HomeMy WebLinkAboutCounty of San Diego - Public Financial ReportCounty of San Diego, California
Popular Annual Financial Report
Fiscal year ended June 30, 2021
County of San Diego, California / 2021 Popular Annual Financial Report
Citizens of San Diego County:
Our Popular Annual Financial Report (PAFR) for the fi scal year ended June 30, 2021 was
prepared by the Auditor and Controller’s offi ce to provide readers of interest an easy to
understand summary of our fi nancial activities. The data from this report was taken from our
Annual Comprehensive Financial Report (ACFR) for the fi scal year ended June 30, 2021. Both
reports are available online at www.sdcounty.ca.gov/auditor/cafr.html.
The information included in this report contains an overview of the County’s economy and
outlook, an analysis of the County’s fi nancial position and key fi nancial information concerning
the County’s investments, capital assets and debt. It also includes a summary of our General
Management System, around which we have built a culture of operational excellence, and
highlights the four County business groups. It also provides summaries of how the County’s
monies were received and spent and includes signifi cant statistical and demographic data.
It is important to note that the fi nancial data in this report is unaudited, includes information
exclusively on primary government funds and is presented on a non-GAAP (Generally Accepted
Accounting Principles) basis. This means that it excludes discrete component unit and fi duciary
fund information, contains condensed fi nancial information and does not provide all of the
necessary fi nancial statements and note disclosures required by GAAP.
We hope you enjoy reading this report and invite you to access our audited ACFR online for
more detailed information on your County fi nances. We welcome your questions, comments
and suggestions regarding the information in this report. You can contact our offi ce at (858)
694-2176.
Ebony N. Shelton
Deputy Chief Administrative Officer/
Chief Financial Officer
ABOUT THIS REPORT
Tracy Drager
Auditor and Controller
2
County of San Diego, California / 2021 Popular Annual Financial Report
The County was incorporated on
February 18, 1850, and functions under
a charter adopted in July 1933. A fi ve-
member Board of Supervisors elected to
four-year terms in district nonpartisan
elections governs the County. The Board
of Supervisors appoints the following
offi cers: the Chief Administrative
Offi cer (CAO), the County Counsel, the
Probation Offi cer and the Clerk of the
Board of Supervisors. All other non-
elected offi cers are appointed by the
CAO. Elected offi cials head the offi ces of
the Assessor/ Recorder/County Clerk,
District Attorney, Sheriff and Treasurer-
Tax Collector.
It is the second largest County by
population in California behind
Los Angeles County. There are 18
incorporated cities in the County; of
them, the City of San Diego is the largest
and Del Mar is the smallest. Tijuana,
Mexico is a substantial urban neighbor
with a shared border, workforce, and
economy.
ABOUT SAN DIEGO COUNTY
Board of Supervisors Nora Vargas
District 1
Vice-Chair
Joel Anderson
District 2
Nathan Fletcher
District 4
Chair
Jim Desmond
District 5
Terra Lawson-Remer
District 3
Sources: 2021 ACFR Statistical Table 13 and Adopted
Operational Plan Fiscal Years 2020-21 & 2021-22.
Statistics
7.0%
UNEMPLOYMENT RATE
490,068
SCHOOL ENROLLMENT
$6.55 Billion
ADOPTED ANNUAL BUDGET
$49,703
PERSONAL INCOME
PER CAPITA
The 2021 ACFR is available at:
https://www.sandiegocounty.
gov/content/sdc/auditor/cafr.
html
3
County of San Diego, California / 2021 Popular Annual Financial Report
San Diego’s economy has been aff ected by the Coronavirus Disease
2019 (COVID-19). Unemployment rose sharply from pre- COVID-19
levels of 3.2 percent to a 2020 peak of 15.9% at the end of April;
it dropped to a pandemic low of 6.8% in November before the
winter surge in COVID- 19 cases sent cases upward and caused
additional State closures on businesses (California Employment
Development Department. San Diego - Carlsbad MSA Labor Force
Data, accessed on March 29, 2021). By May 2021, the local San
Diego unemployment rate was 6.3%, slightly higher than the US
average (5.5%) and lower than the State’s rate (7.5%) (California
Employment Development Department. San Diego - Carlsbad
Metropolitan Statistical Area Press Release. June 2021).
Most experts expected overall sales tax dollars to be less in 2020
than the same period in 2019, but stimulus funding and a shift to
online shopping have not only helped consumers but the overall
health of the economy.
The state of the economy plays a signifi cant role in the County’s
ability to provide core services and the mix of other services sought
by the public. A number of risk factors are continuously monitored,
including employment, the housing market, and the national
economy as a whole.
County management continuously evaluates and responds to the
changing economic environment and its impact on the cost and
the demand for County services.
ABOUT SAN DIEGO COUNTY
County Economy and Outlook
(1) Industry employment is by place
of work; excludes self-employed
individuals, unpaid family workers,
and household domestic workers.
(2) Excludes the U.S. Department of
Defense.
Source: Adopted Operational Plan Fiscal
Years 2021-22 & 2022-23.
Employment Mix (1)
235,900
GOVERNMENT (2)
253,400
PROFESSIONAL & BUSINESS
SERVICES
220,500
TRADE, TRANSPORTATION
& UTILITIES
211,800
EDUCATIONAL & HEALTH
SERVICES
130,400
LEISURE & HOSPITALITY
112,900
MANUFACTURING
74,000
FINANCIAL ACTIVITIES
87,800
CONSTRUCTION
40,600
OTHER SERVICES
21,900
INFORMATION TECHNOLOGY
8,400
FARMING
300
MINING & LOGGING
Source: 2021 ACFR Letter of Transmittal and Management’s Discussion and
Analysis.
