Annual Comprehensive Financial Report, 2023-24

Annual Comprehensive Financial Report County of San Luis Obispo, California Fiscal Year Ended June 30, 2024 Prepared under the direction of James W. Hamilton, CPA Auditor -Controller  Treasurer -Tax Collector Cover photo from North Point Beach in Morro Bay Hannah Berna, Auditor-Controller-Treasurer-Tax Collector’s Office COUNTY OF SAN LUIS OBISPO ANNUAL COMPREHENSIVE FINANCIAL REPORT JUNE 30, 2024 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal .........................................................................................................1 Certificate of Achievement for Excellence in Financial Reporting ........................................... 9 List of Elected and Appointed Officials .............................................................................. 10 Organizational Chart........................................................................................................ 11 FINANCIAL SECTION Independent Auditors’ Report .......................................................................................... 12 Management’s Discussion and Analysis ............................................................................. 16 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position............................................................................................. 36 Statement of Activities ................................................................................................. 37 Fund Financial Statements: Governmental Funds: Balance Sheet ............................................................................................................. 39 Reconciliation of Governmental Funds Balance Sheet to the Government- Wide Statement of Net Position – Governmental Activities ............................................ 40 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds.................................................................................................. 41 Reconciliation of Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities – Governmental Activities ............................................................................. 42 Proprietary Funds: Statement of Fund Net Position .................................................................................... 43 Statement of Revenues, Expenses, and Changes in Fund Net Position ............................ 44 Statement of Cash Flows .............................................................................................. 45 Fiduciary Funds: Statement of Fiduciary Net Position .............................................................................. 46 Statement of Changes in Fiduciary Net Position ............................................................. 47 Notes to Basic Financial Statements .............................................................................. 48 The accompanying notes are an integral part of these financial statements. FINANCIAL SECTION (CONTINUED) Required Supplementary Information Description.................................................................................................................. 96 Schedule of the County’s Proportionate Share of the San Luis Obispo County Pension Plan’s Net Pension Liability ............................................................................. 97 Schedule of the County’s Contributions to the San Luis Obispo County Pension Plan ........ 98 Other Post-Employment Benefits (OPEB) Plan Schedule of Changes in the County’s Net OPEB Liability and Related Ratios ............................................................ 99 Other Post-Employment Benefits (OPEB) Plan Schedule of Actuarially Determined Plan Contributions and Related Ratios ......................................................101 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual Comparison - General Fund ..............................................................102 Notes to Required Supplementary Information .............................................................104 Other Supplementary Information: Combining and Individual Fund Statements and Schedules: Nonmajor Governmental Funds: Nonmajor Governmental Fund Descriptions.......................................................... 105 Combining Balance Sheet .................................................................................... 107 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................................................................................... 111 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget to Actual Comparison: Capital Projects ................................................................................................... 115 Homeless and Affordable Housing ........................................................................ 116 Emergency Medical Services................................................................................ 117 Driving Under the Influence Programs .................................................................. 118 Fish and Game ................................................................................................... 119 Road Impact Fees ............................................................................................... 120 Library ............................................................................................................... 121 Parks ................................................................................................................. 122 Public Facilities Fees ........................................................................................... 123 Roads ................................................................................................................ 124 Solid Waste Management.................................................................................... 125 Wildlife Grazing .................................................................................................. 126 Flood Control Districts......................................................................................... 127 Lighting Control Districts ..................................................................................... 128 County Service Area Districts............................................................................... 129 Public Facilities Corporation................................................................................. 130 Pension Obligation Bonds .................................................................................... 131 SLO County Financing Authority ........................................................................... 132 The accompanying notes are an integral part of these financial statements. FINANCIAL SECTION (CONTINUED) Nonmajor Enterprise Funds: Nonmajor Enterprise 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: Internal Service Fund Descriptions........................................................................137 Combining Statement of Net Position ....................................................................138 Combining Statement of Revenues, Expenses, and Changes in Net Position ............139 Combining Statement of Cash Flows .....................................................................140 Internal Service Funds – Insurance Funds: Combining Statement of Net Position.......................................................141 Combining Statement of Revenues, Expenses, and Changes in Net Position ..........................................................................................142 Combining Statement of Cash Flows ........................................................143 Fiduciary Funds: Fiduciary Fund Description ...................................................................................144 Custodial Funds: Combining Statement of Fiduciary Net Position ........................................145 Combining Statement of Changes in Fiduciary Net Position .......................146 Investment Trust Funds: Combining Statement of Fiduciary Net Position ........................................147 Combining Statement of Changes in Fiduciary Net Position .......................148 General Fund - Detail Budgetary Comparison Schedules: Detail Schedule of Expenditures – Budget to Actual Comparison.............................149 The accompanying notes are an integral part of these financial statements. STATISTICAL SECTION (UNAUDITED) Statistical Section Table of Contents.............................................................................. 157 Net Position by Component........................................................................................... 158 Changes in Net Position ................................................................................................ 159 Fund Balances, Governmental Funds............................................................................. 161 Changes in Fund Balances, Governmental Funds ............................................................ 162 Assessed Valuation....................................................................................................... 163 Direct and Overlapping Property Tax Rates .................................................................... 164 Principal Property Taxpayers ......................................................................................... 165 Property Tax Levies and Collections .............................................................................. 166 Special Assessment Billings and Collections.................................................................... 167 Ratios of Total Debt Outstanding .................................................................................. 168 Ratios of General Bonded Debt Outstanding .................................................................. 169 Legal Debt Margin Information ..................................................................................... 170 Demographic and Economic Statistics ............................................................................ 171 Principal Employers ......................................................................................................172 Full Time Equivalent County Government Employees by Function ................................... 173 Operating Indicators by Function .................................................................................. 174 Capital Asset Statistics by Function................................................................................ 175 The accompanying notes are an integral part of these financial statements. ________________________________________________________________ INTRODUCTORY SECTION ________________________________________________________________ COUNTY OF SAN LUIS OBISPO Office of James W. Hamilton, CPA Auditor-Controller  Treasurer-Tax Collector  Public Administrator Michael Stevens, Deputy Justin Cooley, Deputy December 9, 2024 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, 2024, 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, 2024, 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, 2024, 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 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. 1 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 278,469 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 recommended 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 units or increases in the budget from new revenue sources, reserves and/or contingencies require the 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 five, 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 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. 2 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 2024, was 4.0% which is lower than both the state rate of 5.3% and the national rate of 4.1%. During the same period last year, unemployment in the County was 3.6%. San Luis Obispo County gained 1,400 jobs over the past year and ranks as the 7th lowest unemployment rate in the state.  The State of California has a major presence in the County of San Luis Obispo with California Men’s Colony, Atascadero State Hospital, and the California Polytechnic State University, making the State one of the largest employers in the County. Wages: • Average income increased by 3.9% to $59,706 from 2022 to 2023 (most recent data) for the residents of the County of San Luis Obispo whereas average income for the state increased by 3.7% to $87,590 as reported by the Bureau of Labor Statistics. • As reported by the Bureau of Labor Statistics, the highest earning 2023 occupational groups in the area consisted of physicians, psychiatrists, dentists, chief executives, architectural and engineering managers, computer and information systems managers, lawyers, family medicine physicians, financial managers, and nurse practitioners. 3 Retail Sales and Agriculture: Both retail sales and agriculture continue to be integral part of the County’s economy.  Sales and use tax revenue within the unincorporated areas of the County was $16.4 million in FY 2023-24.  According to Visit SLO CAL, tourists spent $2.32 billion in the calendar year 2023. The leading sectors for tourism spending were lodging ($753 million), food service ($590 million), recreation ($239 million), and retail ($227 million).  Crop values for 2023 edged past $1.1 billion for the first time. The top three commodities by value were wine grapes, strawberries, and cattle and calves. Real Estate and Property Taxes:  The County’s median price for a single-family home increased from $865,000 in June 2023 to $890,000 in June 2024. This is a 2.9% increase from the prior year. The local real estate market remains competitive. While price growth has slowed down in recent years, home prices continue trending upwards.  Discretionary property tax receipts were $169.4 million in FY 2023-24, an increase of 4.9% over the prior year.  The total tax levy on secured property, which excludes unsecured property, direct charges, and school bonds, was $699.0 million for FY 2023-24, an increase of 5.7% from 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 decreased 5.9% to $3.0 million in FY 2023-24.  The property tax delinquency rate increased from 1.00%, in FY 2022-23, to 1.26% in FY 2023-24. 4 Tourism:  The scenic coastline, rolling vineyards, and abundance of outdoor activities continues to make San Luis Obispo County a tourist destination. Transient Occupancy Tax (TOT) collections in the unincorporated areas increased 0.2% in FY 2023-24 to $16.6 million.  Annual airline passenger travel at the San Luis Obispo County Airport increased by 14.7% during FY 2023-24, compared to FY 2022-23. In FY 2023-24, the airport introduced direct flights to Las Vegas.  The California Mid-State Fair in Paso Robles estimated attendance was 335,000 people in 2024. Long-Term Financial Planning:  The FY 2024-25 recommended budget authorized an $851.8 million governmental fund spending level, an increase over the $845.0 million adopted budget for FY 2023-24. 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 2024-25, the General Fund has $741.2 million appropriated to finance expenditures, including contingencies of $33.4 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, 2024, the General Reserve was $13.0 million. In addition to the General Reserve, reserves exist for building replacement ($55.1 million), automation projects ($23.1 million), and tax-loss mitigation purposes ($64.0 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, 2024, $35.6 million of the funds had been spent to date. County Defined Use Category Allocation Expenditures  Public Health $11.5 M $6.4 M  Housing and Homeless $5.5 M $5.2 M  Business, Childcare, Non-Profit Grants $9.0 M $6.4 M  Water, Sewer, and Broadband $13.0 M $3.4 M  Restoration of Government Services $16.0 M $14.2 M Total $55.0 M $35.6 M 5  Each year a five-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 2024-25 decreased 42% from the prior year and are approximately $6.4 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, and in November 2023, PG&E submitted a license application to extend the lifetime of the plant by up to 20 years. The future operation of the plant is pending review by the Nuclear Regulatory Commission, but PG&E previously received approval to keep the plant operational during that review. 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, 2023, approximately 68% of County employees fall under PEPRA. 6 Major Initiatives  Administrative Office: Executed a grant agreement totaling $4.0 million in American Rescue Plan Act Housing and Homeless funding to support the development of 39 new affordable housing units in the Orcutt Road Apartments (Maxine Lewis) project.  Administrative Office and Health Agency: The two departments implemented an Opioid Remediation Program Plan and funding allocations for the implementation of the Opioid Settlement Funds (OSF) program in San Luis Obispo County for the period of November 1, 2023, through June 30, 2026.  Health Agency: The Behavior Health division of the department successfully implemented initiatives related to the onset of CalAIM (Advancing and Innovating Medi-Cal) payment reform. This included the launch of a new electronic health record (SmartCare) on July 1, 2023, which is a semi-Statewide database with comparison data points with twenty-two other California Counties. In addition, by joining this endeavor, the County of San Luis Obispo will benefit from efficiencies with a group of counties working together with the State Department of Health Care Services for revenue maximization.  Social Services: The department implemented the CalSAWS system which replaced CalWIN. CalSAWS is the case management system that all 58 counties use for county eligibility staff that provides CalWORKs, CalFresh, Medi-Cal, Foster Care, Refugee Assistance, and General Assistance. Now, a participant’s information can be accessed throughout the State to better serve them.  Parks and Recreation: The Department of Parks and Recreation completed their 2024-30 Strategic Plan. The process included a complete review of department policies, documents, and procedures. This report gives an understanding of the department’s strengths and challenges, key findings and needs, as well as key elements needed to strategically move forward and guide priority next steps from 2024 to 2030.  Veteran Services: Increased veteran outreach by 192% through the continued efforts of their dedicated Veterans Services Representative/Outreach Coordinator. Tax abatements The County administers its Agricultural Preserve Program under the California Land Conservation Act of 1965, also known as the Williamson Act. The purpose of the Williamson Act is the long-term conservation of agricultural and open space lands for farming and ranching uses. Conservation of agricultural and open space land benefits the general public by discouraging premature conversion of land to urban land uses, thereby curtailing sprawl and promoting logical urban growth and provisions of urban services. The Agricultural Preserve Program both protects agriculture and retains open space for its scenic qualities and values as a wildlife habitat. Most directly, it contributes to the County’s agricultural economy and the availability of fresh, nutritious, varied and affordable food. 7 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, 2023. This was the thirty-eighth 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, 2023. 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, 2023. This is the eighth consecutive year that the County has earned this award which recognizes the County’s professionalism in preparing an accurate and timely report. 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, James W. Hamilton, CPA Matthew P. Pontes Auditor-Controller-Treasurer-Tax Collector County Administrative Officer 8 9 COUNTY OF SAN LUIS OBISPO LIST OF ELECTED AND APPOINTED OFFICIALS JUNE 30, 2024 Elected Officials Board of Supervisors Assessor ............................................................................................................................. Tom J. Bordonaro Jr. Auditor-Controller-Treasurer-Tax Collector-Public Administrator ............................................... James W. Hamilton County Clerk-Recorder ...................................................................................................................... Elaina Cano District Attorney .................................................................................................................................. Dan Dow Sheriff-Coroner .............................................................................................................................. Ian Parkinson Appointed Officials Agricultural Commissioner and Sealer of Weights and Measures ........................................... Martin Settevendemie Director of Airports ................................................................................................................. Courtney Johnson Behavioral Health Administrator ......................................................................................................... Star Graber Central Services Director ......................................................................................................... Christopher Lopez Chief Probation Officer ................................................................................................................... Robert Reyes Director of Child Support Services .................................................................................................. Natalie Walter County Administrative Officer ........................................................................................................... Matt Pontes County Counsel ................................................................................................................................ Rita L. Neal County Fire Chief ............................................................................................................................. John Owens Director of UC Cooperative Extension ............................................................................................ Shannon Kilsch Director of Groundwater Sustainability .......................................................................................... Blaine T. Reely Health Agency Director ............................................................................................................... Nicholas Drews Human Resources Director ............................................................................................................. Jamie Russell Director of Information Technology ................................................................................................... Daniel Milei Library Director .................................................................................................................. Christopher Barnickel Director of Parks and Recreation ............................................................................................... Tanya Richardson 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 11 ________________________________________________________________ FINANCIAL SECTION ________________________________________________________________ CliftonLarsonAllen LLP CLAconnect.com INDEPENDENT AUDITORS’ REPORT 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, 2024, 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, 2024, 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 First 5 San Luis Obispo and the San Luis Obispo County Pension Trust which represent the following percentages of assets, net position and revenues/additions of the opinion units shown below as of and for the year ended June 30, 2024: Opinion Unit Assets Net Position Revenues/Additions Discretely Presented 100% 100% 100% Component Unit Aggregate Remaining 57% 62% 11% Fund Information 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 First 5 San Luis Obispo and the San Luis Obispo County Pension Trust, is based solely on the reports 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 CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer. 12 The Honorable Board of Supervisors County of San Luis Obispo, California 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. Responsibilities of Management for the Financial 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’ Responsibilities for the Audit of the Financial 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 Government Auditing 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.  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. 13 The Honorable Board of Supervisors County of San Luis Obispo, California  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 Supplementary 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. Supplementary 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 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 Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 9, 2024, 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. CliftonLarsonAllen LLP Roseville, California December 9, 2024 15 ________________________________________________________________ MANAGEMENT’S DISCUSSION AND ANALYSIS ______________________________________________________________ COUNTY OF SAN LUIS OBISPO MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2024 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, 2024. 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 36. 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, 2024, by $1,580,478 (net position). The majority of this amount, $1,566,824 is the net investment in capital assets, while $177,598 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 $163,944 (Table A).  The County’s total net position increased by $54,843, with governmental activities increasing $41,000 and business-type activities increasing $13,843 (Table B).  The $43.9 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, 2024, the County’s governmental activities reported combined ending net position of $1,146,182 an increase of $41,000 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 a net program income gain of $1,573 before general revenues, contributions and transfers from other funds, an increase of $14,909 when compared to a net program income loss of $13,336 in the prior year. The majority of change in net program income relates to decreased depreciation expense being recorded in the Airport Fund over the prior year. In FY 2022-23, several capital assets belonging to the Airport Fund were either retired or had their useful lives reduced to align with Federal Aviation Administration guidelines. Due to these changes an additional $12.1 million in depreciation expense was recorded.  At the end of the fiscal year, the entire $486,484 fund balance of the General Fund was either nonspendable ($15,242), restricted ($22,096), committed ($248,486), or assigned ($200,660). 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 financial statements are 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 of Activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported 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 five, 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 County. The government-wide financial statements can be found on pages 36 to 38 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 Governmental Activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on 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 Governmental Activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. 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 Governmental Activities. The County maintains twenty-six individual governmental funds organized according to their type: general, special revenue, debt service, and capital projects. 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-four 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 and special revenue funds 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 39 to 42 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 uses enterprise funds to account for the airport, golf course, wastewater facility, flood control districts, waterworks districts and county service areas. Internal 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 the government-wide financial 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 the proprietary fund financial 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 43 to 45 of this report. Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not 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 the San 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. The San 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 46 to 47 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 48 to 95 of this report. 18 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) 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. The required supplementary information can be found on pages 96 to 104 of this report. Other Supplementary Information - In addition to the basic financial statements, accompanying notes, and required supplementary information, this report also presents certain other supplementary information 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 105 to 114 and 133 to 148 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 and nonmajor Special Revenue funds can be found on pages 115 to 132 of this report. Detail budgetary schedules demonstrating legal level of compliance with budgetary control for the General Fund are presented on pages 149 to 156 of this report. Statistical schedules provide financial, revenue capacity, debt capacity, demographic and economic, and operating trend information. These schedules are presented on pages 157 to 175 of this report. 19 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) 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 $1,580,478 as detailed in the table below: Table A Statement of Net Position June 30, 2024 (in thousands) June 30, 2024 June 30, 2023 2023-2024 Total Total Govern- Business- Primary Govern- Business- Primary Total mental Type Govern- mental Type Govern- % Activities Activities ment Activities Activities ment Change Assets: Current assets $ 858,941 $ 180,129 $ 1,039,070 $ 807,167 $ 181,010 $ 988,177 5.2% Other noncurrent assets 73,914 34,624 108,538 74,215 26,181 100,396 8.1% Capital assets 1,424,753 577,105 2,001,858 1,402,161 575,699 1,977,860 1.2% Total assets 2,357,608 791,858 3,149,466 2,283,543 782,890 3,066,433 2.7% Deferred Outflows of Resources 259,721 5,931 265,652 289,045 6,182 295,227 (10.0%) Liabilities: Current liabilities 184,459 31,142 215,601 175,037 31,689 206,726 4.3% Long-term liabilities 1,273,704 308,331 1,582,035 1,278,764 320,615 1,599,379 (1.1%) Total liabilities 1,458,163 339,473 1,797,636 1,453,801 352,304 1,806,105 (0.5%) Deferred Inflows of Resources 12,984 24,020 37,004 13,605 16,315 29,920 23.7% Net position: Net investment in capital assets 1,259,302 307,522 1,566,824 1,229,892 293,062 1,522,954 2.9% Restricted 177,598 - 177,598 173,086 - 173,086 2.6% Unrestricted (290,718) 126,774 (163,944) (297,796) 127,391 (170,405) (3.8%) Total net position $ 1,146,182 $ 434,296 $ 1,580,478 $ 1,105,182 $ 420,453 $ 1,525,635 3.6% Analysis of Net Position The County’s total net position increased by $54.8 million, or 3.6%. The total net position increase was a combination of increased total assets ($83.0 million), decreased deferred outflows of resources ($29.6 million), decreased total liabilities ($8.5 million), and increased deferred inflow of resources ($7.1 million). Causes for the changes in each of these categories are detailed below. Total assets increased by $83.0 million, a 2.7% increase. This includes a $16.6 million rise in cash and cash equivalents and a $27.7 million increase in receivables from other governments. The rise in receivables was primarily driven by Health Agency programs and road projects. For the Health Agency, the increase is attributed to state and federal reimbursements for behavioral health services, drug and alcohol programs, Mental Health Services Act initiatives, and psychiatric health facility services. For road projects, the amounts owed include Caltrans funding for various projects, such as seismic retrofitting of the Lopez Drive bridge over Lopez Lake and replacement of the El Camino Real bridge over Santa Margarita Creek. Total deferred outflows decreased $29.6 million, or 10.0%. The decrease is the combination of a decrease in deferred pension resources ($24.8 million) and a decrease in deferred OPEB resources ($4.6 million). Fluctuations in pension and OPEB deferred outflows occur due to changes in plan assumptions and in projected and actual earnings on plan investments from the prior year. The County's total liabilities decreased by $8.5 million, or 0.5%. This change primarily reflects a $23.2 million reduction in bonds and notes payable, offset by a $13.0 million increase in net pension liability. The decrease in bonds and notes payable is due to scheduled debt payments, with no new debt issued during the period. For more details on the County's debt, refer to Table G below and Note 10 in the Notes to the Basic Financial Statements. 