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Prepared under the direction of
James W. Hamilton, CPA
Auditor-Controller • Treasurer-Tax Collector
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Cover photo from Islay Hill Trail in San Luis Obispo taken at sunrise by
Logan Mitchell, Auditor-Controller-Treasurer-Tax Collector's Office
COUNTY OF SAN LUIS OBISPO
COMPREHENSIVE ANNUAL FINANCIAL REPORT
)UNE 30, 2022
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letterof Transmittal........................................................................................................ 1
Certificate of Achievement for Excellence in Financial Reporting ..........................................9
List of Elected and Appointed Officials............................................................................. 10
OrganizationalChart...................................................................................................... 11
FINANCIAL SECTION
Independent Auditors' Report......................................................................................... 12
Management's Discussion and Analysis............................................................................ 16
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ...........................................................................................35
Statement of Activities................................................................................................36
Fund Financial Statements:
Governmental Funds:
BalanceSheet............................................................................................................38
Reconciliation of Governmental Funds Balance Sheet to the Government-
Wide Statement of Net Position — Governmental Activities............................................39
Statement of Revenues, Expenditures, and Changes in Fund Balances —
GovernmentalFunds.................................................................................................40
Reconciliation of Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Government-Wide Statement of
Activities — Governmental Activities............................................................................41
Proprietary Funds:
Statement of Fund Net Position...................................................................................42
Statement of Revenues, Expenses, and Changes in Fund Net Position ............................43
Statement of Cash Flows ............................................................................................44
Fiduciary Funds:
Statement of Fiduciary Net Position .............................................................................45
Statement of Changes in Fiduciary Net Position ............................................................46
Notes to Basic Financial Statements.............................................................................47
The accompanying notes are an integral part of these financial statements.
FINANCIAL SECTION (CONTINUED�
Required Supplementary Information
Description ................................................................................................................94
Schedule of the County's Proportionate Share of the San Luis Obispo County
Pension Plan's Net Pension Liability............................................................................95
Schedule of the County's Contributions to the San Luis Obispo County Pension Plan ........96
Other Post-Employment Benefits (OPEB) Plan Schedule of Changes in the
County's Net OPEB Liability and Related Ratios............................................................97
Other Post-Employment Benefits (OPEB) Plan Schedule of Actuarially
Determined Plan Contributions and Related Ratios ......................................................98
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget to Actual Comparison - General Fund ..............................................................99
Notes to Required Supplementary Information ........................................................... 101
Other Supplementary Information:
Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds:
Nonmajor Governmental Fund Descriptions......................................................... 102
Combining Balance Sheet................................................................................... 104
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances ......................................................................................................... 108
Schedule of Revenues, Expenditures, and Changes in Fund Balances— Bud_qet
to Actual Comparison:
CapitalProjects................................................................................................. 112
Community Development................................................................................... 113
Emergency Medical Services............................................................................... 114
Driving Under the Influence Programs................................................................. 115
Fishand Game.................................................................................................. 116
RoadImpact Fees............................................................................................. 117
Library ............................................................................................................. 118
Parks................................................................................................................ 119
Public Facilities Fees.......................................................................................... 120
Roads............................................................................................................... 121
WildlifeGrazing................................................................................................. 122
Flood Control Districts........................................................................................ 123
Lighting Control Districts.................................................................................... 124
County Service Area Districts.............................................................................. 125
Public Facilities Corporation................................................................................ 126
Pension Obligation Bonds................................................................................... 127
SLO County Financing Authority ......................................................................... 128
The accompanying notes are an integral part of these financial statements.
FINANCIAL SECTION (CONTINUED�
Nonmajor Enterprise Funds:
Nonmajor Enterprise Fund Descriptions............................................................... 129
Combining Statement of Net Position.................................................................. 130
Combining Statement of Revenues, Expenses, and Changes in Net Position ........... 131
Combining Statement of Cash Flows................................................................... 132
Internal Service Funds:
Internal Service Fund Descriptions...................................................................... 133
Combining Statement of Net Position.................................................................. 134
Combining Statement of Revenues, Expenses, and Changes in Net Position ........... 135
Combining Statement of Cash Flows................................................................... 136
Internal Service Funds — Insurance Funds:
Combining Statement of Net Position..................................................... 137
Combining Statement of Revenues, Expenses, and Changes in
NetPosition ....................................................................................... 138
Combining Statement of Cash Flows...................................................... 139
Fiduciary Funds:
Fiduciary Fund Description ................................................................................. 140
Custodial Funds:
Combining Statement of Fiduciary Net Position....................................... 141
Combining Statement of Changes in Fiduciary Net Position ...................... 142
Investment Trust Funds:
Combining Statement of Fiduciary Net Position....................................... 143
Combining Statement of Changes in Fiduciary Net Position...................... 144
General Fund - Detail Budgetary Comparison Schedules:
Detail Schedule of Expenditures — Budget to Actual Comparison............................ 145
The accompanying notes are an integral part of these financial statements.
STATISTICAL SECTION (UNAUDITED�
Statistical Section Table of Contents.............................................................................153
Net Position by Component.........................................................................................154
Changes in Net Position ..............................................................................................155
Fund Balances, Governmental Funds............................................................................157
Changes in Fund Balances, Governmental Funds...........................................................158
AssessedValuation.....................................................................................................159
Direct and Overlapping Property Tax Rates...................................................................160
Principal Property Taxpayers .......................................................................................161
Property Tax Levies and Collections............................................................................. 162
Special Assessment Billings and Collections...................................................................163
Ratios of Total Debt Outstanding.................................................................................164
Ratios of General Bonded Debt Outstanding .................................................................165
Legal Debt Margin Information....................................................................................166
Demographic and Economic Statistics ..........................................................................167
PrincipalEmployers ....................................................................................................168
Full Time Equivalent County Government Employees by Function...................................169
Operating Indicators by Function.................................................................................170
Capital Asset Statistics by Function ..............................................................................171
The accompanying notes are an integral part of these financial statements.
INTRODUCTORY SECTION
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•� Cep . COUNTY OF SAN LUIS OBISPO
�'��p � qG�r
�� 1850 °P Office of James W. Hamilton, CPA
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� a ;�YA Y� e � Auditor-Control%r • Treasurer-Tax Col%ctor • Pub/icAdministrator
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•��RER.TA%CO���'�O� Michael Stevens �Leputy
Justin Cooley ,Deputy
January 15, 2023
Honorable Board of Supervisors
County of San Luis Obispo
1055 Monterey Street, Suite D430
San Luis Obispo, California 93408
To the Citizens of San Luis Obispo County and Your Honorable Board:
The Annual Comprehensive Financial Report of the County of San Luis Obispo (County) for the fiscal year ended
June 30, 2022, is hereby submitted as mandated by Sections 25250 and 25253 of the Government Code of the
State of California. These statutes require that the County publish a complete set of financial statements audited
in accordance with Generally Accepted Auditing Standards (GAAS) by a firm of licensed certified public
accountants. The County prepares its financial statements in accordance with Generally Accepted Accounting
Principles (GAAP). The requirements for financial reporting in accordance with GAAP are established by the
Governmental Accounting Standards Board (GASB).
This report consists of management's representations concerning County finances. Consequently, management
assumes full responsibility for the completeness and reliability of all the information presented in this report. To
provide a reasonable basis for making these representations, management has established a comprehensive
internal control framework designed to protect the government's assets from loss,theft, or misuse and to compile
sufficient reliable information for the preparation of the County's financial statements in conformity with GAAP.
The County's comprehensive framework of internal controls has been designed to provide a reasonable, rather
than an absolute assurance, that the financial statements will be free from material misstatement. As
management,we assert that,to the best of our knowledge and belief,this financial report is complete and reliable
in all material respects.
The County's financial statements have been audited by CliftonLarsonAllen LLP, a firm of licensed certified public
accountants. The goal of the independent audit was to provide a reasonable assurance that the financial
statements of the County for the fiscal year ended June 30, 2022, are free of any material misstatement. The
independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; assessing the accounting principles used and significant estimates made by management;
and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the
audit, that there was a reasonable basis for rendering an unmodified opinion that the County's financial
statements for the fiscal year ended June 30, 2022, are fairly presented and in conformity with GAAP. The
independent auditor's report is presented as the first component of the financial section of this report.
The independent audit of the County's financial statements was part of a broader, federally mandated ��Single
Audit"designed to meet the requirements imposed by 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.
These reports are available in the County's separately issued Single Audit 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
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designed to complement the MD&A and the two should be read in conjunction with each other. The County's
MD&A can be found immediately following the report of the independent auditors.
Profile of the Government
The County of San Luis Obispo, incorporated in 1850, is located on the central coast of the State of California,
midway between Los Angeles and San Francisco. The County covers approximately 3,300 square miles and
serves a population of 283,159 residents. Approximately 43% of the population resides in the unincorporated
area. The seven incorporated cities in the County are Arroyo Grande,Atascadero, Grover Beach, Morro Bay, Paso
Robles, Pismo Beach, and San Luis Obispo.
A five-member County Board of Supervisors (Board) is the legislative authority and governance for the County.
Each supervisor is elected to a four-year term in nonpartisan districts. The terms are staggered with two
supervisors being elected then three supervisors being elected in alternating election years. The Board is
responsible, among other things, for establishing ordinances, adopting the budget, appointing committees, and
hiring the County Administrative Officer and non-elected department heads. The County Administrative Officer is
responsible for carrying out the policies and ordinances of the Board and for overseeing the day-to-day operations
of the County. The County has five elected department heads responsible for the offices of the County Clerk-
Recorder, Assessor, Auditor-Controller-Treasurer-Tax Collector, District Attorney, and Sheriff-Coroner.
The County provides a full range of services, including public safety and fire protection; construction and
maintenance of highways, streets, and other infrastructure; health and social programs that promote the well-
being of the community; and recreational activities and cultural events.
The annual budget serves as the foundation for the County's financial planning and control. The County Budget
Act, as presented in California Government Code Sections 29000 and 30200, provides the general provisions and
requirements for preparing and approving the County budget. All County departments are required to submit
budget requests to the County Administrative Officer. The budgets are then reviewed by the County
Administrative Officer and compiled into a proposed budget with the County Administrative Officer's
recommendation. Public hearings are set in the month of June, with the Board of Supervisors adopting the final
budget before the start of the next fiscal year. The proposed budget is prepared by fund, function (e.g., Public
Safety), and department or division (e.g., Sheriff-Coroner). During the year, department heads may make
transfers of appropriations within the same budget unit with the approval of the County Administrative Officer
and Auditor-Controller-Treasurer-Tax Collector. Transfers of appropriations between budget unites or increases
in the budget from new revenue sources, reserves and/or contingencies require Board of Supervisors'approval.
Monthly estimates for both revenues and expenditures are used to assist departments with budgetary control,
and quarterly reports are submitted by each department to the County Administrative Officer and the Board on
the status of the departmental budgets.
Budget-to-actual comparisons are provided in the Annual Comprehensive Financial Report for each individual
governmental fund for which an appropriated annual budget has been adopted. For the General Fund this
comparison is presented as part of the required supplementary information immediately following the notes to
the financial statements. For other governmental funds with appropriated annual budgets, this comparison is
presented in the governmental funds subsection of the statements.
The County has various blended component units which primarily provide utility and debt financing services. The
County has one discretely presented component unit and one fiduciary component unit. The discretely presented
component unit is the Children and Families Commission of San Luis Obispo County (First 5), which allocates
funds from the California Children and Families Trust Fund and advocates for quality programs and services,
supporting children prenatal to age 5,to ensure that every child is healthy and ready to learn in school is discretely
presented in the Government-Wide Financial Statements. The fiduciary component unit is the San Luis Obispo
County Pension Trust which is an independent trust that administers the San Luis Obispo County Employees
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Retirement Plan on behalf of the County. The San Luis Obispo County Pension Trust is a fiduciary component
unit and is presented in the Fiduciary Fund Financial Statements.
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 County operates.
Employment:
• Unemployment in the County, as of
September 2022, was 2.5% which is U N E M P LOYM E NT RATES
lower than both the state rate of 3.9%
and the national rate of 3.5%. During 12.0%
the same period last year,
unemployment in the County was 10.0%
4.6%. The fall in the County's
unemployment rate has closely g.0%
followed the trend in unemployment i
at the state and national level 6.0% National
decreasing after the significant impact
of the COVID-19 pandemic. 4,0o�o State
• The State of California has a major 2.00�0 � County
presence in the County of San Luis
Obispo with California Men's Colony, 0.0%
Atascadero State Hospital, Caltrans, 2o�s 2019 202o zoz� 2022
and the California Polytechnic State
University, making the State one of
the largest employers in the County. Source: US Bureau of Labor Statistics
Wages:
AVERAGE ANNUAL INCOME
$90,000 - • Average income increased by 3.0% to
$56,779 from 2020 to 2021 (most
$80,000 recent data) for the residents of the
$70,000 County of San Luis Obispo whereas
average income for the state increased
$60,000 by 7.9% to $85,741 as reported by the
$50,000 Bureau of Labor Statistics.
$40,000 . As reported by the Bureau of Labor
$30,000 Statistics, the highest earning 2021
State occupational groups in the area
$20,000 consisted of physicians, psychiatrists,
$10,000 County chief executives, dentists, architectural
and engineering managers, computer
�� and information systems managers,
2017 2018 2019 2020 2021 nurse practitioners, and pharmacists.
Source:US Bureau of Labor Statistics
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Retail Sales:
SALES TAX REVENUE
• Sales and use tax revenue within the
unincorporated areas of the County
was $18.8 million in FY 2021-22. �Zo,000,000
This is a $5.2 million increase over
the prior fiscal year. However, $3.3 ��5,000,000
million of the increase related to an
accounting adjustment. �'
$10,000,000
.
According to Visit SLO CAL, tourists ` `
spent $1J8 billion in calendar year �5,000,000 %
2021. The leading sectors for �'{% �
tourism spending were lodging gp `��� �.'� _ _
($657 million), food service ($448 2017-18 2018-19 2019-20 2020-21 2021-22
million), retail ($223 million), and
recreation ($171 million). *Source: County's Enterprise Financial System
Real Estate and Property Taxes:
• The County's median home price
increased from ��4s,soo in �u�y MEDIAN HOME PRICES
2021 to 789,500 in 2022. This is a
5.5% increase from the prior year. gg5o,000
The increase in median home price
demonstrates people's continued �soo,000
desire to live in the area and a �750,000
healthy local real estate market.
$700,000
• Discretionary property tax receipts �650,000
were $150 million in FY 2021-22, an �600,000
increase of 3.7%over the prior year.
$550,000
• The total tax levy on secured �500,000
property, which excludes unsecured 2018 2019 2020 202� 2022
property, direct charges, and school
bonds, was $619,518,063 for FY
2021-22, an increase of 3.3% from Source: Corelogic
the previous year.
• Property transfer tax is related to the value and number of real estate transactions during the year. In the
County's unincorporated areas property transfer taxes increased 4.5% to $4.5 million in FY 2021-22.
• The property tax delinquency rate decreased from 1.1%, in FY 2020-21, to 0.9% in FY 2021-22.
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Tourism:
TRANSIENT
• The scenic coastline, rolling vineyards, and
abundance of outdoor activities continues O C C U PA N C Y TAX
to make San Luis Obispo County a tourist
destination. Transient Occupancy Tax �18,000,000
(TOT) collections in the unincorporated $16,000,000 '''
areas increased 14.5% in FY 21-22 to = {
$17.2 million. �14,000,000 : �
$12,000,000 :: j
• Airline passenger travel at the San Luis ��0,000,000 3
Obispo County Airport increased 18.6% gg,000,000 .: :j
from June 2021 to June 2022. �6,000,000 - �
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• The California Mid-State Fair in Paso Robles �4,000,000 � :: J
reported a 42.5% increase in attendance �2,000,000 �
over last year's modified fair. Unofficial �p �
attendance was estimated at 310,000 zo�8 2019 2020 202� 2o2z
people.
Source: County's Enterprise Financial System
Long-term financial planning:
• The FY 2022-23 recommended budget authorized a $784 million governmental fund spending level, an
increase over the $754 million adopted budget for FY 2021-22. The budget provides support to the
development of departmental programs and services and assists County operations in responding to
continuously changing needs, including the health and safety of the community. This budget includes
American Rescue Plan Act funding for multiple high priority projects to address health and safety needs,
meet regulatory requirements, and replace aging infrastructure in the County's water and wastewater
systems. In FY 2022-23, the General Fund has $659.2 million appropriated to finance expenditures,
including contingencies of$31.3 million.
The General Fund reports fund balance intended for a variety of long-term needs in classifications based on
the extent to which the amounts are restricted for use. The General Reserve, established per Government
Code §29127, is accessible only upon declaration of emergency by the Board of Supervisors. As of June 30,
2022,the General Reserve was $13.0 million. In addition to the General Reserve, reserves exist for building
replacement ($47.2 million), automation projects ($19.8 million), and tax-loss mitigation purposes ($42.4
million). Other classifications of General Fund balance are described in Footnote 11.
• The County was awarded $55 million of Coronavirus State and Local Fiscal Recovery Funds under the
American Rescue Plan Act of 2021. In FY 2020-21, the County Board of Supervisors adopted broad
expenditure categories for the use of the funds based on the US Department of Treasury's defined eligible
uses. As of June 30, 2022, $6.7 million of the funds were spent.
County Defined Use Category Allocation Expenditures
➢ Public Health and Negative $30M $1.6M
Economic Impacts
➢ Water, Sewer, and Broadband $15M $0.3M
➢ Restoration of Government $10M $4.8M
Services
Total $55M $6.7M
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• Each year a 5-year Capital Improvement Program (CIP) is compiled. The CIP is a plan for short-range and
long-range capital acquisition and development. It also includes plans to improve or rehabilitate County-
owned roads and facilities. The plan provides the mechanism for estimating capital requirements; setting
priorities; monitoring and evaluating the progress of capital projects; and informing the public of projected
capital improvements and unfunded needs. While the CIP covers a five-year planning period, it is updated
each year to reflect ongoing changes as new projects are added, existing projects are modified, and
completed projects are removed from the plan document. The five-year CIP does not appropriate funds;
rather it serves as a budgeting tool, identifying those capital project appropriations to be made through the
adoption of the County's annual budget. The budgeted capital expenditures for FY 2022-23 decreased 16%
from the prior year and are approximately $6.9 million.
• In September 2018, Governor Jerry Brown signed Senate Bill 1090, a bipartisan bill that will provide $85
million in economic assistance to the community. The bill is an effort, in part, to lessen the effects of lost
tax revenue that will result from the closure of the Diablo Canyon Nuclear Power Plant. PG&E had planned
to close the plant by fiscal year 2024-25. However, Senate Bill 846, signed into law on September 2, 2022,
by Governor Newsom, will allow the plant to operate until 2030 pending renewal of the plant's operating
license by the Nuclear Regulatory Commission. The County will continue to receive its portion of annual
installment payments for the economic assistance through FY 2024-25 and the total payments will be used
for economic development ($4.0 million), safety ($4.5 million), affordable housing ($6.4 million),
infrastructure ($5.0 million), roads ($1.2 million), libraries ($2.0 million), and General Fund tax loss
mitigation ($12.1 million).
Relevant Financial Policies:
• Balanced Budget: The County Administrative Officer shall present a balanced budget for all County
operating funds on an annual basis.
• Ongoing Budget Administration: The County Administrative Officer shall submit Quarterly Financial Status
Reports to the Board of Supervisors. The reports shall provide expenditure and revenue projections and
identify and clarify projected variances along with recommendations and proposed corrective actions.
• Budget Priorities: The budget is an effort to allocate resources in an effective and efficient manner in order
to achieve the County's vision of a Safe, Healthy, Livable, Prosperous, and Well-Governed Community.
• Use of"One-Time"Funds: One-time revenue shall be dedicated for use for one-time expenditures. Annual
budgets will not be increased to the point that ongoing operating costs become overly reliant upon cyclical
or unreliable one-time revenues.
• Debt Policy: A comprehensive Debt Management Policy was developed by the Auditor-Controller and
approved by the Debt Advisory Committee. It was adopted by the Board of Supervisors on December 14,
2010.
• Cost Recovery through Fees: Utilize fees to recover costs where reasonable and after all cost savings
options have been explored.
• Pension Cost: Governor Brown implemented a Public Employee Pension Reform Act (PEPRA) which took
effect on January 1, 2013. In compliance with PEPRA the County established a Tier III retirement plan
that complies with or exceeds the requirements of the pension reform legislation. In addition, the County
and most labor units have adopted a 50/50 split of pension rate increases between the County and the
employees. As of December 31, 2021, approximately 59% of County employees fall under PEPRA.
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Major Initiatives
• COVID-19 local health emergency declaration was lifted on March 1, 2022. The County's efforts have
shifted from emergency response to on-going management, which includes Public Health clinics, mobile
clinics, community testing sites, Test to Treat sites and additional outreach. As of December 1, 2022,
66.3% of residents have received their primary series COVID-19 vaccines and 63.2% have received both
their primary series and booster shot.
• Administrative Office: Multiple public hearings were held to solicit ideas on how to adjust the district
boundaries for electing the Board of Supervisors for the next decade. A final redistricting map was selected,
and the newly adopted Board of Supervisor Districts are being phased in.
• Animal Services: After two years of construction,the San Luis Obispo County opened a new Animal Services
Facility. The new facility was a joint effort by the County and the seven incorporated cities. The total
budget for the project was approximately $20.3 million and was funded through a lease revenue bond
issuance.
• Behavioral Health and Public Health: A new Health Campus or ��One-Stop-Shop" has opened in North
County. It includes Mental Health, Drug and Alcohol services, and Public Health.
• In October 2022, the County Board of Supervisors approved the issuance of bonds by the SLO County
Financing Authority for an aggregate amount not to exceed $78.5 million. The bonds will be used to finance
the acquisition and construction of a co-located Sheriff and County Fire emergency dispatch facility, a new
Probation Department building, and rehabilitation of the Cayucos Veterans Memorial Hall. The Cayucos
Veterans Memorial rehabilitation project will also utilize $7 million in grants and donations.
Awards and Acknowledgments
Awards:
• The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence
in Financial Reporting to the County of San Luis Obispo for its Annual Comprehensive Financial Report for
the fiscal year ended June 30, 2021. This was the thirty-sixth consecutive year that the County has received
this prestigious award. In order to be awarded a Certificate of Achievement the County published an easily
readable and efficiently organized Annual Comprehensive Financial Report. This report satisfied both
Generally Accepted Accounting Principles and applicable legal requirements. A Certificate of Achievement
is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report
continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the
GFOA to determine its eligibility for another certificate.
• The Government Finance Officers Association presented the County with its Distinguished Budget
Presentation Award for its annual budget document for the fiscal year beginning July 1, 2021. In order to
receive this prestigious award, a governmental unit must publish a budget document that meets program
criteria as a policy document, as an operations guide, as a financial plan, and as a communications device.
• The County of San Luis Obispo earned the California State Controller's Award for Counties Financial
Transaction Reporting for the fiscal year ending June 30, 2021. This is the sixth consecutive year that the
County has earned this award which recognizes the County's professionalism in preparing an accurate and
timely report.
7
Acknowledgments:
The preparation of the Annual Comprehensive Financial Report would not have been possible without the efficient
and dedicated services of the staff of the Auditor-Controller-Treasurer-Tax Collector's Office. We would like to
acknowledge the special efforts of our Enterprise Financial System Operations Division and our independent
auditors, CliftonLarsonAllen LLP, for their assistance in the report preparation. We would also like to express our
appreciation to all County departments who assisted in this process and to the Board of Supervisors for its
leadership responsibility and unfailing support to ensure the continued general fiscal health and integrity of the
County.
Respectfully submitted,
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James W. Hamilton, CPA Wade Horton
Auditor-Controller-Treasurer-Tax Collector County Administrative Officer
8
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Governm a1t Finance Officers Association
Certificate of
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Presented to
County of San Luis O �ispo
California
For its Annual Com�ehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
��i�u�,e�w,. P• ���er�%��-C
Executive Director/CEO
9
COUNTY OF SAN LUIS OBISPO
LIST OF ELECTED AND APPOINTED OFFICIALS
JUNE 30, 2022
Elected Officials
Board of Supervisors
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Assessor .......................................................................................................................... Tom J. Bordonaro Jr.
Auditor-Controller-Treasurer-Tax Collector-Public Administrator............................................... James W. Hamilton
County Clerk-Recorder ................................................................................................................... Elaina Cano
DistrictAttorney .................................................................................................................................Dan Dow
Sheriff-Coroner .......................................................................................................................... Ian Parkinson
Appointed Officials
Agricultural Commissioner................................................................................................. Martin Settevendemie
Director of Airports................................................................................................................ Courtney Johnson
Behavioral Health Administrator....................................................................................................... Anne Robin
Central Services Director ....................................................................................................... Christopher Lopez
Chief Probation Officer ................................................................................................................. Robert Reyes
Director of Child Support Services................................................................................................. Natalie Walter
County Administrative Officer ....................................................................................................... Wade Horton
CountyCounsel ............................................................................................................................. Rita L. Neal
CountyFire Chief............................................................................................................................ Eddy Moore
Director of UC Cooperative Extension......................................................................................... Katherine Soule
Director of Groundwater Sustainability.......................................................................................... Blaine T. Reely
Health Agency Director ............................................................................................. Penny Borenstein- Interim
Human Resources Director................................................................................................. Tami Douglas-Schatz
Director of Information Technology................................................................................................... Daniel Milei
Library Director ............................................................................................................... Christopher Barnickel
Director of Parks and Recreation.......................................................................................................Nick Franco
Director of Planning and Building.................................................................................................... Trevor Keith
Public Health Officer .............................................................................................................. Penny Borenstein
Director of Public Works..................................................................................................................John Diodati
County Social Services Director ...................................................................................................... Devin Drake
Veterans'Services Officer.............................................................................................................. Morgan Boyd
10
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Citizens of San Luis Obispo County
Special Districts Governed by Boards,Commissions,and
the Board of Supervisors Committees
County Administrative Officer
Auditor-
A ricultural Child Su Controller-
g pport Airports Treasurer-Tax County
Commissioner Services Counsel
Public Health Collector-Public
Mental Health Drug Administrator*
&Alcohol Animal
Planning& �� Administretive
Building County Fire** Cooperetive Office Central Services
Extension
District Human
Public Works Social Services Library Assessor*
Attorney* Resources
Emergency Veter� � Parks& * Information
Services Servi Recreation Clerk-Recorder Technology
Probation
Sheriff-
Coroner*
Public
Defender**
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FINANCIAL SECTION
�( CliftonLarsonAllen LLP
. CLAconnect.com
/
INDEPENDENT AUDITORS' REPORT
To the Honorable Board of Supervisors
County of San Luis Obispo, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the discretely presented component unit, each major fund, and the aggregate remaining
fund information of the County of San Luis Obispo, California (County), as of and for the year ended
June 30, 2022, and the related notes to the financial statements, which collectively comprise the
County's basic financial statements as listed in the table of contents.
In our opinion, based on our audit and the report of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the discretely presented component unit, each major fund, and
the aggregate remaining fund information of the County, as of June 30, 2022, and the respective
changes in financial position, and where applicable, cash flows for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
We did not audit the financial statements of the San Luis Obispo County Pension Trust which represent
66 percent of the assets and 16 percent of the revenues of the aggregate remaining fund information
of the County as of June 30, 2022, and the respective changes in financial position thereof for the year
then ended. Those statements were audited by other auditors, whose report has been furnished to us,
and our opinion, insofar as it relates to the amounts included for the San Luis Obispo County Pension
Trust, is based solely on the report of the other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America (GAAS) and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditors' Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the County of San Luis Obispo
and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements
relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinions.
CLA�loba I.com/disclaimer
IZ
To the Honorable Board of Supervisors
County of San Luis Obispo, California
Emphasis of Matter
Change in Accounting Princip/e
As discussed in Note 1 to the financial statements, effective July 1, 2021, the County adopted a new
accounting guidance for leases. The guidance requires lessees to recognize a right-to-use asset and
corresponding lease liability and lessors to recognize a lease receivable and corresponding deferred
inflow of resources for all leases with lease terms greater than twelve months. Our opinions are not
modified in respect to this matter.
Responsibi/ities of Management for the Financia/Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are
conditions or events, considered in the aggregate, that raise substantial doubt about the County of San
Luis Obispo's ability to continue as a going concern for twelve months beyond the financial statement
date, including any currently known information that may raise substantial doubt shortly thereafter.
Auditors'Responsibi/ities for the Audit of the Financia/Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors' report
that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based
on the financial statements.
In performing an audit in accordance with GAAS and GovernmentAuditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the efFectiveness of County of San Luis Obispo's internal control. Accordingly, no
such opinion is expressed.
13
To the Honorable Board of Supervisors
County of San Luis Obispo, California
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the
aggregate, that raise substantial doubt about County of San Luis Obispo's ability to continue as
a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
Required Supp/ementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, schedule of the County's proportionate share of the San Luis
Obispo County's pension plan's net pension liability, schedule of the County's contributions to the San
Luis Obispo County's pension plan, other post-employment benefits (OPEB) plan schedule of changes
in the County's net OPEB liability and related ratios, other post-employment benefits (OPEB) plan
schedule of actuarially determined plan contributions and related ratios, and budgetary comparison
information for the General Fund be presented to supplement the basic financial statements. Such
information is the responsibility of management and, 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 financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We and other auditors have applied certain limited
procedures to the required supplementary information in accordance with GAAS, 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.
Supp/emeatary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the County of San Luis Obispo's basic financial statements. The combining and
individual fund statements and schedules are presented for purposes of additional analysis and are not
a required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. The 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 GAAS by us and other auditors. In our opinion, based
on our audit and the report of other auditors, the combining and individual fund statements and
schedules are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
14
To the Honorable Board of Supervisors
County of San Luis Obispo, California
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the introductory and statistical sections but does not include the basic financial
statements and our auditors' report thereon. Our opinions on the basic financial statements do not
cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated.
If, based on the work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by GovernmentAuditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 15,
2023, on our consideration of the County of San Luis Obispo's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is solely to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the County of San Luis Obispo's internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering County's internal control over financial
reporting and compliance.
LL�
CliftonLarsonAllen LLP
Roseville, California
January 15, 2023
15
MANAGEMENT'S DISCUSSION AND ANALYSIS
�
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COUNTY OF SAN LUIS OBISPO
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2022
As management of the County of San Luis Obispo (the County), we offer readers the County's financial statements,
this narrative overview and analysis of the financial activities of the County for the fiscal year ended June 30, 2022.
We encourage readers to consider the information presented here in conjunction with the transmittal letter at the
front of this report and the County's financial statements, which begin on page 35. All amounts, unless otherwise
indicated, are expressed in thousands of dollars.
FINANCIAL HIGHLIGHTS
❖ The assets and deferred outflows of the County exceeded its liabilities and deferred inflows at June 30, 2022,
by$1,538,375 (netposition). The majority of this amount, $1,513,846 is the net investment in capital assets,
while $98,489 is restricted for specific purposes (restricted net position). Unrestricted net position indicates
the portion of net position which may be used to meet the County's ongoing obligations to citizens and
creditors; however, the recording of the County's pension liability in accordance with GASB Statement No.
68 (GASB 68) and the County's OPEB liability in accordance with GASB Statement No. 75 (GASB 75) created
a negative unrestricted net position of$71,124 (Table A).
❖ The County's total net position increased by $78,129. The increase is the combination of a $55,688 increase
in governmental activities and a $22,441 increase in business-type activities (Table B).
❖ The $19.4 million increase in net investment in capital assets represents capital acquisitions during the year
reduced by depreciation and increased by retirement of long-term debt (Table A).
❖ As of June 30, 2022, the County's governmental activities reported combined ending net position of
$1,122,167 an increase of$55,688 in comparison with the prior year. Due to the recording of the long-term
pension and OPEB obligations, no amount of the governmental activities'net position is available for spending
at the County's discretion for current and future needs (unrestricted net position)(Table A).
❖ Business-type activities posted net program income of $18,033 before general revenues, contributions and
transfers from other funds, an increase of$11,968 when compared to net program income of$6,065 in the
prior year. The majority of the difference relates to federal aid the Airport Fund received for rehabilitation
of the runway and surrounding areas at the San Luis Obispo County Airport. Total federal aid for the runway's
rehabilitation was $12.3 million. In addition, total Fees, Fines, and Charges for Ser�ices increased $4.5
million, mostly due to increased passenger use of the SLO County Airport and increased user charges for the
Los Osos Wastewater Treatment Plant. Overall business-type expenses increased $1.9 million,or 3.2%, over
the prior year.
❖ At the end of the fiscal year, the entire $436,864 fund balance of the General Fund was either nonspendable
($6,655), restricted ($26,060), committed ($214,112) or assigned ($190,037).
❖ Consistent with prior years, the County prepaid its $75.8 million employer retirement contribution to the San
Luis Obispo County Pension Trust (Pension Trust) in July of 2022. This is a $5.7 million increase over the
prior year and the County will save an estimated $1.5 million by prepaying the employer retirement
contribution.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the County's basic financial statements. The
County's basic financial statements include four components: 1) government-wide financial statements, 2) fund
financial statements, 3) notes to the financial statements, and 4) required supplementary information. This report
also contains supplementary information and other information in addition to the basic financial statements.
16
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Government-wide financial statements
The Government-wide financialstatementsare designed to provide readers with a broad overview of the County's
finances, in a manner similar to a private-sector business.
The Statement of Net Position presents information on all of the County's assets, deferred outflows of resources,
liabilities and deferred inflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position of the County is improving
or deteriorating.
The Statement ofActivities presents information showing how the government's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this
statement for some items that will only result in cash flows in future fiscal periods(e.g., uncollected taxes and earned
but unused employee vacation balances).
Both of the government-wide financial statements distinguish functions of the County 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 cost through user fees and charges (Business-type Activities). The governmental
activities of the County include public protection, public ways and facilities, health and sanitation, public assistance,
education, recreation and cultural services, and general government. The main business-type activities of the County
include the airport,golf courses,flood control districts,the Nacimiento water project,the Los Osos wastewater project
and county services areas.
Blended component units are included in our basic financial statements and consist of legally separate entities for
which the County is financially accountable and that have substantially the same board as the County or provide
services entirely to the County. They include county service areas,flood control districts,waterworks districts, lighting
maintenance districts, and the San Luis Obispo County Public Facilities Corporation and SLO County Financing
Authority.
The County discretely presents the First 5 San Luis Obispo County component unit. The mission of First 5 is to
allocate funds from the California Children and Families Trust Fund and advocate for quality programs and services,
supporting children prenatal to age 5, to ensure that every child is healthy and ready to learn in school. First 5 does
not meet the requirements for blending, and therefore its financial activities are presented separately from the
Cou nty.
The government-wide financial statements can be found on pages 35 to 36 of this report.
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 County, 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 County can be
divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds - Governmental funds are used to account for essentially the same functions reported as
GovernmentalActivitiesin 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 the balances of spendable resources available at the end of the fiscal year. Such information may be
useful in evaluating a government's near-term financing requirements.
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
GovernmentalActivities 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.
17
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and
changes in fund balance provide a reconciliation to facilitate this comparison between Governmental Funds and
GovernmentalActivities .
The County maintains twenty-five individual governmental funds organized according to their type:general, special
revenue, debtservice, and capitalprojects . Information is presented separately in the governmental funds'balance
sheet and in the governmental funds' statement of revenues, expenditures, and changes in fund balances for the
General Fund, and the Capital Projects Fund, which are considered to be major funds. Data from the remaining
twenty-three governmental funds are combined into a single, aggregated presentation. Individual fund data for each
of the nonmajor governmental funds is provided in the form of combining statements found in the other
supplementary information section of this report.
A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with the
budget and can be located in the required supplementary section of the report. Individual budgetary data for each
of the nonmajor governmental funds is provided in the other supplementary information section of this report.
The basic governmental fund financial statements can be found on pages 38 to 41 of this report.
Proprietary Funds - The County maintains two different types of proprietary funds,enterprise and internal service
funds . Enterprise funds are used to report the same functions presented as Business-type Activities in the
government-wide financial statements. The County usesenterprise funds to account for the airport, golf course,
wastewater facility, flood control districts, waterworks districts and county service areas. Interna/service funds are
an accounting device used to accumulate and allocate costs internally among the County's various functions. The
County uses internal service funds to account for its vehicle operations and maintenance, public works services, other
post-employment benefits, and self-insurance programs. Because these services predominately benefit
governmental rather than business-type functions, they have been included within governmental activities in the
government-wide financial statements.
Proprietary funds provide the same type of information as thegovernment-wide financia/statements, only in more
detail. The Airport, Nacimiento Water Contract, State Water Project, and Los Osos Wastewater funds are considered
to be major funds of the County and are presented separately in theproprietaryfund�nancia/statements . All other
enterprise funds have been combined into a single column for presentation. The seven internal service funds are
combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data
for the internal service and enterprise funds is provided in the form of combining statements found in the other
supplementary information section of this report.
The basic proprietary fund financial statements can be found on pages 42 to 44 of this report.
Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the
government. Fiduciary funds arenot reflected in the government-wide financial statements because the resources
of those funds arenot available to support the County's own programs. The accounting used for fiduciary funds is
much like that used for proprietary funds.
The County also discretely presents theSan Luis Obispo County Pension Trust which is an independent trust that
administers the San Luis Obispo County Employees Retirement Plan on behalf of the County. TheSan Luis Obispo
County Pension Trust is a fiduciary component unit and presented in the Fiduciary Fund Financial Statements.
The basic fiduciary fund financial statements can be found on pages 45 to 46 of this report.
Notes to the Basic Financial Statements - The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
The notes to the basic financial statements can be found on pages 47 to 93 of this report.
Required Supplementary Information - The notes to the basic financial statements are followed by a section of
required supplementary information (RSI) that further explains and supports the information in the financial
statements.
is
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
The required supplementary information can be found on pages 94 to 101 of this report.
Other Supplementary Information - In addition to the basic financial statements, accompanying notes, and required
supplementary information, this report also presents certainothersupplementaryinformation including the County's
General Fund and special revenue funds budgetary schedules, and combining and individual fund statements and
schedules.
Combining and individual fund statements and schedules - The combining and individual fund statements and
schedules referred to earlier provide information for nonmajor governmental funds, nonmajor enterprise funds,
internal service funds, and fiduciary funds and are presented following the required supplementary
information. Combining and individual fund statements and schedules can be found on pages 102 to 108 and 129
to 144 of this report.
Budgetary comparison schedules - The budgetary comparison schedules (other than the General Fund which is
presented in the required supplementary information section) for the Capital Projects, Pension Obligation Bonds, San
Luis Obispo County Public Facilities Corporation, SLO County Financing Authority, and nonmajor Special Revenue
funds can be found on pages 112 to 128 of this report.
Detailbudgetaryschedules demonstrating legal level of compliance with budgetary control for the General Fund
are presented on pages 145 to 152 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As stated earlier, net position may serve over time as a useful indicator of a government's financial position. In the
case of the County, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources
by $1,538,375 as detailed in the table below:
Table A
Statement of Net Position
June 30, 2022
(in thousands)
June 30,2022 June 30,2021 2021-2022
Total Total
Govern- Business- Primary Govern- Business- Primary Total
mental Type Govern- mental Type Govern- %
Activities Activities ment Activities Activities ment Chg
Assets:
Current assets $ 800,870 $ 171,884 $ 972,754 $ 725,741 $ 167,177 $ 892,918 8.9%
Other noncurrent assets 6,637 26,757 33,394 22,230 10,499 32,729 2.0%
Capital assets 1,349,875 590,446 1,940,321 1,241,383 584,991 1,826,374 6.2%
Total assets 2,157,382 789,087 2,946,469 1,989,354 762,667 2,752,021 7.1%
Deferred Outflows of
Resources 144,216 4,614 148,830 114,546 4,450 118,996 25.1%
Liabilities:
Current liabilities 183,415 29,411 212,826 142,883 32,803 175,686 21.1%
Long-term liabilities 866,124 329,871 1,195,995 828,237 339,563 1,167,800 2.4%
Totalliabilities 1,049,539 359,282 1,408,821 971,120 372,366 1,343,486 4.9%
Deferred Inflows of Resources 129,892 18,211 148,103 66,301 984 62,285 120.1%
Net position:
Net investment in capital
assets 1,216,907 296,939 1,513,846 1,210,972 283,512 1,494,484 13%
Restricted 98,489 - 98,489 104,024 - 104,024 (53%)
Unrestricted (193,229) 119,269 (73,960) (248,517) 110,255 (138,262) (46.5%)
Total net position $ 1,122,167 $ 416,208 $ 1,538,375 $ 1,066,479 $ 393,767 $ 1,460,246 5.4%
19
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Analvsis of Net Position
The County's total net position increased by$78.1 million,or 5.4%. The total net position increase was a combination
of increased total assets ($194.4 million), increased deferred outflows of resources ($29.8 million), increased total
liabilities ($65.3 million), and increased deferred inflow of resources ($80.8 million). Causes for the changes in each
of these categories are detailed below.
The overall $194.4 million increase in total assets, or 7.1%, is primarily due to inflows of the governmental activities'
cash and restricted cash ($60.3 million), an increase in governmental activities' due from other governments ($5.2
million), recording of lease receivable ($17.3 million), and recording of right-to-use lease assets ($91.2 million).
Increased cash resulted from total governmental activities revenues exceeding total governmental expenditures by
$52.4 million. In accordance with GASB Statement No. 87 the County recorded a lease receivable and a right-to-use
lease asset. The lease receivable represents the future inflows the County expects to receive for agreements where
the County is the lessor(landlord). The right-to-use lease asset represents the future benefit the County expects to
receive for agreements where the County is the lessee (tenant). Additional information regarding changes in
revenues and expenses can be found after Table B— Statement of Activities.
The $29.8 million increase, or 25.1°/o, in deferred outflows of resources was primarily the combination of an increase
in deferred pension resources($37.2 million) and a decrease in deferred OPEB resources ($7.2 million). The changes
are due to differences in projected and actual earnings on plan investments from the prior year.
Total liabilities of the County increased $65.3 million, or 4.9%. The main contributors to the increase were a $21.8
million increase to unearned revenue and recording of $92.5 million in lease liabilities. The increase to unearned
revenues was due to the County receiving its 2�d installment of the American Rescue Plan Act (ARPA) award. In
total, the County received $55.0 million in ARPA awards and has spent $6.7 million on eligible expenditures. The
$92.5 million in lease liabilities were recorded in accordance with GASB Statement No. 87. Offsetting the increase to
unearned revenues and lease liability were decreases to the net pension liability and the net OPEB liability. Due to
higher returns on investments,the net pension liability decreased $34.8 million and the OPEB liability decreased $5.0
million.
Deferred inflows of resources increased $80.8 million, or 120.1%. The increase is due primarily to the higher than
expected returns on net investments for pension and OPEB investments.
Unrestricted net position indicates the portion of net position which may be used to meet the County's ongoing
obligations to citizens and creditors. The recording of the County's pension liability, per the requirements of GASB
68, and the recording of the County's OPEB liability per the requirements of GASB 75, caused the County's
unrestricted net position to remain negative indicating that the majority of the County's net position is invested in
capital assets or otherwise restricted for use.
The most significant portion of the County's net position is net investment of capital assets of $1,513,846. This
amount reflects investment in capital assets(e.g., land and easements, structures and improvements, infrastructure,
and equipment), less any outstanding related debt used to acquire those assets, and less any construction related
payables. The County uses these capital assets to provide services to citizens; consequently, these assets are not
available for future spending. Although the County'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.
The remaining $98,489, or 6.4%, of the balance of the County's net position represents resources that are subject
to external restrictions on how they may be used.
At the end of the current fiscal year, the County reported positive balances for business-type activities in all net
position categories.
In total, the County's net position increased $78.1 million. Total net position for governmental activities increased
$55.7 million and total net position for business-type activities increased $22.4 million due to normal operating
activities.
20
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Net Investment in Capital Assets for business-type and governmental activities increased a net of $19.4 million.
