HomeMy Public PortalAboutAudit Report - District- FY21Annual Comprehensive Financial Report
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FISCAL YEAR ENDED JUNE 30, 2021
Headquarters in Los Altos, California
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Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2021
Midpeninsula Regional Open Space District
Prepared by:
Finance and Administrative Services
Los Altos, California
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Introductory Section
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Midpeninsula Regional Open Space District
Santa Clara County, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
TABLE OF CONTENTS
TITLE PAGE
INTRODUCTORY SECTION
Table of Contents ........................................................................................................................ 1
Transmittal Letter ........................................................................................................................ 3
Board of Directors & Management ............................................................................................. 10
Organizational Chart ................................................................................................................... 11
Regional Map .............................................................................................................................. 12
Achievement Award .................................................................................................................... 13
FINANCIAL SECTION
Independent Auditor’s Report ..................................................................................................... 16
Management’s Discussion and Analysis ..................................................................................... 21
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .............................................................................................. 30
Statement of Activities .................................................................................................. 31
Fund Financial Statements:
Balance Sheet – Governmental Funds ........................................................................... 34
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position ....................................................................................... 35
Statement of Revenues, Expenditures, and Changes
in Fund Balance – Governmental Funds ................................................................. 36
Reconciliation of Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balance to the Statement of Activities ................................. 37
Notes to the Basic Financial Statements .............................................................................. 40
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual (GAAP) - General Fund ......................................................................... 73
Schedule of Pension Plan Contributions ..................................................................................... 74
Schedule of Net Pension Liability Proportionate Shares ............................................................. 75
Schedule of Contributions for Postemployment Benefits ........................................................... 76
Schedule of Changes in Net OPEB Liability ............................................................................... 77
SUPPLEMENTARY INFORMATION
Schedule of Revenue, Expenditures and Changes in Fund Balance –
Budget and Actual (GAAP) - Measure AA Capital Projects Fund ...................................... 82
Schedule of Revenue, Expenditures and Changes in Fund Balance –
Budget and Actual (GAAP) - GF Capital Projects Fund ...................................................... 83
Schedule of Revenue, Expenditures and Changes in Fund Balance –
Budget and Actual (GAAP) - Debt Service Fund................................................................. 84
Measure AA Bond Program – Schedule of Program Expenditures ............................................. 85
Notes to Supplementary Information .......................................................................................... 86
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Midpeninsula Regional Open Space District
Santa Clara County, California
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
STATISTICAL SECTION
Net Position ................................................................................................................................. 91
Changes in Net Position .............................................................................................................. 92
Fund Balances of Governmental Funds ...................................................................................... 93
Changes in Fund Balances of Governmental Funds .................................................................... 94
Assessed and Actual Value of Taxable Property ......................................................................... 95
Direct and Overlapping Property Tax Rates ................................................................................ 96
Principal Property Taxpayers ...................................................................................................... 97
Property Tax Levies and Collections .......................................................................................... 98
Ratios of General Bonded Debt Outstanding .............................................................................. 99
Ratios of Outstanding Debt by Type ........................................................................................... 100
Computation of Direct and Overlapping Debt .......................................................... 101
Legal Debt Margin Information .................................................................................................. 103
Demographic and Economic Statistics ........................................................................................ 104
Principal Employers .................................................................................................................... 105
Full-time Equivalent District Government Employees by Function ........................................... 106
Capital Asset Statistics by Function ............................................................................................ 107
Operating Indicators by Function ................................................................................................ 108
OTHER INDEPENDENT AUDITOR’S REPORTS:
Independent Auditor’s Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ......................................... 110
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Midpeninsula Regional Open Space District
330 Distel Circle
Los Altos, California 94022
December 27, 2021
Members of the Board of Directors and Midpen Constituents:
The Annual Comprehensive Financial Report (ACFR) of the Midpeninsula Regional Open Space District
(District) for the year ended June 30, 2021, is hereby submitted.
The ACRF has been prepared by the Finance Department in compliance with the principles and standards
for financial reporting promulgated by the Governmental Accounting Standards Board (GASB). The
ACFR consists of District management’s representations concerning the finances of the District and District
management assumes full responsibility for completeness, accuracy of data, and fairness of presentation,
including all footnotes and disclosures. Management believes the data presented are accurate in all material
respects and that they are presented in a manner designed to fairly set forth the financial position and results
of operations of the District.
The District’s accounting records for governmental operations are maintained on a modified accrual basis,
with the revenues being recorded when both measurable and available, and expenditures being recorded
when the services or goods are received, and the liabilities are incurred.
District management has established a comprehensive framework of internal controls designed both to
protect the District’s assets from loss, theft, or misuse; and to compile sufficiently reliable information for
the preparation of the District’s financial statements in conformity with generally accepted accounting
principles. Because the cost of internal controls should not outweigh their benefits, the District’s designed
its controls to provide reasonable, but not absolute, assurance that the financial statements will be free from
material misstatement. The ACFR has been audited by the independent certified public accounting firm of
Chavan & Associates, LLP. The independent certified public accounting firm has issued an unmodified
opinion on the District’s financial statements for the year ended June 30, 2021.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report
and provides a narrative introduction, overview, and analysis of the financial statements. This letter of
transmittal serves as a complement to the MD&A and should be read in conjunction with it.
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT PROFILE
The Midpeninsula Regional Open Space District (the “District”) was formed in 1972 to acquire and
preserve public open space land in northern and western portions of the County of Santa Clara. In June
1976, the southern and eastern portions of the County of San Mateo were annexed to the District. The
District annexed three parcels located in the northern tip of Santa Cruz County in 1992, but the 1% ad
valorem property tax is not levied on this land for the benefit of the District. In September 2004, the
District completed the Coastside Protection Program, which extended the District boundaries to the
Pacific Ocean in the County of San Mateo County, from the southern borders of the City of Pacifica to the
San Mateo/Santa Cruz County line.
The District encompasses over 550 square miles of land located in the County of Santa Clara
(approximately 200 square miles), the County of San Mateo (approximately 350 square miles) and the
County of Santa Cruz County (approximately 2.6 square miles). The Counties of Santa Clara and San
Mateo are referred to together as the “Counties.”, and over 770,000 people live within the boundaries of
the District.
The District has preserved over 65,000 acres of public land and manages 26 open space preserves within
its mission to acquire and preserve a regional greenbelt of open space land in perpetuity, protect and
restore the natural environment, and provide opportunities for ecologically sensitive public enjoyment
and education.
A seven-member Board of Directors (Board), elected by individual ward, establishes policies for the
District. Specifically, the Board sets general operating objectives for the District, authorized debt issuance,
monitors financial and long-range planning, establishes policies governing conditions of employment, and
sets policies to protect and enhance the natural and cultural resources of the District. Members of the Board
of Directors are elected for staggered four-year terms. The Board appoints a General Manager to serve as
the District’s chief executive officer. The General Manager provides direction and leadership to all District
departments; and ensures that all District policies are implemented.
The District is a legally separate and fiscally independent entity from other government agencies which
may also provide governmental services within the same geographic area. The ACFR includes all funds of
the District. There are no separate or legal entities or component units include in the financial statements
of the District. The District has a blended component unit included in the financial statements of the
District. In 1996, the District and Santa Clara County established the Midpeninsula Regional Open Space
District Financing Authority (Authority) to help the District finance improvements by buying land and
building facilities in cooperation with the District. The President of the District’s Board of Directors is also
the Chairperson of the Authority. Three District directors and a Supervisor from Santa Clara County are
also on the Authority Board. In effect, the Authority operates in tandem with the District.
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FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is, perhaps best understood when considered from
the broader perspective of the environment in which the District operates.
State and Regional Economy
At the end of 2020, Beacon Economics (Beacon) projected strong growth in the California economy for
2021, as the vaccination program against COVID-19 was rolled out statewide. While California’s
employment growth lagged the nation overall, Beacon projected continued improvement in the labor
market with job growth approaching pre-pandemic levels moving into 2022 and beyond. California’s
slower recovery is attributed to its stricter public health measures and its ongoing housing affordability
issue. Beacon also noted the expectation of a muted effect of the pandemic on the residential housing
market, with both home prices and new home construction increasing with the historically low 30-year
mortgage rates.
The updated UCLA Anderson Forecast (Anderson) released in September 2021 showed that the national
economy continues to recover from the initial contraction with the onset of the COVID-19. National GDP
growth for 2022 was reduced to 4.1% with the emergence of the Delta variant. However Anderson expects
California to once again outpace the nation as a whole, with the state benefiting from the impact of its
technology sector as the workplace transitions into more remote work, and its high vaccination rate.
California’s unemployment rate was forecast at 7.2% for the third quarter of 2021, falling to 5.6% in 2022
and 4.4% in 2023, with employment growth rates to be 3.9% and 2.75, respectively.
In its most recent report for Fall 2021, Beacon Economics report shows that job growth in the South Bay
area continues to recover from the lows of 2020, with August 2021 nonfarm employment returning to nearly
94.2% of its pre-pandemic levels. Although the South Bay area continues to add jobs since the depths of
the pandemic, the region has only recovered 56% of the jobs lost during March/April 2020. As long as the
COVID-19 outbreak remains under control, Beacon predicts that the factors affecting employment growth
should dissipate as California moved to a nearly full reopening of its economy in the summer of 2021.
The District’s boundaries encompass a large portion of the Silicon Valley, which continues to be to world’s
premier location for the technology industry with a long culture of entrepreneurship and innovation. The
District typically derives nearly 90 percent of its total revenues from property taxes, with two-thirds of its
general fund property tax revenue from Santa Clara County and one-third from San Mateo County.
The real estate market in the both San Mateo and Santa Clara counties continue to demonstrate strong
demand in both the residential and commercial sectors. For fiscal year 2021-22, the Santa Clara County
Assessor’s Office showed that the assessment roll increased by 4.6%, to a total of $576.9 billion. Similarly,
San Mateo County reported that the total value of assessed properties increased by 4.16% for FY 2021-22
to a record $265.8 billion. Total assessments within the District’s boundaries increased by 7.4% for FY
2020-21. Over the past 10 years, the District’s general fund property tax revenues have increased by an
annual average of nearly 8%.
In a report released for October 2021 by the California Association of Realtors, residential prices showed
a year-on-year increase of 25.6% in San Mateo County and 12.7% in Santa Clara County.
While the assessed value continues to grow in both counties, each of the assessor offices remains concerned
about the well-publicized affordability issues in the Bay Area. While the COVID-19 pandemic does not
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appear to have a negative impact on residential property, the pricing and valuation dynamics for commercial
real estate may be impacted as work from home and remote locations become the norm.
In face of the continuing COVID-19 pandemic, the District is continuing to develop prudent spending plans
to ensure that the District has the necessary financial resources to mitigate the effects of the COVID-19
pandemic. The aforementioned housing affordability crisis and tight labor market continue to present
challenges for hiring and retention of employees. The inflation rate for construction costs and materials for
capital projects are still increasing at more rapid pace than general inflation and the labor market for
construction workers remains very tight.
Major Initiatives
In the 2020-21 Fiscal year the District’s achieved the completion of major projects and actions including
the following:
Completed habitat restoration projects and actions that protect sensitive animal species and wildlife
corridors in La Honda Creek and Russian Ridge Preserves.
Continued the Highway 17 Wildlife and Regional Trail Crossings project that will provide a safe
wildlife corridor and a separate regional trail crossing the highway.
Completed projects and actions that protect sensitive plant species and restore habitats:
Began 4th year of targeted invasive species removal at Bear Creek Redwoods Preserve with
partial funding from a 5-year Valley Water grant following Midpen’s Integrated Pest
Management Program to restore native habitats.
Completed a forest inventory and road assessments and drafted the La Honda Forest Health
Assessment to inform the development of a forest health plan for lands in La Honda Creek
Preserve.
