File #: 24-0267    Version: 1
Type: Item(s) for Discussion
In control: Measure A Citizens' Advisory Committee
Final action:




recommended action



Information item only.





This report transmits the final audited Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2023.  A link to the electronic version of the ACFR can be found at the end of this staff report.  Included on page 179 (page 213 of the PDF) of the ACFR is a supplemental display of Measures A and B schedule of sources and uses.  The Pun Group provided its opinion that the financial statements present fairly, in all material respects, the respective financial position of the City as of June 30, 2023.  On March 18, 2024, the Council Audit Committee received, reviewed, and took action to accept the independent audit of the ACFR.  On March 19, 2023, the City Council also accepted the ACFR.






As a general sales tax, Measure A proceeds are part of the City’s General Fund.  The City Charter (Sections 1909 and 1910) requires the City to prepare a comprehensive financial statement and have an annual audit of all City accounts conducted by a firm of Certified Public Accountants.  The independent annual audit includes Measure A financial activities.  The ballot language and ordinance 2013-07-09-1601 provide that the City will conduct an annual independent audit and that the Measure A Citizen’s Advisory Committee will review and report on the uses of the proceeds.



Annual Audit


The City Charter (Section 1910) requires the City to have an annual audit conducted by an independent firm of Certified Public Accountants.  The Charter further stipulates the audit is to be made in accordance with generally accepted auditing standards for audits of public agencies.  Federal and State grant agreements and bond indentures also require the City to have an annual audit.  To ensure compliance with these requirements, the City contracts with an independent auditing firm.  The City’s external and independent audit firm, The Pun Group, completed the independent audit and issued the audit report for the fiscal year ended June 30, 2023.


The ACFR is a comprehensive document reflecting the financial position of all City operations and its related component units.  The City prepared the Fiscal Year (FY) 2022-23 ACFR in conformance with Generally Accepted Accounting Principles (GAAP) and with the additional requirements of presentation as set forth by the Government Finance Officers Association.  At the request of the Measure A Citizens Advisory Committee, and under guidance from the Government Finance Officers Association’s Additional Supplementary Information best practices, the City included a Measures A and B Schedule of Sources and Uses in the ACFR (page 179) to provide more detail of Measure A funded activities.  The ACFR’s Transmittal Letter and Management’s Discussion and Analysis provide an overview and analysis of the financial activities of the year ended June 30, 2023.



General Fund Results


The General Fund continues to reflect the City’s sound management practices and prudent financial decisions as steady growth and improved financial results are evident in the audit report for FY 2022-23. The ACFR financial statements reflect on page 23 the consolidated General Fund balance of $212.4 million in accordance with GASB 34 and including the Council-approved reserves. The full $212.4 million fund balance includes available and restricted fund balances for the General Fund as well as the Library, Recreation, Boat Launch, Entertainment Venues, Emergency Communications, and Pooled Investment funds. The total fund balance as presented is split into five categories: Non-spendable, Restricted, Committed, Assigned, and Unassigned. The City’s General Fund reserve policy calls for the City to maintain a 17% operating reserve (approximately two months of expenditure) and establishes additional reserves for known contingencies, unforeseen revenue changes, infrastructure failures, and catastrophic events. Council action taken to fund known contingency reserves at $68.0 million and maintain the risk-based reserves at $10.8 million is reflected in the Committed fund balance. Other fund balance commitments include $21.5 million for new Council priority projects, $43.3 million for carryforward activities, $10.2 million in encumbrances, $5.2 million in restricted balances, and $2.4 million of items in a non-spendable form. The remaining balance of $48.5 million (as of June 30, 2023) is unassigned, primarily representing the Working Capital reserve for the General Fund.


The ACFR for the fiscal year ended June 30, 2023, can be found on file in the City Clerk’s Office at City Hall or on the City’s website: