Fiscal Year 2019 Annual Financial Report
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City of Daly City Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2019 CITY OF DALY CITY, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 Prepared by DEPARTMENT OF FINANCE AND ADMINISTRATIVE SERVICES Todd High Director CITY OF DALY CITY COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS I INTRODUCTORY SECTION Page Letter of Transmittal ................................................................................................................................. v Organization Structure .............................................................................................................................. xiii City Council and Administration and Department Heads ....................................................................... xiv GFOA Certificate of Achievement for Excellence in Financial Reporting ............................................ xv II FINANCIAL SECTION Independent Auditor’s Report .................................................................................................................. 1 Management’s Discussion and Analysis ................................................................................................. 5 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ........................................................................................................ 18 Statement of Activities ............................................................................................................. 19 Fund Financial Statements: Governmental Funds: Balance Sheet ........................................................................................................................ 22 Reconciliation of the Governmental Funds Balance Sheet with the Statement of Net Position ................................................................................................ 23 Statement of Revenues, Expenditures, and Changes in Fund Balances .............................. 24 Reconciliation of the Net Change in Fund Balances - Total Governmental Funds with the Statement of Activities ........................................................................... 25 CITY OF DALY CITY COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Page Statements of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: General Fund ............................................................................................................................ 26 Gas Tax Special Revenue Fund ......................................................................................... 28 Grants Special Revenue Fund ............................................................................................ 29 Proprietary Funds: Statement of Net Position ................................................................................................. 30 Statement of Revenues, Expenses and Changes in Fund Net Position ............................ 31 Statement of Cash Flows .................................................................................................. 32 Fiduciary Funds: Statement of Fiduciary Net Position ..................................................................................34 Statement of Changes in Fiduciary Net Position ...............................................................35 Notes to Basic Financial Statements .......................................................................................... 37 Required Supplementary Information: Schedule of Changes in the Net Pension Liability and Related Ratios – Pension Plans ........... 76 Schedule of Contributions - Pension Plans ................................................................................ 78 Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................ 79 Schedule of Contributions – Other Post-Employment Benefits Plan. ....................................... 80 Supplemental Information: General Fund: Combining Fund Balance Sheet .......................................................................................... 83 Combining Fund Schedule of Revenues, Expenditures and Changes in Fund Balance ..... 84 CITY OF DALY CITY COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Page Major Governmental Funds Other than General Fund and Special Revenue Funds: Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual: Capital Projects Fund ....................................................................................................... 86 Nonmajor Governmental Funds: Combining Balance Sheet ................................................................................................... 88 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................................................................................. 89 Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual ........................................................................... 90 Nonmajor Enterprise Funds: Combining Statement of Fund Net Position ............................................................................. 94 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ............................................................................................. 95 Combining Statement of Cash Flows ....................................................................................... 96 Internal Service Funds: Combining Statement of Net Position ................................................................................. 98 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .......... 100 Combining Statement of Cash Flows ................................................................................ 102 Agency Funds: Combining Statement of Changes in Assets and Liabilities ............................................ 106 CITY OF DALY CITY COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Page III STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years .......................................................................... 111 Changes in Net Position - Last Ten Fiscal Years ................................................................................ 112 Fund Balances of Governmental Funds - Last Ten Fiscal Years ........................................................ 116 Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ..................................... 118 Assessed Value of Taxable Real Property - Last Ten Fiscal Years .................................................... 120 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ................................................. 121 Principal Property Tax Payers – Current Year and Nine Years Ago .................................................. 122 Property Tax Levies and Collections – Last Ten Fiscal Years ........................................................... 123 Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ............................................................. 124 Ratio of General Bonded Debt by Type-Last Ten Fiscal Years ......................................................... 125 Computation of Direct and Overlapping Debt .................................................................................... 126 Computation of Legal Bonded Debt Margin ....................................................................................... 127 Water Utility Fund - Number of Connections by Users as of June 30, 2019 Certificates of Participation Historical Revenues, Expenditures and Bond Coverage – Last Ten Fiscal Years .................................................................................................... 128 Demographic and Economic Statistics - Last Ten Fiscal Years ......................................................... 130 Principal Employers – Current Year and Nine Years Ago ................................................................. 131 Full-Time City Government Employees by Function – Last Ten Fiscal Years ................................. 132 Operating Indicators by Function/Program – Last Ten Fiscal Years .................................................. 134 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .............................................. 136 City of Daly City 333 – 90TH STREET DALY CITY, CALIFORNIA 94015-1895 December 26, 2019 Honorable Mayor Members of the City Council Citizens of Daly City We are pleased to present the Comprehensive Annual Financial Report (CAFR) of the City of Daly City for the Fiscal Year (FY) ended June 30, 2019. The goal of the independent audit is to provide reasonable assurance that the financial statements are free of material misstatements and presented in conformity with generally accepted accounting principles (GAAP). The City has contracted with Maze and Associates, independent Certified Public Accountants (CPAs), to perform the audit of these financial statements. The auditors have issued an “unmodified” opinion on the City of Daly City’s financial statements. This is the most favorable conclusion and is commonly known as an “unmodified” or “clean” opinion. The auditor’s report is located at the front of the financial section of this report. This letter of transmittal is designed to complement the Management’s Discussion and Analysis (MD&A)