Completed land rehabilitation projects and actions to rehabilitate lands, including removal of over
300 tons of hazardous waste at an old landfill site in Miramontes Ridge Preserve.
Continued progress on public access projects at Bear Creek Redwoods Preserve, including
completion of traffic studies to finalize a future pedestrian crossing, submitting permits for Phase II
Trail Improvements, completed construction of the Briggs Creek Trail and Stables Loop Trail.
Made significant progress on removing ADA accessibility barriers to improve access for people with
different physical abilities, including ADA restroom replacements and other entrance and access
improvements at multiple preserves.
Improved trail tread and drainage features on 15 miles of fire road and 6 miles of single-track trail.
Replaced and upgraded 16 culverts.
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Completed multiple Districtwide actions in support of public outreach goals, including increased
circulation of the quarterly newsletter by 150% and further increased social media presence with a
total reach of over 2.5 million followers.
Provided technology tools and computer equipment to provide staff the ability to continue to fulfill
the District’s mission and workplan in the Covid pandemic environment.
Began construction on the new District Administrative Office which will provide for improved
administrative function and delivery of projects and services. The new facility is project to open in
March 2022.
Purchased, exchanged, or received gifts of 686 acres of land valued at $7.87 million dollars:
Acquired a 54% undivided interest of the 600-acre South Cowell property as an addition to
Purisima Creek Redwoods Preserve with exclusive possession of the 371-acre upland area from
Peninsula Open Space Trust (POST).
Partnered with POST to purchase a 182-acre property from San Jose Water Company as an
addition to El Sereno Preserve.
Purchased the 130-acre Billingsley property as an addition to the Loma Prieta area of the Sierra
Azul Preserve.
Purchased the 2.46-acre Riser-Nelson property adjacent to the South Cowell property as an
addition to Purisima Creek Redwoods Preserve.
Relevant Financial Policies
Budget Policy
The District follow best practices in budgeting, including: assessment of constituent needs, development
of long range plans, adherence to budget preparation and adoption procedures, monitoring of performance,
and adjustment of budget as required. The District budget is divided into four categories: Operating
Budget, Capital Budget, Land and Associated Costs, and Debt Service. The budget is prepared and adopted
on a cash-basis, whereas the annual financial statements are prepared on a modified accrual basis. The
budget can be amended during the year, in accordance with the Board Budget and Expenditure Policy which
states that increases to any of the four budget categories must be approved by the Board.
Investment Policy
The District’s Investment Policy is adopted annually, in accordance with State law. The policy provides
guidance and direction for the prudent investment of District funds to safeguard the principal of invested
funds and achieve a return on funds while ensuring the liquidity needs of the District. The ultimate goal is
to maximize the efficiency of the District’s cash management system, and to enhance the economic status
of the District, while protecting its pooled cash.
The investment of funds is governed by the California Government Code Section 53601 et seq., and by
California Government Code Section 53630 et seq. Funds on deposit in banks must be federally insured or
collateralized in accordance with the provisions of California Government Code Section 53630 et seq.
Fund Balance Policy
The Board of Directors adopted the Fund Balance Policy in 2014, and updated the Policy in 2017 to achieve
the following goals: provide adequate funding to meet the District’s short-term and long-term plans;
provide funds for unforeseen expenditures related to emergencies such as natural disasters; strengthen the
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District’s financial stability against present and future uncertainties such as economic downturns and
revenue shortfalls; and maintain an investment-grade bond rating. This policy has been developed with the
counsel of the District’s independent auditors, to meet the requirements of GASB 54.
The components of the District fund balances are as follows:
Non-Spendable fund balance includes amounts that cannot be spent either because they are not in
spendable form, e.g. prepaid insurance, or because of legal or contractual constraints. At all times,
the District shall hold fund balance equal to the sum of its non-spendable assets.
Restricted fund balance includes amounts that are constrained for specific purposes which are
externally imposed by constitutional provisions, enabling legislation, creditors, or contracts.
Committed fund balance includes amounts that are constrained for specific purposes that are
internally imposed by the District Board of Directors. Funds spent from committed funds shall be
reimbursed from the general fund within two years.
Assigned fund balance includes amounts that are intended to be used for specific purposes that are
neither restricted nor committed. Such amounts may be assigned by the General Manager if
authorized by the Board of Directors to make such designations. Projects to be funded by assigned
funds require the approval of the General Manager. Funds spent from assigned funds shall be
reimbursed from the general fund within two years.
Unassigned fund balance includes amounts within the general fund which have not been classified
within the above categories. The Board shall designate the minimum amount of unassigned fund
balance which is to be held in reserve in consideration of unanticipated events that could adversely
affect the financial condition of the District and potentially jeopardize the continuation of necessary
public services. The current minimum unassigned fund balance is 30% of the Budgeted General
Fund Tax Revenue.
Debt Management Policy
The Board of Directors adopted a debt management policy on July 12, 2017. The stated purpose of the
Debt Management Policy is to establish the overall parameters for issuing, structuring and administering
the debt of the District in compliance with applicable federal and State securities laws. The Debt
Management Policy was developed in conjunction with the procedures for Initial and Continuing Disclosure
Relating to Bond Issuances, with the latter ensuring that statements or releases of information
to the public and investors relating to the finances of the District are complete, true and accurate in all
material respects.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement to the District for its Annual Comprehensive Financial Report for the Fiscal
Year Ended June 30, 2020. This was the fourth consecutive year that the District received this prestigious
national award. The Certificate of Achievement is the highest form of recognition in governmental
accounting and financial reporting. To receive the award, the District must publish an Annual
Comprehensive Financial Report that is easily readable and efficiently organized, and the contents of the
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report must conform to program standards and satisfy generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for one year. We believe that
our current report continues to conform to the Certificate requirements, and we are submitting it to the
GFOA for another award of the certificate.
ACKNOWLEDGEMENTS
The preparation of this Annual Comprehensive Financial Report could not have been completed without
the efforts and contributions of its administrative staff, as well as other departments across the District.
Management also wishes to acknowledge the invaluable assistance of Chavan & Associates, the District’s
independent auditors who contributed to the preparation of this Annual Comprehensive Financial Report.
Lastly, we wish to acknowledge the District’s Board of Directors for their continued interest in support of
the District’s effort to improve and strengthen its financial operations and reporting.
Respectfully submitted,
/s/Stefan Jaskulak /s/ Ana Maria Ruiz
Stefan Jaskulak Ana Maria Ruiz
Chief Financial Officer/ General Manager
Director of Administrative Services
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Board of Directors and Management
District Wards Left to right: Zoe Kersteen-Tucker, Curt Riffle, Yoriko Kishimoto, Jed Cyr, Karen Holman, Larry
Hassett, Pete Siemens.
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Pete Siemens Ward 1: Cupertino, Los Gatos, Monte Sereno, Saratoga——————————————————————————––––––––––––————————————————————————————————
Yoriko Kishimoto–Board Treasurer Ward 2: Cupertino, Los Altos, Los Altos Hills, Palo Alto, Stanford, Sunnyvale ——————————————————————————––––––––––––————————————————————————————————
Jed Cyr Ward 3: Sunnyvale ——————————————————————————––––––––––––————————————————————————————————
Curt Riffle–Board President Ward 4: Los Altos, Mountain View ——————————————————————————––––––––––––————————————————————————————————
Karen Holman Ward 5: East Palo Alto, Menlo Park, Palo Alto, Stanford——————————————————————————––––––––––––————————————————————————————————
Larry Hassett–Board Secretary Ward 6: Atherton, La Honda, Loma Mar, Menlo Park, Pescadero,
Portola Valley, Redwood City, San Gregorio, Woodside——————————————————————————––––––––––––————————————————————————————————
Zoe Kersteen-Tucker–Board Vice Ward 7: El Granada, Half Moon Bay, Montara, Moss Beach, Princeton,
President Redwood City, San Carlos, Woodside——————————————————————————––––––––––––————————————————————————————————
Executive Management
Ana María Ruiz–General Manager
Hilary Stevenson–General Counsel
Mike Foster–Controller
Susanna Chan–Assistant General Manager/Project Planning and Delivery
Brian Malone–Assistant General Manager/Visitor and Field Services
Stefan Jaskulak–Chief Financial Officer/Director of Administrative Services
Mission Statement——————————————————————————––––––––––––——————————————————————————————
To acquire and preserve a regional greenbelt of open space land in perpetuity, protect and restore the
natural environment, and provide opportunities for ecologically sensitive public enjoyment and education.
Coastside Protection Mission Statement——————————————————————————––––––––––––——————————————————————————————
To acquire and preserve in perpetuity open space land and agricultural land of regional significance,
protect and restore the natural environment, preserve rural character, encourage viable agricultural use
of land resources, and provide opportunities for ecologically sensitive public enjoyment and education.
Organizational Chart
Public
Board of
Directors ControllerGeneral
Counsel
General
Manager
Public Affairs
Department
Executive Assistant/
Deputy District Clerk
District Clerk/Assistant
to the General Manager
Project Planning and Delivery
Assistant General Manager
Planning
Department
Real
Property
Department
Engineering
and
Construction
Department
Visitor and Field Services
Assistant General Manager
Visitor
Services
Department
Land and
Facilities
Department
Natural
Resources
Department
Finance and Administrative
Services
CFO-Director of
Administrative Services
Budget and
Analysis
Department
Information
Systems and
Technology
Department
Finance
Department
Human
Resources
Department
Midpen At-A-Glance
Founded in 1972 More Than 65,000
Acres Preserved
245 Miles of Trails 26 Preserves
183 Full-Time
Employees
Over 2 Million
Visitors Per Year
$89.6 Million
Budget
770,000
Residents
Regional Map
Achievement Award
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Financial Section
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15105 Concord Circle, Ste. 130, Morgan Hill, CA
Tel: 408-217-8749 • E-Fax: 408-872-4159
info@cnallp.com • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
of the Midpeninsula Regional Open Space District
Los Altos, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each
major fund for Midpeninsula Regional Open Space District (the District), as of and for the year ended
June 30, 2021, and the related notes to the financial statements, which collectively comprise the
District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
The District’s management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes 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.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the District’s
preparation and fair presentation of the financial statements 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 the District’s internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
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15105 Concord Circle, Ste. 130, Morgan Hill, CA
Tel: 408-217-8749 • E-Fax: 408-872-4159
info@cnallp.com • www.cnallp.com
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the District, as of
June 30, 2021, and the respective changes in financial position and for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information for the general fund,
schedule of pension plan contributions, schedule of net pension liability proportionate share, schedule
of contributions for postemployment benefits, and schedule of changes in net OPEB liability, as listed
in the table of contents, be presented to supplement the basic financial statements. Such information,
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 have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, 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 District’s basic financial statements. The introductory section, budgetary
comparison information for the capital projects funds and the debt service fund, the schedule of
program expenditures for the Measure AA Bond Program, and the statistical sections are presented
for purposes of additional analysis and are not a required part of the basic financial statements.
The schedule of program expenditures for the Measure AA Bond Program 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. Such 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 auditing standards generally accepted in the
United States of America. In our opinion, the schedule of program expenditures for the Measure AA
Bond Program is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
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15105 Concord Circle, Ste. 130, Morgan Hill, CA
Tel: 408-217-8749 • E-Fax: 408-872-4159
info@cnallp.com • www.cnallp.com
The introductory section, budgetary comparison information for the capital projects funds and the
debt service fund, and statistical sections included have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion
or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated November
22, 2021 on our consideration of the District’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 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 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 the District’s
internal control over financial reporting and compliance.
