based on a Cost Allocation Plan prepared for this purpose which distributes the shared costs in a uniform, consistent manner in accordance with U.S. generally accepted accounting principles. Excess of Expenditures Over Appropriations 1. At June 30, 2015 expenditures exceeded appropriations in the General Fund as noted below. This does not represent a violation of City budget policies because no department’s total expenditures exceeded their total appropriations within the General Fund. Department/Division Budget Variance Fire: Technical services6,808 Recreation: Aquatics/Sinsheimer park facilities17,455 Children's services19,237 Recreational sports6,947 Public Works: Tree maintenance15,391 Community Development: Commissions and communities2,149 Community development administration10,813 Finance and Information Technology: Administration 56,386 Other Post-Employment Benefits Plan Schedule of Funding Progress 1. The schedule shows an analysis of actuarial value of assets as a percentage of the actuarial accrued liability and the unfunded actuarial accrued liability (UAAL) as a percentage of the annual covered payroll as of the most recent actuarial report for the period ending June 30, 2013. The actuarial report for the period ending June 30, 2013 was used to determine the 2014-15 ARC. 2. This schedule of funding progress presents multiyear trend information about whether the actuarial value of Plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 102  City of San Luis Obispo, California Notes to Required Supplementary Information June 30, 2015 Page 2 Schedule of the Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan 1. Benefit changes. The figures shown do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013. This applies for voluntary benefit changes as well as any offers of Two years Additional Service Credit (a.k.a. Golden Handshakes). 2. Changes in assumptions. There were no changes in assumptions. Schedule of the Plan Contributions—Miscellaneous Plan The actuarial methods and assumptions used to set the actuarially determined contributions for Fiscal Year 2013-14 were from the June 30, 2011 public agency valuations. Actuarial cost methodEntry Age Normal Amortization methodFor details, see June 30, 2011 Funding Valuation Report. Remaining amortization periodFor details, see June 30, 2011 Funding Valuation Report. Inflation2.75% Salary increasesVaries by Entry Age and Service Payroll growth3.00% The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Pre-retirement and post-retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. Mortality The probabilities of retirement are based on the 2010 CalPERS experience study for the period from 1997 to 2007. Retirement age 7.50% net of pension plan investment and administrative expenses; includes inflation. Investment rate of return Actuarial Value of Assets. For details, see June 30, 2011 Funding Valuation Report. Asset valuation method Schedule of the City’s Proportionate Share of the Net Pension Liability – Cost Sharing The Plan’s proportionate share of aggregate contributions may not match the actual contributions made by the employer during the measurement period. The Plan’s proportionate share of aggregate contributions is based on the Plan’s proportion of fiduciary net position as well as any additional side fund (or unfunded liability) contributions made by the employer during the measurement period. The Plan’s proportionate share of aggregate employer contributions is not required to be displayed by GASB 68 for employers participating in cost-sharing plans, but it is being shown here because it is used in the calculation of the Plan’s pension expense. 103  City of San Luis Obispo, California Notes to Required Supplementary Information June 30, 2015 Page 3 Schedule of the City’s Contributions – Cost Sharing 1. Benefit changes. The figures shown 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. 2. Changes in assumptions. There were no changes in assumptions.    OTHER SUPPLEMENTARY INFORMATION AND COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 105  City of San Luis Obispo, California Half Percent Sales Tax Measure Funding Schedule For the Fiscal Year Ended June 30, 2015 The following summarizes revenues and expenditures for the current year in responding to Half Percent Sales Tax Measure priorities. Operating Programs ActualActual Encumbered/ Assigned Preservation of Essential Services Public Safety Police Services914,952$ $ $ Police Vehicles 266,970 50,009 Public Safety Mobile Data Computers 372,500 Fire Prevention & Training 445,336 Fire Engine/Truck Replacement: Debt Service 247,483 Fire Station #2 Remodel 18,514 11,356 Quickest Route Software 1,970 Maintenance Services Streets, Sidewalks and Traffic Signal Operations 174,095 Creek & Flood Protection447,140 53,162 427,859 Parks77,837 504,500 645,125 Project Management & Inspection111,130 Neighborhood Wellness Enhanced Building & Zoning Code Enforcement107,273 "SNAP" Enhancement53,079 Neighborhood Code Enforcement Specialists116,769 Traffic Congestion Relief Traffic Safety Report Implementation 6,045 43,955 Traffic Operations Report Implementation 30,000 Traffic Engineer91,295 Traffic Sign Maintenance 40,000 Bicycle Facility Improvements 29,666 151,398 Neighborhood Traffic Improvements 11,374 23,780 Open Space Preservation Open Space Acquisition 400,000 Froom Ranch Improvement2,687 Ranger Services Staffing54,426 Open Space Wildfire Reduction5,000 Capital Improvement Plan 106  City of San Luis Obispo, California Half Percent Sales Tax Measure Funding Schedule, continued For the Fiscal Year Ended June 30, 2015 Page 2 Operating Programs ActualActual Encumbered/ Assigned Capital Improvement Plan Infrastructure Maintenance & Improvements Santa Rosa Skatepark$ 949,521$ 260,466$ Street Reconstruction & Resurfacing 458,203 1,177,225 Broad Street Creek Bank Reinforcement9,736 5,893 Downtown Renewal 554,404 133,096 Facility Maintenance 40,618 81,353 Jack House Exterior Painting 25,000 Johnson Avenue Underpass Pump 78,799 111,201 Mission Plaza Railing Upgrade 38,821 21,179 Olympic Pool Replastering 3,606 325,869 Pedestrian and Bicycle Pathway Maintenance 60,000 Sidewalk Repairs 21,733 3,267 Tree Maintenance Equipment 100,400 Playground Equipment Replacement33,750 169,391 Sinsheimer Stadium Bldg. Assessment 26,776 Sinsheimer Parking Lot Paving 79,834 Mission Plaza Master Plan 100,000 I.T. Replacement Fund 383,934 Facility Maintenance Reserve 206,521 Total Current Projects 2,598,332$ 4,086,851$ 4,712,098$ 107  City of San Luis Obispo, California Half Percent Sales Tax Measure Funding Schedule For the Fiscal Year Ended June 30, 2015 The following summarizes revenues and expenditures for all years in responding to Half Percent Sales Tax Measure priorities. Measure Y Revenues & Uses Summary Revenues: Carryover from 2006-071,000,000$ Revenues for 2007-085,996,595 Revenues for 2008-095,641,393 Revenues for 2009-105,252,509 Revenues for 2010-115,616,332 Revenues for 2011-126,237,468 Revenues for 2012-136,493,836 Revenues for 2013-146,774,365 Revenues for 2014-157,136,297 Total Revenues50,148,795 Uses: Operating programs 2007-08(1,463,693) Capital improvement plan 2007-08(2,434,107) Operating programs 2008-09(2,418,295) Capital improvement plan 2008-09(3,684,405) Operating programs 2009-10(2,267,103) Capital improvement plan 2009-10(2,161,197) Operating programs 2010-11(2,430,185) Capital improvement plan 2010-11(3,443,015) Operating programs 2011-12(2,203,890) Capital improvement plan 2011-12(3,967,510) Operating programs 2012-13(2,225,125) Capital improvement plan 2012-13(2,320,712) Operating programs 2013-14(2,444,662) Capital improvement plan 2013-14(2,861,336) Operating programs 2014-15(2,598,332) Capital improvement plan 2014-15(4,086,851) Total Uses(43,010,418) Encumbered or assigned for carryover for future year expenditures(4,712,098) Net available for future year appropriations 2,426,279$ 108  City of San Luis Obispo, California Major Governmental Funds For the Fiscal Year Ended June 30, 2015 The City maintains the following major governmental funds: Capital Outlay Fund This fund was established to account for all of the City’s construction projects and capital purchases in excess of $25,000 with the exception of those funded through non-major capital project funds and Enterprise Funds. Financing is provided primarily through transfers from the General Fund, and from State and Federal grants. While budgets are prepared for the City’s capital outlay fund, the capital projects generally span more than one year and are effectively controlled at the project level; accordingly, budgetary comparisons are not presented. Transportation Impact Fee Fund This fund was established to account for construction projects that will be financed primarily with transportation impact fees. 109  City of San Luis Obispo, California Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Transportation Impact Fee Fund For the Fiscal Year Ended June 30, 2015 Variance with Final Budget Positive OriginalFinalActual (Negative) Revenues Use of money and property 10,000$ 10,000$ 48,584$ 38,584$ Subventions and grants221,379 350,172 128,793 Charges for services177,200 177,200898,573721,373 Other revenues 63,791 63,791 Total Revenues187,200 408,579 1,361,120 952,541 Expenditures Capital projects Transportation4,000,00010,297,0623,856,367 (6,440,695) Total Expenditures4,000,000 10,297,062 3,856,367 (6,440,695) Excess of Expenditures Over Revenues(3,812,800) (9,888,483) (2,495,247) 7,393,236 Other Financing Uses: Proceeds from debt issuance7,500,000 7,823,972 323,972 Operating transfers in 49,388 49,388 - Operating transfers out (250,000) (140,165) 109,835 Net Change in Fund Balance (3,812,800) (2,589,095) 5,237,948 7,827,043 Fund Balance, Beginning of Year 166,300373,8003,641,701 3,267,901 Fund Balance, End of Year (3,646,500)$ (2,215,295)$ 8,879,649$ 11,094,944$ Budget 110  City of San Luis Obispo, California Nonmajor Governmental Funds For the Fiscal Year Ended June 30, 2015 The City maintains the following nonmajor governmental funds: Special Revenue Funds The City has established the following seven special revenue funds in order to account for the proceeds from revenue sources that are restricted or committed to expenditures for specified purposes. Budgets are prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting principles. Downtown Business Improvement District (BID) Fund. This fund has been established to account for the receipt of a surcharge derived from a supplemental assessment upon businesses within the Downtown Business Improvement District’s boundaries. Pursuant to the provisions of the Municipal Code, this surcharge is equal to $150.00 per year. Expenditures from the fund are limited to four basic purposes: decorating public places within the downtown; promoting public events in the downtown core; promoting trade activities; and improving parking in the downtown core. Transportation Development Act (TDA) Fund. The State of California has designated 1/4% of the sales tax levied statewide for local transportation purposes. Funding for this program was provided during the 1971 legislative session with the enactment of the Transportation Development Act, which extended the State sales tax to include purchases of gasoline. Revenues allocated to the City of San Luis Obispo under this program are divided into two categories: Article 3 funds, which are restricted for the improvement and maintenance of street systems including pedestrian and bicycle facilities; and Article 4 funds, which are restricted for public transit systems and are recorded directly in the Transit Fund. Under the City's Financial Plan policies, all TDA Article 3 revenues are allocated for alternative transportation purposes. The purpose of this fund is to account for these revenues. Tourism Business Improvement District (BID) Fund. This fund has been established to account for the receipt of a surcharge derived from assessments upon the lodging establishments within the City. The surcharge is equal to 2% of gross room rents. Expenditures from the fund are limited to the marketing and promotion of tourism. Gas Tax Fund. Portions of the tax rate per gallon levied by the State of California on all gasoline purchases are allocated to cities throughout the State on a population basis. These funds are restricted for expenditures by the State of California for street-related purposes only. Under the City's Financial Plan policies, all gas tax revenues are transferred to the General Fund for street maintenance purposes. Community Development Block Grant (CDBG) Fund. This fund has been established to account for federal funds received by the City specifically to benefit low and moderate income persons, aid in the elimination of blight, and meet other community development needs as allowed by block grant regulations. Law Enforcement Grants Fund. This fund has been established to account for public safety grant funds. Public Arts Contribution Fund. Public contributions to the public art program are accounted for in this fund along with the expenditures for public art projects funded by this revenue source 111  City of San Luis Obispo, California Nonmajor Governmental Funds For the Fiscal Year Ended June 30, 2015 Page 2 Insurance Fund. This fund was established to accumulate resources needed to pay for certain insurance and employee benefit program costs. Financing is primarily provided through operating transfers from the General Fund. Debt Service Fund The City has established one debt service fund to account for the payment and accumulation of resources related to governmental activities long-term debt principal and interest for the following debt issues. Budgets are prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting principles. The following governmental activity debt issuances are serviced by this fund. Capital Improvement Board 2005 Refunding Revenue Bonds. These bonds were issued to refinance the 1996 Lease Revenue Bonds. The original 1996 bonds were issued to accomplish several high priority capital improvement projects including the headquarters fire station, seismic safety and HVAC improvements to City Hall, Mission Plaza expansion, and various properties and street lighting system purchases. The Board has entered into a lease agreement with the City under which the City is responsible for making lease payments to fund the annual debt service requirements. Capital Improvement Board 2006 Lease Revenue Bonds. The bonds were issued to finance the purchase of a parking structure and office building at 919 Palm Street. Debt service related to the parking structure is recorded directly in the Parking Fund while debt service related to the City office building is recorded in the Debt Service Fund. The Board has entered into a lease agreement with the City under which the City is responsible for making lease payments to fund the annual debt service requirements. Capital Improvement Board 2009 Lease Revenue Bonds. The bonds were issued to finance the construction of the Public Safety Communications and Emergency Operations Center project. Debt service obligations on the bonds are recorded in the Water, Sewer and Parking and Debt Service Funds based on a proportionate share of the project benefits. The Board has entered into a lease agreement with the City under which the City is responsible for making lease payments to fund the annual debt service requirements. 2010 Fire Engine/Truck Lease-Purchase Financing. Lease-purchase financing was obtained in order to purchase a fire apparatus with 100-foot ladder. Debt service obligations are recorded in the Debt Service Fund. Capital Improvement Board 2012 Refunding Lease Revenue Bonds. On May 24, 2012 the Board issued $5,050,000 of 2012 Lease Revenue Refunding Bonds. These bonds were issued to refinance the outstanding 2001 Lease Revenue Bonds, Series C, which will be redeemed on December 1, 2029. The 2001 bonds were used to purchase property and build athletic fields; purchase property for police station expansion; purchase Downtown Plan properties. 112  City of San Luis Obispo, California Nonmajor Governmental Funds For the Fiscal Year Ended June 30, 2015 Page 3 The Board has entered into a lease agreement with the City under which the City is responsible for making lease payments to fund the annual debt service requirements. 2013 Fire Engine/Truck Lease-Purchase Financing. Lease-purchase financing was obtained in order to purchase an engine. Debt service obligations are recorded in the Debt Service Fund. Capital Improvement Board 2014 Lease Revenue Bonds. In 2014 the Board issued $7,580,000 of 2014 Lease Revenue Bonds. These bonds were issued to finance the expansion of the Los Osos Valley Road interchange at U.S. 101. Debt service related to the interchange is recorded in the Debt Service Fund. The Board has entered into a lease agreement with the City under which the City is responsible for making lease payments to fund the annual debt service requirements. Capital Projects Funds The following nine capital project funds are used by the City to account for the financial resources used in the construction or acquisition of major capital facilities or equipment (with the exception of those financed primarily through proprietary funds). The City also has two other capital projects funds that are considered major governmental funds. Budgets are prepared using the modified accrual basis of accounting consistent with U.S. generally accepted accounting principles on a multi-year project basis. Accordingly, budgetary comparisons for the capital projects funds are not presented in the accompanying other supplementary information. Parkland Development Fund. This fund was established to account for construction projects related to park acquisition and development that will be financed primarily with park in-lieu fees. Open Space Protection Fund. This fund was established to account for projects funded as part of the City’s open space protection program to enhance open space and agricultural conservation on lands within and surrounding the City, improve passive recreational and nature study opportunities, and restore and enhance wildlife habitat. Projects in this fund will be financed with General Fund contributions, outside contributions, and State and Federal grants. Airport Area Impact Fee Fund. This fund was established to account for interim annexation fees collected for the specific plan and related infrastructure master plans for annexing the airport area to the City. Los Osos Valley Road (LOVR) Sub-Area Fee Fund. This fund was established to account for sub-area impact fees collected from development activity in the Los Osos Valley Road sub-area boundary. Waste Water Impact Fee Fund. This fund was established to account for the collection of development impact fees collected from the Tank Farm Road, Irish Hills, and Silver City sub-areas. 113  City of San Luis Obispo, California Nonmajor Governmental Funds For the Fiscal Year Ended June 30, 2015 Page 4 Fleet Replacement Fund. This fund was established to account for the financing and replacement of vehicles for all General Fund programs of the City. Financing is primarily provided through operating transfers from the General Fund as well as from interest earnings and sales of surplus property. Information Technology Replacement Fund. This fund was established in FY 12-13 to account for the financing and replacement of information technology for all General Fund programs of the City. Financing is primarily provided through operating transfers from the General Fund as well as from interest earnings. Affordable Housing Program. This fund accumulates revenues from inclusionary housing fees for capital projects related to affordable housing programs and projects. Infrastructure Fund. This fund was established to provide financing to infrastructure projects that have a wide community benefit. Financing is primarily provided through operating transfers from the General Fund. 114  City of San Luis Obispo, California Combining Balance Sheet Nonmajor Governmental Funds For the Fiscal Year Ended June 30, 2015 Downtown BID Transportation Development Act (TDA)Tourism BIDGas Tax Assets Cash and cash equivalents 2,387$ $ 55,843$ $ Investments 164,762 Accounts receivable 157,455 Due from other governments Accrued interest receivable 341 Prepaid expense Cash held by fiscal agent Total assets 2,387$ -$ 378,401$ -$ Liabilities and Fund Balance (Deficit) Liabilities: Accounts payable1,265$ $ 30,720$ $ Accrued liabilities 14,653 Due to other funds Other liabilities Total liabilities 1,265 - 45,373 - Fund balance: Restricted for: Debt service Law enforcement grant programs Committed to: Affordable housing programs Impact fee programs Open space programs Parkland development programs Assigned to: Subsequent years expenditures 1,122 333,028 Unassigned Total fund balance (deficit)1,122 - 333,028 - Total liabilities and fund balance 2,387$ -$ 378,401$ -$ Special Revenue Funds 115  Community Development Block Grant (CDBG) Law Enforcement Grants Public Art ContributionsInsuranceDebt Service 17$ 173,068$ 97,959$ 342,700$ 16,710$ 289,021 283,111 41,935 43,846 282 665 601 1,215,013 2,030,826 41,952$ 217,196$ 387,645$ 343,301$ 3,545,660$ 36,447$ $ $ $ 1,404,680$ 5,588 24,801 200,310 42,035 200,310 24,801 - 1,404,680 2,140,980 16,886 362,844 343,301 (83) (83) 16,886 362,844 343,301 2,140,980 41,952$ 217,196$ 387,645$ 343,301$ 3,545,660$ Special Revenue Funds 116  City of San Luis Obispo, California Combining Balance Sheet Nonmajor Governmental Funds, continued For the Fiscal Year Ended June 30, 2015 Page 2 Assets Cash and cash equivalents Investments Accounts receivable Due from other governments Accrued interest receivable Prepaid expense Cash held by fiscal agent Total assets Liabilities and Fund Balance (Deficit) Liabilities: Accounts payable Accrued liabilities Due to other funds Other liabilities Total liabilities Fund balance: Restricted for: Debt service Law enforcement grant programs Committed to: Affordable housing programs Impact fee programs Open space programs Parkland development programs Assigned to: Subsequent years expenditures Unassigned Total fund balance (deficit) Total liabilities and fund balance Parkland Development Open Space Protection Airport Area Impact Fee LOVR Sub- Area Fee 157,202$ 134,602$ 236,900$ 82,538$ 463,811397,133698,957 243,520 1,046 902 1,641 572 622,059$ 532,637$ 937,498$ 326,630$ $ 2,014$ $ 179,907$ 1,501 1,501 2,014 - 179,907 937,498 146,723 530,623 620,558 620,558 530,623 937,498 146,723 622,059$ 532,637$ 937,498$ 326,630$ Capital Projects Funds 117  Waste Water Impact Fee Fleet Replacement Info Tech Replacement Affordable HousingInfrastructure Total Nonmajor Governmental Funds $514,264$ 16,222$ 657,475$ 60,000$ 2,547,887$ 1,517,297 1,939,834 5,714,335 440,566 85,781 504 3,716 4,573 105 14,948 1,215,013 2,030,826 504$ 2,035,277$ 16,222$ 2,601,882$ 60,105$ 12,049,356$ 504$ 6,230$ 77,107$ $ $ 1,738,874$ 46,543 98,961 98,961 200,310 504 6,230 176,068 - - 2,084,688 2,140,980 16,886 2,601,882 2,601,882 1,084,221 530,623 983,402 2,029,047 (159,846) 60,105 2,606,757 (83) - 2,029,047 (159,846) 2,601,882 60,105 9,964,668 504$ 2,035,277$ 16,222$ 2,601,882$ 60,105$ 12,049,356$ Capital Projects Funds 118  City of San Luis Obispo, California Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) Nonmajor Governmental Funds For the Fiscal Year Ended June 30, 2015 Downtown BID Transportation Development Act (TDA)Tourism BIDGas Tax Revenues: Use of money and property $ $ 1,268$ $ Subventions and grants 54,808 1,188,599 Charges for services 221,864 1,363,475 Other revenues Total revenues 221,864 54,808 1,364,743 1,188,599 Expenditures: Current: Community development 221,864 1,252,847 General Government Public safety Debt service: Principal Interest Capital: General Government Public safety Transportation Leisure, cultural and social services Community development Total expenditures 221,864 - 1,252,847 - Excess (deficiency) of revenues over (under) expenditures - 54,808 111,896 1,188,599 Other financing sources (uses): Proceeds from debt issuance Transfers in Transfers out (54,808) (27,270) (1,188,599) Total other financing sources (uses)- (54,808) (27,270) (1,188,599) Net change in fund balance - - 84,626 - Fund balance (deficit), beginning of year 1,122 - 248,402 - Fund balance (deficit), end of year 1,122$ -$ 333,028$ -$ Special Revenue Funds 119  Community Development Block Grant (CDBG) Law Enforcement Grants Public Art ContributionsInsuranceDebt Service $ 790$ 1,619$ 601$ (13,842)$ 214,791 195,411 2,356 81,205 12,900 214,791 198,557 82,824 601 (942) 287,393 74,806 300,000 3,771,642 1,054,261 208,816 213,183 287,393 208,816 213,183 - 5,200,709 (72,602) (10,259) (130,359) 601 (5,201,651) 72,602 77,100 342,700 5,299,409 72,602 - 77,100 342,700 5,299,409 - (10,259) (53,259) 343,301 97,758 (83) 27,145 416,103 - 2,043,222 (83)$ 16,886$ 362,844$ 343,301$ 2,140,980$ Special Revenue Funds 120  City of San Luis Obispo, California Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficit) Nonmajor Governmental Funds, continued For the Fiscal Year Ended June 30, 2015 Page 2 Revenues: Use of money and property Subventions and grants Charges for services Other revenues Total revenues Expenditures: Current: Community development General Government Public safety Debt service: Principal Interest Capital: General Government Public safety Transportation Leisure, cultural and social services Community development Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Proceeds from debt issuance Transfers in Transfers out Total other financing sources (uses) Net change in fund balance Fund balance (deficit), beginning of year Fund balance (deficit), end of year Parkland Development Open Space Protection Airport Area Impact Fee LOVR Sub- Area Fee 3,110$ 2,289$ 4,344$ 1,513$ 273,647 276,757 2,289 4,344 1,513 23,487 822,521 123,258 822,521 123,258 23,487 - (545,764) (120,969) (19,143) 1,513 275,000 (35,000) - 240,000 - - (545,764) 119,031 (19,143) 1,513 1,166,322 411,592 956,641 145,210 620,558$ 530,623$ 937,498$ 146,723$ Capital Projects Funds 121  Waste Water Impact Fleet Replacement Info Tech Replacement Affordable HousingInfrastructure Total Nonmajor Governmental Funds 1,092$ 10,887$ $ 12,881$ 105$ 26,657$ 69,528 1,723,137 308,422 269,626 2,520,595 6,755 19,655 309,514 17,642 - 352,035 105 4,290,044 680,000 2,442,104 74,806 300,000 3,771,642 1,054,261 1,027,964 1,027,964 1,112,144 804,265 2,125,225 528,804 552,291 51,232 1,086,936 123,258 - 1,692,180 1,832,229 680,000 - 12,558,487 309,514 (1,674,538) (1,832,229) (327,965) 105 (8,268,443) 548,351 548,351 532,600 991,100 60,000 7,650,511 (309,514) (17,000) (1,632,191) (309,514) 1,080,951 991,100 (17,000) 60,000 6,566,671 - (593,587) (841,129) (344,965) 60,105 (1,701,772) - 2,622,634 681,283 2,946,847 - 11,666,440 -$ 2,029,047$ (159,846)$ 2,601,882$ 60,105$ 9,964,668$ Capital Projects Funds 122  City of San Luis Obispo, California Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Downtown Business Improvement District Fund For the Fiscal Year Ended June 30, 2015 Variance with Final Budget Positive OriginalFinalActual (Negative) Revenues: Charges for services Assessments214,000$ 214,000$ 221,864$ 7,864$ Total Revenues214,000 214,000 221,864 7,864 Expenditures: Current Community development 214,000214,000221,864 7,864 Total Expenditures214,000 214,000 221,864 7,864 Excess of Revenues Over Expenditures- - - - Net Change in Fund Balance - - - - Fund Balance, Beginning of Year 102,000135,1651,122 134,043 Fund Balance, End of Year 102,000$ 135,165$ 1,122$ 134,043$ Budget 123  City of San Luis Obispo, California Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Transportation Development Act (TDA) For the Fiscal Year Ended June 30, 2015 Variance with Final Budget Positive OriginalFinalActual (Negative) Revenues: Subventions and grants54,800$ 54,800$ 54,808$ 8$ Total Revenues54,800 54,800 54,808 8 Excess of Revenues Over Expenditures54,800 54,800 54,808 8 Other Financing Uses: Operating transfers out(54,800) (54,800) (54,808) (8) Net Change in Fund Balance- - - - Fund Balance, Beginning of Year Fund Balance, End of Year -$ -$ -$ -$ Budget 124  City of San Luis Obispo, California Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Tourism Business Improvement District Fund For the Fiscal Year Ended June 30, 2015 Variance with Final Budget Positive OriginalFinalActual (Negative) Revenues: Use of money and property1,100$ 1,100$ 1,268$ 168$ Charges for services Assessments1,257,960 1,303,580 1,363,475 59,895 Total Revenues1,259,060 1,304,680 1,364,743 60,063 Expenditures: Current Community development 1,232,774 1,381,811 1,252,847 (128,964) Total Expenditures1,232,774 1,381,811 1,252,847 (128,964) Excess of Revenues Over (Under) Expenditures 26,286 (77,131) 111,896 189,027 Other Financing Uses: Operating transfers out (25,159) (26,062) (27,270)(1,208) Net Change in Fund Balance 1,127 (103,193) 84,626 187,819 Fund Balance, Beginning of Year 102,000 135,165 248,402 248,402 Fund Balance, End of Year 103,127$ 31,972$ 333,028$ 436,221$ Budget 125  City of San Luis Obispo, California Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Gas Tax Fund For the Fiscal Year Ended June 30, 2015 Variance with Final Budget Positive OriginalFinalActual (Negative) Revenues: Subventions and grants1,141,700$ 1,141,700$ 1,188,599$ 46,899$ Total Revenues1,141,700 1,141,700 1,188,599 46,899 Excess of Revenues Over Expenditures1,141,700 1,141,700 1,188,599 46,899 Other Financing Uses: Operating transfers out(1,141,700) (1,141,700) (1,188,599)(46,899) Net Change in Fund Balance- - - - Fund Balance, Beginning of Year Fund Balance, End of Year -$ -$ -$ -$ Budget 126  City of San Luis Obispo, California Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Community Development Block Grant (CDBG) Fund For the Fiscal Year Ended June 30, 2015 Variance with Final Budget Positive OriginalFinalActual (Negative) Revenues: Subventions and grants645,266$ 645,266$ 214,791$ (430,475)$ Total Revenues645,266 645,266 214,791 (430,475) Expenditures: Current Community development 573,057 421,227 280,433 (140,794) Capital Projects299,712 6,960 (292,752) Total Expenditures573,057 720,939 287,393 (433,546) Excess of Revenues Over (Under) Expenditures72,209 (75,673) (72,602) 3,071 Other Financing Uses: Operating transfers in74,611 74,611 72,602(2,009) Net Change in Fund Balance146,820 (1,062) - 1,062 Fund Balance, Beginning of Year266,100573,500(83) 573,583 Fund Balance, End of Year 412,920$ 572,438$ (83)$ 574,645$ Budget 127  City of San Luis Obispo, California Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Law Enforcement Grants Fund For the Fiscal Year Ended June 30, 2015 Variance with Final Budget Positive OriginalFinalActual (Negative) Revenues: Use of money and property100$ 100$ 790$ 690$ Subventions and grants260,110 260,110 195,411 (64,699) Other revenues2,000 2,000 2,356 356 Total Revenues262,210 262,210 198,557 (63,653) Expenditures: Capital Projects260,110 260,717 208,816 (51,901) Total Expenditures260,110 260,717 208,816 (51,901) Excess of Revenues Over (Under) Expenditures2,100 1,493 (10,259) (11,752) Net Change in Fund Balance2,100 1,493 (10,259) (11,752) Fund Balance, Beginning of Year21,400 21,600 27,145 5,545 Fund Balance, End of Year 23,500$ 23,093$ 16,886$ (6,207)$ Budget 128  City of San Luis Obispo, California Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual Public Art Contributions Fund For the Fiscal Year Ended June 30, 2015 Variance with Final Budget Positive OriginalFinalActual (Negative) Revenues: Use of money and property2,100$ 2,100$ 1,619$ (481)$ Other revenues20,000 40,701 81,205 40,504 Total Revenues22,100 42,801 82,824 40,023 Expenditures: Capital Projects429,903 213,183 (216,720) Total Expenditures- 429,903 213,183 (216,720) Excess of Revenues Over (Under) Expenditures22,100 (387,102) (130,359) 256,743 Other Financing Uses: Operating transfers in29,900 77,100 77,100- Net Change in Fund Balance 52,000 (310,002) (53,259) 256,743 Fund Balance, Beginning of Year 166,300373,800416,103 42,303 Fund Balance, End of Year 218,300$ 63,798$ 362,844$ 299,046$ Budget 129  City of San Luis Obispo, California Agency Funds For the Fiscal Year Ended June 30, 2015 The City of San Luis Obispo has established the following agency funds, which are used to account for funds held by the City as an agent for private donations and programs operated jointly with other local agencies: Whale Rock Fund. This fund was established to account for the financial activities of the Whale Rock Commission, a joint venture providing water service to the City, the California Polytechnic State University, and the California Men's Colony. Jack House Fund. This fund was established to account for the financial activities of the Jack House Committee, which includes the rehabilitation and use of a use of the historic Jack House property. Joint Recreational Use Fund. This fund was established to account for the financial activities of the committee on Joint Recreational Use, which includes the development and use of recreational facilities built on school district property. Mayor’s Youth Task Force Fund. This fund was established to account for the financial activities of this community task force. Narcotics Task Force Fund. This fund was established to account for the financial activities of the County task force. Bomb Task Force Fund. This fund was established to account for the financial activities of the County task force. Hazardous Materials Task Force Fund. This fund was established to account for the financial activities of the County task force. General Agency Fund. This fund was established to account for a broad category of funds, including donations, provided to the City to be utilized for specific purposes. Duvall Fund. This fund was established to account for a bequest by Mary Jane Duvall to assist in civic and beautification projects in the Mission Plaza area and extensions. Boysen Ranch Conservation Easement Fund. This fund was established to account for contributions toward obtaining a conservation easement on the Boysen Ranch property. Cable Television Public, Educational and Government Funds for the City of San Luis Obispo, San Luis Coastal Unified School District (SLCUSD) and San Luis Obispo County Public Access, Inc. Public Access Television (PAT). These funds account for collections by Charter Communications from its customers for PEG access equipment and facilities. The City of San Luis Obispo, SLCUSD and PAT annually receive equal shares of collections, restricted for approved uses as stipulated in the cable franchise agreement. 