Business-type activities net investment increased $13.4 million primarily due to the Airport Fund completing
rehabilitation work on the runway at the San Luis Obispo County Airport and the State Water Project Fund increasing
water rights. Governmental activities net investment increased $5.9 million. The increase is related to the new Animal
Services Facility being substantially completed in FY 21-22 and roads projects including: work beginning on the Tefft
St/Hwy 101 Interchange Operational Improvement Project,early project phase work beginning to replace Jack Creek
Road Bridge in Templeton, and early project phase work beginning to replace the South Bay Bridge in Los Osos to
address seismic deficiencies.
Restricted net position represents net position of the County which is subject to constraints imposed by creditors,
grantors, contributors, laws, or regulations. Total restricted net position was $95.7 million, an 8.0% decrease over
the prior year. Of the decrease from the prior year, $2.4 million of it was the from the net difference between the
Genera/ Government, Public Protection, Health and Sanitation, Public Assistance, Public Ways and Facilities,
Recreation and Cu/tura/Services, and Education functions. This change was primarily attributable to variance in
purchase obligations, claims, contracts, and enabling legislation from the prior year. Debt Ser�ice decreased $6.0
million due to 2020 Lease Revenue Bonds Series A proceeds being used for the construction of the new Animal
Services Facility.
There was an increase of $67.1 million in Unrestricted net position reported in connection with the Total Primary
Government. This category represents the portion of the County's net position which is not subject to constraints
imposed by creditors, grantors, contributors, laws, or regulations. When positive, this amount may be used to meet
the County's general obligations.
The table on the next page indicates the changes in net position for governmental and business-type activities:
21
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Table B
Statement of Activities
For the Year Ended]une 30, 2022
(in thousands)
June 30,2022 June 30,2021 2021-2022
Govern- Business- Total Govern- Business- Total
mental Type Primary mental Type Total Primary %
Activities Activities Government Activities Activities Government Chg
Revenues:
Program revenues:
Charges for services $ 58,805 $ 58,252 $ 117,057 $ 60,886 $ 53,767 $ 114,653 2.1%
Operating grants and
contributions 325,854 5,846 331,700 285,082 7,709 292,791 133%
Capital grants and
contributions 12,449 15,106 27,555 16,859 3,884 20,743 32.8%
General revenues:
Propertytaxes 216,107 4,380 220,487 208,371 4,387 212,758 3.6%
Other taxes 41,804 - 41,804 34,440 - 34,440 21.4%
Interest and investment
income (16,312) (1,333) (17,645) 696 405 1,101 (1,702.6%)
Grants not restricted to
specific programs 9,001 - 9,001 41,157 - 41,157 (78.1%)
Other revenues 1,424 1,148 2,572 4,813 76 4,889 (47.4%)
Total revenues 649,132 83,399 732,531 652,304 70,228 722,532 1.4%
Expenses:
General government 54,592 - 54,592 55,612 - 55,612 (1.8%)
Public protection 204,993 - 204,993 204,861 - 204,861 0.1%
Public ways and facilities 35,995 - 35,995 36,017 - 36,017 (0.1%)
Health and sanitation 132,713 - 132,713 121,358 - 121,358 9.4%
Public assistance 132,751 - 132,751 134,476 - 134,476 (13%)
Education 11,930 - 11,930 14,213 - 14,213 (16.1%)
Recreation and cultural
services 12,310 - 12,310 10,497 - 10,497 173%
Interest on long-term
debt 7,947 - 7,947 9,645 - 9,645 (17.6%)
Airport - 11,366 11,366 - 9,146 9,146 243%
Golf - 4,231 4,231 - 3,869 3,869 9.4%
State Water Contract - 5,924 5,924 - 6,928 6,928 (14.5%)
Nacimiento Water
Contract - 13,889 13,889 - 14,816 14,816 (6.3%)
Lopez Flood Control - 6,941 6,941 - 7,087 7,087 (2.1%)
Lopez Park - - - - 1 1 (100.0%)
General Flood Control - 1,521 1,521 - 1,170 1,170 30.0%
County Service Areas - 5,636 5,636 - 4,697 4,697 20.0%
Los Osos Wastewater - 11,663 11,663 - 11,581 11,581 0.7%
Total expenses 593,231 61,171 654,402 586,679 59,295 645,974 1.3%
Excess/(deficiency)
before transfers 55,901 22,228 78,129 65,625 10,933 76,558 2.1%
Transfers (213) 213 - 282 (282) - -
Change in net position 55,688 22,441 78,129 65,907 10,651 76,558 2.1%
Net position-beginning
of year,restated 1,066,479 393,767 1,460,246 982,742 383,116 1,365,858 6.9%
Cumulative change of
effect in accounting
principal - - - 17,830 - 17,830 -
Net position-end of year $ 1,122,167 $ 416,208 $ 1,538,375 $ 1,066,479 $ 393,767 $ 1,460,246 5.4%
22
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Analvsis of Governmental and Business-type Activities
Governmental Activities
Governmental Activities increased the County's net position by$55.7 million compared to an increase of$83.7 million
in the prior year.
Overall, total revenues for governmental activities decreased $3.2 million, or 0.5%. Significant factors contributing
to the overall decrease in revenues from the prior year are detailed below:
❖ GrantsNotRestricted to SpecificProgramsdecreased by$32.2 million, or 78.1%,due to a decrease in federal
aid for COVID-19 response programs. In FY 2020-21, the County received $27.0 million from the CARES
Act, $8.4 million from the Emergency Rental Assistance Program (ERAP), and $3.6 million in FEMA
reimbursement for prior year expenditures.
❖ Operating Grants and Contributions increased by $40.8 million, or 14.3%. Significant increases in state aid
were received for various programs. Public safety programs received an increase of $5.5 million through
Prop 172 revenue, health and human services realignment aid increased $5.2 million, social services
realignment increased $2.1 million, and Mental Health Services Act revenues also increased $1.6 million. In
addition, the County also recognized $6.9 million in American Rescue Plan Act (ARPA) revenues for
expenditures occurred in FY 2021-22.
❖ Property Taxes rose $7.7 million, or 3.7% over the prior year, a function of the regular 2% increase in
assessed property value allowed by California's Proposition 13.
❖ Other Taxes increased by $7.4 million, or 21.4%, due to a $5.2 million increase in sales tax revenues and a
$2.2 million increase in transient occupancy taxes collected.
❖ InterestEarnings NotRestricted to Speci�cProgramsdecreased $17.0 million primarily due to a decrease in
the fair market value of investments. However, since the County Treasury holds investments until maturity
this loss will not be realized.
Overall, total expenses increased $6.6 million, or 1.1%. Notable factors contributing to the overall increase in
expenses from the prior year are detailed below:
❖ Health and Sanitation expenses increased $11.4 million, or 9.4% driven by a $8.6 million increase in
professional services, and a $4.2 million increase to community development programs.
❖ Education expenses decreased $2.3 million, or 16.1%, and Public Assistance expenses decreased $1.7
million, or 1.3%, due to a decrease in long-term pension related costs.
For FY 2021-22, the County was able to maintain its funding of General Fund contingencies at a level of 5%, while
still making investments in the many programs and services provided to the community.
Business-type Activities
Business-type activities increased the County's net position by$22.4 million compared to an increase of$10.7 million
in the previous year. Revenues exceeding expenses by $22.2 million, and a transfer of $213 thousand from
governmental activities resulted in the total increase to net position. Key elements of current year business-type
activity are as follows:
Total revenue increased $13.2 million, or 18.8% from the preceding year.
❖ Airport's Fees, Fines, and Charges for Services increased $3.2 million due to increased passenger travel
coming out of the pandemic. Airport parking fees collected increased $1.1 million and passenger facility
charges increased $526 thousand from the prior year. The Airport also received federal funding of $12.3
million for rehabilitation of the San Luis Obispo County Airport's runway. Similar to last year, the Airport
23
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
continues to receive CARES Act revenue issued by the Federal Aviation Administration to support airport's
loss of revenue experienced during the pandemic. The Airport received $5.8 million in CARES Act funding,
a $776 thousand increase over FY 2020-21.
❖ The County's golf course continued to see high demand with the addition of the TopTracer digital technology
at the Dairy Creek Golf Course driving players to the course. Overall, Golf's Fees, Fines, and Charges for
Services increased $467 thousand.
❖ Los Osos Wastewater's Fees, Fines, and Charges for Services increased $1.8 million due to an increase in
rates charged to users.
❖ Water sales revenue decreased $914 thousand, with the Nacimiento Water Contract having the largest
decrease, $757 thousand, over the prior year.
Expenses for business-type activities increased $1.9 million, or 3.2% from the prior year. Total Airport expenses
increased $2.2 million over the prior year. This increase was due to increased advertising, parking lot maintenance,
and depreciation costs at the San Luis Obispo County Airport.
FUND FINANCIAL STATEMENT ANALYSIS
FINANCIAL ANALYSIS OF THE COUNTY'S FUNDS
As noted earlier, the County uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental Funds
The focus of the County's governmenta/fundsis to provide information on near-term inflows, outflows, and balances
of spendable resources. Such information is beneficial in assessing the County's financing requirements. In
particular, total fund balance less the nonspendable portion may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.Total fund balance consists of the following components
(see footnote 11 for additional detail):
• Nonspendable fund ba/ance, $6,664, decreased by $3.2 million, 32.5% from the prior year. Nonspendable
fund balance represents amounts that are not spendable in form or are legally or contractually required to
be maintained intact, and includes (1) inventories of $118, (2) prepaid items of $586, and (3) long-term
receivables of $5,959. The decrease from the prior year primarily relates to the repayment of an advance
made from the General Fund to the County Service Area Enterprise Fund for the construction of a new water
storage tank in Cayucos.
• Restricted fund balance, $80,580, decreased $1.7 million, or 2.1%, from the prior year. Restricted fund
balance represents amounts that are subject to externally enforceable legal restrictions imposed by creditors,
grantors, contributors, laws, regulations, or enabling legislation. Significant components of this balance
include amounts restricted for(1)tax reduction reserves of$3,990 (2) public protection programs of$9,743,
(3) Mental Health Services Act funds of $2,774, (4) public facilities funds of $16,001, (5) traffic impact
programs of $11,508, (6) automation projects of $3,601, and (7) debt service of $22,652. The decrease
mostly relates to a decrease in amounts restricted for automation projects and debt service.
• Committed fund ba/ance, $310,735, increased $27.4 million, or 9.7%, from the prior year. Committed fund
balance represents amounts with constraints imposed by the Board of Supervisors for specified purposes.
Significant components of this balance include commitments for(1) flood control programs, $19,690, (2)tax
reduction reserve, $42,387, (3) automation projects, $19,805, (4) roads, $24,650, (5) building replacement,
$47,149, (6) solar plant mitigation, $15,640, (7) capital projects, $17,540, (8) SB 1090 economic
development, $12,763 and (9) COVID-19 services, $17,722. The increase is mostly attributable to building
24
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
replacement projects, roads maintenance and improvement projects, fire services and equipment, and
automation projects.
• Assigned fund ba/ance, $190,037, increased $16.5 million, or 9.5%, from the prior year. Assigned fund
balance represents amounts the County intends to use for specific purposes that are neither restricted nor
committed. Significant components of this balance include (1) behavioral health programs, $21,690, (2) tax
reduction reserve, $27,238, (3) general government, $14,704, (4) social services programs, $20,277, and
(5) subsequent fiscal year budget, $52,665. The largest changes in the assigned fund balance category were
increases to tax reductions reserves, public protection programs, public assistance programs, and behavioral
health programs.
As of the end of the current fiscal year, the County's governmental funds reported combined ending fund balance of
$588,016, an increase of 7.1%, or$39.0 million in comparison with the prior year. Approximately 85.2% of the total
fund balance, or $500,772, is available to meet the County's current and future needs.
General Fund
The General Fund is the chief operating fund of the County. As of the end of the current fiscal year, spendable fund
balance (restricted, committed, and assigned) of the General Fund was $430,209 while total fund balance reached
$436,864. As a measure of the General Fund's liquidity, it is useful to compare both total fund balance and spendable
fund balance to total fund expenditures of $567.7 million. Spendable fund balance represents 75.8% of the total
fund expenditures, while total fund balance represents 77.0% of the same amount, a 2.0% decrease from the prior
year. During the current fiscal year, the fund balance of the General Fund increased by $31.2 million.
The following provides an explanation for significant contributors to the change in the General Fund's fund balance.
❖ Total revenues exceeded total expenditures by $35.1 million, which was a $65.2 million decrease from
the prior year.
❖ General Fund revenues decreased $6.5 million, or 1.1% over the prior year. The change was the
combination of increased tax revenue, $13.9 million, and decreases to the use of money and property,
$12.6 million, and aid from other governments, $8.1 million. Increases to tax revenues was due to
increases in assessed property values, resulting in increased property tax revenue, and increases to
transient occupancy tax collected, $2.2 million, and sales and use taxes, $1.9 million. The decrease to
use of money and property revenue, $12.6 million, was due to the adjustment of investments to their
fair market value. The loss associated with the adjustment to fair market value will not be realized since
the County Treasury holds all investments to maturity. The decrease in governmental aid, $8.1 million,
is mostly the result of the County receiving prior year awards and allocations to address COVID-19.
❖ Total expenditures in the General Fund increased $58.8 million, or 11.5%, from the prior year. The
majority of the increase was in the Pub/ic Protection, $16.2 million, and Hea/th and Sanitation, $35.1
million, functions. Pub/ic Protection expenditures increased due to negotiated salary increases and
additional costs associated with the County's contract with Cal-Fire for fire protection services. Health
and Sanitation expenditures increased primarily due to Health Agency lease agreements being recorded
due to the implementation of GASB Statement No. 87 ($26.4 million). Public Health services also
increased $2.3 million and Behavioral Health services increased $5.4 million
Capital Projects
The Capital Projects Fund handles construction projects for the County's governmental funds. The fund ended the
fiscal year with a total fund balance of$18.3 million. Capital outlay expenditures exceeded revenues by$16.9 million
and net transfers totaled $16.3 million. The combination of these two factors resulted in a $687 thousand decrease
in fund balance for the current year. Funding for specific projects comes primarily from use of designations, public
facilities fees, issuance of long-term debt, and aid from other government agencies. The General Fund transferred
$5.8 million to the Capital Projects Fund for various capital projects including $3.7 million for renovations to the
Women's Jail and $229 thousand for construction of the Sheriff and County Fire co-located emergency dispatch
facility. The Public Facilities Corporation Debt Service Fund transferred in $9.1 million of debt proceeds to offset
25
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
construction costs for the new Animal Services Facility. Significant current year activities of the Capital Projects Fund
are discussed in the Capital Assets section under governmental activities.
Governmental Fund Revenues
Revenues for all governmental funds combined totaled $672.6 million in the current fiscal year, a decrease of
approximately 0.2%, or $1.7 million, from the prior fiscal year revenues of$674.3 million.
The following table presents the amount of revenues from various sources and also displays increases or decreases
from the prior year.
Table C
Revenues Classified by Source
Governmental Funds
Fund Financial Statements
For the Year Ended]une 30, 2022
(in thousands)
2021-2022 2020-2021 Increase/(Decrease)
Percent Percent Percent
Amount ofTotal Amount ofTotal Amount Change
Revenues by Source:
Taxes $ 261,163 38.6% $ 243,406 36.1% $ 14,424 7.3%
Licenses, Permits, and
Franchises 12,597 1.9% 12,522 1.9% 75 0.6%
Fines, Forfeitures, and
Penalties 4,304 0.6% 4,352 0.6% (48) (1.1%)
Use of Money and
Property (14,773) (2.2%) 1,084 0.2% (15,857) (1,462.8%)
Aid from Governmental
Agencies 350,382 51.8% 348,093 51.6% 2,289 0.7%
Charges for Current
Services 49,498 7.4% 51,694 7.7% (2,196) (4.2%)
Other Revenues 12,734 1.9% 13,104 1.9% (370) (2.8%)
Total $ 675,905 100.0% $ 674,255 100% $ 1,650 0.2%
The following provides an explanation of revenues by source that changed significantly over the prior year in the
governmental funds.
❖ Taxes increased $17.8 million, or 7.3% primarily due to the regular 2% increase in assessed property
value allowed by California's Proposition 13. Additionally, sales and use tax increased $5.2 million and
transient occupancy tax increased $2.2 million.
❖ Licenses, Permits, and Franchises increased slightly by$75 thousand, or 0.6%, over the prior year. Total
franchise fee revenue for cable, gas, garbage, and petroleum increased by $161 but these were offset
by decreased planning and building permits and fees revenues of $137. The remaining change was
associated with various departmental fee revenue.
❖ Use ofMoneyand Propertydecreased $15.9 million over the prior year. This decrease is primarily due
to a decrease in the fair market value of investments. However, since the County Treasury generally
hold investments until maturity this loss will not be realized.
26
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
❖ Aid from GovernmentalAgenciesincreased $2.3 million, or 0.7%. While the total amount of government
aid was similar to the prior year, the County received $25.5 million more in state aid but received $23.2
million less in federal aid. Increased state aid was primarily for mental and public health programs, social
services programs, and public safety programs. The decrease in federal aid was due to the County
recognizing $27.0 in CARES Act funding in the prior year.
❖ Charges forServicesdecreased $2.2 million, or 4.2%. Decreases to road impact fees, election services,
public defender reimbursement, and recording fees all contributed to the decrease.
Governmental Fund Expenditures
Expenditures for all governmental funds combined totaled $688.4 million in the current fiscal year an increase of
approximately 11.8%, or $70.3 million, from the prior fiscal year expenditures of$598.0 million.
The following table presents expenditures by function for Governmental Funds, as well as the increase or decrease
from the prior year.
Table D
Expenditures by Function Including Capital Outlay
Governmental Funds
Fund Financial Statements
For the Year Ended June 30, 2022
(in thousands)
2021-2022 2020-2021 Increase/(Decrease)
Percent Percent Percent
Amount ofTotal Amount ofTotal Amount Change
Expenditures by Function:
General Government $ 63,569 9.5% $ 64,686 10.8% $ (1,117) (1.7%)
Public Protection 212,388 31.6% 199,299 33.4% 13,089 6.6%
Public Ways and Facilities 39,124 5.9% 37,099 6.2% 2,025 5.5%
Health and Sanitation 157,490 23.6% 117,359 19.6% 40,131 34.2%
Public Assistance 133,275 19.9% 129,141 21.6% 4,1342 3.2%
Education 15,712 2.4% 13,368 2.2% 2,344 17.5%
Recreation and Cultural Services 12,420 1.9% 10,976 1.8% 1,444 13.2%
Principal payments 9,137 1.4% 5,289 0.9% 3,848 72.8%
Interest on Long-Term Debt 7,895 1.2% 7,030 1.2% 865 12.3%
Capital outlay 17,376 2.6% 13,795 2.3% 3,581 26.0%
Total $ 668,386 100% $ 598,042 100% $ 70,344 11.8%
The following provides an explanation of the expenditures by function that changed significantly over the prior year.
❖ Public Protection increased $13.1 million, or 6.6%, primarily due to salary and wage increases and
increased costs associated with the County's contract with Cal-Fire for fire protection services. An
additional $2.3 million in expenditures were also recorded for lease agreements. These lease agreements
began being recorded with the implementation of GASB Statement No. 87, Leases, in FY 2021-22.
❖ Public Ways and Faci/ities expenditures increased $2.0 million, or 5.5%. Expenditures primarily consist
of various road improvement projects including improving traffic congestion at the Tefft St and Highway
101 interchange.
❖ Health and Sanitation expenditures increased $40.1 million, or 34.2%. Of which, $26.4 million related
for Health Agency lease agreements being recorded due to the implementation of GASB Statement No.
27
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
87. Public Health services also increased $2.3 million and Behavioral Health services increased $5.4
million. Also, expenditures associated with pass-through grants from Housing and Urban (HUD)
entitlements increased $4.6 million.
❖ Recreation and Cu/turalServicesexpenditures increased $1.4 million, or 13.2%, due to increased park
maintenance and improvement costs, as well as professional services associated with the construction
of the new skate park in Nipomo.
❖ Capita/Out/ayexpenditures increased $3.6 million,or 26.0%. Nearly half of the FY 2021-22 expenditures
related to the construction of the new Animal Services Facility, a joint effort between the County and
participating cities.
Proprietary Funds
The County's proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail. The following table shows actual revenues, expenses, and results of operations for
the 2021-22 fiscal year.
Table E
Statement of Revenues, Expenses and Results of Operations
Proprietary Funds
Fund Financial Statements
For the Year Ended]une 30, 2022
(in thousands)
Nonmajor
Major Funds Funds Total
Nacimiento State Other
Water Water Los Osos Enterprise Total
Airport Contract Project Wastewater Funds Enterprise
Operating revenues $ 9,387 $ 17,279 $ 7,267 $ 7,139 $ 18,416 $ 59,488
Operating expenses 11,352 7,111 5,889 8,235 17,135 49,722
Operating income(loss) (1,965) 10,168 1,378 (1,096) 1,281 9,766
Non-operating revenues
(expenses),net 5,360 (6,617) 2,248 (3,540) 145 (2,404)
Net income(loss)before
contributions and
transfers 3,395 3,551 3,626 (4,636) 1,426 7,362
Contributions and
transfers,net 11,972 - 243 2,861 243 15,319
Change in net position $ 15,367 $ 3,551 $ 3,869 $ (1,775) $ 1,669 $ 22,681
All the enterprise funds are expected to continue to meet their ongoing cost of operations and to be able to maintain
sufficient reserves in the long-term.
❖ The Airport Fund reported an operating loss of $2.0 million, a $956 thousand decrease from the prior
year's operating loss of$2.9 million. Operating revenues increased by$3.2 million compared to the prior
year indicating strong demand for commercial passenger travel coming out of the COVID-19 pandemic.
28
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Total passenger enplanement activity increased 65% over the prior year. Net position increased by
$15.4 million compared to an increase in net position of $5.5 million in the prior year. Net position
increased as a result of federal revenues received for the runway rehabilitation project at the San Luis
Obispo County Airport. The project included crack sealing and slurry sealing of the entire runway,several
taxiways, and parking apron area.
❖ The Nacimiento Water Contract Fund realized operating income of $10.2 million, a $505 thousand
increase from the prior year's operating income of $9.7 million. The increase to operating income was
driven by decreased operating expenses. Operating expenses decreased $684 thousand due to prior
year professional services needed for repairs to the North Salinas River crossing. Overall net position
increased $3.6 million compared to an increase in net position of$3.0 million in the prior year.
❖ The State WaterProjectFundrealized operating income of$1.4 million, a $778 thousand increase from
the prior year's operating income of $600 thousand. While water sales decreased $624 thousand,
operating expenses also decreased $981 thousand. Overall, net position increased by$3.9 million,which
is an increase of$518 thousand over the prior year.
❖ The Los Osos Wastewater Fund reported an operating loss of $1.1 million, a decrease of $1.8 million
when compared to the prior year's operating loss of $2.9 million. The wastewater plant began full-
service operations in FY 2016-17. While operating expenses remained relatively similar to the prior year,
operating revenues increased $1.8 million due to user rate increases. Overall net position decreased
$1.8 million, which is $2.0 million less than the prior year's decrease to net position of$3.8 million.
GENERAL FUND BUDGETARY HIGHLIGHTS
The original budget for expenditures and transfers out increased by$103.2 million,or 16.7%,during the year, leading
to the final amended budget. This increase was funded by increases to both budgeted revenues and transfers-in
($74.1 million) and the uses of reserves and designations for the balance. Unanticipated revenues totaling $70.9
million in State, Federal, and Other Governmental Aid, $1.7 million in Other Revenue, $335 thousand in Interfund
Revenues, $890 thousand in Charges for Current Services, $18 thousand in Fines, Forfeitures, and Penalties, and
$263 thousand in Other Financing Sources financed the budget augmentations.
General Government function augmentations of$49.8 million consisted of$16.0 million in American Rescue Plan Act
(ARPA) augmentations, $17.9 million in augmentations toward capital projects and maintenance and upgrades to
County facilities, $4.3 million in augmentations in payments to other agencies, and the remaining augmentations
went to various General Fund departments for salaries and benefits and services and supplies. Public Protection
function augmentations of $13.4 million were primarily divided among Sheriff-Coroner program augmentations of
$4.9 million,County Fire which received $2.6 million in augmentations, Planning and Building program augmentations
of $2.2 million, Probation program augmentations $1.2 million, Emergency Services augmentations of $1.0 million,
Public Defender program augmentations of $598 thousand, Waste Management program augmentations of $346
thousand, and the remaining smaller augmentations were for the District Attorney, Probation, Animal Services, and
Agricultural Commissioner's programs. Health and Sanitation function augmentations of$16.4 million were divided
between Public Health program augmentations of$8.7 million and Behavioral Health program augmentations of$7.7
million. The$17.6 million increase in the Public Assistance function relates almost entirely to Social Services including
CaIWORKS assistance, law enforcement medical care and veteran services' programs. Recreation augmentations
totaling $3.4 million were primarily for Parks related capital projects. Public Ways and Facilities augmentations of
$2.5 million were primarily for $1.4 million of Groundwater Sustainability payments and $527 thousand for Special
District projects.
At the close of the fiscal year, actual General Fund expenditures were 80.5% of the current budget, while General
Fund revenues were realized at 91.7% of budget.
29
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
On June 30, 2022, the County had $1.9 billion invested in a broad range of capital assets, including land, buildings,
systems improvements, machinery and equipment, park facilities,golf courses,airport facilities, roads, bridges,dams,
and water and sewer lines(see Table F). This amount represents a net increase(including additions and deductions)
of$114.0 million, or 6.2%, from last year.
Table F
Capital Assets and Right-to-Use Lease Assets
]une 30, 2022
(in thousands)
Govern- Govern- Business- Business- Total Total
mental mental Type Type Capital Capital
Activities Activities Activities Activities Assets Assets Total
June 30, June 30, June 30, June 30, June 30, June 30, Percent
2021 2022 2021 2022 2021 2022 Change
Land $ 796,008 $ 796,039 $ 36,718 $ 36,718 $ 832,726 $ 832,757 0.0%
Water Rights - - 64,277 68,244 64,277 68,244 6.2%
Other Property
Non-Depreciable - - 1,968 1,968 1,968 1,968 -
Construction-in-
progress 45,188 67,532 3,470 3,489 48,658 71,021 46.0%
Structures&
Improvements 277,769 281,671 212,043 225,568 489,812 507,239 3.6%
Equipment 106,582 108,959 10,899 11,134 117,481 120,093 2.2%
Other Property
Depreciable 1,258 1,258 554 554 1,812 1,812 -
Infrastructure
Depreciable 447,306 457,561 385,248 385,272 832,554 842,833 1.2%
Right-to-Use Lease
Asset - 95,938 - 336 - 96,274 N/A
Subtotal 1,674,111 1,808,958 715,177 733,283 2,389,288 2,542,241 6.4%
Less Accumulated
Depreciation (432,728) (454,095) (130,186) (142,750) (562,914) (596,845) 6.0%
Less Accumulated
Amortization - (4,988) - (87) - (5,075) N/A
Total $ 1,241,383 $ 1,349,875 $ 584,991 $ 590,446 $ 1,826,374 $ 1,940,321 6.2%
The County implemented GASB Statement No. 87 and began reporting a right-to-use lease asset ($96.3 million) and
accumulated amortization. The assets represent the right-to-use underlying land, building, and equipment
agreements that the County has entered into as the lessee (tenant).
30
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Major additions and future commitments in capital assets - Governmental Activities
County Roads had the majority of additions in governmental activities with $14.4 million worth of assets.
Microsurfacing, overlay, and chip seal projects throughout the County comprised most of the road additions. Other
major roads projects include work continuing on the Tefft St/Hwy 101 Interchange Operational Improvement Project
($1.0 million), work continuing on widening of Los Berros Road in Nipomo to allow for the incorporation of bike lanes
($1.4 million), early project phase work beginning on the Avila Beach Dr/Hwy 101 Interchange Operational Impact
Project ($505 thousand), early project phase work beginning to replace Jack Creek Road Bridge in Templeton ($400
thousand), and early project phase work beginning to replace the South Bay Bridge in Los Osos to address seismic
deficiencies ($349 thousand). Other notable capital asset additions during FY 2021-22 include work on the new
Animal Services Facility ($9.1 million), construction beginning of the Nipomo Skate Park ($477 thousand), and $3.1
million of radio communications modernization. The Co-located dispatch project continued ($466 thousand) and
County Fire purchased 2 additional fire engines totaling $1.2 million.
Major additions and future commitments in capital assets - Business-type Activities
The Airport completed work on the runway rehabilitation and safety projects ($12.3 million). The project provided
a comprehensive upgrade to the San Luis Obispo County Regional Airport's main runway and taxiway connectors.
More detailed information about the County's capital assets is presented in Notes 4 and 5 in the financial statements.
Debt Administration
At the end of the current fiscal year, the County of San Luis Obispo had total notes, bonds, and leases payable of
$556.2 million. In July 2003, the County issued pension obligation bonds to refund the unfunded actuarial accrued
liability due to the Pension Trust. The balance remaining on the County's pension obligation bonds at the end of the
FY 2021-22 was $85.1 million. The pension obligation bonds debt service payments are funded by County payroll
benefits.
The remainder of the County's debt consists of$33.7 million in certificates of participation, which are repaid from a
variety of revenues; $86.2 million in state and other loans; $71.3 million in assessment bonds,of which, $71.0 related
to the Los Osos Wastewater Project; $157.8 million in revenue bonds which are repaid with water service revenue;
$92.5 million in lease agreements,and $23.0 million in lease revenue bonds for the construction of an animal services
facility and refunding on the 2008 Series A certificate of participation. General Obligation Bonds totaling $6.5 million
are backed by the full faith and credit of the County.
31
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
Table G
Outstanding Debt
June 30, 2022
(in thousands)
Govern- Business- Business-
Govern- mental Type Type
mental Activities Activities Activities Total Total Total
Activities June 30, June 30, June 30, June 30, June 30, Percent
lune 30,2021 2022 2021 2022 2021 2022 Change
Certificates of
Participation $ 11,891 $ 10,657 $ 10,377 $ 9,409 $ 22,268 $ 20,066 (9.9%)
Certificates of
Participation from
Direct Borrowings 8,347 8,163 2,818 5,455 11,165 13,618 22.0%
Pension Obligation
Bonds 89,825 85,112 - - 89,825 85,112 (5.2%)
State Notes from
Direct Borrowings 1,586 1,426 88,385 84,528 89,971 85,954 (4.5%)
Other Notes from
Direct Borrowings - - - 196 - 196 N/A
Lease Revenue
Bonds 23,807 23,032 - - 23,807 23,032 (3.3%)
Revenue Bonds - - 162,983 157,815 162,983 157,815 (3.2%)
General Obligation
Bonds - - 7,104 6,538 7,104 6,538 (8.0%)
Assessment Bonds 391 344 72,483 70,978 72,874 71,322 (2.1%)
Leases - 92,248 - 250 - 92,498 N/A
Total $ 135,847 $ 220,982 $ 344,150 $ 335,169 $ 479,997 $ 556,151 15.9%
The increase from the prior year for the County's certificates of participation, notes, bonds, and leases payable was
$76.2 million, or 15.9%. The majority of the increase was due to the County's implementation of GASB Statement
No. 87, which reported a lease liability of $92.5 million. Other significant adjustments include a decrease of $18.1
million of debt payments and an increase for by the issuance of$2.7 million of certificates of participation to finance
the commissioning of two new 210,000-gallon water storage tanks in Cayucos. The Airport also issued $196 thousand
through on-bill financing with PG&E to install energy efficient lighting fixtures. The lighting improvements will provide
an estimated long-term energy savings of$42 thousand annually. Detailed information on the issuance of debt and
change in accounting principle can be found in Notes 10 and 19.
State statutes limit the amount of general obligation debt a governmental entity may issue to 1.25% of its net
assessed valuation. The current debt limitation for the County is $803.2 million.
Other liabilities include compensated absences of $35.4 million for governmental activities and $485 thousand for
business-type activities; landfill post-closure costs of$8.2 million; and a self-insurance liability of$22.3 million. More
detailed information about the County's long-term debt and other long-term liabilities is presented in Note 10 to the
financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
❖ The County is committed to providing services with integrity, collaboration, professionalism,
accountability and responsiveness, and these values are reflected in the Fiscal Year 2021-22 budget.
32
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
❖ The County has received various COVID-19 funding awards to support specific programs and to address
issues related to the pandemic (including direct response). Significant awards and allocations include:
• $55.0 million in American Rescue Plan Act (ARPA) funds. Through June 30, 2022, $6.7 million has
been spent, with $4.8 million being used towards restoration of government services, $1.6 million
being used for public health and other negative economic impacts, and $300 thousand being used
for water, sewer, and broadband projects.
• $28.3 million in Coronavirus Relief Funds through the Coronavirus Aid, Relief, and Economic Security
(CARES) Act.
• $5.2 million of Federal Emergency Management Agency (FEMA) expense reimbursement from the
beginning of the pandemic through FY 2021-22.
❖ The Governor's FY 2022-23 January budget proposal continues to emphasize the homeless challenges
that the State is facing as well as housing for vulnerable populations. Also included in the State's budget
proposal includes funding for COVID-19 vaccination and booster shots and combating climate change.
The proposals include:
• Adds $2.0 billion for mental health housing and services and clearing encampments. Includes $1.3
billion in FY 2022-23 for Project Homekey and $1 billion of the Homeless Housing, Assistance and
Prevention grant program (HHAP).
• Proposes$2.0 billion over the next two years to expand access to housing for vulnerable populations
with complex behavioral health conditions and people living in encampments.
• Includes $2.7 billion to ramp up vaccines, boosters, statewide testing, and increased medical
personnel to meet potential surges.
• Includes$648 million to support firefighters and purchase additional helicopters and bulldozers, plus
an additional $1.2 billion for forest management and other practices. The budget includes an
additional $750 million for immediate drought response to aid residents, farmers, and wildfire
protection. The proposed budget also includes billions to invest in climate tech research and
development, clean cars, preparing Californians for career opportunities, and further readying the
state's infrastructure to withstand extreme weather.
• Includes the Governor's ��Real Public Safety Plan" to fight and prevent crime, including (1) $255
million in grants to local law enforcement and creating a new Smash and Grab Enforcement Unit to
combat organized retail crime and grants for impacted small businesses; (2) more prosecutors to
hold perpetrators accountable, ensuring District Attorneys are effectively and efficiently prosecuting
criminals, and creating a new statewide team of investigators and prosecutors; and (3) creating a
new statewide gun buyback program, holding the gun industry accountable, and intercepting drugs
at the border.
❖ The closure of Diablo Canyon Power Plant (Diablo Canyon) is expected to have significant ramifications
to the local community. The plant was originally expected to close in 2025, however, Senate Bill 846,
will allow the plant to operate until 2030, pending renewal of the plant's operating license by the Nuclear
Regulatory Commission. According to a 2013 study by the California Polytechnic State University in San
Luis Obispo, Diablo Canyon, one of the largest employers in the county, contributes approximately $1
billion annually to the local economy. In addition to unitary taxes from the value of the plant, the Counry
receives direct funding from PG&E for emergency preparedness and response activities. PG&E also
initiates a variety of expenditures including emergency equipment, infrastructure and training which
provide sales tax, as well as general economic benefits to the community. The reduction in unitary taxes
from Diablo Canyon will occur gradually as the assessed value of the plant declines leading up to the
closure. Total unitary tax revenue, inclusive of Diablo Canyon, is budgeted to decrease by approximately
$828 thousand in FY 2022-23, representing an 16% decrease compared to the FY 2021-22 budget. To
33
MANAGEMENT'S DISCUSSION AND ANALYSIS (continued)
lessen the effects, in part, of lost tax revenue associated with Diablo Canyon's closure Senate Bill 1090
was passed in September 2018 and approved the payment of $85 million by PG&E to the community.
The County began receiving payment of its $34.9 million portion in FY 2018-19 and will continue to
receive payments through FY 2024-25.
❖ Local economic indicators:
➢ Sales tax revenue for unincorporated areas was $18.8 million, $5.5 million greater than the
preceding year.
➢ County assessed property tax valuations increased from $62.2 million to $64.3 million, or 3.3%.
➢ Transient Occupancy Tax collections were $17.2 million, a 14.5% increase from FY 2020-21.
❖ The Board of Supervisors adopted the FY 2022-23 budget in June 2022, with a $128.9 million fund
balance in the General Fund, of which $52.7 million was appropriated to finance the current year's
expenditures including contingencies. $13.0 million was placed in general reserves, and $69.0 million
was earmarked for designations. The total General Fund budget for FY 2022-23 is $671.7 million, a
4.8% increase from the previous year. The County budget also includes community-wide results and
indicators as well as department goals and performance measures that gauge how departments are
meeting the needs of the community.
REQUESTS FOR INFORMATION
This financial report is designed to provide our citizens, taxpayers, customers, and investors and creditors with a
general overview of the County's finances and to show the County's accountability for the money it receives.
Questions concerning any of the information provided in this report or requests for additional financial information
should be addressed to the Office of the County Auditor-Controller-Treasurer-Tax Collector, Post Office Box 1149,
San Luis Obispo, California 93406-1149. This report is also available online at www.slocounty.ca.gov.
34
�
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BASIC FI NANCIAL STATE M E NTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS
�
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COUNTY OF SAN LUIS OBISPO
STATEMENT OF NET POSITION
JUNE 30, 2022 (IN THOUSANDS)
Primary Government Component Unit
Governmental Business-Type First 5
Adivities Activities Total San Luis Obispo
ASSETS
Current Assets:
Cash and cash equivalents $ 684,041 $ 75,682 $ 759,723 $ 9,282
Accounts receivable,net 11,547 3,850 15,397 -
Property taxes receivable 15,957 - 15,957 -
Other receivables 2,043 101,670 103,713 -
Due from other qovernments 53,956 751 54,707 157
Interest receivable 1 16 17 -
Leases receivable 909 738 1,647 -
Deposits with others 10 86 96 3
Internal balances 11,931 (11,931) - -
Inventories 730 46 776 -
Prepaid items 988 544 1,532 3
Loans receivable(net of allowance for uncollectibles) 18,757 432 19,189
Total Current Assets 800,870 171,884 972,754 9,445
Noncurrent Assets:
Restricted cash with fiscal aqent 5,472 10,352 15,824 -
Leases receivable 1,165 16,133 17,298 -
Prepaid insurance - 272 272 -
Capital Assets:
Nondepreciable 863,571 110,419 973,990 -
Depreciable,net 395,354 479,778 875,132 -
Lease assets,net 90,950 249 91,199 113
Total Noncurrent Assets 1,356,512 617,203 1,973,715 113
Total Assets 2,157,382 789,087 2,946,469 9,558
DEFERRED OUTFLOWS OF RESOURCES
Deferred pensions 129,813 1,351 131,164 79
Deferred OPEB 14,403 180 14,583 -
Deferred loss on refundinq 3,083 3,083
Total Deferred OutFlows of Resources 144,216 4,614 148,830 79
LIABILITIES
Current Liabilities:
Accounts payable 26,887 8,730 35,617 2
Salaries and benefits payable 20,231 256 20,487 -
Deposits from others 21,184 1,264 22,448 -
Accrued interest 4,800 4,316 9,116 -
Other current liabilities 1,863 - 1,863 -
Unearned revenue 62,177 2,492 64,669 -
Bonds and notes payable 12,436 12,003 24,439 -
Lease liability 4,094 86 4,180 32
Compensated absences 24,108 264 24,372 4
Landfill closure/postclosure costs 921 - 921 -
Self-insurance payable 4,714 4,714
Total Current Liabilities 183,415 29,411 212,826 38
Long-Term Liabilities:
Net pension liability 596,351 6,�04 602,555 15
Net OPEB liability 29,217 366 29,583 -
Bonds and notes payable 116,298 322,916 439,214 -
Lease liability 88,154 164 88,318 76
Compensated absences 11,307 221 11,528 15
Landfill closure/postclosure costs 7,251 - 7,251 -
Self-insurance payable 17,546 17,546
Total Long-Term Liabilities 866,124 329,871 1,195,995 106
Total Liabilities 1,049,539 359,282 1,408,821 144
DEFERRED INFLOWS OF RESOURCES
Deferred pensions 122,735 1,277 124,012 13
Deferred OPEB 5,128 64 5,192 -
Deferred bond refundinq - 304 304 -
Deferred amounts related to leases 2,029 16,566 18,595
Total Deferred Inflows of Resources 129,892 18,211 148,103 13
NET POSITION
Net investment in capital assets 1,216,907 296,939 1,513,846 6
Restricted for:
General government 12,298 - 12,298 -
Public protection 18,910 - 18,910 -
Health and sanitation 17,459 - 17,459 -
Public assistance 3,289 - 3,289 52
Public ways and facilities 28,378 - 28,378 -
Recreation and cultural services 899 - 899 -
Education 168 - 168 -
Debt service 17,088 - 17,088 -
Unrestricted (193,229) 119,269 (73,960) 9,422
Total Net Position $ 1,122,167 $ 416,208 $ 1,538,375 $ 9,480
The accompanying notes are an integral part of these financial statements.
35
COUNTY OF SAN LUIS OBISPO
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED ]UNE 30, 2022 (IN THOUSANDS)
Program Revenues
Fees, Fines, Operating Capital
and Charges Grants and Grants and
Functions/Programs Expenses for Services Contributions Contributions Total
Governmental activities:
General government $ 54,592 $ 14,414 $ 2,058 $ - $ 16,472
Public protection 204,993 23,648 76,907 43 100,598
Public ways and facilities 35,995 4,343 14,279 11,993 30,615
Health and sanitation 132,713 8,022 107,891 - 115,913
Public assistance 132,751 950 123,834 - 124,784
Education 11,930 1,315 374 - 1,689
Recreation and cultural services 12,310 6,113 511 413 7,037
Interest on long-term debt 7,947 - - - -
Total governmental activities 593,231 58,805 325,854 12,449 397,108
Business-type activities:
Airport 11,366 9,314 5,823 12,259 27,396
Golf 4,231 4,843 - - 4,843
State Water Contract 5,924 6,846 14 - 6,860
Nacimiento Water Contract 13,889 16,696 - - 16,696
Lopez Flood Control 6,941 7,451 6 - 7,457
Lopez Park - - - - -
General Flood Control-Salinas Dam 1,521 1,Z34 - - 1,234
County Service Areas 5,636 4,739 3 - 4,742
Los Osos Wastewater 11,663 7,129 - 2,847 9,976
Total business-type activities 61,171 58,252 5,846 15,106 79,204
Total primary government $ 654,402 $ 117,057 $ 331,700 $ 27,555 $ 476,312
Component unit:
First 5 San Luis Obispo $ 1,521 $ - $ 1,860 $ - $ 1,860
The accompanying notes are an integral part of these financial statements.
36
COUNTY OF SAN LUIS OBISPO
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED ]UNE 30, 2022 (IN THOUSANDS)
Net(Expense) Revenue
and Changes in Net Position
Governmental Business-Type Component Unit
Functions/Programs Activities Activities Total First 5
Governmental activities:
General government $ (38,120) $ - $ (38,120)
Public protection (104,395) - (104,395)
Public ways and facilities (5,380) - (5,380)
Health and sanitation (16,800) - (16,800)
Public assistance (7,967) - (7,967)
Education (10,241) - (10,241)
Recreation and cultural services (5,273) - (5,273)
Interest on long-term debt (7,947) - (7,947)
Total governmental activities (196,123) - (196,123)
Business-type activities:
Airport - 16,030 16,030
Golf - 612 612
State Water Contract - 936 936
Nacimiento Water Contract - 2,807 2,807
Lopez Flood Control - 516 516
Lopez Park - - -
General Flood Control - (287) (287)
County Service Areas - (894) (894)
Los Osos Wastewater - (1,687) (1,687)
Total business-type activities - 18,033 18,033
Total primary government $ (196,123) $ 18,033 $ (178,090)
Component unit:
First 5 San Luis Obispo $ 339
General Revenues:
Taxes:
Property taxes 216,107 4,380 220,487 -
Sales and use taxes 18,841 - 18,841 -
Transient occupancy taxes 17,152 - 17,152 -
Transfertax 4,456 - 4,456 -
Other taxes 1,355 - 1,355 -
Grants not restricted to specific programs 9,001 - 9,001 -
Interest earnings not restricted to specific programs (16,312) (1,333) (17,645) (206)
Other revenues 1,424 1,148 2,572 -
Transfers (213) 213 - -
Total General Revenues and Transfers 251,811 4,408 256,219 (206)
Change in net position 55,688 22,441 78,129 133
Net position - beginning of year 1,066,479 393,767 1,460,246 9,347
Net position -end of year $ 1,122,167 $ 416,208 $ 1,538,375 $ 9,480
37
�
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BASIC FI NANCIAL STATE M E NTS
FUND FINANCIAL STATEMENTS
�
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COUNTY OF SAN LUIS OBISPO
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2022 (IN THOUSANDS)
Nonmajor Total
General Capital Projects Governmental Governmental
Fund Fund Funds Funds
ASSETS
Cash and cash equivalents $ 512,680 $ 18,226 $ 111,245 $ 642,151
Restricted cash with fiscal agent - 764 4,708 5,472
Accounts receivable, net 11,224 - 301 11,525
Accrued properry taxes receivable 15,957 - - 15,957
Other receivables 1,993 - 50 2,043
Due from other governments 46,700 1,761 5,495 53,956
Interest receivable 1 - - 1
Due from other funds - 1,541 400 1,941
Inventories 118 - - 118
Leases receivable 1,922 - 152 2,074
Loans receivable, net of allowance for uncollectibles - - 18,757 18,757
Advances to other funds 5,959 - 2,138 8,097
Prepaid items 578 166 9 753
Otherassets - - 10 10
Total assets $ 597,132 $ 22,458 $ 143,265 $ 762,855
LIABILITIES
Accounts payable $ 21,275 $ 1,947 $ 2,497 $ 25,719
Salaries and benefits payable 18,020 - 484 18,504
Due to other funds - - 1,541 1,541
Deposits from others 12,655 - 2,979 15,634
Unearned revenue 61,849 261 67 62,177
Other current liabilities 1,863 - - 1,863
Advances from other funds - 200 287 487
Totalliabilities 115,662 2,408 7,855 125,925
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 42,725 1,745 2,415 46,885
Deferred amounts related to leases 1,881 - 148 2,029
Total deferred inflows of resources 44,606 1,745 2,563 48,914
FUND BALANCES
Nonspendable 6,655 - 9 6,664
Restricted 26,060 765 53,755 80,580
Committed 214,112 17,540 79,083 310,735
Assigned 190,037 - - 190,037
Unassigned - - - -
Total fund balances 436,864 18,305 132,847 588,016
Total liabilities,deferred inflows of
resources,and fund balances $ 597,132 $ 22,458 $ 143,265 $ 762,855
The accompanying notes are an integral part of these financial statements.
38
COUNTY OF SAN LUIS OBISPO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED 7UNE 30, 2022 (IN THOUSANDS)
Total Fund Balances-Total Governmental Funds $ 588,016
Amounts reported for Governmental Activities in the Statement of Net Position were different
because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported in governmental funds. 1,245,467
Lease assets used in governmental activities are not financial resources and therefore are not
reported in governmental funds. 90,062
Accrued property tax and grant revenues are not available to pay for current-period
expenditures and,therefore, are deferred in the funds. 46,885
Internal service funds are used by the County to charge the costs of vehicle fleet management,
comprehensive public works services, and operations of the County's workers' compensation,
protected self-insurance, unemployment, and dental insurance programs to individual funds.
The assets and liabilities are included in governmental activities in the Statement of Net Position.
(30,498)
Adjustments for internal service funds are necessary to "close" those funds by charging
additional amounts to participating business-type activities to completely cover the internal
service funds' costs for the year. 3,921
Interest on long-term debt is recognized as it accrues, regardless of when it is due. (4,799)
The pension liability of governmental funds is not due and payable in the current period, and
therefore is not reported in the fund financial statements. (544,640)
The other post-employment benefit(OPEB) of governmental funds is not due and payable in the
current period,and therefore is not reported in the fund financial statements. (26,514)
The unamortized portion of changes to the net pension liability,the net difference between
projected and actual earnings on pension plan investments, and contributions subsequent to the
pension liability measurement date are not reported in the fund financial statements for
governmental funds. 6,464
The unamortized portion of changes to the net other post-employment benefit(OPEB) liability,
the net difference between projected and actual earnings on OPEB investments, and
contributions subsequent to the OPEB liability measurement date are not reported in the fund
financial statements for governmental funds. 8,417
Long-term liabilities, including bonds and notes payable, are not due and payable in the current
period and, therefore, are not reported in the governmental funds as follows:
Certificates of participation (18,820)
Bonds and notes payable (109,914)
Leases payable (91,344)
Compensated absences (32,364)
Landfill closure/postclosure costs (8,172) (260,614)
Net Position of Governmental Activities $ 1,122,167
The accompanying notes are an integral part of these financial statements.
39
COUNTY OF SAN LUIS OBISPO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED 7UNE 30, 2022 (IN THOUSANDS)
Nonmajor Total
General Capital Projects Governmental Governmental
Fund Fund Funds Funds
REVENUES
Taxes $ 242,960 $ - $ 18,203 $ 261,163
Licenses, permits, and franchises 12,597 - - 12,597
Fines,forfeitures,and penalties 3,348 358 598 4,304
Use of money and property (11,579) (448) (2,746) (14,773)
Aid from other governments 312,215 398 37,769 350,382
Chargesforservices 35,954 134 13,410 49,498
Otherrevenues 10,594 - 2,140 12,734
Total revenues 606,089 442 69,374 675,905
EXPENDITURES
Current:
General government 63,569 - - 63,569
Public protection Z07,767 - 4,6Z1 212,388
Public ways and facilities 3,660 - 35,464 39,124
Health and sanitation 150,030 - 7,460 157,490
Public assistance 132,712 - 563 133,275
Education 519 - 15,193 15,712
Recreation and cultural services 5,260 - 7,160 12,420
Debt service:
Principal payments 3,702 - 5,435 9,137
Interest and fiscal charges 463 - 7,432 7,895
Capital outlay - 17,376 - 17,376
Total expenditures 567,682 17,376 83,328 668,386
Excess(deficiency)of revenues
over(under)expenditures 38,407 (16,934) (13,954) 7,519
OTHER FINANCING SOURCES(USES)
Leases Z8,696 - 2,254 30,950
Transfers in 811 16,247 28,544 45,602
Transfers out (33,350) - (11,753) (45,103)
Totalotherfinancing sources(uses) (3,843) 16,247 19,045 31,449
Net change in fund balances 34,564 (687) 5,091 38,968
Fund balances-beginning 402,300 18,992 127,756 549,048
Fund balances-ending $ 436,864 $ 18,305 $ 132,847 $ 588,016
The accompanying notes are an integral part of these financial statements.
40
COUNTY OF SAN LUIS OBISPO
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE
GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED )UNE 30, 2022 (IN THOUSANDS)
Net Change in Fund Balances-Total Governmental Funds $ 35,635
Amounts reported for governmental activities in the Statement of Revenues,Expenditures,and
Changes in Fund Balances were different because:
Property tax, intergovernmental revenue and other revenue in the Statement of Activities that do
not provide current financial resources are not reported as revenues in the funds. (9,137)
Governmental funds report capital outlay as expenditures. These expenditures have no effect on
net position. Capital outlay expenditures that have no effect on net position are reported in the
following functional categories:
Capital outlay $ 16,920
General government 4,763
Public protection 2,210
Public ways 14,383
Health and sanitation 813
Public assistance 38
Education 86
Recreation and cultural services 594 39,807
Governmental funds report new leases as expenditures. These expenditures have no effect on net
position. 30,950
In the Statement of Activities,the cost of capital assets is allocated over their estimated useful lives
and reported as depreciation expense. (22,343)
In the Statement of Activities,the cost of right to use lease assets is allocated over their estimated
useful lives and reported as amortization expense. (4,862)
The net effect of various miscellaneous transactions involving capital assets (i.e., sales,trade-ins,
and donations)is to decrease net position. (157)
Debt proceeds and new leases are reported as financing sources in governmental funds and thus
contribute to the change in fund balance. In the Statement of Net Position, however, issuing debt
increases long-term liabilities and does not affect the Statement of Activities. Similarly, repayment
of principal is an expenditure in the governmental funds, but reduces the liability in the Statement
of Net Position.
Debt principal payments 5,691
Lease payments 3,580
Leaseissuance (30,950)
Some expenses reported in the Government-Wide Statement of Activities do not require the use of
current financial resources. Therefore, they are not reported as expenditures in governmental
funds:
Change in compensated absences $ 2,041
Change in accrued interest payable (453)
Change in landfill closure/postclosure costs (927)
Change in net OPEB liability 4,498
Change in deferred OPEB outflows (6,460)
Change in deferred OPEB inflows (3,154)
Change in Net Pension Liability 31,234
Change in deferred pension outflows 33,673
Change in deferred pension inflows (53,102)
Change in capital appreciation bond accretion 1,148
Amortization of debt premiums,discounts and issuance costs 274 8,772
Internal service funds were used by the County to charge the costs of vehicle fleet management,
comprehensive public works services, and operations of the County's workers' compensation,
protected self-insurance, unemployment, and dental insurance programs to individual funds. The
net revenue or expenditure effect of internal service funds is reported with governmental activities.
(4,871)
The net(revenue)expense allocable to business-type activities 240
Change in Net Position of Governmental Activities $ 52,355
The accompanying notes are an integral part of these financial statements.
41
COUNTY OF SAN LUIS OBISPO
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022 (IN THOUSANDS)
Business-Type Activities-Enterprise Funds Governmental
Nacimiento Nonmaior Total Activities
Water State Water Los Osos Enterprise Enterprise Internal
Airoort Contract Proiect Wastewater Funds Funds Service Funds
ASSETS
Current assets:
Cash andinvestments $ 23,130 $ 12,371 $ 13,219 $ 6,377 $ 20,585 $ 75,682 $ 41,890
Accounts receivable,net - 334 3,087 - 429 3,850 22
Otherreceivables 403 - - 101,267 - 101,670 -
Due from other governments 751 - - - - 751 -
Interest receivable 16 - - - - 16 -
Leases receivable 664 - - - 74 738 -
Deposits with others - - - - 86 86 -
Inventories - - - - 46 46 612
Loans receivable - - - 432 - 432 -
Prepaid items 544 544 235
Totalcurrentassets 24,964 12,705 16,306 108,076 21,764 183,815 42,759
Noncurrent assets:
Restricted cash with fiscal agent - 9,864 - - 488 10,352 -
Leases receivable 16,046 - - - 87 16,133 -
Advancesto otherfunds - - - - 40 40 -
Prepaid insurance - 272 - - - 272 -
Capital assets:
Nondepreciable:
Land Z4,030 3,259 - 5,406 4,022 36,717 -
Construction in progress 2,429 - - 28 1,033 3,490 -
Water rights - 68,244 - 68,244 -
Other properry - - - - 1,968 1,968 -
Depreciable:
Infrastructure,net 369 141,806 - 161,273 21,492 324,940 -
Structures and improvements,net 85,492 8,386 5,269 679 48,745 148,574 335
Equipment,net 4,653 5 2 80 1,028 5,768 13,123
Other property,net - - - - 496 496 -
Lease assets,net 68 181 249 888
Totalnoncurrentassets 133,087 163,592 73,515 167,466 79,583 617,243 14,346
Totalassets 155,051 176,297 89,821 275,542 101,347 501,058 57,105
DEFERRED OUTFLOWS OF RESOURCES
Deferred pensions 770 - - - 581 1,351 11,256
Deferred OPEB 110 - - - 70 180 1,333
Deferred loss on refunding 3,083 3,083
Total deferred outflows of resources 880 3,083 651 4,614 12,589
LIABILITIES
Current liabilities:
Accounts payable S17 566 6,757 97 493 8,730 1,168
Salaries and benefts payable 140 - - - 116 256 1,727
Interest payable 1 2,314 - 1,677 324 4,316 1
Self-insurance payable - - - - - - 4,714
Deposits from others 80 649 48 6 481 1,264 5,550
Unearned revenue 77 - 2,396 - 19 2,492 -
Due to otherfunds - - - - 400 400 -
Accrued vacation and sick leave-current 139 - - - 125 264 2,358
Lease liability-current 10 - - - 76 86 112
Notes and bonds payable-current 21 4,990 3,804 3,188 12,003
Total current liabilities 1,285 8,519 9,201 5,584 5,222 29,811 15,630
Noncurrent liabilities:
Self-insurance IiabilitY - - - - - - 17,546
Advancesfrom otherfunds 5,372 - - 1,755 523 7,650 -
Accrued vacation and sick leave 105 - - - 116 221 693
Lease liability 58 - - - 106 164 792
Notes and bonds payable 175 152,824 - 139,650 30,267 322,916 -
Net OPEB Liability 224 - - - 142 366 2,703
Net Pension Liability 3,536 2,668 6,204 51,711
Total noncurrent liabilities 9,470 152,824 141,405 33,822 337,521 73,445
Total liabilities 10,755 161,343 9,201 146,989 39,044 367,332 89,075
DEFERRED INFLOWS OF RESOURCES
Deferred pensions 728 - - - 549 1,277 10,642
Deferred OPEB 39 - - - 25 64 475
Bond refunding - 304 - - - 304 -
Deferred amounts related to leases 16,405 161 16,566
Total deferred inflows of resources 17,172 304 735 18,211 11,117
NET POSITION
Netinvestmentin capitalassets 116,164 8,285 73,515 53,609 45,366 296,939 13,429
Unrestrided 14.840 9.448 7.105 74 944 16.853 123.190 (43.9271
Totalnet position $ 131,004 $ 17,733 $ 80,620 $ 128,553 $ 62,219 420,129 $ (30,498)
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (3,921)
Net Position of Business-Type Activities per Government-Wide Financial Statements $ 416,208
The accompanying notes are an integral part of these financial statements.
42
COUNTY OF SAN LUIS OBISPO
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED )UNE 30, 2022 (IN THOUSANDS)
Business-Type Activities-Enterprise Funds Governmental
Nacimiento Nonmajor Total Activities
Water State Water Los Osos Enterprise Enterprise Internal
Airport Contract Project Wastewater Funds Funds Service Funds
OPERATING REVENUES:
Charges for services $ 9,347 $ 16,696 $ 6,846 $ 7,129 $ 18,322 $ 58,340 $ 61,460
Otherrevenues 40 583 421 10 94 1,148 81
Total operating revenues 9,387 17,279 7,267 7,139 18,416 59,488 61,541
OPERATING EXPENSES:
Salaries and benefits 2,595 - - - 2,029 4,624 32,534
Services and supplies 3,722 4,824 5,570 3,771 12,230 30,117 22,653
Other charges 31 - - - 3 34 -
Insurance benefit payments - - - - - - 6,386
Depreciation 4,767 2,222 204 4,387 2,516 14,096 2,776
Amortization 11 - - - 76 87 125
Countywide cost allocation 226 65 115 77 281 764 511
Total operating expenses 11,352 7,111 5,889 8,235 17,135 49,722 64,985
Operating income(loss) (1,965) 10,168 1,378 (1,096) 1,281 9,766 (3,444)
NONOPERATING REVENUES(EXPENSES]:
Property taxes - - 2,559 - 1,821 4,380 -
Investmentincome(expense) (462) 122 (325) (153) (515) (1,333) (1,060)
Interest expense (1) (6,739) - (3,387) (1,162) (11,289) (7)
Sale of capital assets - - - - (8) (8) 352
Aid from governmental agencies 5,823 - 14 - 9 5,846 -
Total nonoperating revenues(expenses) 5,360 (6,617) 2,248 (3,540) 145 (2,404) (715)
Income(loss)before contributions
and transfers 3,395 3,551 3,626 (4,636) 1,426 7,362 (4,159)
Capital contributions 12,259 - - 2,847 - 15,106 -
Transfers in - - 243 31 320 594 509
Transfers out (287) - - (17) (77) (381) (1,221)
Change in net position 15,367 3,551 3,869 (1,775) 1,669 22,681 (4,871)
Net position-beginning 115,637 14,182 76,751 130,328 60,550 (25,627)
Net position-ending $ 131,004 $ 17,733 $ 80,620 $ 128,553 $ 62,219 $ (30,498)
Adjustment to reFlect the consolidation of internal service fund activities related to enterprise funds (240)
Change in Net Position of Business-Type Activities per Government-Wide Financial Statements $ 22,441
The accompanying notes are an integral part of these financial statements.
43
COUNTY OF SAN LUIS OBISPO
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2022 (IN THOUSANDS)
Business-Type Activities-Enterprise Funds Governmental
Nacimiento Nonmajor Total Activities
Water State Water Los Osos Enterprise Enterprise Internal
AirpOrt Contract Project Wastewater Funds Funds Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and third parties $ 8,662 $ 13,227 $ 6,672 $ 7,139 $ 18,315 $ 54,015 $ -
Receipts from interfund billings - 584 - - - 584 61,542
Paymentsfor goods and services (3,925) (5,240) (5,681) (3,826) (12,311) (30,983) (14,430)
Payments to employees for services (2,385) - - - (2,023) (4,408) (35,709)
Paymentsforinsurance benefts - - - - - - (5,144)
Payments for premiums (6,012)
Net cash provided(used)by operating activities 2,352 8,571 991 3,313 3,981 19,208 247
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Properry tax proceeds - - 2,559 - 1,821 4,380 -
Grants and subsidies from other governmental agencies 6,741 - 14 - 10 6,765 -
Advances from otherfunds - - - - (2,665) (2,665) -
Due from other funds - - - - - - -
Transfers from other funds - - 243 31 320 594 509
Transfers to otherfunds (287) (17) (77) (381) (1,221)
Net cash provided(used)by noncapiWl financing activities 6,454 2,816 14 (591) 8,693 (712)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Purchases and construction of capitalassets (14,101) - (3,966) (52) (591) (18,710) (2,997)
Proceeds from sale of capital assets - - - - - - 352
Advances from otherfunds (134) - - (537) - (671) -
Capital contributions 12,259 - - 5,214 - 17,473 -
Proceeds from issuance of long-term debt - - - - 2,691 2,691 -
Principal paid on capital debt - (4,581) - (4,022) (3,003) (11,606) -
Interest paid on capital debt p,228) (3,168) (1,237) (11,633) (7)
Net cash provided(used)by capital
and related financing activities (1,976) (11,809) (3,966) (2,565) (2,140) (22,456) (2,652)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interestreceived (462) 122 (325) (153) (514) (1,332) (1,060)
Net cash provided(used)by investing activities (462) 122 (325) (153) (514) (1,332) (1,060)
Net increase(decrease)in cash and cash equivalents 6,368 (3,116) (484) 609 736 4,113 (4,177)
CASH AND CASH EQUIVALENTS:
Beginning of year 16,762 25,351 13,703 5,768 20,337 81,921 46,067
End of year $ 23,130 S 22.235 $ 13.219 $ 6.377 $ 21.073 $ 86.034 $ 41.890
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES:
Operating income(loss) $ (1,965) $ 10,168 $ 1,378 $ (1,096) $ 1,281 $ 9,766 $ (3,444)
Adjustments to reconcile operating inmme Qoss)to
net cash provided(used)by operating activities:
Depreciation and amortization expense 4,778 2,222 204 4,387 2,592 14,183 2,901
Changes in assets,deferred outflows of resources,liabilities,
and deferred inflows of resources:
(Increase)decrease in:
Receivables,net (758) (332) (122) - (94) (1,306) 1
Inventory - - - - (26) (26) 5
Prepaid items - - - - 118 118 (234)
Deferred outflows-pension (254) - - - (171) (425) (3,115)
Deferred outFlows-OPEB 51 - - - 30 81 658
Leases (11) - - - (76) (87) (125)
Increase(decrease)in:
Accounts payable 64 (406) (997) 21 174 (1,144) 782
Deposits from others 1 54 - 1 29 85 62
Salaries and benefits payable 14 - - - (9) 5 184
Deferred inflows-pension 369 - - - 263 632 4,985
Deferred inflows-OPEB 27 - - - 17 44 322
Net OPEB liabiliry (32) - - - (16) (48) (457)
Net pension liability 35 - - - (109) (74) (3,522)
Unearned revenue 33 (3,135) 528 - (22) (2,596) -
Self-insurance liability 1,244
Totaladjustments 4,317 (1,597) (387) 4,409 2,700 9,442 3,691
Net cash provided(used)by operating activities � L352 $ 8.571 � 991 � 3313 8 3.981 R 19.208 R 247
NONCASH INVESTING,CAPITAL AND FINANCING ACTIVITIES:
On-bill financing loan agreement $ 196 $ - $ - $ - $ - $ 196 $ -
The accompanying notes are an integral part of these financial statements.
44
COUNTY OF SAN LUIS OBISPO
STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL AND INVESTMENT TRUST FUNDS
JUNE 30, 2022 (IN THOUSANDS)
SAN LUIS OBISPO PENSION TRUST FUND
DECEMBER 31, 2021 (IN THOUSANDS)
San Luis Obispo Investment
County Trust Custodial
Pension Trust Funds Funds
December 31,2021 June 30,2022 June 30,2022
ASSETS
Cash and cash equivalents $ 78,935 $ 510,883 $ 107,411
Receivables:
Contributions - - -
Interest and dividends 509 - -
Securities sold 65 - -
Taxes for other governments - - 452
Investments at fair value: -
Bonds and notes 351,526 - -
International fixed income 131,650 - -
Collateralized mortgage obligations 9,337 - -
Domestic equities 422,869 - -
International equities 325,043 - -
Alternative investments 244,171 - -
Real estate 220,642 - -
Other investments - - -
Other assets 175 - 3,857
Capital assets,net 6,121 - 17
Total assets $ 1,791,043 $ 510,883 $ 111,737
LIABILITIES
Other current liabilities $ 1,325 $ - $ 75,715
Prefunded contributions 34,175 - -
Securities purchased 5,580 - -
Other long-term liabilities - - 9
Totalliabilities $ 41,080 $ - $ 75,724
NET POSITION
Restricted for:
Pensions $ 1,749,963 $ - $ -
Pool Participants - 510,883 -
Individuals,organizations and other governments - - 36,013
Total net position $ 1,749,963 $ 510,883 $ 36,013
The accompanying notes are an integral part of these financial statements.
45
COUNTY OF SAN LUIS OBISPO
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL AND INVESTMENT TRUST FUNDS
FOR THE YEAR ENDED )UNE 30, 2022 (IN THOUSANDS)
SAN LUIS OBISPO PENSION TRUST FUND
FOR THE YEAR ENDED DECEMBER 31, 2021 (IN THOUSANDS)
San Luis Obispo Investment
County Trust Custodial
Pension Trust Funds Funds
December 31, 2021 June 30, 2022 June 30, 2022
ADDITIONS
Contributions:
Contributions to pooled investments $ - $ 1,212,982 $ -
Employer contributions 61,177 - -
Member contributions 36,700 - -
Total contributions 97,877 1,212,982 -
Investment income:
Realized and unrealized gains and losses 206,237 - -
Interest 2,827 2,354 790
Dividends 5,895 - -
Investment expenses (3,974) - -
Total investment income 210,985 2,354 790
Property taxes collected for other governments - - 221,469
Sales taxes collected for other governments - - 19,135
Other Income 22 - 12,654
Total additions 308,884 1,215,336 254,048
DEDUCTIONS
Benefits:
Monthly benefit payments 117,369 - -
Refunds of contributions 3,315 - -
Death benefits 441 - -
Total benefits 121,125 - -
Administrative expenses 2,797 - 27
Distributions from pooled investments - 1,225,076 -
Depreciation expense - - -
Interest expenses - - 26,660
Payments to other local governments - - 3,236
Prefunded discount amortization 1,325 - -
Property taxes distributed to other governments - - 235,878
Total deductions 125,247 1,225,076 265,801
Change in net position 183,637 (9,740) (11,753)
Net position - beginning 1,566,326 520,623 47,766
Net position - ending $ 1,749,963 $ 510,883 $ 36,013
The accompanying notes are an integral part of these financial statements.
46
�
• �
� i � �
NOTES TO THE BASIC FINANCIAL STATEMENTS
�
• �
� i � �
COUNTY OF SAN LUIS OBISPO
NOTES TO THE BASIC FINANCIAL STATEMENTS (IN THOUSANDS)
]UNE 30, 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. FINANCIAL REPORTING ENTITY
The County of San Luis Obispo(the County)was established by an act of the California State Legislature on February
18, 1850 as one of California's original 27 Counties. The County is a political subdivision of the State of California
and may exercise the powers specified by the Constitution and laws of the State. The County exercises its powers
through an elected five-member Board of Supervisors. The County provides various services on a countywide basis
including public protection, public ways and facilities, health and sanitation, public assistance, education, and
recreational and cultural services.
The County reporting entity includes all significant organizations, departments, and agencies over which the County
is considered financially accountable. The component units discussed below are included in the County's reporting
entity because of the significance of their operational and financial relationships with the County. The
accompanying financial statements present the financial position of the County and those County-related entities
that meet the criteria for component units established by the Governmental Accounting Standards Board (GASB).
Blended Component Units
These component units are so intertwined with the County that they are, in substance, the same as the County
and, therefore, are blended and reported as if they were part of the County. Each of the following entities have
governing bodies which are substantively the same as the governing body of the County, are fiscally accountable
to the County, and have a significant relationship with the County, and therefore are included in its government-
wide, governmental fund and proprietary fund financial statements:
CountySer�iceAreas—County Service Areas have been established for the purpose of providing specific services
to distinct geographical areas within the County. These services include drainage and sewer collections facilities
maintenance, street lighting energy charges, centralized septic services, wastewater disposal and treatment, and
fire and emergency medical services in various unincorporated areas of the County.
F/ood Control and Water Conservation Districts — Flood control and water conservation districts have been
established for the purpose of providing specific flood and conservation services to distinct geographical areas
within the County. These services include weather and hydrological data collections services, water delivery, water
treatment and distribution services, and the construction of the Lopez Dam Seismic Remediation project.
SLO CountyFinancingAuthority(theAuthority)—The Authority was created to assist in the financing, construction,
and equipping of public facilities for one or both of the Authority's members.
San Luis Obispo County Public Faci/ities Corporation (PFC) — The PFC is a nonprofit public benefit corporation
organized to assist public agencies within the County of San Luis Obispo with the acquisition and construction of
various public facilities.
Separate financial statements or additional financial information for each of the component units may be obtained
from the Auditor-Controller-Treasurer-Tax Collector at 1055 Monterey, Room D290, San Luis Obispo, CA 93408.
Also, included in the accompanying financial statements as investment trust funds are the assets of numerous self-
governed schools, special districts, and regional boards and authorities for which the County Treasurer acts as
47
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
custodian of those assets. The financial reporting for these governmental entities, which are independent of the
County, is limited to the total amount of cash and investments and the related fiduciary responsibility of the County
for disbursement of these assets. Activities of these entities are administered by separate boards and are
independent of the County Board of Supervisors. The County Auditor-Controller-Treasurer-Tax Collector makes
disbursements upon the request of the entity's officers. The County Board of Supervisors has no effective authority
to govern, manage, approve budgets, assume financial accountability, establish revenue limits, nor to appropriate
surplus funds available in these entities. Seven cities and numerous self-governed special districts provide services
to the residents of the County. The operations of these entities have been excluded from the basic financial
statements as each entity conducts its own day-to-day operations and answers to its own governing board.
Discretely Presented Component Units
Chi/dren and Fami/ies Commission of San Luis Obis,no County (First 5) — First 5 was created in 1998 with the
passage of Proposition 10, the California Children and Families First Act. First 5's mission is to allocate funds from
the California Children and Families Trust Fund and advocate for quality programs and services, supporting children
prenatal to age 5, to ensure that every child is healthy and ready to learn in school. First 5 is governed by a nine-
member commission that includes public officials and community leaders from the fields of early childhood
education, health care, and family support. The County can influence the day-to-day operations and financial
decisions of First 5 as the County Board of Supervisors appoints all commission members. First 5 is reported as a
discretely presented component unit because its governing body is not substantively the same as the County's
governing body, and it does not provide services entirely or exclusively to the County.
The County also discretely presents the San Luis Obispo CountyPension Trustwhich is an independent trust that
administers the San Luis Obispo County Employees Retirement Plan on behalf of the County, is a fiduciary
component unit which is presented in the Fiduciary Fund Financial Statements.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Government-wide Financial Statements
The Government-wide financial statements consist of the statement of net position and the statement of activities
that report information about the County and its component units. These statements include the financial activities
of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double
counting of internal activities. The statements distinguish between governmental and business-type activities of
the County. Governmental activities generally are financed through taxes, intergovernmental revenues and other
nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties
for goods or services.
The statement of activities presents a comparison between direct expenses and program revenues for the different
business-type activities of the County and for each function of the County's governmental activities. Direct expenses
are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a
particular function. Internal activities and indirect expenses are consolidated in the statement of activities.
Examples of expenses that have been eliminated include the allocation of indirect costs under the Countywide Cost
Allocation Plan and internal payments for services provided between departments.
Amounts reported as program revenues include 1) fees, fines and charges to customers or applicants for goods or
services offered by the programs, 2) operating grants and contributions that are restricted to meeting the
operational requirements of a particular program, and 3) capital grants and contributions restricted to particular
programs. Internally dedicated resources are reported as general revenues rather than as program revenues.
Likewise, general revenues include all taxes.
Enterprise funds, reported as business-type activities, distinguish operating revenues and expenses from
nonoperating items. Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with an enterprise fund's principal ongoing operation. The principal operating
48
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
revenues of the County enterprise funds (Airport, Nacimiento Water Contract, State Water Project, Los Osos
Wastewater, and nonmajor enterprise) 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 nonoperating revenues and expenses.
The County's internal service funds also distinguish operating revenues and expenses from nonoperating items,
receive revenue primarily from charges to customers, and have services, administrative expenses, and deprecation
of capital assets as costs; however, the internal service funds are reported as governmental activities in the
Government-wide financial statements because they principally serve internal County operations.
Fund Financial Statements
The fund financial statements report detailed information about the County's funds, including fiduciary funds and
blended component units. Separate statements are provided for each fund category—Governmental, Proprietary,
and Fiduciary even though the latter are excluded from the Government-wide financial statements. The emphasis
of the Governmental and Proprietary Fund financial statements is on major individual funds. Each major fund is
presented in a separate column. Nonmajor funds are aggregated and presented in a single column. The internal
service funds are presented in a single column on the face of the proprietary fund statements.
New Accountinc1Pronouncements
For the fiscal year ended June 30, 2022,the County implemented the following Governmental Accounting Standards
Board (GASB) Statements:
• GASB Statement No. 87, Leases(GASB 87). The requirements of this statement are effective for financial
statement periods beginning after December 15, 2019. However, GASB 95 postponed this date to July 1,
2021. GASB 87 improves consistency in accounting and financial reporting for leases by establishing a
single model for lease accounting based on the foundational principle that leases are financings of the right
to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an
intangible right-to-use asset, and a lessor is required to recognize a lease receivable and a deferred inflow
of resources.
The County reports the followinq Major Governmental Funds:
• The General Fund is the County's primary operating fund. The General Fund is used to account for all
revenues and expenditures necessary to carry out the basic governmental activities of the County that are
not accounted for through other funds. For the County, the General Fund includes such activities as public
protection, public ways and facilities, health and sanitation, public assistance, education, and recreational
and cultural services.
• The Capital Projects Fund is used to account for the financial resources restricted for the acquisition or
construction of specific projects, or items other than those financed by proprietary funds.
The County reports the following Major Proprietary Funds:
• The Airport Fund accounts for the maintenance, operations, and development of the County-owned
commercial service airports in San Luis Obispo and Oceano.
• The Nacimiento Water Contract Fund accounts for the activities and delivery of water associated with the
Nacimiento water supply reservoir and the contract with Monterey County.
• The State Water Project Fund accounts for revenues, expenses and net position relating to the countywide
taxpayers' obligations associated with the State Water Project, which provides for the delivery of state
water into the County.
49
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
• The Los Osos Wastewater Fund accounts for the construction, operation and maintenance of the
wastewater treatment plant serving the community of Los Osos.
• Additionally, the County reports on Internal Service Funds. Internal Service Funds are used to account for
the financing of goods or services provided by one department or agency to other departments or agencies
of the County or to other governments on a cost-reimbursement basis. Internal Service Funds account for
the activities of fleet operations, construction management services, and self-insurance programs such as
workers'compensation, long-term disability, employee benefits, and personal injury & property damage.
The County reports the followinQ Fiduciary Funds:
• The Pension Trust Fund accumulates contributions from the County and its employees, as well as earnings
from the fund's investments. Disbursements are made from the fund for retirement, disability and death
benefits (based on a defined benefit formula), and administrative expenses. This fund includes all assets
of the San Luis Obispo County Pension Trust as of December 31, 2021.
• The Investment Trust Funds account for the assets of legally separate entities that deposit cash with the
County Treasurer. These entities include school and community college districts, other special districts
governed by local boards, regional boards and authorities and pass through funds for tax collections for
cities. These funds represent the assets, primarily cash and investments, and the related liability of the
County to disburse these monies on demand.
• The Custodial Funds account for the resources held by the County in a custodial capacity on behalf of other
agencies. These include accounts for temporary holding of funds for the tax assessment areas created
under the 1915 Improvement Act, temporary clearing funds, and other temporary holding funds not
classified in other fiduciary categories.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The Government-wide, Proprietary, and Fiduciary Fund financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Nonexchange
transactions, in which the County gives (or receives) value without directly receiving (or giving) equal value in
exchange, include property taxes, sales tax, transient occupancy taxes, grants, entitlements, and donations. On
an accrual basis of accounting, revenues from property taxes are recognized in the fiscal year for which the taxes
are levied. Revenues from sales and transient occupancy taxes are recognized when the underlying transactions
take place. Revenues from grants and similar items are recognized as soon as all eligibility requirements imposed
by the provider have been satisfied.
Governmental Fund financial statements are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized as soon as they become
both measurable and available. The County considers all revenues in governmental funds 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 County considers property tax revenues and all other revenues to be available if they are collected
within 60 days of the end of the current fiscal period. It is the County's policy to submit reimbursement and claim
requests for federal and state grant revenues within 30 days of the end of the program cycle, and payments are
generally received within 90 days. Property taxes, franchise taxes, licenses, and interest are considered to be
susceptible to accrual. Expenditures generally are recorded when the related liability is incurred, as under accrual
accounting. However, prepaid items, such as rent expense, are recorded using the consumption method which
recognizes expenses during the period benefited by the prepayment. Debt service expenditures, as well as
expenditures related to compensated absences and claims and judgments, are recognized as expenditures only to
the extent that payment is due. General capital assets acquisitions are reported as expenditures in governmental
funds. Proceeds of general long-term debt and acquisitions under leases are reported as other financing sources.
50
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
The County eliminates the effect of interfund activity from the Government-wide financial statements by
consolidating internal activities and indirect expenses in the statement of activities. Interfund services provided
and used are not eliminated in the process of consolidation.
When both restricted and unrestricted resources are available for use, it is the County's policy to use restricted
resources first, and then unrestricted resources as they are needed.
D. ASSETS, DEFERRED OUTFLOWS OF RESOURCES, LIABILITIES, DEFERRED INFLOWS OF
RESOURCES,AND FUND EQUITY
Deposits and Investments
In accordance with Government Code Section 27130, a treasury oversight committee serves the County. The
committee consists of a representative appointed by the Board of Supervisors, the Auditor-Controller-Treasurer-
Tax Collector, the Superintendent of Schools, a representative from the County's school districts and community
college, and one member from the public at large. The committee meets annually and is subject to the California
open meeting statutes.
Cash balances of substantially all funds are pooled and invested by the County Treasurer for the purpose of
increasing earnings through investment activities. State statutes authorize the County to invest in obligations of
the U.S. Treasury, commercial paper, corporate bonds, repurchase agreements, and the State Treasurer's
Investment Pool. In accordance with GASB Statement No. 31, Accounting and Financia/ Reporting for Certain
Investments and Externallnvestment Pools, investments held by the County Treasurer are stated at fair value at
June 30, 2022. The fair value of pooled investments is determined annually and is based on current market prices.
The County pool is not registered with the Securities and Exchange Commission as an investment company and
does not issue separate investment reports.The County has not provided or obtained any legally binding guarantees
to support the value of the shares. Participants may withdraw up to the amortized cost of their respective shares
as displayed on the combined balance sheet. The share of the Treasurer's pool related to involuntary participants
is 99.84 percent.
Cash and Cash Equivalents
The County'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. All short-term cash
surpluses are maintained in the County Treasury cash and investments pool, the earnings from which are allocated
quarterly to each fund based on average daily cash balances.
Receivables and Payables
All trade and property tax receivables are shown net of an allowance for uncollectible accounts. No uncollectible
allowance is recorded for enterprise special district receivables, which are primarily for water service billings. These
receivables are written off in the year they become uncollectible.
Deferred Outflows and Inflows of Resources
In addition to assets, the financial statements may report a separate section for deferred outflows of resources. A
deferred outflow of resources represents a consumption of net assets that applies to future periods. In addition to
liabilities, the financial statements may report a separate section for deferred inflows of resources which represent
an acquisition of net position that applies to future periods.
51
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Property Tax
The County is responsible for the assessment, collection, and apportionment of property taxes for all taxing
jurisdictions within the County, including schools, cities, and special districts. Property taxes, for which the lien
date is January 1, are payable in two equal installments, November 1 and February 1, and become delinquent on
December 10 and April 10, respectively. Property taxes receivable are recognized when levied. Property taxes on
the unsecured roll are due on the January 1 lien date and become delinquent on August 31.The County is permitted
by Article XIII-A of the State of California Constitution (known as Proposition 13) to levy a maximum tax of $1.00
per $100.00 of full cash value. Property taxes are accounted for in the Unapportioned Property Tax and Interest
Fund, a Custodial Fund, until allocation and disbursement to the taxing jurisdictions.
Beginning in fiscal year 1993-94, the County of San Luis Obispo adopted the "Alternative Method of Distribution of
Tax Levies and Collections and of Tax Sale Proceeds" provided for in Revenue and Taxation Code Sections 4701-
4717, which is commonly known as the "Teeter Plan". The Teeter Plan has no impact on tax rates or collection
procedures. It merely changes the way the collections of delinquent taxes and penalties are distributed among the
taxing agencies. Those agencies participating in the Teeter Plan receive 100% of the secured property taxes billed
each year without regard to delinquencies. The General Fund covers the delinquent amount to all agencies and,
in return, receives the delinquent taxes, penalties and interest when collected. As a result of the Teeter Plan,
secured property taxes receivable are recorded in the General Fund only, and there is no allowance for uncollectible
amounts. Penalties and interest are deposited into the Tax Loss Reserve Fund. Once the Tax Loss Reserve Fund
balance exceeds 25% of the secured delinquent roll, the excess may be credited to the General Fund.
The Teeter Plan was amended beginning fiscal year 2001-02 by removing unitary tax payments (including PG&E),
so that all agencies in the County will share in any delinquency that may occur.
Unsecured property is not part of the Teeter Plan. Unsecured property taxes receivable is accrued to taxing
agencies, net of the uncollectible amount which is estimated based on prior year collections.
Interfund Transactions
Activities between funds that are representative of lending/borrowing arrangements outstanding at the end of the
fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or
��advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances
between funds are reported as��due to/from other funds" in the fund financial statements. Any residual balances
outstanding between the governmental activities and business-type activities are reported in the Government-wide
financial statements as��internal balances."
Advances between funds, as reported in the fund financial statements, are offset by nonspendable fund balance in
the applicable governmental funds to indicate that they are not available for appropriation and are not expendable
available financial resources.
Inventories and Prepaid Items
Inventories held by the General Fund, and the Public Works and Garage Internal Service Funds, are carried at cost
(first-in, first-out). The Internal Service Funds' inventories are controlled by perpetual inventory systems and are
adjusted as appropriate to reflect year-end physical inventory counts. Governmental Funds(other than the General
Fund) record inventory as expenditures when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items
in both the Government-wide and Fund financial statements. The cost of prepaid items is recorded as
expenditures/expenses when consumed rather than purchased.
52
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Capital Assets
Capital assets, which include land, structures and improvements, equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activity
columns in the Government-wide financial statements. Capital assets are defined as assets with an initial individual
cost greater than the capitalization threshold for the specified type of asset and an estimated useful life beyond a
single fiscal period. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets and capital assets received in a service concession arrangement are recorded
at acquisition value. General infrastructure assets acquired prior to July 1, 1980,are reported at estimated historical
cost using deflated replacement costs.
Normal maintenance and repairs are not capitalized but are charged to operations when incurred. Betterments or
major improvements, which significantly increase values, change capacities, or extend useful lives, are capitalized.
Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the
respective accounts and any resulting gain or loss is included in the results of operations.
Capital outlays are recorded as expenditures in the General, Special Revenue, and Capital Projects Funds and as
capital assets in the Proprietary Funds and Government-wide financial statements to the extent the County's
capitalization thresholds are met. Interest incurred during the construction phase on financing capital assets of
business-type activities is reflected in the capitalized value of the asset constructed, net of interest earned on the
invested proceeds over the same period. Amortization of assets acquired under capital leases is included in
depreciation and amortization. Facilities and improvements, infrastructure, and machinery and equipment of the
primary government, as well as the component units, are depreciated using the straight-line method over the
estimated useful lives.
The capitalization thresholds and estimated useful lives of specific asset types are as follows:
Asset Type Caqitalization Threshold Estimated Useful Life
Land No threshold ---------------
Infrastructure $100,000 20 to 100 years
Structures&Improvements $25,000 15 to 50 years
Equipment $5,000 2 to 15 years
Right-to-use Leased Asset By asset type Lease term or useful life
Riqht-To-Use Lease Asset
Right-to-use lease assets are recorded at the amount of the initial measurement of the lease liabilities and modified
by any lease payments made to the lessor at or before the commencement of the lease term, less any lease
incentives received from the lessor at or before the commencement of the lease term along with any initial direct
costs that are ancillary charges necessary to place the lease assets into service.
Right-to-use lease assets are amortized using the straight-line method over the shorter of the lease term or the
useful life on the underlying asset, unless the lease contains a purchase option that the County has determined
reasonably certain of being exercised.
Compensated Absences
The County's policy is to permit employees to accumulate earned but unused vacation and sick leave benefits.
Each year-end, a liability is accrued for the balance of unpaid compensatory time off, sick leave, and vacation
earned.
Accumulated benefits will be liquidated in future years as employees elect to use them. In the normal course of
business, all payments of these accumulated benefits will be funded from appropriations in the year in which they
are to be paid. A liability for these amounts is reported in governmental funds only if they have matured, for
example, as a result of employee designations and retirements.
53
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Long-term Obligations
In the Government-wide financial statements, and in 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 fund type statement of net position. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the
applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. 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.
Pensions
For purposes of ineasuring the net pension liability and deferred outflows/inflows of resources relating to pensions
and pension expense, information about the fiduciary net position of the County's pension plan with San Luis Obispo
County Pension Trust (SLOCPT) and additions to/deductions from the plan's fiduciary net position have been
determined on the same basis as they are reported by SLOCPT. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with the benefits'terms.
Investments are reported at fair value.
Other Postemployment Benefits (OPEB�
For purposes of ineasuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources
related to OPEB, and OPEB expense, information about the fiduciary net position of the County's OPEB Plan (OPEB
Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same
basis as they are reported by CaIPERS. For this purpose, the OPEB Plan recognizes benefit payments when due
and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market
investments and participating interest-earning investment contracts that have a maturity at the time of purchase
of one year or less, which are reported at cost.
Fund Equitx
In the fund financial statements, governmental funds report fund balance in classifications based primarily on the
extent to which the County is bound to honor the constraints on the specific purposes for which amounts in the
funds can be spent. The fund balance classifications used are nonspendable, restricted, committed, assigned and
unassigned (see Note 11 for a description of these categories).
In circumstances when an expenditure is made for a purpose for which amounts are available from multiple fund
balance classifications, fund balance is generally depleted in the order of restricted, committed, assigned, and
unassigned.
E. ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
54
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
DETAIL NOTES ON ALL FUNDS
2. CASH AND CASH EQUIVALENTS
Cash in Treasury
Investments made by the Treasurer are regulated by the California Government Code (CGC) and by the County's
Investment Policy (IP). The objectives of the policy in order of priority are safety and preservation of capital,
liquidity sufficient to meet scheduled cash flow needs, and then yield, subject to safety and liquidity, while
maintaining compliance with federal, state, and local laws and regulations.
The San Luis Obispo County Investment Pool is rated by Fitch Ratings, one of the Nationally Recognized Statistical
Rating Organizations. Fitch has consistently rated the County Pool with their highest rating since Fiscal Year (FY)
1994-95. Fitch reaffirmed the County Pool's"AAAf/S1"rating on September 2, 2021. The County Pool's��AAAf"fund
credit quality rating reflects"the highest underlying credit quality(or lowest vulnerability to default)". The"f"suffix
to the Fund Credit Quality Rating indicates a fund rather than an individual issue or issuer. The County Pool's"S1"
rating reflects the pool's low sensitivity to market risk and capacity to return stable principal value to meet
anticipated cash flow requirements, even in adverse interest rate environments.
The County Treasury Oversight Committee(CTOC)was created by the Board of Supervisors' Resolution and consists
of five members. The CTOC monitors and reviews quarterly, the management of public funds maintained in the
investment pool in accordance with the CGC. The CTOC and the Board of Supervisors review and approve the IP
annually. The County Treasurer prepares and submits a comprehensive investment report to the members of the
CTOC and the investment pool participants every quarter. The report covers the type of investments in the pool,
maturity dates, par value, actual costs, and fair value. CGC directs the CTOC to cause an annual IP compliance
audit. A list of providers for the annual compliance audit is specified in the Board Resolution which created the
CTOC. These providers are the County Auditor in conjunction with or in addition to work directed by CGC,
independent certified public accountants (CPAs) selected to review the County's Annual Comprehensive Financial
Report, and independent CPAs as deemed appropriate. CLA (CliftonLarsonAllen LLP) was selected to perform an
Annual Investment Program Compliance Audit for the FY ended June 30, 2022. The results of these audits are
presented to the Board of Supervisors on a yearly basis. All such audits from prior years have had no findings.
Under CGC,the County may purchase as investments: obligations issued by the United States Treasury; obligations,
participations, or other instruments of or issued by a federal agency or a United States government-sponsored
enterprise; obligations of state and local agencies of this state and any of the other 49 states; bankers'acceptances;
commercial paper; negotiable certificates of deposit; repurchase agreements; medium-term corporate notes; debt
issuances guaranteed by the International Bank for Reconstruction (IBRD), International Finance Corporation (IFC),
or the Inter-American Development Bank (IADB) that are eligible for purchase and sale within the United States;
as well as other investments established by the CGC. CGC prohibits investments in derivatives which include inverse
floaters, range notes, or mortgage-derived, interest strips and any security that could result in zero interest accrual
if held to maturity. While securities lending and reverse repurchase agreements are considered permitted
investments per CGC, the County IP prohibits these types of investments.
The County maintains a combined pool of cash and investments which provides cash flow for the funding needs of
the County, school districts, and other local agencies required by law to keep funds in the Treasury. The combined
pool's investments are stated at fair value and have a weighted-average maturity of 1.57 years. Interest is
apportioned to the separate funds based on the individual fund's average daily balance. Securities are held in a
customer-segregated safekeeping account during the fiscal year. A Cash Statement and Asset List is requested
monthly from the appropriate institutions and verified against records maintained in the Treasury.
The County's combined pool has invested in the CaITRUST Short-Term Fund (CTSTF). CaITRUST is a Joint Powers
Agency Authority created by local public agencies to provide a method for local public agencies to pool their assets
for investment purposes. CaITRUST is governed by a Board of Trustees made up of experienced local agency
treasury and investment officers. The CaITRUST Board sets overall policies for the program and selects and
supervises the activities of the investment manager, currently BlackRock. Public agencies invest in shares of
55
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
beneficial interest with a Net Asset Value (NAV) that fluctuates. CaITRUST attempts to minimize NAV fluctuation.
This type of investment is an authorized investment under CGC §53601 (p). As of June 30, 2022, the CTSTF NAV
was $0.996 per $1.00 of investment.
The County's combined pool has invested in the State's Local Agency Investment Fund (LAIF). This fund is not
registered with the Securities and Exchange Commission as an investment company but is required to invest
according to CGC. Market valuation is conducted quarterly. LAIF provided a fair value dollar factor of 0.987125414
for its portfolio as of June 30, 2022. The fair value of the investments in LAIF is the pool participant's amount
invested balance multiplied by the fair value dollar factor. As of June 30, 2022, 1.88% of the LAIF pool includes
Medium-term and Short-term Structured notes and Asset-backed securities. The Local Investment Advisory Board,
which consists of five members as designated by statute, provides oversight for LAIF.
As of June 30, 2022, the County's combined pool includes funds deposited in collateralized interest-bearing bank
accounts known as Public Investment Money Market Accounts (PIMMAs) and FDIC Insured Placement Service
Deposits. Per CGC §53631 et seq., PIMMAs are depository accounts, not investments, and are fully liquid and
collateralized by eligible securities. Placement Service Deposits are when a single large deposit is placed into
individual deposits of less than $250,000 with network banks. As a result, full FDIC insurance is maintained.
Placement Service Deposits are not term deposits, and the full balance is available at any time on demand. PIMMAs
and Placement Service Deposits are not investments by code, but they are included in the County's combined pool
and are treated internally as investments for tracking, management, and reporting purposes.
Governmental Accounting Standards Board (GASB) Statement No. 31 requires governmental external investment
pools to report certain investments at fair value in the financial statements and report the change in the fair value
of investments in the year in which the change occurred. In compliance with these requirements, the fair value of
the County's combined pool is determined annually and is based on current market prices received from the
securities custodian, CaITRUST, and LAIF, except for instruments which are carried at amortized cost plus accrued
interest. The County Treasury has provided a fair value dollar factor of 0.972764298477 in the Quarterly Report of
Investments as of June 30, 2022, which can be used for financial reporting by the pool participants. The fair value
of the investments is the pool participant's amount invested balance multiplied by the fair value dollar factor.
The table below identifies the investment types that are authorized for the County by the CGC. The County's
combined pool is further restricted by both the County's IP and the Treasurer's written policies and procedures to
reduce exposure to investment risks. The County's IP gives the County Treasurer the authority to act in the best
interest of the County in the face of changing market conditions and circumstances by making written exceptions
to the County's IP and the Treasurer's written policies and procedures within the limits of the CGC and all relevant
laws. As of June 30, 2022, the table represents the County's IP or where more restrictive, the Treasurer's written
policies and procedures, that address interest risk, credit risk, and concentration of credit risk.
Maximum Maximum
Investment Type Maturity Percentage Maximum Investment in One Issuer
of Portfolio
Investment es utilized b the combined ool in FY 2021-22
U.S.Treasury Notes 4 years 100% N/A
U.S.Treasury Bills Maximum 100% N/A
issued
U.S.Government A encies: Federal Home Loan Bank 4 ears 25% N/A
U.S.Government A encies: Farm Credit 4 ears 25% N/A
Local A enc Investment Fund (LAIF N/A 15% N/A
Joint Powers Authori Pool N/A 20% N/A
Money Market Mutual Funds(Shares of Beneficial Interest) 15%per issuer. Requires specific written
issued by a Joint Powers Authority N/A 15% approval of County Treasurer for each
e of investment.
10%per issuer(IBRD,IFC,or IADB only).
Supranationals 4 years 20% Must have AAA/A-1+ by 1 of the 3 credit
rating agencies.
Public Investment Money Market Accounts(PIMMA) N/A 50% 20%
FDIC Insured Placement Service De osits N/A 15% U to 250 000 er artici atin bank
Bonds,Notes,Warrants,other evidences of indebtedness of 1 year 10% No more than 10%of issuer debt and
56
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Maximum Maximum
Investment Type Maturity Percentage Maximum Investment in One Issuer
of Portfolio
any local agency within this state assets. Requires specific written approval
of County Treasurer for each type of
investment.
Investments authorized, but not utilized in FY 2021-22
U.S.Treasury Bonds 4 years 100% N/A
CDARS lyear 15% 1%
Bankers'Acce tances-Domestic 30 da s 10% 4%
Commercial Pa er 30 days 5% 2%
Collateralized Certificates of De osit 1 year 5% 1%
Tri-Party Repurchase Agreements 30 days 15%of all N/A
re os
Cash Management Bills Maximum 100% N/A
issued
Requires specific written approval of
Bonds issued by a Local Agency 1 year 5% County Treasurer for each type of
investment.
Requires specific written approval of
Registered State Warrants 1 year 10% County Treasurer for each type of
investment.
Per specific statutory provisions or in accordance with the ordinance,
Pledged Funds held by a trustee or fiscal agent resolution, indenture,or agreement of a local agency providing for the
issuance.
Investments not authorized in FY 2021-22
U.S.Government Agencies: Federal National Mort a e Assoc.
U.S.Government A encies: Federal Home Loan Mort a e Cor .
Bankers'Acce tances-Foreign
Ne otiable Certificates of Deposit
Bi-Pa Re urchase A reements
Medium-Term Notes
Mone Market Mutual Funds Shares of Beneficial Interest issued by diversified mana ement com anies
Treasu Notes or Bonds of this state
Re istered Treasur Notes or Bonds of any of the other 49 United States
Notes Bonds or other obli ations that are at all times secured b a valid first riori securi interest
Mort a e Pass-Throu h Securities
Investments not authorized in the Coun 's IP
Reverse Re urchase A reements
Securities Lendin Agreements
Interest Rate Risk
In accordance with County's IP, the County manages exposure to declines in fair values by structuring the portfolio
so that securities mature to meet cash flow requirements for ongoing operations and thereby avoiding the need to
sell securities on the open market prior to maturity.
Custodial Credit Risk
The County minimizes this type of credit risk by pre-qualifying the custodial financial institution and requiring the
custodian to hold securities in the County Treasurer's name.
Credit Risk
The County minimizes exposure to credit risk by pre-qualifying the financial institutions limiting investments to the
safest types of securities, diversifying the portfolio, and setting limits per issuer.
Concentration of Credit Risk
At June 30, 2022, the County did not have investments in medium-term notes.
57
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
The following is a summary of the credit quality distribution and concentration of credit risk by investment type as
a percentage of the County's Investment Pool's fair value at June 30, 2022.
Investment Type S&P Moody's %of Portfolio
U.S.Government Agencies AA+ Aaa 35.64%
U.S.Treasuries AA+ Aaa 30.44%
Supranationals AAA Aaa 19.66%
CaITRUST-Short-Term Fund AAf/S1+ Not Rated 8.17%
LAIF Not Rated Not Rated 6.09%
Total 100.00%
GASB Statement No. 40 requires that investments in single issuers exceeding 5% of the County's pooled
investments be disclosed as concentrations of credit risk. As of the year ended June 30, 2022, the following
investments exceeded the 5% disclosure threshold:
Investment Type % of Portfolio
U.S. Government Agencies-Federal Home Loan Bank 16.91%
U.S. Government Agencies-Farm Credit Bank 18.73%
Supranationals—IADB 9.31%
Supranationals—IBRD 8.01%
At June 30, 2022, the County had the following investments and interest-bearing deposits (in thousands):
Weighted
Average
Interest Rate Maturity
Instrument Maturity Dates % Years Fair Value Cost
U.S. Government Agencies 9/19/22-9/12/25 0.151%-2.787% 1.68 $ 433,976 $ 449,431
U.S. Treasuries 7/15/22-2/15/26 0.124%-2.814% 1.98 370,721 382,807
Supranationals 9/14/22-4/03/25 0.206%-0.664% 1.84 239,339 255,293
CaITRUST On Demand 1.23% - 99,532 99,964
LAIF On Demand 0.560% - 74,175 75,000
Total Investments in County Treasury $ 1,217,743 $ 1,262,495
Deposits in Financial Institutions $ 210,473 $ 210,473
Cash on Hand 111 111
Total Cash held in Treasury 1,428,327 1,473,079
Deposits in Transit 3,653 3,653
Outstanding Warrants (16,416) (16,416)
Total 1,415,564 1,460,316
Imprest Cash 1,392 1,392
Non-pool Cash Deposits 3,000 3,000
Other Cash Deposits 4,392 4,392
Total Cash and Cash Equivalents $ 1,419,956 $ 1,464,708
Restricted Cash with Fiscal Agent
U.S. Government& Federal Agencies $ 15,060 $ 15,060
Certificates of Deposit& Money Market Accounts 764 764
Total 15,824 15,824
Total restricted and unrestricted cash and cash equivalents $ 1,435,780 $ 1,480,532
Total Cash and Investments Summary Fair Value
Total Governmental Activities $ 689,513
Total Business-Type Activities 86,034
58
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Total Investment and Custodial Fiduciary Funds 618,294
Total Fiduciary Component Unit— SLO Pension Trust as of December 31, 2021 78,935
SLO Pension Trust Fund Perspective Difference 1 (46,278)
Total Component Unit— First 5 9,282
Total Cash and Investments as of June 30, 2022 $ 1,435,780
� Perspective amount represents the combination of the change in Total SLO Pension Trust cash from the Pension Trust's
ACFR Reporting Date of 12/31/2021 to the County's ACFR Reporting Date of 6/30/2022 and the portion of Pension Trust's
cash held outside of the County's financial system. The cash balance in the County's Treasury for San Luis Obispo County
Pension Trust as of 6/30/2022 is$32,657.
The following represents a condensed statement of net position and changes in net position for the Treasurer's
investment pool as of June 30, 2022 (in thousands):
Fair Value
Statement of Net Position:
Net position held for pool participants $ 1,415,564
Equity of internal pool participants $ 904,682
Equity of external pool participants (voluntary and involuntary) 510,882
Total Equity $ 1,415,564
Statement of Changes in Net Position:
Revenue $ 8,679
Investment costs (942)
Net deposits 101,290
Change in fair value (42,389)
Net change in pool net position 66,638
Net position at July 1, 2021 1,348,926
Net position at June 30, 2022 $ 1,415,564
Fair Value Measurements
The County categorizes its fair value measurements within the fair value hierarchy established by generally accepted
accounting principles. The hierarchy is divided into 3 levels with each level based on the source used to measure
the fair value of the asset.
59
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
The County has the following recurring fair value measurements as of June 30, 2022:
Fair Value Measurements Usinq
Investments by fair value level
uoted
Prices in
Active Siqnificant
Markets for Other Sianificant
Identical Observable Unobservable
Assets Inputs Inputs
(Levell) (Level2) (Level3)
Debt securities
U.S. Treasuries $ 370,721 $ 370,721 $ - $ -
U.S. Government Agencies 433,976 433,976 - -
Supranationals 239,339 239,339 - -
Total measured at fair value 1,044,036 1,044,036 - -
Investments measured at amortized
cost
LAIF 74,175 - - -
CaITRUST 99,532 - - -
Total investments in County Treasury $ 1,217,743 $ - $ - $ -
Restricted Cash with Fiscal Agent
Cash and investments at June 30, 2022, that are restricted by legal or contractual requirements are comprised of
the following (in thousands):
Various Governmental Funds Amount
Required lease reserves for long-term debt $ 14,509
Restricted interest on lease reserves 551
Restricted for contractor retentions 764
Total Restricted Cash $ 15,824
Cash Deposits Outside of the Treasury Pool
At fiscal year-end, the carrying amount of the County's other cash deposits was $2,805,127 and the combined
financial institutions' balance was $3,000,237. The difference of $195,110 between the County's deposit balance
and the financial institutions' balance results from transactions in transit, and outstanding warrants and bond
coupons. The entire bank balance of$3,000,237 was covered by federal depository insurance or by collateral held
by the County's agent in the County's name.
3. RECEIVABLES
Receivables at year-end of the County's major individual funds and nonmajor and Internal Service Funds in the
aggregate, including the applicable allowance for uncollectible accounts, are as follows (in thousands):
60
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Governmental Activities
Internal
Nonmajor Special Service
General Fund Revenue Funds Funds
Accounts Receivable $ 11,224 $ 301 $ 22
Lease Receivables 1,922 152 -
Other Receivables* 1,993 50 -
Loans Receivables - 25,689 -
Allowance for poubtful Accounts - (6,932) -
Business-Type Activities
Nacimiento Los Osos Nonmajor
Airport Water State Water Wastewater Enterprise
Fund Contract Fund Project Fund Fund Funds
Accounts Receivable $ - $ 334 � 3�087 $ - � 429
Lease Receivables 16,710 - - - 161
Other Receivables* 403 - ' 101,267 '
Loans Receivables - - ' 432 -
Allowance for poubtful Account� - - - - -
*Other receivables primarily consist of accrued deposits; except for the Los Osos Wastewater Fund, which represents the special
assessment receivable.
4. CAPITAL AND RIGHT-TO-USE LEASED ASSETS
A summary of changes in capital assets for the year ended June 30, 2022, is as follows (in thousands):
Balance Transfers& Balance
Governmental Activities July 1, 2021 Additions Retirements Adjustments June 30, 2022
Capital assets, not being depreciated:
Land $ 796,008 $ 6 $ - $ 25 $ 796,039
Construction in progress 45,188 31,955 (13) (9,598) 67,532
Total capital assets, not being depreciated 841,196 31,961 (13) (9,573) 863,571
Capital assets, being depreciated:
Structures and improvements 277,769 448 (108) 3,562 281,671
Equipment 106,582 5,905 (3,891) 363 108,959
Infrastructure 447,306 4,607 - 5,648 457,561
Other property 1,258 - - - 1,258
Total capital assets, being depreciated 832,915 10,960 (3,999) 9,573 849,449
Less accumulated depreciation for:
Structures and improvements (107,804) (6,112) 107 - (113,809)
Equipment (73,921) (7,601) 3,648 - (77,874)
Infrastructure (250,925) (11,391) - - (262,316)
Other property (78) (18) - - (96)
Total accumulated depreciation (432,728) (25,122) 3,755 - (454,095)
Total capital assets being depreciated, net 400,187 (14,162) (244) 9,573 395,354
Governmental activities capital assets, net $1,241,383 $ 17,799 $ (257) $ - $ 1,258,925
61
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Balance Transfers& Balance
Business-Tvqe Activities July 1, 2021 Additions Retirements Adjustments June 30, 2022
Capital assets, not being depreciated:
Land $ 36,718 $ - $ - $ - $ 36,718
Construction in progress 3,470 2,215 - (2,196) 3,489
Water rights 64,277 3,967 - - 68,244
Other property 1,968 - - - 1,968
Total capital assets, not being depreciated 106,433 6,182 - (2,196) 110,419
Capital assets, being depreciated:
Infrastructure 385,248 4 - 20 385,272
Structures and improvements 212,043 12,850 (1,456) 2,131 225,568
Equipment 10,899 276 (86) 45 11,134
Other property 554 - - - 554
Total capital assets, being depreciated 608,744 13,130 (1,542) 2,196 622,528
Less accumulated depreciation for:
Infrastructure (52,872) (7,460) - - (60,332)
Structures and improvements (72,474) (5,974) 746 707 (76,995)
Equipment (4,782) (662) 79 - (5,365)
Other property (58) - - - (58)
Total accumulated depreciation (130,186) (14,096) 825 707 (142,750)
Total capital assets being depreciated, net 478,558 (966) (717) 2,903 479,778
Business-type activities capital assets, net $ 584,991 $ 5,216 $ (717) $ 707 $ 590,197
Depreciation Expense
Depreciation expense was charged to functions as follows (in thousands):
Governmental Activities Amount
General Government $ 4,520
Public Protection 4,412
Public Ways and Facilities 10,896
Health and Sanitation 754
Public Assistance 227
Education 431
Recreational and Cultural Services 1,106
Capital assets held by the County's internal service funds are charged to the
various functions based on their usage of the assets 2,776
Total Depreciation Expense-Governmental Activities $ 25,122
Business-Type Activities Amount
Airport $ 4,767
Los Osos Wastewater 4,387
Nacimiento Water Contract 2,222
State Water Project 204
Nonmajor Enterprise 2,516
Total Depreciation Expense- Business-type Activities $ 14,096
62
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Summary of changes in leased asset activity for the year ended June 30, 2022 is as follows (in thousands):
Restatements,
Transfers,
&
Balance Adjustments, Balance
Governmental Activities July 1, 2021 net Additions Retirements June 30, 2022
Leased assets, amortizable:
Land $ - $ 198 $ - $ - $ 198
Buildings - 95,274 - - 95,274
Equipment - 466 - - 466
Total leased assets,amortizable - 95,938 - - 95,938
Less accumulated amortization for:
Land - - - (46) (46)
Building - - - (4,846) (4,846)
Equipment - - - (96) (96)
Total accumulated amortization - - - (4,988) (4,988)
Total leased asset, amortizable net $ - $ 95,938 $ - $ (4,988) $ 90,950
Restatements,
Transfers,
&
Balance Adjustments, Balance
Business-Tvqe Activities July 1, 2021 net Additions Retirements June 30, 2022
Leased assets, amortizable:
Land $ - $ 79 $ - $ - $ 79
Equipment - 257 - - 257
Total leased assets,amortizable - 336 - - 336
Less accumulated amortization for:
Land - - (11) - (11)
Equipment - - (76) - (76)
Total accumulated amortization - - (87) - (87)
Total leased asset, amortizable net $ - $ 336 $ (87) $ - $ 249
Amortization Expense
Amortization expense was charged to functions as follows (in thousands):
Governmental Activities Amount
General Government $ 2,771
Public Protection 1,120
Public Ways and Facilities 125
Health and Sanitation 830
Public Assistance 88
Education 54
Total Amortization Expense-Governmental Activities $ 4,988
Business-Tvpe Activities Amount
Airport $ 11
Nonmajor Enterprise 76
Total Amortization Expense- Business-type Activities $ 87
63
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
5. CONSTRUCTION IN PROGRESS AND RELATED COMMITMENTS
Construction in Progress accounts reflect the amount within governmental and business-type funds for construction
projects which are not yet complete.
The following is a schedule of major projects included in Construction in Progress as of June 30, 2022 (in
thousands):
Governmental Activities
Expended to Committed Remaining
Project June 30, 2022 Funds Budget
Roads Infrastructure $ 21,943 $ 13,020 $ 9,587
Animal Services Facility 18,547 480 1,321
Women's Jail 4,928 100 98
Radio Modernization 4,510 1,591 -
Fire and Sheriff Co-located Dispatch 3,241 - 11,432
Location
Sheriff Jail Management and Records
Management Systems Software 1,423 2,777 -
Implementation Project
Bob Jones Octagon/Ontario Park Trail 1,207 130 2,737
E�ension
Templeton to Atascadero Park Trail 958 - 625
Connector
New Probation Office Building 831 - 36,419
North County Backup Computer Facility 759 - 2
Health Agency Office Remodel 744 - 21
Cayucos Vets Hall Rehabilitation 646 26 5,287
Nipomo Skate Park 631 - 2,775
Business-Tvpe Activities
Expended to Committed Remaining
Project June 30, 2022 Funds Budget
Airport Master Plan Update $ 904 $ - $ 451
Airport Runway Taxiway Electrical Circuit 748 - 200
Rehabilitation
6. LEASES
County as Lessor
The County leases out several of its buildings and land. Lease terms vary, with current agreements going out until
fiscal year 2055-2056. For agreements with renewal options the County included these renewal periods in the
lease term when it is reasonably certain that the renewal option(s) will be exercised. For contracts that contain
termination options for either party to exercise (cancellable period), these periods are excluded from the lease
receivable calculation. The County's lease arrangements do not contain any material residual value guarantees.
When the borrowing rate is not stated in the contract, or readily available, the County uses the Treasury Quarterly
Yield percentage to discount the lease payments. The agreements currently use a discount rate of 0.70% to
measure the present value of the lease payments expected to be received during the lease term period.
64
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Minimum lease payments receivable on leases of properties as of June 30, 2022, are as follows:
Governmental Activities Business-Type Activities
Year Ending
June 30, Principal Interest Principal Interest
2023 $ 245 $ 14 $ 738 $ 116
2024 257 12 650 111
2025 261 10 484 107
2026 229 8 418 104
2027 237 7 444 101
2028-2032 773 14 2,282 458
2033-2037 72 - 2,663 372
2038-2042 - - 3,276 267
2043-2047 - - 3,901 139
2048-2052 - - 1,515 33
2053-2057 - - 500 8
Total $ 2,074 $ 65 $ 16,871 $ 1,816
The total amount of revenue (inflows of resources) relating to leases recognized in the current fiscal year is as
follows:
Governmental Business-Type
June 30, 2022 Activities Activities
Lease revenue $ 280 $ 1,126
Leaseinterest 15 121
The County did not have any leases of assets that are investments, regulated leases, sublease transactions, sale-
leaseback transactions, or lease-leaseback transactions requiring disclosure.
County as Lessee
The County entered into various contracts as lessee primarily for office space, land, equipment, and office
equipment. Lease terms vary, with current agreements going out until fiscal year 2051-2052. For agreements
with renewal options the County included these renewal periods in the lease term when it is reasonably certain
that the renewal option(s) will be exercised. For contracts that contain termination options for either party to
exercise (cancellable period), these periods are excluded from the lease liability calculation. The County's lease
contracts generally do not include restrictive financial or other covenants. Certain leases require additional
payments for maintenance, which are expensed as incurred. The County's lease arrangements do not contain any
material residual value guarantees. When the borrowing rate is not stated in the contract, or readily available, the
County uses the Treasury Quarterly Yield percentage to discount the lease payments. The agreements currently
use a discount rate ranging from 0.51% to 4.55% to measure the present value of the lease payments expected
to be paid during the lease term period.
65
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
The future principal and interest lease payments as of June 30, 2022, are as follows:
Governmental Activities Business-Type Activities
Year Ending
June 30, Principal Interest Principal Interest
2023 $ 4,094 $ 597 $ 86 $ 1
2024 4,158 568 86 1
2025 4,158 536 37 -
2026 4,050 505 16 -
2027 3,935 478 12 -
2028-2032 18,574 2,013 13 -
2033-2037 17,013 1,415 - -
2038-2042 13,267 909 - -
2043-2047 13,216 492 - -
2048-2052 9,783 125 - -
Total $ 92,248 $ 7,638 $ 250 $ 2
The County did not have any sublease transactions, sale-leaseback transactions, or lease-leaseback transactions
requiring disclosure.
7. RISK MANAGEMENT
The County is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The County has self-insurance programs for liability,
workers' compensation, unemployment insurance and dental coverage. There were four liability claim settlements
and there were six workers' compensation claim settlements that have exceeded insurance coverage during the
past three fiscal years. Insurance coverage for liability and workers' compensation above the County's self-insured
retention (SIR) is provided through Public Risk Innovation, Solutions, and Management (PRISM). The County is a
member of PRISM, a joint powers authority whose purpose is to develop and fund programs of excess insurance
for its member counties. The authority is solvent; self-insurance and authority limits are as follows:
Tvpe of CoveraQe Self-Insurance Authori
Liability $ 250,000 per occurrence $ 25,000,000
Workers'Compensation $ 350,000 per occurrence Statutory
Unemployment $ 338,651 maximum -----
Dental None—Funded by Employees -----
Annual actuarial valuations are obtained for the Workers' Compensation and the Liability Funds. These valuations
provide the basis for premiums charged to insured departments. The County's SIR amounts are paid directly,
without the use of purchased annuity contracts. Financial information on PRISM is available on request from the
OfFice of Risk Management, County of San Luis Obispo.
The estimated claims liability for the Protected Self-Insurance Fund was recorded at a discounted 85% confidence
level, and the estimated liability for the Workers' Compensation Self-Insurance Fund was also recorded at a
discounted 85% confidence level.
Beginning of Current year claims,
the fiscal year changes& Balance at fiscal
liability estimates Claim payments year-end
2020-21 $ 20,140 $ 6,892 $ 6,016 $ 21,016
2021-22 $ 21,016 $ 6,765 $ 5,521 $ 22,260
66
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
8. INTERFUND RECEIVABLES AND PAYABLES
The composition of interfund balances as of June 30, 2022, was (in thousands):
Pavable Fund (Due to Balance) Receivable Fund (Due from Balance) Amount
Nonmajor Governmental Funds Capital Projects Fund $ 1,541
Nonmajor Enterprise Funds Nonmajor Governmental Funds 400
Total $ 1,941
The SLO County Financing Authority owes the Capital Projects Fund $1,541 for bond proceeds for the Animal
Services Facility.
County Service Area 10 Enterprise Fund owes $400 to the County Service Area 10 Special Revenue Fund for costs
relating to the Cayucos strand water tank project.
Payable Fund (Advances from Balance� Receivable Fund (Advances to Balance� Amount
Capital Projects General Fund $ 200
Nonmajor Governmental Funds General Fund 247
Nonmajor Enterprise Funds 40
287
Nonmajor Enterprise Funds General Fund 140
Nonmajor Governmental Funds 383
523
Airport Fund General Fund 5,372
Los Osos Wastewater Fund Nonmajor Governmental Funds 1,755
Total $ 8,137
Advances related to the General Fund include an internal loan of $200 to the Capital Projects Fund to fund the
Cayucos Veteran's Hall rehabilitation, an internal loan to the County Services Area 21 Special Revenue Fund of$9,
and a loan of$238 related to the restoration of the Cayucos Pier. Nonmajor Governmental Funds'advances from
Nonmajor Enterprise Funds of $40 is for future debt payments from the Lopez Park Enterprise Fund to the Parks
Special Revenue Fund.
The Nonmajor Enterprise Funds advances of$523 represent internal loans received by the County Services Areas
from the County Services Area 10 Special Revenue Fund ($255) and County Service Area 23 Fund ($19), and from
the General Flood Control Zone Special Revenue Fund ($128). The Golf Fund also received $121 from the General
Fund.
The Airport owes the General Fund $5,372 for internal loans for various projects including the refinancing of a State
loan for the construction of hangars and the new terminal.
The Los Osos Wastewater Fund received a long-term operating loan from the General Flood Control Zone Special
Revenue Fund of$1,755.
67
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
9. TRANSFERS
A reconciliation of transfers is detailed below (in thousands):
Transfer From Transfer To Amount
General Fund Nonmajor Governmental Funds $ 25,573
Capital Projects Fund 7,164
Internal Service Funds 510
Nonmajor Enterprise Funds �Z
Los Osos Wastewater Fund 31
33,350
Nonmajor Governmental Funds Capital Projects Fund 9,083
Nonmajor Governmental Funds 1,596
General Fund 584
Nonmajor Enterprise Funds 24�
State Water Project Fund 243
11,753
Airport Fund General Fund 204
Nonmajor Governmental Funds 83
287
Los Osos Wastewater Fund Nonmajor Governmental Funds 17
Nonmajor Enterprise Funds Nonmajor Governmental Funds 54
General Fund 23
77
Internal Service Funds Nonmajor Governmental Funds 1,221
Total Transfers $ 46,705
General Fund Transfers
General Fund transfers to Nonmajor Governmental Funds included contributions to the following Special Revenue
Funds:
• Pension Obligation Bond Debt Service Fund ($11,163) to finance debt service payments.
• Roads ($10,864) to fund various road improvement projects.
• Parks ($2,801) from COVID-19 designations for revenue restoration and American Rescue Plan Act (ARPA)
revenues for capital projects.
• Library ($668) for budget appropriated uses.
• Community Development ($39) for budget appropriated uses.
• Flood Control Zone ($38) for the water resource data enhancement project.
General Fund transfers to the Capital Projects Fund ($7,164) were made for various capital projects including the
Women's' Jail, Co-located Dispatch Center, and initial costs associated with the new Probation Department
building.
General Fund transfers to the Internal Service Funds (ISF) were made for purchase of an electric generator to
the Garage ISF ($80) and ARPA revenue funding to the Public Works ISF ($184) and Workers Compensation ISF
($246).
General Fund transfers to Nonmajor Enterprise Fund include the following contributions:
• County Service Areas ($59) for ARPA revenue funding.
• Golf Fund ($13) for budget appropriated uses.
General Fund transfers to the Los Osos Wastewater Fund ($31) were made for ARPA revenue funding.
68
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Nonmajor Governmental Funds
Public Facilities Fees Fund transferred:
• $559 to the Parks Special Revenue Fund for the Nipomo Skate Park ($477) and Cave Landing
improvements ($82) projects.
• $31 to the Capital Projects Fund for park trails projects.
Parks Fund transferred:
• $123 to the General Fund for off-highway motor fines.
• $97 to the Pension Obligation Bond Debt Service Fund to finance debt service payments.
• $1 to the Lopez Park Enterprise Fund for debt service.
Roads Fund transferred:
• $110 to the General Fund for debt service payments.
• $4 to the Flood Control District Special Revenue Fund.
Roads Impact Fees Fund transferred:
• $644 to the Roads Fund for capital and maintenance projects.
• $351 to the General Fund for debt service payments.
Library Fund transferred $261 to the Pension Obligation Bond Debt Service Fund to finance debt service
payments.
Driving Under the Influence Programs Fund transferred $31 to the Pension Obligation Bond Debt Service Fund
to finance debt service payments.
Flood Control Districts Fund transferred $243 to the State Water Project Fund for the preliminary planning and
design phase of the Department of Water Resources Delta Conveyance Project County Service Area Funds
transferred $246 to Enterprise County Service Area Funds for budget appropriated uses.
Debt Service Financing Authority Fund transferred $9,052 to the Capital Projects Fund for 2020 Series A Lease
Revenue bond proceeds for construction of the Animal Services Facility.
Major Enterprise Funds
The Airport Fund transferred:
• $204 to the General Fund for debt service payments on construction of the new airport terminal.
• $83 to the Pension Obligation Bond Debt Service Fund to finance debt service payments.
The Los Osos Wastewater Fund transferred $17 to the Flood Control District Fund for debt service payments.
Nonmajor Enterprise Funds
The Golf Fund transferred $54 to the Pension Obligation Bond Debt Service Fund to finance debt service
payments.
County Service Area Funds transferred $23 to the General Fund for debt service payments.
Internal Service Funds (ISF�
Both the Garage ISF and the Public Works ISF transferred to the Pension Obligation Bond Debt Service Fund to
finance debt service payments. The Garage ISF transferred $52, and the Public Works ISF transferred $1,169.
69
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
10. BONDED INDEBTEDNESS AND LONG-TERM DEBT
Changes in Long-term Liabilities
Long-term liability activity for the year ended June 30, 2022, is as follows (in thousands):
Beginning Ending
Balance Restatements& Balance Due within
Governmental Activities Julv 1, 2021 Adiustments Additions Reductions June 30, 2022 one vear
Bonds and notes payable:
Certificates of participation (COP) $ 11,272 $ - $ - $ 1,145 $ 10,127 $ 1,199
Certificates of participation from g,347 - - 184 8,163 190
direct borrowings
Unamortized premium on COP 619 - - 89 530 -
Unamortized premium on lease 3,837 - 185 3,652 -
revenue bonds
State notes from direct borrowings 1,586 - - 160 1,426 162
Pension Obligation Bonds 89,825 - 3,565 85,112 10,225
Lease Revenue Bonds 19,970 - - 590 19,380 610
Assessment Bonds from direct 391 - - 47 344 50
borrowings
Total bonds and notes payable 135,847 (1,148) - 5,965 128,734 12,436
Leases - 92,248 - - 92,248 4,094
Other liabilities:
Compensated absences 37,630 - 18,358 20,573 35,415 24,108
Landfill post-closure costs 7,245 - 1,556 629 8,172 921
Self-insurance 21,016 - 6,765 5,521 22,260 4,714
Total other liabilities 65,891 - 26,679 26,723 64,847 29,743
Total Governmental Activities $ 201,738 $ 91,100 $ 26,679 $ 32,688 $ 286,829 $ 46,273
70
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Beginning Restatements Ending
Balance & Balance Due within
Business-Tvpe Activities Julv 1, 2021 Adiustments Additions Reductions June 30, 2022 one vear
Bonds and notes payable:
Certificates of participation (COP) $ 10,148 $ - $ - $ 935 $ 9,213 $ 981
Certificates of participation from direct 2 g18 - 2,691 54 5,455 104
borrowings
Unamortized premium on COP Z29 - - 33 196 -
State notes from direct borrowings 88,385 - - 3,857 84,528 3,826
Other notes from direct borrowings - - 196 - 196 21
Revenue bonds 155,330 - - 4,745 150,585 4,990
Unamortized premium on revenue 7,653 - - 423 7,230 -
bonds
General obligation bonds 6,540 - - 510 6,030 540
Unamortized premium on general 564 - - 56 508 -
obligation bonds
Assessment bonds 72,483 - - 1,505 70,978 1,541
Total bonds and notes payable 344,150 - 2,887 12,118 334,919 12,003
Leases - 250 - - 250 86
Other liabilities:
Compensated absences 529 - 184 228 485 264
Total other liabilities 529 " 184 228 485 264
Total Business-Type Activities $ 344,679 $ 250 $ 3,071 $ 12,346 $ 335,654 $ 12,353
Annual debt service requirements for governmental activities as of June 30, 2022, are summarized as follows:
Governmental Activities
Certificates of Participation,
Including Direct Borrowings Pension Obligation Bonds
Unaccreted
Year Ended June 30, Principal Interest Principal Appreciation Total
2023 $ 1,389 $ 671 $ 9,947 $ 278 $ 10,225
2024 1,442 611 9,981 869 10,850
2025 1,513 547 10,002 1,503 11,505
2026 1,572 485 10,009 2,176 12,185
2027 1,639 420 9,996 2,894 12,890
2028-2032 3,369 1,454 35,177 16,563 51,740
2033-2037 2,729 950 - - -
2038-2042 1,577 554 - - -
2043-2047 1,836 270 - - -
2048-2052 404 93 - - -
2053-2057 441 57 - - -
2058-2062 379 17 - - -
Total $ 18,290 $ 6,129 $ 85,112 $ 24,283 $ 109,395
71
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Governmental Activities(Continued)
State Notes, Assessment Bonds,
Including Direct Borrowings Lease Revenue Bonds Including Direct Borrowings
Year Ended June 30, Princi al Interest Principal Interest Principal Interest
2023 $ 162 $ 14 $ 610 $ 763 $ 50 $ 17
2024 163 12 635 738 53 15
2025 165 11 665 712 56 12
2026 166 9 685 685 58 8
2027 168 7 715 657 62 5
2028-2032 602 12 4,060 2,821 65 2
2033-2037 - - 4,960 1,922 - -
2038-2042 - - 4,140 1,009 - -
2043-2047 - - 2,910 178 - -
Total $ 1,426 $ 65 $ 19,380 $ 9,485 $ 344 $ 59
Business-Type Activities
Certificates of Participation, State Notes,
Including Direct Borrowings Including Direct Borrowings Revenue Bonds
Year Ended June 30, Princiqal Interest Principal Interest Princiqal Interest
2023 $ 1,085 $ 583 $ 3,826 $ 1,753 $ 4,990 $ 6,817
2024 1,135 530 3,737 1,668 5,250 6,558
2025 1,193 473 3,800 1,584 5,525 6,283
2026 1,248 415 3,885 1,499 5,815 5,994
2027 1,314 353 3,971 1,413 6,120 5,689
2028-2032 4,414 969 17,610 5,766 35,140 23,895
2033-2037 720 516 14,354 4,207 44,250 14,786
2038-2042 831 404 15,848 2,713 43,495 3,739
2043-2047 964 272 17,497 1,064 - -
2048-2052 842 133 - - - -
2053-2057 476 59 - - - -
2058-2062 446 20 - - - -
Total $ 14,668 $ 4,727 $ 84,528 $ 21,667 $ 150,585 $ 73,761
Business-Type Activities(Continued)
Assessment Bonds, Other Notes
General Obligation Bonds Including Direct Borrowings Including Direct Borrowings
Year Ended June 30, Prfncipal Interest Prfncipal Interest Prfncipal Interest
2023 $ 540 $ 300 $ 1,541 $ 1,931 $ 21 $ -
2024 565 271 1,587 1,888 41 -
2025 595 239 1,632 1,844 41 -
2026 630 206 1,677 1,798 41 -
2027 665 170 1,722 1,751 41 -
2028-2032 3,035 314 9,357 8,008 11 -
2033-2037 - - 10,753 6,628 - -
2038-2042 - - 12,332 5,043 - -
2043-2047 - - 14,143 3,226 - -
2048-2052 - - 16,234 1,140 - -
Total $ 6,030 $ 1,500 $ 70,978 $ 33,257 $ 196 $ -
Long-term liabilities at June 30, 2022, consisted of the following:
Original
Date of Semi Annual Issue Outstanding
Issue Maturity Interest Rates Installments Amount at 6/30/2022
Governmental Activities
Certificates of Participation
2007 Series A 3/O1/2007 2036 4%-4.25% $7-$307 $5,090 $3,370
Used to finance the construction of the Paso Robles Courthouse building. Debt service is provided by court fines specifically designated
and restricted for new construction or major renovation of court facilities. Collateral for this debt are the Paso Robles Courthouse
building and the County Department of Social Services building located in the City of San Luis Obispo.
2012 Series A 7/17/2012 2027 0.5%-5.0% $28-$1,289 14,427 6,756
Lease Revenue Refunding Bonds used to refund the 2002 A Certificates of Participation. The original COP was partially used to
72
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
finance a portion of the new government center. Debt service is provided by semi-annual payments funded by general County
revenues. Collateral for this debt are the County properties located in the City of San Luis Obispo namely the Old Courthouse,
Courthouse Annex B and Courthouse Annex C.
IBank Loan 10/O1/2016 2046 3.75% $5-$320 6,000 5,372
A direct borrowing from the California lnfrastructure&Economic Development Bank(IBank) used for the final construction costs of
the new terminal building at the San Luis Obispo County Regional Airport.The debt is backed by the General Fund and repaid using
a combination of Passenger Facility Charges, Customer Facility Charges, and other local funding from Airport operations. Collateral
for this debt initially consisted of the 2"d floor office spaces and the subterranean level 1(also known as P1)located at 1055 Monterey
St.,City of San Luis Obispo. A collateral substitution was requested by the County to free up this original collateral to use as collateral
forthe Lease Revenue Bonds 2020A and Lease Revenue Refunding Bonds 2020B. Said substitution was approved by IBank on
November 20, 2019 per its Resolution 19-22. Collateral was replaced by the County of San Luis Obispo Public Library and Office
Building located at 6555 Capistrano Ave.,Atascadero.
Oceano Draina4e Proiect 2/O1/2021 2061 1.75% $1-$98 2,841 2,792
A direct borrowing from the USDA used to finance a storm drain improvement project on Highway 1 &13th street in Oceano,CA.
Debt service is provided by the County's General Fund. The loan is secured by a Certificate of Participation bond with first lien
position in the amount of$2,841 fully registered as to both principal and interest in the name of the United States of America,
acting through the United States Department of Agriculture.
$28,358 $18,290
State Note 10/8/2015 2030 1.00% $88 $2,197 $1,426
A direct borrowing from the California Energy Commission (CEC) to be used for energy conservation projects. Projects to be
implemented by the loan were identified through the Sustainable Solutions Turnkey program with PG&E. These projects will provide
estimated long-term energy savings to the County of$140 annually.
Pension Obligation Bonds
Used to refund the Unfunded Actuarial Accrued Liability(UAAL) due to the Pension Trust as of July 2, 2003, as determined by an
outside actuary. Debt service payments are expected to be funded by County payroll benefits.
2003 Series C Capital
Aqqreciation Bonds(CAB� 7/2/2003 2030 5.27%-5.73% zero-$15,000 $44,199 $109,395
2003 Series C CABs Unaccreted
Interest (24,283)
$44,199 $85,112
Lease Revenue Bonds
2020 Lease Revenue Bonds Series A 3/05/2020 2044 4.0% $20-$1,030 $16,145 $15,480
Used to finance the construction and equipping of an Animal Services Facility and pay certain costs of issuance associated with the
2020A Bonds. Debt service is provided by facility charges made by participating cities to the County and the County's General Fund.
Collateral for this debt consists of the County Government Center located at 1055 Monterey St.,City of San Luis Obispo.