November 22, 2021
San Jose, California
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Management’s Discussion and Analysis
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Midpeninsula Regional Open Space District
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021
INTRODUCTION
The purpose of the Management’s Discussion and Analysis (MD&A) is to present a discussion and analysis of the
District’s financial performance during the year ended on June 30, 2021. This report will (1) focus on significant
financial issues, (2) provide an overview of the District’s financial activity, (3) identify changes in the District’s
financial position, (4) identify any individual fund issues or concerns, and (5) provide descriptions of significant asset
and debt activity. This information, presented in conjunction with the annual Basic Financial Statements, is intended to
provide a comprehensive understanding of the District’s operations and financial standing.
Required Components of the Annual Financial Report
OVERVIEW AND USE OF THE FINANCIAL STATEMENTS
This annual report consists of a series of basic financial statements and notes. The statements are organized so the
reader can understand the District as an entire operating entity by providing an increasingly detailed look at specific
financial activities.
The Statement of Net Position and Statement of Activities is comprised of the government-wide financial statements
and provides information about the activities of the District as a whole, presenting both an aggregate view of the
District’s finances as well as a longer-term view of those finances. Fund Financial Statements provide the next level of
detail. For governmental funds, these statements reflect how services were financed in the short-term as well as what
remains for future spending. The Basic Financial Statements also include notes that explain some of the information in
the financial statements and provide more detailed data.
The full annual financial report is a product of three separate parts: the basic financial statements, supplementary
information, and this section, the Management’s Discussion and Analysis. The three sections together provide a
comprehensive financial overview of the District. The basic financials are comprised of two kinds of statements that
present financial information from different perspectives, government-wide and fund statements.
Government-wide financial statements, which comprise the first two statements, provide both short-term and long-
term information about the District’s overall financial position.
Individual parts of the District, which are reported as fund financial statements, focus on reporting the District’s
operations in more detail. These fund financial statements comprise the remaining statements.
Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
Page 21
Midpeninsula Regional Open Space District
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021
Notes to the financial statements, provide more detailed data and provide explanations to some of the information
in the statements. The required supplementary information section provides further explanations and additional
support for the financial statements.
GOVERNMENT-WIDE FINANCIAL STATEMENTS - STATEMENT OF NET POSITION AND THE STATEMENT OF
ACTIVITIES
The view of the District as a whole looks at all financial transactions and asks the question, “How did we do financially
during the fiscal year 2020-2021. The Statement of Net Position and the Statement of Activities answers this question.
These statements include all assets and liabilities using the accrual basis of accounting similar to the accounting
practices used by most private-sector companies. This basis of accounting takes into account all of the current year
revenues and expenses regardless of when cash is received or paid.
These two statements report the District’s net position and changes in net position. This change in net position is
important because it tells the reader that, for the District as a whole, whether the financial position of the District has
improved or diminished. The causes of this change may be the result of many factors, some financial, and some not.
Non-financial factors include the District’s property tax base, current property tax laws in California restricting revenue
growth, facility conditions and other factors.
In the Statement of Net Position and the Statement of Activities, the District reports governmental activities which
reflect the District’s programs and services. The District does not have any business type activities.
FINANCIAL HIGHLIGHTS
As the overall economy continued to grow throughout the Silicon Valley, the District witnessed further strong growth
in the assessed valuation of both secured and unsecured property within its boundaries. The 2019-20 assessed
valuation reports released in August 2019 showed District-wide assessed values increasing by 9.3% (6.3% in Santa
Clara and 16.7% in San Mateo). The District received 67% of its tax revenue from Santa Clara County and 33% from
San Mateo County.
Other financial highlights included:
Tax revenue related to the GO bonds amounted to $5.4 million.
Purchased $24.5 million in land and associated structures funded through bonds, taxes and grants.
The District recorded deferred outflows of resources of $4,933,749 and deferred inflows of resources of
$2,042,143 as required by GASB 68 and GASB 75 for pension and other postemployment benefit accounting
and reporting. Deferred outflows of resources are technically not assets but increase the Statement of Net
Position similar to an asset and deferred inflows of resources are technically not liabilities but decrease the
Statement of Net Position similar to liabilities. See Note 1 in the notes to financial statements for a definition.
The District’s Section 115 irrevocable trust for pension liabilities held with the Public Agency Retirement
Services (PARS) had a value of $6,374,997 at year end.
Fully funded the District’s other postemployment benefits plan according to the actuarially determined
contribution for current year, as noted in the schedule of contribution for postemployment benefits.
The assets and deferred outflows of resources of the District exceeded liabilities and deferred inflows of resources at
the close of the 2021 fiscal year by $415 million. Of this total net position, $383 million, or 92%, was the District’s net
investment in capital assets (capital assets net of related debt).
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Midpeninsula Regional Open Space District
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021
REPORTING THE DISTRICT’S MOST SIGNIFICANT FUNDS
Fund Financial Statements
Fund financial reports provide detailed information about the District’s major funds. The District uses one operating
fund, the General Fund, to account for a multitude of financial transactions, two capital project funds to account for
capital projects, and one debt service fund to account for debt service payments.
Governmental Funds
The General Fund is a governmental fund type and is reported using an accounting method called modified accrual
accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental
fund statements provide a detailed short-term view of the District’s general government operations and the basic
services it provides. Governmental fund information helps determine whether there are more or fewer financial
resources that can be spent in the future to finance educational programs. The relationship (or differences) between
governmental activities (reported in the Statement of Net position and the Statement of Activities) and governmental
funds is reconciled in the financial statements.
THE DISTRICT AS A WHOLE
Recall that the Statement of Net Position provides the perspective of the District as a whole. Table 1 provides a
summary of the District’s net position as compared to last period:
Percentage
2021 2020 Change Change
Assets
Current Assets 103,800,970$ 105,437,703$ (1,636,733)$ -1.55%
Other Noncurrent Assets 431,464 488,551 (57,087) -11.68%
Capital Assets 547,306,791 526,101,317 21,205,474 4.03%
Total Assets 651,539,225$ 632,027,571$ 19,511,654$ 3.09%
Total Deferred Outflows of Resources 12,639,201$ 13,272,759$ (633,558)$ -4.77%
Liabilities
Current Liabilities 18,126,035$ 16,110,600$ 2,015,435$ 12.51%
Noncurrent Liabilities 228,565,745 235,321,577 (6,755,832) -2.87%
Total Liabilities 246,691,780$ 251,432,177$ (4,740,397)$ -1.89%
Total Deferred Inflows of Resources 2,042,143$ 1,786,447$ 255,696$ 14.31%
Net Position
Net Investment in Capital Assets 382,787,610$ 371,186,303$ 11,601,307$ 3.13%
Restricted 5,730,667 6,277,961 (547,294) -8.72%
Unrestricted 26,926,226 14,617,442 12,308,784 84.21%
Total Net Position 415,444,503$ 392,081,706$ 23,362,797$ 5.96%
Table 1 - Summary of Statement of Net Position
Total net position increased by $23.4 million, as revenues exceeded expenses. Current assets decreased mainly due to
the use of cash and investments to pay for capital outlay and retirement of long-term debt. Capital assets increased by
$21.2 million mostly from the purchase of land and related infrastructure. Principal payments on outstanding bonds and
promissory notes were the main reason for the $6.8 million decrease in noncurrent liabilities.
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Midpeninsula Regional Open Space District
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021
Table 2 shows the changes in net position for 2021 as compared to period 2020.
Percentage
2021 2020 Change Change
Revenues
Program revenues 5,178,497$ 5,948,662$ (770,165)$ -12.95%
General revenues:
Property taxes 62,476,170 57,250,664 5,225,506 9.13%
Investment earnings 1,978,944 2,307,193 (328,249) -14.23%
Miscellaneous 975,559 1,556,894 (581,335) -37.34%
Total Revenues 70,609,170 67,063,413 3,545,757 5.29%
Program Expenses
Land preservation 38,861,076 32,482,326 6,378,750 19.64%
Interest 8,355,566 9,873,539 (1,517,973) -15.37%
Total Expenses 47,216,642 42,355,865 4,860,777 11.48%
Change in Net Position 23,392,528 24,707,548 (1,315,020) -5.32%
Adjustments to Beginning Net Position (29,731) - (29,731) 100.00%
Beginning Net Position 392,081,706 367,374,158 24,707,548 6.73%
Ending Net Position 415,444,503$ 392,081,706$ 23,362,797$ 5.96%
Table 2 - Summary of Changes in Net Position
There was an increase in change in net position of $23.4 million, as revenues exceeded expenses. Property taxes
increased because property values in Santa Clara and San Mateo Counties increased during the assessment period by
approximately 9%. Expenses increased mostly because of higher pension and OPEB expenses from valuation
adjustments and benefits payments.
THE DISTRICT’S FUND BALANCE
Table 3 provides an analysis of the District’s fund balances and the total change in fund balances from the prior year.
Measure AA Debt
General Capital GF Capital Service Percentage
Fund Projects Fund Projects Fund Fund Total 2020 Change
Nonspendable for prepaid expenditure 291,297$ -$ -$ -$ 291,297$ 205,929$ 41%
Restricted for debt service - - - 4,229,931 4,229,931 4,813,811 -12%
Restricted for Measure AA Projects - 22,134,964 - - 22,134,964 32,301,379 -31%
Restricted for Hawthorn maintenance 1,500,736 - - - 1,500,736 1,464,150 2%
Restricted for capital projects - - 482,524 - 482,524 6,843,580 -93%
Restricted for pension 6,374,997 - - - 6,374,997 4,063,202 57%
Committed for infrastructure 17,187,084 - - - 17,187,084 18,618,465 -8%
Committed for equipment replacement 3,000,000 - - - 3,000,000 3,000,000 0%
Committed for capital maintenance 7,250,000 - - - 7,250,000 5,000,000 45%
Committed for future acquisitions
and capital projects 11,950,000 - - - 11,950,000 6,000,000 99%
Committed for promissory note 1,200,000 - - - 1,200,000 900,000 33%
Assigned for ongoing projects 2,891,390 - - - 2,891,390 710,000 307%
Unassigned 17,973,643 - - - 17,973,643 16,978,717 6%
Total Fund Balance 69,619,147$ 22,134,964$ 482,524$ 4,229,931$ 96,466,566$ 100,899,233$ -4%
Table 3 - Summary of Fund Balance (All Governmental Funds)
2021
In accordance with the District’s thirty-year strategic plan, the Board of Directors committed an additional $5.95
million in 2021 for future acquisitions and capital projects. This was an increase to its existing reserves for
Page 24
Midpeninsula Regional Open Space District
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021
infrastructure, equipment replacement, and capital maintenance. See Note 1 in the notes to the basic financial
statements of the audit report for a description of each commitment.
The fund balances restricted for debt service in the Debt Service Fund, Measure AA Capital Projects, and Capital
Projects decreased by 12%, 31%, and 93%, respectively due to debt service payments in the Debt Service Fund and on-
going capital projects in the Measure AA fund and Capital Projects fund during the year ended June 30, 2021. The fund
balance restricted for pensions in the General Fund increased by 57% as the District made additional contributions to
the PARS section 115 trust for future pension payments. The fund balance committed for promissory notes in the
General Fund increased by 33% as the District committed more towards the future debt service payments. The fund
balance assigned for ongoing projects in the General Fund increased by 307% based on the status of on-going projects
and related construction contracts as of June 30, 2021.
GENERAL FUND BUDGETING HIGHLIGHTS
The District’s budget is prepared according to California law and in the modified accrual basis of accounting.
During the course of 2021, the District revised its General Fund budget, which resulted in a decrease in budgeted
expenditures of $283,350 from the original to final budget. The revenue was revised from $56.9 million to $58.96
million due to an increase in property taxes. A summary of the original and final budget is presented below:
Final Budget
vs.