San Diego County Population
Source: Adopted Operational Plan Fiscal Years 2021-22 & 2022-23.
114,463 CARLSBAD 62,099 NATIONAL CITY
272,202 CHULA VISTA 177,335 OCEANSIDE
21,381 CORONADO 49,338 POWAY
4,268 DEL MAR 1,430,489 SAN DIEGO
104,393 EL CAJON 97,209 SAN MARCOS
62,183 ENCINITAS 57,999 SANTEE
153,008 ESCONDIDO 13,838 SOLANA BEACH
28,055 IMPERIAL BEACH 102,928 VISTA
59,966 LA MESA 505,675 UNINCORPORATED
26,526 LEMON GROVE 3,343,355 TOTAL
4
County of San Diego, California / 2021 Popular Annual Financial Report
The Government Finance Offi cers Association of the United
States and Canada (GFOA) has given an Award for Outstanding
Achievement in Popular Annual Financial Reporting to the
County of San Diego for its Popular Annual Financial Report for
the fi scal year ended June 30, 2020. The Award for Outstanding
Achievement in Popular Annual Financial Reporting is a
prestigious national award recognizing conformance with
the highest standards for preparation of state and local
government popular reports. In order to receive an Award
for Outstanding Achievement in Popular Annual Financial
Reporting, a government unit must publish a Popular Annual
Financial Report, whose contents conform to program
standards of creativity, presentation, understandability, and
reader appeal. An Award for Outstanding Achievement in
Popular Annual Financial Reporting is valid for a period of one
year only. We believe our current report continues to conform
to the Popular Annual Financial Reporting requirements, and
we are submitting it to GFOA to determine its eligibility for
another Award.
ACHIEVEMENTS
During fi scal year 2021, the County received awards for its leadership and excellence in operations,
including 51 awards from the National Association of Counties. Examples include:
Health and Human Services Agency: Live Well Mobile Offi ce. Adds to the County’s capability to deliver
indispensable services in a coordinated and integrated manner, to improve the lives of residents, and
realize the Live Well San Diego vision. The mobile offi ce was launched to ensure services are delivered
directly to San Diego County communities in a comprehensive and multidisciplinary way.
Planning and Development Services: Permit Streamlining, and Self-Certifi cation Program. Program that
allows professional customers to certify certain building permits themselves, reducing their plan-check
times. The program was created in response to stakeholder requests and allows customers to self-certify
certain permit types to reduce plan check time performed by County staff . This program has a training
and auditing component that allows interested and qualifi ed professionals to use their experience and
license to certify that their plans are complete and designed to meet all the local requirements.
Assessor/Recorder/County Clerk - The Marriage Hut was created to continue issuing marriage licenses
to the public during the global pandemic, while following State and County public health orders. A
separate space was set up in an open-air environment to allow for proper ventilation as well as social
distancing during marriage license appointments, and has been very well received by the public.
County Fire: Emergency Access Program Gives Vulnerable Residents Peace of Mind. Launched in 2020,
the Residential KnoxBox program’s objective is to provide back-up emergency access to overcome a
barrier during crises: a locked front door. The program provides indestructible lock boxes that store
a spare house key. Called KnoxBoxes, County Fire staff install the boxes at no cost on the homes of
qualifying residents. The program is available to some of County Fire’s most vulnerable residents: those
62 years or older, disabled, or who need help with a major life activity.
Outstanding Achievement
Other Awards and Recognitions
Note: Other Awards and Recognitions are listed in the 2021 ACFR Letter of Transmittal and Adopted Operational Plan Fiscal Years 2021-22 & 2022-23.
Government Finance Officers Association
Award for
Outstanding Achievement in
Popular Annual
Financial Reporting
Presented to the
County of San Diego
California
For its Annual Financial Report
for the Fiscal Year Ended
2020
Executive Director/CEO
5
County of San Diego, California / 2021 Popular Annual Financial Report
GENERAL MANAGEMENT SYSTEM
The General Management System outlines the County’s
strategic intent (strategic planning), prioritizes its goals and
use of resources (operational planning), describes how it
monitors progress on performance (monitoring and control),
ensures collaboration (functional threading) and recognizes
accomplishments (motivation, rewards and recognition)
throughout the year. By communicating and adhering to
this business model, the County of San Diego is able to
maintain an organizational culture that values transparency,
accountability, innovation and fi scal discipline and which
provides focused, meaningful public services. Each of the
fi ve components of the GMS form an annual cycle. Certain
components take place at specifi c times, while others are
performed year-round.
COUNTY STRATEGIC INITIATIVES
Strategic planning communicates the County’s strategic direction for the next fi ve years. The Strategic
Plan explains the County’s four Strategic Initiatives, in addition to its vision, mission and values. The four
Strategic Initiatives focus on how we achieve the County’s vision of a region that is Building Better Health,
Living Safely and Thriving.
Source: Adopted Operational Plan Fiscal Years 2021-22 and 2022-23.
6
Building Better Health
Ensure every resident has the opportunity to make positive healthy choices, and that
San Diego County has fully optimized its
health and social services delivery system
with an intentional focus on equity to make health, safety and thriving a focus of
all policies and programs.
Make San Diego the safest
and most resilient
community in the nation,
where youth are protected
and the criminal justice
system is balanced
between accountability
and rehabilitation.
Living Safely
Sustainable
Environments/
Thriving
Operational Excellence
Promote continuous improvement in the
organization through problem solving,
teamwork and leadership with a focus on
customers’ needs and keeping employees
positive and empowered.
Strengthen the local
economy through planning,
development and
infrastructure, protect San
Diego’s natural and
agricultural resources and
promote opportunities for
residents to engage in
community life and civic
activities.
Strategic
Initiatives
County of San Diego, California / 2021 Popular Annual Financial Report
COUNTY STATEMENT OF VALUES
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VisionA region that is B
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7
County of San Diego, California / 2021 Popular Annual Financial Report
Net position may serve over time as a useful indicator of a government's fi nancial position. In the case of
the County, assets and deferred outfl ows of resources of the County exceeded liabilities and deferred infl ows
of resources by $3.38 billion at the close of fi scal year 2021, an increase of $44.4 million or 1.3% over fi scal year
2020. This included a $171.5 million increase in net investment in capital assets, (a 4.7% increase over fi scal year
2020), and an increase of approximately $245.6 million in the County's restricted net position (a 21.2% increase
over fi scal year 2020). Additionally, unrestricted net position decreased by $372.7 million (a 25.1% decrease
over fi scal year 2020).The previously mentioned increase of $44.4 million in net position was composed
of changes in total assets, deferred outfl ows of resources, liabilities, and deferred infl ows of resources.
The largest portion of the County's net position refl ects its net investment in capital assets of $3.83 billion (land,
easements, buildings and improvements, equipment, software and infrastructure; less any related outstanding
debt used to acquire those assets). The County uses these capital assets to provide services to citizens;
consequently, these assets are not available for future spending. Although the County's net investment in 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 liquidated for these liabilities.
An additional portion of the County's net position (restricted net position) equaled $1.41 billion and
represents resources that are subject to external restrictions on how they may be used. External restrictions
include those imposed by grantors, contributors, laws and/or regulations of other governments. The
remaining portion of the County's net position includes $(1.86) billion in net negative unrestricted
net position attributable to the County’s outstanding Net Pension Liability and Net OPEB Liability.
COUNTY FINANCIALS
Source: 2021 ACFR Management's Discussion and Analysis Table 1.
June 30, 2021 and 2020
(In thousands)
Total Primary Government
2021 2020
Assets
Current and other assets $ 5,420,109 4,958,636
Capital assets 4,146,332 3,938,373
Total assets 9,566,441 8,897,009
Deferred Outfl ows of Resources
Total deferred outfl ows of resources 1,527,765 1,166,318
Liabilities
Long-term liabilities 6,279,368 5,625,441
Other liabilities 1,342,602 945,099
Total liabilities 7,621,970 6,570,540
Deferred Infl ows of Resources
Total deferred infl ows of resources 93,207 158,133
Net Position
Net investment in capital assets 3,832,335 3,660,873
Restricted 1,404,546 1,158,944
Unrestricted (1,857,852) (1,485,163)
Total net position $ 3,379,029 3,334,654
Government-wide Statement of Net Position
The 2021 ACFR is available at: https://www.sandiego-county.gov/content/sdc/auditor/cafr.html
8
County of San Diego, California / 2021 Popular Annual Financial Report
COUNTY FINANCIALS
Here are some defi nitions that will take the mystery out of the accounting terms you will fi nd throughout the fi nancial sections of this report.
Government-wide: This PAFR presents the balance sheet (statement of net position) which includes assets, deferred outfl ows of resources, liabilities, deferred infl ows of resources, and net position. It also presents the income statement (statement of changes in net position) which includes revenue and expense information.
Governmental Funds: The County maintains various governmental funds that are used to account for tax, program and other miscellaneous revenues.
Business-type Funds: The County maintains various business-type funds that are used to account for activities for which a fee is charged to external users for goods or services.
Primary Government: Includes all of the governmental and business-type activities belonging to the County but excludes the discrete component unit and fi duciary funds.
Assets: What is owned by the County.
Deferred outfl ows of resources: Use of net assets (assets minus liabilities) applicable to a future year.
Liabilities: What the County owes.
Deferred infl ows of resources: Net assets (assets minus liabilities) received applicable to a future year.
Net position: The diff erence between: assets plus deferred outfl ows of resources; minus liabilities and deferred infl ows of resources. It's the County's net worth.
Current and other assets: Includes such items as pooled cash and investments, cash and investments with fi scal agents, receivables, internal balances, inventories, deposits with others, and prepaid items.
Capital assets: Includes such items as County land, easements, construction in progress, buildings and improvements, software, equipment, infrastructure, and accumulated depreciation/amortization, if applicable.
Long-term liabilities: Includes such items as bonds, loans, compensated absences, net pension liability, net other postemployment benefi ts (OPEB) liability, and other County obligations.
Other liabilities: Includes such items as payables, payroll, accrued interest and unearned revenue.
Net investment in capital assets: Represents amounts invested in capital assets less accumulated depreciation/amortization and any outstanding debt used to acquire these assets.
Restricted: What is not available for use by the County because it is set aside for a particular use.
Unrestricted: One-time funds available for the County to use for operations.