20 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) Total deferred inflows of resources increased $7.1 million, or 23.7%. The increase was attributable to the San Luis Obispo County Regional Airport entering into new lease agreements to rent out airport space. 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 $1,566,824. 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 $177,598, or 11.2%, 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 $54.8 million. Total net position for governmental activities increased $41.0 million and total net position for business-type activities increased $13.8 million due to normal operating activities. Net Investment in Capital Assets for governmental and business-type activities increased a net of $43.9 million. Governmental activities increased $29.4 million and business-type activities increased $14.5 million. For more details on the County's debt, refer to Table F below and Note 4 in the Notes to the Basic Financial Statements. 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 $177.6 million, a 2.6% increase over the prior year. Public Protection saw the largest decrease in restricted net position at $3.9 million, or 18.6%, and Health and Sanitation saw the largest increase in restricted net position at $6.3 million, or 33.9%. These changes are primarily attributable to variance in purchase obligations, claims, contracts, and enabling legislation from the prior year. There was an increase of $6.5 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. 21 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) Table B Statement of Activities For the Year Ended June 30, 2024 (in thousands) June 30, 2024 June 30, 2023 2023-2024 Govern- Business- Total Govern- Business- Total Total mental Type Primary mental Type Primary % Activities Activities Government Activities Activities Government Change Revenues: Program revenues: Charges for services $ 63,960 $ 65,996 $ 129,956 $ 64,978 $ 61,648 $ 126,626 2.6% Operating grants and contributions 399,594 2,368 401,962 368,652 5,622 374,274 7.4% Capital grants and contributions 14,800 2,333 17,133 6,371 963 7,334 133.6% General revenues: Property taxes 245,825 5,045 250,870 235,064 4,944 240,008 4.5% Other taxes 38,278 - 38,278 37,417 - 37,417 2.3% Interest and investment income 33,512 4,575 38,087 13,395 1,814 15,209 150.4% Grants not restricted to specific programs 5,567 - 5,567 5,334 - 5,334 4.4% Other revenues 558 965 1,523 306 5,282 5,588 (72.7%) Total revenues 802,094 81,282 883,376 731,517 80,273 811,790 8.8% Expenses: General government 67,933 - 67,933 37,088 - 37,088 83.2% Public protection 257,497 - 257,497 254,728 - 254,728 1.1% Public ways and facilities 50,230 - 50,230 55,375 - 55,375 (9.3%) Health and sanitation 174,990 - 174,990 152,565 - 152,565 14.7% Public assistance 168,272 - 168,272 201,741 - 201,741 (16.6%) Education 13,756 - 13,756 15,256 - 15,256 (9.8%) Recreation and cultural services 14,202 - 14,202 13,754 - 13,754 3.3% Interest on long-term debt 12,529 - 12,529 11,299 - 11,299 10.9% Airport - 15,333 15,333 - 26,498 26,498 (42.1%) Golf - 5,500 5,500 - 4,884 4,884 12.6% State Water Contract - 7,404 7,404 - 6,882 6,882 7.6% Nacimiento Water Contract - 12,571 12,571 - 14,170 14,170 (11.3%) Lopez Flood Control - 8,145 8,145 - 7,708 7,708 5.7% Lopez Park - - - - - - - General Flood Control - 1,847 1,847 - 1,490 1,490 24.0% County Service Areas - 6,463 6,463 - 7,340 7,340 (11.9%) Los Osos Wastewater - 11,861 11,861 - 12,597 12,597 (5.8%) Total expenses 759,409 69,124 828,533 741,806 81,569 823,375 0.6% Excess/(deficiency) before transfers 42,685 12,158 54,843 (10,289) (1,296) (11,585) (573.4%) Transfers (1,685) 1,685 - (6,696) 6,696 - - Change in net position 41,000 13,843 54,843 (16,985) 5,400 (11,585) (573.4%) Net position - beginning 1,105,182 420,453 1,525,635 1,122,167 415,053 1,537,220 (0.8%) Net position - ending $ 1,146,182 $ 434,296 $ 1,580,478 $ 1,105,182 $ 420,453 $ 1,525,635 3.6% 22 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) Analysis of Governmental and Business-type Activities Governmental Activities Governmental Activities increased the County’s net position by $41.0 million compared to a decrease of $17.0 million in the prior year. Overall, total revenues for governmental activities increased $70.6 million, or 9.6%. Significant factors contributing to the overall increase in revenues from the prior year are detailed below:  Operating Grants and Contributions increased by $30.9 million, or 8.4%. Public Ways and Facilities revenue increased $5.6 million, or 24.4%. This increase was primarily from Department of Water Resources Sustainable Groundwater Management Grant Program. Through this grant program the County received $3.5 million in funding for the implementation of the Paso Robles Subbasin Groundwater Sustainability Plan (GSP). The goal of the GSP is to sustainably manage the groundwater resources for long-term community financial, and environmental benefit of the basin’s users. Health and Sanitation revenue increased $27.0 million, or 25.1%. The County recorded an additional $10.9 million in Mental Health Services Act (MHSA) revenue over the prior year. MHSA funds are allocated to the County to help people and families with mental health needs and are spent across five distinct components: community services and support, workforce education and training, prevention and early intervention, innovation, and capital facilities and technological needs. In FY 2023-24, the County recorded $24.6 million in MHSA revenue, with $18.2 million being spent on the community services and support component, primarily through the County’s full-service partnerships. The County also received additional funds for homeless and affordable housing programs and services. Total state and federal aid for these programs and services were $19.8 million, compared to $10.7 million last fiscal year. This increase included $6.9 million in Encampment Resolution Funding (ERF) from the California Department of Housing and Community Development. ERF Program funding assists homeless individuals living in encampments to transition to permanent housing.  Capital Grants and Contributions increased by $8.4 million, or 132.3%. The majority of the increase was for roads related projects. These projects included seismic retrofitting the existing bridge on Lopez Drive over Lopez Lake, replacing the existing bridge on El Camino Real over Santa Margarita Creek, and replacement of the Huasna Townsite Bridge over Huasna River.  Property Taxes rose $10.8 million, or 4.6% over the prior year, a function of the regular 2% increase in assessed property value allowed by California’s Proposition 13 and increasing property values on new sales.  Interest Earnings Not Restricted to Specific Programs increased $20.1 million primarily due to increased rates of return on County Treasury investments and changes in the fair market value of investments. Overall, total expenses for governmental activities increased $17.6 million, or 2.4%. Notable factors contributing to the overall increase in expenses from the prior year are detailed below:  Health and Sanitation expense increased $22.4 million, or 14.7%. The increase related to grant expenditures to support homeless services and affordable housing programs. The County has spent grant funding received from the California Department of Housing and Community Development for Emergency Solutions Grants (ESG) Program, Encampment Resolution Funding (ERF) Program, and Homeless Housing Assistance and Prevention (HHAP) Grant Program. Program funding has been used for the Welcome Home Village Project, which consists of 46 permanent supportive residential housing units and 34 interim supportive housing residential units to assist homeless individuals living in encampments to transition to permanent housing.  Public Ways and Facilities expenses decreased $5.1 million, or 9.3%. Expenditures primarily consist of various road improvement projects. The decrease in expenditures is largely related to reduced road repair costs over the prior year. In the prior year, road expenditures were higher due to increased road repairs needed to fix damage from two large storms that had federal emergency declarations. 23 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)  Education expenses decreased $1.5 million, or 9.8%. This decrease was due to prior year costs for the Library Fund’s broadband migration project and program costs associated with the California State Library Literacy Grant funds. For FY 2023-24, 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 $13.8 million compared to an increase of $5.4 million in the previous year. Revenues exceeding expenses by $12.1 million, and net transfers of $1.7 million resulted in the total increase to net position. Key elements of current year business-type activity are as follows: Total revenue increased $1.0 million, or 1.3% from the preceding year.  Total Golf Fund revenue increased $631 thousand, or 13.2%, attributable to overall increase in golf rounds played as well as increased foot traffic through the pro shops at the Morro Bay Golf Course, Chalk Mountain Golf Course, and the Dairy Creek Golf Course.  The General Flood Control Zone-Salinas Dam Fund revenue increased $732 thousand, or 50.8%, attributable to increased water sales revenue from the City of San Luis Obispo.  Los Osos Wastewater Fund revenue increased $1.4 million, or 16.3%, attributable to increased wastewater collection, treatment, and recycling services to the community of Los Osos. Expenses for business-type activities decreased $12.4 million, or 15.3% from the prior year.  Total Airport expenses decreased $11.2 million. The majority of the difference relates to increased depreciation expense being recorded in the prior year, as several capital assets belonging to the Airport Fund were either retired or had their useful lives reduced to align with Federal Aviation Administration guidelines. Due to these changes an additional $12.1 million in depreciation expense was recorded in FY 2022-23.  Nacimiento Water Contract Fund expenses decreased $1.6 million, including a $1.3 million dollar decrease to electricity charges. 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 governmental funds is 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 balance, $15,260, increased $8.5 million, or 125.0% 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 $140, (2) prepaid items of $677, and (3) long-term receivables of $14.4 million. The increase from the prior year primarily relates to loans made from the General Fund to the Roads Fund to repair road damage caused by prior year storms. 24 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)  Restricted fund balance, $151,835, decreased $2.4 million, or 1.6%, 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 $4,737, (2) public protection programs of $7,855, (3) Mental Health Services Act funds of $2,774, (4) public facilities funds of $8,944, (5) traffic impact programs of $12,740, (6) automation projects of $2,490, and (7) debt service of $99,278. The decrease is attributable to reduced public protection encumbrances for County Fire and lower Public Facilities Fees Fund fund balance.  Committed fund balance, $336,290, increased $24.7 million, or 7.9%, 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, $10,824, (2) tax reduction reserve, $64,010, (3) automation projects, $23,146, (4) roads, $18,782, (5) building replacement, $55,085, (6) solar plant mitigation, $15,640, (7) capital projects, $16,371, (8) SB 1090 economic development, $10,812, and (9) COVID-19 services, $6,134. The increase from the prior year was the combination of increased general reserves ($6.0 million), building replacement ($3.9 million), tax reduction reserve commitments ($4.9 million), and general government commitments ($7.6 million). The general government commitments increase related primarily to SB 1090 (Diablo Power Plant Closure Economic Impact Mitigation Funds) use for housing projects ($3.3 million) and funds reservations for other various capital projects ($2.1 million).  Assigned fund balance, $200,660, increased $1.5 million, or 0.7%, 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, $16,252, (2) tax reduction reserve, $31,562, (3) general government, $13,216, (4) social services programs, $26,546, and (5) subsequent fiscal year budget, $54,427. As of the end of the current fiscal year, the County’s governmental funds reported combined ending fund balance of $704,045, an increase of 4.8%, or $32.2 million, in comparison with the prior year. Approximately 76.3% of the total fund balance, or $536,952, 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 $471,242 while total fund balance reached $486,484. 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 $638.3 million. Spendable fund balance represents 73.8% of the total fund expenditures, while total fund balance represents 76.2% of the same amount, a 4.9% increase from the prior year. During the current fiscal year, the fund balance of the General Fund increased by $31.1 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 $61.7 million, which was a $38.0 million increase from the prior year.  General Fund revenues increased $37.5 million, or 5.7% over the prior year. Tax revenue increased $9.5 million, or 3.8%, due to increased assessed property values, including regular 2% increases allowed by California’s Proposition 13. Use of money and property increased $12.8 million, or 136.8%, due to increased investment interest earnings and changes in the fair market value of investments. Aid from governmental agencies increased $15.9 million, or 4.8%. State aid increased $7.8 million, or 3.2%, and federal aid increased $7.7 million, or 8.5%. State aid increased in areas of health and social services programs. The County recorded $1.3 million in state funds to assess the technical suitability of several waterfront locations to support potential wind farms. The County also recorded $3.5 million in grants from the Department of Water Resources for the implementation of the Paso Robles Subbasin Groundwater Sustainability Plan (GSP). The goal of the GSP is to sustainably manage 25 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) the groundwater resources for long-term community financial, and environmental benefit of the basin’s users. In federal aid, an additional $3.1 million was received for welfare programs.  Total expenditures in the General Fund decreased $426 thousand, or 0.1%, from the prior year. The primary expenditure functions contributing to the increase were General Government, $3.1 million, Public Protection, $13.6 million, Public Ways & Facilities, $4.0 million, and Health & Sanitation, $10.1 million. These increases were offset by a decrease in Public Assistance expenditures of $31.8 million. The increase in General Government and Public Protection was primarily due to negotiated salary increases. The increase to Public Ways & Facilities related to increase cost associated with the Paso Robles Subbasin Groundwater Sustainability Plan, including the City of Paso Robles Recycled Water Distribution System. The increase to Health & Sanitation was spread across behavioral health programs for mental health and drug and alcohol services. The decrease to Public Assistance is mainly due to the Department of Social Services recognizing a capital outlay in the prior year for a new 35- year agreement for a 20,000 square foot office building. 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 $16.4 million. Capital outlay expenditures exceeded revenues by $16.9 million and net transfers totaled $15.7 million. The combination of these two factors resulted in a $1.2 million decrease in fund balance for the current year. Funding for specific projects comes primarily from the use of designations, public facilities fees, issuance of long-term debt, and aid from other government agencies. The General Fund transferred $2.5 million to the Capital Projects Fund for various capital projects including $347 thousand for roof replacement and voluntary seismic performance improvements to the San Miguel Community Building and $181 thousand for a new 100-foot communication tower in Creston. The Public Facilities Corporation Debt Service Fund transferred in $5.6 million of debt proceeds to offset construction costs for the new Animal Services Facility, rehabilitation of the Cayucos Veterans Hall, and construction of the new Probation Department office building. Additionally, $5.8 million in public facilities fees were used. Of which, $5.4 million went to construction of the co-located emergency dispatch center. Governmental Fund Revenues Revenues for all governmental funds combined totaled $814.3 million in the current fiscal year, an increase of approximately 8.3%, or $62.1 million, from the prior fiscal year revenues of $752.2 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 June 30, 2024 (in thousands) 2023-2024 2022-2023 Increase/(Decrease) Percent Percent Percent Amount of Total Amount of Total Amount Change Revenues by Source: Taxes $ 281,265 34.5% $ 270,790 36.0% $ 10,475 3.9% Licenses, Permits, and Franchises 14,351 1.8% 15,478 2.1% (1,127) (7.3%) Fines, Forfeitures, and Penalties 4,889 0.6% 4,297 0.6% 592 13.8% Use of Money and Property 32,133 3.9% 13,346 1.8% 18,787 140.8% Aid from Governmental Agencies 408,888 50.2% 378,339 50.2% 30,549 8.1% Charges for Current Services 58,506 7.2% 55,512 7.4% 2,994 5.4% Other Revenues 14,279 1.8% 14,429 1.9% (150) (1.0%) Total $ 814,311 100.0% $ 752,191 100.0% $ 62,120 8.3% 26 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) The following provides an explanation of revenues by source that changed significantly over the prior year in the governmental funds.  Taxes increased $10.5 million, or 3.9%. Sales tax revenue increased $837 thousand, or 5.4%, over the prior year, but the primary increase to tax revenue was for the regular 2% increase in assessed property value allowed by California’s Proposition 13.  Licenses, Permits, and Franchises decreased by $1.1 million, or 7.3%, over the prior year. Construction related permit revenue decreased over the prior year. Building permit revenue decreased $527 thousand, plan check revenue decreased $581 thousand, and revenue for mechanical, electrical, and plumbing permits decreased $302 thousand. The decrease in overall Licenses, Permits, and Franchises revenue was offset by a $324 thousand increase to franchise fees. The remaining change was associated with various departmental fee revenue.  Use of Money and Property increased $18.8 million over the prior year. This increase is primarily due to investment interest earnings and changes in the fair market value of investments.  Aid from Governmental Agencies increased $30.5 million, or 8.1%. The County received $12.8 million more in state aid and $17.1 million more in federal aid. A main component to state aid revenue increasing was additional Mental Health Services Act (MHSA) revenue being recorded. Total MHSA revenue recorded was $24.6 million, which was a $10.9 million increase over the prior year. Of the $24.6 million in MHSA revenue recorded $18.2 million is for Community Services and Support programs (CSS). CSS programs serve a wide array of individuals with severe mental illness and focus on children and families, transitional aged youth, adults, and older adults. The County also recorded $1.3 million in opioid settlement fund’s grants. Opioid settlement funds stem from a federal lawsuit against opioid manufacturers, distributors, and pharmacies. These funds are used for opioid remediation activities focused on prevention, intervention, harm reduction, treatment, and recovery services. The increase in federal aid was spread across several areas. Federal aid for construction increased $5.9 million and was used for major roads projects include seismic retrofitting the existing bridge on Lopez Drive over Lopez Lake and replacing the existing bridge on El Camino Real over Santa Margarita Creek. An additional $2.8 million in Community Development Block Grants were received to prevent, prepare for, and respond to coronavirus. Lastly, an additional $3.1 million in federal aid for welfare programs was received.  Charges for Services increased $3.0 million, or 5.4%. This increase is due to increased payments from other funds for debt services associated with the 2020 and 2022 Lease Revenue Bonds. These bonds were issued to fund capital projects, including, the Animal Services Facility, Co-located Emergency Dispatch Facility, rehabilitation of the Cayucos Vets Hall, and construction of the new Probation Department office building. 27 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) Governmental Fund Expenditures Expenditures for all governmental funds combined totaled $783.1 million in the current fiscal year, an increase of approximately 2.4%, or $18.3 million, from the prior fiscal year expenditures of $764.8 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, 2024 (in thousands) 2023-2024 2022-2023 Increase/(Decrease) Percent Percent Percent Amount of Total Amount of Total Amount Change Expenditures by Function: General Government $ 78,117 10.0% $ 75,027 9.8% $ 3,090 4.1% Public Protection 247,211 31.6% 233,444 30.4% 13,767 5.9% Public Ways and Facilities 53,698 6.9% 58,016 7.6% (4,318) (7.4%) Health and Sanitation 168,927 21.6% 140,568 18.4% 28,359 20.2% Public Assistance 156,910 20.0% 188,616 24.7% (31,706) (16.8%) Education 13,975 1.8% 14,199 1.9% (224) (1.6%) Recreation and Cultural Services 14,297 1.8% 16,685 2.2% (2,388) (14.3%) Principal payments 14,207 1.8% 13,067 1.7% 1,140 8.7% Interest on Long-Term Debt 12,762 1.6% 10,581 1.4% 2,181 20.6% Capital outlay 22,986 2.9% 14,563 1.9% 8,423 57.8% Total $ 783,090 100.0% $ 764,766 100.0% $ 18,324 2.4% The following provides an explanation of the expenditures by function that changed significantly over the prior year.  General Government increased $3.1 million, or 4.1%. This increase was driven by increased salaries and benefits across all departments within the function. Overall, salaries and wages expenditures increased by 5.9% in the General Government Function.  Public Protection increased $13.8 million, or 5.9%. Salaries and benefits increased 6.7% and services and supplies increased by 5.7%. The increase to services and supplies related to storm response efforts with the rehabilitation of the Arroyo Grande Creek channel restoration and rehabilitation project. This critical project intends to address the creek’s water flow characteristics through vegetation and sediment removal to restore capacity and flood protection. The project will also re-grade the south levee and repair approximately 3,000 square yards of turf reinforcing mat.  Public Ways and Facilities expenditures decreased $4.3 million, or 7.4%. Expenditures primarily consist of various road improvement projects. The decrease in expenditures is largely related to reduced road repair costs over the prior year. In the prior year, road expenditures were higher due to increased road repairs needed to fix damage from two large storms that had federal emergency declarations. 28 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)  Health and Sanitation expenditures increased $28.4 million, or 20.2%. The increase related to grant expenditures to support homeless services and affordable housing programs. The County has spent grant funding received from the California Department of Housing and Community Development for Emergency Solutions Grants (ESG) Program, Encampment Resolution Funding (ERF) Program, and Homeless Housing Assistance and Prevention (HHAP) Grant Program. Program funding has been used for the Welcome Home Village Project, which consists of 46 permanent supportive residential housing units and 34 interim supportive housing residential units to assist homeless individuals living in encampments to transition to permanent housing.  Public Assistance expenditure decreased $31.7 million, or 16.8%. Last fiscal year (FY 2022-23), the Department of Social Services entered into a new 35-year office building lease. In accordance with GASB Statement No. 87, the cost of the lease over the full term was recognized in the first year of the agreement. The FY 2023-24 decrease in Public Assistance expenditures is attributed to the prior year recognition of the expenditure in the first year of the agreement. Offsetting this decrease, professional services for Law Enforcement Medical Care increased $1.8 million and foster care and adoption services costs increased $3.4 million.  Capital Outlay expenditures increased $8.4 million, or 57.8%. This increase is primarily due to continued construction of the co-located emergency dispatch project, rehabilitation of the Cayucos Veterans Hall, replacement of the Probation Department’s main office in San Luis Obispo, and extension of the Bob Jones Trail. 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 2023-24 fiscal year. Table E Statement of Revenues, Expenses and Results of Operations Proprietary Funds Fund Financial Statements For the Year Ended June 30, 2024 (in thousands) Nonmajor Major Funds Funds Total Nacimiento Other Water State Water Los Osos Enterprise Total Airport Contract Project Wastewater Funds Enterprise Operating revenues $ 15,521 $ 15,723 $ 8,312 $ 7,254 $ 20,205 $ 67,015 Operating expenses 15,246 6,310 7,383 8,582 20,999 58,520 Operating income (loss) 275 9,413 929 (1,328) (794) 8,495 Non-operating revenues (expenses), net 3,604 (5,131) 3,543 (2,936) 2,447 1,527 Net income (loss) before contributions and transfers 3,879 4,282 4,472 (4,264) 1,653 10,022 Contributions and transfers, net (313) - - 2,687 1,644 4,018 Change in net position $ 3,566 $ 4,282 $ 4,472 $ (1,577) $ 3,297 $ 14,040 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 gain of $275 thousand, a $14.6 million increase from the prior year’s operating loss of $14.3 million. The prior year operating loss was attributable to increased 29 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) depreciation expense being recognized when several capital assets either had their useful life reduced or were retired. Operating revenues increased by $3.7 million compared to the prior year, indicating strong demand for commercial passenger travel. The San Luis Obispo County Regional Airport introduced direct flights to Las Vegas and total commercial passenger enplanement activity increased 14.7% over the prior year. Revenue for rents, concessions, parking, and landing fees all increased over the prior year. Net position increased by $3.6 million compared to a decrease in net position of $8.8 million in the prior year.  The Nacimiento Water Contract Fund realized operating income of $9.4 million, a $3.3 million decrease from the prior year’s operating income of $12.7 million. The decrease is primarily attributable to the receipt of a $4.7 million settlement for leak repairs to the Nacimiento water pipeline in the prior year. Total water sales were flat year-over-year, but operating expenses decreased $1.3 million. Overall net position increased $4.3 million compared to an increase in net position of $6.9 million in the prior year.  The State Water Project Fund realized operating income of $929 thousand, a $68 thousand decrease from the prior year’s operating income of $997 thousand. Operating revenues and operating expenses saw similar increases over the prior year, with water sales increasing over the prior year by $387 thousand. Overall, net position increased by $4.5 million compared to an increase in net position of $10.3 million. This decrease in net position is due to the fund receiving a $6.3 million transfer in the prior year from the Flood Control Zone Special Revenue Fund for the sale of the unallocated portion of the Flood Control District’s State Water from 2008 to 2014.  The Los Osos Wastewater Fund reported an operating loss of $1.3 million, an increase of $415 thousand when compared to the prior year’s operating loss of $1.7 million. The wastewater plant began full-service operations in FY 2016-17. While operating revenues decreased by $176 thousand this was met with a $591 thousand decrease to the plant’s operating and maintenance costs. Additionally, the plant’s excise tax receipts increase over the prior year by $1.4 million. Overall net position decreased $1.6 million compared to a decrease in net position of $3.8 million in the prior year. GENERAL FUND BUDGETARY HIGHLIGHTS The original budget for expenditures and transfers out increased by $115.1 million, or 16.5%, during the year, leading to the final amended budget. This increase was funded by increases to both budgeted revenues and transfers-in ($76.9 million) and the uses of reserves and designations for the balance. Unanticipated revenues totaling $67.8 million in State, Federal, and Other Governmental Aid, $4.4 million in Other Revenue, $330 thousand in Interfund Revenues, $754 thousand in Charges for Current Services, $114 thousand in Licenses, Permits, and Franchises, $114 thousand in Fines, Forfeitures, and Penalties, and $3.5 million in Other Financing Sources financed the budget augmentations. General Government function augmentations of $50.8 million consisted of $13.0 million in American Rescue Plan Act (ARPA) augmentations, $22.5 million in augmentations toward capital projects, 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 $19.9 million were primarily divided among County Fire ($6.7 million), Sheriff-Coroner ($6.4 million), Planning and Building ($3.9 million), Office of Emergency Services ($1.1 million), and Probation ($737 thousand). County Fire received augmentations for equipment. Sheriff-Coroner received augmentations for salaries and benefits ($3.6 million), equipment ($1.8 million), and services and supplies ($2.0 million). Planning and Building received augmentations for services and supplies. Office of Emergency Services received augmentations for equipment. Probation received augmentations primarily for equipment. The remaining smaller augmentations were for the Waste Management, District Attorney, Public Defender, Animal Services, and Agricultural Commissioner’s programs. Health and Sanitation function augmentations of $22.5 million were divided between Public Health program augmentations of $12.8 million and Behavioral Health program augmentations of $9.7 million. 30 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) Of the $6.2 million in Public Assistance augmentations $3.4 million related to Social Services’ support care and $1.8 million related to law enforcement medical care. Recreation augmentations totaling $5.8 million were primarily for Parks related capital projects. Public Ways and Facilities augmentations of $9.8 million were primarily for Development Services and Groundwater Sustainability payments. At the close of the fiscal year, actual General Fund expenditures were 81.6% of the current budget, while General Fund revenues were realized at 92.0% of budget. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets On June 30, 2024, the County had $2.0 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, water and sewer lines, and intangible right-to-use assets (see Table F). This amount represents a net increase (including additions and deductions) of $24.0 million, or 1.2%, from last year. Table F Capital Assets June 30, 2024 (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 2023 2024 2023 2024 2023 2024 Change Land $ 796,050 $ 796,050 $ 36,718 $ 40,820 $ 832,768 $ 836,870 0.5% Water Rights - - 72,319 76,435 72,319 76,435 5.7% Other Property Non- Depreciable - - 1,968 1,968 1,968 1,968 0.0% Construction-in-progress 65,871 105,488 4,974 10,069 70,845 115,557 63.1% Structures & Improvements 312,615 316,980 228,663 231,047 541,278 548,027 1.2% Equipment 112,616 121,359 12,629 12,765 125,245 134,124 7.1% Other Property Depreciable 1,258 1,258 554 554 1,812 1,812 0.0% Infrastructure Depreciable 465,617 465,617 385,317 385,317 850,934 850,934 0.0% Lease Assets 134,513 135,172 336 336 134,849 135,508 0.5% Subscription Assets 5,104 5,799 297 297 5,401 6,096 12.9% Subtotal 1,893,644 1,947,723 743,775 759,608 2,637,419 2,707,331 2.7% Less Accumulated Depreciation (477,254) (499,230) (167,800) (182,028) (645,054) (681,258) 5.6% Less Accumulated Amortization (14,229) (23,740) (276) (475) (14,505) (24,215) 66.9% Total $ 1,402,161 $ 1,424,753 $ 575,699 $ 577,105 $ 1,977,860 $ 2,001,858 1.2% 31 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 $14.5 million worth of assets. Microsurfacing, overlay, and chip seal projects throughout the County comprised most of the road additions. Other major roads projects include seismic retrofitting the existing bridge on Lopez Drive over Lopez Lake ($4.6 million), replacing the existing bridge on El Camino Real over Santa Margarita Creek ($3.1 million), replacing the Huasna Townsite Bridge over Huasna River ($1.5 million), and reconfiguring of the Avila Beach Dr/Hwy 101 Interchange to reduce traffic delays ($710 thousand). Other notable capital asset additions during fiscal year 2023-24 include continued construction of the co-located emergency dispatch project ($5.4 million), rehabilitation of the Cayucos Veterans Hall ($6.1 million), replacement of the Probation Department’s main office in San Luis Obispo ($3.5 million), and extension of the Bob Jones Trail ($1.6 million). Major additions and future commitments in capital assets - Business-type Activities The San Luis Obispo County Regional Airport purchased 4.65 acres of land near the airport to address existing landside constraints affecting parking for customers, rental cars, and employees ($4.1 million). The airport is also making improvements to its outbound baggage screening area and baggage handling system to improve capacity ($436 thousand). The Morro Bay Golf Course parking lot and clubhouse within Morro Bay State Park are improving accessibility features to bring them into compliance with Americans with Disability Act ($364 thousand). In Cayucos, the Hacienda Waterline Replacement project was completed and will reduce the number of leaks and emergency repairs needed to the pipeline ($1.1 million). The project will involve replacing and relocating approximately 1,750 feet of 6-inch AC pipe with 8-inch PVC pipe and relocating the pipeline to the northwest side of the road. 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, leases, and subscription arrangements payable of $610.6 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 fiscal year 2023-24 was $73.0 million. The pension obligation bonds debt service payments are funded by County payroll benefits. The remainder of the County’s debt consists of $21.5 million in certificates of participation, which are repaid from a variety of revenues; $78.2 million in state and other loans; $68.1 million in assessment bonds, of which, $67.9 million related to the Los Osos Wastewater Project; $146.7 million in revenue bonds which are repaid with water service revenue; $122.2 million in lease agreements, $844 thousand in subscription-based IT arrangements, and $94.7 million in lease revenue bonds for debt refunding and construction of multiple capital projects, including an animal services facility, a co-located emergency dispatch center, a new probation building, and rehabilitation of the Cayucos Veterans Hall. General Obligation Bonds totaling $5.3 million are backed by the full faith and credit of the County. 32 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) Table G Outstanding Debt June 30, 2024 (in thousands) Govern- Govern- Business- Business- mental mental Type Type Activities Activities Activities Activities Total Total Total June 30, June 30, June 30, June 30, June 30, June 30, Change 2023 2024 2023 2024 2023 2024 (%) $ $ $ $ $ $ Certificates of Participation 3,205 3,035 6,120 5,490 9,325 8,525 (8.6%) Certificates of Participation from Direct Borrowings 7,973 7,778 5,351 5,244 13,324 13,022 (2.3%) Pension Obligation Bonds 79,516 72,966 - - 79,516 72,966 (8.2%) State Notes from Direct Borrowings 1,264 1,101 80,701 76,965 81,965 78,066 (4.8%) Other Notes from Direct Borrowings - - 166 126 166 126 (24.1%) Lease Revenue Bonds 96,775 93,408 1,639 1,260 98,414 94,668 (3.8%) Revenue Bonds - - 152,400 146,726 152,400 146,726 (3.7%) General Obligation Bonds - - 5,942 5,321 5,942 5,321 (10.5%) Assessment Bonds 294 241 69,437 67,850 69,731 68,091 (2.4%) Leases 126,334 122,129 164 78 126,498 122,207 (3.4%) SBITA 2,614 757 199 86 2,813 843 (70.0%) $ $ $ $ $ $ Total 317,975 301,415 322,119 309,146 640,094 610,561 (4.6%) The decrease from the prior year for the County’s certificates of participation, notes, bonds, and leases payable was $29.5 million, or 4.6%. Total debt payments made were $20.3 million and no issuance of new debt was made in FY 2023-24. 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 $904.3 million. Other liabilities include compensated absences of $37.4 million for governmental activities and $664 thousand for business-type activities; landfill post-closure costs of $9.2 million; and a self-insurance liability of $25.4 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 2023-24 budget.  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, 2024, $35.4 million has been spent, with $14.0 million being used towards restoration of government services, $6.4 million being used for business, childcare, and non-profit grants, $6.4 million for public health programs, $5.2 million used for housing and homeless services, and $3.4 million being used for water, sewer, and broadband projects. 33 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued)  $11.2 million of Federal Emergency Management Agency (FEMA) expense reimbursement from the beginning of the pandemic through FY 2023-24.  As a political subdivision of the State, County operations and budget are impacted by State issues and policies at the State level. The Governor released his January 10, 2024, Proposed FY 2024-25 State Budget with expenditures totaling $291.5 billion and a $37.9 billion budget deficit, which is $30 billion less than the $68 billion deficit estimated by the Legislative Analyst’s Office (LAO). The Governor’s Budget proposal includes addressing part of the deficit using $13.1 billion from the State’s reserves and proposes deferrals, borrowing, claw backs, and fund shifts to address the remaining $24.8 billion. As stated above, as we developed the County’s FY 2024-25 budget, we were mindful of the State’s fiscal situation that will likely have impacts on local budgets. On January 13, 2024, the (LAO) released a report on the Overview of the Governor’s FY 2024-25 Budget and released a handout presented to the Senate Committee on Budget and Fiscal Review shortly after. In the information presented, the LAO states, “The state faces significant structural shortfalls—around $30 billion each year—under both our and the administration’s forecasts for 2025-26 through 2027-28. The state will have fewer tools available to address these shortfalls. As such, the Legislature likely will face more difficult decisions, such as revenue increases and ongoing spending reductions to balance the budget in future years.” In addition to the State budget there are a number of prior legislative actions as well as potential bills being tracked by the County that may impact the County budget. In regards to prior legislative actions, the County will be required to implement the Community Assistance, Recovery, and Empowerment Act (CARE Act) program by December 1, 2024. The CARE Act authorizes specified adult persons to petition a civil court to create a voluntary CARE agreement or a court-ordered CARE plan and implement services, to be provided by county behavioral health agencies, to provide behavioral health care, including stabilization medication, housing, and other enumerated services to adults who are currently experiencing a severe mental illness and have a diagnosis identified in the disorder class schizophrenia and other psychotic disorders, and who meet other specified criteria. Most recently in March, California voters approved Proposition 1 which will have significant impacts on the County starting in 2027. Proposition 1 mandates that counties allocate a greater portion of their Mental Health Services Act (MHSA) funds towards housing and personalized support services such as employment aid and educational assistance. Presently, counties have the option to use MHSA funds for these services, but there is no specific requirement regarding their allocation. Under Proposition 1, counties must maintain other mental health services, like crisis response and outreach, but will have reduced MHSA funds for these purposes. The County receives 39% of its General Fund revenue from the State. Therefore, we are and will continue to be mindful of the State’s fiscal challenges and the consequential impacts on the County.  The County is home to PG&E’s Diablo Canyon Nuclear Power Plant (Diablo Canyon), which produces enough energy to meet the needs of more than 3 million northern and central Californians. The plant was expected to close in 2025, however, Senate Bill 846, allows the plant to operate until 2030, and in November 2023, PG&E submitted a license application to extend the lifetime of the plant by up to 20 years. The future operation of the plant is pending review by the Nuclear Regulatory Commission, but PG&E previously received approval to keep the plant operational during that review. 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 County 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 was expected to occur gradually as the assessed value of the plant declines leading up to the original closure in 2025. To 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 34 MANAGEMENT’S DISCUSSION AND ANALYSIS (continued) 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 the unincorporated areas was $16.4 million, a 5.4% increase over the prior year.  County assessed property tax valuations increased from $68.4 billion to $72.3 billion, or 5.8%.  Transient Occupancy Tax collections were level with the prior year amount at $16.6 million.  The Board of Supervisors adopted the FY 2024-25 budget in June 2024, with a $121.9 million fund balance in the General Fund, of which $54.4 million was appropriated to finance the current year’s expenditures including contingencies. $13.0 million was placed in general reserves, and $62.9 million was earmarked for designations. The total General Fund budget for FY 2024-25 is $756.8 million, a 6.0% 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. 35 ________________________________________________________________ BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS ________________________________________________________________ COUNTY OF SAN LUIS OBISPO STATEMENT OF NET POSITION JUNE 30, 2024 (IN THOUSANDS) Primary Government Component Unit Governmental Business-Type First 5 Activities Activities Total San Luis Obispo ASSETS Current Assets: Cash and cash equivalents $ 705,410 $ 92,133 $ 797,543 $ 9 ,677 Accounts receivable, net 9,931 2,957 1 2,888 - Property taxes receivable 1 8,948 - 18,948 - Other receivables 2,291 95,434 9 7,725 - Due from other governments 8 2,883 60 82,943 855 Interest receivable 1 23 24 - Leases receivable 266 622 888 - Deposits with others 4,056 86 4,142 4 Internal balances 1 1,948 (11,948) - - Inventories 1,034 94 1,128 - Prepaid items 687 294 981 4 Loans receivable (net of allowance for uncollectibles) 2 1,486 374 21,860 - Total Current Assets 858,941 180,129 1,039,070 1 0,540 Noncurrent Assets: Restricted cash with fiscal agent 7 2,577 1 0,409 8 2,986 - Leases receivable 1,337 2 3,974 2 5,311 - Prepaid insurance - 241 241 - Capital Assets: Nondepreciable 901,538 129,292 1,030,830 - Depreciable, net 405,984 447,655 853,639 - Lease assets, net 116,416 76 116,492 38 SBITA assets, net 815 82 897 - Total Noncurrent Assets 1,498,667 611,729 2,110,396 38 Total Assets 2,357,608 791,858 3,149,466 1 0,578 DEFERRED OUTFLOWS OF RESOURCES Deferred pensions 245,223 2,996 248,219 122 Deferred OPEB 1 4,498 215 14,713 - Deferred loss on refunding - 2,720 2,720 - Total Deferred Outflows of Resources 259,721 5,931 265,652 122 LIABILITIES Current Liabilities: Accounts payable 5 4,620 9,026 6 3,646 1,298 Salaries and benefits payable 9,113 131 9,244 4 Deposits from others 1 3,294 1,774 1 5,068 - Accrued interest 6,045 3,981 1 0,026 - Other current liabilities 1,689 - 1,689 - Unearned revenue 4 4,713 3,016 4 7,729 - Bonds and notes payable 1 4,910 1 2,753 2 7,663 - Lease liability 5,038 37 5,075 36 SBITA liability 315 86 401 - Compensated absences 2 8,283 338 28,621 6 Landfill closure/postclosure costs 1,130 - 1,130 - Self-insurance payable 5,309 - 5,309 - Total Current Liabilities 184,459 3 1,142 215,601 1,344 Long-Term Liabilities: Net pension liability 930,501 1 1,368 941,869 150 Net OPEB liability 2 4,827 367 25,194 - Bonds and notes payable 163,619 296,229 459,848 - Lease liability 117,091 41 117,132 - SBITA liability 442 - 442 - Compensated absences 9,091 326 9,417 16 Landfill closure/postclosure costs 8,083 - 8,083 - Self-insurance payable 2 0,050 - 20,050 - Total Long-Term Liabilities 1,273,704 308,331 1,582,035 166 Total Liabilities 1,458,163 339,473 1,797,636 1,510 DEFERRED INFLOWS OF RESOURCES Deferred pensions 1,592 19 1,611 2 Deferred OPEB 9,544 142 9,686 - Deferred bond refunding 350 396 746 - Deferred amounts related to leases 1,498 2 3,463 2 4,961 - Total Deferred Inflows of Resources 1 2,984 2 4,020 3 7,004 2 NET POSITION Net investment in capital assets 1,259,302 307,522 1,566,824 2 Restricted for: General government 1 1,364 - 11,364 - Public protection 1 7,198 - 17,198 - Health and sanitation 2 5,040 - 25,040 - Public assistance 3,805 - 3,805 - Public ways and facilities 2 4,240 - 24,240 - Recreation and cultural services 2,562 - 2,562 - Education 171 - 171 - Debt service 9 3,218 - 93,218 - Unrestricted (290,718) 126,774 (163,944) 9,186 Total Net Position $ 1,146,182 $ 434,296 $ 1,580,478 $ 9 ,188 36 COUNTY OF SAN LUIS OBISPO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2024 (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 $ 6 7,933 $ 1 3,935 $ 1 3,980 $ 1,489 $ 2 9,404 Public protection 2 57,497 26,358 81,679 1,256 1 09,293 Public ways and facilities 50,230 4,449 28,316 10,842 43,607 Health and sanitation 1 74,990 10,637 1 34,746 - 1 45,383 Public assistance 1 68,272 1,074 1 39,484 - 1 40,558 Education 13,756 1,278 374 - 1,652 Recreation and cultural services 14,202 6,229 1,015 1,213 8,457 Interest on long-term debt 12,529 - - - - Total governmental activities 7 59,409 63,960 3 99,594 14,800 4 78,354 Business-type activities: Airport 15,333 15,131 2,302 - 17,433 Golf 5,500 5,327 - - 5,327 State Water Contract 7,404 7,754 1 8 - 7,772 Nacimiento Water Contract 12,571 15,723 - - 15,723 Lopez Flood Control 8,145 7,379 8 - 7,387 Lopez Park - - - - - General Flood Control - Salinas Dam 1,847 1,985 3 7 - 2,022 County Service Areas 6,463 5,449 3 - 5,452 Los Osos Wastewater 11,861 7,248 - 2,333 9,581 Total business-type activities 69,124 65,996 2,368 2,333 70,697 Total primary government $ 828,533 $ 129,956 $ 401,962 $ 1 7,133 $ 549,051 Component unit: First 5 San Luis Obispo $ 3,397 $ - $ 2,880 $ - $ 2,880 37 COUNTY OF SAN LUIS OBISPO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2024 (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 $ (38,529) $ - $ (38,529) Public protection (148,204) - (148,204) Public ways and facilities (6,623) - (6,623) Health and sanitation (29,607) - (29,607) Public assistance (27,714) - (27,714) Education (12,104) - (12,104) Recreation and cultural services (5,745) - (5,745) Interest on long-term debt (12,529) - (12,529) Total governmental activities (281,055) - (281,055) Business-type activities: Airport - 2,100 2,100 Golf - ( 173) ( 173) State Water Contract - 368 368 Nacimiento Water Contract - 3,152 3,152 Lopez Flood Control - ( 758) ( 758) Lopez Park - - - General Flood Control - 175 175 County Service Areas - (1,011) (1,011) Los Osos Wastewater - (2,280) (2,280) Total business-type activities - 1,573 1,573 Total primary government $ ( 281,055) $ 1,573 $ ( 279,482) Component unit: First 5 San Luis Obispo $ (517) General Revenues: Taxes: Property taxes 2 45,825 5,045 2 50,870 - Sales and use taxes 16,396 - 16,396 - Transient occupancy taxes 16,574 - 16,574 - Transfer tax 2,971 - 2,971 - Other taxes 2,337 - 2,337 - Grants not restricted to specific programs 5,567 - 5,567 - Interest earnings not restricted to specific programs 33,512 4,575 38,087 424 Other revenues 558 965 1,523 9 1 Transfers (1,685) 1,685 - - Total General Revenues and Transfers 3 22,055 12,270 3 34,325 515 Change in net position 41,000 13,843 54,843 (2) Net position - beginning of year 1,105,182 4 20,453 1,525,635 9,190 Net position - end of year $ 1,146,182 $ 434,296 $ 1,580,478 $ 9,188 38 ________________________________________________________________ BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS ________________________________________________________________ COUNTY OF SAN LUIS OBISPO BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2024 (IN THOUSANDS) Nonmajor Total General Capital Projects Governmental Governmental Fund Fund Funds Funds ASSETS Cash and cash equivalents $ 513,604 $ 1 8,884 $ 124,220 $ 656,708 Restricted cash with fiscal agent - - 72,577 72,577 Accounts receivable, net 9,154 - 265 9,419 Accrued property taxes receivable 18,948 - - 18,948 Other receivables 2,291 - - 2,291 Due from other governments 63,153 4,574 15,156 82,883 Interest receivable 1 - - 1 Due from other funds - 2,094 - 2,094 Inventories 140 - - 140 Leases receivable 1,485 - 118 1,603 Loans receivable, net of allowance for uncollectibles - - 21,486 21,486 Advances to other funds 14,443 - 2,028 16,471 Deposits with others 4,056 - - 4,056 Prepaid items 659 - 1 8 677 Total assets $ 627,934 $ 2 5,552 $ 235,868 $ 889,354 LIABILITIES Accounts payable $ 3 5,378 $ 5,565 $ 1 2,183 $ 5 3,126 Salaries and benefits payable 7,944 - 315 8,259 Due to other funds - - 2,094 2,094 Deposits from others 6,398 - 1,640 8,038 Unearned revenue 38,070 100 6,543 44,713 Other current liabilities 1,689 - - 1,689 Advances from other funds - - 9,220 9,220 Total liabilities 89,479 5,665 31,995 1 27,139 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 50,581 3,516 2,575 56,672 Deferred amounts related to leases 1,390 - 108 1,498 Total deferred inflows of resources 51,971 3,516 2,683 58,170 FUND BALANCES Nonspendable 15,242 - 1 8 15,260 Restricted 22,096 - 1 29,739 1 51,835 Committed 2 48,486 16,371 71,433 3 36,290 Assigned 2 00,660 - - 2 00,660 Total fund balances 4 86,484 16,371 2 01,190 7 04,045 Total liabilities, deferred inflows of resources, and fund balances $ 627,934 $ 2 5,552 $ 235,868 $ 889,354 The accompanying notes are an integral part of these financial statements. 39 COUNTY OF SAN LUIS OBISPO RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION FOR THE YEAR ENDED JUNE 30, 2024 (IN THOUSANDS) Total Fund Balances - Total Governmental Funds $ 7 04,045 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 ,291,334 Lease assets used in governmental activities are not financial resources and therefore are not reported in governmental funds. 115,779 SBITA assets used in governmental activities are not financial resources and therefore are not reported in governmental funds. 7 85 Accrued property tax and grant revenues are not available to pay for current-period expenditures and, therefore, are deferred in the funds. 56,672 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. (32,337) 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. 4,697 Interest on long-term debt is recognized as it accrues, regardless of when it is due. ( 6,045) 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. (849,047) 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. (22,485) 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. 222,304 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. 4,487 Governmental funds report the effects of refundings when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. (350) 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 (10,813) Bonds and notes payable (167,716) Leases payable (121,453) SBITA payable (726) Compensated absences (33,736) Landfill closure/postclosure costs (9,213) (343,657) Net Position of Governmental Activities $ 1,146,182 The accompanying notes are an integral part of these financial statements. 40 COUNTY OF SAN LUIS OBISPO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2024 (IN THOUSANDS) Nonmajor Total General Capital Projects Governmental Governmental Fund Fund Funds Funds REVENUES Taxes $ 260,658 $ - $ 20,607 $ 281,265 Licenses, permits, and franchises 14,351 - - 14,351 Fines, forfeitures, and penalties 3 ,838 4 09 642 4 ,889 Use of money and property 22,281 8 02 9,050 32,133 Aid from other governments 349,537 3,559 55,792 408,888 Charges for services 38,936 1,302 18,268 58,506 Other revenues 10,388 - 3,891 14,279 Total revenues 699,989 6,072 108,250 814,311 EXPENDITURES Current: General government 78,117 - - 78,117 Public protection 238,071 - 9,140 247,211 Public ways and facilities 8 ,010 - 45,688 53,698 Health and sanitation 142,405 - 26,522 168,927 Public assistance 156,310 - 600 156,910 Education 644 - 13,331 13,975 Recreation and cultural services 6 ,399 - 7,898 14,297 Debt service: Principal payments 7 ,421 - 6,786 14,207 Interest and fiscal charges 879 - 11,883 12,762 Capital outlay - 22,986 - 22,986 Total expenditures 638,256 22,986 121,848 783,090 Excess (deficiency) of revenues over (under) expenditures 61,733 (16,914) (13,598) 31,221 OTHER FINANCING SOURCES (USES) Leases 659 - - 659 SBITAs 695 - - 695 Transfers in 2 ,200 15,718 30,286 48,204 Transfers out ( 34,202) - (14,340) ( 48,542) Total other financing sources (uses) ( 30,648) 15,718 15,946 1 ,016 Net change in fund balances 31,085 ( 1,196) 2 ,348 32,237 Fund balances - beginning 455,399 17,567 198,842 671,808 Fund balances - ending $ 486,484 $ 16,371 $ 201,190 $ 704,045 The accompanying notes are an integral part of these financial statements. 41 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 JUNE 30, 2024 (IN THOUSANDS) Net Change in Fund Balances - Total Governmental Funds $ 32,237 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. 9,533 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 $ 21,029 General government 7,234 Public protection 6,512 Public ways 1 4,528 Health and sanitation 153 Public assistance 123 Education 348 Recreation and cultural services 1,118 5 1,045 Governmental funds report new leases and SBITAs as expenditures. These expenditures have no effect on net position. 1,355 In the Statement of Activities, the cost of capital assets is allocated over their estimated useful lives and reported as depreciation expense. (22,724) 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. (6,897) In the Statement of Activities, the cost of SBITA assets is allocated over their estimated useful lives and reported as amortization expense. (2,463) The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to decrease net position. (138) Debt proceedsand new leases are reported as financing sources in governmental fundsand 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 7,076 Lease payments 4,748 Lease issuance (659) SBITA payments 2,526 SBITA issuance (695) 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 $ (229) Change in accrued interest payable (413) Change in landfill closure/postclosure costs (468) Change in net OPEB liability 2,071 Change in deferred OPEB outflows (4,171) Change in deferred OPEB inflows 738 Change in Net Pension Liability (10,108) Change in deferred pension outflows (22,839) Change in deferred pension inflows (532) Change in capital appreciation bond accretion 3,017 Amortization of debt premiums and discounts and refunding 508 (32,426) Internal s ervice 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. (1,715) The net (revenue) expense allocable to business-type activities 197 Change in Net Position of Governmental Activities $ 41,000 The accompanying notes are an integral part of these financial statements. 42 COUNTY OF SAN LUIS OBISPO STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2024 (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 ASSETS Current assets: Cash and investments $ 28,794 $ 17,211 $ 19,972 $ 7,169 $ 18,987 $ 92,133 $ 48,702 Accounts receivable, net - - 2,467 - 4 90 2,957 5 12 Other receivables 1,027 - - 94,407 - 95,434 - Due from other governments 15 - 6 - 39 60 - Interest receivable 23 - - - - 23 - Leases receivable 6 10 - - - 12 6 22 - Deposits with others - - - - 86 86 - Inventories - - - - 94 94 8 94 Loans receivable - - - 3 74 - 3 74 - Prepaid items - - - - 2 94 2 94 10 Total current assets 30,469 17,211 22,445 101,950 20,002 192,077 50,118 Noncurrent assets: Restricted cash with fiscal agent - 10,408 - - 1 10,409 - Leases receivable 23,974 - - - - 23,974 - Prepaid insurance - 2 41 - - - 2 41 - Capital assets: Nondepreciable: Land 28,133 3,259 - 5,406 4,022 40,820 - Construction in progress 2,356 - 38 5 69 7,106 10,069 - Water rights - 76,435 - - 76,435 - Other property - - - - 1,968 1,968 - Depreciable: Infrastructure, net 2 77 137,710 - 152,656 19,548 310,191 - Structures and improvements, net 70,960 8,041 4,886 6 06 46,113 130,606 4 06 Equipment, net 5,095 4 1 97 1,165 6,362 15,782 Other property, net - - - - 4 96 4 96 - Lease assets, net 46 - - - 30 76 6 37 SBITA assets, net 69 - - - 13 82 30 Total noncurrent assets 130,910 159,663 81,360 159,334 80,462 611,729 16,855 Total assets 161,379 176,874 103,805 261,284 100,464 803,806 66,973 DEFERRED OUTFLOWS OF RESOURCES Deferred pensions 1,841 - - - 1,155 2,996 21,466 Deferred OPEB 1 35 - - - 80 2 15 1,367 Deferred loss on refunding - 2,720 - - - 2,720 - Total deferred outflows of resources 1,976 2,720 - - 1,235 5,931 22,833 LIABILITIES Current liabilities: Accounts payable 7 64 4 40 6,882 1 12 8 28 9,026 1,494 Salaries and benefits payable 74 - - - 57 1 31 8 54 Interest payable - 2,142 - 1,584 2 55 3,981 - Self-insurance payable - - - - - - 5,309 Deposits from others 64 1,101 - 13 5 96 1,774 5,256 Unearned revenue 1 55 - 2,728 - 1 33 3,016 - Accrued vacation and sick leave - current 1 94 - - - 1 44 3 38 2,612 Lease liability -current 11 - - - 26 37 1 21 SBITA liability -current 72 - - - 14 86 13 Notes and bonds payable -current 40 5,525 - 3,986 3,202 12,753 - Total current liabilities 1,374 9,208 9,610 5,695 5,255 31,142 15,659 Noncurrent liabilities: Self-insurance liability - - - - - - 20,050 Advances from other funds 5,090 - - 6 76 1,485 7,251 - Accrued vacation and sick leave 2 01 - - - 1 25 3 26 1,026 Lease liability 37 - - - 4 41 5 55 SBITA liability - - - - - - 18 Notes and bonds payable 86 141,200 - 131,769 23,174 296,229 - Net OPEB Liability 2 30 - - - 1 37 3 67 2,342 Net Pension Liability 6,986 - - - 4,382 11,368 81,454 Total noncurrent liabilities 12,630 141,200 - 132,445 29,307 315,582 105,445 Total liabilities 14,004 150,408 9,610 138,140 34,562 346,724 121,104 DEFERRED INFLOWS OF RESOURCES Deferred pensions 12 - - - 7 19 1 39 Deferred OPEB 89 - - - 53 1 42 9 00 Bond refunding - 2 70 - - 1 26 3 96 - Deferred amounts related to leases 23,451 - - - 12 23,463 - Total deferred inflows of resources 23,552 2 70 - - 1 98 24,020 1,039 NET POSITION Net investment in capital assets 106,266 15,101 81,339 51,211 53,605 307,522 16,039 Unrestricted 19,533 13,815 12,856 71,933 13,334 131,471 ( 48,376) Total net position $ 125,799 $ 28,916 $ 94,195 $ 123,144 $ 66,939 438,993 $ (32,337) Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds ( 4,697) Net Position of Business-Type Activities per Government-Wide Financial Statements $ 434,296 The accompanying notes are an integral part of these financial statements. 43 COUNTY OF SAN LUIS OBISPO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2024 (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 $ 15,167 $ 15,723 $ 7 ,754 $ 7 ,248 $ 20,158 $ 66,050 $ 80,111 Other revenues 354 - 558 6 47 965 1 84 Total operating revenues 1 5,521 1 5,723 8,312 7,254 2 0,205 6 7,015 80,295 OPERATING EXPENSES: Salaries and benefits 4,220 - - - 2,869 7,089 43,262 Services and supplies 5,133 3,999 7,114 4,136 1 5,252 3 5,634 28,080 Other charges 31 5 - - 3 39 - Insurance benefit payments - - - - - - 8,273 Depreciation 5,479 2,221 192 4,364 2,447 1 4,703 2,708 Amortization 98 - - - 101 199 1 51 Countywide cost allocation 285 85 77 82 327 856 6 31 Total operating expenses 1 5,246 6,310 7,383 8,582 2 0,999 5 8,520 83,105 Operating income (loss) 275 9,413 929 (1,328) (794) 8,495 ( 2,810) NONOPERATING REVENUES (EXPENSES): Property taxes - - 2,697 - 2,348 5,045 - Investment income (expense) 1,381 1,094 828 309 963 4,575 1,947 Interest income (expense) (1) (6,225) - (3,245) (912) (10,383) (5) Sale of capital assets ( 78) - - - - ( 78) 5 00 Aid from governmental agencies 2,302 - 18 - 48 2,368 - Total nonoperating revenues (expenses) 3,604 (5,131) 3,543 (2,936) 2,447 1,527 2,442 Income (loss) before contributions and transfers 3,879 4,282 4,472 (4,264) 1,653 1 0,022 (368) Capital contributions - - - 2,333 - 2,333 - Transfers in - - - 436 1,711 2,147 51 Transfers out (313) - - ( 82) ( 67) (462) ( 1,398) Change in net position 3,566 4,282 4,472 (1,577) 3,297 1 4,040 ( 1,715) Net position - beginning 122,233 2 4,634 8 9,723 124,721 6 3,642 (30,622) Net position -ending $ 125,799 $ 28,916 $ 94,195 $ 123,144 $ 66,939 $ (32,337) Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (197) Change in Net Position of Business-Type Activities per Government-Wide Financial Statements $ 13,843 The accompanying notes are an integral part of these financial statements. 