Original Budget Final Budget Change Actuals Actuals
Revenues
Property taxes 53,487,274$ 55,689,641$ 2,202,367$ 57,048,132$ 1,358,491$
Grant revenues 293,500 150,000 (143,500) 195,085 45,085
Property management 1,729,450 1,729,450 - 2,297,444 567,994
Investment earnings 907,760 907,760 - 1,810,659 902,899
Other revenues 486,761 486,761 - 975,559 488,798
Total Revenues 56,904,745 58,963,612 2,058,867 62,326,879 3,363,267
Expenditures
Salaries and employee benefits 25,633,171 25,715,171 82,000 24,947,275 767,896
Services and supplies 11,202,854 10,885,504 (317,350) 8,743,629 2,141,875
Capital outlay 48,000 - (48,000) - -
Total Expenses 36,884,025 36,600,675 (283,350) 33,690,904 2,909,771
Excess of Revenues over Expenditures 20,020,720 22,362,937 1,775,517 28,635,975 6,273,038
Transfers in (out)(20,120,191) (20,120,191) - (15,916,159) 4,204,032
Net Change in Fund Balance (99,471)$ 2,242,746$ 1,775,517$ 12,719,816$ 10,477,070$
Table 4 - Summary of Original to Final Budgets
Page 25
Midpeninsula Regional Open Space District
Management’s Discussion and Analysis
For the Fiscal Year Ended June 30, 2021
CAPITAL ASSETS
Table 5 shows 2021 capital asset balances as compared to 2020.
Percentage
2021 2020 Change Change
Land 458,284,610$ 450,098,759$ 8,185,851$ 1.82%
Construction-in-Progress 22,146,971 17,313,507 4,833,464 27.92%
Structure and Improvements 21,913,178 19,118,187 2,794,991 14.62%
Infrastructure 42,850,497 37,093,321 5,757,176 15.52%
Equipment 973,781 1,092,107 (118,326) -10.83%
Vehicles 1,137,754 1,385,436 (247,682) -17.88%
Total Capital Assets - Net 547,306,791$ 526,101,317$ 21,205,474$ 4.03%
Table 5 - Summary of Capital Assets Net of Depreciation
Additional detail and information on capital asset activity is described in the notes to the financial statements, note 5.
LONG TERM LIABILITIES
Table 6 summarizes the changes in long-term liabilities from 2021 to 2020.
Percentage
2021 2020 Change Change
Promissory Notes 36,985,399$ 37,938,606$ (953,207)$ -2.51%
Bonds 182,409,892 190,555,234 (8,145,342) -4.27%
Net Pension Liability 13,470,046 11,828,627 1,641,419 13.88%
Net OPEB Liability 1,379,753 1,500,844 (121,091) -8.07%
Compensated Absences 2,905,282 2,777,151 128,131 4.61%
Total Long-term Liabilities 237,150,372$ 244,600,462$ (7,450,090)$ -3.05%
Table 6 - Summary of Long-term Liabilities
Additional detail and information on long-term liabilities activity is described in the notes to the financial statements,
note 6.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The Board of Directors adopted the District’s budget for fiscal year 2021-22 on June 9, 2021. This budget assumes
$69.2 million in revenues and a growth in general fund property tax income of 8.02% over the prior year’s adopted
budget. This budget funds $36.0 million of capital spending, of which $8.7. million is expected to qualify for
reimbursement from Measure AA GO bond funds. General Fund operating expenditures are budgeted at $38.1. million,
a 8.92% increase over the prior year’s adopted budget. Debt service is budgeted at $16.0 million, with $5.3 million
related to the Measure AA general obligation bonds. If all revenues, expenditures (including debt service) occur as
budgeted, the District’s overall cash balances would increase by approximately $0.5 million.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, parents, participants, investors and creditors with a
general overview of the District’s finances and to demonstrate the District’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 Administrative Office, Midpeninsula Regional Open Space District, 330 Distel Circle, Los
Altos, California 94022.
Page 26
Basic Financial Statements
Page 27
Page Intentionally Left Blank
Page 28
The Statement of Net Position and the Statement of Activities summarize the entire District’s financial activities
and financial position. They are prepared on the same basis as is used by most businesses, which means they
include all the District’s assets and all its liabilities, as well as all its revenues and expenses. This is known as the
full accrual basis. The effect of all of the District’s transactions is taken into account, regardless of whether or
when cash changes hands, but all material internal transactions between District funds have been eliminated.
The Statement of Net Position reports the difference between the District’s total assets and the District’s total
liabilities, including all the District’s capital assets and all its long-term debt. The Statement of Net Position
presents information in a way that focuses the reader on the composition of the District’s net position, by
subtracting total liabilities from total assets.
The Statement of Net Position summarizes the financial position of all of the District’s Governmental Activities
in a single column. The District’s Governmental Activities include the activities of its General Fund, along with
all its Special Revenue Funds, Capital Projects Funds, and Debt Service Funds.
The Statement of Activities reports increases and decreases in the District’s net position. It is also prepared on the
full accrual basis, which means it includes all the District’s revenues and all its expenses, regardless of when cash
changes hands. This differs from the “modified accrual” basis used in the Fund financial statements, which
reflect only current assets, current liabilities, available revenues and measurable expenditures.
The Statement of Activities presents the District’s expenses first, listed by program. Program revenues – that is,
revenues which are generated directly by these programs - are then deducted from program expenses to arrive at
the net expense of each governmental program. The District’s general revenues are then listed in the
Governmental Activities and the Change in Net Position is computed and reconciled with the Statement of Net
Position.
Both these Statements include the financial activities of the District and the Midpeninsula Regional Open Space
District Financing Authority. This entity is legally separate but is a component unit of the District because it is
t ll d b th Di t i t hi h i fi i ll t bl f th A th it ’ ti iti
GOVERNMENT-WIDE STATEMENTS
Statement of Net Position and Statement of Activities
Page 29
Assets
Current assets:
Cash and investments 103,028,263$
Accounts receivable:
Interest 5,872
Other 101,667
Taxes receivable 345,073
Other current assets 320,095
Total current assets 103,800,970
Noncurrent assets:
Notes receivable 71,728
Unamortized issuance costs 359,736
Non-depreciable capital assets 480,431,581
Capital assets, net of depreciation 66,875,210
Total noncurrent assets 547,738,255
Total Assets 651,539,225$
Deferred Outflows of Resources
OPEB adjustments 847,395$
Pension adjustments 4,086,354
Deferred loss on early retirement of long-term debt 7,705,452
Total Deferred Outflows of Resources 12,639,201$
Liabilities
Current liabilities:
Accounts payable 5,821,678$
Deposits payable 60,584
Payroll and other liabilities 1,452,142
Accrued interest 2,207,004
Current portion of long-term liabilities 8,584,627
Total current liabilities 18,126,035
Noncurrent liabilities:
Long-term liabilities - net of current portion 228,565,745
Total Liabilities 246,691,780$
Deferred Inflows of Resources
OPEB adjustments 231,079$
Pension adjustments 1,811,064
Total Deferred Inflows of Resources 2,042,143$
Net Position
Net investment in capital assets 382,787,610$
Restricted for:
Debt service 4,229,931
Hawthorne maintenance 1,500,736
Total restricted 5,730,667
Unrestricted 26,926,226
Total Net Position 415,444,503$
Midpeninsula Regional Open Space District
Statement of Net Position
June 30, 2021
The notes to the financial statements are an integral part of this statement.
Page 30
Net (Expense)
Capital Revenue and
Charges for Grants and Changes in
Expenses Services Contributions Net Position
Governmental activities
Land preservation 38,861,076$ 2,297,444$ 2,881,053$ (33,682,579)$
Interest and fiscal charges 8,355,566 - - (8,355,566)
Total governmental activities 47,216,642$ 2,297,444$ 2,881,053$ (42,038,145)
General revenues and special item
Property taxes 62,476,170
Investment earnings 1,978,944
Other revenues 975,559
Total general revenues and special item 65,430,673
Change in net position 23,392,528
Net position beginning 392,081,706
Prior period adjustments (29,731)
Net position beginning as adjusted 392,051,975
Net position ending 415,444,503$
Midpeninsula Regional Open Space District
Statement of Activities
For the Fiscal Year Ended June 30, 2021
Program Revenues
The notes to the financial statements are an integral part of this statement.
Page 31
Page Intentionally Left Blank
Page 32
Fund Title Fund Description
General Fund The fund is the general operating fund of the District. It is used to
account for all financial resources. The major revenue sources for this
fund are property taxes, grant revenues and interest income.
Expenditures are made for land preservation and other operating
expenditures.
Measure AA Capital Projects Fund This fund is used to account for resources from bond proceeds and
expenditures for capital projects related to the Measure AA GO Bond.
GF Capital Projects Fund This fund is used to account for expenditures for capital projects not
related to any other capital projects funds.
Debt Service Fund This fund is used to account for accumulation of resources for, and the
payment of long-term debt principal, interest and related costs.
Resources are provided by General Fund transfers and interest income
on unspent funds.
FUND FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the District.
Page 33
Measure AA GF Capital Debt Total
General Capital Projects Service Governmental
Fund Projects Fund Fund Fund Funds
Assets
Cash and investments 74,592,801$ 23,662,618$ 482,524$ 4,290,320$ 103,028,263$
Receivables:
Interest 5,872 - - - 5,872
Other 101,667 - - - 101,667
Taxes receivable 311,336 - - 33,737 345,073
Other current assets 320,095 - - - 320,095
Due from other funds 1,134,326 - 4,251,349 - 5,385,675
Notes receivable 71,728 - - - 71,728
Total Assets 76,537,825$ 23,662,618$ 4,733,873$ 4,324,057$ 109,258,373$
Liabilities
Liabilities:
Accounts payable 1,121,799$ 448,530$ 4,251,349$ -$ 5,821,678$
Deposits payable 60,584 - - - 60,584
Due to other funds 4,251,349 1,040,200 - 94,126 5,385,675
Payroll and other liabilities 1,413,218 38,924 - - 1,452,142
Total Liabilities 6,846,950 1,527,654 4,251,349 94,126 12,720,079
Deferred Inflows of Resources
Unavailable revenues 71,728 - - - 71,728
Fund Balance
Nonspendable:
Prepaid expenditures 291,297 - - - 291,297
Restricted for:
Debt service - - - 4,229,931 4,229,931
Measure AA capital projects - 22,134,964 - - 22,134,964
Hawthorn maintenance 1,500,736 - - - 1,500,736
Capital projects - - 482,524 - 482,524
Pension 6,374,997 - - - 6,374,997
Committed for:
Infrastructure 17,187,084 - - - 17,187,084
Equipment replacement 3,000,000 - - - 3,000,000
Capital maintenance 7,250,000 - - - 7,250,000
Future acquisitions and capital
projects 11,950,000 - - - 11,950,000
Promissory note 1,200,000 - - - 1,200,000
Assigned for:
Ongoing Projects 2,891,390 - - - 2,891,390
Unassigned 17,973,643 - - - 17,973,643
Total Fund Balance 69,619,147 22,134,964 482,524 4,229,931 96,466,566
Total Liabilities, Deferred Inflows
of Resources, and Fund Balance 76,537,825$ 23,662,618$ 4,733,873$ 4,324,057$ 109,258,373$
Balance Sheet
Midpeninsula Regional Open Space District
June 30, 2021
Governmental Funds
The notes to the financial statements are an integral part of this statement.
Page 34
Total fund balance - governmental funds 96,466,566$
Amounts reported in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported as assets in governmental funds.