Key Terms
Total Net Position
Fiscal Years 2017 - 2021
(In billions)
2021 $3.38
2017 $2.82
2018 $2.88
2019 $3.21
2020 $3.33
9
County of San Diego, California / 2021 Popular Annual Financial Report
Program revenues are those that derive directly from the program itself or from other parties, not the taxpayers; while general
revenues are those not required to be reported as program revenues. All expenses are reported under a specifi c function - a
group of related activities aimed at accomplishing a major service or regulatory program for which a government is responsible.
Notable changes in revenues between fi scal years 2020 and 2021 are attributable in part to increases of:
$394 million in COVID-19 revenue tied to the County’s T3 Strategy of Test, Trace and Treat to support
COVID-19 emergency response eff orts (broken down as follows: $190 million COVID-19; $50 million in
COUNTY FINANCIALS
Government-wide Statement of Changes in Net Position
Source: 2021 ACFR Management's Discussion and Analysis Table 2.
For the Years Ended
June 30, 2021 and 2020
(In thousands)
Total Primary Government
2021 2020
Revenues:
Program Revenues
Charges for services $ 630,817 646,844
Operating grants and contributions 3,758,523 3,066,604
Capital grants and contributions 24,242 29,828
General Revenues
Property taxes 881,605 851,473
Transient occupancy tax 5,386 4,173
Real property transfer tax 35,608 25,138
Miscellaneous taxes 8 3
Property taxes in lieu of vehicle license fees 465,076 441,609
Sales and use taxes 37,810 30,967
Investment earnings (2,998) 104,681
Other 97,870 104,738
Total revenues 5,933,947 5,306,058
Expenses:
Governmental Activities:
General government 465,464 426,846
Public protection 1,823,535 1,848,040
Public ways and facilities 163,809 188,295
Health and sanitation 1,363,772 1,022,279
Public assistance 1,838,270 1,475,071
Education 56,272 52,225
Recreation and cultural 57,617 57,995
Interest 57,386 47,689
Business-type Activities:
Airport 15,586 14,889
Jail Stores Commissary 5,222 5,776
San Diego County Sanitation District 31,716 28,385
Sanitation District - Other 10,923 9,504
Total expenses 5,889,572 5,176,994
Changes in net position before transfers 44,375 129,064
Transfers
Changes in net position 44,375 129,064
Net position at beginning of year 3,334,654 3,205,590
Net position at end of year $ 3,379,029 3,334,654
COVID-19 American Rescue Plan Act (ARPA);
and, $154 attributable to the CARES Act);
$55 million in federal aid tied to various
alcohol and drug treatment and mental health
programs; $47 million in federal aid tied to
Social Services Administrative revenue; and,
$44 million tied to various Public Health
Services grants primarily in Epidemiology and
Laboratory Capacity (ELC) for Prevention and
Control of Emerging Infectious Diseases grant.
Notable changes in expenses between fi scal
years 2020 and 2021 include increases of $263
million tied to the County’s T3 Strategy of Test,
Trace and Treat to support COVID-19 emergency
response eff orts; $150 million in overall salaries
and benefi t costs; $96 million increase tied to
the $94 million Great Plates Delivered Program
and $2 million in various Aging & Independence
Services programs to support COVID-19
emergency response eff orts; and, $46 million
in Small Business Stimulus Program expenses.
10
County of San Diego, California / 2021 Popular Annual Financial Report
REVENUES:
Charges for services: Fees charged for licenses, permits and franchises, fi nes, forfeitures, penalties and other fees.
Operating grants and contributions: Aid from local, state and federal agencies.
Capital grants and contributions: Federal and state grants for capital activities and donations made from external entities, e.g. developers.
Property taxes: County property taxes levied.
Transient occupancy tax: A tax levied by the County on rental receipts for temporary lodging in a hotel or other similar facility doing business in the unincorporated area.
Real property transfer tax: A tax assessed on property when ownership is transferred.
Miscellaneous taxes: Various other taxes levied.
Property taxes in lieu of vehicle license fees: Property taxes collected in lieu of vehicle license fees.
Sales and use taxes: A consumption tax charged at the point of purchase for certain goods and services.
Investment earnings: Earnings on County investments.
Other: Includes various miscellaneous revenue types that are not reported in aforementioned categories.
EXPENSES:
General government: Services provided by support departments such as the Assessor/Recorder/County Clerk, Auditor & Controller, Treasurer-Tax Collector, County Counsel, Board of Supervisors and the County Technology Offi ce.
Public protection: Services provided by departments such as Agriculture Weights and Measures, District Attorney, Department
of Animal Services, Offi ce of Emergency Services, fi re protection County Service Areas, Medical Examiner, Probation, and Sheriff .
Public ways and facilities: Services provided by departments such as Permanent Road Divisions, Public Works, and the San Diego Lighting Maintenance District.
Health and sanitation: Services provided by departments such as ambulance and paramedic County Service Areas, Environmental Health, Health and Human Services Agency, Inactive Waste Site Management and certain permanent road divisions.
Public assistance: Services provided by departments such as Health and Human Services Agency, Housing Authority, Probation and In Home Supportive Services Public Authority.
Education: Services provided by departments such as the County Library.
Recreation and cultural: Services provided by departments such as park County Service Areas, and Parks and Recreation.
Interest: Expenses associated with County debt.
Airport: Expenses related to the maintenance, operations and development of County airports. A major objective of the airport program is to develop airport property utilizing federal and State grants in order to enhance the value of public assets, generate new revenues and be a catalyst for aviation and business development.
Jail Stores Commissary: Expenses related to the fi nancing of a Sheriff 's commissary store allowing persons incarcerated at various County detention facilities to purchase a variety of goods, including food, snacks, stationery, personal care items and telephone time.
Sanitation Districts: Expenses related to the operations of the sanitation districts governed under the Board of Supervisors.
County Revenues & Expenses
Fiscal Years 2017-2021
(In billions)
COUNTY FINANCIALS
Key Terms
Expenses
Revenues
$5.31
$5.93
2020
2021
2017$4.28
2018$4.55
$4.90 2019
$5.89
$4.34
$4.37
$4.57
5.18
11
County of San Diego, California / 2021 Popular Annual Financial Report
COUNTY FINANCIALS
12
Where does the money go?
Where does the money come from?
Operating grants and contributions 63.3%
Property taxes 14.9%
Charges for services 10.6%
Property taxes in lieu of vehicle license fees 7.8%
Other 3.4%
[Capital grants and contributions .4%
Investment earnings .1%
Transient occupancy tax 0.1%
Real property transfer tax 0.6%
Sales and use taxes 0.6%
Other 1.6%]
Public protection 31.0%
Public assistance 31.0%
Health and sanitation 23.2%
General government 7.9%
Public ways and facilities 2.8%
Other 4.1%
[Business-type activities 1.1%
Education 1.0%
Interest 1.0%
Recreation and cultural 1.0%]
County of San Diego, California / 2021 Popular Annual Financial Report
Credit ratings are forward-looking opinions about credit risk. This
year the County Pool (the "Pool") remained rated AAAf/S1 by Fitch.
The ‘AAAf’ rating indicates the highest level of protection against
losses from credit defaults, whereas the ‘S1’ volatility rating indicates
that the Pool possesses low sensitivity to changing market conditions.
The County Pool's Investment Policy and California State Law set
minimum credit ratings for each type of investment held by the
Pool. The Pool invests in highly rated securities rated at least "A/F1"
by Fitch Ratings or another nationally recognized statistical rating
organization.
KEY FINANCIAL DATA
County Pooled Investments
Pooled Investments
(In thousands)
Investment Fair Value Fitch Rating
U.S. Federal Agencies $ 3,051,088 NR/AA+/AAA
U.S. Treasury Notes 1,088,906 AAA
Pass-through Securities 487,985 NR -AAA
Supranationals 1,116,426 NR -AAA
Commercial Paper 2,318,756 A-1 -A-1+
Local Government Investment Pools 200,708 AAA
Money Market Mutual Funds 3,800 NR -AAA
Municipal Bonds 241,362 NR -AAA
Negotiable Certifi cates of Deposit 2,705,093 A-1 -A-1+
Corporate Medium-Term Notes 697,476 A-1 -A-1+
Total investments $ 11,911,600
Note: Data presented in this chart excludes investments with fi scal agents.
Source: 2021 ACFR Notes to the Financial Statements Table 7.
The County investment policies and practices are based on prudent
money management principles and state law. The objectives of the
Pooled Investment Policy are:
To safeguard the principal of the funds under the County
Treasurer's control.
To meet the liquidity needs of the participants.
To achieve an investment return on the funds under control
of the County Treasurer within the parameters of prudent risk
management.
U.S. TREASURY
NOTES
9.14%
NEGOTIABLE
CERTIFICATES
OF DEPOSIT
22.71%
SUPRANATIONALS
9.37%
CORPORATE
MEDIUM-TERM
NOTES
5.86%
MONEY MARKET
MUTUAL FUNDS
.03%
PASS-THROUGH
SECURITIES
4.10%
COMMERCIAL
PAPER
19.47%U.S. FEDERAL
AGENCIES
25.61%
LOCAL
GOVERNMENT
INVESTMENT
POOL
1.68%
MUNICIPAL
BONDS
2.03%
13
County of San Diego, California / 2021 Popular Annual Financial Report
The chart below depicts the outstanding capital assets, net of depreciation/amortization, as of June 30, 2021 for both
Business-type and Governmental funds.
At June 30, 2021, the County’s capital assets, net of depreciation/amortization totaled $4.15 billion. Capital assets are used
to provide services to county residents. Some of the signifi cant capital asset activity in fi scal year 2021 was as follows:
$83.1 million towards construction of Youth Transition Campus.
$64.4 million towards construction and improvements of County maintained roads,
bridges, and other road related infrastructure.
$59.1 million towards acquisition of equipment.
$19.8 million towards Rock Mountain Detention Facility renovations.
$16.8 million towards improvement of various capital projects.
$15.8 million towards development of various software applications.
$11.7 million towards construction of Tijuana River Valley Regional Park Campground and Nature Education Center.
$11.7 million towards County Administration Center renovations.
$9.5 million towards construction of Regional Communication System.
$8.4 million towards various land acquisitions for the Multiple Species Conservation Program.
$7.5 million towards Ohio Street Probation renovations.
$7.3 million towards land acquisition for Emergency Vehicle Operations Course.
$5.1 million towards improvements at Gillespie Field Cajon Air Center.
KEY FINANCIAL DATA
Capital Assets
14
Land
Equipment
Easements
SoftwareBuildings &Improvements
RoadInfrastructure
Sewer Infrastructure
Bridge Infrastructure
.24%
4.38%
1.77%
27.97%
1.34%
1.39%
13.11%
42.54%
Construction in Progress
7.26%
County of San Diego, California / 2021 Popular Annual Financial Report
County Debt Service
Requirements to Maturity
(In thousands)At June 30, 2021 the County’s long-term liabilities
totaled $1.709 billion: $1.078 billion in long-term
debt principal of certifi cates of participation,
bonds and loans; and $631 million of other
long-term liabilities including capital leases,
claims and judgments, compensated absences,
landfi ll postclosure, pollution remediation, and
unamortized premiums and discounts.