44 COUNTY OF SAN LUIS OBISPO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2024 (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 $ 14,460 $ 15,724 $ 10,065 $ 7,255 $ 19,788 $ 67,292 $ - Receipts from interfund billings - - - - - - 7 9,801 Payments for goods and services (6,598) (3,653) (7,104) (4,186) (15,185) (36,726) (20,686) Payments to employees for services (3,384) - - - (2,445) (5,829) (38,755) Payments for insurance benefits - - - - - - (6,414) Payments for premiums - - - - - - (8,547) Net cash provided (used) by operating activities 4,478 12,071 2,961 3,069 2,158 24,737 5,399 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Property tax proceeds - - 2,697 - 2,348 5,045 - Grants and subsidies from other governmental agencies 2,526 - 12 - 8 2,546 - Advances from other funds - - - - 584 584 - Transfers from other funds - - - 436 1,711 2,147 51 Transfers to other funds (313) - - ( 82) ( 67) (462) (1,398) Net cash provided (used) by noncapital financing activities 2,213 - 2,709 354 4,584 9,860 (1,347) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchases and construction of capital assets (6,226) - (4,155) (397) (5,780) (16,558) (5,294) Proceeds from sale of capital assets - - - - - - 500 Advances from (to) other funds (144) - - (539) 20 (663) - Capital contributions - - - 5,076 - 5,076 - Principal paid on capital debt ( 39) (5,086) - (3,895) (3,133) (12,153) (121) Interest paid on capital debt (1) (6,723) - (3,292) (1,012) (11,028) (5) Net cash provided (used) by capital and related financing activities (6,410) (11,809) (4,155) (3,047) (9,905) (35,326) (4,920) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 1,381 1,094 828 309 963 4,575 1,947 Net cash provided (used) by investing activities 1,381 1,094 828 309 963 4,575 1,947 Net increase (decrease) in cash and cash equivalents 1,662 1,356 2,343 685 (2,200) 3,846 1,079 CASH AND CASH EQUIVALENTS: Beginning of year 2 7,132 26,263 1 7,629 6,484 2 1,188 98,696 4 7,623 End of year $ 28,794 $ 27,619 $ 19,972 $ 7,169 $ 18,988 $ 102,542 $ 48,702 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) $ 275 $ 9 ,413 $ 929 $ (1,328) $ (794) $ 8,495 $ (2,810) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization expense 5,577 2,221 192 4,364 2,548 14,902 2,859 Changes in assets, deferred outflows of resources, liabilities, and deferred inflows of resources: (Increase) decrease in: Receivables, net (8,846) - 1,899 - 27 (6,920) (492) Inventory - - - - ( 11) ( 11) (154) Prepaid items - - - - 130 130 - Deferred outflows - pension - - - - 42 42 1,921 Deferred outflows - OPEB 14 - - - 13 27 392 Leases 7,820 - - - ( 74) 7,746 - Increase (decrease) in: Accounts payable (1,149) 137 89 30 214 (679) (579) Deposits from others 1 300 (2) 3 80 382 207 Salaries and benefits payable 89 - - - 44 133 438 Deferred inflows - pension 5 - - - 3 8 52 Deferred inflows - OPEB 1 - - - 3 4 ( 45) Net OPEB liability 2 - - - 7 9 (138) Net pension liability 724 - - - 309 1,033 1,890 Unearned revenue ( 35) - (146) - (383) (564) - Self-insurance liability - - - - - - 1,858 Total adjustments 4,203 2,658 2,032 4,397 2,952 16,242 8,209 Net cash provided (used) by operating activities $ 4 ,478 $ 12,071 $ 2 ,961 $ 3,069 $ 2 ,158 $ 24,737 $ 5 ,399 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 JUNE 30, 2024 (IN THOUSANDS) SAN LUIS OBISPO PENSION TRUST FUND FOR THE YEAR ENDED DECEMBER 31, 2023 (IN THOUSANDS) San Luis Obispo Investment County Trust Custodial Pension Trust Funds Funds December 31, 2023 June 30, 2024 June 30, 2024 ASSETS Cash and cash equivalents $ 94,664 $ 762,371 $ 138,106 Receivables: Interest and dividends 335 - - Securities sold 10,000 - - Taxes for other governments - - 601 Investments at fair value: Bonds and notes 319,700 - - International fixed income 43,226 - - Domestic equities 313,714 - - International equities 243,251 - - Alternative investments 464,486 - - Real estate 215,012 - - Other assets 205 - 4,269 Capital assets, net 4,981 - 15 Total assets $ 1,709,574 $ 762,371 $ 142,991 LIABILITIES Other current liabilities $ 1,111 $ - $ 8 9,506 Other long-term liabilities - - 9 Total liabilities $ 1 ,111 $ - $ 89,515 NET POSITION Restricted for: Pensions $ 1,708,463 $ - $ - Pool Participants - 762,371 - Individuals, organizations and other governments - - 53,476 Total Net Position $ 1 ,708,463 $ 762,371 $ 53,476 The accompanying notes are an integral part of these financial statements. 46 COUNTY OF SAN LUIS OBISPO STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL AND INVESTMENT TRUST FUNDS FOR THE YEAR ENDED JUNE 30, 2024 (IN THOUSANDS) SAN LUIS OBISPO PENSION TRUST FUND FOR THE YEAR ENDED DECEMBER 31, 2023 (IN THOUSANDS) San Luis Obispo I nvestment County Trust Custodial Pension Trust Funds Funds December 31, 2023 June 30, 2024 June 30, 2024 ADDITIONS Contributions: Contributions to pooled investments $ - $ 1,457,742 $ - Employer contributions 83,916 - - Member contributions 40,826 - - Total contributions 1 24,742 1 ,457,742 - Investment income: Realized and unrealized gains and losses 1 15,730 - - Interest 2,515 19,027 3,481 Dividends 13,479 - - Investment expenses (3,114) - - Total investment income 1 28,610 19,027 3,481 Property taxes collected for other governments - - 252,335 Sales taxes collected for other governments - - 17,443 Other Income 38 - 24,353 Total additions 2 53,390 1 ,476,769 297,612 DEDUCTIONS Benefits: Monthly benefit payments 1 31,872 - - Refunds of contributions 3,239 - - Death benefits 58 - - Total benefits 1 35,169 - - Administrative expenses 3,085 - 28 Distributions from pooled investments - 1,441,728 - Interest expenses - - 26,973 Payments to other local governments - - 1,697 Prefunded discount amortization 1,165 - - Property taxes distributed to other governments - - 253,745 Total deductions 1 39,419 1,441,728 2 82,443 Change in net position 1 13,971 3 5,041 1 5,169 Net position - beginning 1 ,594,492 7 27,330 3 8,307 Net position - ending $ 1 ,708,463 $ 7 62,371 $ 5 3,476 The accompanying notes are an integral part of these financial statements. 47 ________________________________________________________________ NOTES TO THE BASIC FINANCIAL STATEMENTS ________________________________________________________________ COUNTY OF SAN LUIS OBISPO NOTES TO THE BASIC FINANCIAL STATEMENTS (IN THOUSANDS) JUNE 30, 2024 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: County Service Areas – 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. Flood 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 County Financing Authority (the Authority) – 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 Facilities 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. 48 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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 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 Children and Families Commission of San Luis Obispo 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. San Luis Obispo County Pension Trust (Pension Trust) – Pension Trust 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. 49 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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 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 Accounting Pronouncements For the fiscal year ended June 30, 2024, the County adopted the following Governmental Accounting Standards Board (GASB) Statements: Statement No. 99 Omnibus 2022 The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement No. 53 are effective for fiscal years beginning after June 15, 2023 (FY 2023-24), and all reporting periods thereafter. This statement did not have a material impact on the financial statements. Statement No. 100 Accounting Changes and The requirements of this statement are effective for Error Corrections accounting changes and error corrections made in fiscal years beginning after June 15, 2023 (FY 2023-24), and all reporting period thereafter. This statement did not have a material impact on the financial statements. The County reports the following 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. 50 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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.  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 following 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, 2023.  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 51 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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. 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 Financial Reporting for Certain Investments and External Investment Pools, investments held by the County Treasurer are stated at fair value at June 30, 2024. 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 99.99 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. 52 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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. 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. 53 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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. 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. 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 Capitalization 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 Lease Assets - Equipment $5,000 Lease term Lease Assets – Structures $25,000 Lease term Subscription Assets $5,000 Subscription term Lease Asset 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. 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. 54 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Subscription Assets Subscription assets are recorded at the amount of the initial measurement of the subscription liabilities and modified by any subscription payments made to the vendor at the commencement of the subscription term and any capitalizable initial implementation costs. The asset is reduced by any vendor incentives received at the commencement of the subscription term. Subscription assets are amortized using the straight-line method over the shorter of the subscription term or the useful life of the underlying assets. 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. 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 measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related 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 measuring 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 CalPERS. 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. 55 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Fund Equity 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. 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 policy's objectives in order of priority are safety and preservation of capital, liquidity sufficient to meet scheduled cash flow needs, and 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 August 25, 2022. 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, 2024. The results of these audits have been 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 56 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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 1.46 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 CalTRUST Short-Term Fund (CTSTF). CalTRUST 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. CalTRUST is governed by a Board of Trustees made up of experienced local agency treasury and investment officers. The CalTRUST Board sets overall policies for the program and selects and supervises the activities of the investment manager, which as of June 30, 2024, was State Street Global Advisors. Public agencies invest in shares of beneficial interest with a Net Asset Value (NAV) that fluctuates. CalTRUST attempts to minimize NAV fluctuation. This type of investment is an authorized investment under CGC §53601 (p). As of June 30, 2024, the CTSTF NAV was $0.999 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 0.996316042 for its portfolio as of June 30, 2024. 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, 2024, 3.00% 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, 2024, 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, CalTRUST, 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 0.98959845 in the Quarterly Report of Investments as of June 30, 2024, 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 57 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) relevant laws. As of June 30, 2024, 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 Percentage Maximum Investment in One Issuer Maturity of Portfolio Investment types utilized by the combined pool in FY 2023-24 U.S. Treasury Notes 4 years 100% N/A Maximum U.S. Treasury Bills 100% N/A issued U.S. Government Agencies: Federal Home Loan Bank 4 years 25% N/A U.S. Government Agencies: Farm Credit 4 years 25% N/A Local Agency Investment Fund (LAIF) N/A 15% N/A Joint Powers Authority 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 type 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 Deposits N/A 15% Up to $250,000 per participating bank Bonds, Notes, Warrants, other evidences of indebtedness No more than 10% of issuer debt and of any local agency within this state assets. Requires specific written approval 1 year 10% of County Treasurer for each type of investment. Investments authorized, but not utilized in FY 2023-24 U.S. Treasury Bonds 4 years 100% N/A CDARS 1 year 15% 1% Bankers’ Acceptances-Domestic 30 days 10% 4% Commercial Paper 30 days 5% 2% Collateralized Certificates of Deposit 1 year 5% 1% 15% of all Tri-Party Repurchase Agreements 30 days N/A repos Maximum Cash Management Bills 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 2023-24 U.S. Government Agencies: Federal National Mortgage Assoc. U.S. Government Agencies: Federal Home Loan Mortgage Corp. Bankers’ Acceptances-Foreign Negotiable Certificates of Deposit Bi-Party Repurchase Agreements Medium-Term Notes Money Market Mutual Funds (Shares of Beneficial Interest) issued by diversified management companies Treasury Notes or Bonds of this state Registered Treasury Notes or Bonds of any of the other 49 United States Notes, Bonds, or other obligations that are at all times secured by a valid first priority security interest Mortgage Pass-Through Securities Investments not authorized in the County’s IP Reverse Repurchase Agreements Securities Lending Agreements 58 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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, 2024, the County did not have investments in medium-term notes. 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, 2024. Investment Type S&P Moody's % of Portfolio U.S. Government Agencies AA+ Aaa 43.17% U.S. Treasuries AA+ Aaa 32.11% Supranationals AAA Aaa 17.53% CalTRUST-Short-Term Fund AAf/S1+ Not Rated 4.54% LAIF Not Rated Not Rated 2.65% 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, 2024, the following investments exceeded the 5% disclosure threshold: Investment Type % of Portfolio U.S. Government Agencies-Farm Credit Bank 22.51% U.S. Government Agencies-Federal Home Loan Bank 20.66% Supranationals – IADB 7.69% Supranationals – IBRD 5.37% 59 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) At June 30, 2024, 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 7/23/24-3/10/28 0.349%-5.245% 1.50 $ 662,394 $ 663,011 U.S. Treasuries 7/31/24-2/29/28 0.397%-5.126% 1.76 492,780 493,101 Supranationals 8/28/24-1/12/28 0.318%-4.859% 1.40 268,957 273,795 CalTRUST On Demand 4.580% - 69,750 69,773 LAIF On Demand 3.927% - 40,640 40,000 Total Investments in County Treasury $ 1,534,521 $ 1,539,680 Deposits in Financial Institutions $ 218,556 $ 218,556 Cash on Hand 423 423 Total Cash held in Treasury 1,753,500 1,758,659 Deposits in Transit 7,366 7,366 Outstanding Warrants (24,465) (24,465) Total 1,736,401 1,741,560 Imprest Cash 2,253 2,253 Non-pool Cash Deposits 4,530 4,530 Other Cash Deposits 6,783 6,783 Total Cash and Cash Equivalents $ 1,743,184 $ 1,748,343 Restricted Cash with Fiscal Agent U.S. Government & Federal Agencies $ 82,986 $ 82,832 Total 82,986 82,832 Total restricted and unrestricted cash and cash equivalents $ 1,826,170 $ 1,831,175 Total Cash and Investments Summary Fair Value Total Governmental Activities $ 777,987 Total Business-Type Activities 102,542 Total Investment and Custodial Fiduciary Funds 900,477 Total Fiduciary Component Unit – SLO Pension Trust as of December 31, 2023 94,664 SLO Pension Trust Fund Perspective Difference 1 (59,177) Total Component Unit – First 5 9,677 Total Cash and Investments as of June 30, 2024 $ 1,826,170 1 Perspective amount represents the combination of the change in Total SLO Pension Trust cash from the Pension Trust's ACFR Reporting Date of 12/31/2023 to the County's ACFR Reporting Date of 6/30/2024 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 6/30/2024 is $35,487. 60 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) The following represents a condensed statement of net position and changes in net position for the Treasurer's investment pool as of June 30, 2024 (in thousands): Fair Value Statement of Net Position: Net position held for pool participants $ 1,736,401 Equity of internal pool participants $ 974,030 Equity of external pool participants (voluntary and involuntary) 762,371 Total Equity $ 1,736,401 Statement of Changes in Net Position: Revenue $ 52,029 Investment costs (941) Net deposits (6,283) Change in fair value 26,860 Net change in pool net position 71,665 Net position at July 1, 2023 1,664,736 Net position at June 30, 2024 $ 1,736,401 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. The County has the following recurring fair value measurements as of June 30, 2024: Fair Value Measurements Using Investments by fair value level Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs (Level 1) (Level 2) (Level 3) Debt securities U.S. Treasuries $ 492,780 $ 492,780 $ - $ - U.S. Government Agencies 662,389 662,389 - - Supranationals 268,957 268,957 - - Total measured at fair value 1,424,126 1,424,126 - - Investments measured at amortized cost LAIF 40,640 - - - CalTRUST 69,755 - - - Total investments in Treasury $ 1,534,521 $ - $ - $ - 61 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Restricted Cash with Fiscal Agent Cash and investments at June 30, 2024, 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 $ 82,050 Restricted interest on lease reserves 936 Total Restricted Cash $ 82,986 Cash Deposits Outside of the Treasury Pool At fiscal year-end, the carrying amount of the County's other cash deposits was $4,471,118 and the combined financial institutions' balance was $4,529,603. The difference of $58,485 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 $4,529,603 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 for the County are as follows (in thousands): Nonmajor Special General Revenue Governmental Funds Fund Funds Accounts Receivable $ 9,154 $ 265 Lease Receivables 1,485 118 Other Receivables* 2,291 - Loans Receivables - 28,418 Allowance for Doubtful - (6,932) Accounts Los Osos Nonmajor Internal Airport State Water Wastewater Enterprise Service Proprietary Funds Fund Project Fund Fund Funds Funds Accounts Receivable $ - $ 2,467 $ - $ 490 $ 512 Lease Receivables 24,584 - - 12 - Other Receivables* 1,027 - 94,407 - - Loans Receivables - - 374 - - Allowance for Doubtful - - - - - Accounts *Other receivables primarily consist of accrued deposits; except for the Los Osos Wastewater Fund, which represents the special assessment receivable. 62 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 4. CAPITAL ASSETS A summary of changes in capital assets for the year ended June 30, 2024, is as follows (in thousands): Balance Transfers & Balance Governmental Activities July 1, 2023 Additions Retirements Adjustments June 30, 2024 Capital assets, non-depreciable: Land $ 796,050 $ - $ - $ - $ 796,050 Construction in progress 65,871 42,673 (131) (2,925) 105,488 Total capital assets, non-depreciable: 861,921 42,673 (131) (2,925) 901,538 Capital assets, depreciable Structures and improvements 312,615 2,787 (97) 1,675 316,980 Equipment 112,616 11,063 (3,570) 1,250 121,359 Infrastructure 465,617 - - - 465,617 Other property 1,258 - - - 1,258 Total capital assets, depreciable 892,106 13,850 (3,667) 2,925 905,214 Less accumulated depreciation for: Structures and improvements (120,694) (7,212) 95 - (127,811) Equipment (82,573) (6,654) 3,361 - (85,866) Infrastructure (273,874) (11,549) - - (285,423) Other property (113) (17) - - (130) Total accumulated depreciation (477,254) (25,432) 3,456 - (499,230) Total capital assets depreciable, net 414,852 (11,582) (211) 2,925 405,984 Lease assets, amortizable Land 509 - - - 509 Structures and improvements 133,895 659 - - 134,554 Equipment 109 - - - 109 Total lease assets, amortizable 134,513 659 - - 135,172 Less accumulated amortization for: Land (104) (58) - - (162) Structures and improvements (11,576) (6,941) - - (18,517) Equipment (54) (23) - - (77) Total accumulated amortization (11,734) (7,022) - - (18,756) Total lease assets, amortizable net 122,779 (6,363) - - 116,416 Subscription assets, amortizable 5,104 695 - - 5,799 Less accumulated amortization for subscription assets (2,495) (2,489) - - (4,984) Total subscription assets, amortizable net 2,609 (1,794) - - 815 Governmental activities capital assets, net $ 1,402,161 $ 22,934 $ (342) $ - $ 1,424,753 63 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Balance Transfers & Balance Business-Type Activities Jul y 1, 2023 Ad ditions Reti rements Adju stments June 30, 2024 Capital assets, not being depreciated: Land $ 36,718 $ 4,102 $ - $ - $ 40,820 Construction in progress 4,974 7,243 (9) (2,139) 10,069 Water rights 72,319 4,116 - - 76,435 Other property 1,968 - - - 1,968 Total capital assets, not being depreciated: 115,979 15,461 (9) (2,139) 129,292 Capital assets, being depreciated Infrastructure 385,317 - - - 385,317 Structures and improvements 228,663 389 (144) 2,139 231,047 Equipment 12,629 558 (422) - 12,765 Other property 554 - - - 554 Total capital assets, being depreciated 627,163 947 (566) 2,139 629,683 Less accumulated depreciation for: Infrastructure (67,731) (7,395) - - (75,126) Structures and improvements (94,018) (6,529) 106 - (100,441) Equipment (5,993) (779) 369 - (6,403) Other property (58) - - - (58) Total accumulated depreciation (167,800) (14,703) 475 - (182,028) Total capital assets being depreciated, net 459,363 (13,756) (91) 2,139 447,655 Lease assets, amortizable Land 79 - - - 79 Equipment 257 - - - 257 Total lease assets, amortizable 336 - - - 336 Less accumulated amortization for: Land (22) (11) - - (33) Equipment (152) (75) - - (227) Total accumulated amortization (174) (86) - - (260) Total lease assets, amortizable net 162 (86) - - 76 Subscription assets, amortizable 297 - - - 297 Less accumulated amortization for subscription assets (102) (113) - - (215) Total subscription assets, amortizable net 195 (113) - - 82 Business-type activities capital assets, net $ 575,699 $ 1,506 $ (100) $ - $ 577,105 Depreciation and amortization expense was charged to functions/funds of the primary government as follows: Depreciation Amortization Total Governmental Activities General Government $ 3,226 $ 4,942 $ 8,168 Public Protection 5,763 1,400 7,163 Public Ways and Facilities 11,042 137 11,179 Health and Sanitation 707 1,770 2,477 Public Assistance 265 1,244 1,509 Education 437 18 455 Recreational and Cultural Services 1,284 - 1,284 Capital assets held by the County’s Internal Service Funds are charged to the various functions based on their usage of assets 2,708 - 2,708 Total governmental activities depreciation/amortization expense $ 25,432 $ 9,511 $ 34,943 Business-type Activities Airport $ 5,479 $ 98 $ 5,577 Los Osos Wastewater 4,364 - 4,364 Nacimiento Water Contract 2,221 - 2,221 State Water Project 192 - 192 Nonmajor Enterprise 2,447 101 2,548 T otal business-type activities depreciation/amortization expense $ 14,703 $ 199 $ 14,902 64 NOTES TO 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, 2024 (in thousands): Governmental Activities Expended to Committed Remaining Project June 30, 2024 Funds Budget Roads Infrastructure $ 42,627 $ 20,799 $ 44,797 Fire and Sheriff Co-located Dispatch 10,828 - 28,841 Location Cayucos Vets Hall Rehab 8,484 26 3,034 Radio Modernization 6,057 43 - Women’s Jail 5,005 - 121 New Probation Office Building 4,969 - 34,910 Bob Jones Octagon/Ontario Park Trail 3,282 41 1,726 Extension Sheriff Jail Management and Records Management Systems Software 2,622 1,410 106 Implementation Project Behavioral Health Cal Mental Health Services Authority Electronic Health 2,296 1,045 2 Records Project Sheriff Radio Dispatch 1,499 777 - Templeton to Atascadero Park Trail 1,387 - 196 Connector Hacienda Drive Water Main Replacement 1,355 - 501 Project (Cayucos) 6. LEASES AND SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS County as Lessor The County leases out several of its buildings and land. Lease terms vary, with current agreements going out until fiscal year 2062-2063. 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 ranging from 0.71% to 2.49% to measure the present value of the lease payments expected to be received during the lease term period. 65 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Minimum lease payments receivable on leases of properties as of June 30, 2024, are as follows: Governmental Activities Business-Type Activities Year Ending June 30, Principal Interest Principal Interest 2025 $ 266 $ 10 $ 622 $ 182 2026 232 9 458 179 2027 241 7 411 176 2028 206 5 431 173 2029 191 4 455 170 2030-2034 467 5 2,365 798 2035-2039 - - 2,700 708 2040-2044 - - 3,374 597 2045-2049 - - 3,422 466 2050-2054 - - 2,919 351 2055-2059 - - 3,737 222 2060-2064 - - 3,702 59 Total $ 1,603 $ 40 $ 24,596 $ 4,081 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, 2024 Activities Activities Lease revenue $ 289 $ 1,181 Lease interest 12 182 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 2056-2057. 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 2.80% to measure the present value of the lease payments expected to be paid during the lease term period. 66 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) The future principal and interest lease payments as of June 30, 2024, are as follows: Governmental Activities Business-Type Activities Year Ending June 30, Principal Interest Principal Interest 2025 $ 5,038 $ 817 $ 37 $ 1 2026 5,030 779 16 - 2027 4,993 742 12 - 2028 4,496 708 13 - 2029 4,505 675 - - 2030-2034 21,000 2,935 - - 2035-2039 19,830 2,245 - - 2040-2044 18,025 1,629 - - 2045-2049 19,017 1,001 - - 2050-2054 13,819 426 - - 2055-2059 6,376 72 - - Total $ 122,129 $ 12,029 $ 78 $ 1 The County did not have any sublease transactions, sale-leaseback transactions, or lease-leaseback transactions requiring disclosure. Subscription-Based Information Technology Arrangements The County entered into various subscription-based information technology arrangements (SBITA). SBITA terms vary, with current agreements going out until fiscal year 2028-2029. For agreements with renewal options the County included these renewal periods in the SBITA 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 SBITA liability calculation. Certain SBITAs require additional payments for maintenance, which are expensed as incurred. 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 0.73% to 3.19% to measure the present value of the SBITA payments expected to be paid during the SBITA term period. The future principal and interest SBITA payments as of June 30, 2024, are as follows: Governmental Activities Business-Type Activities Year Ending June 30, Principal Interest Principal Interest 2025 $ 315 $ 14 $ 86 $ 1 2026 282 8 - - 2027 121 2 - - 2028 25 - - - 2029 14 - - - Total $ 757 $ 24 $ 86 $ 1 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 two liability claim settlements and there were eleven workers’ compensation claim settlements that have exceeded insurance 67 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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: Type of Coverage Self-Insurance Authority Liability $ 250,000 per occurrence $ 25,000,000 Workers' Compensation $ 350,000 per occurrence Statutory Unemployment $ 639,468 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 2022-23 $ 22,260 $ 6,817 $ 5,576 $ 23,501 2023-24 $ 23,501 $ 9,014 $ 7,156 $ 25,359 8. INTERFUND RECEIVABLES AND PAYABLES The composition of interfund balances as of June 30, 2024, was (in thousands): Payable Fund (Due to Balance) Receivable Fund (Due from Balance) Amount Nonmajor Governmental Funds Capital Projects Fund $ 2,094 Total $ 2,094 68 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) The SLO County Financing Authority owes the Capital Projects Fund $1,005 for bond proceeds for the Cayucos Vets Hall Rehabilitation project and $1,089 for bond proceeds for the construction of the new Probation Department building. Payable Fund (Advances from Balance) Receivable Fund (Advances to Balance) Amount Nonmajor Governmental Funds General Fund $ 9,220 Nonmajor Enterprise Funds General Fund 134 Nonmajor Governmental Funds 1,352 1,486 Airport Fund General Fund 5,090 Los Osos Wastewater Fund Nonmajor Governmental Funds 676 Total $ 16,472 The General Fund advanced $237 to the Parks Special Revenue Fund for the restoration of the Cayucos Pier, $464 for the Nipomo Skate Park Project, $17 for storm damage repairs. The General Fund also advanced $8,502 to the Road Special Revenue Fund for storm damage repairs. The County Service Areas Enterprise Funds received advances from the County Services Area 10 Special Revenue Fund for operational costs ($1,253), the General Flood Control Zone Special Revenue Fund for state water projects ($99), and the General Fund for debt and operational costs ($13). The Golf Enterprise Fund also received $121 from the General Fund for a water line replacement project. The Airport Fund owes the General Fund $5,090 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 $676. 