130  City of San Luis Obispo, California Combining Statement of Changes in Assets and Liabilities Agency Funds For the Fiscal Year Ended June 30, 2015 Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Whale Rock Fund Assets Cash and cash equivalents 68,132$ 2,190,001$ 1,958,052$ 300,081$ Investments 1,143,460885,3661,143,460885,366 Accounts receivable 9,647 26,5729,64726,572 Accrued interest receivable 2,8382,2132,838 2,213 Prepaid expense 26,584 27,84326,58427,843 Deferred outflows of resources - 83,956 83,956 Due from other governments 10,571 10,571 - Total Assets 1,261,232$ 3,215,951$ 3,151,152$ 1,326,031$ Liabilities Accounts payable 33,326$ 502,983$ 493,566$ 42,743$ Accrued salaries 22,63868,28365,68725,234 Due to other funds - 13,981 13,981 Other liabilities 31,262 6,787 38,049 Net pension liability - 1,045,899 1,045,899 Deferred inflows of resources - 101,940 101,940 Due to agency participants 1,174,006 1,115,82158,185 Total Liabilities 1,261,232$ 1,739,873$ 1,675,074$ 1,326,031$ Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Jack House Fund Assets Cash and cash equivalents 10,650$ 2,458$ $ 13,108$ Accounts receivable 50 50 - Accrued interest receivable 26 22 26 22 Total Assets 10,726$ 2,480$ 76$ 13,130$ Liabilities Accounts payable 56$ 21$ 56$ 21 Other liabilities 10,670 2,439 13,109 Total Liabilities 10,726$ 2,460$ 56$ 13,130$ 131  City of San Luis Obispo, California Combining Statement of Changes in Assets and Liabilities Agency Funds, continued For the Fiscal Year Ended June 30, 2015 Page 2 Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Joint Recreational Use Fund Assets Investments 215$ $ 215$ -$ Total Assets 215$ -$ 215 - Liabilities Other liabilities 215$ $ 215$ -$ Total Liabilities 215$ -$ 215$ -$ Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Mayor's Youth Task Force Fund Assets Cash and cash equivalents $ $ $ -$ Investments 2,247 2,247 - Total Assets 2,247$ -$ 2,247 -$ Liabilities Other liabilities 2,247$ $ 2,247$ -$ Total Liabilities 2,247$ -$ 2,247 -$ Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Narcotics Task Force Fund Assets Cash and cash equivalents 36,350$ 101,739$ 114,606$ 23,483$ Investments - Accrued interest receivable 91 51 91 51 Total Assets 36,441$ 101,790$ 114,697$ 23,534$ Liabilities Accounts payable 1,282$ 78,256$ 79,538$ -$ Due to agency participants 35,159 11,62523,534 Total Liabilities 36,441$ 78,256$ 91,163$ 23,534$ 132  City of San Luis Obispo, California Combining Statement of Changes in Assets and Liabilities Agency Funds, continued For the Fiscal Year Ended June 30, 2015 Page 3 Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Bomb Task Force Fund Assets Cash and cash equivalents $ 250,434$ 12,403$ 238,031$ Investments 213,188 213,188 - Accrued interest receivable 463 418 463 418 Total Assets 213,651$ 250,852$ 226,054$ 238,449$ Liabilities Accounts payable 262$ 12,403$ 12,401$ 264$ Due to agency participants 213,389250,854226,058238,185 Total Liabilities 213,651$ 263,257$ 238,459$ 238,449$ Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Hazardous Materials Task Force Fund Assets Cash and cash equivalents $ 98,168$ 31,606$ 66,562$ Investments 75,330 75,330 - Total Assets 75,330$ 98,168$ 106,936$ 66,562$ Liabilities Accounts payable 60$ 15,723$ 11,753$ 4,030$ Due to agency participants 75,270120,499133,23762,532 Total Liabilities 75,330$ 136,222$ 144,990$ 66,562$ Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 General Agency Fund Assets Cash and cash equivalents 35,336$ 1,166,358$ 279,574$ 922,120$ Investments 589,323 589,323 - Accounts receivable 79,155 79,155 - Other assets 30,864 30,864 Total Assets 734,678$ 1,166,358$ 948,052$ 952,984$ Liabilities Accounts payable 41,929$ 185,043$ 180,243$ 46,729$ Other liabilities 692,749 908,305694,799906,255 Total Liabilities 734,678$ 1,093,348$ 875,042$ 952,984$ 133  City of San Luis Obispo, California Combining Statement of Changes in Assets and Liabilities Agency Funds, continued For the Fiscal Year Ended June 30, 2015 Page 4 Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Duvall Fund Assets Cash and cash equivalents 11,472$ 157,114$ 11,672$ 156,914$ Investments 144,592 144,592 - Accrued interest receivable 344 275 344 275 Total Assets 156,408$ 157,389$ 156,608$ 157,189$ Liabilities Other liabilities 156,408$ 781$ $ 157,189$ Total Liabilities 156,408$ 781$ - 157,189$ Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Boysen Ranch Conservation Easement Assets Cash and cash equivalents 22,087$ 393,069$ 22,585$ 392,571$ Investments 368,356 368,356 - Accrued interest receivable 862 688 862 688 Total Assets 391,305$ 393,757$ 391,803$ 393,259$ Liabilities Accounts payable 24,567$ $ $ 24,567$ Other liabilities 366,7381,954 368,692 Total Liabilities 391,305$ 1,954$ -$ 393,259 Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Peg - City of San Luis Obispo Assets Cash and cash equivalents 9,133$ 210,937$ 47,503$ 172,567$ Investments 152,317 152,317 - Accounts receivable 10,255 10,255 - Accrued interest receivable 474 305 474 305 Total Assets 172,179$ 211,242$ 210,549$ 172,872$ Liabilities Accounts payable 1,555$ $ 1,555$ -$ Other liabilities 170,6242,248 172,872 Total Liabilities 172,179$ 2,248$ 1,555$ 172,872$ 134  City of San Luis Obispo, California Combining Statement of Changes in Assets and Liabilities Agency Funds, continued For the Fiscal Year Ended June 30, 2015 Page 5 Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Peg - SLCUSD Assets Cash and cash equivalents 11,783$ 249,517$ 30,063$ 231,237$ Investments 196,509 196,509 - Accounts receivable 10,255 10,255 - Accrued interest receivable - 410 410 Total Assets 218,547$ 249,927$ 236,827$ 231,647$ Liabilities Accounts payable $ 44,241$ $ 44,241$ Other liabilities 218,547 31,141187,406 Total Liabilities 218,547$ 44,241$ 31,141$ 231,647$ Balance Balance June 30, 2014AdditionsDeductionsJune 30, 2015 Totals - All Agency Funds Assets Cash and cash equivalents 204,943$ 4,819,795$ 2,508,064$ 2,516,674$ Investments 2,885,537885,3662,885,537885,366 Accounts receivable 109,36226,572109,36226,572 Accrued interest receivable 5,0984,3825,098 4,382 Other assets 57,44827,843 26,58458,707 Deferred outflows of resources - 83,956 83,956 Due from other governments 10,571 10,571 - Total Assets 3,272,959$ 5,847,914$ 5,545,216$ 3,575,657$ Liabilities Accounts payable 103,037$ 838,670$ 779,112$ 162,595$ Accrued salaries 22,63868,28365,68725,234 Due to other funds - 13,981 13,981 Other liabilities 1,649,460 922,514728,4021,843,572 Net pension liability - 1,045,899 1,045,899 Deferred inflows of resources - 101,940.00 101,940 Due to agency participants 1,497,824371,3531,486,741382,436 Total Liabilities 3,272,959$ 3,362,640$ 3,059,942$ 3,575,657$ STATISTICAL SECTION (UNAUDITED) 136  City of San Luis Obispo, California Statistical Section Overview June 30, 2015 This part of the City of San Luis Obispo’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 government’s overall financial health. Contents Financial Trends – Schedules 1-6. These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. Revenue Capacity – Schedules 7-13. These schedules contain information to help the reader assess the government’s most significant local revenue sources, sales and property taxes. Debt Capacity – Schedules 14-19. These schedules present information to help the reader 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 20-22. These schedules offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place. Operating Information – Schedules 23-26. These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the government provides and the activities it performs. 13 7   Sc h e d u l e 1 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Ne t P o s i t i o n s b y C o m p o n e n t La s t T e n F i s c a l Y e a r s (A c c r u a l B a s i s o f A c c o u n t i n g ) Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 20 0 6 - 0 7 20 0 7 - 0 8 20 0 8 - 0 9 20 0 9 - 1 0 20 1 0 - 1 1 20 1 1 - 1 2 2012-132013-142014-15 Go v e r n m e n t a l a c t i v i t i e s : N e t i n v e s t m e n t i n c a p i t a l a s s e t s 11 3 , 2 6 3 , 4 0 0 $ 11 5 , 1 4 9 , 1 0 0 $ 12 1 , 2 4 7 , 1 0 0 $ 11 9 , 4 2 5 , 1 0 0 $ 12 9 , 4 1 6 , 8 0 0 $ 13 3 , 1 4 5 , 8 0 0 $ 14 1 , 6 8 6 , 6 0 0 $ 142,239,500$ 145,266,043$ 150,829,869$ R e s t r i c t e d 4, 5 1 2 , 2 0 0 3, 4 5 2 , 1 0 0 1, 8 2 2 , 3 0 0 2, 5 1 0 , 5 0 0 2, 5 6 9 , 8 0 0 2, 5 4 3 , 8 0 0 2, 6 2 0 , 7 0 0 2,374,800 4,825,662 2,350,838 U n r e s t r i c t e d 20 , 3 2 1 , 7 0 0 28 , 7 8 6 , 3 0 0 30 , 9 3 5 , 7 0 0 38 , 9 2 8 , 5 0 0 26 , 2 0 4 , 5 0 0 26 , 4 0 1 , 5 0 0 23 , 5 8 3 , 0 0 0 29,927,200 32,524,272 (53,845,288) To t a l g o v e r n m e n t a l a c t i v i t i e s n e t p o s i t i o n 13 8 , 0 9 7 , 3 0 0 $ 14 7 , 3 8 7 , 5 0 0 $ 15 4 , 0 0 5 , 1 0 0 $ 16 0 , 8 6 4 , 1 0 0 $ 15 8 , 1 9 1 , 1 0 0 $ 16 2 , 0 9 1 , 1 0 0 $ 16 7 , 8 9 0 , 3 0 0 $ 174,541,500$ 182,615,977$ 99,335,419$ Bu s i n e s s - t y p e a c t i v i t i e s : N e t i n v e s t m e n t i n c a p i t a l a s s e t s 96 , 0 2 4 , 9 0 0 $ 95 , 5 2 6 , 8 0 0 $ 10 2 , 5 4 0 , 5 0 0 $ 10 9 , 6 7 5 , 9 0 0 $ 11 2 , 3 9 5 , 8 0 0 $ 11 7 , 3 1 4 , 7 0 0 $ 11 9 , 9 5 7 , 6 0 0 $ 123,510,200$ 119,116,303$ 125,129,704$ R e s t r i c t e d 4, 4 0 1 , 9 0 0 8, 0 0 9 , 8 0 0 2, 5 0 6 , 2 0 0 3, 9 1 8 , 6 0 0 2, 7 6 3 , 7 0 0 2, 7 7 7 , 1 0 0 2, 2 9 3 , 9 0 0 2,254,200 2,248,979 2,261,213 U n r e s t r i c t e d 24 , 3 2 7 , 4 0 0 27 , 3 2 7 , 2 0 0 31 , 8 7 3 , 2 0 0 31 , 3 2 9 , 5 0 0 38 , 2 4 5 , 9 0 0 36 , 4 9 3 , 6 0 0 37 , 7 5 9 , 0 0 0 41,712,200 54,766,319 42,297,248 To t a l b u s i n e s s - t y p e a c t i v i t i e s n e t p o s i t i o n 12 4 , 7 5 4 , 2 0 0 $ 13 0 , 8 6 3 , 8 0 0 $ 13 6 , 9 1 9 , 9 0 0 $ 14 4 , 9 2 4 , 0 0 0 $ 15 3 , 4 0 5 , 4 0 0 $ 15 6 , 5 8 5 , 4 0 0 $ 16 0 , 0 1 0 , 5 0 0 $ 167,476,600$ 176,131,601$ 169,688,165$ Pr i m a r y g o v e r n m e n t ( C i t y w i d e t o t a l s ) : N e t i n v e s t m e n t i n c a p i t a l a s s e t s 20 9 , 2 8 8 , 3 0 0 $ 21 0 , 6 7 5 , 9 0 0 $ 22 3 , 7 8 7 , 6 0 0 $ 22 9 , 1 0 1 , 0 0 0 $ 24 1 , 8 1 2 , 6 0 0 $ 25 0 , 4 6 0 , 5 0 0 $ 26 1 , 6 4 4 , 2 0 0 $ 265,749,700$ 264,382,346$ 275,959,573$ R e s t r i c t e d 8, 9 1 4 , 1 0 0 11 , 4 6 1 , 9 0 0 4, 3 2 8 , 5 0 0 6, 4 2 9 , 1 0 0 5, 3 3 3 , 5 0 0 5, 3 2 0 , 9 0 0 4, 9 1 4 , 6 0 0 4,629,000 7,074,641 4,612,051 U n r e s t r i c t e d 44 , 6 4 9 , 1 0 0 56 , 1 1 3 , 5 0 0 62 , 8 0 8 , 9 0 0 70 , 2 5 8 , 0 0 0 64 , 4 5 0 , 4 0 0 62 , 8 9 5 , 1 0 0 61 , 3 4 2 , 0 0 0 71,639,400 87,290,591 (11,548,040) To t a l p r i m a r y g o v e r n m e n t n e t p o s i t i o n 26 2 , 8 5 1 , 5 0 0 $ 27 8 , 2 5 1 , 3 0 0 $ 29 0 , 9 2 5 , 0 0 0 $ 30 5 , 7 8 8 , 1 0 0 $ 31 1 , 5 9 6 , 5 0 0 $ 31 8 , 6 7 6 , 5 0 0 $ 32 7 , 9 0 0 , 8 0 0 $ 342,018,100$ 358,747,578$ 269,023,584$ No t e : Th e C i t y i m p l e m e n t e d G A S B S t a t e m e n t N o . 3 4 i n t h e 2 0 0 2 - 0 3 f i s c a l y e a r . 13 8   Sc h e d u l e 2 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Ch a n g e s i n N e t P o s i t i o n La s t T e n F i s c a l Y e a r s (A c c r u a l B a s i s o f A c c o u n t i n g ) Fo r T h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 2 0 0 6 - 0 7 2 0 0 7 - 0 8 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 Ex p e n s e s : Go v e r n m e n t a l a c t i v i t i e s : Pu b l i c s a f e t y 22 , 0 1 8 , 8 0 0 $ 23 , 0 8 3 , 2 0 0 $ 28 , 1 8 9 , 9 0 0 $ 29 , 3 3 0 , 3 0 0 $ 27 , 6 8 7 , 2 0 0 $ 26 , 7 7 4 , 8 0 0 $ 27 , 9 9 3 , 9 0 0 $ 28,859,200$ 29,651,702$ 26,881,732$ Tr a n s p o r t a t i o n 5, 1 4 2 , 2 0 0 6, 2 7 6 , 6 0 0 6, 4 6 3 , 2 0 0 6, 6 1 9 , 3 0 0 7, 1 1 6 , 4 0 0 8, 8 0 9 , 4 0 0 7, 7 7 8 , 0 0 0 8,551,500 8,975,047 11,457,311 Le i s u r e , c u l t u r a l a n d s o c i a l s e r v i c e s 7, 9 7 3 , 8 0 0 7, 6 8 8 , 0 0 0 9, 5 1 8 , 4 0 0 9, 7 7 8 , 9 0 0 9, 4 4 5 , 6 0 0 9, 2 9 9 , 2 0 0 9, 5 0 0 , 3 0 0 10,078,700 10,239,853 10,332,740 Co m m u n i t y d e v e l o p m e n t 5, 5 0 3 , 7 0 0 6, 9 5 3 , 5 0 0 7, 8 2 2 , 3 0 0 8, 2 3 3 , 6 0 0 11 , 0 2 0 , 4 0 0 8, 1 6 6 , 3 0 0 8, 7 8 2 , 2 0 0 8,866,900 10,183,782 10,960,778 In t e r e s t o n l o n g - t e r m d e b t 73 0 , 2 0 0 1, 0 2 1 , 1 0 0 95 0 , 6 0 0 95 1 , 5 0 0 1, 3 4 8 , 1 0 0 1, 2 4 8 , 4 0 0 1, 1 9 8 , 0 0 0 1,217,200 1,221,205 1,015,011 To t a l g o v e r n m e n t a l a c t i v i t i e s e x p e n s e s 41 , 3 6 8 , 7 0 0 45 , 0 2 2 , 4 0 0 52 , 9 4 4 , 4 0 0 54 , 9 1 3 , 6 0 0 56 , 6 1 7 , 7 0 0 54 , 2 9 8 , 1 0 0 55 , 2 5 2 , 4 0 0 57,573,500 60,271,589 60,647,572 Bu s i n e s s - t y p e a c t i v i t i e s : Wa t e r 8, 3 3 8 , 0 0 0 11 , 2 0 8 , 8 0 0 10 , 6 5 6 , 2 0 0 11 , 5 3 2 , 9 0 0 11 , 3 2 3 , 2 0 0 16 , 1 0 6 , 3 0 0 17 , 4 5 5 , 2 0 0 17,019,000 17,575,961 17,128,041 Se w e r 7, 4 0 3 , 7 0 0 7, 8 8 5 , 1 0 0 8, 5 1 1 , 3 0 0 9, 2 5 0 , 2 0 0 9, 1 5 3 , 2 0 0 9, 6 3 3 , 9 0 0 9, 5 3 0 , 4 0 0 10,189,400 10,647,255 10,132,214 Pa r k i n g 2, 7 4 1 , 8 0 0 3, 4 4 4 , 0 0 0 3, 4 1 6 , 4 0 0 3, 7 0 4 , 7 0 0 3, 4 9 4 , 3 0 0 3, 5 0 1 , 5 0 0 3, 5 9 8 , 0 0 0 3,678,600 3,636,607 3,556,637 Tr a n s i t 2, 5 5 6 , 0 0 0 2, 8 9 4 , 7 0 0 3, 0 6 0 , 1 0 0 3, 1 9 9 , 2 0 0 3, 2 9 5 , 5 0 0 3, 4 0 9 , 7 0 0 3, 7 7 8 , 9 0 0 3,903,900 4,059,138 3,994,194 Go l f 53 9 , 3 0 0 60 9 , 2 0 0 63 3 , 6 0 0 72 2 , 1 0 0 70 8 , 4 0 0 72 4 , 1 0 0 To t a l b u s i n e s s - t y p e a c t i v it i e s e x p e n s e s 21 , 5 7 8 , 8 0 0 26 , 0 4 1 , 8 0 0 26 , 2 7 7 , 6 0 0 28 , 4 0 9 , 1 0 0 27 , 9 7 4 , 6 0 0 33 , 3 7 5 , 5 0 0 34 , 3 6 2 , 5 0 0 34,790,900 35,918,961 34,811,086 To t a l p r i m a r y g o v e r n m e n t e x p e n s e s 62 , 9 4 7 , 5 0 0 $ 71 , 0 6 4 , 2 0 0 $ 79 , 2 2 2 , 0 0 0 $ 83 , 3 2 2 , 7 0 0 $ 84 , 5 9 2 , 3 0 0 $ 87 , 6 7 3 , 6 0 0 $ 89 , 6 1 4 , 9 0 0 $ 92,364,400$ 96,190,550$ 95,458,658$ Pr o gra m R e v e n u e s : Go v e r n m e n t a l a c t i v i t i e s : Ch a r g e s f o r s e r v i c e s : Pu b l i c s a f e t y 1 , 3 7 1 , 9 0 0 $ 1 , 5 1 5 , 1 0 0 $ 1 , 4 4 1 , 2 0 0 $ 1 , 5 0 8 , 6 0 0 $ 1 , 5 0 1 , 5 0 0 $ 1 , 7 4 5 , 2 0 0 $ 1 , 7 5 0 , 7 0 0 $ 1 , 5 9 9 , 0 0 0 $ 1,589,278$ 1,697,748$ Tr a n s p o r t a t i o n 1 , 7 8 1 , 2 0 0 6 9 7 , 7 0 0 1 , 1 5 0 , 0 0 0 1 , 4 9 2 , 8 0 0 2 4 1 , 7 0 0 2 , 6 9 0 , 2 0 0 4 1 8 , 0 0 0 2 2 1 , 2 0 0 1,321,323 1,270,787 Le i s u r e , c u l t u r a l a n d s o c i a l s e r v i c e s 1 , 5 6 2 , 1 0 0 1 , 2 5 7 , 6 0 0 2 , 1 9 0 , 5 0 0 1 , 4 7 0 , 0 0 0 1 , 3 0 4 , 7 0 0 1 , 4 2 1 , 6 0 0 1 , 8 3 4 , 2 0 0 1 , 9 2 6 , 8 0 0 3,048,274 2,155,411 Co m m u n i t y d e v e l o p m e n t 5 , 2 6 8 , 8 0 0 5 , 0 6 7 , 4 0 0 3 , 9 8 1 , 4 0 0 3 , 1 0 7 , 4 0 0 2 , 9 1 7 , 7 0 0 3 , 1 6 6 , 2 0 0 4 , 5 6 3 , 2 0 0 4 , 1 2 6 , 4 0 0 4,981,211 7,210,132 Op e r a t i n g g r a n t s a n d c o n t r i b u t i o n s 2 , 0 7 1 , 5 0 0 3 , 0 8 3 , 1 0 0 2 , 8 3 5 , 7 0 0 3 , 6 7 1 , 2 0 0 2 , 0 5 2 , 0 0 0 1 , 8 8 5 , 1 0 0 2 , 1 5 2 , 7 0 0 2 , 8 1 4 , 7 0 0 2,412,469 2,509,323 Ca p i t a l g r a n t s a nd c o n t r i b u t i o n s 2 , 9 0 7 , 2 0 0 1 , 6 5 7 , 2 0 0 1 , 9 8 5 , 5 0 0 5 , 3 2 0 , 5 0 0 2 , 9 4 6 , 8 0 0 3 , 0 6 6 , 3 0 0 2 , 0 2 1 , 8 0 0 1 , 9 9 1 , 9 0 0 3,680,440 7,911,867 To t a l g o v e r n m e n t a l a c t i v i t i e s pr o g r a m r e v e n u e s 1 4 , 9 6 2 , 7 0 0 1 3 , 2 7 8 , 1 0 0 1 3 , 5 8 4 , 3 0 0 1 6 , 5 7 0 , 5 0 0 1 0 , 9 6 4 , 4 0 0 1 3 , 9 7 4 , 6 0 0 1 2 , 7 4 0 , 6 0 0 1 2 , 6 8 0 , 0 0 0 17,032,995 22,755,268 13 9   Sc h e d u l e 2 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Ch a n g e s i n N e t P o s i t i o n , c o n t i n u e d La s t T e n F i s c a l Y e a r s (A c c r u a l B a s i s o f A c c o u n t i n g ) Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 2 0 0 6 - 0 7 2 0 0 7 - 0 8 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 Bu s i n e s s - t y p e a c t i v i t i e s : Ch a r g e s f o r s e r v i c e s : Wa t e r 1 0 , 5 1 2 , 5 0 0 $ 1 1 , 6 0 3 , 1 0 0 $ 1 2 , 6 9 1 , 9 0 0 $ 1 3 , 8 3 6 , 0 0 0 $ 1 3 , 8 1 2 , 1 0 0 $ 1 4 , 2 9 8 , 1 0 0 $ 1 6 , 7 5 3 , 1 0 0 $ 1 8 , 1 4 8 , 2 0 0 $ 19,755,909$ 20,446,730$ Se w e r 1 0 , 2 3 6 , 0 0 0 1 0 , 8 6 8 , 8 0 0 1 0 , 2 0 5 , 5 0 0 1 1 , 7 8 5 , 2 0 0 1 3 , 2 2 5 , 1 0 0 1 3 , 3 2 0 , 4 0 0 1 4 , 7 8 9 , 7 0 0 1 6 , 2 1 2 , 0 0 0 17,151,212 18,007,064 Pa r k i n g 3 , 6 6 8 , 2 0 0 3 , 7 4 0 , 6 0 0 3 , 5 0 8 , 1 0 0 3 , 4 9 6 , 1 0 0 3 , 5 6 4 , 7 0 0 3 , 5 3 3 , 3 0 0 4 , 6 9 3 , 4 0 0 3,998,730 4,905,494 Tr a n s i t 4 5 2 , 1 0 0 7 6 6 , 0 0 0 5 2 0 , 5 0 0 6 0 7 , 0 0 0 5 5 1 , 6 0 0 5 9 3 , 1 0 0 5 5 2 , 9 0 0 6 8 2 , 7 0 0 688,585 649,899 Go l f 3 4 3 , 0 0 0 3 8 0 , 0 0 0 3 4 9 , 0 0 0 3 8 2 , 2 0 0 3 9 4 , 6 0 0 3 6 4 , 0 0 0 Op e r a t i n g g r a n t s a n d c o n t r i b u t i o n s 1 , 6 8 5 , 5 0 0 1 , 8 7 9 , 1 0 0 1 , 8 4 1 , 5 0 0 2 , 1 9 2 , 2 0 0 2 , 3 5 0 , 2 0 0 2 , 2 2 0 , 7 0 0 2 , 5 0 2 , 5 0 0 2 , 6 7 3 , 5 0 0 2,458,640 3,148,651 Ca p i t a l g r a n t s a nd c o n t r i b u t i o n s 3 3 2 , 2 0 0 4 5 7 , 8 0 0 1 , 9 6 0 , 9 0 0 1 , 6 2 7 , 3 0 0 9 5 2 , 3 0 0 1 , 2 4 2 , 0 0 0 7 5 0 , 9 0 0 7 3 1 , 3 0 0 82,359 60,063 To t a l b u s i n e s s - t y p e a c t i v i t i e s pr o g r a m s r e v e n u e s 2 7 , 2 2 9 , 5 0 0 2 9 , 6 9 5 , 4 0 0 2 7 , 5 6 9 , 3 0 0 3 3 , 9 3 8 , 0 0 0 3 4 , 7 8 2 , 0 0 0 3 5 , 6 0 3 , 0 0 0 3 8 , 8 8 2 , 4 0 0 4 3 , 1 4 1 , 1 0 0 44,135,435 47,217,901 To t a l p r i m a r y g o v e r n m e n t p r o g r a m r e v e n u e s 42 , 1 9 2 , 2 0 0 $ 42 , 9 7 3 , 5 0 0 $ 41 , 1 5 3 , 6 0 0 $ 50 , 5 0 8 , 5 0 0 $ 45 , 7 4 6 , 4 0 0 $ 49 , 5 7 7 , 6 0 0 $ 51 , 6 2 3 , 0 0 0 $ 55,821,100$ 61,168,430$ 69,973,169$ Ne t R e v e n u e s ( E x p e n s e s ) : Go v e r n m e n t a l a c t i v i t i e s (2 6 , 4 0 6 , 0 0 0 ) $ (3 1 , 7 4 4 , 3 0 0 ) $ (3 9 , 3 6 0 , 1 0 0 ) $ (3 8 , 3 4 3 , 1 0 0 ) $ (4 5 , 6 5 3 , 3 0 0 ) $ (4 0 , 3 2 3 , 5 0 0 ) $ (4 2 , 5 1 1 , 8 0 0 ) $ (44,893,500)$ (43,238,594)$ (37,892,304)$ Bu s i n e s s - t y p e a c t i v i t i e s 5, 6 5 0 , 7 0 0 3, 6 5 3 , 6 0 0 1, 2 9 1 , 7 0 0 5, 5 2 8 , 9 0 0 6, 8 0 7 , 4 0 0 2, 2 2 7 , 5 0 0 4, 5 1 9 , 9 0 0 8,350,200 8,216,474 12,406,815 To t a l p r i m a r y g o v e r n m e n t (2 0 , 7 5 5 , 3 0 0 ) $ (2 8 , 0 9 0 , 7 0 0 ) $ (3 8 , 0 6 8 , 4 0 0 ) $ (3 2 , 8 1 4 , 2 0 0 ) $ (3 