KEY FINANCIAL DATA
Long-Term
County Principal Debt Outstanding
Loans
Loans provide funds for the construction of low
income housing; for various projects in County
facilities to increase energy effi ciency; for the
purchase of one acre of property located in the
Borrego Springs area to support the County's
Regional Communications System (RCS); and
energy savings measures at various facilities.
Certificates of Participation (COP) and Lease
Revenue Bonds (LRB)
COP/LRB provide funds for the acquisition
and construction of major capital facilities and
equipment. The repayment of these COP/LRB is
secured by a lease structure where the borrowing
entity leases certain properties to another entity,
a lessor, which in turn leases the properties
back to the borrower. These lessors are the San
Diego County Capital Asset Leasing Corporation
(SANCAL), and the San Diego Regional Building
Authority (SDRBA).
Taxable Pension Obligation Bonds (POB)
POBs are issued by the County to reduce its
pension unfunded actuarial liability and to achieve
interest rate savings by issuing bonds at interest
rates which are less than the assumed rate of
return earned on proceeds placed in the San
Diego County Employees Retirement Association’s
(SDCERA) pension plan. They are also issued to
refund previously issued Pension Obligation debt.
Tobacco Settlement Asset-Backed Bonds (TSAB)
TSAB are issued by the Tobacco Securitization
Joint Powers Authority of Southern California to
securitize future revenue streams available to the
County pursuant to various agreements.
County Board of Supervisors Policy Manual, Section B, Policy B-65,
“Long-Term Obligations and Financial Management Policy” (http://
www.sandiegocounty.gov/content/sdc/cob/policy.html), provides
guidance on the County’s long-term fi nancial strategy and obligations.
Examples of management practices and other information about
long-term obligations found in the policy include the following:
The County shall:
Invest general purpose revenue savings generated by maturing
long-term obligations and/or refi nancings to accelerate
payment of outstanding long-term obligations and/or to avoid
the issuance of new long-term obligations by cash fi nancing of
capital projects;
Continually review outstanding obligations and aggressively
initiate refi nancings when economically feasible and
advantageous; and,
Never use long-term fi nancial obligations to fi nance current
operations or recurring needs.
Note: This chart includes debt principal, unaccreted appreciation and interest.
$2,609
$1,226,259
$465,157
$277,861
15
POB TSAB COP/LRB Loans
37.14%42.98% 19.64% .24%
Note: This chart includes debt principal only
County of San Diego, California / 2021 Popular Annual Financial Report
KEY FINANCIAL DATA
Sources: https://www.moodys.com/sites/products/AboutMoodysRatingsAttachments/MoodysRatingSymbolsandDefi nitions.pdfhttps://www.spratings.com/documents/20184/774196/Guide_to_Credit_Rating_Essentials_Digital.pdfhttps://www.fi tchratings.com/site/defi nitions
Note: S&P and Fitch use a plus (+) or minus (-) to show relative standing within its major rating categories. Moody’s appends numerical modifi ers 1, 2 and 3 to each generic rating classifi cation from Aa to Caa where 1 indicates ranking at the higher end, 2 is mid-range and 3 ranks at the lower end of its category.
Credit Ratings
As of June 30, 2021 Moody’s
Standard & Poor’s Fitch
Issuer Rating Aaa AAA AAA
Certifi cates of Participation San Diego County Capital Asset Leasing Corporation (SANCAL)Aa1 AA+ AA+
Lease Revenue Refunding Bonds SDRBA (County Operations Center) Series 2016A Aa1 AA+ AA+
Pension Obligation Bonds Aa2 AAA AA+
Tobacco Settlement Asset-Backed Bonds - Series 2006B CAB (First Subordinate)not rated CCC- not rated
Tobacco Settlement Asset-Backed Bonds - Series 2006C CAB (Second Subordinate)not rated CCC- not rated
Tobacco Settlement Asset-Backed Bonds - Series 2006D CAB (Third Subordinate)not rated CCC- not rated
Tobacco Settlement Asset-Backed Bonds - Series 2019A (Class 1) Serial Bonds not rated A,A- not rated
Tobacco Settlement Asset-Backed Bonds - Series 2019A (Class 1) Term Bonds not rated BBB+ not rated
Tobacco Settlement Asset-Backed Bonds - Series 2019B-1 (Class 2) Turbo CIB not rated BBB+,BBB- not rated
Tobacco Settlement Asset-Backed Bonds - Series 2019B-2 (Class 2) Turbo CAB not rated not rated not rated
San Diego County Redevelopment Agency Bonds not rated not rated not rated
Source: 2021 ACFR Management’s Discussion and Analysis Table 3.