69 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 9. TRANSFERS Transfers to/from other funds at June 30, 2024, are as follows: (in thousands): Transfer From Transfer To Amount Purpose General Fund Capital Projects Fund $ 2,284 General Government Maintenance and Building Replacement Projects Capital Projects Fund 1,251 New Probation Department Building Capital Projects Fund 799 Other Capital Projects Capital Projects Fund 268 Communication Site Towers Nonmajor Governmental Funds 12,427 Debt Service Nonmajor Governmental Funds 6,748 Homeless Services and Affordable Housing Budgeted Appropriations Nonmajor Governmental Funds 6,329 Roads Projects Nonmajor Governmental Funds 958 ARPA Distribution Nonmajor Governmental Funds 602 Library Budgeted Appropriations Nonmajor Governmental Funds 473 Parks Storm Damage Response Nonmajor Governmental Funds 32 Flood Control Districts Water Resource Management Project Los Osos Wastewater Fund 436 ARPA Distribution Nonmajor Enterprise Funds 1,532 ARPA Distribution Nonmajor Enterprise Funds 12 Golf Budgeted Appropriations Internal Service Funds 51 ARPA Distribution 34,202 Nonmajor Governmental Funds General Fund 1,098 Public Facilities Fees General Fund 455 Debt Service General Fund 454 Other Capital Projects Fund 5,567 Capital Projects Debt Proceeds Capital Projects Fund 5,549 Public Facilities Fees Nonmajor Governmental Funds 520 Debt Service Nonmajor Governmental Funds 313 Public Facilities Fees Nonmajor Governmental Funds 213 Road Impact Fees Nonmajor Governmental Funds 4 Other Nonmajor Enterprise Fund 167 County Service Area Budgeted Appropriations 14,340 Airport Fund General Fund 194 Debt Service Nonmajor Governmental Fund 119 Debt Service 313 Los Osos Wastewater Fund Nonmajor Governmental Funds 82 Debt Service Nonmajor Enterprise Funds Nonmajor Governmental Funds 67 Debt Service Internal Service Funds Nonmajor Governmental Funds 1,398 Debt Service Total Transfers $ 50,402 70 NOTES TO 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, 2024, is as follows (in thousands): Beginning Ending Balance Restatements & Balance Due within Governmental Activities July 1, 2023 Adjustments Additions Reductions June 30, 2024 one year Bonds and notes payable: Certificates of participation (COP) $ 3,205 $ - $ - $ 170 $ 3,035 $ 180 Certificates of participation from 7,973 - - 195 7,778 200 direct borrowings State notes from direct borrowings 1,264 - - 163 1,101 165 Pension obligation bonds 79,517 (3,017) - 3,534 72,966 11,190 Lease revenue bonds 88,803 - - 2,961 85,842 3,119 Unamortized premium on lease - 7,972 - 406 7,566 - revenue bonds Assessment bonds from direct 294 - - 53 241 56 borrowings Total bonds and notes payable 189,028 (3,017) - 7,482 178,529 14,910 Leases 126,334 - 659 4,864 122,129 5,038 Subscription-based IT arrangements 2,614 - 695 2,552 757 315 Other liabilities: Compensated absences 36,952 - 22,892 22,470 37,374 28,283 Landfill post-closure costs 8,745 - 1,667 1,199 9,213 1,130 Self-insurance 23,501 - 9,013 7,155 25,359 5,309 Total other liabilities 69,198 - 33,572 30,824 71,946 34,722 Total Governmental Activities $ 387,174 $ (3,017) $ 34,926 $ 45,722 $ 373,361 $ 54,985 71 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Beginning Ending Balance Restatements & Balance Due within Business-Type Activities July 1, 2023 Adjustments Additions Reductions June 30, 2024 one year Bonds and notes payable: Certificates of participation (COP) $ 6,120 $ - $ - $ 630 $ 5,490 $ 665 Certificates of participation from 5,351 - - 107 5,244 110 direct borrowings State notes from direct borrowings 80,702 - - 3,737 76,965 3,800 Other notes from direct borrowings 166 - - 40 126 40 Revenue bonds 145,595 - - 5,250 140,345 5,525 Unamortized premium on revenue 6,805 - - 424 6,381 - bonds General obligation bonds 5,490 - - 565 4,925 595 Unamortized premium on general 452 - - 56 396 - obligation bonds Lease revenue bonds 1,582 - - 365 1,217 386 Unamortized premium on lease 57 - - 14 43 - revenue bonds Assessment bonds 69,437 - - 1,587 67,850 1,632 Total bonds and notes payable 321,757 - - 12,775 308,982 12,753 Leases 164 - - 86 78 37 Subscription-based IT arrangements 199 - - 113 86 86 Other liabilities: Compensated absences 579 - 430 345 664 338 Total other liabilities 579 - 430 345 664 338 Total Business-Type Activities $ 322,699 $ - $ 430 $ 13,319 $ 309,810 $ 13,214 72 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Annual debt service requirements for governmental activities as of June 30, 2024, 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 2025 $ 380 $ 364 $ 11,190 $ 315 $ 11,505 2026 392 349 11,200 985 12,185 2027 408 334 11,192 1,698 12,890 2028 419 319 11,181 2,444 13,625 2029 436 303 11,160 3,230 14,390 2030-2034 2,443 1,247 17,043 6,682 23,725 2035-2039 2,299 760 - - - 2040-2044 1,675 446 - - - 2045-2049 1,293 167 - - - 2050-2054 419 79 - - - 2055-2059 456 41 - - - 2060-2064 193 5 - - - Total $ 10,813 $ 4,414 $ 72,966 $ 15,354 $ 88,320 Governmental Activities (Continued) State Notes, Assessment Bonds, Including Direct Borrowings Lease Revenue Bonds Including Direct Borrowings Year Ended June 30, Principal Interest Principal Interest Principal Interest 2025 $ 165 $ 11 $ 3,119 $ 4,180 $ 56 $ 12 2026 166 9 3,260 4,027 58 9 2027 168 7 3,428 3,866 62 4 2028 170 6 2,390 3,728 65 2 2029 172 4 2,495 3,614 - - 2030-2034 260 3 14,425 16,146 - - 2035-2039 - - 17,535 12,349 - - 2040-2044 - - 17,465 7,926 - - 2045-2049 - - 21,725 4,008 - - Total $ 1,101 $ 40 $ 85,842 $ 59,844 $ 241 $ 27 Business-Type Activities Certificates of Participation, Including Direct Borrowings State Notes Revenue Bonds Year Ended June 30, Principal Interest Principal Interest Principal Interest 2025 $ 775 $ 405 $ 3,800 $ 1,584 $ 5,525 $ 6,283 2026 813 365 3,885 1,499 5,815 5,994 2027 860 322 3,972 1,413 6,120 5,689 2028 903 278 4,060 1,324 6,415 5,393 2029 947 235 4,151 1,233 6,710 5,097 2030-2034 2,433 664 14,970 5,062 38,480 20,553 2035-2039 763 473 14,934 3,627 48,590 10,448 2040-2044 881 354 16,488 2,073 22,690 929 2045-2049 1,022 213 10,705 431 - - 2050-2054 641 96 - - - - 2055-2059 424 43 - - - - 2060-2064 272 7 - - - - Total $ 10,734 $ 3,455 $ 76,965 $ 18,246 $ 140,345 $ 60,386 73 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Business-Type Activities (Continued) Other Notes General Obligation Bonds Assessment Bonds Including Direct Borrowings Year Ended June 30, Principal Interest Principal Interest Principal Interest 2025 $ 595 $ 239 $ 1,632 $ 1,843 $ 40 $ - 2026 630 206 1,677 1,798 40 - 2027 665 170 1,722 1,751 40 - 2028 700 134 1,767 1,703 6 - 2029 735 98 1,821 1,654 - - 2030-2034 1,600 82 9,897 7,479 - - 2035-2039 - - 11,358 6,020 - - 2040-2044 - - 13,025 4,346 - - 2045-2049 - - 14,946 2,426 - - 2050-2054 - - 10,005 418 - - Total $ 4,925 $ 929 $ 67,850 $ 29,438 $ 126 $ - Business-Type Activities (Continued) Lease Revenue Bonds Year Ended June 30, Principal Interest 2025 $ 386 $ 51 2026 405 31 2027 426 11 2028 - - 2029 - - 2030-2034 - - 2035-2039 - - 2040-2044 - - 2045-2049 - - 2050-2054 - - Total $ 1,217 93 Long-term liabilities at June 30, 2024, consisted of the following: Original Date of Semi Annual Issue Outstanding Issue Maturity Interest Rates Installments Amount at 6/30/2024 Governmental Activities Certificates of Participation 2007 Series A 3/01/2007 2036 4% - 4.25% $7 - $307 $5,090 $3,035 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 is the County Department of Social Services building located in the City of San Luis Obispo. IBank Loan 10/01/2016 2046 3.75% $5 - $320 6,000 5,090 A direct borrowing from the California Infrastructure & 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 is the County of San Luis Obispo Public Library and Office Building located at 6555 Capistrano Ave., Atascadero. Oceano Drainage Project 2/01/2021 2061 1.75% $1 - $98 2,841 2,688 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 $10,813 State Note 10/8/2015 2030 1.00% $88 $2,197 $1,101 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. 74 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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 Appreciation Bonds (CAB) 7/2/2003 2030 5.27% - 5.73% zero - $15,000 $44,199 $88,320 2003 Series C CABs Unaccreted Interest (15,354) $44,199 $72,966 Lease Revenue Bonds 2020 Lease Revenue Bonds Series A 3/05/2020 2044 4.0% $20 - $1,030 $16,145 $14,625 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 Revenues. 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 $3,510 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. 2022 Lease Revenue Bonds Series A 11/17/2022 2048 5.0%-5.5% $985 - $20,715 $62,220 $62,220 Used to finance the construction of multiple capital projects (Co-Located Dispatch Facility & Probation Department Building) and pay certain costs of issuance associated with the 2022A Bonds. Debt service is provided by semi-annual payments funded by public facility fees and County’s General Fund Revenues. Collateral for this debt consists of 5 facilities located in the City of San Luis Obispo and one located just outside the City of San Luis Obispo in the unincorporated area of the County. The facilities include County Government Center, Health Agency Building (Main), Health Agency Building (Mental Health), Central Services Building, Old Courthouse, and Animal Services Facility. 2022 Lease Revenue Bonds Series A Remediation 11/17/2022 2027 5.0% $986 - $1,153 $4,278 $3,292 Lease Revenue Refunding Bonds used to refund the 2012 A Certificates of Participation. The original COP was partially used to finance a portion of the new government center. Debt service is provided by semi-annual payments funded by public facility fees and County’s General Fund Revenues. Collateral for this debt consists of 5 facilities located in the City of San Luis Obispo and one located just outside the City of San Luis Obispo in the unincorporated area of the County. The facilities include County Government Center, Health Agency Building (Main), Health Agency Building (Mental Health), Central Services Building, Old Courthouse, and Animal Services Facility. 2022 Lease Revenue Bonds Series B 11/17/2022 2026 4.90%-5.05% $785 - $1,340 $3,535 $2,195 Used to finance the rehabilitation of Cayucos Veterans Hall and pay certain costs of issuance associated with the 2022B Bond. Debt service is provided by semi-annual payments funded by reservation fees and County’s General Fund Revenues. Collateral for this debt consists of 5 facilities located in the City of San Luis Obispo and one located just outside the City of San Luis Obispo in the unincorporated area of the County. The facilities include County Government Center, Health Agency Building (Main), Health Agency Building (Mental Health), Central Services Building, Old Courthouse, and Animal Services Facility. $90,413 $85,842 Assessment Bonds Sherwood Drive Underground Utility Assessment District Limited Obligation Improvement Bond, Series 2006 12/21/2006 2027 5.45% $2 - $67 $818 $241 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. 75 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Original Date of Semi Annual Issue Outstanding Issue Maturity Interest Rates Installments Amount at 6/30/2024 Business-Type Activities Certificates of Participation US Department of Agriculture (USDA) 2009 4/30/2009 2048 4.375% $2 - $86 $1,631 $1,315 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 Remediation 6/08/2011 2030 2.0% - 5.5% $23 - $928 $11,990 $5,490 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. USDA 2013 7/01/2013 2053 2.75% $19 - $67 $1,621 $1,333 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 Project 11/02/2021 2061 1.75% $1 - $93 $2,691 $2,596 A direct borrowing from USDA used to finance the Cayucos new water storage tanks which is part of the infrastructure improvement program for CSA 10A water system to address storage deficiencies, improve redundancy and reliability, and reduce overall system maintenance costs. Debt service is provided by funds from CSA 10A water sales revenues. $23,256 $10,734 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. Lopez Recreation Area 2004 2024 2.5132% $10 325 - Lopez Water Treatment Plant Upgrade 2006 2030 2.60% $836 25,945 9,060 Los Osos Wastewater Project 2011 2046 2.0% $1,565-$2,147 80,484 67,905 $109,765 $76,965 Revenue Bonds 2018 Nacimiento Water Project Revenue Refunding Bonds Series A 5/07/2018 2040 3.0% - 5.0% $158 - $9,173 $27,045 $22,500 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 B 9/26/2007 2040 5.2% - 5.6% $887 - $2,636 $38,565 $29,010 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 Water Project Revenue Refunding Bonds Series A 8/19/2015 2038 3.0%-5.0% $159 - $8,094 $107,115 $88,835 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 $140,345 General Obligation Bonds 2011 Refunding – Lopez Dam Remediation 6/08/2011 2030 2.0% - 5.5% $21 - $841 $10,760 $4,925 Used to refund the 2000 A general obligation (GO) issue. The original GO Bonds were used to improve and retrofit the Lopez Dam. Debt service is provided by applicable property taxes. 76 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Lease Revenue Bonds 2022 Lease Revenue Bonds Series A Remediation 11/17/2023 2027 5.0% $365 - $427 $1,582 $1,217 Lease Revenue Refunding Bonds used to refund the 2012 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 consists of 5 facilities located in the City of San Luis Obispo and one located just outside the City of San Luis Obispo in the unincorporated area of the County. The facilities include County Government Center, health agency building (main), health agency building (mental health), central services building, old courthouse, and animal services facility. Assessment Bonds 5/24/2012 2051 2.75% $47 - $3,472 $83,129 $67,850 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% $20 $196 $126 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, 2024, totals $68,139 with interest rates from 2.52% to 5.45%. 77 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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 $38,038 on June 30, 2024. 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, Library and General funds. Legal 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 $904,315 with a margin of $899,390. Direct Placement Debt The County does not have any direct placement debt as of June 30, 2024. Direct Borrowings The County’s outstanding notes from direct borrowings related to governmental activities of $9,120 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 $82,335 contain a provision that if default continues after the cure period, the entire obligation becomes due and payable. Rebatable Arbitrage Earnings 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, 2024 had an arbitrage liability of $161. 11. NET POSITION/FUND BALANCES NET POSITION 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, 2024, is $8,945 of Public Facility Fees, $12,740 of Road Impact Fees, and $50 of Wildlife and Grazing programs restricted due to enabling legislation. The remaining $155,863 of restricted net position is restricted due to restrictions imposed by creditors, grantors, or contributors. 78 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Restricted net position at June 30, 2024, for governmental activities is as follows (in thousands): Amount RESTRICTED FOR: General Government Purchase obligations for Board of Supervisors professional services $ 126 Purchase obligations for Administrative Office related professional services 275 Purchase obligations for Clerk-Recorder related professional services and equipment maintenance 25 Purchase obligations for Human Services professional services and equipment maintenance 106 Purchase obligations for Facilities Management related professional services 20 Purchase obligations for Building Maintenance projects 1,564 Purchase obligations for Information Technology related software, equipment, and professional 286 services Purchase obligations for Auditor-Controller-Treasurer-Tax Collector related software and 136 professional services Claims, contracts and other restrictions imposed by grantors or contributors 8,826 Total General Government 11,364 Public Protection Purchase obligations for Waste Management related professional services 70 Purchase obligations for Sheriff-Coroner related equipment and professional services 344 Purchase obligations for Probation related equipment and professional services 276 Purchase obligations for fire protection related vehicles and equipment 1,485 Purchase obligations for Planning and Building related professional services 1,760 Purchase obligations for flood control related engineering and environmental services 7,717 Wildlife and Grazing programs restricted by enabling legislation 50 Claims, contracts and other restrictions imposed by grantors or contributors 5,496 Total Public Protection 17,198 Health and Sanitation Purchase obligations for Public Health related program services 142 Purchase obligations for Behavioral Health related program services 202 Claims, contracts and other restrictions imposed by grantors or contributors 24,696 Total Health and Sanitation 25,040 Public Assistance Purchase obligations for Public Assistance related program services 615 Claims, contracts and other restrictions imposed by grantors or contributors 3,180 Prepaid expenses 10 3,805 Public Ways and Facilities Purchase obligations for Public Works related professional services 2,555 Road impact fees restricted by enabling legislation for road maintenance and construction 12,740 Public facilities fees restricted by enabling legislation for public facilities 8,945 Total Public Ways and Facilities 24,240 Recreation and Cultural Services Parks equipment and maintenance services 708 Claims, contracts, and other restrictions imposed by grantors or contributors 1,854 2,562 Education Library related professional services 163 Prepaid expenses 8 Total Education 171 Debt Service 93,218 Total Restricted Net Position $ 177,598 79 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) The Public Works Internal Service Fund reported a deficit in net position of $37,361 at June 30, 2024. This deficit is mainly due to the fund’s net pension liability of $78,274 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 $5,664 and $2,525, respectively, at June 30, 2024. 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:  Nonspendable Fund Balance – 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 external 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. 80 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Fund balances for all the major and nonmajor governmental funds as of June 30, 2024, are distributed as follows: Capital Nonmajor General Projects Governmental Fund Fund Funds Total Nonspendable: Inventories $ 140 $ - $ - $ 140 Prepaid items 659 - 18 677 Advances to other funds 14,443 - - 14,443 Subtotal 15,242 - 18 15,260 Restricted for: General Government 1,819 - - 1,819 programs & encumbrances Automation projects 2,490 - - 2,490 Tax reduction reserves 4,737 - - 4,737 Public Protection programs 7,855 - - 7,855 Public Ways and Facilities 288 - - 288 programs & encumbrances Health and Sanitation 1,518 - - 1,518 programs & encumbrances Mental Health Services Act 2,774 - - 2,774 Public Assistance programs 615 - - 615 Public facilities - - 8,945 8,945 Traffic impact programs - - 12,740 12,740 Flood Control Districts - - 7,717 7,717 services Library equipment & - - 163 163 maintenance services Community Service Areas - - 138 138 road maintenance Wildlife and grazing programs - - 50 50 Parks equipment and - - 708 708 maintenance services Debt service - - 99,278 99,278 Subtotal $ 22,096 $ - $ 129,739 $ 151,835 81 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Capital Nonmajor Projects Governmental General Fund Fund Funds Total Committed to: Maintenance projects $ 5,552 $ - $ - $ 5,552 Assessor services 97 - - 97 IT projects 53 - - 53 Other general government 19,739 - - 19,739 Fire services and equipment 16,073 - - 16,073 Sheriff-Coroner programs 1,124 - - 1,124 Other public protection 313 - - 313 Public Health programs 777 - - 777 Social Services programs 562 - - 562 Public works engineering & 47 - - 47 consulting services Community parks programs 466 - - 466 Fish and Game programs - - 196 196 Flood Control programs - - 10,824 10,824 Lighting programs - - 500 500 Community Development - - 27,795 27,795 programs Emergency Medical Services - - 554 554 Roads - - 18,781 18,781 Community Service Areas - - 3,599 3,599 Library - - 7,417 7,417 Parks - - 1,767 1,767 General reserve 13,000 - - 13,000 SB1090 Economic 10,812 - - 10,812 development COVID-19 services 6,134 - - 6,134 Internal financing 5,794 - - 5,794 Solar plant safety 843 - - 843 Solar plant mitigation 15,640 - - 15,640 Automation projects 23,146 - - 23,146 Prado Rd Interchange project 1,435 - - 1,435 Talent Development 1,822 - - 1,822 Rainy Day Fund 4,835 - - 4,835 Building replacement 55,085 - - 55,085 Tax reduction reserve 64,010 - - 64,010 Lease financing 1,127 - - 1,127 Capital Projects - 16,371 - 16,371 Subtotal $ 248,486 $ 16,371 $ 71,433 $ 336,290 82 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Capital Nonmajor Projects Governmental General Fund Fund Funds Total Assigned to: Tax reduction reserve $ 31,562 $ - $ - $ 31,562 Clerk-Recorder services 1,976 - - 1,976 IT projects 151 - - 151 General government 13,216 - - 13,216 Sheriff-Coroner & Emergency 16,570 - - 16,570 Services programs Probation programs 16,353 - - 16,353 District Attorney programs 4,147 - - 4,147 Planning programs 2,616 - - 2,616 Other public protection 749 - - 749 programs Foster Care & Social Services 26,546 - - 26,546 programs Other public assistance 1,967 1,967 programs - - Public ways and facilities 4,253 - - 4,253 Behavioral Health programs 16,252 - - 16,252 Public Health programs 9,738 - - 9,738 Subsequent Fiscal Year 54,427 - - 54,427 Budget Imprest cash 137 - - 137 Subtotal $ 200,660 $ - $ - $ 200,660 Total $ 486,484 $ 16,371 $ 201,190 $ 704,045 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, 2024, to be reappropriated during the next fiscal year (in thousands): Fund Total Encumbrances General Fund $ 11,224 Capital Projects Fund 56,783 Nonmajor Governmental Funds 44,868 Total Lapsing Encumbrances $ 112,875 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 $21,641 over the 83 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) next 11 years. The estimated amounts vary by year. For example, the principal amount due in 2024 is $1,496 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, 2024. 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, 2024, is $9,213 (in 2024 dollars). Of this, $5,316 is for the Maintenance Cost and $3,897 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, 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 84 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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, 2024, the Agricultural Preserve Program tax abatements were $18,690. 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 Bylaws 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 Bylaws of the Pension Trust. The San Luis Obispo County Employees Retirement Plan is part of those Bylaws. 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 generally includes members hired before January 1, 2011. As of December 31, 2023, there Tier 1 were 615 active County employed members in Tier 1. Tier 2 generally includes members hired on or after January 1, 2011, but before January 1, 2013. Tier 2 only applies to members hired after the date each bargaining unit adopted Tier 2. Members hired in Tier 2 a bargaining unit that did not adopt Tier 2 are considered Tier 1 members. As of December 31, 2023, there were 243 active County employed members in Tier 2. Tier 3 includes all members hired on or after January 1, 2013. As of December 31, 2023, there were Tier 3 1,844 active County employed 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. 85 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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, 2023, are shown in the following table: Tiers Summary 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 491 members attaining a minimum age 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 198 members attaining a minimum age 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 1,595 members attaining a minimum age 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 60 members attaining a minimum age 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 58 members attaining a minimum age 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 64 members attaining a minimum age 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 45 members attaining a minimum age 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 191 members attaining a minimum age 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. 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 86 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) permanent disability, participants, upon satisfaction of membership 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 32.43-35.13% 15.15-26.47% Miscellaneous Tier 2 32.43-35.13% 6.76-19.57% Miscellaneous Tier 3 31.94-34.92% 5.14-18.43% Probation Tier 1 35.77-36.75% 25.43-31.13% Probation Tier 2 Not Negotiated Not Negotiated Probation Tier 3 35.27% 11.95-24.19% Safety Tier 1 46.29-57.41% 16.22-35.13% Safety Tier 2 50.51-57.41% 10.45-26.04% Safety Tier 3 47.16-56.80% 9.25-21.62% 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, 2022 $62,935 June 30, 2023 $73,290 June 30, 2024 $83,600 In addition, the County contributes towards post-employment benefits other than retirement (See Note 18). 87 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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 63.9% funded as of January 1, 2024; 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 63.9 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, 2023, was $2,544,297. The County’s share of the Plan’s fiduciary net position was $1,602,427 as of the same date. As of December 31, 2023, the Plan’s fiduciary net position was 62.98% of the total pension liability. At June 30, 2024, the County reported a liability of $941,869 for its proportionate share of the net pension liability of the Plan. The net pension liability was measured as of December 31, 2023. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation date of January 1, 2023. The actuarial assumptions used in the January 1, 2023, valuation were based on the results of an actuarial experience study for the period January 1, 2017, through December 31, 2021. Measurements as of December 31, 2023, are based on the fair value of assets on that date, and the Total Pension Liability as of the valuation date, January 1, 2023. The actuarial assumptions were rolled forward to the Pension Trust Plan’s fiscal year-end of December 31, 2023. There were no significant events between the January 1, 2023, valuation date and the December 31, 2023, 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, 2023, the County’s proportionate share was 93.79%, compared to 93.96% at December 31, 2022, decrease of 0.17%. 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, 2024, the County recognized pension expense of $121,486. 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, 2023, the County reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources (in thousands) (in thousands) Deferred outflows of resources – change in proportion $ 1,156 $ 1,611 Deferred outflows and inflows of resources – difference between expected and actual experience 63,477 - Deferred outflows of resources – changes in actuarial assumptions 67,331 - Deferred outflows of resources – net difference between projected and actual earnings on pension plan investments 74,693 - County contributions subsequent to the measurement date 41,562 - $ 248,219 $ 1,611 88 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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 $41,562 for contributions for the fiscal year ending June 30, 2024, made subsequent to the measurement date of December 31, 2023. The $41,562 of subsequent contributions will be recognized as reduction of the net pension liability in the fiscal year ending June 30, 2025. 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, 2023, 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, 2023, 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) 2025 $ 66,217 2026 64,358 2027 70,921 2028 3,550 Thereafter - Total $ 205,046 Actuarial Assumptions The total pension liability in the January 1, 2023, actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% Amortization payment growth method Level percentage of payroll Amortization growth rate 3.00% 3.00% plus service-related merit component based on years of services Salary increases ranging from 0.00% to 5.25% COLA increases 2.75% for Tier 1 and 2.00% for Tier 2 and Tier 3 Investment rate of return 6.75%, net of administrative expense Sex distinct Public-2010 Amount-Weighted, Above-Median Income with Post-Retirement Mortality generational mortality improvements using scale MP-2021. The actuarial assumptions used in the January 1, 2023, valuation were based on the results of an actuarial experience study for the period January 1, 2017 – December 31, 2021. 89 NOTES TO 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% 1.96% Equities – Public Market 30% 4.75% Real Assets 15% 5.50% Private Markets 30% 5.98% US Treasury – Long Duration/TIPS 15% 2.15% 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, 2023 $1,289,221 $941,869 $657,297 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. Deferred Compensation Plan The Deferred Compensation Plan, also known as a 457(b), is a voluntary retirement savings plan offered by the County to enable employees to save for their future on a tax deferred basis. The County's Deferred Compensation Plan is established and administered pursuant to Section 457 of the Internal Revenue Code (IRC). Contributions are limited to an annual maximum dollar amount, as established under the IRC. For certain employee bargaining units, the County will match employee contributions up to $500 annually. Total employer matching contributions for year ended June 30, 2024, were $236 thousand. The plan is administered through a third-party administrator. The County does not perform the investing function and has no fiduciary accountability for the plan. Thus, plan assets and any related liability to the plan participants have been excluded from the County’s financial statements. 90 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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. 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 CalPERS. CalPERS 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 CalPERS, Lincoln Plaza North, 400 Q Street, Sacramento, CA 95811. Benefit Eligibility 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, 2024 a total of 3,896 employees were covered by the OPEB Plan’s benefit terms: Active Plan Members 2,700 Inactive Plan Members 1,019 Inactive Plan members entitled to but not yet receiving benefits 177 3,896 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 2023-24 the County provided the following to eligible retirees: Employee Healthcare Benefit Calendar Year 2023 $151 per month Calendar Year 2024 $157 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, 2024, the funding was a combination of direct premium payments to contracted medical, dental and vision providers, plus a contribution of $664 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. 91 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Net OPEB Liability The County reported a net OPEB liability of $25.2 million as of June 30, 2024. The June 30, 2024, net OPEB Liability was determined by the actuary using a measurement date of June 30, 2023. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. The total OPEB liability as of June 30, 2024, was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Discount Rate 6.25% Inflation 2.30% Health care cost trend rate Based on the Society of Actuaries “Long Term Healthcare Cost Trends Model v2021” that reflects actual premium change of 6.00% from 2023 to 2024 followed by 5.50% in 2025 decreasing gradually to an ultimate rate of 3.73% by 2075. Actuarial cost method Entry Age Normal, Level Percentage of Salary 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 11 years Reimbursement eligibility 40% of all retirants will apply for and receive the reimbursement Payroll growth rate 3.00% per annum Salary increases 3.00% plus service-related merit component Investment rate of return 6.00% Post-retirement mortality Miscellaneous: Pub-2010 General Employees/Retirees Amount Weighted Above-Median Mortality Table projected fully generationally using Scale MP-2021. Probation and Safety: Pub-2010 Safety Employees/Retirees Amount Weighted Above-Median Mortality Table projected fully generationally using Scale MP-2021. 92 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) The withdrawal, retirement, disability, mortality, and salary scale are based on an experience study for the five- year period ending December 31, 2021 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. The CERBT Strategy 1 portfolio consists of the following assets managed internally by the California Public Employees Retirement System (CalPERS) and/or external advisors: Target Asset Class Allocation Target Range Global Equity 49% plus/minus 5% Fixed Income 23% plus/minus 5% Treasury Inflation-Protected Securities (TIPS) 5% plus/minus 3% Global Real Estate Investment Trusts (REITs) 20% plus/minus 5% Commodities 3% plus/minus 3% Cash - plus 2% The long-term expected real rate of return, net of expenses, for CERBT Strategy 1 is assumed to be 6.0%. 93 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) Changes in the Net OPEB Liability 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: Total OPEB Plan Fiduciary Net OPEB Liability Less Net Position Equals Liability Balances as of June 30, 2023 $52,315 $24,921 $27,394 Projected Changes for fiscal year-end June 30, 2024: Service Cost 1,702 - 1,702 Interest Cost 3,140 - 3,140 Differences between expected and actual experience 153 - 153 Actuarial Gains/Losses - - - Change in Assumptions (1,429) - (1,429) Changes of Benefit Terms - - - Employee Contributions - - - Employer Contributions - 4,134 (4,134) Net Investment Income - 1,639 (1,639) Other Additions - - - Benefit Payments (1,868) (1,868) - Implicit Subsidy Credit (1,506) (1,506) - Administrative Expenses - (7) 7 Other Deductions - - - Net Projected Changes 192 2,392 (2,200) Projected Balances as of June 30, 2024 $52,507 $27,313 $25,194 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, Homeless Services and Affordable Housing Fund, Library Fund, and Parks Fund. At June 30, 2024, the OPEB Plan’s fiduciary net position was 52.0% of the total OPEB liability. 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% 7.25% Net OPEB Liability $31,326 $25,194 $20,070 94 NOTES TO BASIC FINANCIAL STATEMENTS (Continued) 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) 5.50% 6.50% 7.50% Net OPEB Liability $18,504 $25,194 $33,306 OPEB Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2024, the County recognized OPEB expense of $4.2 million. 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, 2024, 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 $ 2,156 $ 8,461 Deferred outflows of resources – changes in actuarial assumptions 6,895 1,225 Deferred outflows of resources – net difference between projected and actual earnings on pension plan investments 1,552 - County contributions subsequent to the measurement date 4,110 - $ 14,713 $ 9,686 $4,110 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, 2025. 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) 2025 $ 2,388 2026 642 2027 542 2028 (1,282) 2029 (1,188) Thereafter (185) $ 917 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. 95 ________________________________________________________________ REQUIRED SUPPLEMENTARY INFORMATION ________________________________________________________________ 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 96 COUNTY OF SAN LUIS OBISPO REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF THE COUNTY’S PROPORTIONATE 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 31st liability liability payroll covered payroll pension liability 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% 2022 93.96% $928,838 $219,410 423.33% 61.73% 2023 93.79% $941,869 $235,231 400.40% 62.98% * 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 None 97 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 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 ($1,150) $204,688 26.32% 2022 $57,546 $62,935 ($5,389) $212,907 29.56% 2023 $67,739 $73,290 ($5,551) $229,810 31.89% 2024 $78,708 $83,600 ($4,892) $240,438 34.77% ^ 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 None 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. 98 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 YEARS1 (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 OP EB liab ility: 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 experience - (2,842) - 4,990 (650) Changes of assumptions - 19,530 1,129 1,269 - Benefit payments (1,690) (1,526) (3,037) (3,102) (3,166) Implicit subsidy credit - - - - - 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 Fid uciary net pos ition: 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) Implicit subsidy credit - - - - - 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 2 $ 181,338 $ 190,136 $ 193,294 $ 202,414 $ 204,688 County’s net OPEB liability as a percentage of covered-employee payroll 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. 2 Contributions made to the OPEB plan are not based on measure of pay. 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 The discount rate increased from 6.00% in FY 2022-23 to 6.25% in FY 2023-24. The payroll growth rate increased from 2.50% in FY 2022-23 to 3.00% in FY 2023-24. The Notes to RSI are integral to the above schedule. (continued) 99 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 (CONTINUED) FOR THE LAST 10 FISCAL YEARS1 (in thousands) June 30, June 30, Measurement Date 2022 2023 For Fiscal Year Reporting Period 2022-23 2023-24 Total OP EB liab ility: Service cost $ 1,846 $ 1,702 Interest 3,604 3,140 Differences between expected and actual experience (10,638) 153 Changes of assumptions 3,599 (1,429) Benefit payments (3,758) (1,868) Implicit subsidy credit - (1,506) Net change in total OPEB liability (5,347) 192 Total OPEB liability – beginning 57,662 52,315 Total OPEB liability – ending (a) $ 52,315 $ 52,507 Plan Fid uciary net pos ition: Employer contributions 4,461 4,134 Net investment income (3,853) 1,639 Benefit payments (3,758) (1,868) Implicit subsidy credit - (1,506) Administrative expense (7) (7) Other deductions - - Net change in plan fiduciary net position (3,157) 2,392 Plan fiduciary net position – beginning 28,078 24,921 Plan fiduciary net position – ending (b) $ 24,921 $ 27,313 County’s net OPEB liability – ending (a) – (b) $ 27,394 $ 25,194 Plan fiduciary net position as a percentage of the total OPEB liability 47.6% 52.0% Covered-employee payroll 2 $ 212,907 $ 229,810 County’s net OPEB liability as a percentage of covered-employee payroll 12.9% 11.0% 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. 2 Contributions made to the OPEB plan are not based on measure of pay. 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 The discount rate increased from 6.00% in FY 2022-23 to 6.25% in FY 2023-24. The payroll growth rate increased from 2.50% in FY 2022-23 to 3.00% in FY 2023-24. The Notes to RSI are integral to the above schedule. 100 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) Actuarially Plan Annual Plan Contributions Fiscal Year Contributions Determined Contributions Covered- as a Percentage of Ended in relation to Contribution Over/(Under) Employee Covered-Employee June 30th the ADC (ADC) ADC Payroll 2 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% 2023 $ 4,751 $ 4,135 $ (616) $ 229,810 1.80% 2024 $ 4,983 $ 4,110 $ (873) $ 240,438 1.71% 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. 2 Contributions made to the OPEB plan are not based on measure of pay. Changes to benefit terms None Changes of assumptions The discount rate increased from 6.00% in FY 2022-23 to 6.25% in FY 2023-24. The payroll growth rate increased from 2.50% in FY 2022-23 to 3.00% in FY 2023-24. The Notes to RSI are integral to the above schedule. 101 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Taxes $ 254,327 $ 254,327 $ 260,658 $ 6,331 Licenses, permits, and franchises 16,393 16,393 14,351 (2,042) Fines, forfeitures, and penalties 3,451 3,565 3,486 (79) Use of money and property 7,793 7,817 17,141 9,324 Aid from other governments 323,628 391,405 349,537 (41,868) Charges for services 36,956 38,040 38,861 821 Other revenue 6,246 10,617 8,874 (1,743) Total Revenues 648,794 722,164 692,908 (29,256) Expenditures: Current: General government 68,647 93,830 63,494 30,336 Public protection 242,559 262,443 238,071 24,372 Public ways and facilities 5,979 15,261 8,010 7,251 Health and sanitation 149,085 171,579 142,405 29,174 Public assistance 159,589 165,824 156,310 9,514 Education 664 679 644 35 Recreation and Culture 6,217 12,037 6,399 5,638 Debt Service: Principal Payments - - 7,258 (7,258) Interest and Fiscal Charges - - 867 (867) Contingencies 33,499 31,716 - 31,716 Total Expenditures 666,239 753,369 623,458 129,911 Excess (Deficiency) of Revenues Over (Under) Expenditures (17,445) (31,205) 69,450 100,655 Other Financing Sources (Uses): Leases - - 659 659 SBITAs - - 695 695 Transfers in 194 2,997 599 (2,398) Transfers out (30,063) (58,042) (31,890) 26,152 Total Other Financing Sources (Uses) (29,869) (55,045) (29,937) 25,108 Net change in fund balances (47,314) (86,250) 39,513 125,763 Fund balances, beginning 335,561 335,561 335,561 - Fund balances, ending $ 288,247 $ 249,311 $ 375,074 $ 125,763 102 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 June 30, 2024 (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 $ 692,908 Revenues for funds not meeting the special revenue fund definition which are presented with the General Fund for financial reporting purposes 7,081 Total Revenues as reported in the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds $ 699,989 Uses/outflows of resources Actual amounts (budgetary basis) "Total Expenditures" from the budgetary comparison schedule $ 623,458 Expenditures for funds not meeting the special revenue fund definition which are presented with the General Fund for financial reporting purposes 14,798 Total Expenditures as reported in the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds $ 638,256 Other financing sources/(uses) of resources Actual amounts (budgetary basis) "Total Other Financing Sources (Uses)" from the Budgetary Comparison Schedule $ (29,937) Other financing sources (uses) for funds not meeting the special revenue fund definition which are presented with the General Fund for financial reporting purposes (711) Total Other Financing Sources (Uses) as reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds $ (30,648) 103 COUNTY OF SAN LUIS OBISPO NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30, 2024 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, 2024 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. 104 ________________________________________________________________ OTHER SUPPLEMENTARY INFORMATION ________________________________________________________________ ________________________________________________________________ COMBINING FINANCIAL STATEMENTS NONMAJOR GOVERNMENTAL FUNDS ________________________________________________________________ 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: Homeless and Affordable Housing (formerly known as Community Development) Accounts for pass-through grants from Housing and Urban Development (HUD) entitlements and other housing and shelter program grants to be distributed to the County and other local agencies. Emergency Medical Services Accounts for payments to physicians, hospitals, and other providers of emergency medical care from revenues imposed and collected by the courts. Driving 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. Solid Waste Management Accounts for resources used to oversee proper management, disposal, and recovery of solid waste. Wildlife & Grazing Accounts for resources used to provide for range improvements and the control of predators. 105 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. Lighting 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 Financing Authority 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. 106 COUNTY OF SAN LUIS OBISPO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2024 (IN THOUSANDS) Special Revenue Homeless Emergency Driving Under and Affordable Medical the Influence Fish and Housing Services Programs Game Assets Cash and cash equivalents $ 14,197 $ 2 90 $ - $ 199 Restricted cash with fiscal agent - - - - Accounts receivable, net - - - - Due from other governments 4,605 264 - - Loans receivable, net of allowance for uncollectibles 21,486 - - - Leases receivable - - - - Advances to other funds - - - - Prepaid items 10 - - - Total assets $ 40,298 $ 5 54 $ - $ 1 99 Liabilities Accounts payable $ 4,946 $ - $ - $ 3 Salaries and benefits payable 63 - - - Due to other funds - - - - Deposits from others 1 ,008 - - - Unearned revenue 6 ,476 - - - Advances from other funds - - - - Total liabilities 12,493 - - 3 Deferred Inflows of Resources Unavailable revenue - - - - Lease revenue - - - - Total deferred inflows of resources - - - - Fund Balances Nonspendable 10 - - - Restricted - - - - Committed 27,795 554 - 196 Total fund balances 27,805 554 - 196 Total liabilities, deferred inflows of resources, and fund balances $ 40,298 $ 5 54 $ - $ 1 99 107 COUNTY OF SAN LUIS OBISPO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2024 (IN THOUSANDS) Special Revenue Road Public Solid Impact Facilities Waste Fees Library Parks Fees Management Assets Cash and cash equivalents $ 12,740 $ 7,869 $ 3,769 $ 8,945 $ - Restricted cash with fiscal agent - - - - - Accounts receivable, net - 1 1 73 - - Due from other governments - 52 2 55 - - Loans receivable, net of allowance for uncollectibles - - - - - Leases receivable - - 1 18 - - Advances to other funds - - - - - Prepaid items - 8 - - - Total assets $ 12,740 $ 7,930 $ 4,315 $ 8,945 $ - Liabilities Accounts payable $ - $ 165 $ 121 $ - $ - Salaries and benefits payable - 1 77 75 - - Due to other funds - - - - - Deposits from others - - 5 64 - - Unearned revenue - - - - - Advances from other funds - - 7 18 - - Total liabilities - 3 42 1,478 - - Deferred Inflows of Resources Unavailable revenue - - 2 55 - - Lease revenue - - 1 08 - - Total deferred inflows of resources - - 3 63 - - Fund Balances Nonspendable - 8 - - - Restricted 12,740 1 63 7 08 8,945 - Committed - 7,417 1,766 - - Total fund balances 12,740 7,588 2,474 8,945 - Total liabilities, deferred inflows of resources, and fund balances $ 12,740 $ 7,930 $ 4,315 $ 8,945 $ - 108 COUNTY OF SAN LUIS OBISPO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2024 (IN THOUSANDS) Special Revenue Flood Wildlife Control Lighting County Roads Grazing Districts Districts Service Areas Assets Cash and cash equivalents $ 26,229 $ 5 0 $ 18,152 $ 500 $ 2,485 Restricted cash with fiscal agent - - - - - Accounts receivable, net - - 87 - 4 Due from other governments 9,880 - 1 00 - - Loans receivable, net of allowance for uncollectibles - - - - - Leases receivable - - - - - Advances to other funds - - 7 75 - 1,253 Prepaid items - - - - - Total assets $ 36,109 $ 5 0 $ 19,114 $ 500 $ 3,742 Liabilities Accounts payable $ 6,562 $ - $ 386 $ - $ - Salaries and benefits payable - - - - - Due to other funds - - - - - Deposits from others 68 - - - - Unearned revenue 67 - - - - Advances from other funds 8,502 - - - - Total liabilities 15,199 - 3 86 - - Deferred Inflows of Resources Unavailable revenue 2,129 - 1 87 - 4 Lease revenue - - - - - Total deferred inflows of resources 2,129 - 1 87 - 4 Fund Balances Nonspendable - - - - - Restricted - 50 7,717 - 1 38 Committed 18,781 - 10,824 5 00 3,600 Total fund balances 18,781 50 18,541 5 00 3,738 Total liabilities, deferred inflows of resources, and fund balances $ 36,109 $ 5 0 $ 19,114 $ 500 $ 3,742 109 COUNTY OF SAN LUIS OBISPO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (CONTINUED) JUNE 30, 2024 (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 $ 30 $ 28,734 $ 31 $ 124,220 Restricted cash with fiscal agent - 9 72,568 72,577 Accounts receivable, net - - - 265 Due from other governments - - - 15,156 Loans receivable, net of allowance for uncollectibles - - - 21,486 Leases receivable - - - 118 Advances to other funds - - - 2,028 Prepaid items - - - 18 Total assets $ 30 $ 28,743 $ 72,599 $ 235,868 Liabilities Accounts payable $ - $ - $ - $ 12,183 Salaries and benefits payable - - - 315 Due to other funds - - 2,094 2,094 Deposits from others - - - 1,640 Unearned revenue - - - 6,543 Advances from other funds - - - 9,220 Total liabilities - - 2,094 31,995 Deferred Inflows of Resources Unavailable revenue - - - 2,575 Lease revenue - - - 108 Total deferred inflows of resources - - - 2,683 Fund Balances Nonspendable - - - 18 Restricted 30 28,743 70,505 129,739 Committed - - - 71,433 Total fund balances 30 28,743 70,505 201,190 Total liabilities, deferred inflows of resources, and fund balances $ 30 $ 28,743 $ 72,599 $ 235,868 110 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2024 (IN THOUSANDS) Special Revenue Homeless Emergency Driving Under and Affordable Medical the Influence Fish and Housing Services Programs Game Revenues Taxes $ - $ - $ - $ - Fines, forfeitures, and penalties - 615 - 27 Use of money and property 771 11 18 3 Aid from other governments 19,830 - - - Charges for services - - 756 - Other revenues 2,059 - 19 - Total revenues 22,660 626 793 30 Expenditures Current: Public protection - - - 36 Public ways and facilities - - - - Health and sanitation 26,522 - - - Public assistance - 600 - - Education - - 1,128 - Recreation and cultural services - - - - Debt service: Principal payments - - - - Interest and fiscal charges - - - - Total expenditures 26,522 600 1,128 36 Excess (deficiency) of revenues over (under) expenditures (3,862) 26 (335) (6) Other financing sources (uses) Transfers in 7,589 - - - Transfers out (114) - (67) - Total other financing sources (uses) 7,475 - (67) - Net change in fund balances 3,613 26 (402) (6) Fund balances -beginning 24,192 528 402 2 02 Fund balances - ending $ 27,805 $ 554 $ - $ 196 111 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, 2024 (IN THOUSANDS) Special Revenue Road Public Solid Impact Facilities Waste Fees Library Parks Fees Management Revenues Taxes $ - $ 12,127 $ - $ - $ - Fines, forfeitures, and penalties - - - - - Use of money and property 5 72 2 48 1 78 6 87 1 Aid from other governments - 3 57 1,721 - 76 Charges for services 5 61 1 07 6,106 1,356 5 30 Other revenues - 4 78 12 - - Total revenues 1,133 13,317 8,017 2,043 6 07 Expenditures Current: Public protection - - - - 6 65 Public ways and facilities - - - - - Health and sanitation - - - - - Public assistance - - - - - Education - 12,203 - - - Recreation and cultural services - - 7,898 - - Debt service: Principal payments - 16 - - - Interest and fiscal charges - 1 - - - Total expenditures - 12,220 7,898 - 6 65 Excess (deficiency) of revenues over (under) expenditures 1,133 1,097 1 19 2,043 (58) Other financing sources (uses) Transfers in - 6 07 7 86 - - Transfers out (559) (286) (234) (6,960) (272) Total other financing sources (uses) (559) 3 21 5 52 (6,960) (272) Net change in fund balances 5 74 1,418 6 71 (4,917) (330) Fund balances - beginning 12,166 6,170 1,803 13,862 3 30 Fund balances - ending $ 12,740 $ 7,588 $ 2,474 $ 8,945 $ - 112 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, 2024 (IN THOUSANDS) Special Revenue Flood Wildlife Control Lighting County Roads and Grazing Districts Districts Service Areas Revenues Taxes $ 2,267 $ - $ 4,881 $ 4 7 $ 1,285 Fines, forfeitures, and penalties - - - - - Use of money and property 8 18 2 8 07 22 1 34 Aid from other governments 33,485 - 3 19 - 4 Charges for services 4 60 - 6 18 12 54 Other revenues 2 43 - 3 03 - 6 Total revenues 37,273 2 6,928 81 1,483 Expenditures Current: Public protection - 2 8,398 39 - Public ways and facilities 44,862 - - - 8 26 Health and sanitation - - - - - Public assistance - - - - - Education - - - - - Recreation and cultural services - - - - - Debt service: Principal payments 53 - - - - Interest and fiscal charges 15 - - - - Total expenditures 44,930 2 8,398 39 8 26 Excess (deficiency) of revenues over (under) expenditures ( 7,657) - (1,470) 42 6 57 Other financing sources (uses) Transfers in 6,541 - 2 34 - - Transfers out (113) - - - (167) Total other financing sources (uses) 6,428 - 2 34 - (167) Net change in fund balances ( 1,229) - (1,236) 42 4 90 Fund balances - beginning 20,010 50 19,777 4 58 3,248 Fund balances - ending $ 18,781 $ 5 0 $ 18,541 $ 500 $ 3,738 113 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, 2024 (IN THOUSANDS) Debt Service Total Debt Service Debt Service Debt Service Nonmajor Public Facilities Pension Obligation Financing Governmental Corporation Bonds Authority Funds Revenues Taxes $ - $ - $ - $ 20,607 Fines, forfeitures, and penalties - - - 642 Use of money and property 1 1,008 3,769 9,050 Aid from other governments - - - 55,792 Charges for services 415 - 7,293 18,268 Other revenues - 771 - 3,891 Total revenues 416 1,779 11,062 108,250 Expenditures Current: Public protection - - - 9,140 Public ways and facilities - - - 45,688 Health and sanitation - - - 26,522 Public assistance - - - 600 Education - - - 13,331 Recreation and cultural services - - - 7,898 Debt service: Principal payments 221 3,535 2,961 6,786 Interest and fiscal charges 186 7,347 4,334 11,883 Total expenditures 407 10,882 7,295 121,848 Excess (deficiency) of revenues over (under) expenditures 9 (9,103) 3,767 (13,598) Other financing sources (uses) Transfers in - 14,529 - 30,286 Transfers out - - (5,568) (14,340) Total other financing sources (uses) - 14,529 (5,568) 15,946 Net change in fund balances 9 5,426 (1,801) 2,348 Fund balances - beginning 21 23,317 72,306 198,842 Fund balances - ending $ 30 $ 28,743 $ 70,505 $ 201,190 114 ________________________________________________________________ BUDGETARY COMPARISON SCHEDULES CAPITAL PROJECTS FUND NONMAJOR GOVERNMENTAL FUNDS ________________________________________________________________ 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Fines, forfeitures, and penalties $ - $ - $ 409 $ 409 Use of money and property - - 802 802 Aid from other governments - 8,766 3,559 (5,207) Charges for services 3,926 8,986 1,302 (7,684) Other revenues - 371 - (371) Total Revenues 3,926 1 8,123 6,072 (12,051) Expenditures: Capital outlay 1 1,211 121,259 2 2,986 9 8,273 Total Expenditures 1 1,211 121,259 2 2,986 9 8,273 Excess (Deficiency) of Revenues Over (Under) Expenditures (7,285) ( 103,136) (16,914) 8 6,222 Other Financing Sources (Uses): Transfers in 7,095 101,697 1 5,718 (85,979) Transfers out - (158) - 158 Total Other Financing Sources (Uses) 7,095 101,539 1 5,718 (85,821) Net change in fund balances (190) (1,597) (1,196) 401 Fund balances, beginning 1 7,567 1 7,567 1 7,567 - Fund balances, ending $ 17,377 $ 15,970 $ 16,371 $ 401 115 COUNTY OF SAN LUIS OBISPO Homeless and Affordable Housing Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual Comparison For the Year Ended June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Use of money and property $ - $ - $ 771 $ 771 Aid from other governments 7,091 4 9,104 1 9,830 (29,274) Other revenues 723 2,046 2,059 13 Total Revenues 7,814 5 1,150 2 2,660 (28,490) Expenditures: Current: Health and sanitation Salaries, wages, and benefits 3,158 3,186 3,029 157 Services and supplies 2,739 852 856 (4) Other charges 8,307 5 6,926 2 2,914 3 4,012 Reimbursements (270) (270) (277) 7 Total Expenditures 1 3,934 6 0,694 2 6,522 3 4,172 Excess (Deficiency) of Revenues Over (Under) Expenditures (6,120) (9,544) (3,862) 5,682 Other Financing Sources (Uses): Transfers in 6,642 1 0,990 7,589 (3,401) Transfers out - (1,468) (114) 1,354 Total Other Financing Sources (Uses) 6,642 9,522 7,475 (2,047) Net change in fund balances 522 ( 22) 3,613 3,635 Fund balances, beginning 2 4,192 2 4,192 2 4,192 - Fund balances, ending $ 24,714 $ 24,170 $ 27,805 $ 3,635 116 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Fines, forfeitures, and penalties $ 574 $ 630 $ 615 $ (15) Use of money and property 1 5 11 6 Total Revenues 575 635 626 (9) Expenditures: Current: Public assistance Services and supplies 575 903 600 303 Total Expenditures 575 903 600 303 Net change in fund balances - (268) 26 294 Fund balances, beginning 528 528 528 - Fund balances, ending $ 5 28 $ 2 60 $ 5 54 $ 2 94 117 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Use of money and property $ 4 $ 4 $ 18 $ 14 Charges for services 1,439 1,439 756 (683) Other revenues - - 19 19 Total Revenues 1,443 1,443 793 (650) Expenditures: Current: Education Salaries, wages, and benefits 958 845 567 278 Services and supplies 421 582 540 42 Other charges 21 21 21 - Contingencies 45 45 - 45 Total Expenditures 1,445 1,493 1,128 365 Excess (Deficiency) of Revenues Over (Under) Expenditures (2) (50) (335) (285) Other Financing Sources (Uses): Transfers out - - ( 67) ( 67) Total Other Financing Sources (Uses) - - ( 67) ( 67) Net change in fund balances (2) (50) (402) (352) Fund balances, beginning 402 402 402 - Fund balances, ending $ 400 $ 352 $ - $ (352) 118 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Fines, forfeitures, and penalties $ 37 $ 37 $ 27 $ (10) Use of money and property - - 3 3 Total Revenues 37 37 30 (7) Expenditures: Current: Public protection Services and supplies 34 39 36 3 Total Expenditures 34 39 36 3 Net change in fund balances 3 (2) (6) (4) Fund balances, beginning 202 202 202 - Fund balances, ending $ 2 05 $ 2 00 $ 1 96 $ (4) 119 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Use of money and property $ - $ - $ 572 $ 572 Charges for services - - 561 561 Total Revenues - - 1,133 1,133 Expenditures: Current: Public ways and facilities Services and supplies - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over (Under) Expenditures - - 1,133 1,133 Other Financing Sources (Uses): Transfers out (759) (7,106) (559) 6,547 Total Other Financing Sources (Uses) (759) (7,106) (559) 6,547 Net change in fund balances (759) (7,106) 574 7,680 Fund balances, beginning 1 2,166 1 2,166 1 2,166 - Fund balances, ending $ 11,407 $ 5,060 $ 12,740 $ 7,680 120 COUNTY OF SAN LUIS OBISPO Library Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual Comparison For the Year Ended June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Taxes $ 11,736 $ 11,736 $ 12,127 $ 391 Use of money and property 45 45 248 203 Aid from other governments 278 408 357 ( 51) Charges for services 85 85 107 22 Other revenues 361 1,036 478 (558) Total Revenues 1 2,505 1 3,310 1 3,317 7 Expenditures: Current: Education Salaries, wages, and benefits 8,199 8,199 7,848 351 Services and supplies 4,731 5,199 3,877 1,322 Other charges 808 2,240 369 1,871 Capital Outlay - 272 109 163 Debt Service - - 17 ( 17) Contingencies 572 572 - 572 Total Expenditures 1 4,310 1 6,482 1 2,220 4,262 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,805) (3,172) 1,097 4,269 Other Financing Sources (Uses): Transfers in 1,402 1,402 607 (795) Transfers out - - (286) (286) Total Other Financing Sources (Uses) 1,402 1,402 321 (1,081) Net change in fund balances (403) (1,770) 1,418 3,188 Fund balances, beginning 6,170 6,170 6,170 - Fund balances, ending $ 5,767 $ 4,400 $ 7,588 $ 3,188 121 COUNTY OF SAN LUIS OBISPO Parks Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual Comparison For the Year Ended June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Fines, forfeitures, and penalties $ 1 $ 127 $ - $ (127) Use of money and property 54 54 178 124 Aid from other governments 23 313 1,721 1,408 Charges for services 6,366 6,429 6,106 (323) Other revenues 9 9 12 3 Total Revenues 6,453 6,932 8,017 1,085 Expenditures: Current: Recreation and cultural services Salaries, wages, and benefits 3,444 3,194 3,164 30 Services and supplies 2,942 4,280 4,586 (306) Other charges 407 498 132 366 Capital outlay - 3,349 16 3,333 Total Expenditures 6,793 1 1,321 7,898 3,423 Excess (Deficiency) of Revenues Over (Under) Expenditures (340) (4,389) 119 4,508 Other Financing Sources (Uses): Transfers in - 1,492 786 (706) Transfers out ( 21) ( 21) (234) (213) Total Other Financing Sources (Uses) ( 21) 1,471 552 (919) Net change in fund balances (361) (2,918) 671 3,589 Fund balances, beginning 1,803 1,803 1,803 - Fund balances, ending $ 1,442 $ (1,115) $ 2,474 $ 3,589 122 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Use of money and property $ - $ - $ 687 $ 687 Charges for services 1,880 1,880 1,356 (524) Total Revenues 1,880 1,880 2,043 163 Expenditures: Current: Public protection Salaries, wages, and benefits - - - - Services and supplies - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over (Under) Expenditures 1,880 1,880 2,043 163 Other Financing Sources (Uses): Transfers out (1,913) (12,585) (6,960) 5,625 Total Other Financing Sources (Uses) (1,913) (12,585) (6,960) 5,625 Net change in fund balances ( 33) (10,705) (4,917) 5,788 Fund balances, beginning 1 3,862 1 3,862 1 3,862 - Fund balances, ending $ 13,829 $ 3,157 $ 8,945 $ 5,788 123 COUNTY OF SAN LUIS OBISPO Roads Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual Comparison For the Year Ended June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Taxes $ 2 ,105 $ 2 ,105 $ 2 ,267 $ 162 Use of money and property 100 100 818 718 Aid from other governments 2 4,001 7 3,230 3 3,485 (39,745) Charges for services 358 358 460 102 Other revenues - 455 243 (212) Total Revenues 2 6,564 7 6,248 3 7,273 (38,975) Expenditures: Current: Public ways and facilities Services and supplies 2 5,435 4 2,169 4 3,220 (1,051) Other charges 549 1,553 1,642 ( 89) Capital outlay 8,238 8 0,123 - 8 0,123 Debt Service - - 68 ( 68) Total Expenditures 3 4,222 123,845 4 4,930 7 8,915 Excess (Deficiency) of Revenues Over (Under) Expenditures (7,658) (47,597) (7,657) 3 9,940 Other Financing Sources (Uses): Transfers in 6,741 1 2,782 6,541 (6,241) Transfers out (113) (113) (113) - Total Other Financing Sources (Uses) 6,628 1 2,669 6,428 (6,241) Net change in fund balances (1,030) (34,928) (1,229) 3 3,699 Fund balances, beginning 2 0,010 2 0,010 2 0,010 - Fund balances, ending $ 18,980 $ (14,918) $ 18,781 $ 33,699 124 COUNTY OF SAN LUIS OBISPO Solid Waste Management Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual Comparison For the Year Ended June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Use of money and property $ - $ - $ 1 $ 1 Aid from other governments - 401 76 (325) Charges for services 497 497 530 33 Total Revenues 497 898 607 (291) Expenditures: Current: Public protection Services and supplies 1,197 1,490 503 987 Other charges - 162 162 - Total Expenditures 1,197 1,652 665 987 Excess (Deficiency) of Revenues Over (Under) Expenditures (700) (754) ( 58) 696 Other Financing Sources (Uses): Transfers out 700 700 (272) (972) Total Other Financing Sources (Uses) 700 700 (272) (972) Net change in fund balances - ( 54) (330) (276) Fund balances, beginning 330 330 330 - Fund balances, ending $ 330 $ 276 $ - $ (276) 125 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Use of money and property $ 1 $ 1 $ 2 $ 1 Aid from other governments 4 4 - (4) Total Revenues 5 5 2 (3) Expenditures: Current: Public protection Services and supplies 7 7 2 5 Total Expenditures 7 7 2 5 Net change in fund balances (2) (2) - 2 Fund balances, beginning 50 50 50 - Fund balances, ending $ 48 $ 48 $ 50 $ 2 126 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Taxes $ 4 ,522 $ 4 ,522 $ 4 ,881 $ 359 Use of money and property 127 127 807 680 Aid from other governments 458 1,694 319 (1,375) Charges for services 629 629 618 ( 11) Other revenues 15 15 303 288 Total Revenues 5,751 6,987 6,928 ( 59) Expenditures: Current: Public protection Services and supplies 9,464 1 5,604 8,124 7,480 Other charges 321 324 274 50 Capital outlay - 5,891 - 5,891 Total Expenditures 9,785 2 1,819 8,398 1 3,421 Excess (Deficiency) of Revenues Over (Under) Expenditures (4,034) (14,832) (1,470) 1 3,362 Other Financing Sources (Uses): Transfers in 219 719 234 (485) Total Other Financing Sources (Uses) 219 719 234 (485) Net change in fund balances (3,815) (14,113) (1,236) 1 2,877 Fund balances, beginning 1 9,777 1 9,777 1 9,777 - Fund balances, ending $ 15,962 $ 5 ,664 $ 18,541 $ 12,877 127 COUNTY OF SAN LUIS OBISPO Lighting Districts Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual Comparison For the Year Ended June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Taxes $ 48 $ 48 $ 47 $ ( 1) Use of money and property 3 3 22 19 Charges for services 10 10 12 2 Total Revenues 61 61 81 20 Expenditures: Current: Public protection Services and supplies 48 48 39 9 Total Expenditures 48 48 39 9 Net change in fund balances 13 13 42 29 Fund balances, beginning 458 458 458 - Fund balances, ending $ 471 $ 471 $ 500 $ 29 128 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Taxes $ 1 ,221 $ 1 ,221 $ 1 ,285 $ 64 Use of money and property 31 31 134 103 Aid from other governments 4 4 4 - Charges for services 4 4 54 50 Other revenues 1 1 6 5 Total Revenues 1,261 1,261 1,483 222 Expenditures: Current: Public ways and facilities Services and supplies 1,104 1,150 826 324 Total Expenditures 1,104 1,150 826 324 Excess (Deficiency) of Revenues Over (Under) Expenditures 157 111 657 546 Other Financing Sources (Uses): Transfers out (350) (350) (167) 183 Total Other Financing Sources (Uses) (350) (350) (167) 183 Net change in fund balances (193) (239) 490 729 Fund balances, beginning 3,248 3,248 3,248 - Fund balances, ending $ 3 ,055 $ 3 ,009 $ 3 ,738 $ 729 129 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Use of money and property $ - $ - $ 1 $ 1 Charges for services - - 415 415 Total Revenues - - 416 416 Expenditures: Debt Service: Principal payments - - 221 (221) Interest and fiscal charges - - 186 (186) Total Expenditures - - 407 (407) Net change in fund balances - - 9 9 Fund balances, beginning 21 21 21 - Fund balances, ending $ 21 $ 21 $ 30 $ 9 130 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 June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Use of money and property $ 200 $ 200 $ 1 ,008 $ 808 Other revenues 1 4,860 1 4,860 771 (14,089) Total Revenues 1 5,060 1 5,060 1,779 (13,281) Expenditures: Debt Service: Principal payments 3,535 3,535 3,535 - Interest and fiscal charges 7,347 7,347 7,347 - Total Expenditures 1 0,882 1 0,882 1 0,882 - Excess (Deficiency) of Revenues Over (Under) Expenditures 4,178 4,178 (9,103) (13,281) Other Financing Sources (Uses): Transfers in - - 1 4,529 1 4,529 Total Other Financing Sources (Uses) - - 1 4,529 1 4,529 Net change in fund balances 4,178 4,178 5,426 1,248 Fund balances, beginning 2 3,317 2 3,317 2 3,317 - Fund balances, ending $ 27,495 $ 27,495 $ 28,743 $ 1 ,248 131 COUNTY OF SAN LUIS OBISPO Financing Authority Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget to Actual Comparison For the Year Ended June 30, 2024 (in thousands) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Use of money and property $ - $ - $ 3 ,769 $ 3 ,769 Charges for services - - 7,293 7,293 Total Revenues - - 1 1,062 1 1,062 Expenditures: Debt Service: Principal payments - - 2,961 (2,961) Interest and fiscal charges - - 4,334 (4,334) Total Expenditures - - 7,295 (7,295) Excess (Deficiency) of Revenues Over (Under) Expenditures - - 3,767 3,767 Other Financing Sources (Uses): Transfers out - - (5,568) (5,568) Total Other Financing Sources (Uses) - - (5,568) (5,568) Net change in fund balances - - (1,801) (1,801) Fund balances, beginning 7 2,306 7 2,306 7 2,306 - Fund balances, ending $ 72,306 $ 72,306 $ 70,505 $ (1,801) 132 ________________________________________________________________ COMBINING FINANCIAL STATEMENTS NONMAJOR ENTERPRISE FUNDS ________________________________________________________________ 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. 