8 , 8 4 5 , 9 0 0 ) $ (3 8 , 0 9 6 , 0 0 0 ) $ (3 7 , 9 9 1 , 9 0 0 ) $ (36,543,300)$ (35,022,120)$ (25,485,489)$ Ge n e r a l R e v e n u e s a n d O t h e r Ch a n g e s i n N e t P o s i t i o n : Go v e r n m e n t a l a c t i v i t i e s : Sa l e s a n d u s e t a x e s 12 , 6 7 5 , 9 0 0 $ 14 , 9 9 3 , 8 0 0 $ 19 , 5 7 8 , 3 0 0 $ 17 , 7 1 2 , 1 0 0 $ 15 , 9 7 6 , 4 0 0 $ 17 , 7 1 4 , 9 0 0 $ 19 , 5 2 7 , 5 0 0 $ 20,736,000$ 22,180,173$ 22,408,980$ Pr o p e r t y t a x e s 7, 5 9 6 , 7 0 0 8, 2 5 5 , 0 0 0 8, 3 7 4 , 2 0 0 8, 7 8 8 , 4 0 0 8, 5 7 9 , 3 0 0 8, 4 4 1 , 1 0 0 8, 3 6 7 , 0 0 0 9,176,600 8,960,010 9,631,890 Tr a n s i e n t o c c u p a n c y t a x 4, 5 3 9 , 2 0 0 4, 7 8 6 , 0 0 0 5, 0 5 4 , 7 0 0 4, 6 7 9 , 5 0 0 4, 4 9 6 , 1 0 0 4, 8 4 4 , 2 0 0 5, 2 2 2 , 0 0 0 5,572,400 6,063,232 6,805,742 Ut i l i t y u s e r s t a x 3, 9 4 7 , 3 0 0 4, 0 9 6 , 1 0 0 4, 1 7 7 , 7 0 0 4, 3 5 8 , 5 0 0 4, 8 6 2 , 4 0 0 4, 5 9 2 , 3 0 0 4, 5 8 4 , 1 0 0 4,916,100 5,345,342 5,211,207 Pr o p e r t y t a x i n - l i e u o f v e h i c le l i c e n s e f e e s 2, 4 8 6 , 4 0 0 3, 3 5 8 , 2 0 0 3, 2 8 0 , 1 0 0 3, 5 0 4 , 7 0 0 3, 5 6 5 , 1 0 0 3, 5 5 1 , 1 0 0 3, 4 9 2 , 4 0 0 3,533,200 3,645,692 3,849,341 Ot h e r t a x e s a n d f e e s 4, 0 6 9 , 9 0 0 3, 8 6 0 , 4 0 0 4, 2 2 8 , 1 0 0 4, 3 1 7 , 9 0 0 4, 2 2 6 , 8 0 0 4, 1 4 9 , 9 0 0 4, 2 9 9 , 8 0 0 4,607,600 4,779,570 4,993,285 In v e s t m en t e a r n i n g s 53 6 , 2 0 0 1, 6 7 5 , 4 0 0 1, 6 0 5 , 3 0 0 1, 7 7 5 , 3 0 0 1, 2 3 9 , 5 0 0 74 2 , 5 0 0 77 0 , 1 0 0 237,100 566,931 467,348 Mi s c e l l a n e o u s a n d o t h e r 67 1 , 8 0 0 3 6 0 , 5 0 0 4 7 8 , 4 0 0 4 0 0 , 8 0 0 3 3 9 , 6 0 0 4 1 4 , 7 0 0 2 2 7 , 2 0 0 3 4 9 , 9 0 0 679,127 707,781 Ga i n ( l o s s ) o n d i s p o s a l of c a p i t a l a s s e t s ( 3 3 7 , 1 0 0 ) ( 3 , 4 0 0 ) ( 1 1 , 0 0 0 ) Pr i o r p e r i o d a d j u s t m e n t 2,657,100 (833,234) Cu m u l a t i v e c h a n g e i n a c c o u n t i n g p r i n c i p l e ( G A S B 6 5 ) (345,400) Tr a n s f e r s ( 2 5 5 , 3 0 0 ) ( 3 5 0 , 9 0 0 ) ( 4 6 2 , 0 0 0 ) ( 3 3 5 , 0 0 0 ) ( 3 0 1 , 5 0 0 ) ( 2 2 7 , 2 0 0 ) 1 , 8 2 0 , 9 0 0 1 1 5 , 1 0 0 (73,771) (329,452) To t a l g o v e r n m e n t a l a c t i v i t i e s 3 6 , 2 6 8 , 1 0 0 4 1 , 0 3 4 , 5 0 0 4 5 , 9 7 7 , 7 0 0 4 5 , 2 0 2 , 2 0 0 4 2 , 9 8 0 , 3 0 0 4 4 , 2 2 3 , 5 0 0 4 8 , 3 1 1 , 0 0 0 5 1 , 5 4 4 , 7 0 0 51,313,072 53,746,122 14 0   Sc h e d u l e 2 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Ch a n g e s i n N e t P o s i t i o n , c o n t i n u e d La s t T e n F i s c a l Y e a r s (A c c r u a l B a s i s o f A c c o u n t i n g ) Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 2 0 0 6 - 0 7 2 0 0 7 - 0 8 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 Bu s i n e s s - t y p e a c t i v i t i e s In v e s t m e n t e a r n i n g s 6 6 7 , 4 0 0 $ 2 , 1 0 5 , 1 0 0 $ 1 , 4 1 3 , 4 0 0 $ 1 , 6 9 9 , 6 0 0 $ 1 , 3 7 2 , 5 0 0 $ 7 2 5 , 3 0 0 $ 7 2 6 , 1 0 0 $ 7 3 , 5 0 0 $ 364,551$ 361,627$ Cu m u l a t i v e c h a n g e i n a c c o u n t i n g p r i n c i p l e (842,600) Tr a n s f e r s 2 5 5 , 3 0 0 3 5 0 , 9 0 0 4 6 2 , 0 0 0 3 3 5 , 0 0 0 3 0 1 , 5 0 0 2 2 7 , 2 0 0 ( 1 , 8 2 0 , 9 0 0 ) ( 1 1 5 , 1 0 0 ) 73,771 329,452 To t a l b u s i n e s s - t y p e a c t i v i t i e s 9 2 2 , 7 0 0 2 , 4 5 6 , 0 0 0 1 , 8 7 5 , 4 0 0 2 , 0 3 4 , 6 0 0 1 , 6 7 4 , 0 0 0 9 5 2 , 5 0 0 ( 1 , 0 9 4 , 8 0 0 ) ( 8 8 4 , 2 0 0 ) 438,322 691,079 To t a l p r i m a r y g o v e r n m e n t 3 7 , 1 9 0 , 8 0 0 $ 4 3 , 4 9 0 , 5 0 0 $ 4 7 , 8 5 3 , 1 0 0 $ 4 7 , 2 3 6 , 8 0 0 $ 4 4 , 6 5 4 , 3 0 0 $ 4 5 , 1 7 6 , 0 0 0 $ 4 7 , 2 1 6 , 2 0 0 $ 5 0 , 6 6 0 , 5 0 0 $ 51,751,394$ 54,437,201$ Ch a n ge i n n e t p o s i t i o n : Go v e r n m e n t a l a c t i v i t i e s 9 , 8 6 2 , 1 0 0 $ 9 , 2 9 0 , 2 0 0 $ 6 , 6 1 7 , 6 0 0 $ 6 , 8 5 9 , 1 0 0 $ ( 2 , 6 7 3 , 0 0 0 ) $ 3 , 9 0 0 , 0 0 0 $ 5 , 7 9 9 , 2 0 0 $ 6 , 6 5 1 , 2 0 0 $ 8,074,478$ 15,853,818$ Bu s i n e s s - t y p e a c t i v i t i e s 6 , 5 7 3 , 4 0 0 6 , 1 0 9 , 6 0 0 3 , 1 6 7 , 1 0 0 7 , 5 6 3 , 5 0 0 8 , 4 8 1 , 4 0 0 3 , 1 8 0 , 0 0 0 3 , 4 2 5 , 1 0 0 7 , 4 6 6 , 0 0 0 8,654,796 13,097,894 To t a l p r i m a r y g o v e r n m e n t 1 6 , 4 3 5 , 5 0 0 $ 1 5 , 3 9 9 , 8 0 0 $ 9 , 7 8 4 , 7 0 0 $ 1 4 , 4 2 2 , 6 0 0 $ 5 , 8 0 8 , 4 0 0 $ 7 , 0 8 0 , 0 0 0 $ 9 , 2 2 4 , 3 0 0 $ 1 4 , 1 1 7 , 2 0 0 $ 16,729,274$ 28,951,712$ No t e : Th e C i t y i m p l e m e n t e d G A S B S t a t e m e n t N o . 3 4 i n t h e 2 0 0 3 f i s c a l y e a r . T h e i n f o r m a t i o n i n t h i s s c h e d u l e i s t h e r e f o r e s e t f o r t h p r o s p e c t i v e l y f r o m t h e y e a r o f i m p l e m e n t a t i o n . 14 1   Sc h e d u l e 3 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Go v e r n m e n t a l A c t i v i t i e s T a x a n d F r a n c h i s e R e v e n u e s b y S o u r c e La s t T e n F i s c a l Y e a r s (A c c r u a l B a s i s o f A c c o u n t i n g ) Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 Fi s c a l Sa l e s H a l f P e r c e n t P r o p e r t y T r a n s i e n t U t i l i t y P r o p e r t y F r a n c h i s e B u s i n e s s O t h e r Ye a r an d U s e S a l e s T a x ( N o t e 1 ) O c c u p a n c y U s e r s i n - l i e u o f V L F F e e s TaxTaxesTotal 20 0 5 - 0 6 ( N o t e 2 ) 1 2 , 6 7 5 , 9 0 0 7, 5 1 9 , 6 0 0 4, 5 3 9 , 2 0 0 3, 9 4 7 , 3 0 0 1, 5 3 0 , 8 0 0 2, 1 0 1 , 3 0 0 1,578,000 390,600 34,282,700 20 0 6 - 0 7 ( N o t e 3 ) 1 3 , 9 9 3 , 8 0 0 1, 0 0 0 , 0 0 0 8, 2 5 5 , 0 0 0 4, 7 8 6 , 0 0 0 4, 0 9 6 , 1 0 0 3, 0 6 1 , 5 0 0 2, 1 5 3 , 7 0 0 1,706,700 360,500 39,413,300 20 0 7 - 0 8 13 , 5 8 1 , 7 0 0 5, 9 9 6 , 6 0 0 8, 3 7 4 , 2 0 0 5, 0 5 4 , 7 0 0 4, 1 7 7 , 7 0 0 3, 2 8 0 , 1 0 0 2, 3 6 1 , 7 0 0 1,866,400 288,100 44,981,200 20 0 8 - 0 9 12 , 0 7 0 , 7 0 0 5, 6 4 1 , 4 0 0 8, 7 8 8 , 4 0 0 4, 6 7 9 , 5 0 0 4, 3 5 8 , 5 0 0 3, 5 0 4 , 7 0 0 2, 4 3 9 , 4 0 0 1,878,500 234,300 43,595,400 20 0 9 - 1 0 10 , 7 2 3 , 9 0 0 5, 2 5 2 , 5 0 0 8, 5 7 9 , 3 0 0 4, 4 9 6 , 1 0 0 4, 8 6 2 , 4 0 0 3, 5 6 5 , 1 0 0 2, 3 9 6 , 7 0 0 1,830,100 204,600 41,910,700 20 1 0 - 1 1 12 , 0 9 8 , 6 0 0 5, 6 1 6 , 3 0 0 8, 4 4 1 , 1 0 0 4, 8 4 4 , 2 0 0 4, 5 9 2 , 3 0 0 3, 5 5 1 , 1 0 0 2, 3 5 2 , 1 0 0 1,797,800 209,100 43,502,600 20 1 1 - 1 2 13 , 2 9 0 , 0 0 0 6, 2 3 7 , 5 0 0 8, 3 6 7 , 0 0 0 5, 2 2 2 , 0 0 0 4, 5 8 4 , 1 0 0 3, 4 9 2 , 4 0 0 2, 4 6 2 , 3 0 0 1,837,500 227,200 45,720,000 20 1 2 - 1 3 14 , 2 4 2 , 2 0 0 6, 4 9 3 , 8 0 0 9, 1 7 6 , 6 0 0 5, 5 7 2 , 4 0 0 4, 9 1 6 , 1 0 0 3, 5 3 3 , 2 0 0 2, 5 5 2 , 3 0 0 2,055,300 349,900 48,891,800 20 1 3 - 1 4 15 , 4 0 5 , 8 0 8 6, 7 7 4 , 3 6 5 8, 9 6 0 , 0 1 0 6, 0 6 3 , 2 3 2 5, 3 4 5 , 6 9 2 3, 6 4 5 , 6 9 2 2, 6 3 6 , 5 9 9 2,142,971 679,127 51,653,496 20 1 4 - 1 5 15 , 2 7 2 , 6 8 3 7, 1 3 6 , 2 9 7 9, 6 3 1 , 8 9 0 6, 8 0 5 , 7 4 2 5, 2 1 1 , 2 0 7 3, 8 4 9 , 3 4 1 2, 7 9 0 , 0 7 7 2,203,208 707,781 53,608,226 No t e s : 1. P r o p e r t y t a x r e v e n u e s a r e p r e s e n t e d n e t o f S B 2 5 5 7 C o u n t y a d m i n i s t r a t i v e f e e s ( a p p r o x i m a t e l y 3 % o f t o t a l p r o p e r t y t a x r e v e n u es ) . T h e C i t y h a s e l e c t e d t o r e c e i v e i t s p r o p e r t y t a x r e v e n u e s b a s e d o n t h e T e e t e r P l a n m e t h o d o f c o l l e c t i o n w h e r e b y t h e C o u n t y r e m i t s 1 0 0 % o f t a x e s l e v i e d , p u r s u e s c o l l e c t i o n a n d r e t a i n s a n y d e l i n q u e n t t a x e s a n d r e l a t e d p e n a l t i e s a n d i n t e r e s t . 2. G A S B 3 4 w a s i m p l e m e n t e d i n 2 0 0 2 - 0 3 a n d p r i o r i n f o r m a t i o n i s n o t a v a i l a b l e . 3. B e g i n n i n g i n 2 0 0 5 - 0 6 , t h e S t a t e i m p l e m e n t e d a " V L F S w a p , " u n d er w h i c h a n e q u a l a m o u n t o f V e hi c l e L i c e n s e F e e s w a s " s w a p p e d " f o r a n e q u a l a m o u n t o f r e v e n u e s t o b e c o l l e c t e d w i t h t h e p r o p e r t y t a x r o l l . 4. I n N o v e m b e r 2 0 0 6 , v o t e r s i n S a n L u i s O b i s p o a p p r o v e d a l o ca l s a l e s a n d u s e t a x m e a s u r e ( M e a s ur e Y ) i n c r e a s i n g t h e C i t y r a t e b y 1 / 2 % , w h i c h b e c a m e e f f e c t i v e A p r i l 1 , 2 0 0 7 . T h e s a l e s t a x m e a s u r e h a s a s u n s e t p r o v i s i o n o f 8 y e a r s . 14 2   Sc h e d u l e 4 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Fu n d B a l a n c e s o f G o v e r n m e n t a l F u n d s La s t T e n F i s c a l Y e a r s (M o d i f i e d A c c r u a l B a s i s o f A c c o u n t i n g ) Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 20 0 6 - 0 7 20 0 7 - 0 8 20 0 8 - 0 9 20 0 9 - 1 0 20 1 0 - 1 1 20 1 1 - 1 2 2012-132013-142014-15 Ge n e r a l f u n d : R e s e r v e d 31 1 , 5 0 0 $ 43 7 , 8 0 0 $ 80 8 , 1 0 0 $ 29 1 , 5 0 0 $ 20 1 , 8 0 0 $ $ $ $ $ $ U n r e s e r v e d : D e s i g n a t e d 1, 6 2 3 , 3 0 0 74 3 , 5 0 0 1, 0 9 3 , 9 0 0 12 5 , 0 0 0 92 3 , 5 0 0 U n d e s i g n a t e d 11 , 6 2 5 , 1 0 0 17 , 6 4 8 , 7 0 0 12 , 9 2 7 , 1 0 0 13 , 5 7 5 , 4 0 0 9, 9 8 8 , 8 0 0 N o n s p e n d a b l e : P r e p a i d i t e m s 2,777,000 3,191,055 60,181 R e s t r i c t e d f o r : ( N o t e 1 ) D e b t s e r v i c e 25 8 , 1 0 0 60 2 , 8 0 0 331,600 312,037 303,126 C o m m i t t e d t o : ( N o t e 1 ) G e n e r a l g o v e r n m e n t p r o g r a m s 31 7 , 5 0 0 1, 2 8 8 , 2 0 0 1,768,200 4,973,497 6,570,959 A s s i g n e d t o : C o n t i n g e n c y F u n d 10,458,000 10,486,931 De v e l o p m e n t S e r v i c e s 1,848,386 Sa f e t y F i r e 97,239 S u b s e q u e n t y e a r s e x p e n d i t u r e s 8, 2 0 0 11 , 9 0 0 U n a s s i g n e d 12 , 3 2 4 , 1 0 0 11 , 7 8 1 , 5 0 0 14,060,900 1,382,590 5,199,985 To t a l g e n e r a l f u n d 13 , 5 5 9 , 9 0 0 18 , 8 3 0 , 0 0 0 14 , 8 2 9 , 1 0 0 13 , 9 9 1 , 9 0 0 11 , 1 1 4 , 1 0 0 12 , 9 0 7 , 9 0 0 13 , 6 8 4 , 4 0 0 18,937,700 20,317,179 24,566,807 Al l o t h e r gov e r n m e n t a l f u n d s : R e s e r v e d 3 , 0 0 1 , 1 0 0 3 , 4 1 2 , 2 0 0 8 , 5 5 7 , 1 0 0 1 0 , 0 3 8 , 2 0 0 6 , 9 3 2 , 6 0 0 U n r e s e r v e d r e p o r t e d i n : C a p i t a l p r o j e c t s f u n d s 1 1 , 9 3 6 , 7 0 0 1 1 , 4 4 1 , 3 0 0 1 0 , 9 6 2 , 0 0 0 1 9 , 7 4 8 , 9 0 0 1 , 2 4 5 , 0 0 0 S p e c i a l r e v e n u e f u n d s 6 1 5 , 9 0 0 4 5 8 , 7 0 0 5 8 5 , 5 0 0 6 2 6 , 9 0 0 9 2 0 , 3 0 0 R e s t r i c t e d f o r : ( N o t e 1 ) D e b t s e r v i c e 2, 2 8 5 , 7 0 0 2 , 0 1 7 , 9 0 0 2 , 0 4 3 , 2 0 0 2 , 0 4 3 , 2 2 2 2,140,980 L a w e n f o r c e m e n t g r a n t p r o g r a m s 42 , 0 0 0 2 0 , 5 0 0 2 2 , 9 0 0 2 7 , 1 4 5 16,886 C o m m i t t e d t o : A f f o r d a b l e h o u s i n g p r o g r a m s 29 4 , 0 0 0 1 , 0 5 2 , 0 0 0 1 , 2 5 4 , 9 0 0 2 , 9 4 6 , 8 4 7 2,601,882 A s s e s s m e n t d i s t r i c t p r o g r a m s 17 0 , 7 0 0 1 8 3 , 0 0 0 C a p i t a l o u t l a y 1, 1 7 2 , 8 0 0 1 , 2 2 7 , 7 0 0 1 , 3 2 6 , 0 0 0 6 , 0 4 5 , 0 9 1 3,632,641 Ge n e r a l g o v e r n m e n t p r o g r a m s 4,743,552 1,084,221 Im p a c t F e e s P r o g r a m s 4, 3 5 0 , 0 0 0 4 , 0 6 9 , 8 0 0 3 , 5 4 2 , 7 0 0 4 1 1 , 5 9 2 9,410,273 O p e n s p a c e p r o g r a m s 18 3 , 4 0 0 1 9 4 , 3 0 0 1 , 5 8 2 , 4 2 5 983,402 P a r k l a n d d e v e l o p m e n t p r o g r a m s 99 8 , 9 0 0 1 , 0 5 7 , 1 0 0 1 , 2 0 9 , 6 0 0 P u b l i c a r t p r o g r a m s 29 3 , 7 0 0 3 7 3 , 7 0 0 3 4 7 , 4 0 0 A s s i g n e d t o : S u b s e q u e n t y e a r s e x p e n d i t u r e s 8, 9 9 7 , 8 0 0 4 , 3 5 9 , 3 0 0 5 , 4 1 3 , 9 0 0 3 , 5 5 2 , 3 1 9 2,606,757 U n a s s i g n e d (2,500) 1 , 0 3 9 (83) To t a l a l l o t h e r g o v e r n m e n t a l f u n d s 1 5 , 5 5 3 , 7 0 0 1 5 , 3 1 2 , 2 0 0 2 0 , 1 0 4 , 6 0 0 9 , 0 9 7 , 9 0 0 1 8 , 6 0 5 , 6 0 0 1 4 , 5 4 4 , 4 0 0 1 5 , 3 5 2 , 4 0 0 2 1 , 3 5 3 , 2 3 2 22,476,959 To t a l a l l g o v e r n m e n t a l f u n d s 2 9 , 1 1 3 , 6 0 0 $ 3 4 , 1 4 2 , 2 0 0 $ 3 4 , 9 3 3 , 7 0 0 $ 1 3 , 9 9 1 , 9 0 0 $ 2 0 , 2 1 2 , 0 0 0 $ 3 1 , 5 1 3 , 5 0 0 $ 2 8 , 2 2 8 , 8 0 0 $ 3 4 , 2 9 0 , 1 0 0 $ 4 1 , 6 7 0 , 4 1 1 $ 47,043,766$ No t e : Th e C i t y i m p l e m e n t e d G A S B S t a t e m e n t N o . 5 4 i n t h e 2 0 1 0 - 1 1 f i s c a l ye a r w h i c h r e q u i r e s t h e C i t y t o u s e n e w d e s i g n a t i o n s o f e n d i n g f u n d b a l a n c e s . 14 3   Sc h e d u l e 5 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Re v e n u e s , E x p e n d i t u r e s a n d C h a n g e s i n F u n d B a l a n c e s o f G o v e r n m e n t a l F u n d s La s t T e n F i s c a l Y e a r s (M o d i f i e d A c c r u a l B a s i s o f A c c o u n t i n g ) Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 20 0 6 - 0 7 20 0 7 - 0 8 20 0 8 - 0 9 20 0 9 - 1 0 20 1 0 - 1 1 20 1 1 - 1 2 2012-132013-142014-15 Re v e n u e s : Ta x e s S a l e s a n d U s e - g e n e r a l 12 , 6 7 5 , 9 0 0 $ 13 , 9 9 3 , 8 0 0 $ 13 , 5 8 1 , 7 0 0 $ 12 , 0 7 0 , 7 0 0 $ 10 , 7 2 3 , 9 0 0 $ 12 , 0 9 8 , 6 0 0 $ 13 , 2 9 0 , 0 0 0 $ 14,242,200 $ 15,405,808$ 15,272,683$ S a l e s a n d U s e - H a l f P e r c e n t S a l e s T a x 1, 0 0 0 , 0 0 0 5, 9 9 6 , 6 0 0 5, 6 4 1 , 4 0 0 5, 2 5 2 , 5 0 0 5, 6 1 6 , 3 0 0 6, 2 3 7 , 5 0 0 6,493,800 6,774,365 7,136,297 P r o p . 1 7 2 P u b l i c S a f e t y 30 1 , 2 0 0 3 0 8 , 7 0 0 2 8 8 , 4 0 0 3 0 8 , 4 0 0 2 5 7 , 9 0 0 2 7 1 , 3 0 0 3 0 7 , 4 0 0 3 2 7 , 7 0 0 3 9 1 , 5 6 7 409,590 P r o p e r t y 7 , 5 1 9 , 6 0 0 8 , 2 5 5 , 0 0 0 8 , 3 7 4 , 2 0 0 8 , 7 8 8 , 4 0 0 8 , 5 7 9 , 3 0 0 8 , 4 4 1 , 1 0 0 8 , 3 6 7 , 0 0 0 9 , 1 7 6 , 6 0 0 8 , 9 6 0 , 0 1 0 9,631,890 T r a n s i e n t O c c u p a n c y 4, 5 3 9 , 2 0 0 4 , 7 8 6 , 0 0 0 5 , 0 5 4 , 7 0 0 4 , 6 7 9 , 5 0 0 4 , 4 9 6 , 1 0 0 4 , 8 4 4 , 2 0 0 5 , 2 2 2 , 0 0 0 5 , 5 7 2 , 4 0 0 6 , 0 6 3 , 2 3 2 6,805,742 U t i l i t y U s e r s 3 , 9 4 7 , 3 0 0 4 , 0 9 6 , 1 0 0 4 , 1 7 7 , 7 0 0 4 , 3 5 8 , 5 0 0 4 , 8 6 2 , 4 0 0 4 , 5 9 2 , 3 0 0 4 , 5 8 4 , 1 0 0 4 , 9 1 6 , 1 0 0 5 , 3 4 5 , 3 4 2 5,211,207 P r o p e r t y t a x i n - l i e u o f V L F ( N o t e 1 ) 1 , 5 3 0 , 8 0 0 3 , 0 6 1 , 5 0 0 3 , 2 8 0 , 1 0 0 3 , 5 0 4 , 7 0 0 3 , 5 6 5 , 1 0 0 3 , 5 5 1 , 1 0 0 3 , 4 9 2 , 4 0 0 3 , 5 3 3 , 2 0 0 3 , 6 4 5 , 6 9 2 3,849,341 F r a n c h i s e F e e s 2 , 1 0 1 , 3 0 0 2 , 1 5 3 , 7 0 0 2 , 3 6 1 , 7 0 0 2 , 4 3 9 , 4 0 0 2 , 3 9 6 , 7 0 0 2 , 3 5 2 , 1 0 0 2 , 4 6 2 , 3 0 0 2 , 5 5 2 , 3 0 0 2 , 6 3 6 , 5 9 9 2,790,077 B u s i n e s s T a x 1 , 5 7 8 , 0 0 0 1 , 7 0 6 , 7 0 0 1 , 8 6 6 , 4 0 0 1 , 8 7 8 , 5 0 0 1 , 8 3 0 , 1 0 0 1 , 7 9 7 , 8 0 0 1 , 8 3 7 , 5 0 0 2 , 0 5 5 , 3 0 0 2 , 1 4 2 , 9 7 1 2,203,208 R e a l P r o p e r t y T r a n s f e r 39 0 , 6 0 0 2 8 3 , 9 0 0 2 1 3 , 0 0 0 1 5 9 , 1 0 0 1 2 9 , 0 0 0 1 3 3 , 7 0 0 1 4 4 , 0 0 0 2 5 6 , 3 0 0 2 8 7 , 5 6 0 298,191 Fi n e s , f o r f e i t u r e s a n d p e n a l t i e s 2 1 3 , 9 0 0 2 3 6 , 5 0 0 2 2 8 , 2 0 0 2 6 1 , 0 0 0 2 0 1 , 7 0 0 1 7 1 , 4 0 0 1 7 4 , 3 0 0 1 5 9 , 7 0 0 1 5 0 , 1 8 5 184,320 Us e o f m o n e y a n d p r o p e r t y 6 0 1 , 9 0 0 1 , 7 5 1 , 4 0 0 1 , 6 0 5 , 3 0 0 1 , 7 7 5 , 3 0 0 1 , 2 3 9 , 5 0 0 7 4 2 , 5 0 0 7 7 0 , 1 0 0 2 3 7 , 1 0 0 5 6 6 , 9 3 1 467,348 Su b v e n t i o n s a n d g r a n t s V e h i c l e L i c e n s e F e e s ( N o t e 1 ) 9 5 5 , 6 0 0 2 9 6 , 7 0 0 1 9 0 , 3 0 0 1 6 6 , 5 0 0 1 3 5 , 0 0 0 2 0 5 , 6 0 0 4 5 , 6 0 0 1 9 , 3 0 0 O t h e r s u b v e n t i o n s a n d g r a n t s 4 , 8 7 2 , 5 0 0 4 , 6 8 6 , 8 0 0 4 , 6 7 9 , 0 0 0 8 , 7 7 4 , 2 0 0 4 , 8 3 7 , 0 0 0 4 , 7 7 6 , 5 0 0 3 , 9 3 2 , 1 0 0 4 , 6 0 3 , 1 4 0 5 , 9 8 9 , 8 8 1 10,858,570 Ch a r g e s f o r s e r v i c e s 9 , 4 6 0 , 0 0 0 8 , 4 4 8 , 7 0 0 8 , 4 0 9 , 5 0 0 6 , 6 7 7 , 7 0 0 5 , 8 6 5 , 7 0 0 9 , 2 0 9 , 3 0 0 8 , 9 5 4 , 5 0 0 8 , 1 0 6 , 6 0 0 1 1 , 1 6 7 , 0 3 3 12,450,887 Ot h e r r e v e n u e s 1 , 5 0 0 , 8 0 0 2 5 0 , 8 0 0 6 3 3 , 8 0 0 1 , 8 1 0 , 3 0 0 3 9 8 , 0 0 0 2 7 0 , 5 0 0 3 6 , 5 0 0 5 2 6 , 5 0 0 3 5 7 , 4 6 9 217,710 To t a l r e v e n u e s 5 2 , 1 8 8 , 6 0 0 5 5 , 3 1 6 , 3 0 0 6 0 , 9 4 0 , 6 0 0 6 3 , 2 9 3 , 6 0 0 5 4 , 7 6 9 , 9 0 0 5 9 , 0 7 4 , 3 0 0 5 9 , 8 5 7 , 3 0 0 6 2 , 7 7 8 , 2 4 0 6 9 , 8 8 4 , 6 4 5 77,787,061 Ex p e n d i t u r e s : Cu r r e n t : G e n e r a l G o v e r n m e n t 4 , 9 8 8 , 2 0 0 6 , 0 9 3 , 7 0 0 6 , 3 3 3 , 9 0 0 6 , 7 9 3 , 1 0 0 7 , 2 5 3 , 5 0 0 6 , 8 2 8 , 7 0 0 8 , 1 7 5 , 2 0 0 8 , 7 2 3 , 3 0 0 9 , 3 6 2 , 0 3 1 10,534,463 P u b l i c s a f e t y 19 , 2 4 7 , 0 0 0 2 0 , 6 5 9 , 6 0 0 2 5 , 0 5 5 , 9 0 0 2 6 , 0 0 2 , 4 0 0 2 4 , 2 0 3 , 8 0 0 2 3 , 5 0 6 , 1 0 0 2 3 , 9 5 3 , 2 0 0 2 3 , 9 7 3 , 4 0 0 2 4 , 7 9 8 , 5 0 0 24,356,077 T r a n s p o r t a t i o n 1 , 9 6 7 , 8 0 0 2 , 1 7 3 , 5 0 0 2 , 5 3 9 , 8 0 0 3 , 2 2 4 , 2 0 0 3 , 0 1 9 , 7 0 0 2 , 9 0 1 , 9 0 0 2 , 8 6 5 , 1 0 0 2 , 7 9 8 , 2 0 0 2 , 8 8 2 , 2 4 1 2,969,111 L e i s u r e , c u l t u r a l a n d s o c i a l s e r v i c e s 5 , 5 4 1 , 9 0 0 5 , 7 0 5 , 0 0 0 6 , 3 9 8 , 6 0 0 6 , 5 9 8 , 9 0 0 6 , 2 7 9 , 9 0 0 6 , 2 6 8 , 7 0 0 6 , 7 0 4 , 2 0 0 6 , 7 9 0 , 3 0 0 7 , 1 5 5 , 6 1 9 7,250,398 C o m m u n i t y d e v e l o p m e n t 4 , 7 9 9 , 5 0 0 5 , 6 2 0 , 1 0 0 6 , 3 4 1 , 6 0 0 6 , 2 8 0 , 8 0 0 6 , 6 9 0 , 2 0 0 7 , 0 5 3 , 5 0 0 6 , 9 8 6 , 3 0 0 7 , 7 7 7 , 4 0 0 8 , 3 8 9 , 9 5 7 10,047,272 De b t s e r v i c e : P r i n c i p a l 9 1 8 , 1 0 0 1 , 0 6 2 , 4 0 0 1 , 1 2 4 , 3 0 0 1 , 1 5 9 , 9 0 0 1 , 5 5 0 , 2 0 0 1 , 7 7 4 , 0 0 0 1 , 4 9 3 , 2 0 0 1 , 5 4 3 , 0 0 0 1 , 5 3 4 , 6 6 8 3,856,325 I n t e r e s t 7 0 2 , 2 0 0 1 , 0 2 1 , 1 0 0 9 5 3 , 7 0 0 9 1 5 , 9 0 0 1 , 3 5 8 , 5 0 