Capital assets at cost 573,966,696$
Accumulated depreciation (26,659,905) 547,306,791
Principal on notes receivables are recorded as unearned revenue in the funds, which upon
collection is a current financial resource. In the government-wide financial statements,
repayment of the principal amount does not generate revenue in the statement of activities;
therefore, unearned revenue is not recorded. 71,728
The difference between OPEB plan assumptions and estimates versus actuals are not included in the
plan's actuarial study until the next fiscal year and are reported as deferred outflows or
inflows of resources in the statement of net position.616,316
The difference between pension plan assumptions and estimates versus actuals are not included in the
plan's actuarial study until the next fiscal year and are reported as deferred outflows or
inflows of resources in the statement of net position.2,275,290
Interest payable on long-term debt does not require the use of current financial resources and,
therefore, is not reported in the governmental funds.(2,207,004)
Discounts and premiums related to bond issues are recorded as other financing
sources and uses in the fund financial statements but are recorded as assets or liabilities
and amortized over the life of the bond in the statement of net position:
Premium 23,025,515$
Issuance cost (359,736) (22,665,779)
Deferred loss on early retirement of long-term debt is recorded in the Statement of Net Position as a deferred
outflow of resources and amortized on a straight line basis over the original life of the defeased bond.7,705,452
Long-term liabilities are not due and payable in the current year and therefore are not reported
as liabilities in the funds. Long-term liabilities at year-end consists of:
Bonds 164,235,000
Net pension liability 13,470,046
Promissory notes 32,134,776
Compensated absences 2,905,282
Net OPEB liability 1,379,753 (214,124,857)
Total net position - governmental activities 415,444,503$
Midpeninsula Regional Open Space District
Balance Sheet to the Statement of Net Position
June 30, 2021
Reconciliation of the Governmental Fund
The notes to the financial statements are an integral part of this statement.
Page 35
Measure AA GF Capital Debt Total
General Capital Projects Service Governmental
Fund Projects Fund Fund Fund Funds
Revenues:
Property taxes 57,048,132$ -$ -$ 5,428,038$ 62,476,170$
Grant income 195,085 2,482,991 196,000 6,977 2,881,053
Property management 2,297,444 - - - 2,297,444
Investment earnings 1,810,659 96,799 31,952 39,534 1,978,944
Other revenues 978,340 - - - 978,340
Total revenues 62,329,660 2,579,790 227,952 5,474,549 70,611,951
Expenditures:
Current:
Land preservation:
Salaries and employee benefits 24,947,275 543,264 - - 25,490,539
Services and supplies 8,743,629 - - - 8,743,629
Capital outlay - 11,862,954 12,276,840 - 24,139,794
Debt service:
Principal - - - 8,395,000 8,395,000
Interest - - - 8,245,925 8,245,925
Total expenditures 33,690,904 12,406,218 12,276,840 16,640,925 75,014,887
Excess (deficiency) of revenues
over (under) expenditures 28,638,756 (9,826,428) (12,048,888) (11,166,376) (4,402,936)
Other financing sources (uses):
Transfers in - - 5,644,822 10,582,496 16,227,318
Transfers out (15,916,159) (311,159) - - (16,227,318)
Total other financing sources (uses) (15,916,159) (311,159) 5,644,822 10,582,496 -
Net changes in fund balance 12,722,597 (10,137,587) (6,404,066) (583,880) (4,402,936)
Fund balance beginning 56,940,463 32,301,379 6,843,580 4,813,811 100,899,233
Prior period adjustment (43,913) (28,828) 43,010 - (29,731)
Fund balance beginning - as adjusted 56,896,550 32,272,551 6,886,590 4,813,811 100,869,502
Fund balance ending 69,619,147$ 22,134,964$ 482,524$ 4,229,931$ 96,466,566$
Midpeninsula Regional Open Space District
Statement of Revenues, Expenditures and Changes in Fund Balanc
Governmental Funds
For the Fiscal Year Ended June 30, 2021
The notes to the financial statements are an integral part of this statement.
Page 36
Total net change in fund balance - governmental funds (4,402,936)$
Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the
cost of those assets is allocated over their estimated useful lives as depreciation expense.
Capital asset additions 24,545,068$
Depreciation expense (3,339,594) 21,205,474
Repayment of notes receivable is reported as revenue in the governmental funds because financial resources
were received and available during the fiscal year. In the statement of net position, the payment reduces
the principal balance of notes receivable and does not generate revenue in the statement of activities.(2,781)
Accreted interest on capital appreciation bonds is not recorded in the governmental funds but is required
to be recorded under the accrual basis of accounting in the government wide financial statements.(534,303)
The governmental funds report debt proceeds as an other financing source, while repayment of debt principal is
reported as an expenditure. Interest is recognized as an expenditure in the governmental funds when it is due.
The net effect of these differences in the treatment of long-term debt and related items is as follows:
Debt service principal payments 8,395,000
Deferred loss on early retirement of long-term debt is amortized over the life of the debt in the statement of
activities. Amortization expense is not reported in the governmental funds.(845,125)
Prepaid issuance costs, discounts and premiums related to bond issues are recorded as other financing
sources and uses in the fund financial statements but are recorded as assets or liabilities
and amortized over the life of the bond in the statement of net position:
Amortization of issuance costs and premiums - net 1,183,542
In the Statement of Activities, compensated absences are measured by the amount earned during the year. In
governmental funds, however, expenditures for those items are measured by the amount of financial
resources used (essentially the amounts paid). This year, vacation earned exceeded the amounts used.(128,131)
In governmental funds, actual contributions to pension and OPEB plans are reported as expenditures in the
year incurred. However, in the government-wide statement of activities, only the current year pension
and OPEB expense as noted in the plans' valuation reports is reported as an expense, as adjusted for
deferred inflows and outflows of resources.(1,564,457)
Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds
because interest is recognized as an expenditure in the funds when it is due and thus requires the use of
current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest
accrues, regardless of when it is due.86,245
Change in net position of governmental activities 23,392,528$
Midpeninsula Regional Open Space District
Statement of Revenues, Expenditures and Changes in Fund Balance
For the Fiscal Year Ended June 30, 2021
Reconciliation of the Governmental Funds
to the Statement of Activities
The notes to the financial statements are an integral part of this statement.
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Page Intentionally Left Blank
Page 38
Notes to Financial Statements
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
A. General
The Midpeninsula Regional Open Space District (the District) was formed in 1972 to acquire and
preserve public open space land in northern and western portions of Santa Clara County. In June
1976, the southern and eastern portions of San Mateo County were annexed to the District. The
District annexed a small portion of the northern tip of Santa Cruz County in 1992. In September 2004,
the District completed the Coastside Protection Program, which extended the District boundaries to
the Pacific Ocean in San Mateo County, from the southern borders of Pacifica to the San Mateo/Santa
Cruz County line.
B. Accounting Principles
The accounting policies of the District conform to generally accepted accounting principles as
prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of
Certified Public Accountants (AICPA).
C. Reporting Entity
As required by generally accepted accounting principles, these basic financial statements present the
Midpeninsula Regional Open Space District and its component unit. The component unit discussed in
the following paragraph is included in the District's reporting entity because of the significance of
their operational or financial relationships with the District.
Blended Component Unit. The District and the County of Santa Clara entered into a joint exercise
of powers agreement dated May 1, 1996, creating the Midpeninsula Regional Open Space District
Financing Authority (the Authority), pursuant to the California Government Code. The District is
financially accountable for the Authority, as it appoints a voting majority of the governing board; is
able to impose its will in the Authority; and the Authority provides specific financial benefits to, and
imposes specific financial burdens on, the District. The Authority was formed for the sole purpose of
providing financing assistance to the District to fund the acquisition of land to preserve and use as
open space. As such, the Authority is an integral part of the District, and accordingly, all of the
Authority's activity is blended within the accompanying debt service fund.
D. Basis of Presentation
Government-wide Financial Statements:
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the activities of the District. The Statement of Net Position
reports all assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net
position.
The government-wide statements are prepared using the economic resources measurement focus. This
approach differs from the manner in which governmental fund financial statements are prepared.
Governmental fund financial statements, therefore, include the reconciliation with brief explanations
to better identify the relationship between the government wide statements and the statements for the
governmental funds.
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
The government-wide statement of activities presents a comparison between direct expenses and
program revenues for each function or program of the District’s governmental activities. Direct
expenses are those that are specifically associated with a service, program, or department and are
therefore clearly identifiable to a particular function. The District does not allocate indirect expenses
to functions in the statement of activities. Program revenues include charges paid by the recipients of
goods or services offered by a program, as well as grants and contributions that are restricted to
meeting the operational or capital requirements of a particular program. Revenues that are not
classified as program revenues are presented as general revenues of the District, with certain
exceptions. The comparison of direct expenses with program revenues identifies the extent to which
each governmental function is self-financing or draws from the general revenues of the District.
Fund Financial Statements:
Fund financial statements report detailed information about the District. The accounting and financial
treatment applied to a fund is determined by its measurement focus. All governmental funds are
accounted for using a flow of current financial resources measurement focus. With this measurement
focus, only current assets, deferred outflows, current liabilities and deferred inflows are generally
included on the balance sheet. The Statement of Revenues, Expenditures, and Changes in Fund
Balance for these funds present increases (i.e., revenues and other financing sources) and decreases
(i.e., expenditures and other financing uses) in net current assets.
E. Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized in the accounts and
reported in the financial statements. Government-wide financial statements are prepared using the
accrual basis of accounting. Governmental funds use the modified accrual basis of accounting.
Revenues - Exchange and Non-exchange Transactions:
Revenue resulting from exchange transactions, in which each party gives and receives essentially
equal value, is recorded under the accrual basis when the exchange takes place. On a modified accrual
basis, revenue is recorded in the fiscal period in which the resources are measurable and become
available. “Available” means the resources will be collected within the current fiscal period or are
expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal
period. For the District, “available” means collectible within the current period or within 90 days after
period-end.
Non-exchange transactions, in which the District receives value without directly giving equal value in
return, include property taxes, grants, and entitlements. Under the accrual basis, revenue from
property taxes is recognized in the fiscal period for which the taxes are levied. Revenue from grants
and entitlements is recognized in the fiscal period in which all eligibility requirements have been
satisfied. Eligibility requirements include timing requirements, which specify the period when the
resources are to be used or the fiscal period when use is first permitted; matching requirements, in
which the District must provide local resources to be used for a specific purpose; and expenditure
requirements, in which the resources are provided to the District on a reimbursement basis. Under the
modified accrual basis, revenue from non-exchange transactions must also be available before it can
be recognized.
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Deferred Outflows/Deferred Inflows:
A deferred outflow of resources is defined as a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expenses/expenditure) until then.
A deferred inflow of resources is defined as an acquisition of net position that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenues) until that time.
When applicable, unamortized portions of the gain and loss on refunding debt are reported as deferred
inflows and deferred outflows of resources, respectively. Deferred outflows and inflows of resources
are reported for the changes related to benefit plans. In addition, when an asset is recorded in
governmental fund financial statements but the revenue is not available, a deferred inflow of
resources is reported until such time as the revenue becomes available.
Unearned Revenue:
Unearned revenue arises when assets (such as cash) are received before revenue recognition criteria
have been satisfied. Grants and entitlements received before eligibility requirements (such as
qualified expenditures) are met are recorded as liabilities from unearned revenue.
Unavailable Revenue:
In the governmental fund financial statements, receivables associated with non-exchange transactions
that will not be collected within the availability period have been recorded as deferred inflows of
resources as unavailable revenue.
Expenses/Expenditures:
On the accrual basis of accounting, expenses are recognized at the time a liability is incurred. On the
modified accrual basis of accounting, expenditures are generally recognized in the accounting period
in which the related fund liability is incurred, as under the accrual basis of accounting. However,
under the modified accrual basis of accounting, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Allocations of cost, such as depreciation and amortization, are not recognized in the governmental
funds. When both restricted and unrestricted resources are available for use, it is the District’s policy
to use restricted resources first, then unrestricted resources as they are needed.