133 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS JUNE 30, 2024 (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 $ 3,296 $ 9,943 $ 1,567 $ 27 $ 4,154 $ 18,987 Accounts receivable, net - 2 92 - 396 490 Inventories - - 94 - - 94 Leases receivable - - 12 - - 12 Due from other governments 37 2 - - - 39 Prepaid items - - 294 - - 294 Deposits with others - - - - 86 86 Total current assets 3 ,333 9,947 2,059 27 4,636 20,002 Noncurrent assets: Restricted cash with fiscal agent - 1 - - - 1 Capital assets: Nondepreciable Land - 2,155 1,333 - 534 4,022 Construction in progress - 2,417 668 - 4,021 7,106 Water rights - - - - - - Other property - 1,968 - - - 1,968 Depreciable Infrastructure, net - 17,710 4 - 1,834 19,548 Structures and improvements, net - 30,416 6 ,569 - 9,128 46,113 Equipment, net - 150 570 - 445 1,165 Other property, net - - - - 496 496 Lease assets, net - - 30 - - 30 SBITA assets, net - - 13 - - 13 Total noncurrent assets - 54,817 9 ,187 - 16,458 80,462 Total assets 3 ,333 64,764 11,246 27 21,094 100,464 Deferred Outflows of Resources Deferred pensions - - 1,155 - - 1,155 Deferred OPEB - - 80 - - 80 Total deferred outflows of resources - - 1,235 - - 1,235 Liabilities Current liabilities: Accounts payable 17 100 266 - 445 828 Salaries and benefits payable - - 57 - - 57 Deposits from others - 389 55 - 152 596 Interest payable - 225 8 - 22 255 Unearned revenue - 110 - - 23 133 Accrued vacation and sick leave - current - - 144 - - 144 Lease liability -current - - 26 - - 26 SBITA liability - current - - 14 - - 14 Notes and bonds payable -current - 2,706 386 - 110 3,202 Total current liabilities 17 3,530 956 - 752 5,255 Noncurrent liabilities: Advances from other funds - - 120 - 1,365 1,485 Accrued vacation and sick leave - - 125 - - 125 Lease liability - - 4 - - 4 Notes and bonds payable - 17,165 875 - 5,134 23,174 Net OPEB liability - - 137 - - 137 Net pension liability - - 4,382 - - 4,382 Total noncurrent liabilities - 17,165 5,643 - 6,499 29,307 Total liabilities 17 20,695 6,599 - 7,251 34,562 Deferred Inflows of Resources Deferred pensions - - 7 - - 7 Deferred OPEB - - 53 - - 53 Bond Refunding - - 126 - - 126 Lease revenue - - 12 - - 12 Total deferred inflows of resources - - 198 - - 198 Net Position Net investment in capital assets - 34,938 7,661 - 11,006 53,605 Unrestricted 3 ,316 9,131 (1,977) 27 2,837 13,334 Total net position $ 3,316 $ 44,069 $ 5,684 $ 27 $ 13,843 $ 66,939 134 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED JUNE 30, 2024 (IN THOUSANDS) General Flood Control Zone - Lopez County Salinas Dam Flood Control Golf Lopez Park Service Areas Total Operating revenues Charges for services $ 1,985 $ 7,379 $ 5,327 $ - $ 5,467 $ 20,158 Other revenues 7 - 4 - 36 47 Total operating revenues 1,992 7,379 5,331 - 5,503 20,205 Operating expenses Salaries and benefits - - 2,869 - - 2,869 Services and supplies 1,814 5 ,832 1,937 - 5,669 15,252 Other charges - 3 - - - 3 Depreciation - 1,427 469 - 551 2 ,447 Amortization - - 101 - - 101 Countywide cost allocation 28 107 90 - 102 327 Total operating expenses 1,842 7,369 5,466 - 6,322 20,999 Operating income (loss) 150 10 (135) - (819) (794) Nonoperating revenues (expenses) Property taxes - 1,678 - - 670 2,348 Investment income (expense) 144 530 76 2 211 963 Interest expense - (753) (18) - (141) (912) Aid from governmental agencies 37 8 - - 3 48 Total nonoperating revenues (expenses) 181 1,463 58 2 743 2,447 Income (loss) before contributions and transfers 331 1,473 (77) 2 (76) 1,653 Transfers in - - 12 - 1,699 1,711 Transfers out - - (64) - (3) (67) Change in net position 331 1,473 (129) 2 1,620 3,297 Net position - beginning 2,985 42,596 5,813 25 12,223 63,642 Net position - ending $ 3,316 $ 44,069 $ 5,684 $ 27 $ 13,843 $ 66,939 135 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED JUNE 30, 2024 (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 $ 1,993 $ 7,015 $ 5,275 $ - $ 5,505 $ 19,788 Payments for goods and services (1,874) (6,108) (1,782) - (5,421) (15,185) Payments to employees for services - - (2,445) - - (2,445) Net cash provided (used) by operating activities 119 907 1,048 - 84 2,158 Cash Flows from Noncapital Financing Activities Property tax proceeds - 1,678 - - 670 2,348 Grants and subsidies from other governmental agencies - 6 - - 2 8 Advances from other funds - - - - 584 584 Transfers from other funds - - 12 - 1,699 1,711 Transfers to other funds - - (64) - (3) (67) Net cash provided (used) by noncapital financing activities - 1,684 (52) - 2,952 4,584 Cash Flows from Capital and Related Financing Activities Purchases and construction of capital assets - (1,842) (730) - (3,208) (5,780) Advances to other funds - - - 20 - 20 Principal paid on capital debt - (2,604) (402) (20) (107) (3,133) Interest paid on capital debt - (837) (34) - (141) (1,012) Net cash provided (used) by capital and related financing activities - (5,283) (1,166) - (3,456) (9,905) Cash Flows from Investing Activities Interest received 144 530 76 2 211 963 Net cash provided (used) by investing activities 144 530 76 2 211 963 Net increase (decrease) in cash and cash equivalents 263 (2,162) (94) 2 (209) (2,200) Cash and cash equivalents at beginning of year 3,033 12,106 1,661 25 4,363 21,188 Cash and cash equivalents at end of year $ 3,296 $ 9,944 $ 1,567 $ 27 $ 4,154 $ 18,988 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating income (loss) $ 1 50 $ 10 $ (135) $ - $ (819) $ (794) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization expense - 1,427 570 - 551 2,548 Changes in assets, deferred outflows of resources, liabilities, and deferred inflows of resources: (Increase) decrease in: Receivables, net 32 10 - (15) 27 Inventory - - (11) - - (11) Prepaid items - - 130 - - 130 Deferred outflows - pensions - - 42 - - 42 Deferred outflows - OPEB - - 13 - - 13 Leases - - (74) - - (74) Increase (decrease) in: Accounts payable (31) (234) 129 - 350 214 Deposits from others - 69 8 - 3 80 Salaries and benefits payable - - 44 - - 44 Deferred inflows - pensions - - 3 - - 3 Deferred inflows - OPEB - - 3 - - 3 Net OPEB liability - - 7 - - 7 Net pension liability - - 309 - - 309 Unearned revenue - (397) - - 14 (383) Total adjustments (31) 897 1,183 - 903 2,952 Net cash provided (used) by operating activities $ 1 19 $ 9 07 $ 1,048 $ - $ 84 $ 2,158 136 ________________________________________________________________ COMBINING FINANCIAL STATEMENTS INTERNAL SERVICE FUNDS ________________________________________________________________ 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: Garage 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. 137 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2024 (IN THOUSANDS) Combined Public Insurance Garage Works (5 Funds) Total Assets Current assets: Cash and cash equivalents $ 8,118 $ 21,761 $ 18,823 $ 48,702 Accounts receivable, net 5 19 488 512 Inventories 16 878 - 894 Prepaid items - 10 - 10 Total current assets 8,139 22,668 19,311 50,118 Noncurrent assets: Capital assets: Structures and improvements, net 224 182 - 406 Equipment, net 6,352 9,430 - 15,782 Lease assets, net - 637 - 637 SBITA assets, net - - 30 30 Total noncurrent assets 6,576 10,249 30 16,855 Total assets 14,715 32,917 19,341 66,973 Deferred Outflows of Resources Deferred pensions 838 20,628 - 21,466 Deferred OPEB 67 1,300 - 1,367 Total deferred outflows of resources 905 21,928 - 22,833 Liabilities Current liabilities: Accounts payable 419 506 569 1,494 Salaries and benefits payable 37 809 8 854 Deposits from others - 5,256 - 5,256 Self-insurance liability - current - - 5,309 5,309 Lease liability - current - 121 - 121 SBITA liability -current - - 13 13 Accrued vacation and sick leave - current 114 2,498 - 2,612 Total current liabilities 570 9,190 5,899 15,659 Noncurrent liabilities: Self-insurance liability - - 20,050 20,050 Lease liability - 555 - 555 SBITA liability - - 18 18 Accrued vacation and sick leave 56 970 - 1,026 Net OPEB liability 115 2,227 - 2,342 Net pension liability 3,180 78,274 - 81,454 Total noncurrent liabilities 3,351 82,026 20,068 105,445 Total liabilities 3,921 91,216 25,967 121,104 Deferred Inflows of Resources Deferred pensions 5 134 - 139 Deferred OPEB 44 856 - 900 Total deferred inflows of resources 49 990 - 1,039 Net Position Net investment in capital assets 6,467 9,572 - 16,039 Unrestricted 5,183 (46,933) (6,626) (48,376) Total net position $ 11,650 $ (37,361) $ (6,626) $ (32,337) 138 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2024 (IN THOUSANDS) Combined Public Insurance Garage Works (5 Funds) Total Operating revenues Charges for services $ 9,349 $ 51,900 $ 18,862 $ 80,111 Other revenues 17 167 - 184 Total operating revenues 9,366 52,067 18,862 80,295 Operating expenses Salaries and benefits 1,948 40,782 532 43,262 Services and supplies 4,625 9,320 14,135 28,080 Insurance benefit payments - - 8,273 8,273 Depreciation 1,604 1,104 - 2,708 Amortization - 138 13 151 Countywide cost allocation 150 163 318 631 Total operating expenses 8,327 51,507 23,271 83,105 Operating income (loss) 1,039 560 (4,409) (2,810) Nonoperating revenues (expenses) Investment income (expense) 322 695 930 1,947 Interest expense - (5) - (5) Sale of capital assets 447 53 - 500 Total nonoperating revenues (expenses) 769 743 930 2,442 Income (loss) before capital contributions and transfers 1,808 1,303 (3,479) (368) Transfers in - 42 9 51 Transfers out (56) (1,342) - (1,398) Change in net position 1,752 3 (3,470) (1,715) Net position - beginning 9,898 (37,364) (3,156) (30,622) Net position - ending $ 11,650 $ (37,361) $ (6,626) $ (32,337) 139 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30, 2024 (IN THOUSANDS) Combined Public Insurance Garage Works (5 Funds) Total Cash Flows From Operating Activities Receipts from interfund billings $ 9,360 $ 52,066 $ 18,375 $ 79,801 Payments for goods and services (5,100) (9,937) (5,649) (20,686) Payments to employees for services (1,614) (36,580) (561) (38,755) Payments for insurance benefits - - (6,414) (6,414) Payments for premiums - - (8,547) (8,547) Net cash provided (used) by operating activities 2,646 5,549 (2,796) 5,399 Cash Flows from Noncapital Financing Activities Transfers from other funds - 42 9 51 Transfers to other funds (56) (1,342) - (1,398) Net cash provided (used) by noncapital financing activities (56) (1,300) 9 (1,347) Cash Flows from Capital and Related Financing Activities Purchases and construction of capital assets (2,689) (2,593) (12) (5,294) Proceeds from sale of capital assets 447 53 - 500 Principal paid on capital debt - (121) - (121) Interest paid on capital debt - (5) - (5) Net cash provided (used) by capital and related financing activities (2,242) (2,666) (12) (4,920) Cash Flows from Investing Activities Interest received 322 695 930 1,947 Net cash provided (used) by investing activities 322 695 930 1,947 Net increase (decrease) in cash and cash equivalents 670 2,278 (1,869) 1,079 Cash and cash equivalents at beginning of year 7,448 19,483 20,692 47,623 Cash and cash equivalents at end of year $ 8,118 $ 21,761 $ 18,823 $ 48,702 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating income (loss) $ 1,039 $ 560 $ (4,409) $ (2,810) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization expense 1,604 1,242 13 2,859 Changes in assets, deferred outflows of resources, liabilities, and deferred inflows of resources: (Increase) decrease in: Receivables, net (5) 1 (488) (492) Inventory (1) (153) - (154) Deferred outflows - pensions 12 1,909 - 1,921 Deferred outflows - OPEB 21 371 - 392 Increase (decrease) in: Accounts payable (325) (512) 258 (579) Deposits from others - 207 - 207 Salaries and benefits payable 23 443 (28) 438 Deferred inflows - pensions 2 50 - 52 Deferred inflows - OPEB (4) (41) - (45) Net OPEB liability (10) (128) - (138) Net pension liability 290 1,600 - 1,890 Self-insurance liability - - 1,858 1,858 Total adjustments 1,607 4,989 1,613 8,209 Net cash provided (used) by operating activities $ 2,646 $ 5,549 $ (2,796) $ 5,399 140 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS - INSURANCE JUNE 30, 2024 (IN THOUSANDS) Workers' Protected Unemployment Dental Compensation Self-Insurance Insurance Insurance OPEB Total Assets Current assets: Cash and cash equivalents $ 14,990 $ 2,269 $ 633 $ 578 $ 353 $ 18,823 Accounts receivable 106 382 - - - 488 Total current assets 15,096 2,651 633 578 353 19,311 Noncurrent assets: SBITA assets, net - - - - 30 30 Total noncurrent assets - - - - 30 30 Total assets 15,096 2,651 633 578 383 19,341 Liabilities Current liabilities: Accounts payable 269 300 - - - 569 Salaries and benefits payable 8 - - - - 8 Self-insurance liability 4,059 1,250 - - - 5,309 SBITA liability - - - - 13 13 Total current liabilities 4,336 1,550 - - 13 5,899 Noncurrent liabilities: Self-insurance liability 16,424 3,626 - - - 20,050 SBITA liability - - - - 18 18 Total noncurrent liabilities 16,424 3,626 - - 18 20,068 Total liabilities 20,760 5,176 - - 31 25,967 Net Position Unrestricted (5,664) (2,525) 633 578 352 (6,626) Total net position $ (5,664) $ (2,525) $ 633 $ 578 $ 352 $ (6,626) 141 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, 2024 (IN THOUSANDS) Workers' Protected Unemployment Dental Compensation Self-Insurance Insurance Insurance OPEB Total Operating revenues Charges for services $ 8,126 $ 5,800 $ 514 $ 1,835 $ 2,587 $ 18,862 Total operating revenues 8,126 5,800 514 1,835 2,587 18,862 Operating expenses Salaries and benefits 532 - - - - 532 Services and supplies 4,650 7,268 105 236 1,876 14,135 Insurance benefit payments 5,242 424 279 1,664 664 8,273 Amortization - - - - 13 13 Countywide cost allocation 171 147 - - - 318 Total operating expenses 10,595 7,839 384 1,900 2,553 23,271 Operating income (loss) (2,469) (2,039) 130 (65) 34 (4,409) Nonoperating revenues (expenses) Investment income (expense) 660 205 24 29 12 930 Total nonoperating revenues (expenses) 660 205 24 29 12 930 Income (loss) before transfers (1,809) (1,834) 154 (36) 46 (3,479) Transfers in 9 - - - - 9 Change in net position (1,800) (1,834) 154 (36) 46 (3,470) Net position - beginning (3,864) (691) 479 614 306 (3,156) Net position - ending $ (5,664) $ (2,525) $ 633 $ 578 $ 352 $ (6,626) 142 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS - INSURANCE FOR THE YEAR ENDED JUNE 30, 2024 (IN THOUSANDS) Workers' Protected Unemployment Dental Compensation Self-Insurance Insurance Insurance OPEB Total Cash Flows From Operating Activities Receipts from interfund billings $ 8,020 $ 5,418 $ 514 $ 1,834 $ 2,589 $ 18,375 Payments for goods and services (3,145) (2,110) (106) (276) (12) (5,649) Payments to employees for services (561) - - - - (561) Payments for insurance benefits (3,030) (778) (278) (1,664) (664) (6,414) Payments for premiums (1,675) (5,006) - - (1,866) (8,547) Net cash provided (used) by operating activities (391) (2,476) 130 (106) 47 (2,796) Cash Flows from Noncapital Financing Activities Transfers from other funds 9 - 9 Net cash provided (used) by noncapital financing activities 9 - - - - 9 Cash Flows from Capital and Related Financing Activities Purchases and construction of capital assets - - - - (12) (12) Net cash provided (used) by capital and related financing activities - - - - (12) (12) Cash Flows from Investing Activities Interest received (paid) 660 205 24 29 12 930 Net cash provided (used) by investing activities 660 205 24 29 12 930 Net increase (decrease) in cash and cash equivalents 278 (2,271) 154 (77) 47 (1,869) Cash and cash equivalents at beginning of year 14,712 4,540 479 655 306 20,692 Cash and cash equivalents at end of year $ 14,990 $ 2,269 $ 633 $ 578 $ 353 $ 18,823 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Operating income (loss) $ (2,469) $ (2,039) $ 130 $ (65) $ 34 $ (4,409) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization expense - - - - 13 13 Changes in assets and liabilities: (Increase) decrease in: Receivables, net (106) (382) - - - (488) Increase (decrease) in: Accounts payable - 299 - (41) - 258 Salaries and benefits payable (28) - - - - (28) Self-insurance liability 2,212 (354) - - - 1,858 Total adjustments 2,078 (437) - (41) 13 1,613 Net cash provided (used) by operating activities $ (391) $ (2,476) $ 130 $ (106) $ 47 $ (2,796) 143 ________________________________________________________________ COMBINING FINANCIAL STATEMENTS FIDUCIARY FUNDS ________________________________________________________________ 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. Clearing 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 custodial categories. 144 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS JUNE 30, 2024 (IN THOUSANDS) Clearing and 1915 Act Other Revolving Funds Service Funds Custodial Funds (96 Funds) (5 Funds) (26 Funds) Total ASSETS Cash and cash equivalents $ 116,847 $ 127 $ 21,132 $ 138,106 Taxes for other governments 601 - - 601 Other assets 7 - 4,262 4,269 Capital assets, net - - 15 15 Total assets $ 117,455 $ 127 $ 25,409 $ 142,991 LIABILITIES Other current liabilities $ 79,727 $ - $ 9,779 $ 89,506 Other long-term liabilities 9 - - 9 Total liabilities $ 7 9,736 $ - $ 9,779 $ 89,515 NET POSITION Restricted for: Individuals, organizations, and other governments $ 3 7,719 $ 127 $ 15,630 $ 53,476 145 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS FOR THE YEAR ENDED JUNE 30, 2024 (IN THOUSANDS) Clearing and 1915 Act Other Revolving Funds Service Funds Custodial Funds (96 Funds) (5 Funds) (26 Funds) Total ADDITIONS Interest $ 3,254 $ 3 $ 224 $ 3,481 Property taxes collected for other governments 252,300 35 - 252,335 Sales taxes collected for other governments - - 17,443 17,443 Other Income 18,137 - 6,216 24,353 Total additions 273,691 38 23,883 297,612 DEDUCTIONS Administrative expenses 27 - 1 28 Interest expenses 26,969 4 - 26,973 Payments to other local governments 1 ,697 - - 1,697 Property taxes distributed to other governments 231,211 42 22,492 253,745 Total deductions 2 59,904 4 6 22,493 282,443 Change in net position 1 3,787 ( 8) 1,390 15,169 Net position - beginning 23,932 135 14,240 38,307 Net position - ending $ 3 7,719 $ 1 27 $ 15,630 $ 53,476 146 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF FIDUCIARY NET POSITION INVESTMENT TRUST FUNDS JUNE 30, 2024 (IN THOUSANDS) School Special Other Districts Districts Courts Local Boards (26 Funds) (25 Funds) (6 Funds) (17 Funds) Total ASSETS Cash and cash equivalents $ 693,283 $ 22,796 $ 1,643 $ 44,649 $ 762,371 Total assets $ 693,283 $ 22,796 $ 1,643 $ 44,649 $ 762,371 NET POSITION Net position held in trust for pool participants $ 693,283 $ 22,796 $ 1,643 $ 44,649 $ 762,371 Total Net Position $ 693,283 $ 22,796 $ 1,643 $ 44,649 $ 762,371 147 COUNTY OF SAN LUIS OBISPO COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION INVESTMENT TRUST FUNDS JUNE 30, 2024 (IN THOUSANDS) School Special Other Districts Districts Courts Local Boards (26 Funds) (25 Funds) (6 Funds) (17 Funds) Total Additions Contributions to pooled investments $ 1,371,550 $ 13,011 $ 14,903 $ 58,278 $ 1,457,742 Interest 17,361 822 - 844 19,027 Total additions 1,388,911 13,833 14,903 59,122 1,476,769 Deductions Distributions from investment pool 1,361,688 16,395 14,569 49,076 1,441,728 Total deductions 1,361,688 16,395 14,569 49,076 1,441,728 Change in net position 27,223 (2,562) 334 10,046 35,041 Net position - beginning 666,060 25,358 1,309 34,603 727,330 Net position - ending $ 693,283 $ 22,796 $ 1,643 $ 44,649 $ 762,371 148 ________________________________________________________________ GENERAL FUND DETAIL BUDGETARY COMPARISON SCHEDULES ________________________________________________________________ COUNTY OF SAN LUIS OBISPO General Fund Detail Schedule of Expenditures Budget to Actual Comparison (in thousands) For the Year Ended June 30, 2024 Original Final Variance with Description Budget Budget Actual Final Budget General Government - Expenditures Legislative and Administrative Administrative Office: Salaries, wages, and benefits $ 2,943 $ 2,927 $ 2,455 $ 472 Services and supplies 747 5,933 2,610 3,323 Other charges - 4,323 2,722 1,601 Expenditure transfers and reimbursements (120) (120) (122) 2 Total 3,570 13,063 7,665 5,398 Board of Supervisors: Salaries, wages, and benefits 1,762 1,764 1,694 70 Services and supplies 347 451 318 133 Expenditure transfers and reimbursements (63) (63) (63) - Total 2,046 2,152 1,949 203 Clerk/Recorder: Salaries, wages, and benefits 3,109 2,979 2,829 150 Services and supplies 1,407 1,549 1,464 85 Expenditure transfers and reimbursements - - (2) 2 Total 4,516 4,528 4,291 237 Communications & Outreach: Salaries, wages, and benefits 277 277 253 24 Services and supplies 59 59 35 24 Expenditure transfers and reimbursements (100) (100) (125) 25 Total 236 236 163 73 Total Legislative and Administrative 10,368 19,979 14,068 5,911 Finance Assessor: Salaries, wages, and benefits 11,654 11,654 10,947 707 Services and supplies 1,176 1,176 1,019 157 Capital outlay - leases/SBITAs - - 29 (29) Total 12,830 12,830 11,995 835 Auditor-Controller-Treasurer-Tax Collector Public Administrator: Salaries, wages, and benefits 9,735 9,735 8,882 853 Services and supplies 754 916 621 295 Expenditure transfers and reimbursements (18) (18) (29) 11 Total 10,471 10,633 9,474 1,159 Total Finance 23,301 23,463 21,469 1,994 continued 149 COUNTY OF SAN LUIS OBISPO General Fund Detail Schedule of Expenditures Budget to Actual Comparison (in thousands) For the Year Ended June 30, 2024 Original Final Variance with Description Budget Budget Actual Final Budget General Government - Expenditures (continued) Counsel County Counsel: Salaries, wages, and benefits $ 4,759 $ 4,759 $ 4,411 $ 348 Capital outlay 8 8 8 - Services and supplies 813 1,977 505 1,472 Total Counsel 5,580 6,744 4,924 1,820 Personnel Personnel: Salaries, wages, and benefits 7,001 6,985 6,613 372 Services and supplies 3,167 3,381 3,268 113 Expenditure transfers and reimbursement (1,650) (1,650) (1,532) (118) Total Personnel 8 ,518 8,716 8,349 367 Talent Development: Salaries, wages, and benefits 264 285 274 11 Services and supplies 448 459 457 2 Expenditure transfers and reimbursement ( 6) ( 6) - (6) Total Talent Development 706 738 731 7 Total Personnel 9 ,224 9,454 9,080 374 Property Management Facilities Management: Salaries, wages, and benefits 5 ,433 5,546 5,345 201 Services and supplies 4,605 4,858 4,729 129 Expenditure transfers and reimbursements (2,067) (2,091) (2,311) 220 Total 7 ,971 8,313 7,763 550 Maintenance Projects: Services and supplies 3,681 13,026 3,147 9,879 Expenditure transfers and reimbursements - (124) (21) (103) Total 3 ,681 12,902 3,126 9,776 Central Services Salaries, wages, and benefits 2 ,515 2,515 2,377 138 Services and supplies 3,566 3,595 1,245 2,350 Other charges 128 128 121 7 Expenditure transfers and reimbursements (587) (587) (806) 219 Total 5 ,622 5,651 2,937 2,714 Total Property Management 17,274 26,866 13,826 13,040 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, 2024 General Government - Expenditures (continued) Other General Information Technology: Salaries, wages, and benefits $ 15,807 $ 16,028 $ 15,397 $ 631 Services and supplies 6,820 7,213 4,296 2,917 Other charges - 2,742 190 2,552 Capital outlay - - 65 (65) Expenditure transfers and reimbursements (3,956) (3,956) (3,855) (101) Total 18,671 22,027 16,093 5,934 Non-Department Financing Uses: Services and supplies - 907 - 907 Expenditure transfers and reimbursements (18,081) (18,081) (18,111) 30 Total (18,081) (17,174) (18,111) 937 Contributions to Other Agencies: Services and supplies 1,707 1,788 1,747 41 Total 1,707 1,788 1,747 41 Non-Department Other: Services and supplies 603 683 398 285 Total 603 683 398 285 Total Other General 2,900 7,324 127 7,197 Total General Government 68,647 93,830 63,494 30,336 Public Protection - Expenditures Judicial Court Operations Fund: Services and supplies -- -- 215 (215) Other charges 2 ,527 2,527 2,457 70 Total 2,527 2,527 2,672 (145) District Attorney: Salaries, wages, and benefits 21,216 20,966 19,557 1,409 Services and supplies 2,816 3,202 2,925 277 Other charges 316 486 338 148 Capital outlay - 21 516 (495) Expenditure transfers and reimbursements (26) (26) (1) (25) Total 24,322 24,649 23,335 1,314 Child Support Services: Salaries, wages, and benefits 4 ,410 4,410 3,651 759 Services and supplies 955 955 548 407 Total 5 ,365 5,365 4,199 1,166 Grand Jury: Salaries, wages, and benefits 44 44 21 23 Services and supplies 89 90 83 7 Expenditure transfers and reimbursements ( 8) ( 8) (7) (1) Total 125 126 97 29 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, 2024 Public Protection - Expenditures (continued) Judicial (continued) Public Defender: Services and supplies $ 8,665 $ 9,029 $ 9,164 $ (135) Total 8,665 9,029 9,164 (135) Total Judicial 4 1,004 4 1,696 3 9,467 2,229 Police Protection Sheriff-Coroner: Salaries, wages, and benefits 85,819 89,461 86,445 3,016 Services and supplies 18,679 20,637 18,368 2,269 Other charges - 513 162 351 Capital outlay 507 2,275 543 1,732 Expenditure transfers and reimbursements (1,597) (3,086) (2,621) (465) Total Police Protection 103,408 109,800 102,897 6,903 Detention and Correction Probation Department: Salaries, wages, and benefits 24,427 24,551 22,158 2,393 Services and supplies 6,736 6,794 6,069 725 Other charges 119 920 123 797 Capital outlay 41 46 37 9 Expenditure transfers and reimbursements (277) (440) (440) - Total Detention and Correction 31,046 31,871 27,947 3,924 Fire Protection County Fire: Services and supplies 30,032 30,510 29,144 1,366 Capital outlay - 6,267 4,437 1,830 Expenditure transfers and reimbursements ( 8) ( 8) (5) (3) Total Fire Protection 30,024 36,769 33,576 3,193 Protective Inspection Agricultural Commissioner: Salaries, wages, and benefits 7 ,202 7,154 6,760 394 Services and supplies 1,040 1,088 1,032 56 Expenditure transfers and reimbursements ( 2) ( 2) (2) - Total Protective Inspection 8,240 8,240 7,790 450 Other Protection Animal Services: Salaries, wages, and benefits 2 ,735 2,539 2,247 292 Services and supplies 1,166 1,384 1,361 23 Capital outlay - 31 31 - Total 3 ,901 3,954 3,639 315 continued 152 COUNTY OF SAN LUIS OBISPO General Fund Detail Schedule of Expenditures Budget to Actual Comparison (in thousands) For the Year Ended June 30, 2024 Public Protection - Expenditures (continued) Other Protection (continued) Emergency Services: Salaries, wages, and benefits $ 1,330 $ 1,531 $ 1,308 $ 223 Services and supplies 848 1,163 900 263 Other charges 350 517 954 (437) Capital outlay - 464 60 404 Total 2,528 3,675 3,222 453 Planning Department: Salaries, wages, and benefits 17,469 17,469 14,958 2,511 Services and supplies 2,931 6,775 2,919 3,856 Other Charges 336 362 25 337 Expenditure transfers and reimbursements (138) (138) (113) (25) Total 20,598 24,468 17,789 6,679 Waste Management: Services and supplies 1,810 1,970 1,744 226 Total 1,810 1,970 1,744 226 Total Other Protection 28,837 34,067 26,394 7,673 Total Public Protection 242,559 262,443 238,071 24,372 Public Ways and Facilities - Expenditures Public Works: Services and supplies 4,324 5,179 2,803 2,376 Other charges - 321 6 315 Total 4 ,324 5,500 2,809 2,691 Groundwater Sustainability Salaries, wages, and benefits 252 252 252 - Services and supplies 1,403 9,509 4,949 4,560 Total 1 ,655 9,761 5,201 4,560 Total Public Ways and Facilities 5,979 15,261 8,010 7,251 Health and Sanitation - Expenditures Health Public Health: Salaries, wages, and benefits 36,192 37,032 31,076 5,956 Services and supplies 10,527 15,640 9,637 6,003 Other charges 875 7,769 3,441 4,328 Capital outlay - 61 406 (345) Expenditure transfers and reimbursements (5,332) (5,486) (5,452) (34) Total 42,262 55,016 39,108 15,908 continued 153 COUNTY OF SAN LUIS OBISPO General Fund Detail Schedule of Expenditures Budget to Actual Comparison (in thousands) For the Year Ended June 30, 2024 Health and Sanitation - Expenditures (continued) Health (continued) Behavioral Health: Salaries, wages, and benefits $ 47,175 $ 43,300 $ 38,720 $ 4,580 Services and supplies 59,576 72,309 63,821 8,488 Other charges 2 ,070 2,952 2,675 277 Expenditure transfers and reimbursements (1,998) (1,998) (1,919) (79) Total 106,823 116,563 103,297 13,266 Total Health 149,085 171,579 142,405 29,174 Total Health and Sanitation 149,085 171,579 142,405 29,174 Public Assistance - Expenditures Administration Department of Social Services: Salaries, wages, and benefits 67,377 67,713 64,410 3,303 Services and supplies 22,914 24,257 23,016 1,241 Other charges 12,098 13,591 11,460 2,131 Capital outlay 25 247 123 124 Expenditure transfers and reimbursements (85) (85) (336) 251 Total Administration 102,329 105,723 98,673 7,050 Aid Programs Aid Foster Care Non-Fed: Services and supplies 92 92 92 - Other charges 28,437 28,798 27,336 1,462 Expenditure transfers and reimbursement - - (134) 134 Total 28,529 28,890 27,294 1,596 Calworks Assistance: Other charges 14,062 14,670 14,669 1 Total 14,062 14,670 14,669 1 Total Aid Programs 42,591 43,560 41,963 1,597 General Relief General Relief: Other charges 2 ,033 2,051 2,050 1 Total General Relief 2 ,033 2,051 2,050 1 continued 154 COUNTY OF SAN LUIS OBISPO General Fund Detail Schedule of Expenditures Budget to Actual Comparison (in thousands) For the Year Ended June 30, 2024 Public Assistance - Expenditures (continued) Veterans Service Veterans Service: Salaries, wages, and benefits $ 1,001 $ 1,001 $ 1,043 $ (42) Services and supplies 121 131 106 25 Expenditure transfers and reimbursements - - (35) 35 Total Veterans Service 1,122 1,132 1,114 18 Other Assistance Law Enforcement Med Care: Services and supplies 11,756 13,600 12,752 848 Expenditure transfers and reimbursements (242) (242) (242) - Total Other Assistance 11,514 13,358 12,510 848 Total Public Assistance 159,589 165,824 156,310 9,514 Education - Expenditures Agricultural Education UC Cooperative Extension Salaries, wages, and benefits 567 567 534 33 Services and supplies 97 112 110 2 Total Agricultural Education 664 679 644 35 Total Education 664 679 644 35 Recreation and Culture - Expenditures Community Parks Salaries, wages, and benefits 3,794 3,681 3,573 108 Services and supplies 2,363 2,859 2,794 65 Capital outlay 34 5,381 14 5,367 Other Charges 114 204 145 59 Expenditure transfers and reimbursements (88) (88) (127) 39 Total Community Parks 6,217 12,037 6,399 5,638 Total Recreation and Culture 6,217 12,037 6,399 5,638 Debt Service Debt service: principal - - 7,258 (7,258) Debt service: interest - - 867 (867) Total Debt Service - - 8,125 (8,125) Total General Fund - Expenditures 632,740 721,653 623,458 98,195 (Before Contingencies) continued 155 COUNTY OF SAN LUIS OBISPO General Fund Detail Schedule of Expenditures Budget to Actual Comparison (in thousands) For the Year Ended June 30, 2024 Contingencies Appropriation for Contingencies Contingencies - General Fund: Appropriation for contingency $ 33,499 $ 31,716 $ - $ 31,716 Total 33,499 31,716 - 31,716 Total Appropriation for Contingency 33,499 31,716 - 31,716 Total Contingency 33,499 31,716 - 31,716 Total General Fund Expenditures $ 6 66,239 $ 753,369 $ 623,458 $ 129,911 Explanation of Differences between Budgetary Outflows and GAAP Expenditures Uses/outflows of resources Actual amounts (budgetary basis) from the Budget to Actual Comparison Schedule $ 6 23,458 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 14,798 Total expenditures as reported on the Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds $ 6 38,256 156 ________________________________________________________________ STATISTICAL SECTION ________________________________________________________________ COUNTY OF SAN LUIS OBISPO Statistical Section This part of the County of San Luis Obispo’s (County) annual comprehensive 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 .