0 1 , 2 4 9 , 2 0 0 1 , 2 1 1 , 8 0 0 1 , 1 9 2 , 7 0 0 1 , 0 4 8 , 6 7 1 1,063,820 D e b t i s s u a n c e c o s t s 2 1 7 , 1 0 0 36 , 0 0 0 14 4   Sc h e d u l e 5 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Re v e n u e s , E x p e n d i t u r e s a n d C h a n g e s i n F u n d B a l a n c e s o f G o v e r n m e n t a l F u n d s , c o n t i n u e d La s t T e n F i s c a l Y e a r s (M o d i f i e d A c c r u a l B a s i s o f A c c o u n t i n g ) Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 20 0 6 - 0 7 20 0 7 - 0 8 20 0 8 - 0 9 20 0 9 - 1 0 20 1 0 - 1 1 20 1 1 - 1 2 2012-132013-142014-15 Ca p i t a l : P u b l i c s a f e t y 50 3 , 0 0 0 $ 1 , 3 8 4 , 5 0 0 $ 1 , 5 4 1 , 5 0 0 $ 1 , 6 5 2 , 7 0 0 $ 4 , 7 0 4 , 4 0 0 $ 4 9 4 , 1 0 0 $ 4 4 7 , 9 0 0 $ 4 5 7 , 7 0 0 $ 8 9 2 , 3 5 1 $ 2,371,865$ T r a n s p o r t a t i o n 4 , 3 6 7 , 4 0 0 2 , 7 6 2 , 2 0 0 6 , 4 0 4 , 2 0 0 6 , 1 7 7 , 6 0 0 4 , 2 3 7 , 2 0 0 6 , 9 1 3 , 2 0 0 9 , 1 2 1 , 0 0 0 5 , 2 2 8 , 3 0 0 4 , 8 5 9 , 8 6 3 14,302,937 L e i s u r e , c u l t u r a l a n d s o c i a l s e r v i c e s 8 9 8 , 8 0 0 1 , 2 5 3 , 2 0 0 6 7 0 , 2 0 0 1 , 2 1 3 , 9 0 0 1 , 1 8 8 , 5 0 0 5 8 4 , 5 0 0 8 6 2 , 0 0 0 3 9 5 , 5 0 0 1 , 2 7 2 , 5 1 0 2,399,211 C o m m u n i t y d e v e l o p m e n t ( N o t e 2 ) 1 0 9 , 7 0 0 1 , 2 8 8 , 6 0 0 1 , 2 7 0 , 0 0 0 1 , 3 8 2 , 5 0 0 3 , 8 9 3 , 7 0 0 8 8 4 , 1 0 0 7 0 5 , 3 0 0 7 0 , 9 0 0 9 3 9 , 0 1 7 123,258 G e n e r a l g o v e r n m e n t 6 , 6 2 4 , 4 0 0 3 7 9 , 5 0 0 1 , 0 5 3 , 4 0 0 8 6 9 , 7 0 0 3 , 0 7 6 , 8 0 0 1 , 7 3 1 , 4 0 0 2 7 4 , 9 0 0 4 2 9 , 7 0 0 1 4 5 , 1 9 9 1,684,045 To t a l e x p e n d i t u r e s 5 0 , 8 8 5 , 1 0 0 4 9 , 4 0 3 , 4 0 0 5 9 , 6 8 7 , 1 0 0 6 2 , 2 7 1 , 6 0 0 6 7 , 4 5 6 , 4 0 0 6 0 , 2 2 5 , 4 0 0 6 2 , 8 0 0 , 1 0 0 5 9 , 3 8 0 , 4 0 0 6 3 , 2 8 0 , 6 2 7 80,958,782 Ex c e s s o f r e v e n u e s o v e r ( u n d e r ) e x p e n d i t u r e s 1 , 3 0 3 , 5 0 0 5 , 9 1 2 , 9 0 0 1 , 2 5 3 , 5 0 0 1 , 0 2 2 , 0 0 0 ( 1 2 , 6 8 6 , 5 0 0 ) ( 1 , 1 5 1 , 1 0 0 ) ( 2 , 9 4 2 , 8 0 0 ) 3 , 3 9 7 , 8 4 0 6 , 6 0 4 , 0 1 8 (3,171,721) Ot h e r F i n a n c i n g So u r c e s ( U s e s ) : Sa l e o f s u r p l u s p r o p e r t y 39 3 , 9 0 0 3 0 , 2 0 0 Is s u a n c e o f d e b t / r e f u n d i n g d e b t 7 , 4 3 3 , 6 0 0 9 , 0 6 7 , 0 0 0 1 , 0 8 0 , 0 0 0 5 , 0 5 0 , 0 0 0 8 5 0 , 7 7 5 8,372,323 Co s t o f d e b t i s s u a n c e (11,500) Pa y m e n t t o r e f u n d e d b o n d e s c r o w a g e n t (2 8 1 , 8 0 0 ) ( 5 , 4 4 2 , 2 0 0 ) Tr a n s f e r s i n 5 , 7 9 8 , 2 0 0 7 , 2 1 5 , 7 0 0 1 5 , 3 5 0 , 1 0 0 8 , 6 5 5 , 4 0 0 8 , 0 8 1 , 9 0 0 6 , 4 6 4 , 1 0 0 8 , 1 2 1 , 2 0 0 8 , 4 0 7 , 6 0 0 1 3 , 8 3 4 , 9 9 8 11,682,079 Tr a n s f e r s o u t ( 6 , 0 5 3 , 5 0 0 ) ( 7 , 5 6 6 , 6 0 0 ) ( 1 5 , 8 1 2 , 1 0 0 ) ( 8 , 9 9 0 , 4 0 0 ) ( 8 , 3 8 3 , 4 0 0 ) ( 6 , 6 9 1 , 3 0 0 ) ( 8 , 1 0 1 , 1 0 0 ) ( 8 , 2 9 2 , 5 0 0 ) ( 1 3 , 9 0 8 , 7 6 9 ) (12,011,531) To t a l o t h e r f i n a n c i n g s o u r c e s ( u s e s ) 7 , 1 7 8 , 3 0 0 ( 3 5 0 , 9 0 0 ) ( 4 6 2 , 0 0 0 ) 8 , 4 5 0 , 2 0 0 ( 3 0 1 , 5 0 0 ) 1 , 2 4 6 , 7 0 0 ( 3 4 1 , 9 0 0 ) 1 0 3 , 6 0 0 7 7 7 , 0 0 4 8,042,871 Ne t c h a n g e i n f u n d b a l a n c e 8 , 4 8 1 , 8 0 0 $ 5 , 5 6 2 , 0 0 0 $ 7 9 1 , 5 0 0 $ 9 , 4 7 2 , 2 0 0 $ ( 1 2 , 9 8 8 , 0 0 0 ) $ 9 5 , 6 0 0 $ ( 3 , 2 8 4 , 7 0 0 ) $ 3 , 5 0 1 , 4 4 0 $ 7 , 3 8 1 , 0 2 2 $ 4,871,150$ De b t s e r v i c e a s a p e r c e n t a g e o f n o n c a p i t a l e x p e n d i t u r e s 5 . 1 3 % 6 . 1 0 % 5 . 1 5 % 4 . 9 3 % 7 . 2 4 % 7 . 6 1 % 6 . 6 8 % 6 . 6 2 % 5 . 9 8 % 1 1 . 0 3 % No t e s : 1. B e g i n n i n g i n 2 0 0 5 - 0 6 t h e S t a t e i m p l e m e n t e d a " V L F s w a p , " u n d er w h i c h a n e q u a l a m o u n t o f V e h i c l e L i c e n s e F e e s w a s " s w a p p e d " fo r a n e q u a l a m o u n t o f r e v e n u e s t o b e c o l l e c t e d o n t h e p r o p e r t y t a x r o l l . 2. C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t ( C D B G ) e x p e n d i t u r e s a r e i n c l ud e d i n t h e C o m m u n i t y D e v e l o p m e n t t o t a l f o r p u r p o s e s o f t h i s sc h e d u l e . 14 5   Sc h e d u l e 6 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Ge n e r a l F u n d O p e r a t i n g E x p e n d i t u r e T r e n d s b y T y p e La s t T e n F i s c a l Y e a r s (M o d i f i e d A c c r u a l B a s i s o f A c c o u n t i n g Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 20 0 6 - 0 7 20 0 7 - 0 8 20 0 8 - 0 9 20 0 9 - 1 0 20 1 0 - 1 1 20 1 1 - 1 2 2012-132013-142014-15 St a f f i n g : S a l a r i e s a n d w a g e s : R e g u l a r s a l a r i e s 17 , 3 8 8 , 2 0 0 $ 18 , 4 9 1 , 7 0 0 $ 22 , 7 4 5 , 8 0 0 $ 24 , 3 1 0 , 1 0 0 $ 24 , 1 8 0 , 4 0 0 $ 23 , 8 4 8 , 4 0 0 $ 23 , 4 3 2 , 4 0 0 $ 23,214,900$ 23,242,170$ 23,804,510$ T e m p o r a r y s a l a r i e s 1, 9 5 6 , 9 0 0 2, 1 0 8 , 0 0 0 2, 0 2 6 , 8 0 0 1, 8 5 1 , 7 0 0 1, 5 9 2 , 7 0 0 1, 5 0 7 , 3 0 0 1, 6 2 6 , 9 0 0 1,812,700 2,191,214 2,137,487 O v e r t i m e 2, 1 8 4 , 0 0 0 2, 4 8 4 , 6 0 0 2, 8 7 6 , 0 0 0 3, 0 0 9 , 2 0 0 2, 3 9 7 , 5 0 0 2, 1 6 2 , 5 0 0 2, 7 6 3 , 1 0 0 3,309,000 3,018,181 3,222,698 B e n e f i t s : R e t i r e m e n t 5, 6 8 6 , 0 0 0 6, 2 7 8 , 3 0 0 7, 4 8 5 , 2 0 0 8, 0 0 6 , 1 0 0 7, 9 1 5 , 9 0 0 7, 8 9 9 , 2 0 0 8, 4 4 4 , 0 0 0 7,661,900 7,637,931 7,943,827 G r o u p h e a l t h / d i s a b i l i t y i n s ( N o t e 1 ) 2, 1 1 4 , 4 0 0 2, 3 9 9 , 9 0 0 2, 7 1 0 , 0 0 0 3, 5 7 9 , 4 0 0 3, 7 4 4 , 2 0 0 3, 4 0 7 , 5 0 0 3, 4 4 1 , 7 0 0 3,463,500 3,387,101 3,319,117 M e d i c a r e 24 6 , 7 0 0 27 1 , 7 0 0 33 9 , 6 0 0 36 3 , 7 0 0 37 0 , 3 0 0 36 7 , 1 0 0 37 1 , 2 0 0 384,400 393,913 408,889 U n e m p l o y m e n t R e i m b u r s e m e n t s 14 , 8 0 0 19 , 6 0 0 42 , 9 0 0 24 , 1 0 0 87 , 6 0 0 35 , 5 0 0 26 , 2 0 0 28,800 31,634 48,588 T o t a l s t a f f i n g 29 , 5 9 1 , 0 0 0 32 , 0 5 3 , 8 0 0 38 , 2 2 6 , 3 0 0 41 , 1 4 4 , 3 0 0 40 , 2 8 8 , 6 0 0 39 , 2 2 7 , 5 0 0 40 , 1 0 5 , 5 0 0 39,875,200 39,902,144 40,885,116 Co n t r a c t s e r v i c e s 3, 7 6 4 , 9 0 0 4 , 3 0 0 , 3 0 0 4 , 5 4 6 , 4 0 0 4 , 2 2 8 , 7 0 0 3, 8 1 2 , 4 0 0 3 , 7 2 8 , 1 0 0 4 , 3 0 6 , 0 0 0 5 , 2 0 8 , 9 0 0 5 , 7 2 5 , 2 9 0 5 , 9 0 3 , 6 3 8 Ot h e r o p e r a t i n g e x p e n d i t u r e s C o m m u n i c a t i o n s & u t i l i t i e s 1, 2 2 1 , 4 0 0 1 , 4 8 9 , 9 0 0 1 , 5 3 9 , 7 0 0 1 , 6 6 2 ,0 0 0 1 , 5 3 8 , 0 0 0 1 , 6 2 9 , 5 0 0 1 , 6 5 8 , 0 0 0 1 , 8 4 2 , 3 0 0 2 , 0 3 4 , 9 9 7 1 , 9 4 5 , 2 4 3 R e n t s & l e a s e s 13 4 , 2 0 0 13 3 , 4 0 0 14 2 , 1 0 0 14 7 , 7 0 0 13 0 , 5 0 0 14 1 , 8 0 0 13 6 , 8 0 0 139,600197,104159,718 I n s u r a n c e : G e n e r a l l i a b i l i t y & p r o p e r t y 90 1 , 0 0 0 83 0 , 3 0 0 1 , 0 5 4 , 9 0 0 1 , 0 5 1 , 5 0 0 1 , 4 4 7 , 3 0 0 1 , 4 3 4 , 6 0 0 1 , 4 7 5 , 6 0 0 1 , 3 2 0 , 7 0 0 1 , 4 2 5 , 4 5 0 1 , 6 4 6 , 6 0 5 W o r k e r s c o m p e n s a t i o n 1, 4 4 1 , 2 0 0 1 , 4 2 3 , 6 0 0 1 , 5 1 4 , 4 0 0 1 , 0 1 7 , 0 0 0 76 0 , 5 0 0 44 7 , 1 0 0 59 4 , 4 0 0 918,0001,405,9161,631,585 O t h e r o p e r a t i n g e x p e n d i t u r e s 2, 2 2 9 , 6 0 0 2 , 8 7 4 , 9 0 0 2 , 6 9 9 , 9 0 0 3 ,0 6 1 , 9 0 0 2 , 3 9 9 , 3 0 0 2 , 5 4 4 , 4 0 0 2 , 6 9 6 , 5 0 0 2 , 9 1 0 , 9 0 0 2 , 9 9 1 , 6 1 9 3 , 6 3 5 , 5 4 2 T o t a l o p e r a t i n g e x p e n d i t u r e s 5, 9 2 7 , 4 0 0 6, 7 5 2 , 1 0 0 6, 9 5 1 , 0 0 0 6, 9 4 0 , 1 0 0 6, 2 7 5 , 6 0 0 6, 1 9 7 , 4 0 0 6, 5 6 1 , 3 0 0 7,131,500 8,055,086 9,018,693 Mi n o r c a p i t a l 77 , 8 0 0 19 5 , 8 0 0 16 2 , 5 0 0 90 , 6 0 0 38 , 3 0 0 10 , 8 0 0 14 , 2 0 0 99,400 195,473 78,414 To t a l p r o g r a m e x p e n d i t u r e s 39 , 3 6 1 , 1 0 0 43 , 3 0 2 , 0 0 0 49 , 8 8 6 , 2 0 0 52 , 4 0 3 , 7 0 0 50 , 4 1 4 , 9 0 0 49 , 1 6 3 , 8 0 0 50 , 9 8 7 , 0 0 0 52,315,000 53,877,993 55,885,861 R e i m b u r s e d e x p e n d i t u r e s (3 , 5 9 0 , 0 0 0 ) (3 , 7 8 6 , 7 0 0 ) (4 , 0 7 5 , 3 0 0 ) (4 , 2 1 0 , 8 0 0 ) (4 , 2 6 4 , 0 0 0 ) (4 , 4 4 9 , 9 0 0 ) (3 , 7 7 4 , 9 0 0 ) (3,732,100) (3,897,420) (3,451,208) To t a l g e n e r a l f u n d o p e r a t i n g e x p e n d i t u r e s 35 , 7 7 1 , 1 0 0 $ 39 , 5 1 5 , 3 0 0 $ 45 , 8 1 0 , 9 0 0 $ 48 , 1 9 2 , 9 0 0 $ 46 , 1 5 0 , 9 0 0 $ 44 , 7 1 3 , 9 0 0 $ 47 , 2 1 2 , 1 0 0 $ 48,582,900$ 49,980,573$ 52,434,653$ No t e : 1. B e g i n n i n g i n 2 0 0 8 - 0 9 , t h e C i t y b e g a n t o f u n d r e t i r e e h e a l t h co s t s o n a f u l l a c c r u a l b a s i s . T h e a d d e d c o s t c o m p a r e d w i t h t h e p r i o r " p a y - a s - y o u - g o " a p p r o a c h i n 2 0 1 1 - 1 2 i s $ 3 6 4 , 8 0 0 . W h i l e t h i s c h a n g e i n a c c o u n t i n g i n c r e a s e s c o s t s i n i t i a l l y , i n t h e n o t - s o - d i s t a n t f u t u r e (a b o u t 1 2 y e a r s ) , i t b e c o m e s a m u c h l e s s e x p e n s i v e o p t i o n t h a n c o n ti n u i n g " p a y - a s - y o u - g o " c a s h f u n d i n g . 14 6   Sc h e d u l e 7 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a As s e s s e d a n d E s t i m a t e d A c t u a l V a l u e o f T a x a b l e P r o p e r t y La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 F i s c a l Y e a r H o m e o w n e r s S e c u r e d R o l l U n i t a r y U n se c u r e d T o t a l D i r e c t M a r k e t V a l u e P e r c e n t a g e o f Ex e m p t i o n s G r o s s V a l u e R o l l T O T A L T a x R a t e ( N o t e 1 ) M a r k e t V a l u e 20 0 5 - 0 6 4 2 , 8 9 1 , 2 0 0 $ 4 , 5 3 8 , 7 6 2 , 0 0 0 $ 4 , 0 1 8 , 8 0 0 $ 23 8 , 1 6 4 , 9 0 0 $ 4, 7 8 0 , 9 4 5 , 7 0 0 $ 1. 0 0 % 4 , 7 8 0 , 9 4 5 , 7 0 0 $ 100% 20 0 6 - 0 7 42 , 6 9 8 , 0 0 0 5, 0 8 5 , 9 3 5 , 7 0 0 6, 9 0 5 , 8 0 0 24 0 , 8 7 1 , 7 0 0 5, 3 3 3 , 7 1 3 , 2 0 0 1. 0 0 % 5 , 3 3 3 , 7 1 3 , 2 0 0 100% 20 0 7 - 0 8 ( N o t e 3 ) 4 2 , 6 0 0 , 2 0 0 5, 4 5 6 , 2 6 4 , 9 0 0 5, 6 7 8 , 5 0 0 25 4 , 7 8 3 , 2 0 0 5, 7 1 6 , 7 2 6 , 6 0 0 1. 0 0 % 5 , 7 1 6 , 7 2 6 , 6 0 0 100% 20 0 8 - 0 9 42 , 3 8 4 , 8 0 0 5, 8 2 8 , 4 9 2 , 8 0 0 5, 5 8 2 , 8 0 0 27 4 , 1 8 6 , 7 0 0 6, 1 0 8 , 2 6 2 , 3 0 0 1. 0 0 % 6 , 1 0 8 , 2 6 2 , 3 0 0 100% 20 0 9 - 1 0 42 , 2 2 2 , 4 0 0 6, 0 0 8 , 9 3 6 , 6 0 0 4, 9 0 4 , 1 0 0 27 7 , 7 1 8 , 5 0 0 6, 2 9 1 , 5 5 9 , 2 0 0 1. 0 0 % 6 , 2 9 1 , 5 5 9 , 2 0 0 100% 20 1 0 - 1 1 41 , 9 2 9 , 8 0 0 5, 9 8 5 , 2 9 4 , 7 0 0 5, 5 0 5 , 0 0 0 27 9 , 4 3 4 , 5 0 0 6, 2 7 0 , 2 3 4 , 2 0 0 1. 0 0 % 6 , 2 7 0 , 2 3 4 , 2 0 0 100% 20 1 1 - 1 2 41 , 9 8 8 , 1 0 0 5, 8 9 4 , 1 8 9 , 7 0 0 6, 8 4 2 , 3 0 0 27 5 , 8 0 0 , 1 0 0 6, 1 7 6 , 8 3 2 , 1 0 0 1. 0 0 % 6 , 1 7 6 , 8 3 2 , 1 0 0 100% 20 1 2 - 1 3 41 , 5 7 2 , 3 0 0 5, 9 6 3 , 1 8 2 , 5 0 0 5, 3 8 2 , 2 7 2 27 9 , 2 0 3 , 9 0 0 6, 2 6 1 , 9 3 1 , 9 0 0 1. 0 0 % 6 , 2 6 1 , 9 3 1 , 9 0 0 100% 20 1 3 - 1 4 41 , 3 2 7 , 3 0 0 6, 1 5 2 , 6 9 3 , 4 0 0 5, 3 0 0 , 1 7 3 29 5 , 6 2 6 , 2 0 0 6, 4 6 7 , 6 0 0 , 4 0 0 1. 0 0 % 6 , 4 6 7 , 6 0 0 , 4 0 0 100% 20 1 4 - 1 5 41 , 1 8 5 , 2 0 0 6, 5 1 2 , 3 7 0 , 2 6 0 5, 0 3 2 , 2 0 4 29 7 , 3 2 5 , 3 2 1 6, 8 1 4 , 7 2 7 , 7 8 5 1. 0 0 % 6 , 8 1 4 , 7 2 7 , 7 8 5 100% NOT E S : 1 . V a l u a t i o n s a r e e s t a b l i s h e d b y t h e C o u n t y A s s e s s o r o f t h e C o u n t y o f S a n L u i s O b i s p o , e x c e p t f o r p r o p e r t y o w n e d b y p r i v a te u t i l i t y c o m p a n i e s , w h i c h i s v a l u e d b y t h e S t a t e o f C a l i f o r n i a . T h e C i t y as s u m e s t h a t M a r k e t V a l u e s a r e e q u a l t o t o t a l A s s e s s e d V a l u a t i o n . 2. F o r c o m p a r i s o n p u r p o s e s , g r o s s a s s e s s e d v a l u a t i o n s i n c l u d e h o m e o w n e r s ' e x e m p t i o n s . A l t h o u g h t h e s e e x e m p t i o n s r e d u c e p r o p e r ty tax collections, the r e v e n u e l o s s i s r e i m b u r s e d b y t h e S t a t e o f C a l i f o r n i a . A s s u c h , g r o s s a s s e s s e d v a l u a t i o n i s t h e r e v e n u e b a s e u s e d i n e s t a bl i s h i n g p r o p e r t y t a x - r e l a t e d r e v e n u e s . 3. T h e d e c r e a s e i n v a l u e o f ut i l i t y t a x a b l e p r o p e r t y i n 2 0 0 7 - 0 8 i s d u e t o a fe d e r a l l y m a n d a t e d d e c r e a s e i n t h e a s s e s s m e n t r a t i o o n r a i l r o a d p r o p e r t y . So u r c e : S a n L u i s O b i s p o C o u n t y A u d i t o r - C o n t r o l l e r Gr o s s A s s e s s e d V a l u a t i o n ( N o t e s 1 a n d 2 ) 14 7   Sc h e d u l e 8 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Pr o p e r t y T a x R a t e s La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 2 0 0 6 - 0 7 20 0 7 - 0 8 20 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 Pr o p o s i t i o n 1 3 m a x i m u m t a x r a t e ( N o t e 2 ) 1. 0 0 0 1. 0 0 0 1. 0 0 0 1 . 0 0 0 1 . 0 0 0 1 . 00 0 1 . 0 0 0 1 . 0001.0001.000 Vo t e r a p p r o v e d i n d e b t e d n e s s : S t a t e w a t e r p r o j e c t 0. 0 0 2 0 . 0 0 2 0. 0 0 2 0 . 0 0 2 0 . 0 0 2 0 . 0 0 3 0 . 0 0 3 0 . 0 0 4 0 . 0 0 4 0 . 0 0 4 E l e m e n t a r y a n d h i g h s c h o o l B o n d a n d l e a s e a g r e e m e n t s 0. 0 0 0 0 . 0 0 0 0. 0 0 0 0 . 0 0 0 0 . 0 0 0 0 . 0 0 0 0 . 0 0 0 0 . 0 0 0 0 . 0 0 0 0 . 0 0 0 To t a l ( N o t e s 1 a n d 3 ) 1. 0 0 2 1 . 0 0 2 1. 0 0 2 1 . 0 0 2 1 . 0 0 2 1 . 0 0 3 1 . 0 0 3 1 . 0 0 4 1 . 0 0 4 1 . 0 0 4 No t e s : 1. P r o p e r t y t a x r a t e s a r e l e v i e d p e r $ 1 0 0 o f a s s e s s e d v a l u a t i o n . T h e t a x r a t e i n f o r m a t i o n p r o v i d e d i s f o r T a x R a t e A r e a 0 0 3 - 0 0 0, which is the l a r g e s t t a x r a t e a r e a i n t h e C i t y . 2. T h e p a s s a g e o f P r o p o s i t i o n 1 3 o n J u n e 6 , 1 9 7 8 e s t a b l i s h e d a ma x i m u m C o u n t y - w i d e l e v y f o r g e n e r a l r e v e n u e p u r p o s e s o f 1 % o f market value. V o t e r - a p p r o v e d t a x r a t e s f o r t h e r e t i r e m e n t o f l o n g - t e r m l i a b i l i t i e s w e r e e x c l u d e d f r o m t h i s l i m i t . 3. I t i s n o t p o s s i b l e t o i d e n t i f y t a x r a t e s f o r i n d i v i d u a l a g en c i e s h o w e v e r , t h e f o l l o w i n g i s a s u m m a r y o f d e r i v e d p r o p e r t y t a x a l l o c a t i o n s w i t h i n T a x R a t e A r e a 0 0 3 - 0 0 0 f o r F i s c a l Y e a r 2 0 0 8 - 0 9 : Ba s e E R A F Ne t Ra t e A l l o c a t i o n A p p o r t i o n m e n t Sa n L u i s C o a s t a l U n i f i e d S c h o o l D i s t r i c t 36 . 1 36 . 1 Sa n L u i s O b i s p o C o u n t y - G e n e r a l F u n d 30 . 3 2 (8 . 2 ) 22 . 1 2 Ci t y o f S a n L u i s Ob i s p o 18 . 3 6 * ( 3 . 5 ) 14 . 8 6 Sa n L u i s O b i s p o C o m m u n i t y C o l l e g e D i s t r i c t 6. 4 6. 4 Co u n t y S c h o o l S e r v i c e s 3. 8 3. 8 Ci t y / C o u n t y L i b r a r y 2. 0 0 (0 . 3 ) 1. 7 Po r t S a n L u i s H a r b o r 1. 6 (0 . 4 ) 1. 2 Ot h e r A g e n c i e s 1. 4 (0 . 1 ) 1. 3 Ed u c a t i o n R e v e n u e A u g m e n t a t i o n F u n d ( E R A F ) 12 . 5 12 . 5 T o t a l 10 0 % 0% 10 0 % *T h e C o u n t y f u r t h e r a d j u s t s t h e 1 8 . 4 % b a s e r a t e f o r r e v e n u e s h i f t s t o s c h o o l d i s t r i c t s a s d i r e c t e d b y t h e S t a t e a s p a r t o f t h e i r c u t s t o l o c a l a g e n c i e s , r e s u l t i n g i n a n e f f e c ti v e r a t e f o r t h e C i t y o f a p p r o x i m a t e l y 1 4 . 9 % . So u r c e : P r e p a r e d b y H d L , C o r e n & C o n e Da t a s o u r c e : S a n L u i s O b i s p o C o u n t y A s s e s s o r 2 0 1 4 / 1 5 A n n u a l T a x I n c r e m e n t T a b l e s 14 8   Sc h e d u l e 9 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Pr i n c i p a l P r o p e r t y T a x p a y e r s Cu r r e n t Y e a r a n d N i n e Y e a r s A g o Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 Nu m b e r o f S e c u r e d Pe r c e n t o f T o t a l N u m b e r o f S e c u r e d Percent of Total Ow n e r Pa r c e l s A s s e s s e d V a l u e R a n k C i t y A s s e s s e d V a l u e P a r c e l s A s s e s s e d V a l u e R a n k C i t y A s s e s s e d V a l u e Ja m e s t o w n P r e m i r S L O C o u r t E t a l 9 10 3 , 3 6 7 , 1 6 4 $ 1 1. 5 2 % Mu s t a n g - U c a l L L C 4 76 , 9 7 8 , 9 0 9 2 1. 1 3 % 5 42 , 7 4 2 , 4 5 5 $ 10.0089 Si e r r a V i s t a H o s p i t a l I n c . 8 72 , 6 2 4 , 6 0 6 3 1. 0 7 % 6 42 , 4 9 0 , 8 3 7 2 0.89% Ch a r l e s P a s q u i n i J r T r u s t 9 59 , 8 7 0 , 3 3 6 4 0. 8 8 % Ir i s h H i l l s P l a z a W e s t I I L L C 6 46 , 0 4 3 , 6 0 1 5 0. 6 8 % SL O P r o m e n a d e L i m i t e d P a r t n e r s h i p 9 41 , 1 2 6 , 6 9 0 6 0. 6 0 % 1 0 30 , 0 5 4 , 4 2 3 3 0.63% Co s t c o W h o l e s a l e C o r p o r a t i o n 1 33 , 3 6 4 , 9 2 1 7 0. 4 9 % Ma r i g o l d C e n t e r L L C 9 26 , 2 7 9 , 6 0 0 8 0. 3 9 % 9 23 , 1 1 1 , 2 9 2 50.48% Ta r g e t C o r p o r a t i o n 1 25 , 8 3 2 , 5 3 7 9 0. 3 8 % St e p h e n N . D o r s i T r u s t 15 23 , 5 4 3 , 3 3 8 10 0. 3 5 % Jo h n E . & C a r o l e D . K i n g 11 27 , 6 0 1 , 0 3 5 4 0.58% Sa n L u i s O b i s p o D o w n t o w n C e n t r e L L C 7 21 , 3 0 2 , 5 2 4 6 0.45% MP R I n s t i t u t i o n a l A s s o c i a t e s 3 19 , 7 7 2 , 7 3 0 7 0.41% Ch a r t e r C o m m u n i c a t i o n s P r o p e r t i e s 4 18 , 0 8 4 , 1 0 6 8 0.38% Ro b i n R o s s i T r u s t 19 17 , 5 7 1 , 8 9 5 9 0.37% La r w i n C o m p a n y 27 16 , 8 3 5 , 0 6 2 1 0 0.35% T o t a l 50 9 , 0 3 1 , 7 0 2 $ 7. 4 9 % 25 9 , 5 6 6 , 3 5 9 $ 5.43% So u r c e : D H L C A F R r e p o r t . 