F. Fund Accounting
The accounts of the District are organized into four funds with a separate set of self-balancing
accounts that comprise of the District’s assets, deferred outflows, liabilities, deferred inflows, fund
balance, revenues, and expenditures. The District resources are allocated to and accounted for in
individual funds based upon the purpose for which they are to be spent and the means by which
spending activities are controlled.
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses
equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is
always a major fund. The District may also select other funds it believes should be presented as major
funds.
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
The District reported all of its funds as major governmental funds in the accompanying financial
statements:
General Fund. The General Fund is the general operating fund of the District. It is used to account
for all financial resources. The major revenue sources for this fund are property taxes, grant revenues
and interest income. Expenditures are made for land preservation and other operating expenditures.
Measure AA Capital Projects Fund. The Measure AA Capital Projects Fund is used to account for
resources from bond proceeds and expenditures for capital projects related to the Measure AA GO
Bond.
GF Capital Projects Fund. GF Capital Projects Fund is used to account for expenditures for capital
projects not related to any other capital projects funds.
Debt Service Fund. The Debt Service Fund is used to account for accumulation of resources for, and
the payment of long-term debt principal, interest and related costs. Resources are provided by tax
revenue, General Fund transfers, and interest income on unspent funds.
G. Budgets and Budgetary Accounting
The District's Board of Directors adopts an annual operating budget for the District by major fund, on
or before June 30, for the ensuing fiscal period. The Board of Directors may amend the budget by
resolution during the fiscal period. The legal level of control, the level at which expenditures may not
legally exceed the budget, is at the category level.
H. Assets, Liabilities, and Equity
1. Cash and Cash Equivalents
The District’s cash deposits are considered to be cash on hand and cash in banks. Cash and Cash
Equivalents are generally considered short-term, highly liquid investments with a maturity of
three months or less from the purchase date.
2. Investments
Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value
Measurement and Application. Accordingly, the change in fair value of investments is recognized
as an increase or decrease to investment assets and investment income. Fair value is defined as
the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction. In determining this amount, three valuation techniques are available:
• Market approach - This approach uses prices generated for identical or similar assets or
liabilities. The most common example is an investment in a public security traded in an
active exchange such as the NYSE.
• Cost approach - This technique determines the amount required to replace the current
asset. This approach may be ideal for valuing donations of capital assets or historical
treasures.
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
• Income approach - This approach converts future amounts (such as cash flows) into a
current discounted amount.
Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs
have been maximized in fair value measures, and unobservable inputs have been minimized.
3. Prepaid Expenditures
The District has the option of reporting expenditures in governmental funds for prepaid items
either when purchased or during the benefiting period. The District has chosen to report the
expenditure during the benefiting period.
4. Capital Assets
Capital assets, which include land, buildings and improvements, furniture, equipment, and
construction in progress, are reported in the government-wide financial statements. Capital assets
are valued at cost when historical records are available and at an estimated historical cost when
no historical records exist. Donated capital assets are valued at their acquisition value at the time
of acquisition plus ancillary charges, if any. Donated works of art and similar items and capital
assets received in service concession arrangements are reported at acquisition value. The District
utilizes a capitalization threshold of $1 for land, $25,000 for equipment, fixtures and vehicles,
$50,000 for infrastructure, improvements, buildings and structures.
Projects under construction are recorded at cost as construction in progress and transferred to the
appropriate asset account when substantially complete. Costs of major improvements and
rehabilitation of buildings are capitalized. Repair and maintenance costs are charged to expense
when incurred. Equipment disposed of, or no longer required for its existing use, is removed from
the records at actual or estimated historical cost, net of accumulated depreciation.
All capital assets, except land and construction in progress, are depreciated using the straight-line
method over the following estimated useful lives:
Assets Years
Structures/Improvements 50
Public Access Infrastructure 20 - 50
Equipment/Fixtures 5 - 20
Vehicles 5
Software 5 - 10
5. Compensated Absences
In accordance with the District's memorandum of understanding with various employee groups,
employees accrue fifteen days of vacation during the first nine years of service, twenty days
between service years 10 and fourteen, twenty-one days between service years fifteen and
nineteen, twenty-three days between service years twenty and twenty-four, and twenty-five days
after twenty-five years of service. An employee may accumulate vacation time earned to a
maximum of two times the amount of his/her annual vacation accrual.
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Full-time employees accrue twelve days of sick leave: annually from the date of employment. An
employee may accumulate sick leave time earned on an unlimited basis. Upon resignation,
separation from service, or retirement from District employment, workers in good standing with
ten or more years of District employment shall receive a cash payment of the equivalent cash
value of accrued sick leave as follows:
Percentage of equivalent
cash value of accrued
Years of Employment sick leave
15-20 20%
16-20 25%
21 or more 30%
An employee hired before June 30, 2006, who retires from the District shall receive a cash
payment of the percentage of equivalent cash value of accrued sick leave based on years of
employment as described above, and apply the remainder of the equivalent cash value toward
his/her cost of retiree medical plan premiums and/or other qualified medical expenses. Upon
retirement, the amount qualified and designated for retiree medical costs shall be deposited in the
Retiree Health Savings (RHS) plan, set up by the District. The cost for maintaining the retiree's
RHS account and the annual fee for the reimbursement process of qualified medical expenses will
be paid for by the retiree.
An employee hired on or after July 1, 2006, who retires from the District may elect to receive
only a cash payment of the percentage of equivalent cash value of accrued sick leave based on
years of employment as described above. In all cases the equivalent cash value of accrued sick
leave will be based on current rate of pay as of the date of separation from District employment.
The District accrues for all salary-related items in the government-wide statements for which they
are liable to make a payment directly and incrementally associated with payments made for
compensated absences on termination. Compensated absences are liquidated by the fund that has
recorded the related liability. The long-term portion of governmental activities compensated
absences is liquidated primarily by the General Fund.
6. Long-Term/Noncurrent Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the Statement of Net Position.
7. Debt Discount and Issuance Costs
Debt discounts, premiums, and prepaid issuance costs are capitalized as an offset to long-term
debt and amortized using the straight-line method over the life of the related debt. Issuance costs
for the District's tax-exempt commercial paper short-term borrowings are expensed as incurred.
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
8. Fund Balance Classifications
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and
Governmental Fund Type Definitions, the District classifies governmental fund balances as
follows:
• Nonspendable fund balance includes amounts that cannot be spent either because it is not in
spendable form or because of legal or contractual constraints.
• Restricted fund balance includes amounts that are constrained for specific purposes which are
externally imposed by providers, such as creditors or amounts constrained due to
constitutional provisions or enabling legislation.
• Committed fund balances includes amounts that are constrained for specific purposes that are
internally imposed by the government through formal action of the highest level of decision-
making authority and does not lapse at period-end. Committed fund balances were imposed
by the District’s Board of Directors resolution. Any changes to committed fund balance
requires the approval of two-thirds of the Board.
Committed fund balances were imposed by the District’s Board of Directors as follows:
o Infrastructure: $17,187,084; projected minimum requirement for expansion of field
and office facilities over the next five years.
o Equipment Replacement: $3,000,000; projected requirement for equipment and
vehicle replacement based on the amount of accumulated depreciation recorded on
capital assets in service.
o Capital maintenance: $7,250,000; amounts com44mitted to reserve for future capital
repairs and maintenance.
o Future acquisitions and capital projects: $11,950,000; amounts committed to reserve
for future capital acquisitions.
o Promissory Note: $1,200,000; amounts committed to payment of promissory note.
Assigned fund balance includes amounts that are intended to be used for specific purposes
that are neither considered restricted or committed. Fund balance may be assigned by the
General Manager, pursuant to Board Policy 3.07, if authorized by the Board of Directors to
make such designations. At June 30, 2021, the District had assigned $2,891,390 in fund
balance for ongoing projects.
• Unassigned fund balance includes positive amounts within the general fund which has not
been classified within the above-mentioned categories and negative fund balances in other
governmental funds.
The District uses restricted/committed amounts to be spent first when both restricted and
unrestricted fund balance is available unless there are legal documents/contracts that prohibit
doing this, such as a grant agreement requiring dollar for dollar spending. Additionally, the
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
District would first use committed, then assigned, and lastly unassigned amounts of unrestricted
fund balance when expenditures are made.
9. Net Position
Net position represents the difference between assets, deferred outflows of resources, liabilities
and deferred inflows of resources. Net investment in capital assets consists of capital assets, net
of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the
acquisition, construction or improvement of those assets. In addition, deferred outflows of
resources and deferred inflows of resources that are attributable to the acquisition, construction,
or improvement of those assets or related debt also are included in the net investment in capital
assets component of net position. Net position is reported as restricted when there are limitations
imposed on its use either through the enabling legislation adopted by the District or through
external restrictions imposed by creditors, grantors, laws or regulations of other governments.
The District applies restricted resources when an expense is incurred for purposes for which both
restricted and unrestricted net position is available.
Unrestricted net position reflect amounts that are not subject to any donor-imposed restrictions.
This class also includes restricted contributions whose donor-imposed restrictions were met
during the fiscal period. A deficit unrestricted net position may result when significant cash
balances restricted for capital projects exist. Once the projects are completed, the restriction on
these assets are released and converted to capital assets.
10. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the
District’s California Public Employees’ Retirement System (CalPERS) plan and additions
to/deductions from the plan’s fiduciary net position have been determined on the same basis as
they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of
GASB Statement No. 27 (GASB Statement No. 68) requires that the reported results pertain to
liability and asset information within certain defined timeframes. For this report, the following
time frames were used:
Valuation Date (VD) ....................................... June 30, 2019
Measurement Date (MD) ................................ June 30, 2020
Measurement Period (MP) .............................. July 1, 2019 to June 30, 2020
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
11. Other Postemployment Benefits Oher Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred
inflows of resources, and OPEB expense, information about the fiduciary net position of the
District’s Retiree Benefits Plan (the OPEB Plan) and additions to/deductions are based on the
when they are due and payable in accordance with the benefit terms for the measurement period
included in the OPEB plan’s actuarial reports. 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.
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
12. Property Taxes
The District receives property tax revenue from Santa Clara and San Mateo Counties (the
Counties). The Counties are responsible for assessing, collecting and distributing property taxes
in accordance with state law. Secured property taxes are recorded as revenue when apportioned,
in the fiscal period of the levy. The counties apportion secured property tax revenue in
accordance with the alternate method of distribution prescribed by Section 4705 of the California
Revenue and Taxation Code. This alternate method provides for crediting each applicable fund
with its total secured taxes upon completion of the secured tax roll - approximately October 1 of
each year. Taxes are levied annually on July 1st, and one-half are due by November 1st and one-
half by February 1st. Taxes are delinquent after December 10th and April 10th, respectively.
Supplemental property taxes are levied on a pro-rata basis when changes in assessed valuation
occur due to the completion of construction or sales transactions. Liens on real property are
established on January 15th for the ensuing fiscal period.
On June 30, 1993, the Board of Supervisors adopted the "Teeter" method of property tax
allocation. This method allocates property taxes based on the total property tax billed. At year-
end, the Counties advances cash to each taxing jurisdiction equal to its current year delinquent
taxes. Once the delinquent taxes are collected, the revenue from penalties and interest remains
with each County and is used to pay the interest cost of borrowing the cash used for the advances.
13. Accounting Estimates
The presentation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
I. Implementation of New Accounting Pronouncements
GASB Statement No. 84, “Fiduciary Activities.” Issued in January 2017, this statement establishes
criteria for identifying fiduciary activities for accounting and financial reporting purposes and
describes four fiduciary funds that should be reported, if applicable. The statement is effective
beginning fiscal year 2021. The District does not meet the fiduciary criteria by classifying activities
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
related to pension and other postemployment benefits as fiduciary and did not report any activities as
custodial funds.