…………… 158 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 sales taxes..……………………………………………………..………………………………………………… 163 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 ..………………………………………..………………………… 168 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 ………………………………………………………………….. 171 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 ………………………………………………………………… 173 157 County of San Luis Obispo Net Position by Component Last Ten Fiscal Years (In Thousands) (UNAUDITED) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Governmental Activities Net investment in capital assets $ 1,130,241 $ 1,168,573 $ 1,178,967 $ 1,185,073 $ 1,188,830 $ 1,202,709 $ 1,210,972 $ 1,216,907 $ 1,229,892 $ 1,259,302 Restricted 3 7,722 41,230 64,822 29,836 41,281 66,655 104,024 98,489 173,086 177,598 Unrestricted ( 150,074) (170,962) (226,970) (217,606) (220,206) (286,622) (248,517) (193,229) (297,796) (290,718) Total governmental activities net position $ 1,017,889 $ 1,038,841 $ 1,016,819 $ 997,303 $ 1,009,905 $ 982,742 $ 1,066,479 $ 1,122,167 $ 1,105,182 $ 1,146,182 Business-Type Activities Net investment in capital assets $ 213,455 $ 237,157 $ 270,246 $ 283,410 $ 285,888 $ 288,781 $ 283,512 $ 296,939 $ 293,062 $ 307,522 Unrestricted 9 7,173 93,158 85,316 73,113 83,039 94,335 110,255 118,114 127,391 126,774 Total business-Type activities net position $ 310,628 $ 330,315 $ 355,562 $ 356,523 $ 368,927 $ 383,116 $ 393,767 $ 415,053 $ 420,453 $ 434,296 Total Primary Government Net investment in capital assets $ 1,343,696 $ 1,405,730 $ 1,449,213 $ 1,468,483 $ 1,474,718 $ 1,491,490 $ 1,494,484 $ 1,513,846 $ 1,522,954 $ 1,566,824 Restricted 3 7,722 41,230 64,822 29,836 41,281 66,655 104,024 98,489 173,086 177,598 Unrestricted (52,901) (77,804) (141,654) (144,493) (137,167) (192,287) (138,262) (75,115) (170,405) (163,944) Total primary government net position $ 1,328,517 $ 1,369,156 $ 1,372,381 $ 1,353,826 $ 1,378,832 $ 1,365,858 $ 1,460,246 $ 1,537,220 $ 1,525,635 $ 1,580,478 Note: With the implementation of GASB Statement No. 68, which required the presentation of the County's net pension obligation, Unrestricted Net Position became negative. Source: Statement of Net Position 158 County of San Luis Obispo Changes in Net Position Last Ten Fiscal Years (In Thousands) (UNAUDITED) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Program Expenses Governmental Activities General government $ 45,598 $ 53,282 $ 56,390 $ 56,858 $ 54,434 $ 53,926 $ 55,612 $ 54,592 $ 37,088 $ 67,933 Public protection 162,432 170,134 187,255 183,814 213,809 241,749 204,861 204,993 254,728 257,497 Public ways and facilities 34,136 33,418 32,098 41,606 34,202 33,199 36,017 35,995 55,375 50,230 Health and sanitation 78,137 88,326 99,150 103,822 119,259 113,463 121,358 132,713 152,565 174,990 Public assistance 110,470 118,089 125,102 122,753 131,432 132,868 134,476 132,751 201,741 168,272 Education 9,457 11,934 12,787 12,754 12,698 14,322 14,213 11,930 15,256 13,756 Recreation and cultural services 9,755 8,702 10,385 8,927 11,891 11,501 10,497 12,310 13,754 14,202 Interest on long term debt 5,124 4,602 4,555 11,840 1,468 7,057 9,645 7,947 11,299 12,529 Total Governmental Activities Expenses 455,109 488,487 527,722 542,374 579,193 608,085 586,679 593,231 741,806 759,409 Business-Type Activities Expenses Airport 6,187 6,117 6,391 7,966 8,398 10,133 9,146 11,366 26,498 15,333 Golf 2,968 3,131 3,111 3,297 3,491 3,347 3,869 4,231 4,884 5,500 State Water Contract 6,351 5,848 5,571 5,909 6,973 7,709 6,928 5,924 6,882 7,404 Nacimiento Water Contract 15,776 14,888 14,191 14,044 14,318 13,257 14,816 13,889 14,170 12,571 Lopez Flood Control 6,128 6,220 6,387 7,072 7,004 6,733 7,087 6,941 7,708 8,145 Lopez Park 4 4 4 3 3 2 1 - - - General Flood Control Zone - Salinas Dam 8 45 824 851 1,056 1,142 9 13 1,170 1,521 1,490 1,847 County Service Areas 4,194 4,065 4,218 4,445 4,747 4,670 4,697 5,636 7,340 6,463 Los Osos Wastewater 2 35 3,807 10,322 10,918 11,544 11,636 11,581 11,663 12,597 11,861 Total Business-Type Activities Expenses 42,688 44,904 51,046 54,710 57,620 58,400 59,295 61,171 81,569 69,124 Total Primary Government Expenses $ 497,797 $ 533,391 $ 578,768 $ 597,084 $ 636,813 $ 666,485 $ 645,974 $ 654,402 $ 823,375 $ 828,533 Program Revenues Governmental Activities Fees, Fines, Charges for Services General government $ 12,407 $ 13,702 $ 14,839 $ 12,937 $ 13,484 $ 12,967 $ 15,502 $ 14,414 $ 16,808 $ 13,935 Public protection 20,774 20,768 21,231 23,666 22,946 21,291 23,552 23,648 25,758 26,358 Public ways and facilities 4,255 9,434 7,462 6,155 5,721 4,797 5,532 4,343 4,974 4,449 Health and sanitation 6,631 7,179 6,757 7,501 7,698 8,571 8,038 8,022 8,130 10,637 Public assistance 2,077 2,107 2,032 1,763 1,194 1,155 926 950 901 1,074 Education 2,998 1,952 1,644 2,006 1,943 2,193 1,622 1,315 2,313 1,278 Recreation and cultural services 5,056 4,975 5,127 5,592 5,515 4,295 5,714 6,113 6,094 6,229 Operating Grants and Contributions General government 5 4 735 748 321 200 685 789 2,058 19,120 13,980 Public protection 62,359 63,528 52,205 58,184 59,592 59,974 67,187 76,907 79,867 81,679 Public ways and facilities 14,145 11,025 9,918 11,506 10,485 11,302 11,073 14,279 22,753 28,316 Health and sanitation 62,338 61,950 67,626 76,494 76,211 74,699 91,988 107,891 107,717 134,746 Public assistance 94,775 98,414 102,784 105,848 107,758 114,525 113,555 123,834 137,154 139,484 Education 1 05 124 132 173 143 204 219 374 247 374 Recreation and cultural services 1 31 153 273 671 200 230 271 511 1,794 1,015 Capital Grants and Contributions General government 1 56 4 5 - 349 930 - - - 1,000 1,489 Public protection 9,701 4,420 7,820 6 56 1,197 1,799 3,814 43 - 1,256 Public ways and facilities 6,435 6,031 6,655 8,893 14,361 17,732 12,856 11,993 4,516 10,842 Health and sanitation - - - - - - - - - - Education - - - - - 267 - - - - Recreation and cultural services 1,776 10,804 1,157 1 91 2 8 86 189 413 855 1,213 Total Governmental Activities 306,173 317,346 308,410 322,906 329,606 336,772 362,827 397,108 440,001 478,354 Source: Statement of Activities (continued) 159 County of San Luis Obispo Changes in Net Position Last Ten Fiscal Years (In Thousands) (UNAUDITED) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Business-Type Activities Fees, Fines, Charges for Services Airport $ 4 ,883 $ 5,165 $ 5 ,662 $ 7 ,158 $ 8 ,947 $ 8 ,300 $ 6,140 $ 9,314 $ 11,724 $ 15,131 Golf 2,967 2,589 2,291 2,584 2,717 2,750 4,376 4,843 4,738 5,327 State Water Contract 6,562 6,846 5,941 6,110 7,656 7,825 7,470 5,691 7,367 7,754 Nacimiento Water Contract 9,682 17,048 15,149 1 5,709 1 6,947 1 6,732 17,458 16,696 15,596 15,723 Lopez Flood Control 6,208 6,530 6,708 6,677 7,148 6,978 6,927 7,451 7,918 7,379 Lopez Park - - - - - - - - - - General Flood Control Zone - Salinas Dam 794 960 904 909 913 2,884 1,370 1,234 1,380 1,985 County Service Areas 3,408 - 2,301 3,662 3,894 4,492 4,702 4,739 5,500 5,449 Los Osos Wastewater - 3,551 3,620 4,467 5,100 5,245 5,324 7,129 7,425 7,248 Operating Grants and Contributions Airport 126 126 126 396 328 4,644 7,580 5,823 5,599 2,302 Golf 269 - 1,017 - - - 105 - - - State Water Contract 13 13 14 14 14 14 15 14 14 18 Nacimiento Water Contract 9 9 - 6 - - - - - - Lopez Flood Control 8 8 - 7 5 5 6 6 6 8 Lopez Park - - - - - - - - - - General Flood Control Zone - Salinas Dam - - - - 26 - - - - 37 County Service Areas 211 295 3 3 13 3 3 3 3 3 Los Osos Wastewater - 2,810 18 - - - - - - - Capital Grants and Contributions Airport 365 7,069 15,379 2,211 3,139 505 1,138 12,259 - - Nacimiento Water Contract - - - 24 - - 200 - - - County Service Areas - - - - - - - - - - Los Osos Wastewater 2 6,385 4,157 10,086 2,982 4,860 2,618 2,546 2,847 963 2,333 Total Business-Type Activities Revenues 6 1,890 57,176 69,219 52,919 61,707 62,995 65,360 78,049 68,233 70,697 Total Primary Government Revenues $ 368,063 $ 374,522 $ 377,629 $ 375,825 $ 391,313 $ 399,767 $ 428,187 $ 475,157 $ 508,234 $ 549,051 Net (Expense)/Revenues Governmental Activities $ (148,936) $ (171,141) $ (219,312) $ (219,468) $ (249,587) $ (271,313) $ (223,852) $ (196,123) $ (301,805) $ (281,055) Business-Type Activities 1 9,202 12,272 18,173 (1,791) 4,087 4,595 6,065 16,878 (13,336) 1,573 Total Primary Government net expense $ (129,734) $ (158,869) $ (201,139) $ (221,259) $ (245,500) $ (266,718) $ (217,787) $ (179,245) $ (315,141) $ (279,482) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 General Revenue and Other Changes in Net Position Governmental Activities Property taxes $ 155,374 $ 163,367 $ 173,153 $ 180,051 $ 189,689 $ 198,927 $ 208,371 $ 216,107 $ 235,064 $ 245,825 Other taxes 2 2,984 21,953 23,072 25,708 27,224 27,878 34,440 41,804 37,417 38,278 Interest and investment income 3,174 4,401 3,289 3,171 12,952 12,849 6 96 (16,312) 13,395 33,512 Unrestricted grants 1 3,327 3,140 63 2,740 2,115 3,845 41,157 9,001 5,334 5,567 Other revenues - - 5 2 35,445 1,144 4,813 1,424 306 558 Transfers (2,676) (768) (2,292) 2,267 (625) (493) 282 (213) (6,696) (1,685) Special item - - - - - - - - - Total Governmental Activities 192,183 192,093 197,290 213,939 266,800 244,150 289,759 251,811 284,820 322,055 Business-Type Activities Property taxes 4,782 4,782 3,814 3,858 3,912 4,043 4,387 4,380 4,944 5,045 Other taxes - - - - - - - - - - Interest and investment income 659 847 630 1,272 1,590 2,169 405 (1,333) 1,814 4,575 Other revenues 183 268 338 - 574 2,889 76 1,148 5,282 965 Transfers 2,676 768 2,292 (2,267) 625 493 (282) 213 6,696 1,685 Total Business-Type Activities 8,300 6,665 7,074 2,863 6,701 9,594 4,586 4,408 18,736 12,270 Total Primary Government $ 200,483 $ 198,758 $ 204,364 $ 216,802 $ 273,501 $ 253,744 $ 294,345 $ 256,219 $ 303,556 $ 334,325 Change in Net Position Governmental Activities $ 43,247 $ 20,952 $ (22,022) $ (5,529) $ 17,213 $ (27,163) $ 65,907 $ 55,688 $ (16,985) $ 41,000 Business-Type Activities 2 7,502 1 8,937 25,247 1,072 10,788 1 4,189 10,651 21,286 5,400 13,843 Total Primary Government $ 70,749 $ 39,889 $ 3 ,225 $ (4,457) $ 28,001 $ (12,974) $ 76,558 $ 76,974 $ (11,585) $ 54,843 Source: Statement of Activities 160 County of San Luis Obispo Fund Balances, Governmental Funds Last Ten Fiscal Years (In Thousands) (UNAUDITED) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 General Fund Nonspendable $ 5,089 $ 3,454 $ 3,535 $ 18,511 $ 19,222 $ 18,734 $ 9 ,861 $ 6 ,655 $ 6 ,773 $ 15,242 Restricted 2,945 2,872 2,649 10,083 1 2,276 1 0,915 2 4,212 2 6,060 2 4,607 22,096 Committed 138,140 168,619 164,492 152,501 169,846 175,455 194,669 214,112 224,823 248,486 Assigned 125,112 122,925 126,596 107,145 127,007 119,426 173,558 190,037 199,196 200,660 Unassigned - - - - - - - - - - Total General Fund $ 271,286 $ 297,870 $ 297,272 $ 288,240 $ 328,351 $ 324,530 $ 402,300 $ 436,864 $ 455,399 $ 486,484 All Other Governmental Funds Nonspendable $ 920 $ 3,776 $ 3 $ 24 $ 36 $ 4 $ 6 $ 9 $ 9 $ 18 Restricted 2 0,563 2 1,317 2 4,192 2 4,750 3 3,496 5 7,057 5 8,106 5 4,520 129,672 129,739 Committed 7 8,508 6 1,926 9 4,904 6 2,307 6 6,616 6 7,593 8 8,636 9 6,623 8 6,728 8 7,804 Assigned - - - - - - - - - - Unassigned ( 486) - - (3,038) - - - - - - Total All Other Governmental Funds $ 99,505 $ 87,019 $ 119,099 $ 84,043 $ 100,148 $ 124,654 $ 146,748 $ 151,152 $ 216,409 $ 217,561 Source: Balance Sheet - Governmental Funds 161 County of San Luis Obispo Changes in Fund Balances, Governmental Funds Last Ten Fiscal Years (In Thousands) (UNAUDITED) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Revenues Taxes $ 178,740 $ 185,764 $ 196,822 $ 203,583 $ 217,106 $ 223,041 $ 243,406 $ 261,163 $ 270,790 $ 281,265 Licenses, permits, and franchises 1 0,452 10,539 11,446 11,140 12,133 11,477 12,522 12,597 15,478 14,351 Fines, forfeitures, and penalties 5 ,686 5,173 4,339 5,977 4,396 3,916 4,352 4,304 4,297 4,889 Revenues from use of money and property 3 ,864 4,939 3,984 3,779 12,268 12,247 1,084 (14,773) 1 3,346 32,133 Aid from governmental agencies 2 61,351 256,490 254,350 262,660 271,961 277,267 348,093 350,382 378,339 408,888 Charges for current services 4 3,530 46,308 49,460 49,793 47,957 46,712 51,694 49,498 55,512 58,506 Other revenues 9 ,110 11,504 8,481 6,869 25,278 12,396 13,104 12,734 14,429 14,279 Total revenues 5 12,733 520,717 528,882 543,801 591,099 587,056 674,255 675,905 752,191 814,311 Expenditures Current: General government 51,207 54,461 54,918 60,445 54,991 54,078 64,686 63,569 75,027 78,117 Public protection 157,783 156,096 164,839 175,175 185,033 205,162 199,299 212,388 233,444 247,211 Public ways and facilities 29,903 41,044 29,077 42,254 35,267 43,865 37,099 39,124 58,016 53,698 Health and sanitation 75,116 81,591 88,623 99,885 103,512 108,158 117,359 157,490 140,568 168,927 Public assistance 107,104 111,227 113,392 117,066 121,327 131,154 129,141 133,275 188,616 156,910 Education 11,388 10,534 11,560 11,640 12,191 12,769 13,368 15,712 14,199 13,975 Recreational and cultural services 10,104 9,888 9,963 10,358 10,574 11,637 10,976 12,420 16,685 14,297 Debt service: Principal payments 6,070 6,788 7,576 50,989 5,093 10,561 5,289 9,137 13,067 14,207 Interest and fiscal charges 5,209 4,687 4,639 11,666 1,204 6,416 7,030 7,895 10,581 12,762 Debt issuance costs - - - - - - - - - - Capital outlay 20,019 30,465 11,554 11,828 6,374 7,645 13,795 17,376 14,563 22,986 Total expenditures 473,903 506,781 496,141 591,306 535,566 591,445 598,042 668,386 764,766 783,090 Excess (deficiency) of revenues over (under) expenditures 38,830 13,936 32,741 (47,505) 55,533 (4,389) 76,213 7,519 (12,575) 31,221 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Other Financing Sources Proceeds of long-term debt - - - - - 20,384 2,841 - 70,033 - Premium on lease revenue bonds issued - - - - - 4,023 - - 4,634 - Payment to refunded escrow agent - - - - - - - - (5,724) - Leases - - - - - - - 30,950 38,935 659 Subscription-based IT arrangement - - - - - - - - 305 695 Transfers in 3 3,299 35,803 57,668 54,782 31,633 36,803 37,384 45,602 48,050 48,204 Transfers out ( 34,924) (35,641) (58,927) (51,365) (30,950) (36,136) (36,094) (45,103) (59,866) (48,542) Total other financing sources and uses ( 1,625) 162 (1,259) 3,417 683 25,074 4,131 31,449 96,367 1,016 Net change in fund balances $ 37,205 $ 14,098 $ 31,482 $ (44,088) $ 56,216 $ 20,685 $ 80,344 $ 38,968 $ 83,792 $ 32,237 Debt Service as a percentage of non- 2.57% 2.54% 2.62% 11.25% 1.23% 3.05% 2.20% 2.85% 3.27% 3.69% capital expenditures Source: Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 162 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 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 2023 67,503,193 2 ,512,544 (1,648,668) 68,367,069 6.4% 1.0040 2024 71,302,780 2 ,750,976 (1,708,530) 72,345,225 5.8% 1.0036 Total Net Assessed Value Change from Prior Year tnecreP 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% Percent Change from Prior Year 1.0% 0.0% 5102 6102 7102 8102 9102 0202 1202 2202 3202 4202 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 163 County of San Luis Obispo Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (per $100 of assessed values) (UNAUDITED) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 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 Project 0 .00400 0.00374 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00363 Total Direct Rate 1.00400 1.00374 1.00400 1.00400 1.00400 1.00400 1.00400 1.00400 1.00400 1.00363 Cities, Schools, and Special Districts Combined Rates Arroyo Grande 0.0569 0.0756 0.0680 0.1085 0.1051 0.0965 0.0827 0.0840 0.0648 0.0602 Atascadero 0 .0590 0.1373 0.1373 0.1373 0.1373 0.1373 0.1373 0.1373 0.1373 0.1293 Grover Beach 0 .0509 0.0940 0.1023 0.1599 0.1901 0.1815 0.1677 0.1690 0.1598 0.1553 Morro Bay 0 .0510 0.0688 0.0683 0.0683 0.0683 0.0683 0.0614 0.0582 0.0548 0.0519 Paso Robles 0.0782 0.0955 0.0828 0.0828 0.1291 0.1222 0.1160 0.1198 0.1169 0.1119 Pismo Beach 0 .0509 0.0700 0.0680 0.1085 0.1051 0.0965 0.0827 0.0840 0.0648 0.0602 San Luis Obispo - 0.0683 0.0683 0.0683 0.0683 0.0683 0.0583 0.0583 0.0543 0.1033 Note: Rates shown represent the most common rates encountered for the tax rate areas within these cities. Source: County Property Tax Rate Book 164 County of San Luis Obispo Principal Property Taxpayers Current Year and Ten Years Ago (In Thousands) (UNAUDITED) Fiscal Year 2023-24 Fiscal Year 2014-15 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 $ 1,095,938 1 1.51% $ 2,586,358 1 5.69% High Plans Ranch II LLC Solar Ranch 786,943 2 1.09% - - 0.00% Southern California Gas Co. Utility 185,864 3 0.26% 65,824 7 0.14% Jamestown Premier Commercial 159,488 4 0.22% - - 0.00% E&J Gallo Winery/Vineyards Winery 132,184 5 0.18% 6 2,096 9 0.14% Firestone Walker LLC Brewery 107,313 6 0.15% - - 0.00% CAP VIII - Mustang Village LLC Apartments 102,092 7 0.14% 76,943 4 0.17% Treasury Wine Estates Americas Co Winery 97,388 8 0.13% - - 0.00% Sierra Vista Hospital INC Hospital 85,383 9 0.12% - - 0.00% Vespera Pismo Beach Holdings Resort 81,449 10 0.11% - - 0.00% Phillips 66 Company Oil Refinery - 0.00% 163,237 2 0.36% Beringer Wine Estates Company Winery - 0.00% 9 2,622 3 0.20% Plains Exploation & Production Petroleum & Gas - 0.00% 7 1,391 5 0.16% Pacific Bell Telephone Co Communications - 0.00% 6 7,102 6 0.15% Martin Hotel Management Hotel - 0.00% 6 3,290 8 0.14% Pasquini Charles Jr Tre Etal Private - 0.00% 5 7,036 10 0.13% Total $ 2,834,042 3.91% $ 3,305,899 7.28% Total County Assessed Value $ 72,345,225 $ 45,426,162 Sources: County Property Tax System 2014-15 San Luis Obispo County Annual Comprehensive Financial Report 165 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 Ended Total Levy for Collected % of Original Subsequent Delinquent % of Levy June 30, the Fiscal Year Amount Levy Years* Amount Delinquent 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% 2023 661,387 654,754 99.00% N/A 6 ,632 1.00% 2024 698,978 690,161 98.74% N/A 8 ,817 1.26% Note: Amounts do not include tax collections for bonds or special assessments *Collections in subsequent years are not available from the County's current property tax system. Source: County Property Tax Booklet 166 County of San Luis Obispo Special Assessment Billings and Collections (In Thousands) (UNAUDITED) Special Special Year ended Assessment Assessment June 30, Billings Collected 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 2023 5,063 5,063 2024 5,063 5,074 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 167 County of San Luis Obispo Ratios of Total Debt Outstanding Last Ten Fiscal Years (In Thousands) (UNAUDITED) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Governmental Activities Certificates of Participation $ 23,600 $ 22,527 $ 21,411 $ 26,135 $ 24,808 $ 18,004 $ 19,619 $ 1 8,290 $ 11,178 $ 10,813 Less deferred amounts: For issuance discounts: (91) (87) (83) (79) (75) - - - - - Add deferred amounts: For issuance premiums: 1,152 1,063 9 75 886 7 97 7 08 619 530 - - State notes - - - 2,056 1,901 1,744 1,586 1,426 1,264 1,101 Pension Obligation Bonds 146,219 145,291 143,890 99,407 96,903 93,733 89,825 85,112 79,516 72,966 Lease revenue bonds - - - - - 20,380 19,970 19,380 88,803 85,842 Add deferred amounts: For issuance premiums: - - - - - 4,023 3,837 3,652 7,972 7,566 Assessment Bonds from direct borrowings - - - - - 436 391 344 294 241 Leases 1 - - - - - - - 92,248 126,334 122,129 Subscription-based IT arrangements 2 - - - - - - - - 2,614 757 Total bonds and notes payable 170,880 168,794 166,193 128,405 124,334 139,028 135,847 2 20,982 317,975 301,415 Business-Type Activities Certificates of Participation 17,745 17,194 16,470 15,678 14,811 13,908 12,966 14,668 11,471 10,734 Add deferred amounts: For issuance premiums: 4 26 393 361 328 295 262 229 196 - - State Note 72,774 86,611 85,674 87,667 84,409 81,079 88,385 84,528 80,701 76,965 Other Notes - - - - - - - 196 1 66 126 Revenue Bonds 183,813 177,198 173,535 168,410 164,126 159,841 155,330 1 50,585 145,595 140,345 Add deferred amounts: For issuance premiums: 5,519 10,058 9,623 8,926 8,502 8,077 7,653 7,230 6,805 6,381 Unamortized outflow on Bond Refinancing - (4,171) (3,990) (3,808) - - - - - - General Obligation Bonds 9,155 8,760 8,350 7,925 7,485 7,025 6,540 6,030 5,490 4,925 Add deferred amounts: For issuance premiums: 9 02 846 790 733 677 620 564 508 4 52 396 Lease Revenue Bonds - - - - - - - - 1,582 1,217 Add deferred amounts: For issuance premiums: - - - - - - - - 57 43 Assessment Bonds 79,829 79,396 78,089 76,746 75,358 73,943 72,483 70,978 69,437 67,850 Leases 1 - - - - - - - 250 1 64 78 Subscription-based IT arrangements 2 - - - - - - - - 1 99 86 Total bonds and notes payable 370,163 376,285 368,902 362,605 355,663 344,755 344,150 3 35,169 322,119 309,146 Total Outstanding Debt $ 5 41,043 $ 545,079 $ 535,095 $ 491,010 $ 479,997 $ 4 83,783 $ 479,997 $ 556,151 $ 6 40,094 $ 610,561 Percentage of Personal Income 3.86% 3.76% 3.58% 3.13% 2.92% 2.80% 2.54% 2.90% 3.13% N/A Percentage of Assessed Value of Taxable Property 3 1.19% 1.13% 1.06% 0.92% 0.85% 0.81% 0.77% 0.87% 0.94% 0.84% Net outstanding debt Per Capita $ 1,973 $ 1,961 $ 1,916 $ 1,753 $ 1,714 $ 1,709 $ 1,701 $ 1,964 $ 2,270 $ 2,168 Note: See the Demographic Statistics Schedule for detailed information on personal income and population. 1 GASB Statement 87 was implemented in FY 2021-22. Prior year leases were not recognized as capital leases pre-GASB 87. 2 GASB Statement 96 was implemented in FY 2022-23. Prior year sbuscription-based IT arrangements were not recognized as capital leases pre-GASB 96. 3 Due to Article XIII-A, added to the California Constitut ion 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 actual value of taxable 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. Source: Notes to the Financial Statements, Note 10 168 County of San Luis Obispo Ratios of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands) (UNAUDITED) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Certificates of Participation $ 12,915 $ 12,137 $ 11,326 $ 10,482 $ 9,606 $ 8,693 $ 7,747 $ 6,757 $ 2,740 $ 2,688 Less deferred amounts: For issuance discounts: (91) (87) (83) (79) (75) - - - - - Add deferred amounts: For issuance premiums: 1 ,152 1 ,063 9 75 8 86 7 97 7 08 6 19 530 - - Lease Revenue Bonds - - - - - 20,380 19,970 1 9,380 90,385 87,059 Add deferred amounts: For issuance premiums: - - - - - 4,023 3,837 3,652 8,029 7,609 General Obligation Bonds 9 ,155 8 ,760 8,350 7,925 7,485 7,025 6,540 6,030 5,490 4,925 Add deferred amounts: For issuance premiums: 902 846 7 90 7 33 6 77 6 20 5 64 508 452 396 State Notes - - - 2,056 1,901 1,744 1,586 1,426 1,264 1,101 Other Notes - - - - - - - 196 166 126 Assessment Bonds 79,829 79,396 78,089 76,746 75,358 73,943 72,483 7 0,978 69,437 67,850 Leases 1 - - - - - - - 92,498 126,498 122,207 Subscription-based IT arrangements 2 - - - - - - - - 2,813 843 Less resources restricted for principal repayment (2,683) (2,688) (2,692) (2,712) (8,061) (30,167) (23,110) (17,088) (90,011) (93,218) Net Total General Obligation Debt $ 101,179 $ 99,427 $ 96,755 $ 96,037 $ 87,688 $ 86,969 $ 90,236 $ 184,867 $ 217,263 $ 201,586 Percentage of Personal Income 0.72% 0.69% 0.65% 0.61% 0.53% 0.50% 0.48% 0.96% 1.06% N/A Percentage of Assessed Value of Taxable Property1 0.22% 0.21% 0.19% 0.18% 0.16% 0.15% 0.15% 0.29% 0.32% 0.28% Net outstanding debt Per Capita $ 3 69 $ 358 $ 347 $ 343 $ 313 $ 307 $ 320 $ 655 $ 770 $ 716 Note: See the Demographic Statistics Schedule for detailed information on personal income and population. 1 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 actual value of taxable 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. 1 GASB Statement 87 was implemented in FY 2021-22. Prior year leases were not recognized as capital leases pre-GASB 87. 2 GASB Statement 96 was implemented in FY 2022-23. Prior year sbuscription-based IT arrangements were not recognized as capital leases pre-GASB 96. Source: Notes to the Financial Statements, Note 10 169 County of San Luis Obispo Legal Debt Margin Information Last Ten Fiscal Years (In Thousands) (UNAUDITED) 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Assessed Value of Property (a) $ 45,426,163 $ 48,172,375 $ 50,647,598 $ 53,415,961 $ 56,262,663 $ 59,450,048 $ 62,200,611 $ 64,252,963 $ 68,367,069 $ 72,345,226 Debt Limit, 1.25% of Assessed Value 567,827 602,155 633,095 667,700 703,283 743,126 777,508 803,162 854,588 904,315 Amount of Debt Applicable to Limit General Obligation Bonds (b) 10,057 9 ,606 9 ,140 8 ,658 7 ,485 7 ,025 6 ,540 6 ,030 5 ,490 4 ,925 Less: Resources Restricted to Paying Principal - - - - - - - - - - Total Debt Applicable 1 0,057 9 ,606 9 ,140 8 ,658 7 ,485 7 ,025 6 ,540 6 ,030 5 ,490 4 ,925 Legal Debt Margin $ 557,770 $ 592,549 $ 623,955 $ 659,042 $ 695,798 $ 736,101 $ 770,968 $ 797,132 $ 849,098 $ 899,390 Total Debt Applicable as a Percentage of the Debt Limit 1.77% 1.60% 1.44% 1.30% 1.06% 0.95% 0.84% 0.75% 0.64% 0.54% Source: (a)County Assessed Values, Exemptions and Growth % Book (b)Notes to the Financial Statements, Note 10 170 County of San Luis Obispo Demographic and Economic Statistics Last Ten Fiscal Years (UNAUDITED) Personal Income Per Unemployment Calendar Population (in thousands) Capita Income Median Age School Enrollment Rate Year (1,a) (1,a) (1,a) (4,c) (3,b,d) (2,e) 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 19,162,980 67,951 40.20 39,857 2.6 2023 282,013 20,481,086 72,721 41.10 39,833 3.5 2024 281,639 N/A N/A 41.00 40,183 3.9 Notes: N/A = not available a. Data for prior calendar years b. Data includes kindergarten through grade 12 and Cuesta College c. Calendar year 2015 and 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, 2024 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 171 County of San Luis Obispo Principal Employers Current Year and Ten Years Ago (UNAUDITED) 2024 2, 3 2015 1 Number of Percentage of Total Number of Percentage of Total Employer Employees Rank County Employment Employees Rank County Employment County of San Luis Obispo 2,959 1 2.18% 2,800 2 1.94% Cal Poly Corporation 2,650 2 1.95% 1,400 6 0.97% Department of State Hospitals - Atascadero 2,300 3 1.69% 2,000 3 1.39% California Men's Colony 2,000 4 1.47% 1,540 4 1.07% California Polytechnic State University 1,912 5 1.41% 3,055 1 2.12% Lucia Mar Unified School District 1,823 6 1.34% 1,000 9 0.69% Pacific Gas and Electric Company 1,700 7 1.25% 1,900 5 1.32% Tenet Health Central Coast 1,425 8 1.05% 1,272 7 0.88% San Luis Coastal Unified School District 1,388 9 1.02% - - - Paso Robles Joint Unified School District 1,262 10 0.93% 935 10 0.65% Compass Health - - - 1,200 8 0.83% Total Employment Labor Force 4 136,000 144,200 Sources: 1 2014-15 San Luis Obispo County Annual Comprehensive Financial Report 2 2023 Pacific Coast Business Times Book of Lists 3 2024-25 County Budget Report 4 State of California Employment Development Department 172 County of San Luis Obispo Full Time Equivalent County Government Employees by Function Last Ten Fiscal Years (UNAUDITED) Function/Program 2014-15 2015-16 2016-17 2017-18* 2018-19* 2019-20* 2020-21* 2021-22* 2022-23* 2023-24* General Government 436.75 440.50 430.75 437.50 441.00 455.25 458.00 456.25 460.50 466.00 Public Protection 832.25 848.25 867.00 909.50 912.00 899.75 904.25 907.50 921.50 924.75 Public Ways and Facilities 190.75 207.75 234.75 237.75 246.75 247.75 248.75 249.75 253.75 258.00 Health and Sanitation 485.25 505.50 556.00 536.50 530.00 531.00 530.00 566.00 612.50 628.25 Public Assistance 500.75 524.00 524.00 523.00 522.00 523.50 526.75 527.25 543.25 538.50 Education 75.50 77.50 78.00 77.75 78.00 78.25 78.50 78.50 78.50 79.00 Recreation and Cultural Services 59.00 60.00 61.00 61.00 61.00 61.00 61.00 62.00 62.00 64.00 Total 2,580.25 2,663.50 2,751.50 2,783.00 2,790.75 2,796.50 2,807.25 2,847.25 2,932.00 2,958.50 Notes: 2015-2017 Position allocation figures were calculated at the time of budget preparation for the following year. Figures include limited-term but do not include part-time or contract positions. * Position allocation figures are calculated based on the adopted budgets. Source: County Budget Report 173 County of San Luis Obispo Operating Indicators by Function Last Ten Fiscal Years (UNAUDITED) Function / Department 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Recreation and Cultural Services Parks Day Use Passes 57,564 n/a n/a n/a n/a n/a n/a n/a n/a n/a Daily Passes* 239,140 189,232 230,915 257,220 60,902 59,194 62,559 41,130 51,591 62,562 Annual Passes 3,137 n/a n/a n/a n/a n/a n/a n/a n/a n/a Annual Vehicle Passes* 12,584 9,614 6,504 8,066 3,974 1,823 1,716 1,869 1,727 1,806 Daily Boat Launches* 23,706 16,001 16,312 24,340 9,664 11,210 11,810 6,242 6,134 9,187 Annual Boat Passes* 1,245 480 1,383 1,353 1,629 1,288 764 403 666 695 Public Protection Planning and Building Total Permits Issued 3,139 3,355 3,927 3,542 3,256 3,299 3,624 4,032 4,577 3,472 Number of New Affordable Housing ** 151 99 65 133 131 n/a n/a n/a n/a n/a Sheriff Jail bookings 11,375 11,018 11,774 11,324 10,246 8,144 6,235 6,367 7,994 7,023 Average daily population 679 603 632 621 636 552 448 462 463 532 Health and Sanitation Mental Health Day Treatment Days provided to youth in out-of-county group home facilities** 1,613 1,381 604 n/a n/a n/a n/a n/a n/a n/a Public Health Percentage of the State allocated caseload enrolled in the Women, Infants & Children (WIC) Program ** 91% 86% 76% 72% 68% n/a n/a n/a n/a n/a Percentage of live born infants whose mothers received prenatal care in the first trimester 79% 80% 78% 78% 84% 86% 84% 86% 82% 76% Public Assistance Social Services Percentage of child abuse/neglect referrals where a response is required within 10 days that were timely ** 98% 97 % n/a n/a 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 91% 95% 95% 94% 92% 94% 92% 98% Education Library Annual number of items circulated per capita 9.6 10.5 10.3 11.6 12.1 12.1 7.6 9.7 9.7 7.2 Annual Expenditure per capita for total Library budget $ 3 6.13 $ 36.27 $ 3 8.10 $ 40.36 $ 40.57 $ 4 4.47 $ 46.78 $ 47.12 $ 51.51 $ 4 2.69 Public Ways and Facilities Roads Pavement Condition Rating for all County roads (70 = "good") 61 65 66 65 65 60 59 59 60 60 Airport Airport Takeoffs and Landings 71,001 71,181 71,001 77,917 82,110 68,067 75,082 82,471 77,084 77,426 Passenger Enplanements 149,558 155,744 180,141 226,588 259,481 215,900 150,065 247,522 305,680 351,674 * 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 no longer reported. Source: County Budget Performance Indicators 174 County of San Luis Obispo Capital Asset Statistics by Function Last Ten Fiscal Years (UNAUDITED) Function/Program 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 Education Main and branch library facilities 1 15 15 15 15 15 15 15 15 15 15 Recreation and Cultural Services County golf courses 3 3 3 3 3 3 3 3 3 3 Park acreage 13,583 13,583 13,583 13,583 13,583 13,841 13,841 13,841 13,841 13,841 Public Protection Correction facility capacities 2, 3 797 797 909 909 909 909 909 909 909 N/A Animal Services Facility 4 1 1 1 1 1 1 1 1 1 1 Public Ways and Facilities Miles of county roads 1,336 1,338 1,338 1,339 1,339 1,349 1,349 1,349 1,349 1,349 Airport Number of runways 2 2 2 2 2 2 2 2 2 2 Notes: The majority of County assets are in building and equipment, which are under the functional area of General Government 1 Library main and branch data added in FY 2023-24. One main library and 14 branches. 2 Amount is all holdings actual totals, including Main Jail, Women's Jail, West Housing, West Dorm, Honor Farm, and Weekender Barracks. 3 Correction facility capacity data is no longer being collected. This data will be removed in future years. 4 Animal Services Facility data added in FY 2023-24. Source: County department management 175