20 1 4 - 1 5 2005-06 14 9   Sc h e d u l e 1 0 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Se c u r e d P r o p e r t y T a x R o l l L e v i e s a n d C o l l e c t i o n s La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 To t a l S e c u r e d Cu r r e n t Y e a r P e r c e n t Fi s c a l Ta x L e v y C u r r e n t Y e a r P e r c e n t D e l i n q u e n c i e s D e l i n q u e n t Ye a r ( N o t e s 1 a n d 2 ) C o l l e c t i o n s C o l l e c t e d (N o t e 3 ) (N o t e 3 ) 20 0 5 - 0 6 6, 6 3 9 , 0 0 0 6, 6 3 9 , 0 0 0 10 0 % - - 20 0 6 - 0 7 7, 3 5 4 , 9 0 0 7, 3 5 4 , 9 0 0 10 0 % - - 20 0 7 - 0 8 7, 8 6 8 , 7 0 0 7, 8 6 8 , 7 0 0 10 0 % - - 20 0 8 - 0 9 8, 3 3 5 , 4 0 0 8, 3 3 5 , 4 0 0 10 0 % - - 20 0 9 - 1 0 8, 4 5 6 , 8 0 0 8, 4 5 6 , 8 0 0 10 0 % - - 20 1 0 - 1 1 8, 4 0 5 , 6 0 0 8, 4 0 5 , 6 0 0 10 0 % - - 20 1 1 - 1 2 8, 2 6 9 , 3 0 0 8, 2 6 9 , 3 0 0 10 0 % - - 20 1 2 - 1 3 8, 1 5 1 , 0 0 0 8, 1 5 1 , 0 0 0 10 0 % - - 20 1 3 - 1 4 8, 6 0 1 , 6 3 0 8, 6 0 1 , 6 3 0 10 0 % - - 20 1 4 - 1 5 9, 0 9 7 , 2 8 0 9, 0 9 7 , 2 8 0 10 0 % - - No t e s : 1. T h e s e c u r e d p r o p e r t y t a x r o l l i s c o m p o s ed o f a d v a l o r e m t a x e s a s w e l l a s s p e c i a l a s s e s s m e n t s , a n d i s c a l c u l a t e d b y t h e S a n Lu i s O b i s p o C o u n t y A u d i t o r - C o n t r o l l e r . T h e S a n L u i s O b i s p o C o u n t y T a x Co l l e c t o r i s r e s p o n s i b l e f o r a l l pr o p e r t y t a x r o l l c o l l e c t i o n s w it h i n t h e C i t y o f S a n L u i s O b i s p o . T h e a m o u n t r e p o r t e d i s b e f o r e t h e S B 2 5 5 7 C o u n t y a d m i n i s t r a t i v e f e e s o f a p p r o x i m a t e l y 3 % o f t o t a l p r o p e rt y t a x r e v e n u e s . 2. T h e s e c u r e d l e v y d o e s n o t i n c l u d e s u p p le m e n t a l a s s e s s m e n t s , u n s e c u r e d t a x r e v e n u e s , o r p r i o r y e a r a d j u s t m e n t s , w h i c h c a n b e s i g n i f i c a n t . F o r e x a m p l e , i n 2 0 1 2 - 1 3 r e v e n u e t o t h e C i t y f r o m s u p p l e me n t a l a s s e s s m e n t s w a s $ 9 9 , 5 0 0 a nd $ 2 1 5 , 1 0 0 f r o m u n s e c u r e d . A o n e - ti m e r e f u n d w a s r e c e i v e d f r o m t h e C o u n t y A u d i t o r - C o n t r o l l e r , r e f u n d i n g $ 6 3 2 , 8 0 0 r e p r e s e n t i n g p r i o r o v e r c h a r g e s f o r t h e S B 2 5 5 7 f e e . P r o p e r ty t a x r e v e n u e s t o t a l e d $ 8 , 7 4 0 , 7 6 2 . 3. T h e C i t y h a s e l e c t e d t h e T e e t e r P l a n m e t h o d o f p r o p e r t y t a x c o l l e c t i o n , w h e r e b y t h e C o u n t y r e m i t s 1 0 0 % o f t a x e s l e v i e d a n d p u r s u e s c o l l e c t i o n a n d r e t a i n s a n y d e l i n qu e n t t a x e s a n d r e l a t e d p e n a l t i e s a n d i n t e r e s t . So u r c e : S a n L u i s O b i s p o Co u n t y A u d i t o r - C o n t r o l l e r 15 0   Sc h e d u l e 1 1 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Sc h e d u l e o f T a x a b l e S a l e s a n d P e r m i t s b y C a t e g o r y La s t T e n C a l e n d a r Y e a r s 20 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 Sa l e s I n T h o u s a n d s o f D o l l a r s Ap p a r e l s t o r e s 4 2 , 4 8 8 $ 4 9 , 0 5 1 $ 54 , 3 4 5 $ 59 , 3 0 9 $ 77 , 2 5 2 $ 80 , 5 6 2 $ 76 , 2 2 9 $ 73,441$ 75,136$ 75,491$ Ge n e r a l m e r c h a n d i s e s t o r e s 11 1 , 3 3 9 17 1 , 0 0 1 17 2 , 3 4 7 16 7 , 8 8 7 12 4 , 5 7 6 12 6 , 0 7 9 15 2 , 0 4 4 171,942 174,094 179,741 Fo o d a n d d r u g s t o r e s 46 , 5 7 5 44 , 7 6 8 45 , 7 0 3 48 , 0 8 4 55 , 8 7 0 54 , 7 2 9 58 , 5 5 6 45,284 46,725 47,702 Ea t i n g & d r i n k i n g p l a c e s 11 3 , 8 6 6 12 2 , 2 9 2 12 6 , 8 6 5 12 7 , 2 7 4 12 4 , 0 6 0 12 2 , 7 7 7 13 0 , 8 5 3 140,337 145,602 156,393 Ho m e f u r n i s h i n g s & a p p l i a n c e s 49 , 1 9 5 52 , 4 5 4 54 , 9 3 2 63 , 5 6 8 69 , 1 8 7 67 , 3 3 7 65 , 9 0 3 69,138 65,835 68,891 Bu i l d i n g m a t e r i a l s & f a r m t o o l s 11 9 , 6 0 3 12 4 , 9 0 0 10 8 , 7 9 3 82 , 1 5 4 73 , 8 1 2 74 , 3 4 2 83 , 7 3 5 112,229 127,035 131,741 Au t o d e a l e r s & s u p p l i e s 26 4 , 2 6 8 25 1 , 1 7 3 24 1 , 0 0 8 19 6 , 5 7 9 15 7 , 2 7 1 17 4 , 3 0 2 19 1 , 4 9 5 231,097 273,692 291,444 Se r v i c e s t a t i o n s 76 , 3 3 1 83 , 4 9 5 81 , 0 3 0 82 , 1 4 2 71 , 5 1 2 85 , 0 1 7 10 3 , 2 8 6 109,072 104,420 103,140 Ot h e r r e t a i l s t o r e s 17 9 , 8 2 5 18 1 , 2 3 1 17 7 , 2 2 2 15 1 , 1 3 0 11 7 , 8 2 5 12 1 , 5 0 4 12 8 , 5 2 2 259,218 256,955 262,830 T o t a l r e t a i l s t o r e s 1, 0 0 3 , 4 9 0 1, 0 8 0 , 3 6 5 1, 0 6 2 , 2 4 5 97 8 , 1 2 7 87 1 , 3 6 5 90 6 , 6 4 9 99 0 , 6 2 3 1,211,758 1,269,4941,317,373 Al l o t h e r o u t l e t s 13 6 , 6 7 3 14 7 , 7 1 4 16 3 , 9 2 5 18 5 , 6 6 6 16 0 , 9 3 1 17 3 , 5 8 9 19 7 , 8 3 1 267,561 295,961299,049 T o t a l 1, 1 4 0 , 1 6 3 $ 1, 2 2 8 , 0 7 9 $ 1, 2 2 6 , 1 7 0 $ 1, 1 6 3 , 7 9 3 $ 1, 0 3 2 , 2 9 6 $ 1, 0 8 0 , 2 3 8 $ 1, 1 8 8 , 4 5 4 $ 1,479,319$ 1,565,455$ 1,616,422$ Pe r m i t s Ap p a r e l s t o r e s 71 78 91 10 3 11 3 12 0 11 1 122 131 103 Ge n e r a l m e r c h a n d i s e s t o r e s 20 20 20 27 14 14 14 12 12 14 Fo o d a n d d r u g s t o r e s 39 37 33 34 42 45 49 53 55 53 Ea t i n g & d r i n k i n g p l a c e s 19 0 18 5 18 7 19 6 18 0 18 5 18 8 204 213 239 Ho m e f u r n i s h i n g s & a p p l i a n c e s 74 75 74 73 88 91 86 88 84 81 Bu i l d i n g m a t e r i a l s & f a r m t o o l s 30 30 30 30 40 40 39 41 39 39 Au t o d e a l e r s & s u p p l i e s 65 53 63 58 69 70 64 62 60 65 Se r v i c e s t a t i o n s 17 22 24 21 21 21 17 17 17 17 Ot h e r r e t a i l s t o r e s 35 2 36 4 35 8 34 8 61 0 59 0 57 9 602 661 722 T o t a l r e t a i l s t o r e s 85 8 86 4 88 0 89 0 1, 1 7 7 1, 1 7 6 1, 1 4 7 1,201 1,272 1,333 Al l o t h e r o u t l e t s 1, 1 0 6 1, 0 7 5 1, 0 7 4 1, 0 2 4 67 2 68 8 65 6 666 664 678 T o t a l 1, 9 6 4 1, 9 3 9 1, 9 5 4 1, 9 1 4 1, 8 4 9 1, 8 6 4 1, 8 0 3 1,867 1,936 2,011 So u r c e : S t a t e B o a r d o f E q u a l i z a t i o n , S t a t e o f C a l i f o r n i a Ta x a b l e S a l e s i n C a l i f o r n i a , a n d T h e H D L C o m p a n i e s . 20 1 4 I n f o r m a t i o n i s t h r u J u n e . 15 1   Sc h e d u l e 1 2 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Hi s t o r i c a l S a l e s a n d U s e T a x R a t e s Ef f e c t i v e E n d St a t e Lo c a l Ci t y Co m b i n e d Da t e Da t e Ju r i s d i c t i o n T r a n s p o r t a t i o n F u n d R a t e Ra t e 8/ 1 / 1 9 3 3 6 / 3 0 / 1 9 3 5 ( N o t e 2 ) 2 . 5 0 % 2. 5 0 % 7/ 1 / 1 9 3 5 6 / 3 0 / 1 9 4 3 3. 0 0 % 3. 0 0 % 7/ 1 / 1 9 4 3 6 / 3 0 / 1 9 4 9 2. 5 0 % 2. 5 0 % 7/ 1 / 1 9 4 9 1 2 / 3 1 / 1 9 6 1 3. 0 0 % 3. 0 0 % 1/ 1 / 1 9 6 2 7 / 3 1 / 1 9 6 7 3. 0 0 % 1. 0 0 % 4. 0 0 % 8/ 1 / 1 9 6 7 6 / 3 0 / 1 9 7 2 4. 0 0 % 1. 0 0 % 5. 0 0 % 7/ 1 / 1 9 7 2 6 / 3 0 / 1 9 7 3 3. 7 5 % 0. 2 5 % 1. 0 0 % 5. 0 0 % 7/ 1 / 1 9 7 3 9 / 3 0 / 1 9 7 3 4. 7 5 % 0. 2 5 % 1. 0 0 % 6. 0 0 % 10 / 1 / 1 9 7 3 3 / 3 1 / 1 9 7 4 3. 7 5 % 0. 2 5 % 1. 0 0 % 5. 0 0 % 4/ 1 / 1 9 7 4 1 1 / 3 0 / 1 9 8 9 4. 7 5 % 0. 2 5 % 1. 0 0 % 6. 0 0 % 12 / 1 / 1 9 8 9 1 2 / 3 1 / 1 9 9 0 5. 0 0 % 0. 2 5 % 1. 0 0 % 6. 2 5 % 1/ 1 / 1 9 9 1 7 / 1 4 / 1 9 9 1 4. 7 5 % 0. 2 5 % 1. 0 0 % 6. 0 0 % 7/ 1 5 / 1 9 9 1 1 2 / 3 1 / 2 0 0 0 6. 0 0 % 0. 2 5 % 1. 0 0 % 7. 2 5 % 1/ 1 / 2 0 0 1 1 2 / 3 1 / 2 0 0 1 5. 7 5 % 0. 2 5 % 1. 0 0 % 7. 0 0 % 1/ 1 / 2 0 0 2 6 / 3 0 / 2 0 0 4 6. 0 0 % 0. 2 5 % 1. 0 0 % 7. 2 5 % 7/ 1 / 2 0 0 4 3 / 3 1 / 2 0 0 7 ( N o t e 3 ) 6 . 2 5 % 0. 2 5 % 0. 7 5 % ( N o t e 3 ) 7 . 2 5 % 4/ 1 / 2 0 0 7 3 / 3 1 / 2 0 0 9 6. 2 5 % 0. 2 5 % 1. 2 5 % ( N o t e 4 ) 7 . 7 5 % 4/ 1 / 2 0 0 9 7. 2 5 % 0. 2 5 % 1. 2 5 % 8. 7 5 % 7/ 1 / 2 0 1 1 6. 2 5 % 0. 2 5 % 1. 2 5 % 7. 7 5 % 1/ 1 / 2 0 1 3 7. 2 5 % 0. 2 5 % 0. 5 0 % 8. 0 0 % 1/ 1 / 2 0 1 4 7. 2 5 % 0. 2 5 % 0. 5 0 % 8. 0 0 % 1/ 1 / 2 0 1 5 7. 2 5 % 0. 2 5 % 0. 5 0 % 8. 0 0 % No t e s : 1. T h e B r a d l e y - B u r n s U n i f o r m L o c a l S a l e s a n d U s e T a x L a w w a s e n ac t e d i n 1 9 5 5 . T h e l a w a u t h o r i z e s c i t i e s a n d c o u n t i e s t o i m p o s e a s a l e s a n d u s e t a x . E f f e c t i v e J a n u a r y 1 , 1 9 6 2 , a l l c i t i e s a n d c o u n t i e s ha v e a d o p t e d o r d i n a n c e s f o r t h e S t a t e B o a r d o f E q u a l i z a t i o n t o c o ll e c t t h e l o c a l t a x . 2. S a l e s t a x o n l y . T h e u s e t a x w a s e n a c t e d e f f e c t i v e J u l y 1 , 1 9 3 5 . 3. I n M a r c h 2 0 0 4 , a S t a t e b a l l o t m e a s u r e w a s p a s s e d i s s u i n g d e f i c i t r e d u c t i o n b o n d s f o r S t a t e pu r p o s e s . F u n d i n g w a s p r o v i d e d ef f e c t i v e J u l y 1 , 2 0 0 4 b y r e p e a l i n g 2 5 % o f t h e l o c a l 1 % s a l e s t a x a n d t h e n a d o p t i ng a n e w 1 / 4 - c e n t s a l e s t a x d e d i c a t e d t o r e p a y m e n t o f t h e d e f i c i t r e d u c t i o n b o n d s . C i t i e s a n d c o u n t i e s w o u l d t h e n b e " m a d e w h o l e " b y t h e S t a t e f r o m i n cr e a s e d p r o p e r t y t a x a l l o c a t i o n s v i a r e d u c e d c o n t r i b u t i o n s t o E R A F . T h i s " t r i p l e f l i p " i s t h e o r e t i c a l l y r e v e n u e - n e u t r a l , a n d a s s u c h , th e e f f e c t i v e r a t e f o r r e v e n u e p u r p o s e s r e m a i n s a t 1 % . 4. I n N o v e m b e r 2 0 0 6 , v o t e r s i n S a n L u i s O b i s p o a p p r o v e d a l o c a l s a l e s t a x m e a s u r e i n c r e a s i n g t h e C i t y r a t e b y 1 / 2 % , w h i c h b e c a me e f f e c t i v e A p r i l 1 , 2 0 0 7 . T h e s a l e s t a x m e a s u r e h a s a s u n s e t p r o v i s io n o f 8 y e a r s . T h e l o c a l S a l e s T a x w a s e x t e n d e d a s M e a s u r e G i n th e N o v e m b e r 2 0 1 4 e l e c t i o n f o r 8 y e a r s . So u r c e : S t a t e B o a r d o f E q u a l i z a t i o n , S t a t e o f C a l i f o r n i a 15 2   Sc h e d u l e 1 3 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Sc h e d u l e o f B u s i n e s s T a x C e r t i f i c a t e s I s s u e d Fi s c a l Y e a r s E n d e d J u n e 3 0 , 2 0 1 5 a n d 2 0 1 4 No . o f No . o f Ce r t i f i c a t e s P e r c e n t C er t i f i c a t e s P e r c e n t Co n s t r u c t i o n 94 8 1 2 . 1 % 92 0 1 2 . 1 % Ma n u f a c t u r i n g 13 1 1 . 7 % 13 0 1 . 7 % Tr a n s p o r t a t i o n / U t i l i t i e s 39 0 . 5 % 37 0 . 5 % Wh o l e s a l e 12 8 1 . 6 % 13 0 1 . 7 % Re t a i l 1, 0 1 8 1 3 . 0 % 78 6 1 0 . 4 % Pr o f e s s i o n a l 1, 0 8 0 1 3 . 8 % 82 9 1 0 . 9 % Re s i d e n t i a l R e n t a l 2, 3 5 8 3 0 . 2 % 2 , 7 4 9 3 6 . 3 % Co m m e r c i a l R e n t a l 31 4 4 . 0 % 23 2 3 . 1 % Se r v i c e s 1, 7 8 9 2 3 . 1 % 1 , 7 6 5 2 3 . 3 % T o t a l b u s i n e s s c e r t i f i c a t e s i s s u e d 7, 8 0 5 10 0 % 7 , 5 7 8 100% Ho m e o c c u p a t i o n s 67 3 8 . 6 % 66 1 8 . 7 % Lo c a t e d o u t s i d e C i t y l i m i t s 1, 6 0 2 2 0 . 5 % 1 , 5 8 3 2 0 . 9 % Lo c a t e d i n D o w n t o w n B u s i n e s s I m p r o v e m e n t D i s t r i c t 59 2 7 . 6 % 59 3 7 . 8 % So u r c e : C i t y o f S a n L u i s O b i s p o F i n a nc e & I n f o r m a t i o n T e c h n o l o g y D e p a r t m e n t 20 1 4 20 1 5 15 3   Sc h e d u l e 1 4 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Pe r C a p i t a O u t s t a n d i n g D e b t b y T y p e La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 Le a s e Le a s e I n s t a l l m e n t Percentage of Fi s c a l P u r c h a s e P u r c h a s e S a l e s T o t a l P r i m a r yPerGross Assessed Ye a r B o n d s F i n a n c i n g Lo a n s B o n d s F i n a n c i n g Agre e m e n t L o a n s G o v e r n m e n t C a p i t a Value 20 0 5 - 0 6 2 4 , 0 9 1 , 0 0 0 $ 34 8 , 9 0 0 $ 21 , 4 9 9 , 0 0 0 $ 1, 8 8 8 , 3 0 0 $ 27 , 2 5 9 , 2 0 0 $ 75 , 0 8 6 , 4 0 0 $ 1,690 1.57% 20 0 6 - 0 7 2 3 , 0 7 2 , 7 0 0 30 4 , 8 0 0 36 , 9 4 7 , 3 0 0 1, 6 4 9 , 4 0 0 25 , 9 2 2 , 2 0 0 87 , 8 9 6 , 4 0 0 1,987 1.65% 20 0 7 - 0 8 2 1 , 9 9 4 , 4 0 0 25 8 , 9 0 0 35 , 3 4 5 , 6 0 0 1, 4 0 0 , 4 0 0 2, 0 5 0 , 0 0 0 23 , 6 0 0 , 7 0 0 84 , 6 5 0 , 0 0 0 1,894 1.48% 20 0 8 - 0 9 2 9 , 9 4 9 , 3 0 0 21 1 , 2 0 0 35 , 3 3 0 , 7 0 0 1, 1 4 2 , 1 0 0 2, 0 5 0 , 0 0 0 31 , 2 1 9 , 7 0 0 99 , 9 0 3 , 0 0 0 2,232 1.64% 20 0 9 - 1 0 2 8 , 4 4 8 , 9 0 0 16 1 , 4 0 0 33 , 9 4 6 , 1 0 0 87 2 , 9 0 0 1, 9 5 0 , 0 0 0 28 , 5 5 4 , 0 0 0 93 , 9 3 3 , 3 0 0 2,090 1.49% 20 1 0 - 1 1 2 6 , 8 0 6 , 5 0 0 1, 1 0 9 , 8 0 0 32 , 5 0 3 , 5 0 0 59 3 , 5 0 0 1, 8 4 5 , 0 0 0 25 , 8 0 7 , 0 0 0 88 , 6 6 5 , 3 0 0 1,973 1.41% 20 1 1 - 1 2 2 4 , 9 6 2 , 1 0 0 95 5 , 9 0 0 30 , 0 8 2 , 9 0 0 30 2 , 3 0 0 1, 7 3 5 , 0 0 0 22 , 9 7 6 , 3 0 0 81 , 0 1 4 , 5 0 0 1,788 1.31% 20 1 2 - 1 3 2 3 , 5 7 4 , 9 0 0 82 3 , 4 0 0 2, 0 2 5 , 1 0 0 28 , 6 2 5 , 1 5 0 1, 6 2 0 , 0 0 0 20 , 3 0 9 , 2 0 0 76 , 9 7 7 , 7 5 0 1,690 1.23% 20 1 3 - 1 4 2 2 , 1 5 2 , 0 1 0 71 1 , 6 2 2 85 0 , 7 7 5 27 , 0 8 3 , 0 2 5 8, 9 7 9 , 0 0 0 19 , 4 4 6 , 7 8 4 79 , 2 2 3 , 2 1 6 1,742 1.27% 20 1 4 - 1 5 2 8 , 5 5 6 , 7 1 5 1, 0 3 5 , 1 4 6 76 6 , 0 9 2 25 , 9 8 3 , 3 2 0 8, 4 8 1 , 0 4 3 18 , 5 5 9 , 8 5 1 83 , 3 8 2 , 1 6 7 1,834 1.28% So u r c e s : 1. 2 0 1 4 - 1 5 C A F R S t a t i s t i c a l R e p o r t s b y T h e H d L C o m p a n i e s . ( A s s e s s e d V a l u e ) 2. C i t y o f S a n L u i s O b i s p o F i n a n c e & I n f o r m a t i o n T e c h n o l o g y D e p a r t m e n t Go v e r n m e n t a l A c t i v i t i e s Bu s i n e s s - T ype A c t i v i t i e s 15 4   Sc h e d u l e 1 5 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Ra t i o o f N e t G e n e r a l B o n d e d D e b t t o A s s e s s ed V a l u e a n d N e t B o n d e d D e b t p e r C a p i t a l La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 Se r v i c e Ra t i o o f N e t Ne t T a x a b l e G e n e r a l P a y a b l e f r o m N e t B o n d e d D e b t N e t B o n d e d As s e s s e d B o n d e d E n t e r p r i s e B o n d e d t o A s s e s s e d D e b t p e r Fi s c a l Y e a r P o p u l a t i o n V a l u e D e b t R e v e n u e s D e b t V a l u e C a p i t a 20 0 5 - 0 6 44 , 4 3 9 4 , 7 8 0 , 9 4 5 , 7 0 0 $ - - - 0. 0 % - 20 0 6 - 0 7 44 , 2 3 9 5 , 3 3 3 , 7 1 3 , 2 0 0 - - - 0. 0 % - 20 0 7 - 0 8 44 , 6 9 7 5 , 7 1 6 , 7 2 6 , 6 0 0 - - - 0. 0 % - 20 0 8 - 0 9 44 , 7 5 0 6 , 1 0 8 , 2 6 2 , 3 0 0 - - - 0. 0 % - 20 0 9 - 1 0 44 , 9 4 8 6 , 2 9 1 , 5 5 9 , 3 0 0 - - - 0. 0 % - 20 1 0 - 1 1 45 , 4 1 8 6 , 2 7 0 , 2 3 4 , 2 0 0 - - - 0. 0 % - 20 1 1 - 1 2 45 , 3 0 8 6 , 1 7 6 , 8 3 2 , 1 0 0 - - - 0. 0 % - 20 1 2 - 1 3 45 , 5 4 1 6 , 2 6 1 , 9 3 1 , 9 0 0 - - - 0. 0 % - 20 1 3 - 1 4 45 , 4 7 3 6 , 4 5 4 , 8 3 5 , 3 2 8 - - - 0. 0 % - 20 1 4 - 1 5 45 , 4 8 4 6 , 8 1 4 , 7 2 7 , 7 8 5 - - - 0. 0 % - No t e s : 1. V a l u a t i o n s a r e e s t a b l i s h e d b y t h e C o u n t y A s s e s s o r o f t h e C o un t y o f S a n L u i s O b i s p o , e x c e p t f o r p r o p e r t y o w n e d b y p r i v a t e u t ility c o m p a n i e s , w h i c h i s v a l u e d b y t h e S t a t e o f C a l i f o r n i a . 2. S e e S c h e d u l e o f D e m o g r a p h i c a n d E c o n o m i c S t a t i s t i c s f o r p o p u l a t i o n d a t a . 3. P e r s o n a l i n c o m e i n f o r m a t i o n i s n o t a v a i l a b l e . N e t B o n d e d D e b t i s e x p r e s s e d a s a r a t i o t o A s s e s s e d V a l u e . So u r c e s : H D L 2 0 1 4 - 1 5 R e p o r t s - A s s e t V a l u e a n d d e m o g r a p h i c t a b l e s 15 5   Sc h e d u l e 1 6 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Dir e c t a n d O v e r l a p p i n g L o n g - T e r m D e b t Fi s c a l Y e a r En d e d J u n e 3 0 , 2 0 1 5 Amount Applicable Pe r c e n t A p p l i c a b l e to the City of to t h e C i t y o f San Luis Obispo Sa n L u i s O b i s p o as of June 30, 2015 Di r e c t l o n g - t e r m d e b t : C i t y o f S a n L u i s O b i s p o 2 0 0 1 R e f u n d i n g L e a s e R e v e n u e B o n d s ( 1 9 9 9 ) 10 0 . 0 0 0 % $ C i t y o f S a n L u i s O b i s p o 2 0 0 2 W a t e r R e v e n u e R e f u n d i n g B o n d s ( 1 9 9 3 ) 10 0 . 0 0 0 % C i t y o f S a n L u i s O b i s p o 2 0 0 4 R e f u n d i n g L e a s e R e v e n u e B o n d s ( 1 9 9 4 ) 10 0 . 0 0 0 % C i t y o f S a n L u i s O b i s p o 2 0 0 5 R e f u n d i n g R e v e n u e B o n d s ( 1 9 9 6 ) 10 0 . 0 0 0 % 4,110,000 C i t y o f S a n L u i s O b i s p o 2 0 0 6 L e a s e R e v e n u e B o n d s 10 0 . 0 0 0 % 13,270,000 C i t y o f S a n L u i s O b i s p o 2 0 0 6 W a t e r R e v e n u e B o n d s 10 0 . 0 0 0 % 13,830,000 C i t y o f S a n L u i s O b i s p o 2 0 0 9 L e a s e R e v e n u e B o n d s 10 0 . 0 0 0 % 7,500,035 C i t y o f S a n L u i s O b i s p o 2 0 1 2 R e f u n d i n g R e v e n u e B o n d s ( 2 0 0 1 ) 10 0 . 0 0 0 % 4,410,000 C i t y o f S a n L u i s O b i s p o 2 0 1 2 W a t e r R e v e n u e R e f u n d i n g B o n d s ( 2 0 0 2 ) 10 0 . 0 0 0 % 3,840,000 C i t y o f S a n L u i s O b i s p o 2 0 1 4 L O V R l e a s e R e v e n u e B o n d s 10 0 . 0 0 0 % 7,580,000 54,540,035 Ov e r l a p p i n g l o n g - t e r m d e b t ( p e r c e n t a g e o f o v e r l a p p i n g a g e n c y ' s as s e s s e d v a l u a t i o n l o c a t e d w i t h i n b o u n d a r i e s o f t h e C i t y ) : S a n L u i s O b i s p o C o u n t y C e rt i f i c a t e s o f P a r t i c i p a t i o n 15 . 8 8 5 % 4,505,780 S a n L u i s O b i s p o C o u n t y P e n s i o n O b l i g a t i o n s 15 . 8 8 5 % 16,870,569 S a n L u i s C o m m u n i t y C o l l e g e D i s t r i c t C e r t i f i c a t e s o f P a r t i c i p a t i o n 15 . 