J. Upcoming Accounting and Reporting Changes
The District is currently analyzing its accounting practices to determine the potential impact on the
financial statements of the following recent GASB Statements:
GASB Statement No. 87, “Leases.” Issued in June 2017, this statement establishes standards of
accounting and financial reporting for leases by lessees and lessors. It provides guidance on
accounting treatment of lease assets, lease liability, short-term leases, certain regulated leases,
measurement for leases other than short-term leases and contracts that transfer ownership, subleases,
lease-leaseback transactions, intra-entity leases, and leases between related parties. The statement will
be effective beginning fiscal year 2022.
GASB Statement No. 91, “Conduit Debt Obligations.” Issued in May 2019, this statement provides a
single method of reporting conduit debt obligations by issuers and eliminates diversity in practice
associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt
obligations, and (3) related note disclosures. The statement will be effective beginning fiscal year
2023.
GASB Statement No. 92, “Omnibus 2020.” Issued in January 2020, this statement was issued for
clarity and consistency by addressing practice issues identified from the implementation and
application of certain GASB statements. The statement will be effective beginning fiscal year 2022.
GASB Statement No. 93, “Replacement of Interbank Offered Rates.” Issued in March 2020, this
statement is to address accounting and financial reporting implications that result from the
replacement of an interbank offered rate (IBOR) such as the London Interbank Offered Rate
(LIBOR). As a result of global reference rate reform, LIBOR is expected to cease to exist in its
current form at the end of 2021. The statement will be effective beginning fiscal year 2022.
GASB Statement No. 94, “Public-Private and Public-Public Partnerships and Availability Payment
Arrangements.” Issued in March 2020, this statement is to improve financial reporting by
establishing the definitions of public-private and public-public partnership arrangements (PPPs) and
available payment arrangement (APAs) and providing uniform guidance on accounting and financial
reporting for transactions that meet those definitions. The statement will be effective beginning fiscal
year 2023.
GASB Statement No. 96, “Subscription-Based Information Technology Arrangements.” Issued in
May 2020, the statement provides guidance on the accounting and financial reporting for subscription
based information technology arrangements (SBITAs) for governments by (1) defining a SBITA, (2)
establishing that a SBITA results in a right-to-use subscription asset-an intangible asset-and a
corresponding subscription liability, (3) providing the capitalization criteria for outlays other than
subscription payments, including implementation costs of a SBITA, and (4) requiring note disclosures
regarding a SBITA. The statement will be effective beginning fiscal year 2023.
GASB Statement No. 97, “Certain Component Unit Criteria, and Accounting and Financial
Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans—an amendment of
GASB Statements No. 14 and No. 84, and a supersession of GASB Statement No. 32.” Issued in June
2020, the statement will result in more consistent financial reporting of defined contribution pension
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
plans, defined contribution OPEB plans, and other employee benefit plans (e.g., certain Section 457
plans), while mitigating the costs associated with reporting those plans. The statement will be
effective beginning fiscal year 2022.
NOTE 2 - CASH AND INVESTMENTS
Summary of Cash and Investments
The following summarizes deposits as of June 30, 2021:
Cash and
Cash Equivalents
Available
Cash and Investments for Operations Restricted Total
Cash Deposits:
Cash in Banks 211,105$ 48,810$ 259,915$
Cash with Fiscal Agent PARS - 6,374,997 6,374,997
Petty Cash 1,091 - 1,091
Total Cash Deposits 212,196 6,423,807 6,636,003
Investments:
California Local Agency Investment Fund 1,743,432 - 1,743,432
CalTRUST - 1,676,949 1,676,949
Brokerage Accounts/Cash with Fiscal Agents 7,438,527 24,152,206 31,590,733
Santa Clara County Pool 57,097,890 4,283,256 61,381,146
Total Investments 66,279,849 30,112,411 96,392,260
Total Cash and Investments 66,492,045$ 36,536,218$ 103,028,263$
Cash in Banks
Cash balances in banks are insured up to $250,000 per insured bank by the Federal Deposit Insurance
Corporation ("FDIC"). The District’s accounts are held with various banks. As of June 30, 2021, the
District’s bank balances exceeded FDIC coverage by $170,683.
Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques above. This hierarchy has three
levels:
• Level 1 inputs are quoted prices in active markets for identical assets or liabilities.
• Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical
or similar assets or liabilities in markets that are not active, or other than quoted prices that are
not observable
• Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
The District has the following investments with recurring fair value measurements as of June 30, 2021:
12 Months 13 - 24 25 - 60
Rating Fair Value or Less Months Months
Money Market Accounts n/a 4,179,045$ n/a 4,179,045$ -$ -$ 4.34%
Municipal Bonds AAA/A-10,656,993 Level 2 3,464,972 3,940,762 3,251,262 11.07%
Corp/Gov Bonds AAA/A-16,646,187 Level 1 10,224,039 6,422,149 - 17.29%
LAIF n/a 1,743,577 Level 2 1,743,577 - - 1.81%
CalTrust A+f 1,676,949 Level 2 - - 1,676,949 1.74%
Santa Clara County Pool n/a 61,381,146 Level 2 33,237,229 9,579,405 18,564,511 63.75%
U.S. Obligations AA+/A-328 Level 1 328 - - 0.00%
Total Investments 96,284,225$ 52,849,189$ 19,942,316$ 23,492,722$ 100.00%
Concen-
trationsInvestment Type
Input
Level
Maturities
Cash in Santa Clara County Treasury
Santa Clara County is a fiscal agent of the District. The fair value of the District's investment in the
county pool is reported at amounts based on the District's pro-rata share of the fair value provided by the
County Treasurer for the entire portfolio (in relation to the amortized cost of the portfolio). The balance
available for withdrawal is based on the accounting records maintained by the County Treasurer, which is
recorded on the amortized costs basis. Santa Clara County investment pool funds were available for
withdrawal on demand and had an average maturity date of less than one year. All cash and investments
are stated at fair value. Pooled investment earnings are allocated monthly based on the average cash and
investment balances of the various funds of the County.
California Local Agency Investment Fund
The District is a participant in the Local Agency investment Fund (LAIF) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The
District reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as
the value of the pool share. The balance is available for withdrawal on demand, and is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in
LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other
asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies,
government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30,
2021, these investments had an average maturity date of less than one year.
Investment Trust of California
The District is a participant in the Investment Trust of California (CalTRUST) which is a California joint
powers authority that has been established by its members pursuant to an agreement. The California
Government Code provides that Public Agencies may purchase shares of beneficial interest issues by a
joint powers authority, such as CalTRUST, organized pursuant to the Section 6500 of the Act. The
District reports its investment in CalTRUST at the fair value amount provided by CalTRUST. The
District participates in the Medium-Term Fund with CalTRUST. The balance in this Medium-Term Fund
is available for withdrawal once a week (on Wednesdays), and is based on the net asset value per share on
the Wednesday of each week. Included in CalTRUST's investment portfolio for the Medium-Term Fund
are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans
to certain state funds, and floating rate securities issued by federal agencies, government-sponsored
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2021, these investments
had an average maturity date of 2 to 5 years.
Investments Authorized by Debt Agreements
The District must maintain required amounts of cash and investments with trustees or fiscal agents under
the terms of certain debt issues. These funds are used if the District fails to meet its obligations under
these debt issues.
Restricted for Debt Service
As of June 30, 2021, the District had $7,085 held by Zions bank as trustee, pledged to the payment or
security of its outstanding bond issues. The District also had $4,283,256 held by the County during the
period which was pledged to the payment or security of its outstanding bonds. All transactions associated
with debt service were administered by the Bank or County.
Restricted for Hawthorne Property Maintenance
On November 10, 2011, the District received the gift of the 79-acre Hawthorne property, in Portola
Valley, California, and an endowment of $2,018,445 to manage the property in perpetuity. The cash
balance restricted for this purpose at June 30, 2021 was $1,676,949.
Restricted for Measure AA Bond Projects
As of June 30, 2021, the District had $23,662,619 held by Zions bank as trustee, pledged to specific
projects related to the acquisition of property to protect and preserve natural open space lands,
constructions of public access improvements and recreation and capital enhancements to open space lands
to restore disturbed natural areas back to their original condition and function.
Restricted for Staffing Facilities
As of June 30, 2021, the District had $482,524 held by Zions bank as trustee, pledged to finance portion
of the cost of acquiring and improving staffing facilities for use by the District.
Restricted for Historic Picchetti Reserve
As of June 30, 2021, the District had $48,810 held with Wells Fargo, pledged for upkeep on the Picchetti
Ranch brick winery building and farm complex.
Restricted Cash with Fiscal Agent
For the year ended June 30, 2021, the District had a balance of $6,374,997 in a Public Agency Retirement
Services (PARS) Pension Rate Stabilization Program (PRSP) 115 irrevocable trust for pensions.
Participating agencies maintain oversight of investment management and control over the risk tolerance
level. Assets in the plan can be accessed to offset unexpected rate increases or be used as a rainy-day fund
related to their pension plan (CalPERS). These assets are not dedicated to providing plan benefits to plan
participants and are not directly used to pay benefits until such time as the District transfers the funds
from the PARS trust to the pension plan (CalPERS). The trust restricts the use of the assets to be used
solely for pension related expenses.
Page 52
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Policies and Practices
The District's Investment Policy and the California Government Code allow the District to invest in the
following, provided the credit ratings of the issuers are acceptable to the District and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of the
California Government Code or the District's Investment Policy where it is more restrictive:
Authorized Investment Type
Maximum
Remaining
Maturity
Maximum Percentage of
Portfolio
Maximum
Investment
in one Is s uer
Medium Term Notes 5 years
30%No Limit
Money Market and Mutual Funds N/A 20%10%
U.S. Treasury Obligations 5 years
No Limit No Limit
Federal Agency Securities 5 years
No Limit No Limit
Banker's Acceptance 180 days 40%30%
Commercial Paper 270 days 25%10%
Negotiable Certificates of Deposit 5 years 30%No Limit
Repurchase Agreements 1 year No Limit N o Limit
Reverse Repurchase Agreements 92 days 20%No Limit
Local Agency Investment Fund (LAIF)N/A $40 million per account No Limit
a) Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to the changes in market interest rates. The District manages its exposure to interest rate
risk by investing in the Santa Clara County investment pool and LAIF, which had fair values of
approximately $9.9 billion and $194 billion, respectively as of June 30, 2021, and diversifying its
investments, as noted above, through the utilization of brokers.
b) Credit Risk
Credit risk is the risk of loss due to the failure of the security issuer. This is measured by the
assignment of a rating by a nationally recognized statistical rating organization. The investment with
the County’s investment pool is governed by the County’s general investment policy. The County’s
investments in 2021 included U.S. government securities or obligations explicitly guaranteed by the
U.S. government that are not considered to have credit risk exposure. See the schedule above for a
summary of the District’s ratings by investment type.
c) Custodial Credit Risk – Deposits
Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits may not be
returned to it. The District does not have a policy for custodial credit risk for deposits. However, the
California Government code requires that a financial institution secure deposits made by State or
local governmental units by pledging securities in an undivided collateral pool held by a depository
regulated under State law (unless so waived by the governmental unit). The market value of the
pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited
Page 53
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
by the public agencies. California law also allows financial institutions to secure public deposits by
pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits
and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105
percent of the secured deposits.
d) Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investor’s holdings in
a single issuer. The District’s investment in the County’s commingled pool is diversified by the
County Treasurer by limiting the percentage of the portfolio that can be invested in any one issuer’s
name. Investments in U.S. Treasuries, U.S. Agency securities explicitly backed by the U.S., and
mutual and pooled funds are not subject to this limitation.
More than 5% of the County’s commingled pooled investments are invested with the Federal
National Mortgage Association, Federal Home Loan Bank, Federal Home Loan Mortgage
Corporation, and Federal Farm Credit Bank.