Credit Rating Scale
Moody’s
Standard & Poor’s
Fitch
CBBaaAa
Aaa
D CCC B BBB AA
AAA
DBBAA
AAA
16
County of San Diego, California / 2021 Popular Annual Financial Report
PROPERTY TAX
The County Assessor prepares the local roll which includes the values of real & personal property located throughout the
County. The fi rst step in the assessment process is to locate and identify all parcels of property. This is done through the use
of assessor’s parcel maps. There are more than 29,100 assessor’s maps, showing 1,004,808 parcels of land. These maps cover
the county, including all the cities as well as the unincorporated areas. The parcel maps show the assessor’s parcel numbers,
recorded dimensions, acreage, street widths, parcel and lot boundaries, adjoining parcels and recorded map information. The
information found on these maps is obtained from government maps, recorded maps, subdivision maps, record of surveys
and road surveys. The table below shows the inventory of parcels and assessed valuations for fi scal year 2020-2021. For more
information regarding maps and how to obtain a copy, visit https://arcc.sdcounty.ca.gov.
Sources: County of San Diego Property Valuations, Tax Rates, Useful
Information for Taxpayers Fiscal Year Ending June 30, 2021, Table 23.
Assessment Parcel: An area of land in one ownership and one general
use that in the opinion of the assessor should be included under one
description for assessment purposes after consideration of all legal
factors.
Assessed Value: One hundred percent of full value for the 1981/82
fi scal year and the following fi scal years. Prior to fi scal year
1981/82, the assessed value was 25% of the full value.
Assessor’s Maps: The foundation of the assessor’s record system
and provide the legal description for the assessment of all parcels
of real property for taxation.
Current Roll: The roll containing the property on which current
taxes are a lien. “Roll” means the entire assessment roll.
1. Represents the exchange of Property Tax for Cities and County Vehicle License Fee as authorized under Senate Bill 1096, chaptered August 5, 2004.
2. The collection allocated to Educational Revenue Augmentation Fund (ERAF) was used to pay the in lieu of vehicle license fee (VLF) to County and Cities.
3. Includes districts under the Board of Supervisors.
4. The redevelopment agencies were dissolved in Fiscal Year 2011-12 (ABx1 26). Their share of property taxes were deposited to the redevelopment successor agencies’ Redevelopment Property Tax Trust Fund (RPTTF) and these funds were allocated to Redevelopment Successor Agencies, County, Schools, Cities, Special Districts and the State Controller offi ces as provided by Health and Safety Code, Division 24, Part 1.85.
Sources: 2021 ACFR Statistical Table 8; Details of the
Property Tax Collection Allocation were provided by the
County Auditor and Controller’s Property Tax Services
Division.
Key Terms
Property Tax Collection Allocation
The County collected $5.90 billion of the 1% property tax (including Unitary
tax) as of June 30, 2021. This chart shows the Fiscal Year 2021 Property Tax Collection Allocation.
Inventory of Parcels and Assessed ValuationsFiscal Year 2020-2021
Real Property
Total Taxable Parcels Assessed Valuations
Residential 936,884 $ 444,802,779,161
Industrial 11,233 31,657,879,391
Commercial 27,087 87,886,786,264
Irrigated Farm 3,118 1,260,417,599
Rural Land (Non-irrigated) 8,461 1,583,678,882
Institutional 2,211 10,394,077,599
Recreational 15,319 3,233,973,565
Miscellaneous 495 37,532,180
Total Taxable Parcels 1,004,808 $ 580,857,124,641
Note: Data represents total assessed values of real property only, without exemptions.
- SPECIAL DISTRICTS (3) 3%
- COUNTY IN LIEU OF VLF (1) 8%
- CITIES 13%
- COUNTY LIBRARY 1%
- COUNTY GENERAL 13%
- SCHOOLS (1)(2) 45%
- CITIES IN LIEU OF VLF (1) 5%
- REDEVELOPMENT SUCCESSOR
AGENCIES’ RPTTF (4) 12%
17
Inventory of Parcels and Assessed Valuations
County of San Diego, California / 2021 Popular Annual Financial Report
By the Numbers
Serving the Public
Operational Excellence
Sheriff : Integrated technology in the deployment of public safety response, using the Alert Response Tool (ART) mobile app
which takes the public safety grid book and puts it in the hands of fi rst responders out in the fi eld to accurately select and
alert areas for evacuation orders. ART reduces delays and creates effi ciencies for managing large evacuation events such as
wildfi res.
Purchasing and Contracting: Coordinated and publicized contracting opportunities with local business chambers, business
associations, and other community agencies. Collaborated with several public agencies for small business outreach events,
including CalTrans, San Diego County Regional Airport Authority, the US Navy, and the San Diego Small Business Development
Center.
Public Works: Commenced a Green Streets Clean Water Plan to support water quality improvement and sustainability. The
plan will establish criteria to identify and rank potential project opportunities based on their anticipated water quality benefi t
and other co-benefi ts such as increased sidewalk connectivity, creation of green space, and fl ood attenuation.
Health and Human Services Agency: Created a Dementia Friendly Activities Toolkit, which gives dementia friendly practices
to help caregivers with communication strategies and off ers activity adaptations for diff erent levels of dementia progression.
Activities include art, music, physical activity, cooking, gardening, and more and is available in English, Spanish, Arabic,
Tagalog, and Vietnamese.
General Services: Received the U.S. Green Building Council’s distinction of LEED Gold for the Sheriff Technology Information
Center.
Parks and Recreation: Received a California State Association of Counties 2020 Challenge Award. The County’s Virtual
Recreation Center (Center) through the department of Parks and Recreation provides activities for people of all ages, interests
and abilities. Programs are interactive, accessible and engaging. The Center includes virtual hikes and tours, video tutorials,
printing coloring sheets and activity books, scavenger hunts and challenges, invitation to ranger-led education sessions and
more.