8 2 5 % 1,269,956 22,646,305 T o t a l g r o s s d i r e c t a n d o v e r l a p p i n g l o n g - t e r m d e b t 77,186,340 Le s s s e l f - s u p p o r t i n g i s s u e s : C i t y o f S a n L u i s O b i s p o 2 0 0 1 R e f u n d i n g L e a s e R e ve n u e B o n d s ( 1 9 9 9 ) - W a t e r F u n d s u p p o r t e d p o r t i o n C i t y o f S a n L u i s O b i s p o 2 0 0 2 W a t e r R e v e n u e R e f u n d i n g B o n d s ( 1 9 9 3 ) C i t y o f S a n L u i s O b i s p o 2 0 0 4 R e f u n d i n g L e a s e R e ve n u e B o n d s ( 1 9 9 4 ) - P a r k i n g F u n d s u p p o r t e d p o r t i o n C i t y o f S a n L u i s O b i s p o 2 0 0 6 L e a s e R e v e n u e B o n d s - P a r k i n g F u n d s u p p o r t e d p o r t i o n 7,165,800 C i t y o f S a n L u i s O b i s p o 2 0 0 6 W a t e r R e v e n u e B o n d s 13,830,000 C i t y o f S a n L u i s O b i s p o 2 0 0 9 L e a s e R e v e n u e B o n d s - P a r k i n g / S e w e r / W a t e r F u n d s s u p p o r t e d p o r t i o n 1,147,520 C i t y o f S a n L u i s O b i s p o 2 0 1 2 W a t e r R e v e n u e R e f u n d i n g B o n d s ( 2 0 0 2 ) 3,840,000 T o t a l s e l f - s u p p o r t i n g i s s u e s 25,983,320 51,203,020$ Ra t i o o f l o n g - t e r m d e b t t o as s e s s e d v a l u a t i o n a n d p o p u l a t i o n Gr o s s A s s e s s e d V a l u a t i o n 6,511,325,934$ Po p u l a t i o n 45,484 Pe r c e n t o f G r o s s Per Capita Am o u n t As s e s s e d V a l u a t i o n Long-Term Debt Dire c t a n d O v e r l a p p i n g D e b t : Gr o s s $7 7 , 1 8 6 , 3 4 0 1. 2 % $1,697.00 Ne t 51 , 2 0 3 , 0 2 0 0. 8 % 1,126 Di r e c t D e b t : Gr o s s $5 4 , 5 4 0 , 0 3 5 0. 8 % $1,199.10 Ne t 28 , 5 5 6 , 7 1 5 0. 4 % 628 So u r c e : C a l i f o r n i a M u n i c i p a l S t a t i s t i c s , I n c . D H L C A F R r e p o r t . 15 6   Sc h e d u l e 1 7 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Co m p u t a t i o n o f L e g a l D e b t M a r g i n s La s t T e n F i s c a l Y e a r s (a m o u n t s e x p r e s s e d i n t h o u s a n d s ) Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 2 0 0 6 - 0 7 2 0 0 7 - 0 8 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 Le g a l d e b t l i m i t 1 7 9 , 2 8 5 $ 1 9 9 , 7 5 5 $ 2 1 4 , 3 7 7 $ 22 9 , 0 5 9 $ 23 5 , 8 1 5 $ 23 4 , 8 8 7 $ 23 1 , 3 8 4 $ 234,822$ 241,812$ 244,175$ To t a l d e b t a p p l i c a b l e t o l i m i t Le g a l d e b t m a r g i n 16 5 , 5 0 9 1 9 9 , 7 5 5 2 1 4 , 3 7 7 2 2 9 , 0 5 9 23 5 , 8 1 5 23 4 , 8 8 7 23 1 , 3 8 4 234,822 241,812 244,175 To t a l d e b t a p p l i c a b l e t o t h e l i m i t as a p e r c e n t a g e o f d e b t l i m i t 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0 . 0 0 % 0.00% Le g a l D e b t M a r g i n C a l c u l a t i o n f o r F i s c a l Y e a r 2 0 1 4 - 1 5 Gr o s s A s s e s s e d V a l u a t i o n 6,511,325,934$ Le g a l D e b t L i m i t - 3 . 7 5 % o f Gr o s s A s s e s s e d V a l u a t i o n 244,174,723$ Lo n g - t e r m D e b t : Re v e n u e B o n d s S e c u r e d b y C a p i t a l L e a s e s 36,870$ W a t e r R e v e n u e B o n d s 17,670 54,540 Le s s d e d u c t i o n s a l l o w e d b y l a w : Re v e n u e B o n d s S e c u r e d b y C a p i t a l L e a s e s 36,870 W a t e r R e v e n u e B o n d s 17,670 54,540 To t a l d e b t a p p l i c a b l e t o c o m p u t e d l i m i t -$ Le g a l d e b t m a r g i n 244,174,723$ No t e : T h e C a l i f o r n i a G o v e r n m e n t C o d e p r o v i d es f o r a l e g a l d e b t l i m i t o f 1 5 % o f g r o s s as s e s s e d v a l u a t i o n b a s e d o n 2 5 % o f m a r k e t va l u e , o r a l e g a l d e b t l i m i t o f 3 . 7 5 % . T h e C i t y ' s d e b t m a n a g e m e n t p o l i c y , h o w e v e r , se t s a m o r e r e s t r i c t i v e d e b t l i m i t o f 2 % o f a s s e s s e d v a l u a t i o n . 15 7   Sc h e d u l e 1 8 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Re v e n u e B o n d C o v e r a g e – W a t e r F u n d La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 Le s s Op e r a t i n g & N e t R e v e n u e Coverage Fi s c a l O p e r a t i n g D e v e l o p m e n t O t h er M a i n t e n a n c e A v a i l a b l e f o r With Ye a r R e v e n u e s I m p a c t F e e s R e v e n u e s E x p e n s e s B o n d D e b t Se r v i c e P r i n c i p a l I n t e r e s t T o t a l C o v e r a g e I m p a c t F e e s 20 0 5 - 0 6 1 0 , 4 9 5 , 9 0 0 $ (1 , 8 2 2 , 2 0 0 ) $ 25 5 , 0 0 0 $ (6 , 1 7 5 , 0 0 0 ) $ 2, 7 5 3 , 7 0 0 $ 98 6 , 2 0 0 $ 58 7 , 2 0 0 $ 1,573,400$ 175%291% 20 0 6 - 0 7 1 1 , 5 6 5 , 2 0 0 ( 1 , 4 7 9 , 9 0 0 ) 1 , 6 6 9 , 4 0 0 ( 7 , 9 9 9 , 7 0 0 ) 3, 7 5 5 , 0 0 0 1, 2 4 6 , 7 0 0 1, 1 0 9 , 7 0 0 2,356,400 159%222% 20 0 7 - 0 8 1 2 , 6 6 8 , 8 0 0 ( 1 , 3 8 6 , 3 0 0 ) 7 5 9 , 1 0 0 ( 7 , 1 1 1 , 6 0 0 ) 4, 9 3 0 , 0 0 0 1, 3 9 2 , 1 0 0 1, 2 4 3 , 0 0 0 2,635,100 187%240% 20 0 8 - 0 9 1 3 , 4 4 7 , 4 0 0 (6 6 3 , 0 0 0 ) 1, 3 3 9 , 7 0 0 (7 , 8 7 7 , 5 0 0 ) 6, 2 4 6 , 6 0 0 1, 4 2 0 , 3 0 0 1, 2 0 0 , 3 6 8 2,620,668 238%264% 20 0 9 - 1 0 1 3 , 7 5 5 , 8 0 0 (4 4 8 , 2 0 0 ) 71 9 , 8 0 0 (7 , 6 0 3 , 5 0 0 ) 6, 4 2 3 , 9 0 0 1, 0 7 8 , 9 6 0 1, 1 7 1 , 8 8 4 2,250,844 285%305% 20 1 0 - 1 1 1 4 , 2 5 6 , 1 0 0 ( 6 3 9 , 6 0 0 ) 3 8 4 , 5 0 0 ( 1 2 , 3 8 9 , 2 0 0 ) 1, 6 1 1 , 8 0 0 1, 1 0 7 , 7 9 0 1, 1 3 7 , 0 2 1 2,244,811 72%100% 20 1 1 - 1 2 1 6 , 2 6 6 , 3 0 0 ( 6 4 3 , 2 0 0 ) 8 2 5 , 4 0 0 ( 1 3 , 6 6 6 , 1 0 0 ) 2, 7 8 2 , 4 0 0 1, 1 4 6 , 8 8 5 1, 1 3 7 , 4 4 5 2,284,330 122%150% 20 1 2 - 1 3 1 8 , 2 5 0 , 7 0 0 ( 1 , 5 7 8 , 1 0 0 ) 9 7 , 5 0 0 ( 1 3 , 3 5 3 , 3 0 0 ) 3, 4 1 6 , 8 0 0 1, 0 9 6 , 2 1 5 99 5 , 4 1 9 2,091,634 163%239% 20 1 3 - 1 4 1 9 , 6 7 6 , 1 9 9 ( 8 1 9 , 4 7 7 ) 2 1 5 , 9 1 5 ( 1 3 , 9 9 6 , 4 2 7 ) 5, 0 7 6 , 2 1 0 1, 1 6 0 , 7 0 0 96 4 , 1 4 8 2,124,848 239%277% 20 1 4 - 1 5 2 0 , 5 5 2 , 4 1 7 ( 2 , 4 7 1 , 5 0 1 ) 5 9 , 5 9 4 ( 1 3 , 4 5 1 , 2 9 8 ) 4, 6 8 9 , 2 1 2 1, 2 8 5 , 6 8 6 90 6 , 7 7 5 2,192,461 214%327% No t e s : 3. N e t r e v e n u e s a v a i l a b l e f o r d e b t s e r v i c e e x c l u d e d e v e l o p m e n t i m p a c t f e e s . 4. O p e r a t i n g e x p e n s e s e x c l u d e d e p r e c i a t i o n a n d a m o r t i z a t i o n . So u r c e : C i t y o f S a n L u i s O b i s p o F i n a n c e & I n f o r m a t i o n T e c h n o l o g y D e p a r t m e n t 2. P r i n c i p a l a n d i n t e r e s t a m o u n t s do n o t i n c l u d e t h e s u b o r d i n a t e p r i v at e p l a c e m e n t l o a n r e t i r e d i n 2 0 1 3 . Bo n d e d D e b t S e r v i c e R e q u i r e m e n t s 1. D e b t s e r v i c e r e q u i r e m e n t s i n c l u d e 2 0 1 2 R e f u n d i n g R e v e n u e B o n d s , 2 0 0 6 R e f u n d i n g R e v e n u e B o n d s , a n d t h e 2 0 0 4 s t a t e r e v o l v i n g l o a n 15 8   Sc h e d u l e 1 9 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Re v e n u e B o n d C o v e r a g e – P a r k i n g F u n d La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 Ne t R e v e n u e Fi s c a l G r o s s O p e r a t i ng A v a i l a b l e f o r Ye a r R e v e n u e s E x p e n s e s B o n d D e b t S er v i c e P r i n c i p a l I n t e r e s t T o t a l C o v e r a g e 20 0 5 - 0 6 3 , 9 2 1 , 8 0 0 $ ( 1 , 8 7 1 , 7 0 0 ) $ 2 , 0 5 0 , 1 0 0 $ 3 8 4 , 3 0 0 $ 1 6 7 , 3 0 0 $ 55 1 , 6 0 0 $ 372% 20 0 6 - 0 7 4 , 2 6 5 , 5 0 0 (2 , 0 2 1 , 0 0 0 ) 2, 2 4 4 , 5 0 0 39 0 , 6 0 0 53 4 , 7 0 0 92 5 , 3 0 0 243% 20 0 7 - 0 8 4 , 0 2 7 , 5 0 0 (2 , 0 3 2 , 5 0 0 ) 1, 9 9 5 , 0 0 0 40 0 , 1 0 0 48 0 , 7 0 0 88 0 , 8 0 0 226% 20 0 8 - 0 9 4 , 0 0 7 , 9 0 0 (2 , 3 4 4 , 3 0 0 ) 1, 6 6 3 , 6 0 0 41 5 , 8 0 0 46 2 , 5 0 0 87 8 , 3 0 0 189% 20 0 9 - 1 0 3 , 7 8 8 , 3 0 0 (2 , 1 4 2 , 4 0 0 ) 1, 6 4 5 , 9 0 0 59 9 , 6 0 0 44 9 , 2 0 0 1, 0 4 8 , 8 0 0 157% 20 1 0 - 1 1 3 , 7 3 0 , 1 0 0 (2 , 1 9 0 , 2 0 0 ) 1, 5 3 9 , 9 0 0 62 1 , 8 0 0 42 8 , 7 0 0 1, 0 5 0 , 5 0 0 147% 20 1 1 - 1 2 3 , 6 8 8 , 2 0 0 (2 , 3 5 1 , 4 0 0 ) 1, 3 3 6 , 8 0 0 64 2 , 6 0 0 40 8 , 1 0 0 1, 0 5 0 , 7 0 0 127% 20 1 2 - 1 3 4 , 7 2 6 , 0 0 0 (2 , 4 4 0 , 6 0 0 ) 2, 2 8 5 , 4 0 0 66 3 , 5 0 0 38 6 , 0 0 0 1, 0 4 9 , 5 0 0 218% 20 1 3 - 1 4 4 , 1 2 2 , 8 6 0 (2 , 4 8 8 , 7 9 7 ) 1, 6 3 4 , 0 6 3 69 0 , 6 0 0 36 1 , 8 2 2 1, 0 5 2 , 4 2 2 155% 20 1 4 - 1 5 4 , 9 0 5 , 4 9 4 (2 , 4 0 9 , 0 2 7 ) 2, 4 9 6 , 4 6 7 44 7 , 9 6 2 50 4 , 4 0 7 95 2 , 3 6 9 262% No t e s : 1. I n 1 9 9 4 t h e C a p i t a l I m p r o v e m e n t L e a s e R e v e n u e B o n d s w e r e r e fi n a n c e d r e s u l t i n g i n n e w d e b t o f $ 1 1 , 7 8 0 , 0 0 0 , o f w h i c h $ 7 , 4 2 1 , 4 00 i s d e s i g n a t e d f o r t h e P a r k i n g F u n d . I n 2 0 0 4 t h e 1 9 9 4 b o n d s we r e r e f i n a n c e d w i t h a m a t u r i t y da t e o f 2 0 1 4 . I n 2 0 0 6 L e a s e R e v enue B o n d s w e r e i s s u e d r e s u l t i n g i n n e w d e b t o f $ 1 6 , 1 6 0 ,0 0 0 , o f w h i c h $ 8 , 7 2 6 , 4 0 0 i s a l l o c a t e d t o t h e P a r k i n g F u n d . 2. O p e r a t i n g e x p e n s e s e x c l u d e d e p r e c i a t i o n . So u r c e : C i t y o f S a n L u i s O b i s p o F i n a n c e & I n f o r m a t i o n T e c h n o l o g y D e p a r t m e n t . Bo n d e d D e b t S e r v i c e R e q u i r e m e n t s 15 9   Sc h e d u l e 2 0 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a De m o g r a p h i c a n d E c o n o m i c S t a t i s t i c s La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 Me d i a n Pu b l i c E l e m e n t a r y a n d C u e s t a C o m m u n i t y Fi s c a l Ho u s e h o l d M e d i a n S e c o n d a r y S c h o o l Co l l e g e Unemployment Ye a r P o p u l a t i o n ( 1 ) I n c o m e ( 2 ) A g e ( 1 ) E n r o l l m e n t ( 3 ) En r o l l m e n t ( 3 ) Rate (1) 20 0 5 - 0 6 44 , 4 3 9 46 , 4 9 9 30 . 9 7, 0 9 8 8, 3 7 3 4.00% 20 0 6 - 0 7 44 , 2 3 9 38 , 3 2 8 30 . 1 6, 9 8 9 8, 6 7 1 4.10% 20 0 7 - 0 8 44 , 6 9 7 49 , 8 2 7 30 . 1 6, 9 8 2 8, 9 8 3 4.30% 20 0 8 - 0 9 44 , 7 5 0 42 , 5 2 6 37 . 3 7, 1 2 3 9, 7 2 0 9.10% 20 0 9 - 1 0 44 , 9 4 8 40 , 5 7 9 27 . 0 7, 1 1 2 8, 4 3 3 9.70% 20 1 0 - 1 1 45 , 4 1 8 53 , 9 7 8 23 . 4 7, 2 2 6 7, 8 9 0 9.60% 20 1 1 - 1 2 45 , 3 0 8 57 , 3 6 5 24 . 5 7, 4 0 2 7, 3 3 9 7.50% 20 1 2 - 1 3 45 , 5 4 1 58 , 6 3 0 24 . 5 7, 3 6 8 7, 2 8 9 6.40% 20 1 3 - 1 4 45 , 4 7 3 59 , 6 2 8 25 . 3 7, 3 6 6 7, 3 8 9 5.70% 20 1 4 - 1 5 45 , 4 8 4 63 , 4 7 4 25 . 0 7, 5 2 0 6, 8 5 0 5.90% So u r c e s : 1. 2 0 1 4 - 1 5 C A F R S t a t i s t i c a l R e p o r t s b y T h e H d L C o m p a n i e s . 2. h t t p : / / w w w . c a l i f o r n i a - d e m o g r a p h i c s . c o m /s a n - l u i s - o b i s p o - c o u n t y - d e m o g r a p h i c s 3. C u e s t a C o m m u n i t y C o l l e g e A d m i s s i o n s O f f i c e . N o t e : E n r o l l e d s t u d e n t s ( h e a d c o u n t ) S a n L u i s O b i s p o c a m p u s o n l y 4. S a n L u i s C o a s t a l U n i f i e d S c h o o l D i s t r i c t A n n u a l C o m m u n i t y R e p o r t . N o t e ; T h e b o u n d a r i e s o f S L C U S D a r e s i g n i f i c a n t l y l a r g e r t h an t h e C i t y . T h e a b o v e s c h o o l e n ro l l m e n t i n f o r m a t i o n a l s o i n c l u d e s t h e s e o u t l a y i n g a r e a s , m o s t n o t a b l y L o s O s o s , M o r r o B a y , a n d A v i l a B e a c h . 16 0   Sc h e d u l e 2 1 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Pr i n c i p a l E m p l o y e r s Cu r r e n t Y e a r a n d N i n e Y e a r s A g o Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 Pe r c e n t a ge Percentage Nu m b e r o f T o t a l C i t y Nu m b e r of Total City Em plo yer Em plo yee s R a n k Em plo yme n t E m plo yee s R a n k E m ployment Ca l P o l y S t a t e U n i v e r s i t y 3 , 0 5 5 1 1 0 . 7 0 % 2 7 0 0 2 6 . 9 2 % Co u n t y o f S a n L u i s O b i s p o 2 , 5 4 7 2 8 . 8 0 % 2 5 0 1 1 6 . 4 1 % P. G . & E ( D i a b l o C a n y o n ) 1 , 9 0 0 3 6 . 7 0 % 1 7 0 0 3 4 . 3 6 % Ca l i f o r n i a M e n ' s C o l o n y 1 , 5 4 0 4 5 . 4 0 % 1 5 7 7 4 4 . 0 4 % Ca l P o l y F o u n d a t i o n ( C o r p o r a t i o n ) 1 , 4 0 0 5 4 . 9 0 % 1 3 1 1 5 3 . 3 6 % Sa n L u i s C o a s t a l U n i f i e d S c h o o l D i s t r i c t 9 0 2 6 3 . 2 0 % 7 9 0 6 2 . 0 3 % Mi n d b o d y 6 5 0 7 2 . 3 0 % Ca l i f o r n i a D e p a r t m e n t o f T r a n s p o r t a t i o n 5 4 4 8 1 . 9 0 % Cu e s t a C o m m u n i t y C o l l e g e 4 4 0 9 1 . 5 0 % 7 7 1 8 1 . 9 8 % Co m m u n i t y A c t i o n P a r t n e r s h i p 4 1 0 1 0 1 . 4 0 % Ci t y o f S a n L u i s O b i s p o 52 6 9 1 . 3 5 % Si e r r a V i s t a R e g i o n a l M e d i c a l C e n t e r 7 5 5 7 1 . 9 4 % Fr e n c h H o s p i t a l 46 9 1 0 1 . 2 0 % To t a l 1 3 , 3 8 8 4 6 . 8 0 % 1 3 , 1 0 0 3 3 . 5 9 % No t e : S o u r c e f o r t h e 2 0 1 4 5 - 1 5 e m p l o y e r s i n f o r m a t i o n i s t h e 2 0 1 5 P a c i f i c C o a s t B u s i n e s s T i m e s ( T h e L i s t ) . T h i s i n f o r m a t i o n r e p r esents e m p l o y e r s i n S a n L u i s O b i s p o C o u n t y . 20 0 5 - 0 6 20 1 4 - 1 5 16 1   Sc h e d u l e 2 2 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Re g u l a r A u t h o r i z e d P o s i t i o n s La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 Fu n c t i o n 20 0 5 - 0 6 2 0 0 6 - 0 7 2 0 0 7 - 0 8 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 Pu b l i c S a f e t y P o l i c e S w o r n 58 . 0 5 8 . 0 6 4 . 0 6 4 . 0 5 9 . 0 5 9 . 0 5 7 . 0 5 7 . 0 6 0 . 0 6 0 . 0 N o n - s w o r n 27 . 0 2 7 . 0 2 8 . 0 2 8 . 0 2 7 . 5 2 7 . 5 2 6 . 5 2 5 . 5 2 5 . 5 2 5 . 5 F i r e S w o r n 43 . 0 4 3 . 0 4 4 . 0 4 4 . 0 4 4 . 0 4 4 . 0 4 4 . 0 4 4 . 0 4 9 . 0 4 9 . 0 N o n - s w o r n 9. 0 9 . 0 1 0 . 0 1 0 . 0 9 . 8 9 . 0 7 . 8 6 . 8 4 . 0 4 . 0 Pu b l i c U t i l i t i e s 58 . 8 6 3 . 8 6 6 . 8 6 6 . 8 6 3 . 8 6 3 . 8 6 0 . 9 6 1 . 9 6 4 . 8 6 4 . 8 Transportati o n 25.5 2 5 . 5 3 2 . 0 3 2 . 0 3 0 . 0 2 9 . 2 3 1 . 8 3 1 . 8 2 8 . 9 2 8 . 9 Le i s u r e , C u l t u r a l a n d S o c i a l S e r v i c e s 28 . 0 2 8 . 0 3 3 . 0 3 3 . 0 3 3 . 0 3 3 . 0 3 2 . 0 3 2 . 0 3 4 . 0 3 4 . 0 Co m m u n i t y D e v e l o p m e n t 37 . 6 3 8 . 6 4 0 . 3 4 0 . 3 3 7 . 3 3 7 . 3 4 2 . 8 4 3 . 8 3 9 . 5 4 0 . 0 Ge n e r a l G o v e r n m e n t 54 . 9 5 5 . 9 5 8 . 5 5 9 . 5 5 4 . 8 5 4 . 8 5 0 . 5 5 2 . 2 5 6 . 0 5 6 . 0 To t a l 34 1 . 8 3 4 8 . 8 3 7 6 . 6 3 7 7 . 6 3 5 9 . 2 3 5 7 . 6 3 5 3 . 3 3 5 5 . 0 3 6 1 . 7 3 6 2 . 2 Ra t i o o f S w o r n P o l i c e P e r s o n n e l p e r 1 , 0 0 0 P o p u l a t i o n : * 1 . 3 1 1 . 3 1 1 . 4 3 1 . 4 3 1 . 3 1 1 . 3 0 1 . 2 6 1 . 2 5 1 . 3 2 1 . 3 2 Ra t i o o f S w o r n F i r e P e r s o n n e l p e r 1 , 0 0 0 P o p u l a ti o n : * 0. 9 7 0 . 9 7 0 . 9 8 0 . 9 8 0 . 9 8 0 . 9 7 0 . 9 7 0 . 9 7 1 . 0 8 1 . 0 8 * D o e s n o t i n c l u d e t h e C a l P o l y s t ud e n t a n d f a c u l t y p o p u l a t i o n s e r v e d . No t e : S e e S c h e d u l e o f D e m o g r a p h i c a n d E c o n o m i c S t a t i s t i c s f o r p o p u l a t i o n d a t a . So u r c e : C i t y o f S a n L u i s O b i s p o F i n a n c e & I n f o r m a t i o n T e c h n o l o g y D e p a r t m e n t 16 2   Sc h e d u l e 2 3 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Op e r a t i n g I n d i c a t o r s a n d C a p i t a l A s s e t S t a t i s t i c s b y F u n c t i o n La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 2 0 0 6 - 0 7 2 0 0 7 - 0 8 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 Fu n c t i o n / P r o g r a m : Po l i c e : Ca l l s f o r p o l i c e / f i r e s e r v i c e 3 5 , 0 1 8 3 3 , 8 3 2 33 , 5 8 0 33 , 2 1 1 32 , 0 5 7 32 , 0 7 4 34 , 7 5 1 36,236 34,659 36,515 In c i d e n t n u m b e r s i s s u e d 30 , 9 8 4 29 , 6 5 2 29 , 2 7 5 28 , 8 5 5 27 , 5 5 5 27 , 5 9 5 29 , 9 9 1 31,156 29,277 31,048 Po l i c e r e p o r t s w r i t t e n 8, 2 5 5 7, 7 0 5 8, 0 5 3 7, 8 3 9 7, 4 5 4 7, 6 6 1 8, 3 2 2 9,192 8,665 8,435 Tr a f f i c c i t a t i o n s i s s u e d 3, 7 1 3 7, 6 3 5 6, 3 8 9 7, 0 9 9 * Ot h e r c i t a t i o n s i s s u e d 66 0 62 9 70 3 1, 3 1 5 * Vi o l a t i o n s c i t e d 4, 3 7 3 5, 2 6 4 6, 3 8 9 8, 4 1 0 8, 4 7 1 5, 9 3 9 8, 1 1 9 7,213 5,793 6,648 Ci t a t i o n s i s s u e d 3, 9 3 5 4, 7 7 4 5, 8 1 1 7, 7 3 7 7, 3 9 8 5, 3 8 0 7, 7 1 8 6,665 5,275 6,204 Co l l i s i o n r e p o r t s 1, 0 9 2 87 0 87 1 69 3 71 8 72 8 66 9 643 625 630 Vi o l e n t c r i m e s : * * 17 0 16 2 16 3 13 6 14 0 12 6 13 4 117 158 237 W i l l f u l h o m i c i d e * * 2 3 2 1 F o r c i b l e r a p e * * 23 22 27 32 30 27 24 18 31 44 R o b b e r y * * 35 25 39 38 39 35 34 19 26 25 A g g r a v a t e d a s s a u l t * * 11 0 11 5 99 66 71 64 74 79 101 168 Pr o p e r t y c r i m e s : * * 70 9 72 6 70 2 64 9 62 0 64 0 71 4 804 713 542 B u r g l a r y * * 36 1 35 8 31 2 33 4 32 4 37 2 33 0 414 328 206 M o t o r v e h i c l e t h e f t * * 97 96 84 55 68 54 10 7 81 63 71 La r c e n y - t h e f t : * * 1, 3 3 5 1, 2 7 3 1, 4 5 0 1, 3 2 8 1, 2 4 0 1, 2 6 0 1, 3 4 5 1,476 1,384 1,162 O v e r $ 4 0 0 * * 25 1 27 2 30 6 26 0 22 8 21 4 27 7 309 322 265 $ 4 0 0 a n d u n d e r * * 1, 0 8 4 1, 0 0 1 1, 1 4 4 1, 0 6 8 1, 0 1 2 1, 0 4 6 1, 0 6 8 1,167 1,062 897 Fi r e : Me d i c a l r e s p o n s e s * * * ( N o t e 4 ) 2, 7 2 7 2, 5 6 4 2, 7 8 8 2, 6 1 3 3, 3 2 5 2, 7 9 9 2, 8 5 6 2,985 3,232 3,417 Fi r e s u p p r e s s i o n r e s p o n s e s * * * ( N o t e 4 ) 17 3 10 0 32 1 11 0 13 3 10 1 10 2 95 105 111 Ha z a r d o u s m a t e r i a l s r e s p o n s e s * * * ( N o t e 4 ) 44 36 29 26 36 23 17 21 15 21 Ot h e r r e s p o n s e s * * * ( N o t e 4 ) 1, 2 1 4 1, 5 0 4 1, 3 0 2 1, 8 9 7 1, 2 2 4 1, 5 2 8 1, 5 5 2 1,812 1,840 1,929 T o t a l s e r v i c