2020 Lease Revenue Refunding Bonds
Series B 3/05/2020 2036 4.0% $7-$347 $4,235 $3,900
Used to prepay and refund all of the$5,620 outstanding principal amount of County of San Luis Obispo Certificates of Participation
(Vineyard Drive Interchange Improvements,2008 Series A)and pay certain costs of issuance associated with the 2020B Bonds.
Debt service is provided by development fees.Collateral for this debt consists of the County Government Center located at 1055
Monterey St.,City of San Luis Obispo.
$20,380 $19,380
Original
Date of Interest Semi Annual Issue Outstanding
Issue Maturity Rates Installments Amount at 6/30/2022
Assessment Bonds
Sherwood Drive Under4round Utilitv 12/21/2006 2027 5.45% $2-$67 $818 $344
Assessment District Limited Obligation
Improvement Bond,Series 2006
A direct borrowing originally from Mission Community Bank(now Pacific Premier Bank) used to finance the replacement of overhead
utility lines in the public right-of-way with an underground system,and removal of all overhead lines and supporting structures in the
public right-of-way in the area of Sherwood Drive between Wedgewood Street and Lampton Street,including portions of Castle Street,
Drake Street,Jean Street,and Kerwin Street, in the unincorporated community of Cambria. Debt service is provided by semi-annual
payments from special assessments levied against all benefitted real property within the boundaries of the Sherwood Drive
Underground Utility Assessment District.
73
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Business-Tvne Activities
Certificates of Participation
US Department of Agriculture(USDA� 4/30/2009 2048 4.375% $2-$86 $1,631 $1,372
2009
A direct borrowing from the USDA used to finance a water system improvement project in County Service Area 23. Debt service is
provided by water sales revenues.
2011 Refunding Lopez Dam 6/08/2011 2030 2.0%-5.5% $23-$928 $11,990 $6,720
Remediation
Used to refund the 2000 A COP issue. The original COP was used to improve and retrofit the Lopez Dam. Debt service is provided by
semi-annual lease payments made by the Lopez Flood Control District for the use of the retrofitted facilities.
2012 Series A 10/15/2012 2027 0.5%-5.0% $10-$476 $5,323 $2,493
Lease Revenue Refunding Bonds used to refund the 2002 A Certificates of Participation. The original COP was partially used to finance
the Dairy Creek Golf Course. Debt service is provided by semi-annual lease payments from the Dairy Creek Golf Course. Collateral
for this debt are the County properties located in the City of San Luis Obispo namely the Old Courthouse, Courthouse Annex B and
Courthouse Annex C.
USDA 2013 7/O1/2013 2053 2.75% $19-$67 $1,621 $1,392
A direct borrowing from the USDA used to finance a water system improvement project in County Service Area 10A. Debt service is
provided by water sales revenues.
USDA Cayucos Water Tank Proiect 11/02/2021 2061 1.75% $1-$93 $2,691 $2,691
A direct borrowing from USDA used to finance the Cayucos new water storage tanks which is part of the infrastructure improvement
program for CSA l0A water system to address storage deficiencies, improve redundancy and reliability,and reduce overall system
maintenance costs. Debt service is provided by funds from CSA l0A water sales revenues.
$23,256 $14,668
State Notes
The County has directly borrowed from the State of California Department of Water Resources and the California Department of
Transportation to finance the construction of water systems in unincorporated areas. One of the Los Osos Wastewater Project loans
from the State of California Department of Water Resources was modified with an additional loan amount of$11,023 on 4/29/2021.
Cayucos Water Treatment Facility 1995 2023 3.0315% $87 $3,011 $170
Lopez Recreation Area 2004 2024 2.5132% $10 325 40
Lopez Water Treatment Plant Upgrade 2006 2030 2.60% $836 25,945 11,842
Los Osos Wastewater Project 2011 2046 2.0% $1,565-$2,147 80,484 72,476
$109,765 $84,528
Revenue Bonds
2018 Nacimiento Water Project Revenue 5/07/2018 2040 3.0%-5.0% $158-$9,173 $27,045 $22,925
Refunding Bonds Series A
Used to refund all of the outstanding 2007 Nacimiento Water Project Revenue Bonds Series A which were used to build the Nacimiento
Water Delivery Project. Debt service is provided by water sales revenues of participating cities and districts, payable under water
delivery contracts.
2007 Nacimiento Pipeline Project Series 9/26/2007 2040 5.2%-5.6% $887-$2,636 $38,565 $30,955
B
Used to build the Nacimiento Water Delivery Project. Debt service is provided by water sales revenues of participating cities and
districts payable under water delivery contracts.
2015 Nacimiento WaterProject Revenue 8/19/2015 2038 3.0%-5.0% $159-$8,094 $107,115 $96,705
Refundin4 Bonds Series A
The 2007 bonds were used to build the Nacimiento Water Delivery Project. Debt service is provided by water sales revenues of
participating cities and districts, payable under water delivery contracts. The 2015 Series A Nacimiento Water Project Revenue
Refunding Bonds were issued to provide funds to advance refund certain 2007 Series A Nacimiento Water Project Revenue Bonds.
$172,725 $150,585
General Obligation Bonds
2011 Refunding-Lopez Dam 6/08/2011 2030 2.0%-5.5% $21-$841 $10,760 $6,030
Remediation
Used to refund the 2000 A general obligation(GO) issue. The original GO Bonds were used to improve and retrofit the Lopez Dam.
74
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Debt service is provided by applicable property taxes.
Assessment Bonds
5/24/2012 2051 2.75% $47-$3,472 $83,129 $70,978
Issued to the USDA to finance the construction of the Los Osos Wastewater Project. Debt service is provided by amounts levied
against property owners who benefit from the project.
Other Notes
6/30/2022 2027 0.0% $21 $196 $196
A direct borrowing from PG&E through on-bill financing. The loan issued is an unsecured loan to fully or partially reimburse qualified
PG&E customers for the costs they incur in connection with a qualified energy efficient retrofit project. These proceeds are being used
to install lighting fixture upgrades at the San Luis Obispo County Airport. Debt service is provided by the general Airports revenues.
This project will provide estimated long-term energy savings of$42,000 annually.
Public Facilities Corporation
The SLO County Public Facilities Corporation (PFC)was incorporated on September 7, 1994. The PFC is a nonprofit
public benefit corporation organized to assist public agencies within the County of San Luis Obispo with the
acquisition and construction of various public facilities.
Financing Authority
The San Luis Obispo County Financing Authority was formed on August 22, 2000, as a joint exercise of powers
authority between the County and the Lopez Flood Control District, which administers Lopez Dam. The Authority
was created to assist in the financing,construction,and equipping of public facilities for one or both of the members.
Description of Long-Term Lease Arrangements
The County formed the Public Facilities Corporation and the Financing Authority for the purpose of issuing debt.
On behalf of the County, these two entities issued all currently outstanding certificates of participation and the
Lopez Dam remediation general obligation bond. Therefore, the County makes semi-annual lease payments in lieu
of debt service to these entities from a variety of sources including State and Federal revenues, penalty
assessments, golf course fees, water contract payments, and property taxes. For lease payment details, see above
schedules for specific type of debt.
Description of Special Assessment Bonds
Special assessment debt has been issued to provide funds for the construction of streets, utility and water delivery
systems. These bonds will be repaid from amounts levied against the property owners benefited by this
construction.
The County acts in an agent capacity for the assessment districts. In the event that a deficiency exists because of
unpaid or delinquent special assessments at the time a debt service payment is due, the County must provide
resources to cover the deficiency until other resources, for example, foreclosure proceeds, are received. Special
assessment principal outstanding at June 30, 2022, totals $71,461 with interest rates from 2.52% to 5.45%.
Accrued Vacation and Sick Leave Pay and Compensatory Time Off
County employees have accumulated unpaid vested benefits for compensatory time off, sick leave and vacation
earned of $35,900 at June 30, 2022. The accumulated benefits will be liquidated in future years as employees
elect to use them. In the normal course of business, all payments of these accumulated benefits will be funded
from appropriations in the year in which they are to be paid.
The liability for compensated absences is typically liquidated from the Parks, Driving Under the Influence Program,
Library and General Fund.
75
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Leqal Debt Margin
State statutes limit the amount of general obligation debt a governmental entity may issue to 1.25% of its net
assessed valuation. The current debt limitation for the County is $803,162 with a margin of$797,132.
Direct Placement Debt
The County does not have any direct placement debt as of June 30, 2022.
Direct Borrowinqs
The County's outstanding notes from direct borrowings related to governmental activities of$9,933 contain default
provisions and where applicable (1) the entire obligation becomes due and payable if the County is unable to make
installment/lease payments, and (2) the lessor terminates the lease or re-let the leased premises.
The County's outstanding notes from direct borrowings related to business-type activities of$90,179 contain a
provision that if default continues after the cure period, the entire obligation becomes due and payable.
Rebatable Arbitrage Earnincls
The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax-exempt
bonds after August 31, 1986. Arbitrage regulations deal with the investment of tax-exempt bond proceeds at an
interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can
be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service.
During the current year, the County performed calculations of excess investment earnings and at June 30, 2022
had an arbitrage liability of$148.
11. NET POSITION/FUND BALANCES
NET POSITION
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is
categorized as net investment in capital assets, restricted and unrestricted.
Net Investment in Capita/ Assets - This category groups all capital assets, including infrastructure, into one
component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable
to the acquisition, construction or improvement of these assets reduce the balance in this category.
Restricted Net Position - This category presents net position with external restrictions imposed on its use by
creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law
through constitutional provisions or enabling legislation.
Included in total restricted net position at June 30, 2022, is $16,001 of Public Facility Fees, $11,508 of Road Impact
Fees, and $48 of Wildlife and Grazing programs restricted due to enabling legislation. The remaining $70,932 of
restricted net position is restricted due to restrictions imposed by creditors, grantors, or contributors.
76
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Restricted net position at June 30, 2022, for governmental activities is as follows (in thousands):
Amount
RESTRICTED FOR:
General Government
Purchase obligations for Board of Supervisors professional services $ 2
Purchase obligations for Administrative Office related professional services 338
Purchase obligations for Assessor related equipment maintenance and professional services 9
Purchase obligations for Clerk-Recorder equipment maintenance and professional services 560
Purchase obligations for County Counsel office equipment 4
Purchase obligations for Human Services professional services and software 282
Purchase obligations for Facilities Management related professional services 26
Purchase obligations for Building Maintenance projects 1,049
Purchase obligations for Information Technology related equipment and professional services 357
Purchase obligations for Central Services related professional services 247
Purchase obligations for Auditor-Controller-Treasurer-Tax Collector related professional services 88
Purchase obligations for Talent Development professional services 81
Claims,contracts and other restrictions imposed by grantors or contributors 9,255
Total General Government 12,298
Public Protection
Purchase obligations for Waste Management related professional services 146
Purchase obligations for Grand Jury related supplies 1
Purchase obligations for District Attorney related professional services 48
Purchase obligations for Sheriff-Coroner related equipment and professional services 153
Purchase obligations for Animal Services professional services 18
Purchase obligations for Emergency Services related professional services 35
Purchase obligations for Probation related software, equipment,and professional services 241
Purchase obligations for fire protection related vehicles and equipment 3,709
Purchase obligations for Planning and Building related professional services 2,025
Purchase obligations for flood control related engineering and environmental services 3,797
Wildlife and Grazing programs restricted by enabling legislation 48
Claims,contracts and other restrictions imposed by grantors or contributors 8,689
Total Public Protection 18,910
Health and Sanitation
Purchase obligations for Public Health related professional services and computer software 242
Purchase obligations for Behavioral Health related professional services and computer software 1,611
Claims, contracts and other restrictions imposed by grantors or contributors 15,606
Total Health and Sanitation 17,459
Public Assistance
Claims,contracts and other restrictions imposed by grantors or contributors 3,289
Public Ways and Facilities
Purchase obligations for Public Works related professional services 869
Road impact fees restricted by enabling legislation for road maintenance and construction 11,508
Public facilities fees restricted by enabling legislation for public facilities 16,001
Total Public Ways and Facilities 28,378
Recreation and Cultural Services
Parks equipment and maintenance services 899
Education
Library equipment and vehicles 1
Driving Under the Influence software services 138
Claims,contracts,and other restrictions imposed by grantors or contributors 20
Prepaid expenses 9
Total Education 168
Debt Service 17,088
Total Restricted Net Position $ 98,489
77
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
The Public Works Internal Service Fund reported a deficit in net position of$32,805 at June 30, 2022. This deficit
is mainly due to the fund's net pension liability of$49,965 and the County plans to reduce the deficit with increased
future charges.
The Workers' Compensation and Protected Self-Insurance Internal Service Funds reported deficits in net position
of$4,262 and $3,759, respectively, at June 30, 2022. The deficits are mainly due to increased payouts from each
fund, without sufficient charges to users. Net position for each fund fluctuates and overtime, aims to break-even.
Should deficits continue, the amount charged to users will be increased to offset increasing costs.
FUND BALANCE
In the fund financial statements, governmental funds report fund balance in classifications based primarily on the
extent to which the County is bound to honor the constraints imposed on the use of resources reported in the
funds. In circumstances when an expenditure is made for a purpose for which amounts are available from multiple
fund balance classifications, fund balance is generally depleted in the order of restricted, committed, assigned, and
unassigned.
As prescribed by GASB Statement No. 54, the following classifications are used to identify the components of fund
balance:
• Nonspendab/e Fund Ba/ance — includes amounts that are (a) not in spendable form, or (b) legally or
contractually required to be maintained intact. The ��not in spendable form" criterion includes items that
are not expected to be converted to cash, for example: inventories, prepaid amounts, and long-term notes
receivable.
• Restricted Fund Balance— includes amounts that can be spent only for the specific purposes stipulated by
e�ernal resource providers, constitutionally or through enabling legislation. Restrictions may effectively
be changed or lifted only with the consent of the resource provider.
• Committed Fund Balance— includes amounts that can only be used for the specific purposes determined
by formal action of the County's highest level of decision-making authority. As prescribed by the State of
California County Budget Act, fund balance commitments are established, modified or rescinded by
resolution adopted by a four-fifths vote of the Board of Supervisors at regular or special meetings. The
general reserve, however, is only established, cancelled, increased or decreased at the time of adopting
the budget except in cases of legally declared emergency.
• Assigned Fund Balance—comprises amounts intended to be used by the County for specific purposes that
are neither restricted nor committed. As a practice,for financial statement presentation the County Auditor-
Controller-Treasurer-Tax Collector assigns non-restricted and non-committed fund balance of the General
Fund to its intended purpose. Assigned fund balance can be identified by departments and the County
Administrative Officer for specific uses during the County's budgeting process. Budgets requested by
departments require approval by the County Board of Supervisors.
• Unassigned Fund Balance— 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.
78
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Fund balances for all the major and nonmajor governmental funds as of June 30, 2022, are distributed as
follows:
Capital Nonmajor
General Projects Governmental
Fund Fund Funds Total
Nonspendable:
Inventories $ 118 $ - $ - $ 118
Prepaid items 578 - 9 587
Advances to other funds 5,959 - - 5,959
Subtotal 6,655 - 9 6,664
Restricted for:
General Government 3,400 - - 3,400
programs&encumbrances
Automation projects 3,601 - - 3,601
Tax reduction reserves 3,990 - - 3,990
Public Protection programs 9,743 - - 9,743
Public Ways and Facilities 542 - - 542
programs&encumbrances
Health and Sanitation 1,853 - - 1,853
programs&encumbrances
Mental Health Services Act 2,774 - - 2,774
Public Assistance programs& 13 - - 13
encumbrances
Recreation programs 136 - - 136
Lease financing 8 - - 8
Public facilities - - 16,001 16,001
Traffic impact programs - - 11,508 11,508
Flood Control Districts -
services - 3,795 3,795
Library equipment& - - 1 1
maintenance services
Driving Under the Influence - - 137 137
services
Community Service Areas - - 92 92
road maintenance
Wildlife and grazing programs - - 48 48
Parks equipment and _ _ 2g5 285
maintenance services
Debt service - 765 21,888 22,653
Subtotal $ 26,060 $ 765 $ 53,755 $ 80,580
79
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Capital Nonmajor
Projects Governmental
General Fund Fund Funds Total
Committed to:
Maintenance projects $ 6,879 $ - $ - $ 6,879
County Counsel services 503 - - 503
Human Resources services 156 - - 156
Clerk Recorder services - - - -
IT projects 108 - - 108
Other general government 10,427 - - 10,427
Fire services and equipment 6,727 - - 6,727
Waste Management programs 572 - - 572
Sheriff-Coroner programs 374 - - 374
Other public protection 224 - - 224
Public Health programs 849 - - 849
Behavioral Health programs 70 - - 70
Social Services programs 460 - - 460
Public works engineering& 36 - - 36
consulting services
Community parks programs 13 - - 13
Fish and Game programs - - 215 215
Flood Control programs - - 19,690 19,690
Lighting programs - - 426 426
Community Development _ _ 21,710 21,710
programs
Emergency Medical Services - - 583 583
Roads - - 24,650 24,650
Community Service Areas - - 2,993 2,993
Driving Under the Influence _ _ 312 312
programs
Library - - 5,103 5,103
Parks - - 3,401 3,401
General reserve 13,000 - - 13,000
SB1090 Economic 12,763 - - 12,763
development
COVID-19 services 17,722 - - 17,722
Internalfinancing 5,280 - - 5,280
Solar plant safety 843 - - 843
Solar plant mitigation 15,640 - - 15,640
Automation projects 19,805 - - 19,805
Prado Rd Interchange project 1,435 - - 1,435
Talent Development 1,822 - - 1,822
Rainy Day Fund 7,908 - - 7,908
Building replacement 47,149 - - 47,149
Tax reduction reserve 42,387 - - 42,387
Lease financing 960 - - 960
Capital Projects - 17,540 - 17,540
Subtotal $ 214,112 $ 17,540 $ 79,083 $ 310,735
80
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Capital Nonmajor
Projects Governmental
General Fund Fund Funds Total
Assigned to:
Tax reduction reserve $ 27,238 $ - $ - $ 27,238
Clerk-Recorder services 1,558 - - 1,558
IT projects 251 - - 251
General government 14,704 - - 14,704
Sheriff-Coroner&Emergency 14,914 - - 14,914
Services programs
Probation programs 13,880 - - 13,880
District Attorney programs 4,668 - - 4,668
Planning programs 2,233 - - 2,233
Other public protection 4,420 - - 4,420
programs
Foster Care&Social Services 20,277 - - 20,277
programs
Law Enforcement Medical 555 555
Care services - -
Veterans'Services programs 169 169
Public ways and facilities 2,197 - - 2,197
Behavioral Health programs 21,690 - - 21,690
Public Health programs 8,469 - - 8,469
Parks programs 11 - - 11
Subsequent Fiscal Year 52,665 - - 52,665
Budget
Imprest cash 138 - - 138
Subtotal $ 190,037 $ - $ - $ 190,037
Total $ 436,864 $ 18,305 $ 132,847 $ 588,016
12. LAPSING ENCUMBRANCES
The County allows some encumbrances to lapse at year-end and then automatically reappropriates them as part
of the subsequent year's budget.
The following is a summary of lapsing encumbrances at June 30, 2022, to be reappropriated during the next fiscal
year (in thousands):
Fund Total Encumbrances
General Fund $ 3,579
Capital Projects Fund 6,870
Nonmajor Governmental Funds 10,124
Total Lapsing Encumbrances $ 20,573
81
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
13. OTHER COMMITMENTS
In 1965, San Luis Obispo County Flood Control and Water Conservation District (District) began payments in
accordance with a contract with the State Department of Water Resources(DWR)for a water supply from the State
Water Project. Estimated future principal payments for the State Water contract will total $24,482 over the next 13
years. The estimated amounts vary by year. For example, the principal amount due in 2022 is $1,247 while $2,431
is due in 2035. In 1992 the District entered Water Supply Contracts, of like terms, with various sub-contractors
which presently provide resources to cover approximately 85% of the capital costs. The contract with the DWR
expires in 2035. A proposed Delta conveyance would require a contract extension agreement for financing beyond
2035.
14. CONTINGENT LIABILITIES
The County is subject to various lawsuits, inverse condemnation cases, personnel actions, disputes over tax
assessments, and other actions incidental to the ordinary course of County operations. The County is not aware
of any potential claims against the County not covered by insurance, resulting from litigation that would materially
affect the financial statements of the County at June 30, 2022.
15. LANDFILL POSTCLOSURE CARE COSTS
The Los Osos Landfill is a closed facility under the responsibility of the County. State and federal laws and
regulations require the County of San Luis Obispo to perform various maintenance and monitoring activities at the
site. By agreement with the landowner, the County assumed responsibility for all closure and postclosure costs
when the facility stopped accepting waste. As of the date of this report, the landfill closure is complete and only
postclosure costs remain.
The remaining estimated liability for landfill postclosure cost as of June 30, 2022, is $8,172 (in 2022 dollars). Of
this, $4,795 is for the Maintenance Cost and $3,377 is the Corrective Action Cost. The cost estimates were provided
by a licensed professional geologist in the Postclosure Maintenance Plan dated May 2017 and revised cost dated
May 29, 2018, and the Engineers Estimate of Corrective Action Update dated July 27, 2021. Both reports are
required to be updated every five years. However, the actual cost of postclosure care may be higher (or lower)
due to inflation, changes in technology, or changes in landfill laws and regulations. Therefore, the cost estimate
will be reviewed and adjusted as needed for changes in these factors.
16. TAX ABATEMENTS
Tax abatements are agreements between the County and individuals or entities in which the County promises to
forgo tax revenues and the individual or entity promises to take specific action that contributes to San Luis Obispo
county's economic development or otherwise benefits the county's citizens.
The County offers property tax abatements through the Agricultural Preserve Program (Program), as provided by
the California Land Conservation Act of 1965 also known as the��Williamson Act". The purpose of the Program is
to protect agricultural lands and limited types of open space and outdoor recreation lands of statewide importance.
Local agreements are administered under the County Rules of Procedure to Implement the Land Conservation Act
of 1965 which were first adopted in 1972. Participation in the program is voluntary; the agricultural preserve is
established at the landowner's request if program criteria are met. Once a landowner enters into a contract with
the County, the land is reassessed based on the agricultural income producing capability of the land, and the
abatement is determined by specific dollar amount.
To be eligible for the Program, individual properties must be within a rural use category and meet a minimum size
requirement of 40-100 acres depending on the type of land being preserved. Landowners must agree to keep the
land in large parcels ranging from 20-320 acres, not to create new parcels smaller than the applicable minimum,
82
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
and not to create separate conveyance of an existing parcel that would result in separate ownership smaller than
the agricultural preserve minimum parcel size. In return, the County will reassess the property on the basis of the
agricultural income producing capacity of the land.
The minimum term of a contract is 20 years, except for properties located within one mile of an urban reserve line
or adjacent to a village reserve line which are eligible for a 10-year minimum term contract. Non-renewal is the
most common method for a landowner to terminate a land conservation project; however, a property owner may
request cancellation of a land conservation contract in order to terminate the contract on all or a portion of the
property within one year after an application is accepted for processing.
Under the nonrenewal process, the annual tax assessment increases over a defined period until the assessment
reflects the Proposition 13 value, including the annual inflationary factor, of the property. Under the cancellation
process, a significant one-time cancellation fee is assessed based upon a certain percentage of the current fair
market value of the property.
For the fiscal year ended June 30, 2022, the Agricultural Preserve Program tax abatements were $16,537.
17. DEFINED BENEFIT PENSION PLAN
Description of the System that Administers the Pension Plan
The Pension Trust is a public employee retirement system established by the County of San Luis Obispo on
November 1, 1958. Ten years later the Board of Supervisors adopted the present By-Laws and the San Luis Obispo
County Employees Retirement Plan (the��Plan'� to provide retirement benefits to the employees of the County.
The Pension Trust is administered by the Board of Trustees to provide retirement, disability, death, and survivor
benefits for its members.
Plan Description
The County of San Luis Obispo (the "County") contributes to the San Luis Obispo County Employees Retirement
Plan (the��Plan'�, which is an independent multiple-employer cost sharing contributory defined benefit pension plan
consisting of six employers: the County of San Luis Obispo (the��Employer'�, the Superior Court in San Luis Obispo
County,the San Luis Obispo Local Agency Formation Commission,the San Luis Obispo Air Pollution Control District,
the San Luis Obispo County Pension Trust, and the San Luis Obispo Regional Transit Authority. The Plan exists,
operates and is constituted under the authority of Section 53215 of Section 17 of Article XVI of the California
Constitution and the Government Code Article 1.5 (Pension Trusts), of Chapter 2 (Officers and Employees), of Part
1 (Powers and Duties Common to Cities, Counties and Other Agencies), of Division 2 (Cities, Counties and Other
Agencies), of Title 5 (Local Agencies) of the California Government Code.
Pursuant to the foregoing California Government Code provisions, the County of San Luis Obispo Board of
Supervisors established the San Luis Obispo County Pension Trust (the"Trust'� by the adoption of Chapter 2.56 of
the San Luis Obispo County Code. Following the adoption of Chapter 2.56 of the County Code, the Board of
Supervisors adopted the By-Laws of the Pension Trust. The San Luis Obispo County Employees Retirement Plan is
part of those By-Laws. The County of San Luis Obispo Board of Supervisors has the sole authority to amend the
Plan's provisions.
Participation in the Plan is mandatory for all regular employees. Participants are currently broken into 3 Tiers
depending on date of hire:
Tier 1 Tier 1 generally includes members hired before January 1, 2011.As of December 31, 2021,there were
801 active Count em lo ed members in Tier 1.
Tier 2 generally includes members hired on or after January 1, 2011 but before January 1, 2013. Tier
Tier 2 2 only applies to members hired after the date each bargaining unit adopted Tier 2. Members hired in
a bar ainin unit that did not ado t Tier 2 are considered Tier 1 members. As of December 31 2021
83
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
there were 280 active Count em loyed members in Tier 2.
Tier 3 Tier 3 includes all members hired on or after January 1, 2013. As of December 31, 2021, there were
1,526 active Coun em lo ed members in Tier 3.
The Trust and the Plan are both administered by the San Luis Obispo County Pension Trust Board of Trustees (the
��Trustees'�. Separate stand-alone financial statements are issued for the Plan and are available at the County of
San Luis Obispo Auditor-Controller-Treasurer-Tax Collector's office.
The Plan's financial statements are prepared on the accrual basis of accounting. All assets are invested and held
pursuant to, and in accordance with, the Investment Policy of the Plan. Plan member contributions are recognized
in the period in which the contributions are due. Employer contributions are recognized when due pursuant to
formal commitments and statutory or contractual requirements. Benefits and refunds are recognized when due and
payable in accordance with the terms of the Plan.
Plan investments are reported at fair value. Short-term investments are reported at cost, which approximates fair
value. All other securities are valued at the last reported market price at current exchange rates.
Summary of Plans and Eligible Participants
The active number of County employees and their respective tiers covered by the benefit terms as of December
31, 2021, are shown in the following table:
Tiers Summa of Plan Active members
Vested after accumulation of five years of Pension Trust service credit &
Miscellaneous Tier 1 eligible to receive a Service Retirement Allowance after vesting and 642 members
attainin a minimum a e of 50.
Vested after accumulation of five years of Pension Trust service credit &
Miscellaneous Tier 2 eligible to receive a Service Retirement Allowance after vesting and 232 members
attainin a minimum a e of 50.
Vested after accumulation of five years of Pension Trust service credit&
Miscellaneous Tier 3 eligible to receive a Service Retirement Allowance after vesting and 1,317 members
attainin a minimum a e of 52.
Vested after accumulation of five years of Pension Trust service credit &
Probation Tier 1 eligible to receive a Service Retirement Allowance after vesting and 70 members
attainin a minimum a e of 50.
Probation Tier 2 N/A -
Vested after accumulation of five years of Pension Trust service credit &
Probation Tier 3 eligible to receive a Service Retirement Allowance after vesting and 44 members
attainin a minimum a e of 50.
Vested after accumulation of five years of Pension Trust service credit &
Safety Tier 1 eligible to receive a Service Retirement Allowance after vesting and 89 members
attainin a minimum a e of 50.
Vested after accumulation of five years of Pension Trust service credit &
Safety Tier 2 eligible to receive a Service Retirement Allowance after vesting and 48 members
attainin a minimum a e of 50.
Vested after accumulation of five years of Pension Trust service credit &
Safety Tier 3 eligible to receive a Service Retirement Allowance after vesting and 165 members
attainin a minimum a e of 50.
Benefit Provisions
Members terminating employment before accruing five years of Pension Trust service credit forfeit the right to
receive retirement benefits unless they establish reciprocity with another public agency within the prescribed time-
period. Non-vested members who terminate service are required to withdraw their accumulated contributions plus
accrued interest. The employer contributions forfeited by non-vested members are absorbed back into the pension
trust fund. Members who terminate after earning five years of Pension Trust service credit may leave their
contributions on deposit and upon reaching age eligibility elect to take a retirement. Differences between expected
and actual experience for vested or non-vested benefits may result in an increase or decrease to pension expense
and net pension liability.
84
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Plan participants, upon vesting and attaining the minimum retirement age,are entitled to annual retirement benefits
as defined in the Plan document. The applicable retirement formula, minimum retirement age, compensation base,
post-retirement cost of living adjustment, cost of living adjustment carry over, and final compensation maximum
may differ depending upon the Plan provisions in effect at the member's date of hire, the member's classification,
the member's age, and the member's bargaining unit. Participants receive their accumulated plan benefits as a life
annuity payable monthly upon retirement. In the event of total and permanent disability, participants, upon
satisfaction of inembership service requirements and other applicable provisions of the Plan, receive disability
benefits as defined in the Plan document. The Plan also provides a death benefit of $1,000 (one-thousand) paid
to a beneficiary or estate if a member dies after retirement.
For members within Tier 1, final average salary is the average monthly salary based on the highest twelve
consecutive months of earnings and may include a compensation pickup for various management bargaining units.
For members with Tier 2 or Tier 3 benefits, final average salary is the average monthly salary based on the highest
thirty-six consecutive months of earnings with no pickup.
The retirement benefit for Tier 1, Tier 2, and Tier 3 members includes post-retirement cost-of-living adjustments
(COLAs) based upon the Consumer Price Index. Tier 1 member COLAs are limited to a maximum of 3% annually.
For Tier 2 and Tier 3 members, COLAs are limited to a maximum of 2% annually. There is no minimum COLA
requirement, and COLAs must be approved by the Board of Trustees annually.
Description of the terms of the plan's deferred retirement option program (DROP�
Deferred Retirement Option Program (DROP): A Tier 1 member age 50 or more with 5 or more years of service
may elect to participate in the Pension Trust's DROP. An equal amount to the amount that would have been paid
had the member retired, is deposited into a DROP account monthly. The addition to the DROP account is increased
each year by the Cost-of-Living Adjustment approved by the Board of Trustees not to exceed 3%per year. Members
electing to enter DROP must participate a minimum of 6 months up to a maximum of 5 years. Upon actual
retirement, the member may receive the accumulated DROP account balance in the form of a lump sum or as an
annuity payment.
Contributions
Plan members are required by statue to contribute to the pension plan. Members'contribution rates are formulated
based on age at date of entry and the actuarially calculated future benefits. The County is required by statute to
contribute the remaining amounts necessary to finance the estimated benefits accrued to its members. Member
and employer contribution rates for each plan are as follows:
EMPLOYER EMPLOYEE
CONTRIBUTION CONTRIBUTION
PLAN RATES RATES
Miscellaneous Tier 1 27.67-29.72% 16.65-26.42%
Miscellaneous Tier 2 27.67-29.72% 8.26-19.52%
Miscellaneous Tier 3 27.18-29.23% 6.64-18.43%
Probation Tier 1 28.18-28.28% 24.43-31.13%
Probation Tier 2 Not negotiated Not negotiated
Probation Tier 3 27.78% 12.95-23.19%
Safety Tier 1 39.49-46.69% 17.72-35.13%
Safety Tier 2 41.71-46.69% 11.95-26.04%
Safery Tier 3 36.36-46.08% 10.75-22.62%
85
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
The County's contributions to the Plan for the past three fiscal years were equal to the required contributions for
each year and are noted in the chart below.
County contributions
Fiscal Year Ended (in thousands)
June 30, 2020 $49,018
June 30, 2021 $53,737
June 30, 2022 $62,935
In addition, the County contributes towards post-employment benefits other than retirement (See Note 18).
The San Luis Obispo County Employees Retirement Plan establishes the basic obligations for employer and member
contributions and benefits to and of the retirement system. The actual employer and member contribution rates in
effect each year are based on recommendations made by an independent actuary that are approved by the Board
of Trustees and adopted by the San Luis Obispo County Board of Supervisors.
The entire Plan is 64.8%funded as of January 1, 2022; since this is a multi-employer cost sharing plan, the funded
status is the same for all employees across the board. In general, this indicates that for every dollar of benefits
due, SLOCPT had approximately 64.8 cents available for payment.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions
Total pension liability represents the portion of the actuarial present value of projected benefit payments
attributable to past periods of service for current and inactive employees. The County's share of the total pension
liability as of December 31, 2021, was $2,248,647. The County's share of the Plan's fiduciary net position was
$1,646,092 as of the same date. As of December 31, 2021, the Plan's fiduciary net position was 73.20% of the
total pension liability.
At June 30, 2022, the County reported a liability of$602,555 for its proportionate share of the net pension liability
of the Plan. The net pension liability was measured as of December 31, 2021.
The total pension liability used to calculate the net pension liability was determined by an actuarial valuation date
of January 1, 2021. The actuarial assumptions used in the January 1, 2021 valuation were based on the results of
an actuarial experience study for the period January 1, 2015 through December 31, 2019. Measurements as of
December 31, 2021, are based on the fair value of assets on that date, and the Total Pension Liability as of the
valuation date, January 1, 2021. The actuarial assumptions were rolled forward to the Pension Trust Plan's fiscal
year-end of December 31, 2021. There were no significant events between the January 1, 2021 valuation date
and the December 31, 2021 measurement date for the Pension Plan's GASB Statement No. 67 valuation.
The County's proportion of the net pension liability was based on a projection of the County's long-term share of
contributions to the Plan relative to the projected contributions of all the Plan's participants, actuarially determined.
At December 31, 2021,the County's proportionate share was 94.06%, compared to 93.64%at December 31, 2020,
an increase of 0.42%.
The General Fund, Parks Fund, Driving Under the Influence Program Fund, and Library Fund have typically been
used to liquidate the net pension liability for governmental activities.
For the year ended June 30, 2022,the County recognized pension expense of$48,881. Pension expense represents
the change in the net pension liability during the measurement period, adjusted for actual contributions and the
deferred recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or method and
plan benefits. At December 31, 2021, the County reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
86
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Deferred Deferred
Outflows of Inflows of
Resources Resources
(in thousands) (in thousands)
Deferred outflows of resources—change in proportion $ 2,467 $ 679
Deferred outflows and inflows of resources—difference between expected and
actualexperience 38,478 -
Deferred outflows of resources—changes in actuarial assumptions 58,561 -
Deferred outflows of resources— net difference between projected and actual
earnings on pension plan investments - 123,333
County contributions subsequent to the measurement date 31,658 -
$ 131,164 $ 124,012
Deferred outflows of resources above represent the unamortized portion of changes to net pension liability,changes
in actuarial assumptions,and the net difFerence between projected and actual earnings on pension plan investments
along with deferred outflows of resources of $31,658 for contributions for the fiscal year ending June 30, 2022
made subsequent to the measurement date of December 31, 2021.
The $31,658 of subsequent contributions will be recognized as reduction of the net pension liability in the fiscal
year ending June 30, 2023. The difference between projected and actual investment earnings on pension plan
investments is amortized over five years on a straight-line basis beginning in the year in which they occur. One-
fifth was recognized in pension expense during the Plan's measurement period, and the remaining difference will
be amortized over the remaining four-year period. Changes in assumptions and difFerence between expected and
actual experience are recognized over the average expected remaining service lives of all employees that are
provided with pensions through the Plan, determined as of January 1, 2021,and is 5 years. The difference between
the actual employer contributions and the proportionate share of the employer contributions during the
measurement period ended December 31, 2021 is also recognized over 5 years.
Amortizable amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in future pension expense as follows:
Year Ending Future Recognition
June 30, (in thousands)
2023 $ 10,499
2024 (23,939)
2025 (4,779)
2026 (6,287)
Thereafter -
Total $ (24,506)
Actuarial Assumptions
The total pension liability in the January 1, 2022 actuarial valuation was determined using the following actuarial
assumptions:
Inflation 2.25%
Amortization growth rate Level percentage of payroll
Salary increases 2.75% plus service-related merit component based on years of services ranging
from 0.00%to 5.25%
COLA increases 2.50%for Tier 1 and 2.00%for Tier 2 and Tier 3
Investment rate of return 6.75%, net of administrative expense
Post-Retirement Mortality Sex distinct PUB-2020 Amount-Weighted, Above Median Income, adjusted by
0.99 for males and 1.01 for females, with generational mortality improvements
using scale MP-2019
The actuarial assumptions used in the January 1, 2020 valuation were based on the results of an actuarial
experience study for the period January 1, 2017— December 31, 2021.
87
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
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 are developed for each major asset class.
These ranges are combined to produce the long-term expected rate of return by weighting the expected future
real rates of return by the target asset allocation percentage, adjusted for expected inflation. The target allocation
and best estimates of real rates of return for each major asset class are summarized in the following table:
Weighted Average Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Cash Equivalents/Short Duration Govt 10% (1.44%)
Equities—Public Market 30% 3.20%
Real Assets 15% 4.70%
Private Markets 30% 5.92%
US Treasury—Long Duration/TIPS 15% (0.91%)
Discount Rate
The discount rate used to measure the total pension liability was 6.75%. The projection of cash flows used to
determine the discount rate assumed that Plan member contributions will be made at the current contribution rate
and that Employer contributions will be made at rates equal to the difference between actuarially determined
contribution rates and the member rate. Based on those assumptions,the Plan's fiduciary net position was projected
to be available to make all projected future benefit payments of current Plan members. Therefore, the long-term
expected rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following table presents the County's portion of the net pension liability calculated using the discount rate of
6.75%, as well as what the County's portion of the net pension liability would be if it were calculated using a
discount rate that is one percentage-point lower, 5.75%, or one percentage-point higher, 7.75%, than the current
rate:
1% Discount 1%
Decrease Rate Increase
(in thousands) (in thousands) (in thousands)
5.75% 6.75% 7.75%
County net pension liability as of December 31, 2021 $911,667 $602,555 $349,840
Pension Plan Fiduciary Net Position
Detailed information about the Plan's fiduciary net position is available in the separately issued San Luis Obispo
County Pension Trust ACFR.
18. POST-EMPLOYMENT HEALTHCARE BENEFITS
General Information about the OPEB Plan
Plan Description
The County's San Luis Obispo County Retiree Health Care Plan (the OPEB Plan), an agent multi-employer defined
post-employment benefit (OPEB) plan is administered by the County utilizing an irrevocable trust. The OPEB Plan
is funded solely by the County for the benefit of its employees. The County assists eligible retirees by paying a
portion of their premiums for medical care. The County Board of Supervisors must approve any modification,
alteration, or amendment of OPEB benefits.
88
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
In April 2010, the County established an irrevocable trust with the California Employer's Retiree Benefit Trust
(CERBT) to prefund the future cost of retiree health insurance benefits. The CERBT is an IRS Section 115 trust
fund administered by CaIPERS. CaIPERS issues a publicly available financial report consisting of financial statements
and required supplementary information for the CERBT. The report may be obtained by writing to CaIPERS, Lincoln
Plaza North, 400 Q Street, Sacramento, CA 95811.
Benefit Eli_i�y and Employees Covered
To be eligible for benefits, a member must be eligible to retire, attain a minimum age of 50-52, depending on date
of hire, and complete a minimum of 5 years of service with the County. In addition, the member must begin
receiving their County pension within 120 days of termination of employment. Members receiving disability
retirements are also eligible to receive the retirement reimbursement. In the event of a retirant's death, qualified
surviving spouses and dependents under the age of 23 are eligible to receive the OPEB benefit.
At June 30, 2022 a total of 4,019 employees were covered by the OPEB Plan's benefit terms:
Active Plan Members 2,690
Inactive Plan Members 1,066
Inactive Plan members entitled to but not yet receiving benefits 263
4,019
Benefits Provided
The County contracts with BCC to provide healthcare, vision, and dental benefits to eligible county retirees and
their dependents.Through BCC, retirees are offered substantially the same health plans as active County employees
as well as unique plans for retirees receiving Medicare benefits.
Retirees who elect to participate in a County-sponsored health insurance plan are eligible to a monthly subsidy
funded by the County's OPEB benefit. In FY 21-22 the County provided the following to eligible retirees:
Employee Healthcare Benefit
Calendar Year 2021 $143 per month
Calendar Year 2022 $149 per month
Contributions
The County makes all contributions to the trustee for investment and reinvestment pursuant to the terms of the
agreement with the CERBT. Employees are not required to contribute to the plan. For the fiscal year ended June
30, 2022, the funding was a combination of direct premium payments to contracted medical, dental and vision
providers, plus a contribution of$704 thousand to the CERBT. The County has selected the Actuarially Determined
Contribution (ADC) funding method of contributing 100% of the ADC to fund the CERBT.
Net OPEB Liabilitv
The County reported a net OPEB liability of$29.6 million as of June 30, 2022. The June 30, 2022, net OPEB Liability
was determined by the actuary using a measurement date of June 30, 2021.
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
89
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
of the calculations.
The total OPEB liability as of June 30, 2022, was determined using the following actuarial assumptions, applied to
all periods included in the measurement, unless otherwise specified:
Discount Rate 6.25%
Inflation 2.25%
Health care cost trend rate 6.7% for FY 2021, gradually decreasing over several
decades to an ultimate rate of 3.8% in FY 2076 and later
yea rs.
Actuarial cost method Entry Age Normal
Amortization method for investment gains and Straight-line amortization over a closed 5-year period
losses
Amortization method for efFects of assumption Straight-line amortization over a period equal to the
changes and experience gains and losses average of the expected remaining service lives of all
members that are provided with OPEB through the plan
Amortization method for ADC purposes Level percentage of payroll over a rolling amortization
period of 13 years
Reimbursement eligibility 40% of all retirants will apply for and receive the
reimbursement
Payroll growth rate 2.75% per annum
Salary increases 2.75% plus service-related merit component
Investment rate of return 6.25%
Post-retirement mortality Males: Pub-2010, Amount-Weighted, Above Median
Income, with generational mortality improvements using
scale MP-2019, and a 99% multiplier.
Females: Pub-2010, Amount-Weighted, Above Median
Income, with generational mortality improvements using
scale MP-2019, and a 101% multiplier.
The withdrawal, retirement, disability, mortality, and salary scale are based on an experience study for the five-
year period ending December 31, 2019 completed for the San Luis Obispo County Pension Trust. Other
assumptions were developed by the actuary based on County experience and actuarial standards.
Discount Rate
The actuarially assumed discount rate of 6.25% per annum, compounded annually, reflects the County's current
policy of pay-as-you-go plus additional funding of the OPEB liability, and the County's ongoing selection of a ��less
conservative"(Strategy 1) portfolio invested by the CERBT. Per GASB guidance, the discount rate was determined
by calculating the single rate that produces the same present value of expected benefit payments as (1) the
expected long-term rate of return on plan assets during the period when projected assets are sufficient to pay
future retiree benefits, and (2) the 20-year municipal bond rate after assets are projected to be exhausted.
90
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
The CERBT Strategy 1 portfolio consists of the following assets managed internally by the California Public
Employees Retirement System (CaIPERS) and/or external advisors:
Long-Term
Expected
Target Nominal Rate
Asset Class Allocation Tar�c et Range of Return
Global Equity 59% plus/minus 5% 7.15%
Fixed Income 25% plus/minus 5% 3.65%
Treasury Inflation-Protected Securities (TIPS) 5% plus/minus 3% 2.82%
Global Real Estate Investment Trusts (REITs) 8% plus/minus 5% 6.68%
Commodities 3% plus/minus 3% 4.13%
Cash - plus 2% -
The long-term expected real rate of return, net of expenses, for CERBT Strategy 1 is assumed to be 6.25%.
Changes in the Net OPEB Liabilitv
The table below shows the changes in the total OPEB liability, the OPEB Plan fiduciary net position, and the net
OPEB liability over the past fiscal year in thousands:
Tota I
OPEB Plan Fiduciary Net OPEB
Liability Less Net Position Equals Liability
Balances as of June 30, 2021 $56,157 $21,570 $34,587
Projected Changes for fiscal year-end June 30, 2022:
Service Cost 1,796 - 1,796
Interest Cost 3,525 - 3,525
Differences between expected and actual experience (650) - (650)
Actuarial Gains/Losses - - -
Change in Assumptions - - -
Changes of Benefit Terms - - -
Employee Contributions - - -
Employer Contributions - 3,693 (3,693)
Net Investment Income - 5,990 (5,990)
Other Additions - - -
Benefit Payments (3,166) (3,166) -
Administrative Expenses - (8) 8
Other Deductions - - -
Net Projected Changes 1,505 6,509 (5,004)
Projected Balances as of June 30, 2022 $57,662 $28,079 $29,583
Total OPEB liability represents the portion of the actuarial present value of projected benefit payments to be
provided to current and inactive employees that is attributable to the employees' past periods of service. Plan
fiduciary net position describes the resources available to pay for the cost of OPEB benefits. The Net OPEB liability
is the amount remaining after the OPEB Plan's fiduciary net position is offset against the County's total OPEB
liability. Governmental funds contributing towards liquidating the liability include the General Fund, Driving Under
the Influence Fund, Library Fund, and Parks Fund.
At June 30, 2021, the OPEB Plan's fiduciary net position was 48.7% of the total OPEB liability.
91
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Costs
The following table presents the net OPEB liability calculated using the discount rate of 6.25%, as well as what the
liability would be if it were calculated using a discount rate that is one percentage-point lower, 5.25%, or one
percentage-point higher, 7.25%, than the current rate:
1% Discount 1%
Decrease Rate Increase
(in thousands) (in thousands) (in thousands)
5.25% 6.25% 7.27%
Net OPEB Liability $36,348 $29,583 $23,955
The sensitivity of the Net OPEB liability to changes in healthcare trend rates is presented below:
1% Trend 1%
Decrease Rate Increase
(in thousands) (in thousands) (in thousands)
5.7% 6.7% 7.7%
Net OPEB Liability $22,962 $29,583 $37,655
OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the County recognized OPEB expense of$8,230. OPEB expense represents the
change in the net OPEB liability during the measurement period, adjusted for actual contributions and the deferred
recognition of changes in investment gain/loss, actuarial gain/loss, actuarial assumptions or method and plan
benefits. The County's discretely presented component unit did not report any OPEB liability, expense or deferred
outflows or inflows of resources.
At June 30, 2022, the County reported deferred outflows of resources and deferred inflows of resources related to
OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
(in thousands) (in thousands)
Deferred outflows and inflows of resources — difference between
expected and actual experience $ 3,508 $ 1,835
Deferred outflows of resources—changes in actuarial assumptions 10,371 -
Deferred outflows of resources— net difference between projected
and actual earnings on pension plan investments - 3,357
County contributions subsequent to the measurement date 704 -
$ 14,583 $ 5,192
$4,462 reported as deferred outflows of resources related to OPEB resulting from County contributions subsequent
to the measurement date will be recognized as a reduction of the net OPEB liability for the fiscal year ending June
30, 2023.
92
NOTES TO THE BASIC FINANCIAL STATEMENTS (Continued)
Amounts reported as deferred (inflows) outflows of resources related to OPEB will be recognized in OPEB expense
as follows:
Year ended Future Recognition
June 30, (in thousands)
2023 $ 2,458
2024 2,471
2025 2,474
2026 728
2027 627
Thereafter (71)
$ 8,687
The Schedule of Changes in the County's Net OPEB Liability and Related Ratios and the Schedule of Actuarially
Determined Contributions and Plan Contributions and Related Ratios are included as Required Supplementary
Information following the Notes to the Financial Statements and present multi-year trend information about the
OPEB liability, OPEB Plan fiduciary net position,actuarially determined contributions,and covered-employee payroll.
19. SUBSEQUENT EVENTS
Pension Obligation Prefundinq
Current provisions of the County's Retirement Plan permit the County to prepay its obligation to the Pension Trust
on an annual basis. On July 15, 2022, the County made an advance payment of $75.8 million representing the
County's FY 2021-22 employer retirement and employer paid portion of employee normal retirement contributions
to the Pension Trust. The prepayment resulted in an estimated savings of$1.5 million to the County.
Flood Control Districts Fund Transfer of Water Sales to State Water Project Fund
On August 23, 2022, the County Board of Supervisors approved the transfer of$6.5 million from the Flood Control
Districts Fund to the State Water Project Fund. The transfer relates to the recording of the sale of the unallocated
portion of the Flood Control District's State Water from 2008 to 2014. In all subsequent years,the revenue collected
from the sale of the unallocated portion of State Water will be deposited into the State Water Tax Fund.
Subsequent Events Related to Bonded Indebtedness and Long-Term Debt
On October 4, 2022, the County Board of Supervisors approved the issuance of the 2022 Bonds by the SLO County
Financing Authority (the��Authority'� in an aggregate principal amount not to exceed $78.5 million. The issuance
of the 2022 Bonds consists of the Lease Revenue Bonds Series 2022A (Tax Exempt) (Multiple Capital Projects and
Refunding) to finance the acquisition and construction of a co-located Sheriff and County Fire emergency dispatch
facility, a new Probation Department building and to refund all of the outstanding principal amount of the Authority's
Lease Revenue Refunding Bonds, 2012 Series A, for debt service savings, and the Lease Revenue Bonds Series
2022B (Federally Taxable) for the rehabilitation of the Cayucos Veterans Memorial Hall. The outstanding principal
amount of the Lease Revenue Refunding Bonds, 2012 Series A was $9.25 million as of June 30, 2022.
93
�
• �
� i � �
REQUIRED SUPPLEMENTARY INFORMATION
�
• �
� i � �
REQUIRED SUPPLEMENTARY INFORMATION
Required supplementary information includes financial information and disclosures that are
required by the GASB but are not considered a part of the basic financial statements. Such
information includes:
• Schedule of the County's Proportionate Share of the San Luis Obispo County Pension
Plan's Net Pension Liability
• Schedule of the County's Contributions to the San Luis Obispo County Pension Plan
• Other Post-Employment Benefits (OPEB) Plan Schedule of Changes in the County's Net
OPEB Liability and Related Ratios
• Other Post-Employment Benefits (OPEB) Plan Schedule of Actuarially Determined Plan
Contributions and Related Ratios
• Budgetary Comparison Schedule — General Fund
• Notes to Required Supplementary Information
94
COUNTY OF SAN LUIS OBISPO
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE COUNTY'S PROPROTIONATE SHARE OF THE
SAN LUIS OBISPO COUNTY PENSION PLAN'S NET PENSION LIABILITY
FOR THE LAST 10 FISCAL YEARS* (in thousands)
County's
proportionate
County's County's share of the net Plan fiduciary
Measurement proportion of proportionate pension liability net position as a
Date the net share of the County's (asset) as a percentage of
December pension net pension covered percentage of the total
315t liability liability payroll covered payroll pension liability
2013 92.64% $354,823 $153,942** 230.49% 74.78%
2014 92.65% $391,423 $157,730** 248.16% 73.53%
2015 92.92% $506,626 $166,433** 304.40% 67.57%
2016 93.10% $602,805 $172,192** 350.08% 64.59%
2017 93.67% $529,033 $186,278** 284.00% 70.36%
2018 93.82% $707,815 $193,122 366.51% 62.76%
2019 93.80% $625,259 $194,717 321.11% 68.34%
2020 93.64% $637,385 $211,200 301.79% 69.71%
2021 94.06% $602,555 $208,782 288.61% 73.20%
*In accordance with paragraph 81.a of GASB 68 effective June 30, 2014, employers must disclose a 10-year
history of their proportionate share of the pension plan's net pension liability. Additional years will be presented
as they become available.
**Restated in accordance with the GASB Statement No. 82 definition of covered payroll as the payroll on which
contributions to a pension plan are based as of the measurement date.
Changes to benefit terms
None
Changes of assumptions
The investment rate of return decreased from 6.875% in FY 2020-21 to 6.75% in FY 2021-22.
95
COUNTY OF SAN LUIS OBISPO
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE COUNTY'S CONTRIBUTIONS TO THE
SAN LUIS OBISPO COUNTY PENSION PLAN
FOR THE LAST 10 FISCAL YEARS* (in thousands)
Fiscal County's actual
Year Actuarially Contribution contributions as a
ending required Actual deficiency County's percentage of
June 30th contributions contributions (excess) covered payroll covered payroll
2014 $30,956 $28,867^ $2,089 $155,754** 18.53%
2015 $30,687 $30,174^ $513 $162,273** 18.59%
2016 $32,839 $31,997^ $843 $170,552** 18.76%
2017 $35,066 $35,415^ ($349) $181,338** 19.53%
2018 $45,153 $42,046^ $3,107 $190,135 22.11%
2019 $48,198 $43,432 $4,766 $193,294 22.47%
2020 $53,675 $49,018 $4,658 $202,414 24.22%
2021 $52,724 $53,874 ($1,1150) $204,688 26.32%
2022 $57,546 $62,935 ($5,389) $212,907 29.56%
*In accordance with paragraph 81.a of GASB 68 effective June 30, 2014, employers must disclose a 10-year
history of their contributions to the pension plan. Additional years will be presented as they become available.
^Restated to reflect a fiscal year measurement period.
**Restated in accordance with the GASB Statement No. 82 definition of covered payroll as the payroll on which
fiscal year contributions to a pension plan are based.
Changes to benefit terms
None
Changes of assumptions
The investment rate of return decreased from 6.875% in FY 2020-21 to 6.75% in FY 2021-22.
Separate stand-alone financial statements were issued for the Pension Plan and are available at the County of
San Luis Obispo Auditor-Controller's office located at the County Government Center Room D220, San Luis
Obispo, CA 93408.
96
COUNTY OF SAN LUIS OBISPO
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POST-EMPLOYMENT BENEFITS (OPEB) PLAN SCHEDULE OF CHANGES IN THE COUNTY'S NET OPEB
LIABILITY AND RELATED RATIOS
FOR THE LAST 10 FISCAL YEARSl
(in thousands)
June 30, June 30, June 30, June 30, June 30,
Measurement Date 2017 2018 2019 2020 2021
For Fiscal Year Reporting Period 2017-18 2018-19 2019-20 2020-21 2021-22
Total OPEB liability:
Service cost $ 688 $ 611 $ 1,538 $ 1,652 $ 1,796
Interest 1,949 2,007 3,073 3,140 3,525
Differences between expected and actual - (2,842) - 4,990 (650)
experience
Changes of assumptions - 19,530 1,129 1,269 -
Benefit payments (1,690) 1 526 (3,037) (3,102) (3,166)
Net change in total OPEB liability 947 17,780 2,703 7,949 1,505
Total OPEB liability-beginning 26,775 27,722 45,502 48,208 56,157
Total OPEB liability-ending (a) $ 27,222 $ 45,502 $ 48,205 $ 56,157 $ 57,662
Plan Fiduciary net position:
Employer contributions 1,707 2,521 3,922 3,778 3,693
Net investment income 1,155 1,286 1,161 732 5,990
Benefit payments (1,690) (1,526) (3,037) (3,102) (3,166)
Administrative expense (7) (8) (4) (10) (8)
Other deductions - 1 171 - - -
Net change in plan fiduciary net position 1,165 1,102 2,042 1,398 6,509
Plan fiduciary net position-beginning 15,860 17,025 18,127 20,172 21,570
Plan fiduciary net position-ending (b) $ 17,025 $ 18,127 $ 20,169 $ 21,570 $ 28,079
County's net OPEB liability-ending (a)-(b) $ 10,697 $ 27,375 $ 28,036 $ 34,587 $ 29,583
Plan fiduciary net position as a percentage of
the total OPEB liability 61.4% 39.8% 41.8% 38.4% 48.7%
Covered-employee payroll z-3 $ 181,338 $ 190,136 $ 193,294 $ 202,414 $ 204,688
County's net OPEB liability as a percentage of
covered-employee payroll3 5.9% 14.4% 14.5% 17.1% 14.5%
1 In accordance with paragraphs 57.a and 57.b of GASB 75 effective June 30, 2018, employers must disclose a 10-year history of the
OPEB information detailed above. Additional years will be presented as they become available.
z Contributions made to the OPEB plan are not based on measure of pay.
3 Amounts restated
The County has elected to use the GASB 75"lookback"method where assets and liabilities are measured as of the prior fiscal year but
applied to the current fiscal year.
Changes to benefit terms
None
Changes of assumptions
None
The Notes to RSI are integral to the above schedule.
97
COUNTY OF SAN LUIS OBISPO
REQUIRED SUPPLEMENTARY INFORMATION
OTHER POSTEMPLOYMENT BENEFITS (OPEB) PLAN SCHEDULE OF ACTUARIALLY DETERMINED AND PLAN
CONTRIBUTIONS AND RELATED RATIOS
FOR THE LAST 10 FISCAL YEARS 1
(in thousands)
Fiscal Year Actuarially Contributions Plan Annual Plan Contributions
Ended Determined in relation to Contributions Covered- as a Percentage of
June 30th Contribution the ADC Over/(Under) Employee Covered-Employee
(ADC) ADC Payroll z Payroll
(a) (b) (b-a)
2017 $ 1,621 $ 1,682 $ 61 $ 181,338 0.93%
2018 $ 1,707 $ 2,521 $ 814 $ 190,136 1.33%
2019 $ 3,982 $ 3,925 $ (57) $ 193,294 2.03%
2020 $ 4,229 $ 3,778 $ (451) $ 202,414 1.87%
2021 $ 5,134 $ 3,691 $ (1,443) $ 204,688 1.80%
2022 $ 4,890 $ 4,462 $ (428) $ 212,907 2.10%
1 In accordance with paragraph 57.c of GASB 75 effective June 30, 2018, employers must disclose a 10-year
history of the OPEB information detailed above. Additional years will be presented as they become available.
z Contributions made to the OPEB plan are not based on measure of pay.
Changes to benefit terms
None
Changes of assumptions
None
The Notes to RSI are integral to the above schedule.
98
COUNTY OF SAN LUIS OBISPO
Required Supplementary Information
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Bud�eted Amounts Actual Variance with
Original Final Amounts Final Budget
Revenues:
Taxes $ 220,352 $ 220,352 $ 242,960 $ 22,608
Licenses, permits, and franchises 12,749 12,749 12,597 (152)
Fines, forfeitures, and penalties 3,636 3,654 3,042 (612)
Use of money and property 2,035 2,037 (9,067) (11,104)
Aid from other qovernments 277,633 348,508 312,215 (36,293)
Charqes for services 36,557 37,783 35,554 (2,229)
Otherrevenue 7,496 9,194 9,079 (115)
Total Revenues 560,458 634,277 606,380 (27,897)
Expenditures:
Current:
General qovernment 57,385 85,169 54,904 30,265
Public protection 215,292 228,665 207,767 20,898
Public ways and facilities 5,811 8,019 3,660 4,359
Health and sanitation 125,096 141,542 150,030 (8,488)
Public assistance 144,212 161,823 132,712 29,111
Education 635 661 519 142
Recreation and Culture 5,309 8,744 5,260 3,484
Debt Service:
Principal Payments - - 3,542 (3,542)
Interest and Fiscal Charqes - - 448 (448)
Contingencies 29,842 23,017 - 23,017
Total Expenditures 583,582 657,640 558,842 98,798
Excess (Deficiency) of Revenues Over
(Under) Expenditures (23,124) (23,363) 47,538 70,901
Other Financing Sources (Uses):
Leases - - 28,696 28,696
Transfers in 204 467 328 (139)
Transfers out (34,585) (63,753) (32,183) 31,570
Total Other Financinq Sources (Uses) (34,381) (63,286) (3,159) 60,127
Net change in fund balances (57,505) (86,649) 44,379 131,028
Fund balances, beqinninq 294,526 294,526 294,526 -
Fund balances, ending $ 237,021 $ 207,877 $ 338,905 $ 131,028
Continued
99
COUNTY OF SAN LUIS OBISPO
Required Supplementary Information
General Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Explanation of Differences between Budgetary Inflows and Outflows and Accounting Principles Generally
Accepted in the United States of America Revenues and Expenditures
Sources/inflows of resources
Actual amounts (budgetary basis) "Total Revenues" from the budgetary
comparison schedule $ 606,380
Revenues for funds not meeting the special revenue fund definition which
are presented with the General Fund for financial reporting purposes (291)
Total Revenues as reported in the Statement of Revenues, Expenditures
and Changes in Fund Balances - Governmental Funds $ 606,089
Uses/outflows of resources
Actual amounts (budgetary basis) "Total Expenditures" from the budgetary
comparison schedule $ 558 842
,
Expenditures for funds not meeting the special revenue fund definition
which are presented with the General Fund for financial reporting purposes 8,840
Total Expenditures as reported in the Statement of Revenues, Expenditures
and Changes in Fund Balances - Governmental Funds $ 567,682
Other financing sources/(uses) of resources
Actual amounts (budgetary basis) "Total Other Financing Sources (Uses)"
from the Budgetary Comparison Schedule $ (3,159)
Other financing sources (uses) for funds not meeting the special revenue
fund definition which are presented with the General Fund for financial
reporting purposes (684)
Total Other Financing Sources (Uses) as reported in the Statement of Revenues,
Expenditures, and Changes in Fund Balances - Governmental Funds $ (3,843)
100
COUNTY OF SAN LUIS OBISPO
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
1. BUDGETARY BASIS OF ACCOUNTING
A. BUDGETARY ACCOUNTING
In accordance with the provisions of Sections 29000 through 29144 inclusive of the California Government
Code and other statutory provisions, commonly known as the County Budget Act, the County of San Luis
Obispo (the County) prepares and legally adopts a final budget on or before August 30th for each fiscal year.
The County operation, commencing July 1st, is governed by the proposed budget, adopted by the Board of
Supervisors (the Board), in June of the prior year unless the final budget is adopted before June 30.
After the budget is approved, the appropriations can be added to, subtracted from, or changed only by Board
resolution. All such changes must be within the revenues and reserves estimated as available in the final
budget or within revised revenue estimates as approved by the Board. During the fiscal year ended June 30,
2022 the Board of Supervisors approved all necessary supplemental appropriations. Generally, the effects of
the supplemental appropriations are to increase the budget for cost of living adjustments and new programs
and grants financed by other governmental agencies.
An operating budget is adopted each fiscal year for Governmental Funds on a basis consistent with generally
accepted accounting principles. Additionally, encumbrance accounting is utilized to assure effective budgetary
control. Encumbrances outstanding at year end represent the estimated amount of the expenditures ultimately
to result if the unperformed contracts in process at year end are completed or purchase commitments satisfied.
Such year-end encumbrances are reported as reservations of fund balances and do not constitute expenditures
or liabilities because the commitments will be honored during the subsequent year and included in the
subsequent year's budget. Unencumbered appropriations lapse at year end.
All Governmental, Enterprise,and Internal Service Funds that are under the control of the Board of Supervisors,
have legally adopted annual budgets except for the Public Facilities Corporation and Financing Authority debt
service funds. Although the Enterprise and Internal Service Funds have adopted budgets, there is no
appropriation of expenditures, and these budgets only serve as spending plans for the year.
The legal level of budgetary control (the level on which expenditures may not legally exceed appropriations)
is at the department/budget unit and object level except for capital assets, which are controlled at the sub-
object level. Object levels of expenditures are as follows: salaries and benefits, services and supplies, other
charges, capital assets, and contingencies. Sub-object levels of expenditures for capital assets are land,
structures and improvements, and equipment.
B. BUDGETARY EXPENDITURES IN EXCESS OF APPROPRIATION
During the current fiscal year, no governmental funds had excess expenditures over the related appropriations
at the legal level of budgetary control.
101
OTHER SUPPLEMENTARY INFORMATION
�
• �
� i � �
COMBINING FINANCIAL STATEMENTS
NONMAJOR GOVERNMENTAL FUNDS
�
• �
� i � �
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:
Special revenue funds are used to account for revenues that are restricted by law or administrative
actions to expenditures for specified purposes. Nonmajor special revenue funds used by the County
are listed below:
Community Development Program
Accounts for pass-through grants from Housing and Urban Development (HUD) entitlements to be
distributed to the County and other local agencies.
Emeraency Medical Services
Accounts for payments to physicians, hospitals, and other providers of emergency medical care from
revenues imposed and collected by the courts.
Drivinq Under the Influence Programs
Accounts for resources collected from persons convicted of driving under the influence to provide
education and rehabilitation programs.
Fish & Game
Accounts for funds generated by fines levied as a result of Fish and Game violations.
Road Impact Fees
Accounts for resources collected from developers to add, maintain, and improve roads in specific
areas where the fees were allocated.
Library
Accounts for resources used to provide library services throughout the County.
Parks
Accounts for resources used to provide parks and recreational services countywide.
Public Facilities Fees
Accounts for resources collected from the building permit process to build public facilities such as
fire and law enforcement stations, library and general government structures.
Roads
Accounts for resources used to maintain the County road system.
Wildlife & Grazinq
Accounts for resources used to provide for range improvements and the control of predators.
io2
NONMAJOR GOVERNMENTAL FUNDS (Continued)
SPECIAL REVENUE SPECIAL DISTRICT FUNDS:
Flood Control Districts
Accounts for resources used to provide control and conservation of flood and storm waters, which
are mutually exclusive of Enterprise Flood Control District funds.
Liqhting Districts
Accounts for resources used to provide street lighting in unincorporated areas of the county.
County Service Areas
Accounts for resources used to provide for water and sewer services which are mutually exclusive
of Enterprise Fund County Service Areas.
DEBT SERVICE FUNDS:
Debt service funds are used to account for the accumulation of resources for and the payment of
general long-term debt principal and interest.
San Luis Obispo County Public Facilities Corporation (PFC�
The PFC is a non-profit public benefit corporation organized to assist public agencies within the
County of San Luis Obispo with the acquisition and construction of various public facilities.
Pension Obligation Bonds
The Pension Obligation Bonds debt service fund is used to account for the accumulation of monies
for payment of taxable pension obligation bonds. These bonds were issued to fund the County's
unfunded actuarial accrued liability (UAAL).
SLO County Financina Authoritv
The SLO County Financing Authority is a joint exercise of powers authority created to assist in the
financing, construction, and equipping of public facilities for its members.
103
COUNTY OF SAN LUIS OBISPO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022 (IN THOUSANDS)
Special Revenue
Emergency Driving Under
Community Medical the Influence Fish and
Development Services Programs Game
Assets
Cash and cash equivalents $ 5,346 $ 250 $ 482 $ 215
Restricted cash with fiscal agent - - - -
Accounts receivable, net - - - -
Other receivables - - - -
Due from other governments 19 333 20 -
Due from other funds - - - -
Loans receivable, net of allowance for uncollectibles 18,757 - - -
Leases receivable - - - -
Advances to otherfunds - - - -
Prepaid items - - 4 -
Otherassets - - - -
Total assets $ 24,122 $ 583 $ 506 $ 215
Liabilities
Accounts payable $ 181 $ - $ - $ -
Salaries and benefits payable - - 33 -
Due to other funds - - - -
Deposits from others 2,231 - - -
Unearned revenue - - - -
Advances from other funds - - - -
Total liabilities 2,412 - 33 -
Deferred Inflows of Resources
Unavailable revenue - - 20 -
Lease revenue - - - -
Total deferred inflows of resources - - 20 -
Fund Balances
Nonspendable - - 4 -
Restricted - - 137 -
Committed 21,710 583 312 215
Assigned - - - -
Unassigned - - - -
Total fund balances 21,710 583 453 215
Total liabilities, deferred inflows of
resources, and fund balances $ 24,122 $ 583 $ 506 $ 215
104
COUNTY OF SAN LUIS OBISPO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2022 (IN THOUSANDS)
Special Revenue
Road Public
Impact Facilities
Fees Library Parks Fees
Assets
Cash and cash equivalents $ 11,508 $ 5,487 $ 5,004 $ 16,001
Restricted cash with fiscal agent - - - -
Accounts receivable, net - - 30 -
Other receivables - - 50 -
Due from other governments - - - -
Due from other funds - - - -
Loans receivable, net of allowance for uncollectibles - - - -
Leases receivable - - 152 -
Advancesto otherfunds - - - -
Prepaid items - 5 - -
Other assets - - - -
Total assets $ 11,508 $ 5,492 $ 5,236 $ 16,001
Liabilities
Accounts payable $ - $ 113 $ 381 $ -
Salaries and benefits payable - 270 181 -
Due to other funds - - - -
Deposits from others - - 562 -
Unearned revenue - - - -
Advances from other funds - - 278 -
Total liabilities - 383 1,402 -
Deferred Inflows of Resources
Unavailable revenue - - - -
Lease revenue - - 148 -
Total deferred inflows of resources - - 148 -
Fund Balances
Nonspendable - 5 - -
Restricted 11,508 1 285 16,001
Committed - 5,103 3,401 -
Assigned - - - -
Unassigned - - - -
Total fund balances 11,508 5,109 3,686 16,001
Total liabilities, deferred inflows of
resources, and fund balances $ 11,508 $ 5,492 $ 5,236 $ 16,001
105
COUNTY OF SAN LUIS OBISPO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2022 (IN THOUSANDS)
Special Revenue
Flood
Wildlife Control Lighting County
Roads Grazing Districts Districts Service Areas
Assets
Cash and cash equivalents $ 23,365 $ 48 $ 21,946 $ 426 $ 2,446
Restricted cash with fiscal agent - - - - -
Accounts receivable, net - - 262 1 8
Other receivables - - - - -
Due from other governments 3,026 - 2,097 - -
Due from other funds - - - - 400
Loans receivable, net of allowance for uncollectibles - - - - -
Leases receivable - - - - -
Advancesto otherfunds - - 1,883 - 255
Prepaid items - - - - -
Otherassets 10 - - - -
Totalassets $ 26,401 $ 48 $ 26,188 $ 427 $ 3,109
Liabilities
Accounts payable $ 1,469 $ - $ 346 $ - $ 7
Salaries and benefits payable - - - - -
Due to other funds - - - - -
Deposits from others 186 - - - -
Unearned revenue 67 - - - -
Advances from other funds - - - - 9
Totalliabilities 1,722 - 346 - 16
Deferred Inflows of Resources
Unavailable revenue 29 - 2,357 1 8
Lease revenue - - - - -
Total deferred inflows of resources 29 - 2,357 1 8
Fund Balances
Nonspendable - - - - -
Restricted - 48 3,795 - 92
Committed 24,650 - 19,690 426 2,993
Assigned - - - - -
Unassigned - - - - -
Totalfund balances 24,650 48 23,485 426 3,085
Total liabilities, deferred inflows of
resources, and fund balances $ 26,401 $ 48 $ 26,188 $ 427 $ 3,109
106
COUNTY OF SAN LUIS OBISPO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
JUNE 30, 2022 (IN THOUSANDS)
Debt Service
Total
Debt Service Debt Service Debt Service Nonmajor
Public Facilities Pension Obligation Financing Governmental
Corporation Bonds Authority Funds
Assets
Cash and cash equivalents $ 11 $ 18,701 $ 9 $ 111,245
Restricted cash with fiscal agent - 6 4,702 4,708
Accounts receivable, net - - - 301
Other receivables - - - 50
Due from other governments - - - 5,495
Due from other funds - - - 400
Loans receivable, net of allowance for uncollectibles - - - 18,757
Leases receivable - - - 152
Advances to other funds - - - 2,138
Prepaid items - - - 9
Other assets - - - 10
Total assets $ 11 $ 18,707 $ 4,711 $ 143,265
Liabilities
Accounts payable $ - $ - $ - $ 2,497
Salaries and benefits payable - - - 484
Due to other funds - - 1,541 1,541
Deposits from others - - - 2,979
Unearned revenue - - - 67
Advances from other funds - - - 287
Totalliabilities - - 1,541 7,855
Deferred Inflows of Resources
Unavailable revenue - - - 2,415
Lease revenue - - - 148
Total deferred inflows of resources - - - 2,563
Fund Balances
Nonspendable - - - 9
Restricted 11 18,707 3,170 53,755
Committed - - - 79,083
Assigned - - - -
Unassigned - - - -
Total fund balances li 18,707 3,170 132,847
Total liabilities, deferred inflows of
resources, and fund balances $ 11 $ 18,707 $ 4,711 $ 143,265
107
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022 (IN THOUSANDS)
Special Revenue
Emergency Driving Under
Community Medical the Influence Fish and
Development Services Programs Game
Revenues
Taxes $ - $ - $ - $ -
Licenses, permits, and franchises - - - -
Fines, forfeitures, and penalties - 552 - 46
Use of money and property (145) (7) (13) (6)
Aid from other governments 7,885 - 245 -
Charges for services - - 823 -
Otherrevenues 475 - 56 -
Total revenues 8,215 545 1,111 40
Expenditures
Current:
Public protection - - - 8
Public ways and facilities - - - -
Health and sanitation 7,460 - - -
Public assistance - 563 - -
Education - - 3,599 -
Recreation and cultural services - - - -
Debt service:
Principal payments - - 24 -
Interest and fiscal charges - - 6 -
Total expenditures 7,460 563 3,629 8
Excess (deficiency) of revenues
over (under) expenditures 755 (18) (2,518) 32
Other financing sources (uses�
Leases - - 2,254 -
Transfers in 39 - - -
Transfers out - - (31) -
Total other financing sources (uses) 39 - 2,223 -
Net change in fund balances 794 (18) (295) 32
Fund balances - beginning 20,916 601 748 183
Fund balances - ending $ 21,710 $ 583 $ 453 $ 215
108
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022 (IN THOUSANDS)
Special Revenue
Road Public
Impact Facilities
Fees Library Parks Fees
Revenues
Taxes $ - $ 10,717 $ - $ -
Licenses, permits, and franchises - - - -
Fines, forfeitures, and penalties - - - -
Use of money and property (278) (142) (100) (388)
Aid from other governments - 115 155 -
Charges for services 1,268 71 5,993 1,183
Otherrevenues - 378 109 -
Total revenues 990 11,139 6,157 795
Expenditures
Current:
Public protection - - - -
Public ways and facilities - - - -
Health and sanitation - - - -
Public assistance - - - -
Education - 11,594 - -
Recreation and cultural services - - 7,160 -
Debt service:
Principal payments - 14 - -
Interest and fiscal charges - 1 - -
Total expenditures - 11,609 7,160 -
Excess (deficiency) of revenues
over (under) expenditures 990 (470) (1,003) 795
Other financing sources (uses�
Leases - - - -
Transfers in - 668 3,361 -
Transfers out (994) (261) (222) (590)
Total other financing sources (uses) (994) 407 3,139 (590)
Net change in fund balances (4) (63) 2,136 205
Fund balances - beginning 11,512 5,172 1,550 15,796
Fund balances - ending $ 11,508 $ 5,109 $ 3,686 $ 16,001
109
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022 (IN THOUSANDS)
Special Revenue
Flood
Wildlife Control Lighting County
Roads and Grazing Districts Districts Service Areas
Revenues
Taxes $ 2,049 $ - $ 4,290 $ 43 $ 1,104
Licenses, permits, and franchises - - - - -
Fines,forfeitures, and penalties - - - - -
Use of money and property (594) (1) (540) (10) (56)
Aid from other governments 25,852 7 3,506 - 4
Charges for services 358 - 585 12 7
Otherrevenues 124 - 307 - 6
Total revenues 27,789 6 8,148 45 1,065
Exqenditures
Current:
Public protection - 2 4,479 132 -
Public ways and facilities 34,626 - - - 838
Health and sanitation - - - - -
Public assistance - - - - -
Education - - - - -
Recreation and cultural services - - - - -
Debt service:
Principal payments 47 - - - -
Interest and fiscal charges 20 - - - -
Totalexpenditures 34,693 2 4,479 132 838
Excess(deficiency) of revenues
over(under)expenditures (6,904) 4 3,669 (87) 227
Other financing sources(uses�
Leases - - - - -
Transfers in 11,506 - 60 - -
Transfers out (114) - (243) - (246)
Total other financing sources(uses) 11,392 - (183) - (246)
Net change in fund balances 4,488 4 3,486 (87) (19)
Fund balances- beginning 20,162 44 19,999 513 3,104
Fund balances-ending $ 24,650 $ 48 $ 23,485 $ 426 $ 3,085
110
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2022 (IN THOUSANDS)
Debt Service
Tota I
Debt Service Debt Service Debt Service Nonmajor
Public Facilities Pension Obligation Financing Governmental
Corporation Bonds Authority Funds
Revenues
Taxes $ - $ - $ - $ 18,203
Licenses, permits, and franchises - - - -
Fines, forfeitures, and penalties - - - 598
Use of money and property - (474) 8 (2,746)
Aid from other governments - - - 37,769
Charges for services 416 - 2,694 13,410
Otherrevenues - 685 - 2,140
Total revenues 416 211 2,702 69,374
Expenditures
Current:
Public protection - - - 4,621
Public ways and facilities - - - 35,464
Health and sanitation - - - 7,460
Public assistance - - - 563
Education - - - 15,193
Recreation and cultural services - - - 7,160
Debt service:
Principal payments 205 3,565 1,580 5,435
Interest and fiscal charges 203 6,087 1,115 7,432
Total expenditures 408 9,652 2,695 83,328
Excess (deficiency) of revenues
over(under) expenditures 8 (9,441) 7 (13,954)
Other financina sources (uses�
Leases - - - 2,254
Transfers in - 12,910 - 28,544
Transfers out - - (9,052) (11,753)
Total other financing sources (uses) - 12,910 (9,052) 19,045
Net change in fund balances 8 3,469 (9,045) 5,091
Fund balances- beginning 3 15,238 12,215 127,756
Fund balances-ending $ 11 $ 18,707 $ 3,170 $ 132,847
111
BUDGETARY COMPARISON SCHEDULES
CAPITAL PROJ ECTS FU N D
SAN LUIS OBISPO COUNTY PUBLIC FACILITIES CORPORATION
PENSION OBLIGATION BONDS FUND
SLO COUNTY FINANCING AUTHORITY
NONMAJOR GOVERNMENTAL FUNDS
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COUNTY OF SAN LUIS OBISPO
Capital Projects Fund
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budqet
Revenues:
Fines, forfeitures, and penalties $ - $ - $ 358 $ 358
Use of money and property - - (448) (448)
Aid from other governments - 5,714 398 (5,316)
Charges for services 706 2,009 134 (1,875)
Total Revenues 706 7,723 442 (7,281)
Expenditures:
Capital outlay 8,192 97,877 17,376 80,501
Total Expenditures 8,192 97,877 17,376 80,501
Excess (Deficiency) of Revenues Over
(Under) Expenditures (7,486) (90,154) (16,934) 73,220
Other Financing Sources (Uses):
Transfers in 7,275 85,160 16,247 (68,913)
Total Other Financinq Sources (Uses) 7,275 85,160 16,247 (68,913)
Net change in fund balances (211) (4,994) (687) 4,307
Fund balances, beginning 18,992 18,992 18,992 -
Fund balances, ending $ 18,781 $ 13,998 $ 18,305 $ 4,307
112
COUNTY OF SAN LUIS OBISPO
Community Development
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budqet
Revenues:
Use of money and property $ - $ - $ (145) $ (145)
Aid from other governments 3,922 18,401 7,885 (10,516)
Charges for services - - - -
Otherrevenues 539 1,094 475 (619)
Total Revenues 4,461 19,495 8,215 (11,280)
Expenditures:
Current:
Health and sanitation
Services and supplies 599 1,516 802 714
Other charges 3,901 18,018 6,658 11,360
Contingencies 56 56 - 56
Total Expenditures 4,556 19,590 7,460 12,130
Excess (Deficiency) of Revenues Over
(Under) Expenditures (95) (95) 755 850
Other Financing Sources (Uses):
Transfers in 39 39 39 -
Total Other Financing Sources (Uses) 39 39 39 -
Net change in fund balances (56) (56) 794 850
Fund balances, beginning 20,916 20,916 20,916 -
Fund balances, ending $ 20,860 $ 20,860 $ 21,710 $ 850
113
COUNTY OF SAN LUIS OBISPO
Emergency Medical Services
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budget
Revenues:
Fines, forfeitures, and penalties $ 600 $ 600 $ 552 $ (48)
Use of money and property 1 1 (7) (8)
Total Revenues 601 601 545 (56)
Expenditures:
Current:
Public assistance
Services and supplies 601 864 563 301
Total Expenditures 601 864 563 301
Net change in fund balances - (263) (18) 245
Fund balances, beginning 601 601 601 -
Fund balances, ending $ 601 $ 338 $ 583 $ 245
114
COUNTY OF SAN LUIS OBISPO
Driving Under the Influence Program
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budqet
Revenues:
Use of money and property $ 11 $ 11 $ (13) $ (24)
Charges for services 1,449 1,404 823 (581)
Aid from other governments 60 60 245 185
Otherrevenues 2 2 56 54
Total Revenues 1,522 1,477 1,111 (366)
Expenditures:
Current:
Education
Salaries, wages, and benefits 1,083 1,159 875 284
Services and supplies 419 586 450 136
Othercharges 20 20 20 -
Capital outlay - - 2,254 (2,254)
Debt Service - - 30 (30)
Contingencies 51 51 - 51
Total Expenditures 1,573 1,816 3,629 (1,813)
Excess (Deficiency) of Revenues Over
(Under) Expenditures (51) (339) (2,518) (2,179)
Other Financing Sources (Uses):
Leases - - 2,254 2,254
Transfers out - - (31) (31)
Total Other Financing Sources (Uses) - - 2,223 2,223
Net change in fund balances (51) (339) (295) 44
Fund balances, beginning 748 748 748 -
Fund balances, ending $ 697 $ 409 $ 453 $ 44
115
COUNTY OF SAN LUIS OBISPO
Fish and Game
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budget
Revenues:
Fines, forfeitures, and penalties $ 25 $ 25 $ 46 $ 21
Use of money and property - - (6) (6)
Total Revenues 25 25 40 15
Expenditures:
Current:
Public protection
Services and supplies 34 34 8 26
Total Expenditures 34 34 8 26
Net change in fund balances (9) (9) 32 41
Fund balances, beginning 183 183 183 -
Fund balances, ending $ 174 $ 174 $ 215 $ 41
116
COUNTY OF SAN LUIS OBISPO
Road Impact Fees
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budqet
Revenues:
Use of money and property $ - $ - $ (278) $ (278)
Charges for services - - 1,268 1,268
Total Revenues - - 990 990
Expenditures:
Current:
Public ways and facilities
Services and supplies - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues Over
(Under) Expenditures - - 990 990
Other Financing Sources (Uses):
Transfers out (458) (4,785) (994) 3,791
Total Other Financing Sources (Uses) (458) (4,785) (994) 3,791
Net change in fund balances (458) (4,785) (4) 4,781
Fund balances, beginning 11,512 11,512 11,512 -
Fund balances, ending $ 11,054 $ 6,727 $ 11,508 $ 4,781
117
COUNTY OF SAN LUIS OBISPO
Library
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budqet
Revenues:
Taxes $ 10,628 $ 10,628 $ 10,717 $ 89
Use of money and property 44 44 (142) (186)
Aid from other governments 175 175 115 (60)
Charges for services 17 17 71 54
Otherrevenues 15 499 378 (121)
Total Revenues 10,879 11,363 11,139 (224)
Expenditures:
Current:
Education
Salaries, wages, and benefits 7,564 7,564 7,006 558
Services and supplies 4,327 6,058 4,492 1,566
Othercharges 8 33 9 24
Capital outlay - 87 87 -
Debt Service - - 15 (15)
Contingencies 575 575 - 575
Total Expenditures 12,474 14,317 11,609 2,708
Excess (Deficiency) of Revenues Over
(Under) Expenditures (1,595) (2,954) (470) 2,484
Other Financing Sources (Uses):
Transfers in 640 667 668 1
Transfers out - - (261) (261)
Total Other Financing Sources (Uses) 640 667 407 (260)
Net change in fund balances (955) (2,287) (63) 2,224
Fund balances, beginning 5,172 5,172 5,172 -
Fund balances, ending $ 4,217 $ 2,885 $ 5,109 $ 2,224
118
COUNTY OF SAN LUIS OBISPO
Parks
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budqet
Revenues:
Fines, forfeitures, and penalties $ 1 $ 2 $ - $ (2)
Use of money and property 49 49 (100) (149)
Aid from other governments 27 733 155 (578)
Charges for services 6,029 6,102 5,993 (109)
Otherrevenues 18 18 109 91
Total Revenues 6,124 6,904 6,157 (747)
Expenditures:
Current:
Recreation and cultural services
Salaries, wages, and benefits 3,122 3,122 2,951 171
Services and supplies 2,938 3,638 3,733 (95)
Othercharges 42 312 135 177
Capital outlay - 5,011 341 4,670
Contingencies 200 65 - 65
Total Expenditures 6,302 12,148 7,160 4,988
Excess (Deficiency) of Revenues Over
(Under) Expenditures (178) (5,244) (1,003) 4,241
Other Financing Sources (Uses):
Transfers in - 5,128 3,361 (1,767)
Transfers out (21) (21) (222) (201)
Total Other Financing Sources (Uses) (21) 5,107 3,139 (1,968)
Net change in fund balances (199) (137) 2,136 2,273
Fund balances, beginning 1,550 1,550 1,550 -
Fund balances, ending $ 1,351 $ 1,413 $ 3,686 $ 2,273
119
COUNTY OF SAN LUIS OBISPO
Public Facilities Fees
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budqet
Revenues:
Use of money and property $ - $ - $ (388) $ (388)
Charges for services 2,085 2,085 1,183 (902)
Total Revenues 2,085 2,085 795 (1,290)
Expenditures:
Current:
General government
Salaries, wages, and benefits - - - -
Services and supplies - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues Over
(Under) Expenditures 2,085 2,085 795 (1,290)
Other Financing Sources (Uses):
Transfers out - (13,366) (590) 12,776
Total Other Financing Sources (Uses) - (13,366) (590) 12,776
Net change in fund balances 2,085 (11,281) 205 11,486
Fund balances, beginning 15,796 15,796 15,796 -
Fund balances, ending $ 17,881 $ 4,515 $ 16,001 $ 11,486
120
COUNTY OF SAN LUIS OBISPO
Roads
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budqet
Revenues:
Taxes $ 1,947 $ 1,947 $ 2,049 $ 102
Use of money and property 150 150 (594) (744)
Aid from other governments 18,604 28,894 25,852 (3,042)
Charges for services 214 214 358 144
Otherrevenues 7 304 124 (180)
Total Revenues 20,922 31,509 27,789 (3,720)
Expenditures:
Current:
Public ways and facilities
Services and supplies 20,848 26,544 34,241 (7,697)
Othercharges 500 935 385 550
Capital outlay 11,490 36,971 - 36,971
Debt Service - - 67 (67)
Total Expenditures 32,838 64,450 34,693 29,757
Excess (Deficiency) of Revenues Over
(Under) Expenditures (11,916) (32,941) (6,904) 26,037
Other Financing Sources (Uses):
Transfers in 10,971 15,297 11,506 (3,791)
Transfers out (4) (4) (114) (110)
Total Other Financing Sources (Uses) 10,967 15,293 11,392 (3,901)
Net change in fund balances (949) (17,648) 4,488 22,136
Fund balances, beginning 20,162 20,162 20,162 -
Fund balances, ending $ 19,213 $ 2,514 $ 24,650 $ 22,136
121
COUNTY OF SAN LUIS OBISPO
Wildlife and Grazing
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budget
Revenues:
Use of money and property $ 1 $ 1 $ (1) $ (2)
Aid from other governments 4 4 7 3
Total Revenues 5 5 6 1
Expenditures:
Current:
Public protection
Services and supplies 6 6 2 4
Total Expenditures 6 6 2 4
Net change in fund balances (1) (1) 4 5
Fund balances, beginning 44 44 44 -
Fund balances, ending $ 43 $ 43 $ 48 $ 5
122
COUNTY OF SAN LUIS OBISPO
Flood Control Districts
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budqet
Revenues:
Taxes $ 4,097 $ 4,097 $ 4,290 $ 193
Use of money and property 155 155 (540) (695)
Aid from other governments 1,181 3,963 3,506 (457)
Charges for services 579 579 585 6
Otherrevenues 462 462 307 (155)
Total Revenues 6,474 9,256 8,148 (1,108)
Expenditures:
Current:
Public protection
Services and supplies 9,599 12,187 4,279 7,908
Othercharges 289 2,916 200 2,716
Capital outlay 248 329 - 329
Total Expenditures 10,136 15,432 4,479 10,953
Excess (Deficiency) of Revenues Over
(Under) Expenditures (3,662) (6,176) 3,669 9,845
Other Financing Sources (Uses):
Transfers in 36 419 60 (359)
Transfers out - - (243) (243)
Total Other Financing Sources (Uses) 36 419 (183) (602)
Net change in fund balances (3,626) (5,757) 3,486 9,243
Fund balances, beginning 19,999 19,999 19,999 -
Fund balances, ending $ 16,373 $ 14,242 $ 23,485 $ 9,243
123
COUNTY OF SAN LUIS OBISPO
Lighting Districts
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budget
Revenues:
Taxes $ 45 $ 45 $ 43 $ (2)
Use of money and property 5 5 (10) (15)
Charges for services 9 9 12 3
Other revenues - - - -
Total Revenues 59 59 45 (14)
Expenditures:
Current:
Public protection
Services and supplies 51 176 132 44
Capital outlay - - - -
Total Expenditures 51 176 132 44
Net change in fund balances 8 (117) (87) 30
Fund balances, beginning 513 513 513 -
Fund balances, ending $ 521 $ 396 $ 426 $ 30
124
COUNTY OF SAN LUIS OBISPO
County Service Areas
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budget
Revenues:
Taxes $ 1,054 $ 1,054 $ 1,104 $ 50
Use of money and property 28 28 (56) (84)
Aid from other governments 4 4 4 -
Charges for services 4 4 7 3
Other revenues 3 3 6 3
Total Revenues 1,093 1,093 1,065 (28)
Expenditures:
Current:
Public ways and facilities
Services and supplies 1,001 1,047 838 209
Total Expenditures 1,001 1,047 838 209
Excess (Deficiency) of Revenues Over
(Under) Expenditures 92 46 227 181
Other Financing Sources (Uses):
Transfers out (321) (321) (246) 75
Total Other Financing Sources (Uses) (321) (321) (246) 75
Net change in fund balances (229) (275) (19) 256
Fund balances, beginning 3,104 3,104 3,104 -
Fund balances, ending $ 2,875 $ 2,829 $ 3,085 $ 256
125
COUNTY OF SAN LUIS OBISPO
Public Facilities Corporation
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budget
Revenues:
Charges for services $ - $ - $ 416 $ 416
Total Revenues - - 416 416
Expenditures:
Debt Service:
Principal payments - - 205 (205)
Interest and fiscal charges - - 203 (203)
Total Expenditures - - 408 (408)
Excess (Deficiency) of Revenues Over
(Under) Expenditures - - 8 8
Other Financing Sources (Uses):
Debt issued - - - -
Transfers out - - - -
Total Other Financing Sources (Uses) - - - -
Net change in fund balances - - 8 8
Fund balances, beginning 3 3 3 -
Fund balances, ending $ 3 $ 3 $ 11 $ 8
126
COUNTY OF SAN LUIS OBISPO
Pension Obligation Bonds
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budqet
Revenues:
Use of money and property $ 134 $ 134 $ (474) (608)
Otherrevenues 13,070 13,070 685 (12,385)
Total Revenues 13,204 13,204 211 (12,993)
Expenditures:
Debt Service:
Principal payments 3,565 3,565 3,565 -
Interest and fiscal charges 6,087 6,087 6,087 -
Total Expenditures 9,652 9,652 9,652 -
Excess (Deficiency) of Revenues Over
(Under) Expenditures 3,552 3,552 (9,441) (12,993)
Other Financing Sources (Uses):
Transfers in - - 12,910 12,910
Total Other Financing Sources (Uses) - - 12,910 12,910
Net change in fund balances 3,552 3,552 3,469 (83)
Fund balances, beginning 15,238 15,238 15,238 -
Fund balances, ending $ 18,790 $ 18,790 $ 18,707 $ (83)
127
COUNTY OF SAN LUIS OBISPO
Financing Authority
Schedule of Revenues, Expenditures and Changes in Fund Balances
Budget to Actual Comparison
For the Year Ended )une 30, 2022 (in thousands)
Budqeted Amounts Actual Variance with
Oriqinal Final Amounts Final Budqet
Revenues:
Use of money and property $ - $ - $ 8 $ 8
Charges for services - - 2,694 2,694
Total Revenues - - 2,702 2,702
Expenditures:
Debt Service:
Principal payments - - 1,580 (1,580)
Interest and fiscal charges - - 1,115 (1,115)
Total Expenditures - - 2,695 (2,695)
Excess (Deficiency) of Revenues Over
(Under) Expenditures - - 7 7
Other Financing Sources (Uses):
Transfers out - - (9,052) (9,052)
Debt issued - - - -
Total Other Financing Sources (Uses) - - (9,052) (9,052)
Net change in fund balances - - (9,045) (9,045)
Fund balances, beginning 12,215 12,215 12,215 -
Fund balances, ending $ 12,215 $ 12,215 $ 3,170 $ (9,045)
128
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COMBINING FINANCIAL STATEMENTS
NONMA]OR ENTERPRISE FUNDS
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NONMAJOR ENTERPRISE FUNDS
ENTERPRISE FUNDS:
Enterprise Funds are used to account for operations that are financed and operated in a manner
similar to private business enterprises, where the intent of the governing body is to have the costs
of providing goods or services to the general public on a continuing basis be financed primarily
through user charges, or where the County has decided that revenues earned, expenses incurred
and/or net income is appropriate for capital maintenance, public policy, management control,
accountability or other purposes.
General Flood Control Zone — Salinas Dam
Accounts for the operation of the Salinas dam and pipeline used to deliver water to the City of San
Luis Obispo from Santa Margarita Lake.
Lopez Flood Control
Accounts for the maintenance, water treatment and water distribution services of the Lopez Dam
Flood Control Zone 3, which provides water to south San Luis Obispo County, and the activities of
the Lopez Dam Seismic Remediation Project.
Golf
Accounts for the operations and maintenance of County-owned golf courses located in Atascadero,
Morro Bay, and San Luis Obispo.
Lopez Park
Accounts for the accumulation of resources for the repayment of State loans related to the Lopez
Lake recreational area.
County Service Areas
Accounts for resources used to provide for a variety of services such as street lighting, drainage,
sewer and road maintenance, which are mutually exclusive of the Special Revenue Funds County
Service Areas.
129
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2022 (IN THOUSANDS)
General Flood
Control Zone- Lopez County
Salinas Dam Flood Control Golf Lopez Park Service Areas Total
Assets
Current assets:
Cash and cash equivalents $ 3,282 $ 10,725 $ 1,688 $ 25 $ 4,865 $ 20,585
Accounts receivable,net - 6 10 - 413 429
Inventories - - 46 - - 46
Leases receivable - - 74 - - 74
Prepaid items - - 544 - - 544
Deposits with others - - - - 86 86
Total current assets 3,282 10,731 2,362 25 5,364 21,764
Noncurrent assets:
Restricted cash with fiscal agent - 1 487 - - 488
Leases receivable - - 87 - - 87
Advancesto otherfunds - - - 40 - 40
Lease assets,net - - 181 - - 181
Capital assets:
Nondepreciable
Land - 2,155 1,333 - 534 4,022
Construdion in progress - 356 Z37 - 440 1,033
Water rights - - - - - -
Other property - 1,968 - - - 1,968
Depreciable
Infrastructure,net - 19,567 5 - 1,920 21,492
Structures and improvements,net - 31,388 7,348 - 10,012 48,748
Equipment,net - 192 311 - 525 1,028
Other property,net - - - - 496 496
Totalnoncurrent assets - 55,627 9,989 40 13,927 79,583
Totalassets 3,282 66,358 12,351 65 19,291 101,347
Deferred Outflows of Resources
Deferred pensions - - 581 - - 581
Deferred OPEB - - 70 - - 70
Total deferred outFlows of resources _ - 651 - - 651
Liabilities
Current liabilities:
Accounts payable z62 47 130 - 54 493
Salaries and benefits payable - - 116 - - 116
Deposits from others - 285 27 - 169 481
Interest payable - 276 24 - 24 324
Unearned revenue - 19 - - - 19
Dueto otherfunds - - - - 400 400
Accrued vacation and sick leave-current - - 125 - - 125
Lease liability-current - - 76 - - 76
Notes and bonds payable-current - z,513 381 20 274 3,188
Total current liabilities 262 3,140 879 20 921 5,222
Noncurrent liabilities:
Advancesfrom otherfunds - - 121 - 402 523
Accrued vacation and sick leave - - 116 - - 116
Lease liability - - 106 - - 106
Notes and bonds payable - 2z,587 2,309 20 5,351 30,267
Net OPEB liability - - 142 - - 142
Net pension liability - - 2,668 - - 2,668
Total noncurrent liabilities - ZZ,587 5,462 20 5,753 33,822
Totalliabilities 262 25,727 6,341 40 6,674 39,044
Deferred Inflows of Resources
Deferred pensions - - 549 - - 549
Deferred OPEB - - 25 - - 25
Lease revenue - - 161 - - 161
Total deferred inFlows of resources - - 735 - - 735
Net Position
Net investment in capital assets - 30,526 6,544 - 8,296 45,366
Unrestricted 3,020 10,105 (618) 25 4,3Z1 16,853
Total net position $ 3,020 $ 40,631 $ 5,926 $ 25 $ 12,617 $ 62,219
130
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2022 (IN THOUSANDS)
General Flood
Control Zone- Lopez County
Salinas Dam Flood Control Golf Lopez Park Service Areas Total
O�eratina revenues
Charges for services $ 1,234 $ 7,451 $ 4,843 $ - $ 4,794 $ 18,322
Other revenues - - 1 - 93 94
Total operating revenues 1,234 7,451 4,844 - 4,887 18,416
Operating expenses
Salaries and benefits - - 2,029 - - 2,029
Services and supplies 1,500 4,387 1,491 - 4,852 12,230
Othercharges - 3 - - - 3
Depreciation - 1,486 438 - 592 2,516
Amortization - - 76 - - 76
Counrywide cost allocation 15 89 90 - 87 281
Total operating expenses 1,515 5,965 4,124 - 5,531 17,135
Operating income(loss) (281) 1,486 720 - (644) 1,281
Nonoperatinq revenues(expenses)
Propertytaxes - 1,235 - - 586 1,821
Investmentexpense (79) (264) (45) (2) (125) (515)
Interest expense - (946) (87) - (129) (1,162)
Sale of capital assets - - (1) - (7) (8)
Aid from governmental agencies - 6 - - 3 9
Total nonoperating revenues(expenses) (79) 31 (133) (2) 328 145
Income(loss)before contributions
and transfers (360) 1,517 587 (2) (316) 1,426
Capital Contributions - - - - - -
Transfers in - - 13 1 306 320
Transfers out - - (54) - (23) (77)
Change in net position (360) 1,517 546 (1) (33) 1,669
Net position-beginning 3,380 39,114 5,380 26 12,650 60,550
Net position-ending $ 3,020 $ 40,631 $ 5,926 $ 25 $ 12,617 $ 62,219
131
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED )UNE 30, 2022 (IN THOUSANDS)
General Flood
Control Zone- Lopez County
Salinas Dam Flood Control Golf Lopez Park Service Areas Total
Cash Flows From Operating Activities
Receipts from customers and third parties $ 1,235 $ 7,456 $ 4,797 $ - $ 4,827 $ 18,315
Payments for goods and services (1,289) (4,455) (1,578) - (4,989) (12,311)
Payments to employees for services - - (2,023) - - (2,023)
Net cash provided(used)by operating activities (54) 3,001 1,196 - (162) 3,981
Cash Flows from Noncapital Financing Activities
Property tax proceeds - 1,235 - - 586 1,821
Grants and subsidies from other governmental agencies - 6 - - 4 10
Advancesfrom otherfunds - - - - (2,665) (2,665)
Due from other funds - - - - - -
Transfers from other funds - - 13 1 306 320
Transfers to otherfunds - - (54) - (23) (77)
Net cash provided(used)by noncapital
financing activities - 1,241 (41) 1 (1,792) (591)
Cash Flows from Capital and Related Financing Activities
Purchases and construction of capital assets - (354) - - (237) (591)
Proceeds from issuance of long-term debt - - - - 2,691 2,691
Principal paid on capital debt - (2,418) (365) (220) (3,003)
Interest paid on capital debt - (1,025) (89) - (123) (1,237)
Net cash provided(used)by capital and
related financing activities - (3,797) (454) - 2,111 (2,140)
Cash Flows from Investing Activities
Interest received (79) (264) (45) (1) (125) (514)
Net cash provided(used)by investing adivities (79) (264) (45) (1) (125) (514)
Net increase(decrease)in
cash and cash equivalents (133) 181 656 - 32 736
Cash and cash equivalents at beginning of year 3,415 10,545 1,519 25 4,833 20,337
Cash and cash equivalents at end of year $ 3,282 $ 10,726 $ 2,175 $ 25 $ 4,865 $ 21,073
Reconciliation of Operating Income(Loss)to Net Cash
Provided(Used)by Operating Activities
Operating income(loss) $ (281) $ 1,486 $ 720 $ - $ (644) $ 1,281
Adjustments to reconcile operating income poss)to net
cash provided(used)by operating activities:
Depreciation and amortization expense - 1,486 514 - 592 2,592
Changes in assets,deferred outflows of resources,liabilities,
and deferred inflows of resources:
(Increase)decrease in:
Receivables,net - 2 (61) - (35) (94)
Inventory - - (26) - - (26)
Prepaid items - - 118 - - 118
Deferred outFlows-pensions - - (171) - - (171)
Deferred outflows-OPEB - - 30 - - 30
Leases - - (76) - - (76)
Increase(decrease)in:
Accounts payable 227 12 (12) - (53) 174
Deposits from others - 12 14 - 3 29
Salaries and benefits payable - - (9) - - (9)
Deferred inflows-pensions - - 263 - - 263
Deferred inflows-OPEB - - 17 - - 17
Net OPEB liability - - (16) - - (16)
Net pension liability - - (109) - - (109)
Unearned revenue - 3 - - (25) (22)
Total adjustments 227 1,515 476 - 482 2,700
Net cash provided(used)by
operating activities $ (54) $ 3,001 $ 1,196 $ - $ (162) $ 3,981
132
COMBINING FINANCIAL STATEMENTS
INTERNAL SERVICE FUNDS
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INTERNAL SERVICE FUNDS
INTERNAL SERVICE FUNDS:
Internal Service Funds are used to account for the financing of goods and services provided by one
department to other departments on a cost-reimbursement basis. Internal Service Funds used at
the County are listed below:
Garaae
Accounts for resources used to provide a vehicle fleet of cars, trucks, and law enforcement vehicles
for use by various County departments at the lowest possible maintenance and operating costs.
Public Works
Accounts for resources used to provide comprehensive engineering services in the form of
manpower, equipment and contractual services and supplies to all departments, agencies, and
private citizens as requested or required by state law or local ordinance.
Insurance Funds
Account for the operations of the County's Workers' Compensation, Protected Self-Insurance,
Unemployment, Dental Insurance, and Other Post-Employment Benefits (OPEB) programs.
133
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2022 (IN THOUSANDS)
Combined
Public Insurance
Garage Works (5 Funds) Total
Assets
Current assets:
Cash and cash equivalents $ 6,482 $ 19,448 $ 15,960 $ 41,890
Accounts receivable,net - 22 - 22
Inventories 13 599 - 612
Prepaid items - 10 225 235
Total current assets 6,495 20,079 16,185 42,759
Noncurrent assets:
Lease assets,net - 888 - 888
Capital assets:
Structures and improvements,net 124 211 - 335
Equipment,net 4,990 8,133 - 13,123
Total noncurrent assets 5,114 9,232 - 14,346
Total assets 11,609 29,311 16,185 57,105
Deferred Outflows of Resources
Deferred pensions 380 10,876 - 11,256
Deferred OPEB 67 1,266 - 1,333
Total deferred outflows of resources 447 12,142 - 12,589
Liabilities
Current liabilities:
Accounts payable 692 - 476 1,168
Salaries and benefits payable 73 1,654 - 1,727
Interest payable - 1 - 1
Deposits from others - 5,550 - 5,550
Self-insurance liability-current - - 4,714 4,714
Lease liability-current - 112 - 112
Accrued vacation and sick leave-current 104 2,254 - 2,358
Total current liabilities 869 9,571 5,190 15,630
Noncurrent liabilities:
Self-insurance liability - - 17,546 17,546
Lease liability - 792 - 792
Accrued vacation and sick leave 65 628 - 693
Net OPEB liability 135 2,568 - 2,703
Net pension liability 1,746 49,965 - 51,711
Total noncurrent liabilities 1,946 53,953 17,546 73,445
Totalliabilities 2,815 63,524 22,736 89,075
Deferred Inflows of Resources
Deferred pensions 359 10,283 - 10,642
Deferred OPEB 24 451 - 475
Total deferred inflows of resources 383 10,734 - 11,117
Net Position
Net investment in capital assets 5,114 8,315 - 13,429
Unrestricted 3,744 (41,120) (6,551) (43,927)
Total net position $ 8,858 $ (32,805) $ (6,551) $ (30,498)
134
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED )UNE 30, 2022 (IN THOUSANDS)
Combined
Public Insurance
Garage Works (5 Funds) Total
Oqerating revenues
Charges for services $ 6,894 $ 39,998 $ 14,568 $ 61,460
Otherrevenues 2 79 - 81
Total operating revenues 6,896 40,077 14,568 61,541
Operating expenses
Salaries and benefits 929 30,584 1,021 32,534
Services and supplies 3,813 8,031 10,809 22,653
Insurance benefit payments - - 6,386 6,386
Depreciation 1,726 1,050 - 2,776
Amortization - 125 - 125
Countywide cost allocation 140 172 199 511
Total operating expenses 6,608 39,962 18,415 64,985
Operating income(loss) 288 115 (3,847) (3,444)
Nonoperating revenues (expenses�
Investment income (expense) (160) (531) (369) (1,060)
Interest expense - (7) - (7)
Sale of capital assets 308 44 - 352
Otherrevenues(expense) - - - -
Totalnonoperating revenues(expenses) 148 (494) (369) (715)
Income(loss) before capital contributions and
transfers 436 (379) (4,216) (4,159)
Transfers in 79 184 246 509
Transfers out (52) (1,169) - (1,221)
Change in net position 463 (1,364) (3,970) (4,871)
Net position - beginning 8,395 (31,441) (2,581) (25,627)
Net position -ending $ 8,858 $ (32,805) $ (6,551) $ (30,498)
135
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2022 (IN THOUSANDS)
Combined
Public Insurance
Gara9e Works (5 Funds) Total
Cash Flows From Operating Activities
Receipts from interfund billings $ 6,896 $ 40,079 $ 14,567 $ 61,542
Paymentsfor goods and services (3,468) (8,273) (2,689) (14,430)
Payments to employees for services (1,478) (30,983) (3,248) (35,709)
Paymentsforinsurance benefits - - (5,144) (5,144)
Payments for premiums - - (6,012) (6,012)
Net cash provided(used)by operating activities 1,950 823 (2,526) 247
Cash Flows from Noncapital Financing Activities
Grants and subsidies from other governmental agencies - - - -
Transfers from other funds 79 184 246 509
Transfersto otherfunds (52) (1,169) - (1,221)
Net cash provided(used)by noncapital
financing activities 27 (985) 246 (712)
Cash Flows from Capital and Related Financing Activities
Purchases and construction of capitalassets (1,737) (1,260) - (2,997)
Proceeds from sale of capital assets 308 44 - 352
Interest paid on capital debt - (7) - (7)
Net cash provided(used)by capital and
related financing activities (1,429) (1,223) - (2,652)
Cash Flows from Investing Activities
Interestreceived (160) (531) (369) (1,060)
Net cash provided(used)by investing activities (160) (531) (369) (1,060)
Netincrease(decrease)in cash and cash equivalents 388 (1,916) (2,649) (4,177)
Cash and cash equivalents at beginning of year 6,094 21,364 18,609 46,067
Cash and cash equivalents at end of year $ 6,482 $ 19,448 $ 15,960 $ 41,890
Reconciliation of Operating Income(Loss)to Net Cash
Provided(Used)by Operating Activities
Operating income(loss) $ 288 $ 115 $ (3,847) $ (3,444)
Adjustments to reconcile operating income(loss)to net
cash provided(used)by operating adivities:
Depreciation and amortization expense 1,726 1,175 - 2,901
Changes in assets,deferred outflows of resources,liabilities,
and deferred inflows of resources:
(Increase)decreasein:
Receivables,net - 1 - 1
Inventory 2 3 - 5
Prepaid expenses - (10) (224) (234)
Deferred outflows-pensions (30) (3,085) - (3,115)
Deferred outFlows-OPEB 35 623 - 658
Leases - (125) - (125)
Increase(decrease)in:
Accounts payable 481 - 301 782
Deposits from others - 62 - 62
Salaries and benefits payable (32) 216 - 184
Deferred inFlows-pensions 116 4,869 - 4,985
Deferred inFlows-OPEB 16 306 - 322
Net OPEB liability (26) (431) - (457)
Net pension liability (626) (2,896) - (3,522)
Self-insurance liability - - 1,244 1,244
Total adjustments 1,662 708 1,321 3,691
Net cash provided(used)by operating activities $ 1,950 $ 823 $ (2,526) $ 247
136
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS - INSURANCE
JUNE 30, 2022 (IN THOUSANDS)
Workers' Protected Unemployment Dental
Compensation Self-Insurance Insurance Insurance OPEB Total
Assets
Current assets:
Cash and cash equivalents $ 13,001 $ 1,423 $ 339 $ 806 $ 391 $ 15,960
Prepaid expenses 225 - - - - 225
Total current assets 13,226 1,423 339 806 391 16,185
Total assets 13,226 1,423 339 806 391 16,185
Liabilities
Current liabilities:
Accounts payable 209 201 - 66 - 476
Self-insurance liability 3,251 1,463 - - - 4,714
Total current liabilities 3,460 1,664 - 66 - 5,190
Noncurrent liabilities:
Self-insurance liability 14,028 3,518 - - - 17,546
Total noncurrent liabilities 14,028 3,518 - - - 17,546
Totalliabilities 17,488 5,182 - 66 - 22,736
Net Position
Unrestricted (4,262) (3,759) 339 740 391 (6,551)
Total net position $ (4,262) $ (3,759) $ 339 $ 740 $ 391 $ (6,551)
137
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS - INSURANCE
FOR THE YEAR ENDED JUNE 30, 2022 (IN THOUSANDS)
Workers' Protected Unemployment Dental
Compensation Self-Insurance Insurance Insurance OPEB Total
Ooerating revenues
Charges for services $ 5,545 $ 4,294 $ 440 $ 1,782 $ 2,507 $ 14,568
Total operating revenues 5,545 4,294 440 1,782 2,507 14,568
Ooerating expenses
Salaries and benefits 1,021 - - - - 1,021
Seroices and supplies 4,511 4,058 84 281 1,875 10,809
Insurance benefit payments 2,320 1,380 175 1,807 704 6,386
Countywide cost allocation 59 140 - - - 199
Total operating expenses 7,911 5,578 259 2,088 2,579 18,415
Operating income(loss) (2,366) (1,284) 181 (306) (72) (3,847)
Nonoqeratinq revenues(exqenses)
Investmentincome(expense) (305) (27) (8) (19) (10) (369)
Totalnonoperating revenues(expenses) (305) (27) (8) (19) (10) (369)
Income(loss)before transfers (2,671) (1,311) 173 (325) (82) (4,216)
Transfers in 246 - - - - 246
Transfers out - - - - - -
Change in net position (2,425) (1,311) 173 (325) (82) (3,970)
Net position-beginning (1,837) (2,448) 166 1,065 473 (2,581)
Net position-ending $ (4,262) $ (3,759) $ 339 $ 740 $ 391 $ (6,551)
138
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS - INSURANCE
FOR THE YEAR ENDED )UNE 30, 2022 (IN THOUSANDS)
Workers' Protected Unemployment Dental
Compensation Self-Insurance Insurance Insurance OPEB Total
Cash Flows From Operating Activities
Receipts from interfund billings $ 5,545 $ 4,293 $ 440 $ 1,782 $ 2,507 $ 14,567
Paymentsfor goods and services (1,021) (1,297) (84) (252) (35) (2,689)
Payments to employees for services (3,248) - - - - (3,248)
Paymentsforinsurance benefits (2,090) (368) (175) (1,807) (704) (5,144)
Payments for premiums (1,377) (2,795) - - (1,840) (6,012)
Net cash provided(used)by operating activities (2,191) (167) 181 (277) (72) (2,526)
Cash Flows from Noncapital Financing Activities
Grants and subsidies from other governmental agencies - - - - - -
Transfersfrom otherfunds 246 - - 246
Transfers to otherfunds - - - - - -
Net cash provided(used)by noncapital
financing activities 246 - - - - 246
Cash Flows from Investing Activities
Interest received(paid) (305) (27) (8) (19) (10) (369)
Net cash provided(used)by investing activities (305) (27) (8) (19) (10) (369)
Netincrease(decrease)in
cash and cash equivalents (2,250) (194) 173 (296) (82) (2,649)
Cash and cash equivalents at beginning of year 15,251 1,617 166 1,102 473 18,609
Cash and cash equivalents at end of year $ 13,001 $ 1,423 $ 339 $ 806 $ 391 $ 15,960
Reconciliation of Operating Income(Loss)to Net Cash
Provided(Used)by Operating Activities
Operating income(loss) $ (2,366) $ (1,284) $ 181 $ (306) $ (72) $ (3,847)
Adjustments to reconcile operating income(loss)to net
cash provided(used)by operating activities:
Changes in assets and liabilities:
(Increase)decreasein:
Prepaid Items (224) - - - - (224)
Increase(decrease)in:
Accounts payable 168 104 - 29 - 301
Salaries and benefits payable - - - - - -
Self-insurance liability 231 1,013 - - - 1,244
Total adjustments 175 1,117 - 29 - 1,321
Net cash provided(used)by operating activities � (Z,191) $ (167) $ 181 $ (277) $ (72) $ (2,526)
139
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COMBINING FINANCIAL STATEMENTS
FIDUCIARY FUNDS
�
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FIDUCIARY FUNDS
PENSION TRUST:
The San Luis Obispo County Pension Trust is an independent trust that administers the San Luis
Obispo County Employees Retirement Plan on behalf of the County.
INVESTMENT TRUST FUNDS:
These funds are used by the County to account for the assets of legally separate entities who deposit
cash with the County Treasurer. These include school and community college districts: other special
districts governed by local boards, regional boards and authorities: courts and pass through funds
for tax collections for cities. These funds represent the assets, primarily cash and investments, and
the related liability of the County to disburse these monies on demand. The County combines
Investment Trust Funds into four reporting types because of their similar nature: School Districts,
Special Districts, Courts, and Other Local Boards.
CUSTODIAL FUNDS:
These funds account for assets held by the County as an agent for various local governments.
The County has the following types of Custodial Funds:
1915 Act
Account for temporary holding of funds for tax assessment areas created under the 1915
Improvement Act.
Clearinq Funds
Serve as a temporary holding fund for subsequent disposition to an outside agency or taxing
authority.
Other Funds
Account for temporary holding of funds that are not specifically classified in other agency categories.
140
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2022 (IN THOUSANDS)
Clearing and 1915 Act Other
Revolving Funds Service Funds Custodial Funds
(92 Funds) (17 Funds) (35 Funds) Total
ASSETS
Cash and cash equivalents $ 85,961 $ 134 $ 21,316 $ 107,411
Taxes for other governments 452 - - 452
Other assets 3 - 3,854 3,857
Capital assets, net - - 17 17
Total assets $ 86,416 $ 134 $ 25,187 $ 111,737
LIABILITIES
Other current liabilities $ 66,481 $ - $ 9,234 $ 75,715
Other long-term liabilities 9 - - 9
Totalliabilities $ 66,490 $ - $ 9,234 $ 75,724
NET POSITION
Restricted for:
Individuals, organizations and other governments $ 19,926 $ 134 $ 15,953 $ 36,013
141
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022 (IN THOUSANDS)
Clearing and 1915 Act Other
Revolving Funds Service Funds Custodial Funds
(92 Funds) (17 Funds) (35 Funds) Total
ADDITIONS
Interest $ 486 $ 21 $ 283 $ 790
Property taxes collected for other governments 221,420 49 - 221,469
Sales taxes collected for other governments - - 19,135 19,135
Other Income 9,884 - 2,770 12,654
Total additions 231,790 70 22,188 254,048
DEDUCTIONS
Administrative expenses 26 - 1 27
Interestexpenses 26,655 5 - 26,660
Payments to other local governments 1,989 3 1,244 3,236
Property taxes distributed to other governments 218,398 44 17,436 235,878
Total deductions 247,068 52 18,681 265,801
Change in net position (15,278) 18 3,507 (11,753)
Net position -beginning,as restated 35,204 116 12,446 47,766
Net position -ending $ 19,926 $ 134 $ 15,953 $ 36,013
142
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF FIDUCIARY NET POSITION
INVESTMENT TRUST FUNDS
7UNE 30, 2022 (IN THOUSANDS)
School Special Other
Districts Districts Courts Local Boards
(39 Funds) (32 Funds) (6 Funds) (19 Funds) Total
ASSETS
Cash and cash equivalents $ 444,945 $ 34,067 $ 1,501 $ 30,370 $ 510,883
Total assets $ 444,945 $ 34,067 $ 1,501 $ 30,370 $ 510,883
NET POSITION
Net position held in trust for pool participants $ 444,945 $ 34,067 $ 1,501 $ 30,370 $ 510,883
Total Net Position $ 444,945 $ 34,067 $ 1,501 $ 30,370 $ 510,883
143
COUNTY OF SAN LUIS OBISPO
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
INVESTMENT TRUST FUNDS
7UNE 30, 2022 (IN THOUSANDS)
School Special Other
Districts Districts Courts Local Boards
(39 Funds) (32 Funds) (6 Funds) (19 Funds) Total
Additions
Contributions to pooled investments $ 1,134,840 $ 12,804 $ 14,527 $ 50,811 $ 1,212,982
Interest 1,989 249 - 116 2,354
Total additions 1,136,829 13,053 14,527 50,927 1,215,336
Deductions
Distributions from investment pool 1,131,456 27,183 14,347 52,090 1,225,076
Total deductions 1,131,456 27,183 14,347 52,090 1,225,076
Change in net position 5,373 (14,130) 180 (1,163) (9,740)
Net position - beginning 439,572 48,197 1,321 31,533 520,623
Net position - ending $ 444,945 $ 34,067 $ 1,501 $ 30,370 $ 510,883
144
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GENERAL FUND
DETAIL BUDGETARY COMPARISON SCHEDULES
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COUNTY OF SAN LUIS OBISPO
General Fund
Detail Schedule of Expenditures
Budget to Actual Comparison (in thousands)
For the Year Ended June 30, 2022
Original Final Variance with
Description Budget Budget Actual Final Budget
General Government-Expenditures
Le4islative and Administrative
Administrative Office:
Salaries,wages,and benefits $ 2,752 $ 2,808 $ 2,424 $ 384
Services and supplies 1,169 8,541 3,236 5,305
Othercharges - 4,346 - 4,346
Expenditure transfers and reimbursements (110) (110) (105) (5)
Total 3,811 15,585 5,555 10,030
Board of Supervisors:
Salaries,wages,and benefits 1,563 1,692 1,616 76
Services and supplies 209 193 162 31
Expenditure transfers and reimbursements (38) (38) (38) -
Total 1,734 1,847 1,740 107
Clerk/Recorder:
Salaries,wages,and benefits 2,666 2,666 2,451 215
Services and supplies 1,332 2,052 1,758 294
Capital outlay - 413 9 404
Expenditure transfers and reimbursements (1) (1) - (1)
Total 3,997 5,130 4,218 912
Communications&Outreach:
Salaries,wages,and benefits 124 140 133 7
Services and supplies 21 42 32 10
Total 145 182 165 17
Total Legislative and Administrative 9,687 22,744 11,678 11,066
Finance
Assessor:
Salaries,wages,and benefits 9,972 10,363 9,520 843
Services and supplies 1,116 1,157 928 229
Total 11,088 11,520 10,448 1,072
Auditor-Controller-Treasurer-Tax Collector
Public Administrator:
Salaries,wages,and benefits 8,090 8,258 8,056 202
Services and supplies 741 894 580 314
Capital outlay - 11 11 -
Expenditure transfers and reimbursements (20) (20) (18) (2)
Total 8,811 9,143 8,629 514
Total Finance 19,899 20,663 19,077 1,586
continued
145
COUNTY OF SAN LUIS OBISPO
General Fund
Detail Schedule of Expenditures
Budget to Actual Comparison (in thousands)
For the Year Ended June 30, 2022
Original Final Variance with
Description Budget Budget Actual Final Budget
General Government-Expenditures(continued)
Counsel
County Counsel:
Salaries,wages,and benefits $ 4,162 $ 4,258 $ 3,990 $ 268
Services and supplies 1,031 2,150 1,641 509
TotalCounsel 5,193 6,408 5,631 777
Personnel
Personnel:
Salaries,wages,and benefits 5,289 5,680 5,374 306
Services and supplies 2,561 3,086 2,286 800
Expenditure transfers and reimbursement (1,161) (1,314) (1,195) (119)
Total Personnel 6,689 7,452 6,465 987
Talent Development:
Salaries,wages,and benefits 229 229 215 14
Services and supplies 443 527 370 157
Expenditure transfers and reimbursement (6) (6) - (6)
Total Talent Development 666 750 585 165
Total Personnel 7,355 8,202 7,050 1,152
Property Mana4ement
Facilities Management:
Salaries,wages,and benefits 4,921 4,921 4,614 307
Services and supplies 4,086 4,267 3,991 276
Expenditure transfers and reimbursements (2,117) (2,117) (2,204) 87
Total 6,890 7,071 6,401 670
Maintenance Projects:
Services and supplies 3,872 11,305 3,352 7,953
Total 3,872 11,305 3,352 7,953
Central Services
Salaries,wages,and benefits 1,991 2,133 2,004 129
Services and supplies 3,301 3,393 927 2,466
Othercharges 110 110 110 -
Expenditure transfers and reimbursements (515) (515) (715) 200
Total 4,887 5,121 2,326 2,795
Total Property Management 15,649 23,497 12,079 11,418
continued
146
COUNTY OF SAN LUIS OBISPO
General Fund
Detail Schedule of Expenditures
Budget to Actual Comparison (in thousands)
For the Year Ended June 30, 2022
Original Final Variance with
Description Budget Budget Actual Final Budget
General Government-Expenditures(continued)
Other General
Information Technology:
Salaries,wages,and benefits $ 13,756 $ 14,040 $ 13,469 $ 571
Services and supplies 5,074 6,027 4,948 1,079
Capital outlay - 97 56 41
Expenditure transfers and reimbursements (6,326) (5,819) (5,829) 10
Total 12,504 14,345 12,644 1,701
Non-Department Financing Uses:
Services and supplies - 1,938 - 1,938
Other Charges - - - -
Expenditure transfers and reimbursements (15,387) (15,387) (15,529) 142
Total (15,387) (13,449) (15,529) 2,080
Contributions to Other Agencies:
Services and supplies 1,894 2,149 1,849 300
Total 1,894 2,149 1,849 300
Non-Department Other:
Services and supplies 591 610 425 185
Total 591 610 425 185
Total Other General (398) 3,655 (611) 4,266
Total General Government 57,385 85,169 54,904 30,265
Public Protection- Exnenditures
Judicial
Court Operations Fund:
Other charges 2,427 2,527 2,414 113
Total 2,427 2,527 2,414 113
District Attorney:
Salaries,wages,and benefits 19,282 19,505 18,535 970
Services and supplies 2,387 2,608 2,479 129
Capital outlay - 7 7 -
Expenditure transfers and reimbursements (26) (26) (24) (2)
Total 21,643 22,094 20,997 1,097
Child Support Services:
Salaries,wages,and benefits 4,176 4,176 3,201 975
Services and supplies 840 840 467 373
Total 5,016 5,016 3,668 1,348
Grand Jury:
Salaries,wages,and benefits 40 40 22 18
Services and supplies 85 90 56 34
Expenditure transfers and reimbursements - - (8) 8
Total 125 130 70 60
continued
147
COUNTY OF SAN LUIS OBISPO
General Fund
Detail Schedule of Expenditures
Budget to Actual Comparison (in thousands)
For the Year Ended June 30, 2022
Original Final Variance with
Description Budget Budget Actual Final Budget
Public Protection- Exnenditures(continued)
Judicial(continued)
Public Defender:
Services and supplies $ 7,729 $ 8,327 $ 8,205 $ 122
Total 7,729 8,327 8,205 122
Total Judicial 36,940 38,094 35,354 2,740
Police Protection
Sheriff-Coroner:
Salaries,wages,and benefits 74,351 77,168 74,642 2,526
Services and supplies 14,639 15,306 14,992 314
Othercharges 40 867 195 672
Capital outlay 264 844 616 228
Capital outlay- leases - - 1,974 (1,974)
Expenditure transfers and reimbursements (1,031) (1,051) (1,123) 72
Total Police Protection 88,263 93,134 91,296 1,838
Detention and Correction
Probation Department:
Salaries,wages,and benefits 21,375 21,710 19,415 2,295
Services and supplies 5,803 6,658 5,463 1,195
Expenditure transfers and reimbursements (252) (252) (254) 2
Total Detention and Correction 26,926 28,116 24,624 3,492
Fire Protection
County Fire:
Services and supplies 27,131 27,583 24,916 2,667
Capital outlay 3,082 5,230 1,414 3,816
Expenditure transfers and reimbursements - - (1) 1
Total Fire Protection 30,213 32,813 26,329 6,484
Protective Inspection
Agricultural Commissioner:
Salaries,wages,and benefits 6,326 6,368 6,062 306
Services and supplies 882 898 869 29
Other charges 31 31 - 31
Capital outlay - 41 - 41
Expenditure transfers and reimbursements (2) (2) (2) -
Total Protective Inspection 7,237 7,336 6,929 407
Other Protection
Animal Services:
Salaries,wages,and benefits 2,177 1,969 1,746 223
Services and supplies 1,144 1,353 1,111 242
Capital outlay - 5 - 5
Total 3,321 3,327 2,857 470
continued
148
COUNTY OF SAN LUIS OBISPO
General Fund
Detail Schedule of Expenditures
Budget to Actual Comparison (in thousands)
For the Year Ended June 30, 2022
Original Final Variance with
Description Budget Budget Actual Final Budget
Public Protection- Exnenditures(continued)
Other Protection (continued)
Emergency Services:
Salaries,wages,and benefits $ 1,152 $ 1,168 $ 1,012 $ 156
Services and supplies 647 1,076 1,131 (55)
Othercharges 451 658 405 253
Capital outlay - 282 45 237
Expenditure transfers and reimbursements - - (1) 1
Total 2,250 3,184 2,592 592
Planning Department:
Salaries,wages,and benefits 15,001 14,803 13,102 1,701
Services and supplies 2,671 4,912 2,499 2,413
OtherCharges - 130 6 124
Capital outlay- leases - - 353 (353)
Expenditure transfers and reimbursements - - (24) 24
Total 17,672 19,845 15,936 3,909
Waste Management:
Services and supplies 2,470 2,184 1,798 386
Other charges -- 632 52 580
Total 2,470 2,816 1,850 966
Total OtherProtection 25,713 29,172 23,235 5,937
Total Public Protection 215,292 228,665 207,767 20,898
Public Ways and Facilities- Exaenditures
Public Works:
Services and supplies 5,811 6,173 3,246 2,927
Othercharges - 425 147 278
Total 5,811 6,598 3,393 3,205
Groundwater Sustainabilitv
Salaries,wages,and benefits - 175 144 31
Services and supplies - 1,226 104 1,122
Capital outlay - 20 19 1
Total - 1,421 267 1,154
Total Public Ways and Facilities 5,811 8,019 3,660 4,359
Health and Sanitation- Expenditures
Health
Public Health:
Salaries,wages,and benefits 29,650 32,518 28,420 4,098
Services and supplies 12,321 20,411 18,622 1,789
Othercharges 1,034 2,041 1,183 858
Capital outlay - 1,026 450 576
Capital outlay- leases - - 12,535 (12,535)
Expenditure transfers and reimbursements (7,579) (11,908) (11,376) (532)
Total 35,426 44,088 49,834 (5,746)
149
COUNTY OF SAN LUIS OBISPO
General Fund
Detail Schedule of Expenditures
Budget to Actual Comparison (in thousands)
For the Year Ended June 30, 2022
Original Final Variance with
Description Budget Budget Actual Final Budget
Health and Sanitation- Exnenditures(continued)
Health(continued)
Behavioral Health:
Salaries,wages,and benefits $ 39,551 $ 39,138 $ 34,553 $ 4,585
Services and supplies 50,011 58,396 51,657 6,739
Other charges 2,070 2,268 2,115 153
Capital outlay- leases - - 13,834 (13,834)
Expenditure transfers and reimbursements (1,962) (2,348) (1,963) (385)
Total 89,670 97,454 100,196 (2,742)
Total Health 125,096 141,542 150,030 (8,488)
Total Health and Sanitation 125,096 141,542 150,030 (8,488)
Public Assistance-Expenditures
Administration
Department of Social Services:
Salaries,wages,and benefits 58,586 59,336 53,602 5,734
Services and supplies 21,140 23,381 20,467 2,914
Othercharges 13,447 26,307 13,046 13,261
Capital outlay 65 65 38 27
Expenditure transfers and reimbursements (63) (43) (126) 83
Total Administration 93,175 109,046 87,027 22,019
Aid Programs
Aid Foster Care Non-Fed:
Services and supplies 92 92 92 -
Othercharges 28,515 29,162 23,246 5,916
Expenditure transfers and reimbursement (238) (238) - (238)
Total 28,369 29,016 23,338 5,678
Calworks Assistance:
Other charges 11,163 11,985 11,298 687
Total 11,163 11,985 11,298 687
Total Aid Programs 39,532 41,001 34,636 6,365
General Relief
General Relief:
Other charges 1,716 1,716 1,687 29
Total General Relief 1,716 1,716 1,687 29
continued
150
COUNTY OF SAN LUIS OBISPO
General Fund
Detail Schedule of Expenditures
Budget to Actual Comparison (in thousands)
For the Year Ended June 30, 2022
Original Final Variance with
Description Budget Budget Actual Final Budget
Public Assistance-Expenditures(continued)
Veterans Service
Veterans Service:
Salaries,wages,and benefits $ 840 $ 876 $ 783 $ 93
Services and supplies 88 115 102 13
Expenditure transfers and reimbursements - - (5) 5
Total Veterans Service 928 991 880 111
Other Assistance
Law Enforcement Med Care:
Salaries,wages,and benefits 252 253 245 8
Services and supplies 8,841 9,048 8,469 579
Expenditure transfers and reimbursements (232) (232) (232) -
Total Other Assistance 8,861 9,069 8,482 587
Total Public Assistance 144,212 161,823 132,712 29,111
Education-Exnenditures
Aqricultural Education
�UC Cooperative Extension
Salaries,wages,and benefits 528 543 420 123
Services and supplies 107 118 99 19
Total Agricultural Education 635 661 519 142
TotalEducation 635 661 519 142
Recreation and Culture-Exnenditures
Community Parks
Salaries,wages,and benefits 3,330 3,330 3,158 172
Services and supplies 1,977 2,190 2,116 74
Capital outlay 90 3,262 3 3,259
OtherCharges 108 158 146 12
Expenditure transfers and reimbursements (196) (196) (163) (33)
Total Community Parks 5,309 8,744 5,260 3,484
Total Recreation and Culture 5,309 8,744 5,260 3,484
Debt Service
Debt service: principal - - 3,542 (3,542)
Debt service: interest - - 448 (448)
Total Debt Service - - 3,990 (3,990)
Total General Fund- Expenditures 553,740 634,623 558,842 75,781
(Before Contingencies)
continued
151
COUNTY OF SAN LUIS OBISPO
General Fund
Detail Schedule of Expenditures
Budget to Actual Comparison (in thousands)
For the Year Ended June 30, 2022
Original Final Variance with
Description Budget Budget Actual Final Budget
Continaencies
A�propriation for Contin.e�
Contingencies-General Fund:
Appropriation for contingency $ 29,842 $ 23,017 $ - $ 23,017
Total 29,842 23,017 - 23,017
Total Appropriation for Contingency 29,842 23,017 - 23,017
Total Contingency 29,842 23,017 - 23,017
Total General Fund Expenditures $ 583,582 $ 657,640 $ 558,842 $ 98,798
Explanation of Differences between Budgetary Outflows and GAAP
Expenditures
Uses/outflows of resources
Actual amounts(budgetary basis)from the
Budget to Actual Comparison Schedule $ 558,842
Differences-budget to GAAP:
Expenditures by funds no longer meeting the special revenue
fund classification which are presented with the General
Fund for financial reporting purposes 8,840
Total expenditures as reported on the Statement of
Revenues, Expenditures and Changes in Fund
Balances-Governmental Funds $ 567,682
152
STATISTICAL SECTION
�
• �
� i � �
COUNTY OF SAN LUIS OBISPO
Statistical Section
This part of the County of San Luis Obispo's(County) comprehensive annual financial report presents
detailed information as a context for understanding this year's financial statements, note disclosures,
and required supplementary information.
Page
Financial Trends Information
These schedules contain trend information that may assist the reader in assessing the
County's current financial performance by placing it in historical perspective ............. 154
Revenue Capacity Information
These schedules contain information that may assist the reader in assessing the
viability of the County's two most significant local revenue sources: property taxes and
salestaxes ...................................................................................................................... 159
Debt Capacity Information
These schedules present information that may assist the reader in analyzing the
affordability of the County's current levels of outstanding debt and the County's ability
to issue additional debt in the future ............................................................................. 164
Demographic and Economic Information
These schedules ofFer economic and demographic indicators that are commonly used
for financial analysis and that can enhance a reader's understanding of the County's
present and ongoing financial status ............................................................................. 167
Operating Information
These schedules contain service and infrastructure indicators about how the
information in the County's financial statements relates to the services the County
provides and the activities it performs ........................................................................... 169
153
County of San Luis Obispo
Net Position by Component
Last Ten Fiscal Years
(In Thousands)
(UNAUDITED)
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
GovernmenWl Activities
Netinvestmentin capital assets $ 1,103,924 $ 1,112,934 $ 1,130,241 $ 1,168,573 $ 1,178,967 $ 1,185,073 $ 1,188,830 $ 1,202,709 $ 1,210,972 $ 1,216,907
Restricted 28,863 43,109 37,722 41,230 64,822 29,836 41,281 66,655 104,024 98,489
Unrestricted 304,257 325,113 (150,074) (170,962) (226,970) (217,606) (220,206) (286,622) (248,517) (193,229)
Total governmental activities net position $ 1,437,044 $ 1,481,156 $ 1,017,889 $ 1,038,841 $ 1,016,819 $ 997,303 $ 1,009,905 $ 982,742 $ 1,066,479 $ 1,122,167
Business-7ype Adivities
Net investment in capital assets $ 167,138 $ 188,485 $ 213,455 $ 237,157 $ 270,246 $ 283,410 $ 285,888 $ 288,781 $ 283,512 $ 296,939
Unrestricted 58,433 98,097 97,173 93,158 85,316 73,113 83,039 94,335 110,255 119,269
ToWI business-7ype adivities net position $ 225,571 $ 286,582 $ 310,628 $ 330,315 $ 355,562 $ 356,523 $ 368,927 $ 383,116 $ 393,767 $ 416,208
Total Primary Government
Net investment in capital assets $ 1,271,062 $ 1,301,419 $ 1,343,696 $ 1,405,730 $ 1,449,213 $ 1,468,483 $ 1,474,718 $ 1,491,490 $ 1,494,484 $ 1,513,846
Restricted 28,863 43,109 37,722 41,230 64,822 29,836 41,281 66,655 104,024 95,653
Unrestric[ed 362,690 423,210 (52,901) (77,804) (141,654) (144,493) (137,167) (192,287) (138,262) (71,124)
ToWI primary government net position $ 1,662,615 $ 1,767,738 $ 1,328,517 $ 1,369,156 $ 1,372,381 $ 1,353,826 $ 1,378,832 $ 1,365,858 $ 1,460,246 $ 1,538,375
Noce:
Wlth the Implementation of GASB Statement No.66,whlch required the presentation of[he County's ne[pension obligation,Unreshicted Net Position became negative.
Sources:
Statement of Net Position beginning in FV 2012-13 antl ongoing
154
County of San Luis Obispo
Changes in Net Position
Last Ten Fiscal Years
(In Thousands)
(UNAUDITED)
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Program Expenses
Governmental Activities
General government $ 34,507 $ 36,866 $ 45,598 $ 53,282 $ 56,390 $ 56,858 $ 54,434 $ 53,926 $ 55,612 $ 54,592
Public protection 142,353 148,135 162,432 170,134 187,255 183,814 213,809 241,749 204,861 204,993
Public ways and facilities 28,474 28,253 34,136 33,418 32,098 41,606 34,202 33,199 36,017 35,995
Health and sanitation 69,222 74,313 78,137 88,326 99,150 103,822 119,259 113,463 121,358 132,713
Public assistance 97,929 99,449 110,470 118,089 125,102 122,753 131,432 132,868 134,476 132,751
Education 9,922 9,611 9,457 11,934 12,787 12,754 12,698 14,322 14,213 11,930
Recreation and culturalservices 9,735 7,745 9,755 8,702 10,385 8,927 11,891 11,501 10,497 12,310
Interest on long term debt 6,041 5,270 5,124 4,602 4,555 11,840 1,468 7,057 9,645 7,947
Total Governmental Activities Expenses 398,183 409,642 455,109 488,487 527,722 542,374 579,193 608,085 586,679 593,231
Business-Type Activities Expenses
Airport 5,435 5,664 6,187 6,117 6,391 7,966 8,398 10,133 9,146 11,366
Golf 2,779 2,608 2,968 3,131 3,111 3,297 3,491 3,347 3,869 4,231
State Water Contract 5,536 5,992 6,351 5,848 5,571 5,909 6,973 7,709 6,928 5,924
Nacimiento Water Contract 14,738 13,840 15,776 14,888 14,191 14,044 14,318 13,257 14,816 13,889
Lapez Flaad Control 6,548 6,116 6,128 6,220 6,387 7,072 7,004 6,733 7,087 6,941
Lopez Park - - 4 4 4 3 3 2 1 -
General Flood Control Zone-Salinas Dam 746 809 845 824 851 1,056 1,142 913 1,170 1,521
County Service Areas 3,779 3,857 4,194 4,065 4,218 4,445 4,747 4,670 4,697 5,636
Los Osos Wastewater 344 231 235 3,807 10,322 10,918 11,544 11,636 11,581 11,663
Total Business-Type Activities Expenses 39,905 39,117 42,688 44,904 51,046 54,710 57,620 58,400 59,295 61,171
Total Primary Government Expenses $ 438,088 $ 448,759 $ 497,797 $ 533,391 $ 578,768 $ 597,084 $ 636,813 $ 666,485 $ 645,974 $ 654,402
Program Revenues
Governmental Ac[ivities
Fees,Fines,Charges for Services
6eneralgovernment $ 16,575 $ 14,678 $ 12,407 $ 13,702 $ 14,839 $ 12,937 $ 13,484 $ 12,967 $ 15,502 $ 14,414
Public protection 16,352 23,035 20,774 20,768 21,231 23,666 22,946 21,291 23,552 23,648
Public ways and facilities 5,465 4,356 4,255 9,434 7,462 6,155 5,721 4,797 5,532 4,343
Health and sanitation 5,196 6,570 6,631 7,179 6,757 7,501 7,698 8,571 8,038 8,022
Public assis[ance 2,920 2,070 2,077 2,107 2,032 1,763 1,194 1,155 926 950
Education 3,583 1,723 2,998 1,952 1,644 2,006 1,943 2,193 1,622 1,315
Recreation and culturalservices 4,435 4,537 5,056 4,975 5,127 5,592 5,515 4,295 5,714 6,113
Operating Grantr and Contributions
Generalgovemment 122 252 54 735 748 321 200 685 789 2,058
Public protection 50,477 54,233 62,359 63,528 52,205 58,184 59,592 59,974 67,187 76,907
Public ways and facilities 15,018 14,688 14,145 11,025 9,918 11,506 10,485 11,302 11,073 14,279
Health and sanitation 55,064 57,344 62,338 61,950 67,626 76,494 76,211 74,699 91,988 107,891
Public assistance 87,912 89,640 94,775 98,414 102,784 105,848 107,758 114,525 113,555 123,834
Education 175 102 105 124 132 173 143 204 219 374
Recreation and cultural services 350 - 131 153 273 671 200 230 271 511
Capital Grants and Contributions
General government 8 69 156 45 - 349 930 - - -
Public protection - 3,315 9,701 4,420 7,820 656 1,197 1,799 3,814 43
Public ways and facilities 3,479 5,570 6,435 6,031 6,655 8,893 14,361 17,732 12,856 11,993
Health and sanitation - - - - - - - - - -
Education - - - - - - - 267 - -
Recreation and cultural services 50 282 1,776 10,804 1,157 191 28 86 189 413
Total Governmental Activities 267,181 282,464 306,173 317,346 308,410 322,906 329,606 336,772 362,827 397,108
Source:Statement of Activities (continued)
155
3
County of San Luis Obispo
Changes in Net Position
Last Ten Fiscal Years
(In Thousands)
(UNAUDITED)
2012-13 2013-14 2014-15 2015-16 2016-17 2017-2018 2018-19 2019-20 2020-21 2021-22
Business-Type Activities
Fees,Fines,Charges for Services
Airport $ 4,053 $ 4,493 $ 4,883 $ 5,165 $ 5,662 $ 7,158 $ 8,947 $ 8,300 $ 6,140 $ 9,314
Golf 2,639 2,779 2,967 2,589 2,291 2,584 2,717 2,750 4,376 4,843
State Water Contract 6,185 6,358 6,562 6,846 5,941 6,110 7,656 7,825 7,470 6,846
Nacimiento Water Contract 13,800 13,685 9,682 17,048 15,149 15,709 16,947 16,732 17,458 16,696
Lopez Flood Control 6,ll4 6,123 6,208 6,530 6,708 6,677 7,148 6,978 6,927 7,451
Lopez Park - - - - - - - - - -
General Flood Control Zone-Salinas Dam 730 861 794 960 904 909 913 2,884 1,370 1,234
County Service Areas 3,352 3,312 3,408 - 2,301 3,662 3,894 4,492 4,702 4,739
Los Osos Wastewater - - - 3,551 3,620 4,467 5,100 5,245 5,324 7,129
Operating Grants and Contributions
Airport 132 127 126 126 126 396 328 4,644 7,580 5,823
Golf - - 269 - 1,017 - - - 105 -
State Water Contract 13 13 13 13 14 14 14 14 15 14
Nacimiento Water Contract 29 12 9 9 - 6 - - - -
Lapez Flaad Control 15 8 8 8 - 7 5 5 6 6
Lopez Park - - - - - - - - - -
General Flood Control Zone-Salinas Dam - - - - - - 26 - - -
County Service Areas 3 3 211 295 3 3 13 3 3 3
Los Osos Wastewater 1 - - 2,810 18 - - - - -
Capital Grants and Contributions
Airpart 572 1,770 365 7,069 15,379 2,211 3,139 505 1,138 12,259
Nacimiento Water Contract - - - - - 24 - - 200 -
County Service Areas 294 2 - - - - - - - -
Los Osos Wastewater 35,717 57,507 26,385 4,157 10,086 2,982 4,860 2,618 2,546 2,847
Total Business-Type Activities Revenues 73,709 97,053 61,890 57,176 69,219 52,919 61,707 62,995 65,360 79,204
Total Primary Government Revenues $ 340,890 $ 379,517 $ 368,063 $ 374,522 $ 377,629 $ 375,825 $ 391,313 $ 399,767 $ 428,187 $ 476,312
Net(Expense)/Revenues
GovernmentalActivities $ (131,002) $ (1D,178) $ (148,936) $ (171,141) $ (219,312) $ (219,468) $ (249,587) $ (271,313) $ (223,852) $ (196,123)
Business-Type Activities 33,804 57,936 19,202 12,272 18,173 (1,791) 4,087 4,595 6,065 18,033
TotalPrimary Government net expense $ (97,198) $ (69,242) $ (129,734) $ (158,869) $ (201,139) $ (221,259) $ (245,500) $ (266,718) $ (217,787) $ (178,090)
2012-13 2013-14 2014-15 2015-16 2016-17 2017-2018 2018-19 2019-20 2020-21 2021-22
General Revenue and Other Chan9es in Net Position
Governmental Activities
Property taxes $ 143,182 $ 152,256 $ 155,374 $ 163,367 $ 173,153 $ 180,051 $ 189,689 $ 198,927 $ 208,371 $ 216,107
Other taxes 23,940 22,088 22,984 21,953 23,072 25,708 27,224 27,878 34,440 41,804
Interest and investmentincome 733 599 3,174 4,401 3,289 3,171 12,952 12,849 696 (16,312)
Unrestricted grants 3,537 1,7U 13,3U 3,140 63 2,740 2,115 3,845 41,157 9,001
Otherrevenues 4 - - - 5 2 35,445 1,144 4,813 1,424
Transfers (166) (790) (2,676) (768) (2,292) 2,267 (625) (493) 282 (213)
Special item (2,800)
Total Governmental Activities 171,230 173,080 192,183 192,093 197,290 213,939 266,800 244,150 289,759 251,811
Business-Type Activities
Property taxes 4,145 4,402 4,782 4,782 3,814 3,858 3,912 4,043 4,387 4,380
Othertaxes 29 32 - - - - - - - -
Interest and investment income 385 595 659 847 630 1,272 1,590 2,169 405 (1,333)
Otherrevenues 160 40 183 268 338 - 574 2,889 76 1,148
Transfers 166 790 2,676 768 2,292 (2,267) 625 493 (282) 213
Total Business-Type Activities 4,885 5,859 8,300 6,665 7,074 2,863 6,701 9,594 4,586 4,408
Total Primary Government $ 176,ll5 $ 178,939 $ 200,483 $ 198,758 $ 204,364 $ 216,802 $ U3,501 $ 253,744 $ 294,345 $ 256,219
Change in Net Position
GovernmentalActivities $ 40,228 $ 45,902 $ 43,247 $ 20,952 $ (22,022) $ (5,529) $ 17,213 $ (27,163) $ 65,907 $ 55,688
Business-Type Activities 38,689 63,795 27,502 18,937 25,247 1,072 10,788 14,189 10,651 22,441
TotalPrimary 6overnment $ 78,917 $ 109,697 $ 70,749 $ 39,889 $ 3,225 $ (4,457) $ 28,001 $ (12,974) $ 76,558 $ 78,129
Source:Statement of Activities
156
County of San Luis Obispo
Fund Balances,Governmental Funds
Last Ten Fiscal Years
(In Thousands)
(UNAUDITED)
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
General Fund
Nonspendable $ 3,092 $ 779 $ 5,089 $ 3,454 $ 3,535 $ 18,511 $ 19,222 $ 18,734 $ 9,861 $ 6,655
Restricted 4,005 3,214 2,945 2,872 2,649 10,083 12,276 10,915 24,212 26,060
Committed 96,365 116,940 138,140 168,619 164,492 152,501 169,846 175,455 194,669 214,112
Assig ned 104,237 118,248 125,112 122,925 126,596 107,145 127,007 119,426 173,558 190,037
Unassigned - - - - - - - - - -
Total General Fund $ 207,699 $ 239,181 $ 271,286 $ 297,870 $ 297,272 $ 288,240 $ 328,351 $ 324,530 $ 402,300 $ 436,864
All Other Governmental Funds
Nonspendable $ 596 $ - $ 920 $ 3,776 $ 3 $ 24 $ 36 $ 4 $ 6 $ 9
Restricted 18,311 20,164 20,563 21,317 24,192 24,750 33,496 57,057 58,106 54,520
Committed 65,903 74,240 78,508 61,926 94,904 62,307 66,616 67,593 88,636 96,623
Assigned - - - - - - - - - -
Unassigned - - (486) - - (3,038) - - - -
Total All Other Governmental Funds $ 84,810 $ 94,404 $ 99,505 $ 87,019 $ 119,099 $ 84,043 $ 100,148 $ 124,654 $ 146,748 $ 151,152
Source:Balance Sheet-Governmental Funds
157
County of San Luis Obispo
Changes in Fund Balances,Governmental Funds
Last Ten Fiscal Years
(In Thousands)
(UNAUDITED)
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Revenues
Taxes $171,771 $177,765 $178,740 $185,764 $196,822 $203,583 $ 217,106 $223,041 $ 243,406 $ 261,163
Licenses,permits,and
franchises 9,247 10,694 10,452 10,539 11,446 11,140 12,133 11,477 12,522 12,597
Fines,forfeitures,and
penalties 6,654 5,257 5,686 5,173 4,339 5,977 4,396 3,916 4,352 4,304
Revenues from use of
money and property 1,475 1,373 3,864 4,939 3,984 3,779 12,268 12,247 1,084 (14,773)
Aid from governmental
agencies 209,234 229,283 261,351 256,490 254,350 262,660 271,961 277,267 348,093 350,382
Chargesfor arrentservices 41,690 50,071 43,530 46,308 49,460 49,793 47,957 46,712 51,694 49,498
Otherrevenues 11,342 6,235 9,110 11,504 8,481 6,869 25,278 12,396 13,104 12,734
Totalrevenues 451,413 480,678 512,733 520,717 528,882 543,801 591,099 587,056 674,255 675,905
Expenditures
Current:
Generalgovernment 44,374 44,3ll 51,207 54,461 54,918 60,445 54,991 54,078 64,686 63,569
Public protection 143,832 148,155 157,783 156,096 164,839 ll5,175 185,033 205,162 199,299 212,388
Public ways and facilities 34,178 28,528 29,903 41,044 29,077 42,254 35,267 43,865 37,099 39,124
Health and sanitation 70,021 74,586 75,116 81,591 88,623 99,885 103,512 108,158 117,359 157,490
Public assistance 98,059 99,442 107,104 111,227 113,392 117,066 121,327 131,154 129,141 133,275
Education 9,901 12,205 11,388 10,534 11,560 11,640 12,191 12,769 13,368 15,712
Recreational and cultural
services 7,538 7,993 10,104 9,888 9,963 10,358 10,574 11,637 10,976 12,420
Debt service:
Principal paymentr 4,065 5,412 6,070 6,788 7,576 50,989 5,093 10,561 5,289 9,137
Interest and fiscal charges 5,863 5,419 5,209 4,687 4,639 11,666 1,204 6,416 7,030 7,895
Debtissuance costr z6g _ _ _ _ _ _ _ _ _
Capitaloutlay 3,692 11,312 20,019 30,465 11,554 11,828 6,374 7,645 13,795 17,376
Totalexpenditures 421,792 437,369 473,903 506,781 496,141 591,306 535,566 591,445 598,042 668,386
Excess(defciency)of
revenues over(under)
expenditures 29,621 43,309 38,830 13,936 32,741 (47,505) 55,533 (4,389) 76,213 7,519
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Other Financing Sources
Refunding certificates of
participation issued 14,427 - - - - - - - - -
Premium on refunding
certifcates of participation
issued 1,418 - - - - - - - - -
Proceeds oflong-term debt - - - - - - - 20,384 2,841 -
Premium on lease revenue bonds
issued - - - - - - - 4,023 - -
Payment to refunded escrow
agent (16,400) - - - - - - - - -
Discount on certifcates of
participation issued - - - - - - - - - -
Leases* - - - - - - - - - 30,950
Transfersin 48,113 26,502 33,299 35,803 57,668 54,782 31,633 36,803 37,384 45,602
Transfers out (47,021) (25,935) (34,924) (35,641) (58,927) (51,365) (30,950) (36,136) (36,094) (45,103)
Total other financing
sources and uses 537 567 (1,625) 162 (1,259) 3,417 683 25,074 4,131 31,449
SpecialItem - (2,800) - - - - - - -
Net change in fund balances $ 30,158 $ 41,076 $ 37,205 $ 14,098 $ 31,482 $ (44,088) $ 56,216 $ 20,685 $ 80,344 $ 38,968
Debt Service as a percentage of 2.48% 2.61% 2.57% 2.54% 2.62% 11.25% 1.23% 3.05% 2.20% 2.85%
non-capital expenditures
*GASB Statement No.87 was implemented in FY 2021-22
Source:Statement of Revenues,Expenditures,and Changes in Fund Balances-Governmental Funds
158
County of San Luis Obispo
Assessed Valuation
Last Ten Fiscal Years
(In Thousands)
(UNAUDITED)
Percentage
Change
Fiscal Year Net Assessed from Prior
Ended, Secured Unsecured Exemptions Valuations Year Tax Rate
2013 41,667,316 1,138,202 (1,009,234) 41,796,284 1.1% 1.0040
2014 42,900,845 1,195,631 (1,036,531) 43,059,945 3.0% 1.0040
2015 45,288,599 1,230,775 (1,093,212) 45,426,162 5.5% 1.0040
2016 48,037,099 1,257,845 (1,122,568) 48,172,375 6.0% 1.0037
2017 50,458,742 1,362,539 (1,173,683) 50,647,598 5.1% 1.0040
2018 53,278,739 1,386,183 (1,248,961) 53,415,961 5.5% 1.0040
2019 56,147,148 1,420,625 (1,305,110) 56,262,663 5.3% 1.0040
2020 58,382,427 2,345,033 (1,277,412) 59,450,048 5.7% 1.0040
2021 61,279,618 2,349,231 (1,428,237) 62,200,611 4.6% 1.0040
2022 63,459,055 2,281,455 (1,487,547) 64,252,963 3.3% 1.0040
Total Net Assessed Value Change from Prior Year
7.0%
s.o�io
5.0%
� 4.0%
� 3.0%
a --�Percent Change over Prior Year
2.0%
1.0%
0.0%
C+') � � (O 1� a0 � O N
N N N
O O O O O O O O O O
N N N N N N N N N N
Fiscal Year
Discussion: Due to Article XIII-A, added to the California Constitution by Proposition 13 in 1978,the County does not track
the estimated actual value of all County properties. Proposition 13 fixed the base for valuation of real property
at the full cash value which appeared on the Assessor's 1975-76 assessment roll. Thereafter,full cash value
can be increased to reflect: (1) annual inflation up to two percent; (2)current market value at time of
ownership change; and (3) market value for new construction. As a result,similar properties can have
substantially different assessed values based on the date of purchase.
Source: County Assessed Values, Exemptions and Growth % Book
159
County of San Luis Obispo
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(per$300 of assessed values)
(UNAUDITED)
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
County Direct Rates
General 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
State Water Projed 0.00400 0.00400 0.00400 0.00374 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400
Total Dired Rate 1.00400 1.00400 1.00400 1.00374 1.00400 1.00400 1.00400 1.00400 1.00400 1.00400
Cities,Schools,and Special
Districts Combined Rates
Arroyo Grande 0.0576 0.0580 0.0569 0.0756 0.0680 0.1085 0.1051 0.0965 0.0827 0.0840
Atascadero 0.0452 0.0452 0.0590 0.1373 0.1373 0.1373 0.1373 0.1373 0.1373 0.1373
GroverBeach 0.0495 0.0499 0.0509 0.0940 0.1023 0.1599 0.1901 0.1815 0.1677 0.1690
Morro Bay 0.0510 0.0510 0.0510 0.0688 0.0683 0.0683 0.0683 0.0683 0.0614 0.0582
Paso Robles 0.0815 0.0815 0.0782 0.0955 0.0828 0.0828 0.1222 0.1222 0.1160 0.1198
Pismo Beach 0.0495 0.0499 0.0509 0.0700 0.0680 0.1085 0.0965 0.0965 0.0827 0.0840
San Luis Obispo - - - 0.0683 0.0683 0.0683 0.0683 0.0683 0.0583 0.0583
Note:Rates shown represent the most common rates encountered for the tax rate areas within these cities.
Source:County Property Tax Rate Book
160
County of San Luis Obispo
Principal Property Taxpayers
Current Year and Ten Years Ago
(In Thousands)
(UNAUDITED)
Fiscal Year 2021-22 Fiscal Year 2012-13
Percentage Percentage
of Total of Total
County County
Assessed Assessed
Taxpayer Industry Assessed Value Rank Value Assessed Value Rank Value
Pacific Gas&Electric Co. Utility $ 1,482,778 1 2.31% $ 2,641,186 1 6.32%
High Plans Ranch II LLC Solar Ranch 762,251 2 1.19% - - -
Southern California Gas Co. Utility 154,628 3 0.24% 63,866 7 0.15%
Jamestown Premier Commercial 153,163 4 0.24% - - -
Phillips 66 Company Oil Refinery 139,218 5 0.22% - - -
E&J Gallo Winery/Vineyards Winery 98,162 6 0.15% - - -
CAP VIII- Mustang Village LLC Apartments 98,068 7 0.15% 76,800 5 0.18%
Firestone Walker LLC Brewery 91,595 8 0.14% - - -
Treasury Wine Estates Winery 89,935 9 0.14% - - -
Sierra Vista Hospital Hospital 84,246 10 0.13% 55,004 10 0.13%
TOSCO Corp Petroleum&Gas - - 144,966 2 0.35%
Plains Exploration&Prod Co Petroleum&Gas - - 81,401 4 0.19%
Beringer Wine Estates Company Winery - - 89,873 3 0.22%
Pacific Bell Telephone Co Communications - - 71,897 6 0.17%
Martin Hotel Management Hotel - - 62,521 8 0.15%
Pasquini Charles Jr Tre Etal Private - - 55,665 9 0.13%
Total $ 3,154,044 4.91% $ 3,343,179 8.00°/o
Total County Assessed Value $ 64,252,963 $ 41,796,284
Sources:
County Properry Tax System
2012-13 San Luis Obispo County Annual Comprehensive Financial Report
161
County of San Luis Obispo
Property Tax Levies and Collections
Last Ten Fiscal Years
(In Thousands)
(UNAUDITED)
Collected within the
Fiscal Year of the Levy
Collections in
Fiscal Year Total Levy for Collected % of Original Subsequent Delinquent % of Levy
Ended June 30, the Fiscal Year Amount Levy Years* Amount Delinquent
2013 405,225 399,807 98.66% N/A 5,418 1.34%
2014 421,140 416,450 98.89% N/A 4,690 1.11%
2015 447,088 442,330 98.94% N/A 4,758 1.06%
2016 470,629 466,465 99.12% N/A 4,164 0.88%
2017 495,277 490,890 99.11% N/A 4,387 0.89%
2018 522,528 517,777 99.09% N/A 4,751 0.91%
2019 549,869 544,994 99.11% N/A 4,874 0.89%
2020 573,449 564,422 98.43% N/A 9,027 1.57%
2021 599,508 592,847 98.89% N/A 6,660 1.11%
2022 619,518 614,110 99.13% N/A 5,408 0.87%
Note: Amounts do not include tax collections for bonds or special assessments
Source: County Property Tax Booklet
*Collections in subsequent years are not available from the County's current properry tax system.
162
County of San Luis Obispo
Special Assessment Billings and Collections
(In Thousands)
(UNAUDITED)
Special Special
Year ended Assessment Assessment
June 30, Billings Collected
2013 3,494 3,545
2014 3,497 3,630
2015 3,489 3,598
2016 3,496 3,633
2017 3,490 3,577
2018 5,063 5,196
2019 5,058 5,065
2020 5,063 5,106
2021 5,042 5,105
2022 5,061 5,163
Note: The billings and collections shown are for the Special Assessment Bonds related to the Los Osos
project for which the County has established redemption funds for the purpose of facilitating bond
payment in the case of delinquent accounts.
Source: County Property Tax System
163
County of San Luis Obispo
Ratios of Total Debt Outstanding
Last Ten Fiscal Years
(In Thousands)
(UNAUDITED)
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Governmental Activities
Certificates of Participation $ 25,662 $ 24,640 $ 23,600 $ 22,527 $ 21,411 $ 26,135 $ 24,808 $ 18,004 $ 19,619 $ 18,290
Less deferred amountr:
Forissuance discounts: (99) (95) (91) (87) (83) (79) (75) - - -
Add deferred amounts:
Forissuance premiums: 1,329 1,240 1,152 1,063 975 886 797 708 619 530
State notes - - - - - 2,056 1,901 1,744 1,586 1,426
Pension Obliqation Bonds 115,624 111,234 146,219 145,291 143,890 99,407 96,903 93,733 89,825 85,112
Lease revenue bonds - - - - - - - 20,380 19,970 19,380
Add deferred amounts:
For issuance premiums: - - - - - - - 4,023 3,837 3,652
Assessment Bonds from direct borrowinqs - - - - - - - 436 391 344
Leases* 92,248
Totalbonds and notes payable 142,516 137,019 170,880 168,794 166,193 128,405 124,334 139,028 135,847 220,982
Business-Type Activities
Certificates of Participation 17,920 18,257 17,745 17,194 16,470 15,678 14,811 13,908 12,966 14,668
Add deferred amounts:
Forissuance premiums: 492 459 426 393 361 328 295 262 229 196
State Note 34,399 46,529 72,774 86,611 85,674 87,667 84,409 81,079 88,385 84,528
Other Notes - - - - - - - - - 196
Revenue Bonds 190,389 187,170 183,813 177,198 173,535 168,410 164,126 159,841 155,330 150,585
Add deferred amounts:
Forissuance premiums: 5,945 5,732 5,519 10,058 9,623 8,926 8,502 8,077 7,653 7,230
Unamortized outflow on Bond Refinancing - - - (4,171) (3,990) (3,808) - - - -
General Obliqation Bonds 9,890 9,530 9,155 8,760 8,350 7,925 7,485 7,025 6,540 6,030
Add deferred amounts:
Forissuance premiums: 1,015 959 902 846 790 733 677 620 564 508
Bond Anticipation Notes - - - - - - - - - -
Assessment Bonds 39,527 76,438 79,829 79,396 78,089 76,746 75,358 73,943 72,483 70,978
Leases* 250
Totalbonds and notes payable 299,577 345,074 370,163 376,285 368,902 362,605 355,663 344,755 344,150 335,169
Total Outstanding Debt $ 942,093 $ 482,093 $ 541,043 $ 545,079 $ 535,095 $ 491,010 $ 479,997 $ 483,783 $ 479,997 $ 556,151
Percentage of Personal Income 3.52% 3J6% 3.86% 3J6% 3.58% 3.13% 2.92% 2.80% 2.54% N/A
Percentage of Assessed Value of Taxable Property' 1.06% 1.12% 1.19% 1.13% 1.06% 0.92% 0.85% 0.81% 0.77% 0.87%
Net outstanding debt Per Capita $ 1,62418 $ 1,770.08 $ 1,972.50 $ 1,960.88 $ 1,916.46 $ 1,75331 $ 1,713.66 $ 1,708.81 $ 1,700.62 $ 1,964.09
Note:See the Demoqraphic Statistics Schedule for detailed information on personal income and population.
'Due[o Artide XIII-A,added[o[he California Constitution by Proposition 13 in 1978,the County does not track the estimated ac[ual value of all County proper[ies;[herefore,the ratio of ne[outstanding debt to the estimated actual value
of[axable property is unable to be determined;however,the ratio of net outstanding debt to the assessed value of taxable property is determinable and presented in the table.
*GASB Statement 87 was implemented in FY 2021-22. Prior year leases were not recoqnized as capital leases pre-GASB 87.
Source:Notes to the Financial Statements,Note 10
164
County of San Luis Obispo
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(In Thousands)
(UNAUDITED)
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Certificates of Participation $ 14,427 $ 13,675 $ 12,915 $ 12,137 $ 11,326 $ 10,482 $ 9,606 $ 8,693 $ 7,747 $ 6,757
Less deferred amounts:
Forissuance discounts: (99) (95) (91) (87) (83) (79) (75) - - -
Add deferred amounts:
Forissuance premiums: 1,330 1,240 1,152 1,063 975 886 797 708 619 530
Lease Revenue Bonds - - - - - - - 20,380 19,970 19,970
Less deferred amounts:
For issuance premiums: - - - - - - - 4,023 3,837 3,652
General Obligation Bonds 9,890 9,530 9,155 8,760 8,350 7,925 7,485 7,025 6,540 6,030
Add deferred amounts:
For issuance premiums: 1,015 959 902 846 790 733 677 620 564 508
State Notes - - - - - 2,056 1,901 1,744 1,586 1,426
Other Notes - - - - - - - - - 196
Assessment Bonds 39,527 76,438 79,829 79,396 78,089 76,746 75,358 73,943 72,483 70,978
Leases* - - - - - - - - - 92,498
Less resources restrided for
principalrepayment (2,684) (2,683) (2,683) (2,688) (2,692) (2,712) (8,061) (30,167) (23,110) (17,088)
Net Total General Obligation Debt $ 63,406 $ 99,064 $ 101,179 $ 99,427 $ 96,755 $ 96,037 $ 87,688 $ 86,969 $ 90,236 $ 185,457
Percentage of Personal Income 0.51% 0.77% 0.72% 0.69% 0.65% 0.61% 0.53% 0.50% 0.48% N/A
Percentage of Assessed Value of
Taxable Property' 0.15% 0.23% 0.22% 0.21% 0.19% 0.18% 0.16% 0.15% 0.15% 0.29%
Net outstanding debt Per Capita $ 232.96 $ 363.73 $ 368.87 $ 357.68 $ 346.53 $ 342.93 $ 313.06 $ 307.19 $ 319.70 $ 654.96
Note:See the Demographic Statistics Schedule for detailed information on personal income and population.
'Due to Article XIII-A,added to the California Constitution by Proposition 13 in 1978,the County does not track the estimated actual value of all County properties;therefore,
the ratio of net outstanding debt to the estimated adual value of taxable properry is unable to be determined;however,the ratio of net outstanding debt to the assessed value of
taxable property is determinable and presented in the table.
*GASB Statement 87 was implemented in FY 2021-22.
Amount was restated
Source: Notes to the Financial Statements,Note 10
165
County of San Luis Obispo
Legal Debt Margin Information
Last Ten Fiscal Years
(In Thousands)
(UNAUDITED)
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Assessed Value of ProperN(a) $ 41,796,283 $ 43,059,945 $ 45,426,163 $ 48,172,375 $ 50,647,598 $ 53,415,961 $ 56,262,663 $ 59,450,048 $ 62,200,611 $ 64,252,963
Debt Limit,115%of Assessed Value 522p54 538,249 567,8U 602,155 633,095 667,700 703,283 743,126 777,508 803,162
Amount ofDebtApplicable to Limit
General Obliqation Bonds(b) 10,905 10,489 10,057 9,606 9,140 8,658 7,485 7,025 6,540 6,030
Less:Resources Restricted to Paying
Principal
Total DebtApplicable 10,905 10,489 10,057 9,606 9,140 8,658 7,485 7,025 6,540 6,030
Leqal Debt Marqin $ 511,549 $ 527,760 $ 557,770 $ 592,549 $ 623,955 $ 659,042 $ 695,798 $ 736,101 $ 770,968 $ 797,132
Total Debt Applicable as a Percentage
of the Debt Limit 2.09% 1.95% 1.77% 1.60% 1.44% 1.30% 1.06% 0.95% 0.84% 0.75%
Source:
(a)CounN Assessed Values,Exemptions and Growth%Book
(b)Notes to the Financial Statements,Note 10
166
County of San Luis Obispo
Demographic and Economic Statistics
Last Ten Fiscal Years
(UNAUDITED)
PersonalIncome Per Unemployment
Calendar Population (in thousands) Capita Income Median Age School Enrollment Rate
Year (l,a) (l,a) (l,a) (4,c) (3,b,d) (2,e)
2013 272,177 12,547,278 45,388 39.50 42,600 6.4
2014 272,357 12,823,005 45,947 39.50 42,911 5.3
2015 274,293 14,034,209 49,873 39.30 41,853 4.4
2016 277,977 14,552,207 51,442 39.00 43,117 4.5
2017 279,210 14,937,322 53,006 38.80 43,112 3.6
2018 280,048 15,700,229 55,580 39.60 42,713 3.2
2019 280,101 16,465,164 58,108 39.60 42,673 2.9
2020 283,111 17,270,828 61,004 40.00 42,556 11.5
2021 282,249 18,863,123 66,617 39.50 40,403 5.9
2022 283,159 N/A N/A 40.20 39,857 2.6
Sources:
1. Bureau of Economic Analysis
2. State of California Employment Development Department
3. California Department of Education&California Community Colleges Chancellor's Office
4. U.S.Census Bureau
Notes:
N/A= not available
a. Data for prior calendar years
b. Data includes kindergarten through grade 12 and Cuesta College
c. Calendar year 2013-2016 figures are projections based on the American Community Survey 5-Year Estimates
d. Data for school year ending in the stated calendar year
e. Data as of June 30,2022
167
County of San Luis Obispo
Principal Employers
Current Year and Ten Years Ago
(UNAUDITED)
2022 2013
Number of Percentage of Total Number of Percentage of Total
Employer Employees Rank County Employment Employees Rank County Employment
County of San Luis Obispo* 2,847 1 2.04% 2,800 1 1.88%
Atascadero State Hospital 2,300 2 1.67% 2,300 3 1.55%
California Men's Colony 2,000 3 1.45% 2,000 4 1.35%
Cal Poly State University,SLO 1,912 4 139% 2,573 2 1.73%
Pacific Gas and Electric Company 1,700 5 1.23% 1,700 5 1.14%
Tenet Healthcare 1,312 6 0.95% 1,200 6 0.81%
Lucia Mar Unified School District 1,070 7 0.78% 1,000 7 0.67%
Community Action Partnership of San Luis Obispo County 942 8 0.68% - - -
Paso Robles Public Schools 935 9 0.68% 935 8 0.63%
Cuesta College 854 10 0.62% - - -
San Luis Coastal Unified School District - - - 902 10 0.61%
Cal Poly Corporation - - - 906 9 0.61%
Total Employment Labor Force 137,800 148,600
Sources:
Pacific Coast Business Times
State of California Employment Development Department
2012-13 San Luis Obispo County Annual Comprehensive Financial Report
2021-22 County Budget Report*
168
County of San Luis Obispo
Full Time Equivalent County Government Employees by Function
Last Ten Fiscal Years
(UNAUDITED)
Function/Program 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18* 2018-19* 2019-20* 2020-21* 2021-22*
GeneralGovernment 438.25 430.75 436.75 440.50 430.75 437.50 441.00 455.25 458.00 456.25
Public Protection 812.00 817.25 832.25 848.25 867.00 909.50 912.00 899.75 904.25 907.50
Public Ways and Facilities 193.75 188.75 190.75 207.75 234.75 237.75 246.75 247.75 248.75 249.75
Health and Sanitation 445.25 464.00 485.25 505.50 556.00 536.50 530.00 531.00 530.00 566.00
Public Assistance 428.00 478.00 500.75 524.00 524.00 523.00 522.00 523.50 526.75 527.25
Education 75.50 75.50 75.50 77.50 78.00 77.75 78.00 78.25 78.50 78.50
Recreation and Cultural Services 52.00 55.00 59.00 60.00 61.00 61.00 61.00 61.00 61.00 62.00
Total 2,444.75 2,509.25 2,580.25 2,663.50 2,751.50 2,783.00 2,790.75 2,796.50 2,807.25 2,847.25
Source: County Budget Report
Notes:
2013-2017 Position allocation figures were calculated at the time of budget preparation for the following year.
*Position allocation figures are calculated based on the adopted budgets.
Figures include limited-term but do not include part-time or contract positions.
169
County of San Luis Obispo
Operating Indicators by Function
Last Ten Fiscal Years
(UNAUDITED)
Function/Department 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Recreation and Cultural Services
Parks
Day Use Passes 56,601 42,821 57,564 n/a n/a n/a n/a n/a n/a n/a
Daily Passes* n/a 246,727 239,140 189,232 230,915 257,220 60,902 59,194 62,559 41,130
AnnualPasses 2,406 2,998 3,137 n/a n/a n/a n/a n/a n/a n/a
Annual�ehide Passes* n/a 8,744 12,584 9,614 6,504 8,066 3,974 1,823 1,716 1,869
Daily BoatLaunches* 14,809 26,110 23,706 16,001 16,312 24,340 9,664 11,210 11,810 6,242
AnnualBoat Passes* S51 1,412 1,245 480 1,383 1,353 1,629 1,288 764 403
Public Protection
Planning and Building
Total Permits Issued 2,070 2,622 3,139 3,355 3,927 3,542 3,256 3,299 3,624 4,032
NumberofNewAffordab/eHousing 44 13 151 99 65 133 131 n/a n/a n/a
Sheriff
Jailbookings 13,273 12,583 11,375 11,018 11,774 11,324 10,246 8,144 6,235 6,367
Averagedailypopu/ation 717 780 679 603 632 621 636 552 448 462
Health and Sanitation
Mental Health
Day T�eatment Days provided to youth
in out-of-countygroup home facilities** 1,885 1,764 1,613 1,381 604 n/a n/a n/a n/a n/a
Public Health
Percentage ofthe State allocated
case%ad enrol%d in the women,
Infants&Children(WIC)Program 99 95 91 86 76 72 68 n/a n/a n/a
Percentage of live born infants whose
mothe�s�eceived p�enatal care in the
first trimester *** 80 79 79 80 78 78 84 86 84 82
Public Assistance
Social Services
Percentage of child abuse/negled
�efe�rals where a response is required
within i0 days that were timely 98 96 98 97 n/a n/a n/a n/a n/a n/a
Percentage of child abuse/neglect
referrals where a response is required
within 10 days and where contact was
made within the required period. n/a n/a n/a n/a 91 95 95 94 92 92
Education
Library
Annual number of items circulated per
capita*** 10.1 9.8 9.6 10.5 10.3 11.6 12.1 12.1 7.6 9.7
Annua/Expenditure pe�capita fo�total
Library budget*** $ 34.35 $ 35.50 $ 36.13 $ 36.27 $ 38.10 $ 40.36 $ 40.57 $ 44.47 $ 46.78 $ 47.84
Public Ways and Facilities
Roads
Pavement Condition Rating fo�all
County roads(70='good')*** 60 61 61 65 66 65 65 60 59 59
Airport
Airport
TakeoffsandLandings 71,428 66,696 71,001 71,181 71,001 77,917 82,110 68,067 75,082 82,471
PassengerEnplanements 132,315 147,105 149,558 155,744 180,141 226,588 259,481 215,900 150,065 247,522
*In FY 2018-19,the data tracking system was updated to more accurately collect the data. Data prior to FY 2018-19 is not comparable.
**Performance measure deleted in FY 2017-18 due to Continuum of Care Reform effective 1/1/2017.
***FY 2020-21 performance measure restated
Source:County Budget Performance Indicators
17�
County of San Luis Obispo
Capital Asset Statistics by Function
Last Ten Fiscal Years
(UNAUDITED)
Function/Program 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
Recreation and Cultural Services
County golf courses 3 3 3 3 3 3 3 3 3 3
Park acreage 13,424 13,583 13,583 13,583 13,583 13,583 13,583 13,841 13,841 13,841
Public Protection
Correction facility capacities(a) 717 797 797 797 909 909 909 909 909 909
Public Ways and Facilities
Miles of county roads 1,335 1,336 1,336 1,338 1,338 1,339 1,339 1,349 1,349 1,349
Airport
Number of runways 2 2 2 2 2 2 2 2 2 2
Notes:
The majoriry of County assets are in buildings and equipment,which are under the functional area of General Government
(a)Amount is all holdings actual totals,including Main Jail,Women's Jail,West Housing,West Dorm,Honor Farm,and Weekender Barracks
Source:Counry departments'manaqement
171
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