Medical Examiner’s Offi ce: Received a California State Association of Counties 2020 Challenge Award. The County’s Medical
Examiner’s Offi ce is one of eight California Counties accredited by the National Association of Medical Examiners (NAME),
which sets national standards in forensic medicine. It is one of three accredited in California by the American College of
Graduate Medical Education (ACGME) to educate future forensic pathologists. Additionally, the Medical Examiner’s Forensic
Toxicology Laboratory is also accredited by the American Board of Forensic Toxicology (ABFT).
Health and Human Services Agency: Edgemoor Distinct Part Skilled Nursing Facility was once again named #1 nursing home
in Newsweek’s ranking of America’s Best Nursing Homes 2021. This list highlights top nursing homes, compared to others in
the state, based on performance data, peer recommendations, and the facility’s handling of the COVID-19 threat.
Note: Other Awards and Recognitions are listed in the 2021 ACFR Letter of
Transmittal and Adopted Operational Plan Fiscal Years 2021-22 & 2022-23.
Treasurer-Tax Collector: Maintained a collection rate of 99.0% for secured taxes and 96.1% for unsecured taxes by preparing
and mailing property tax bills/notices and processing tax payments in a timely manner to ensure timely revenue collection
on behalf of San Diego County’s taxpayers.
District Attorney: Continued the San Diego Opioid Project, a public outreach and education campaign that produced 46
million impressions and 3.8 million online engagements. The data-driven campaign focused on re-framing the dangers of
opioid use with the goal of reducing overdose deaths and saving lives.
Health and Human Services Agency: Immunized 100% (16,345) of children under eighteen who were served at Public Health
Centers and Clinics to protect them from diseases, such as measles and whooping cough.
University of California Cooperative Extension: Conducted virtual nutrition education for 1,133 children and youth from
low-income and limited-resource families in English and Spanish via 19 virtual workshops (consisting of at least 6 hours for
each workshop series) to promote nutrition and physical activity for a healthy lifestyle that can reduce the risk of childhood
obesity and chronic diseases such as diabetes and heart disease.
18
ACHIEVEMENTS OF NOTE
County of San Diego, California / 2021 Popular Annual Financial Report
Source: Shutterstock.com Cover page: Sunny day at Mission Trails Regional Park Beach in San Diego/ Gloria V Moeller; Ocean waves crashing on the rocks near the La Jolla Cove with seals and seabirds/Michael J Magee; Page 2: La Jolla Cove sunrise. San Diego, California USA./Dancestrokes; San Diego, California - August 02, 2021: Bayfront view of the San Diego Convention Center/Noah Suave; Page 3: Aerial view of Miramar reservoir in the Scripps Miramar Ranch community, San Diego, California. Miramar lake, popular activities recreation site including boating, fi shing, picnic & 5-mile-long trail./Bonandbon; Aerial View of San Diego
Waterfront Park/Cassiohabib; Page 4: Downtown San Diego, California, Usa. October 2016. Gaslamp/Johan Erkki; Downtown San Diego at night/S. Borisov; Page 5: San Diego’s Balboa Park Bell Tower in San Diego California/Dancestrokes; Sunset in Anza Borrego State Park as viewed from Font’s Point./Jim_Brown_Pho-tography; Page 9: San Diego, California / USA - January 24, 2016: Mission Trails Regional Park. Recent rainfall in the region gives a healthy fl ow of water over the spillway of the historical Old Mission Dam./Craig Chaddock; Page 4: Downtown San Diego at night/S.Borisov; Page 16: Amazing panoramic view of the San
Diego downtown by the harbour with many skyscrapers and huge aircraft carrier docked by the pier./Ingus Kruklitis; Back Cover: Borrego Springs, CA USA - April 2, 2021: The Anza-Borrego Desert State Park Visitor Center Wooden sign./Rosamar.
19
Equity,
Diversity
&
Inclusion
D&I
EC
DHR
EDI
OEC
ERGs
OERJ
HRC
Diversity & Inclusion
Executive Council
Department of
Human Resources:
Equity, Diversity &
Inclusion Division
Office of Ethics & ComplianceEmployee Resource Groups (ERGs)
Leon L. Williams
Human Relations Commission
Internally focused on
integrating equity,
diversity, and inclusion
into the organizational
County Culture and
specifically supporting
the areas of
recruitment, hiring, and
professional
development/
advancement.
Department dedicated to fostering a culture
of integrity, implementing the Code of Ethics,
promoting ethics and compliance through
developed policies, programs and trainings,
and reviewing discrimination, fraud, waste
and abuse complaints.
31-member commission established
to promote positive human relations ,
respect and integrity of every
individual in the County of San Diego.
Diverse executive leadership creating a
culture that keeps diversity and inclusion at
the forefront for leaders throughout the
enterprise by guiding the County’s diversity
and inclusion strategy.
The County of San Diego has ten thriving
Employee Resource Groups that play an
important role in advancing our commitment to
diversity and creating and sustaining an
inclusive workplace. ERGs provide employees
networking and professional development
activities, support County initiatives, and
promote cultural awareness.
COUNTY of SAN DIEGO
D&I PARTNERSHIP MODEL
Office of Equity
& Racial Justice
Devoted to
engaging the
community to
cocreate
transformative,
enduring,
structural and
systemic change in
San Diego County
government.
Photo Credits
DIVERSITY & INCLUSION
County of San Diego
5530 Overland Avenue, Suite 410, San Diego CA 92123
www.sdcounty.ca.gov