e r e s p o n s e s * * * 4, 1 5 8 4, 2 0 4 4, 4 4 0 4, 6 4 6 4, 7 1 8 4, 4 5 1 4, 5 2 7 4,913 5,192 5,478 Fi r e a n d l i f e - s a f e t y i n s p e c t i o n s * * * 2, 0 1 0 2, 0 6 3 1, 6 8 4 1, 9 7 7 1, 1 1 0 2, 4 8 9 2, 4 3 1 2,494 644 2,476 Ar s o n i n v e s t i g a t i o n s * * * 47 47 38 29 47 22 18 49 44 17 Ed u c a t i o n a c t i v i t i e s ( # o f p e o p l e ) * * * 15 , 9 0 0 17 , 2 0 0 18 , 0 0 0 15 , 0 0 0 14 , 0 0 0 20 , 1 0 6 23 , 1 2 0 23,377 23,945 23,697 16 3   Sc h e d u l e 2 3 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Op e r a t i n g I n d i c a t o r s a n d C a p i t a l A s s e t S t a t i s t i c s b y F u n c t i o n , c o n t i n u e d La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 2 0 0 6 - 0 7 2 0 0 7 - 0 8 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 Fu n c t i o n / P r o g r a m : Pu b l i c U t i l i t i e s : Wa t e r / S e w e r c u s t o m e r a c c o u n t s 1 4 , 4 2 5 1 4 , 2 6 0 1 4 , 3 8 0 1 4 , 6 8 2 1 4 , 8 7 5 1 4 , 7 3 4 1 4 , 6 9 5 1 4 , 7 4 2 14,899 14,953 Mi l e s o f s e w e r l i n e 1 3 3 1 3 3 1 3 3 1 3 7 1 3 7 1 3 7 1 3 7 1 3 7 197 139.6 Mi l e s o f w a t e r l i n e 1 7 0 1 7 0 1 8 2 1 8 2 1 8 5 1 8 5 1 8 7 187 *187 Wa t e r s e r v i c e l i n e r e p a i r s a n d r e n e w a l s * * * * * 2 4 9 2 5 0 2 2 5 1 4 2 9 5 8 6 5 0 6 6 58 60 Se w e r m a i n s t o p p a g e s 1 3 1 2 8 1 2 1 0 9 7 1 2 15 13 Ac r e f e e t o f w a t e r d e l i v e r e d - N a c i m i e n t o 98 1 2 , 3 2 1 6 6 3 1,506 839 Ac r e f e e t o f w a t e r d e l i v e r e d - S a l i n a s 1 , 6 5 2 1 , 8 1 8 1 , 9 4 4 2 , 4 7 3 2 , 7 3 6 2 , 6 4 0 2 , 1 4 9 2 , 3 7 8 1,444 1,986 Ac r e f e e t o f w a t e r d e l i v e r e d - W h a l e R o c k 4 , 6 8 8 5 , 0 0 3 4 , 8 5 5 4 , 2 8 0 3 , 4 0 2 1 , 2 7 7 2 , 8 7 5 3,212 2,615 Tr a n s p o r t a t i o n : Si g n a l s a n d l i g h t s : I n t e r s e c t i o n s w i t h t r a f f i c s i g n a l s 60 6 7 7 0 68 T r a f f i c s i g n a l s e r v i c e r e q u e s t s 10 0 8 0 8 5 80 S t r e e t l i g h t s o p e r a t e d & m a i n t a i n e d 22 0 2 , 2 3 0 2 , 3 0 0 2,300 S t r e e t l i g h t s e r v i c e r e q u e s t s 28 5 5 0 0 1 8 0 175 Pa r k i n g s p a c e s : E s t i m a t e d m i l e s o f p a v e d s t r e e t s 1 2 5 1 2 5 1 2 5 1 2 5 12 5 13 0 13 2 132 133 133 P a v e m e n t c o n d i t i o n i n d e x 75 75 74 74 73 74 72 71 72 72 N u m b e r o f s t r e e t l i g h t s 2, 2 5 8 2, 2 6 0 2, 3 0 0 2, 3 0 0 2, 1 7 9 2, 2 7 0 2, 2 7 0 2,270 2,300 2,300 T r a f f i c c o l l i s i o n s 1, 0 8 9 87 1 86 5 78 9 70 8 59 7 62 1 593 660 720 P a r k i n g s p a c e s p r o v i d e d ( l o t , g a r a g e & s t r e e t ) 2, 8 6 9 3, 0 6 5 3, 0 5 9 3, 0 6 0 3, 0 5 9 3, 0 6 7 3, 0 6 5 3,071 3,119 3176 P a r k i n g c i t a t i o n s w r i t t e n 46 , 0 6 8 43 , 0 8 0 39 , 2 3 4 40 , 0 6 2 30 , 0 8 7 30 , 2 7 8 26 , 5 1 5 28,690 23,957 20,690 T o t a l t r a n s i t p a s s e n g e r s 96 3 , 4 1 5 93 4 , 5 3 4 1, 0 0 3 , 8 0 5 1, 0 3 2 , 2 3 2 1, 0 1 9 , 8 5 2 1, 0 4 5 , 2 9 9 1, 1 1 8 , 5 1 9 1,109,600 1,122,000 1,099,274 16 4   Sc h e d u l e 2 3 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Op e r a t i n g I n d i c a t o r s a n d C a p i t a l A s s e t S t a t i s t i c s b y F u n c t i o n , c o n t i n u e d La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 2 0 0 6 - 0 7 2 0 0 7 - 0 8 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 Fu n c t i o n / P r o g r a m : Le i s u r e , C u l t u r a l a n d S o c i a l S e r v i c e s : Op e n s p a c e a c r e s m a i n t a i n e d 2 , 6 8 9 3 , 0 1 5 3 , 0 1 5 3 , 0 1 5 3 , 4 2 0 3 , 4 2 0 3 , 5 1 0 3 , 5 1 0 3,510 3,510 Op e n s p a c e e a s e m e n t a c r e s 2 , 0 8 9 2 , 4 7 9 2 , 4 8 2 3 , 1 3 9 3 , 1 6 1 1 6 1 3 , 2 0 0 3 , 2 0 0 3,200 3,200 Tr a i l m i l e a g e 3 2 3 5 3 5 3 8 4 0 4 0 4 5 4 7 49 49 To t a l g o l f r o u n d s p l a y e d 4 2 , 6 0 3 4 5 , 6 3 5 4 0 , 2 1 6 4 2 , 4 3 8 3 4 , 3 7 6 3 2 , 2 2 8 3 4 , 6 9 9 3 3 , 0 6 7 34,766 33,674 Ac r e s o f p a r k l a n d s c a p e m a i n t a i n e d 1 5 7 1 5 7 1 5 7 1 5 7 1 5 7 1 5 7 1 5 7 1 5 7 157 157 Tr e e s i n C i t y j u r i s d i c t i o n 1 8 , 6 0 0 1 8 , 6 0 0 1 8 , 6 0 0 1 8 , 6 0 0 1 7 , 7 7 9 1 8 , 7 0 0 1 8 , 7 0 0 1 8 , 7 0 0 18,700 19,000 Ch i l d r e n ' s s e r v i c e s e n r o l l m e n t t o t a l s 8 2 5 8 1 1 9 2 0 8 1 6 9 0 0 1 , 6 6 4 1 , 7 5 5 1 , 6 0 5 2,338 2,360 Tr i a t h l o n : p a r t i c i p a n t s , s p e c t a t o r s a n d v o l u n t e e r s 4 , 8 0 0 4 , 8 0 0 6 , 4 7 0 6 , 6 0 0 6 , 7 0 0 5 , 4 0 0 6 , 0 0 0 6 , 5 2 5 6,000 5,500 An n u a l s e n i o r a t t e n d a n c e ( t o t a l ) 1 4 , 8 2 5 1 4 , 9 0 0 1 3 , 9 1 5 1 4 , 5 7 6 1 4 , 2 5 0 1 4 , 5 0 0 1 4 , 0 0 0 1 4 , 2 0 0 ** Fa c i l i t y p e r m i t s p r o c e s s e d 2 , 0 0 9 2 , 0 2 0 1 , 6 4 5 1 , 2 7 3 1 , 9 7 1 1 , 8 0 6 1 , 8 0 3 1 , 2 6 9 1,416 836 An n u a l a q u a t i c s a t t e n d a n c e ( t o t a l ) 46 , 5 2 1 49 , 1 7 4 55 , 6 9 1 61 , 2 6 4 60 , 0 5 2 56 , 6 7 6 56 , 0 4 2 67,000 73,903 83,107 Ad u l t a t h l e t i c t e a m s r e g i s t e r e d 19 7 22 9 23 5 22 9 25 5 24 5 32 0 325 338 320 Yo u t h a t h l e t i c p a r t i c i p a n t s r e g i s t e r e d 86 6 1, 0 6 5 1, 5 0 0 1, 6 2 5 1, 6 5 0 1, 3 2 0 1, 4 0 0 1,300 1,200 1,350 Sp e c i a l e v e n t a p p l i c a t i o n s p r o c e s s e d 57 50 55 53 57 68 78 84 103 103 Ba n n e r p e r m i t s p r o c e s s e d 59 75 62 71 65 72 86 76 82 47 In s t r u c t i o n a l c l a s s e n r o l l m e n t s 1, 3 6 9 1, 5 3 9 1, 9 0 5 2, 0 1 7 1, 8 3 7 1, 6 2 8 1, 4 0 0 1,308 1,424 1,751 16 5   Sc h e d u l e 2 3 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Op e r a t i n g I n d i c a t o r s a n d C a p i t a l A s s e t S t a t i s t i c s b y F u n c t i o n , c o n t i n u e d La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 2 0 0 6 - 0 7 2 0 0 7 - 0 8 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 Fu n c t i o n / P r o g r a m : Co m m u n i t y D e v e l o p m e n t : Ho u s i n g c h a r a c t e r i s t i c s : S i n g l e f a m i l y u n i t s 10 , 6 7 0 10 , 6 9 1 10 , 7 2 9 10 , 7 9 3 10 , 8 0 8 10 , 9 5 1 10,969 10,994 11,133 2 - 4 u n i t s 2, 2 4 2 2, 2 5 3 2, 3 3 7 2, 3 3 7 2, 3 5 0 2, 6 3 4 2,650 2,656 2,692 5 o r m o r e u n i t s t r u c t u r e s 5, 6 4 8 5, 6 5 6 5, 6 5 4 5, 6 5 4 5, 7 0 2 5, 5 9 6 5,596 5,647 5,767 M o b i l e h o m e s 1, 5 0 2 1, 5 0 2 1, 5 0 2 1, 5 3 4 1, 5 3 4 1, 4 8 2 1,482 1,482 1,482 T o t a l 20 , 0 6 2 20 , 1 0 2 20 , 2 2 2 20 , 3 1 8 20 , 3 9 4 - 20 , 6 6 3 20,697 20,779 21,074 H o u s i n g u n i t s ( r e p l a c e s a b o v e c a t e g o r i e s ) 20 , 5 7 8 H o u s e h o l d s ( r e p l a c e s a b o v e c a t e g o r i e s ) 1, 3 6 1 Bu i l d i n g p e r m i t s i s s u e d ( N o t e 1 ) : 64 1 60 1 54 4 47 5 43 8 44 2 46 3 566 511 597 R e s i d e n t i a l : S i n g l e f a m i l y r e s i d e n t i a l ( N o t e 2 ) 34 31 25 28 16 7 13 48 59 114 M u l t i - f a m i l y r e s i d e n t i a l 25 16 19 5 5 3 10 6 8 32 N o n - r e s i d e n t i a l 24 31 19 4 1 7 5 7 9 27 O t h e r p e r m i t s : A d d i t i o n s , a l t e r n a t i o n s , d e m o l i t i o n s ( N o t e 4 ) 55 9 52 3 49 8 45 4 41 6 49 9 45 9 530 458 460 O t h e r i m p r o v e m e n t s T o t a l 64 2 60 1 56 1 49 1 43 8 51 6 48 7 591 534 1,230 Ap p r o x i m a t e v a l u e o f b u i l d i n g p e r m i t s ( i n t h o u s a n d s ) R e s i d e n t i a l : S i n g l e f a m i l y r e s i d e n t i a l 5, 6 3 1 $ 6, 5 2 1 $ 6, 1 7 2 $ 6, 8 0 0 $ 4, 4 2 4 $ 6, 0 8 5 $ 3, 2 7 8 $ 15,698$ 15,412$ 36,722 M u l t i - f a m i l y r e s i d e n t i a l 8, 6 4 0 9, 5 9 2 11 , 8 4 3 4, 2 8 6 2, 5 2 8 92 6 3, 8 4 7 1,560 6,744 26,499 N o n - r e s i d e n t i a l 31 , 2 7 4 15 , 2 0 9 20 , 3 4 0 10 , 4 8 2 52 5 16 , 6 0 8 5, 1 4 2 1,935 15,310 9,791 O t h e r p e r m i t s : A d d i t i o n s , a l t e r n a t i o n s , d e m o l i t i o n s ( N o t e 4 ) 22 , 6 5 2 17 , 6 8 9 21 , 7 4 1 21 , 0 8 0 26 , 4 6 4 15 , 9 4 8 16 , 5 8 9 20,761 19,139 22,897 O t h e r i m p r o v e m e n t s T o t a l 68 , 1 9 7 $ 49 , 0 1 1 $ 60 , 0 9 6 $ 42 , 6 4 8 $ 33 , 9 4 1 $ 39 , 5 6 7 $ 28 , 8 5 6 $ 39,954$ 56,605$ 95,909 Bu i l d i n g i n s p e c t i o n s c o n d u c t e d 6, 9 5 0 8, 8 8 8 8, 4 7 7 10 , 3 7 1 8, 3 5 9 10 , 2 1 0 13 , 6 8 5 10,543 8,996 6,641 Ho m e o c c u p a t i o n p e r m i t s p r o c e s s e d 14 0 15 1 14 9 17 5 14 6 12 6 11 7 142 129 113 De v e l o p m e n t p e r m i t a p p l i c a t i o n s r e c e i v e d 38 3 32 3 28 6 22 3 19 4 17 2 14 8 217 311 293 16 6   Sc h e d u l e 2 3 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Op e r a t i n g I n d i c a t o r s a n d C a p i t a l A s s e t S t a t i s t i c s b y F u n c t i o n , c o n t i n u e d La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 20 0 5 - 0 6 2 0 0 6 - 0 7 2 0 0 7 - 0 8 2 0 0 8 - 0 9 2 0 0 9 - 1 0 2 0 1 0 - 1 1 2 0 1 1 - 1 2 2 0 1 2 - 1 3 2 0 1 3 - 1 4 2 0 1 4 - 1 5 Fu n c t i o n / P r o g r a m : Ge n e r a l G o v e r n m e n t : Bu s i n e s s t a x c e r t i f i c a t e s i s s u e d : L o c a t e d o u t s i d e c i t y l i m i t s 1, 6 1 8 1, 5 5 5 1, 4 5 2 1, 4 8 7 1, 5 4 8 1, 5 6 9 1, 6 7 0 1,670 1,472 1602 T o t a l c e r t i f i c a t e s i s s u e d 7, 0 7 2 7, 1 9 0 7, 2 9 7 7, 4 5 8 7, 0 9 0 6, 8 7 3 7, 0 8 6 7,086 6,934 7805 Hu m a n r e s o u r c e s r e c r u i t m e n t s ( t o t a l ) 72 68 96 46 46 42 59 91 105 129 Fl e e t v e h i c l e s m a i n t a i n e d 20 8 20 0 24 1 28 0 30 1 Ci t y - w i d e f l e e t & e q u i p m e n t a s s e t s 29 0 29 0 290 290 300 R e p l a c e s p r i o r c a t e g o r y Te l e p h o n e l i n e s m a n a g e d 70 0 74 0 80 0 92 5 1, 0 0 3 1, 0 0 3 1, 0 2 4 981 995 1037 Ce l l p h o n e s s u p p o r t e d * * * * 19 5 24 0 26 0 34 3 34 8 35 1 33 8 344 383 460 IT u s e r s s u p p o r t e d 45 0 45 0 45 0 45 0 45 0 45 0 49 8 498 490 511 * D a t a N o t A v a i l a b l e ** D a t a f r o m C a l i f o r n i a D e p a r t m e n t o f J u s t i c e b a s e d o n c a l e n d a r y e a r ** * D a t a i s b a s e d o n c a l e n d a r y e a r ** * * I n c l u d e s c e l l u l a r m o d e m s ( 7 0 ) ( 9 0 f o r 1 1 - 1 2 ) ** * * * T h e 2 0 1 3 - 1 4 a m o u n t n o w i n c l u d e s r e c y c l e d w a t e r l i n e . No t e s : S o m e w o r k l o a d i n d i c a t o r s a r e p r o j e c t i o n s . 1. E x c l u d e s s p e c i a l p e r m i t s s u c h a s p l u m b i n g , m e c h a n i c a l , e l ec t r i c a l , s i g n s , a n d g r a d i n g a s w e l l a s p l a n c h e c k p e r m i t s . 2. C o n d o m i n i u m s a r e i n c l u d e d w i t h s i n g l e f a m i l y r e s i d e n t i a l . 3. S w i m m i n g p o o l s a r e i n c l u d e d w i t h a dd i t i o n s , a l t e r a t i o n s a n d d e m o l i t i o n s . 4. I n F i s c a l y e a r 2 0 1 0 - 1 1 , n u m b e r s r e p o r t e d u s e d o b s e r ve d c o d e f r o m S p i l l m a n r a t h e r t h a n c o n d i t i o n c o d e . So u r c e : C i t y o f S a n L u i s O b i s p o D e p a r t m e n t s 16 7   Sc h e d u l e 2 4 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Wa t e r S y s t e m St a t i s t i c a l D a t a Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 Fi s c a l H i s t o r i c I n c r e a s e / S a l e s I n c r e a s e / D e l i v e r i e s I n c r e a s e / Ye a r C o n n e c t i o n s ( D e c r e a s e ) R e v e n u e s ( De c r e a s e ) I n A c r e F e e t ( D e c r e a s e ) 20 0 5 - 0 6 1 4 , 4 2 5 1 . 0 9 % 8 , 4 4 2 , 1 0 0 $ 3 . 7 2 % 6 , 5 0 7 - 1 . 7 1 % 20 0 6 - 0 7 * 1 4 , 2 6 0 - 1 . 1 4 % 9 , 6 9 2 , 5 4 9 1 4 . 8 1 % 6 , 9 8 6 7 . 3 6 % 20 0 7 - 0 8 1 4 , 3 8 0 0 . 8 4 % 1 0 , 9 5 0 , 2 8 4 1 2 . 9 8 % 6 , 9 8 8 0 . 0 3 % 20 0 8 - 0 9 1 4 , 4 9 3 0 . 7 9 % 1 2 , 4 4 7 , 5 9 2 1 3 . 6 7 % 6 , 3 2 0 - 9 . 5 6 % 20 0 9 - 1 0 1 4 , 8 7 5 2 . 6 4 % 1 3 , 0 2 5 , 9 0 0 4 . 6 5 % 5 , 6 1 2 - 1 1 . 2 1 % 20 1 0 - 1 1 1 4 , 7 7 7 - 0 . 6 6 % 1 3 , 3 0 2 , 8 0 0 2 . 1 3 % 5 , 9 0 9 5 . 3 0 % 20 1 1 - 1 2 1 4 , 5 3 7 - 1 . 6 2 % 1 5 , 2 9 1 , 0 0 8 1 4 . 9 5 % 5 , 9 9 9 1 . 5 2 % 20 1 2 - 1 3 1 4 , 7 5 8 1 . 5 2 % 1 6 , 1 6 3 , 0 1 2 5 . 7 0 % 5 , 8 2 3 - 2 . 9 3 % 20 1 3 - 1 4 1 4 , 8 9 9 0 . 0 1 % 1 8 , 3 9 8 , 9 0 1 1 3 . 8 3 % 5 , 9 3 3 1 . 8 9 % 20 1 4 - 1 5 1 4 , 8 4 7 0 . 0 1 % 1 7 , 5 3 0 , 7 1 7 - 4 . 7 2 % 5 , 3 5 4 - 9 . 7 6 % * S a l e s r e v e n u e s a m o u n t s w e r e r e v i e w e d i n f i s c a l y e a r 20 1 4 - 1 5 a n d u p d a t e d t o r e f l e c t a c t u a l v a l u e s b e g i n n i n g w i t h f i s c a l y e a r 2 0 0 6 - 0 7 . So u r c e : C i t y o f S a n L u i s O b i s p o F i n a n c e & I n f o r m a t i o n T e c h n o l o g y D e p a r t m e n t . 16 8   Sc h e d u l e 2 5 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Wa t e r a n d S e w e r R a t e s La s t T e n F i s c a l Y e a r s Fo r t h e F i s c a l Y e a r E n d e d J u n e 3 0 As o f Mo n t h l y Si n g l e f a m i l y Mu l t i - f a m i l y d w e l l i n g Ju n e 3 0 o f E a c h Y e a r Co n s u m p t i o n Pr i c e p e r h c f * dw e l l i n g Commercial 20 0 6 0- 5 h c f $2 . 9 3 $3 2 . 3 3 $2 5 . 4 6 $32.33 6- 1 0 h c f $3 . 6 7 plus $3.90 per ccf over 5 ccf 20 0 7 0 - 5 h c f $ 3 . 2 8 $ 3 5 . 5 6 $ 2 8 . 0 1 $ 3 5 . 5 6 6- 2 5 h c f $ 4 . 1 1 plus $4.29 per ccf over 5 ccf 26 + h c f ( n o t e 2 ) $ 5 . 1 4 20 0 8 0 - 5 h c f $ 3 . 7 1 $ 5 . 0 0 m i n . c h a r g e p e r $5 . 0 0 m i n . c h a r g e p e r $5.00 min. charge per 6- 2 5 h c f $4 . 6 4 dw e l l i n g u n i t ac c o u n t account 26 + h c f ( n o t e 2 ) $5 . 8 1 $5 . 0 5 / u n i t v o l u m e c h a r g e * * $5 . 0 5 / u n i t v o l u m e c h a r g e * * $5.05/unit volume charge 20 0 9 0- 5 h c f $4 . 1 9 $5 . 5 0 m i n . c h a r g e p e r $5 . 5 0 m i n . c h a r g e p e r $5.50 min. charge per 6- 2 5 h c f $5 . 2 4 dw e l l i n g u n i t ac c o u n t account 26 + h c f ( n o t e 2 ) $6 . 5 7 $5 . 5 6 / u n i t v o l u m e c h a r g e * * $5 . 5 6 / u n i t v o l u m e c h a r g e * * $5.56/unit volume charge 20 1 0 0- 5 h c f $4 . 6 9 $6 . 0 0 m i n . c h a r g e p e r $6 . 0 0 m i n . c h a r g e p e r $6.00 min. charge per 6- 2 5 h c f $5 . 8 7 dw e l l i n g u n i t ac c o u n t account 26 + h c f ( n o t e 2 ) $7 . 3 6 $6 . 6 3 / u n i t v o l u m e c h a r g e * * $6 . 6 3 / u n i t v o l u m e c h a r g e * * $6.63/unit volume charge 20 1 1 0- 5 h c f $5 . 2 1 $6 . 5 5 m i n . c h a r g e p e r $6 . 5 5 m i n . c h a r g e p e r $6.55 min. charge per 6- 2 5 h c f $6 . 5 2 dw e l l i n g u n i t ac c o u n t account 26 + h c f ( n o t e 2 ) $8 . 1 7 $7 . 2 2 / u n i t v o l u m e c h a r g e * * $7 . 2 2 / u n i t v o l u m e c h a r g e * * $7.22/unit volume charge ** 20 1 2 0- 5 h c f $5 . 7 3 $7 . 0 1 m i n . c h a r g e p e r $7 . 0 1 m i n . c h a r g e p e r $7.01 min. charge per 6- 2 5 h c f $7 . 1 7 dw e l l i n g u n i t ac c o u n t account 26 + h c f ( n o t e 2 ) $8 . 9 9 $7 . 7 3 / u n i t v o l u m e c h a r g e * * $7.73/unit volume charge ** 20 1 3 Ba s e F e e $5 . 0 0 $7 . 7 3 m i n . c h a r g e p e r $7 . 7 3 m i n . c h a r g e p e r $7.73 min. charge per 0- 8 h c f $6 . 5 6 dw e l l i n g u n i t ac c o u n t account 8 + h c f $8 . 2 0 $8 . 5 2 / u n i t v o l u m e c h a r g e * * $8 . 5 2 / u n i t v o l u m e c h a r g e * * $8.52/unit volume charge ** 20 1 4 Ba s e F e e $5 . 2 8 $7 . 9 6 m i n . c h a r g e p e r $7 . 9 6 m i n . c h a r g e p e r $7.96 min. charge per 1- 8 h c f 6. 9 2 dw e l l i n g u n i t dw e l l i n g u n i t dwelling unit 8 + h c f 8. 6 5 $8 . 7 7 / u n i t v o l u m e c h a r g e * * $8 . 7 7 / u n i t v o l u m e c h a r g e * * $8.77/unit volume charge** 20 1 5 Ba s e F e e $5 . 2 8 $8 . 3 2 m i n . c h a r g e p e r $8 . 3 2 m i n . c h a r g e p e r $8.32 min. charge per 1- 8 h c f 6. 9 2 dw e l l i n g u n i t dw e l l i n g u n i t dwelling unit 8 + h c f 8. 6 5 $9 . 1 7 / u n i t v o l u m e c h a r g e * * $9 . 1 7 / u n i t v o l u m e c h a r g e * * $9.17/unit volume charge** * h c f = 1 0 0 c u b i c f e e t ** T o t a l m o n t h l y v o l u m e c h a r g e c a p p e d b a s e d o n a v e r a g e w i n t e r w a t e r c o n s u m p t i o n . No t e s : 1. R a t e s a r e f o r s e r v i c e s i n s i d e t h e C i t y , o u t s i d e t h e C i t y r a t e s a r e d o u b l e . 2. T h i r d t i e r a p p l i e s o n l y t o s i n g l e - f a m i l y r e s i d e n t i a l c u s t o m e r s . So u r c e : C i t y o f S a n L u i s O b i s p o U t i l i t i e s D e p a r t m e n t Se w e r R a t e s ( M o n t h l y ) Wa t e r R a t e s ( N o t e 1 ) 16 9   Sc h e d u l e 2 6 Ci t y o f S a n L u i s O b i s p o , C a l i f o r n i a Wa t e r S y s t e m Te n L a r g e s t W a t e r U s e r s Fi s c a l Y e a r E n d e d J u n e 3 0 , 2 0 1 5 Se r v i c e W a t e r U s e P e r c e n t o f Na m e T y p e ( a c r e - f e e t ) T o t a l Mu s t a n g V i l l a g e Ap a r t m e n t s 48 . 9 1 5 . 4 % Si l v e r C i t y M o b i l e H o m e P a r k Mo b i l e H o m e s 46 . 8 1 4 . 8 % Si e r r a V i s t a H o s p i t a l Ca r e F a c i l i t i e s 37 . 4 1 1 . 8 % Cr e e k s i d e M o b i l e H o m e s Mo b i l e H o m e s 29 . 4 9 . 3 % Em b a s s y S u i t e s Ho t e l 27 . 6 8 . 7 % La g u n a L a k e M o b i l e H o m e s Mo b i l e H o m e s 27 . 6 8 . 7 % Ir i s h H i l l s H a m l e t Ap a r t m e n t s 26 . 2 8 . 3 % Va l e n c i a A p a r t m e n t s Ap a r t m e n t s 25 . 2 7 . 9 % Ch u m a s h V i l l a g e Mo b i l e H o m e s 24 . 9 7 . 9 % Ci t y o f S a n L u i s O b i s p o P a r k s La n d s c a p e 23 . 0 7 . 2 % To t a l 31 7 . 0 1 0 0 . 0 0 % So u r c e : C i t y o f S a n L u i s O b i s p o