NOTE 3 - INTERFUND TRANSACTIONS
Interfund Receivables and Payables
Interfund transactions are reported as loans or transfers. The District utilizes interfund transactions to
account for funding received by the General Fund which is then distributed to the other funds for special
uses, such as payment of debt or capital project and to supplement other funding sources. Loans are
reported as interfund receivables and payables, as appropriate, and are subject to elimination upon
consolidation.
The following interfund loans were outstanding at fiscal year end June 30, 2021:
Fund
Due from
Other Funds
Due to
Other Funds
General Fund 1,134,326$ 4,251,349$
Measure AA Capital Projects Fund - 1,040,200
GF Capital Projects Fund 4,251,349 -
Debt Service Fund - 94,126
Total 5,385,675$ 5,385,675$
At June 30, 2021, interfund transfers consisted of the following:
Fund Transfer In Transfer Out
General Fund -$ 15,916,159$
Measure AA Capital Projects Fund - 311,159
GF Capital Projects Fund 5,644,822 -
Debt Service Fund 10,582,496 -
Total 16,227,318$ 16,227,318$
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
NOTE 4 - NOTES RECEIVABLE
On December 17, 1997, the District sold the title to and possession of a 50-year fee determinable estate
10-acre parcel near the Skyline Ridge Open Space Preserve. The District financed the purchase in the
amount of $288,800 over 25 years at a rate of 10% per annum. Monthly principal and interest payments
of $2,634 are due on the 1st of each month and late if not paid by the 10th, with the final payment
scheduled December 1, 2022. The outstanding balance at June 30, 2021 was $71,728.
NOTE 5 - CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the period ended June 30, 2021 is shown below:
Balance Deletions/Balance
Capital Assets June 30, 2020 Additions Adjustments June 30, 2021
Non-depreciable:
Land 450,098,759$ 7,635,851$ 550,000$ 458,284,610$
Construction in Progress 17,313,507 16,562,354 (11,728,890) 22,146,971
Total Non-Depreciable 467,412,266 24,198,205 (11,178,890) 480,431,581
Depreciable:
Structure and Improvements 30,129,501 4,504,564 (550,000) 34,084,065
Infrastructure 43,777,393 7,177,615 - 50,955,008
Equipment 2,813,942 35,369 - 2,849,311
Vehicles 5,288,526 358,205 - 5,646,731
Total Depreciable 82,009,362 12,075,753 (550,000) 93,535,115
Less Accumulated Depreciation for:
Structure and Improvements (11,011,314) (1,159,573) - (12,170,887)
Infrastructure (6,684,072) (1,420,439) - (8,104,511)
Equipment (1,721,835) (153,695) - (1,875,530)
Vehicles (3,903,090) (605,887) - (4,508,977)
Total Accumulated Depreciation (23,320,311) (3,339,594) - (26,659,905)
Total Depreciable Capital Assets - Net 58,689,051 8,736,159 (550,000) 66,875,210
Total Capital Assets - Net 526,101,317$ 32,934,364$ (11,728,890)$ 547,306,791$
Page 55
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
NOTE 6 - LONG-TERM LIABILITIES
The following is a summary of the changes in long-term liabilities for the period ended June 30, 2021:
Beginning Ending Due Within
Long-term Liabilities Balance Additions Deductions Balance One Year
Promissory Notes (Direct Borrowings):
Current Interest 22,954,999$ -$ 1,370,000$ 21,584,999$ 1,445,000$
Capital Appreciation 6,580,602 - - 6,580,602 -
Accreted interest 3,434,872 534,303 - 3,969,175 -
Unamortized Premium 4,968,133 - 117,510 4,850,623 -
Subtotal Promissory Notes 37,938,606 534,303 1,487,510 36,985,399 1,445,000
Bonds:
Current Interest 171,260,000 - 7,025,000 164,235,000 6,675,000
Unamortized Bond Premium 19,295,234 - 1,120,342 18,174,892 -
Subtotal Bonds 190,555,234 - 8,145,342 182,409,892 6,675,000
Net Pension Liability 11,828,627 8,912,057 7,270,638 13,470,046 -
Net OPEB Liability 1,500,844 1,537,853 1,658,944 1,379,753 -
Compensated Absences 2,777,151 572,267 444,136 2,905,282 464,627
Total Long-term Liabilities 244,600,462$ 11,556,480$ 19,006,570$ 237,150,372$ 8,584,627$
Compensated absences, other postemployment benefits and pension liabilities are paid by the fund for
which the employee worked, which included General Fund and MAA Capital Projects Funds.
Promissory Notes
Hunt Living Trust Promissory Note
On April 1, 2003, the District entered into a $1,500,000 promissory note with the Hunt Living Trust as
part of a lease and management agreement. The note is due in full on April 1, 2023 and bears interest at
5.5% semi-annually through April 1, 2013 and 5.0% per annum until the maturity, or prior redemption, of
the note.
2012 Refunding Promissory Notes
On January 19, 2012, the District advance refunded $34,652,643 in 1999 lease revenue bonds by issuing
$31,264,707 in promissory notes. The 2012 notes bear interest rates ranging from 2.00% to 6.04%. The
notes are a blend of current interest and capital appreciation notes maturing through 2042. The net
proceeds of $33,295,663 (after payment of $278,683 in underwriting fees, insurance, and other issuance
costs and a premium of $2,309,638) were used to purchase U.S government securities. Those securities
were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments
on the 1999 Series bonds. As a result, the 1999 Series bonds are considered to be defeased and the
liability for those bonds has been removed from the long-term debt in the financial statements. The 2012
Refunding Promissory Notes were partially defeased during fiscal year 2018 with issuance of the 2017
Refunding Bond as noted below. The notes are secured by limited ad valorem property taxes levied upon
all taxable property in the District.
Page 56
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
2015 Refunding Promissory Notes
On January 22, 2015, the District advance refunded $29,986,962 in 2004 Revenue Bonds by issuing
$28,578,500 in promissory notes. The 2015 notes bear interest rates ranging from 2.00% to 5.00%. The
notes are current interest notes maturing through 2035. The net proceeds of $28,325,491 (after payment of
$253,009 in underwriting fees, insurance, and other issuance costs and a premium of $4,948,500) were
used to purchase U.S government securities. Those securities were deposited in an irrevocable trust with
an escrow agent to provide for all future debt service payments on the 2004 Revenue Bonds. As a result,
the 2004 Revenue Bonds are considered to be defeased and the liability for those bonds has been removed
from the long-term debt in the financial statements. The notes are secured by limited ad valorem property
taxes levied upon all taxable property in the District.
Revenue and General Obligation Bonds
2011 Revenue Bonds
On May 19, 2011, the Authority, on behalf of the District, issued $20,500,000 of 2011 Revenue Bonds for
the purpose of acquiring land to preserve and use as open space and pay bond issue and related costs. The
Bonds are not general obligations. Each period, the District will appropriate revenues-mainly limited
properly tax collections that Santa Clara County and San Mateo County allocate to the District – to pay its
obligations under a Lease Agreement for use and occupancy of District land in addition to other District
debt and lease obligations unrelated to this financing. The Current Interest Bonds bear interest at 2.0% to
6.0% and are due semi-annually on March 1 and September 1. Principal payments on the Current Interest
Bonds are due annually September 1. This Bond was partially defeased during fiscal year 2017 with
issuance of the 2016 Refunding Series A and B Green Bonds as noted below. There is no remedy to the
District for default beyond the security provided in the indenture and debt reserves established.
2015A and 2015B General Obligation Bonds
On July 29, 2015, the District issued $40,000,000 of 2015A general obligation bonds and $5,000,000 of
2015B federally taxable general obligation bonds to finance certain projects authorized by voters. The
bonds bear interest from 1.5% to 5% and are due semi-annually on March 1 and September 1. The bonds
were issued at a premium of $2,559,224 with an underwriter’s discount of $107,599 and issuance costs of
$170,000. The bonds are secured by ad valorem property taxes levied by the District. There is no remedy
to the District for default beyond the security provided in the indenture and debt reserves established.
2016A and 2016B Refunding Green Bonds
On September 8, 2016, the District issued $54,490,000 of 2016 Refunding Series A and $2,920,000 of
2016 Refunding Series B Green Bonds for the purpose of refunding its outstanding obligations under the
2007 Series A Revenue Refunding Bonds and prepay a portion of its obligations under the 2011 Lease
Revenue Bonds. As a result, the 2007 Series A Revenue Refunding Bonds and the 2011 Lease Revenue
Bonds are considered to be defeased and the liability for those bonds has been removed from the
government-wide financial statement of net position.
The refunding resulted in a difference between the reacquisition price and the net carrying amount of the
old debt of $5,032,161, which is reported as a deferred outflow on the government-wide statement of net
position. This difference, reported in the accompanying financial statements as a deduction from bonds
payable, is being charged to operations through fiscal year 2036 using the straight-line method. The
Page 57
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
District completed the refunding to obtain an economic gain (difference between the present value of the
old and the new debt service payments) of $12,694,440.
The 2016 Refunding Green Bonds Series A bears interest from 2.0% to 5.0% and the Series B bears
interest of 0.73%. Interest for both Series A and B are due semi-annually on March 1 and September 1.
Principal payments for Series A began September 2017 and are due annually thereafter until September
2036. Series B has only one principal payment in September 2017. The bonds are secured by the
District’s share of the general 1% ad valorem property tax levied in the District. There is no remedy to the
District for default beyond the security provided in the indenture and debt reserves established.
2017 Series A Refunding Green Bonds
On December 13, 2017, the District issued $25,025,000 of 2017 Refunding Green Bonds for the purpose
of partially refunding its outstanding obligations under the 2012 Refunding Promissory Notes. The
proceeds of the 2017 Refunding Green Bonds, together with $676,232 of other District funds, were used
to defease and redeem $11,605,000 principal amount of the District’s outstanding 2012 Current Interest
Notes and $8,894,106 initial principal of the District’s outstanding 2012 Capital Appreciation Notes,
collectively, the 2012 Refunding Promissory Notes. The amounts defeased have been removed from the
government-wide financial statement of net position.
The refunding resulted in a difference between the reacquisition price and the net carrying amount of the
old debt of $4,113,597, which is reported as a deferred outflow on the government-wide statement of net
position. This difference, reported in the accompanying financial statements as a deduction from bonds
payable, is being charged to operations through fiscal year 2033 using the straight-line method. The
District completed the refunding to obtain an economic gain (difference between the present value of the
old and the new debt service payments) of $8,882,524.
The 2017 Refunding Green Bonds bears interest from 3.125% to 5.0%. Interest is due semi-annually on
March 1 and September 1. Principal payments begin September 2025 and are due annually thereafter until
September 2037. The bonds are secured by the District’s share of the general 1% ad valorem property tax
levied in the District. There is no remedy to the District for default beyond the security provided in the
indenture and debt reserves established.
2017 Series B Parity Bonds
On December 13, 2017, the District issued $11,220,000 of 2017 parity bonds to finance portion of the
cost of acquiring and improving staffing facilities for use by the District. The bonds bear interest of 5%
and are due semi-annually on June 30 and December 30. The bonds were issued at a premium of
$1,413,434 and issuance costs of $133,434. The bonds are secured by the District’s share of the general
1% ad valorem property tax levied in the District. There is no remedy to the District for default beyond
the security provided in the indenture and debt reserves established.
2018 General Obligation Bonds
On February 1, 2018, the District issued $50,000,000 of 2018 general obligation bonds to finance 25
projects specified in Measure AA. The bonds bear interest from 2% to 5% and are due semi-annually on
March 1 and September 1. The bonds were issued at a premium of $3,691,291 with an issuance costs of
$455,462. The bonds are secured by the District’s share of the general 1% ad valorem property tax levied
in the District. There is no remedy to the District for default beyond the security provided in the indenture
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
and debt reserves established. The following schedule summarizes the District’s outstanding promissory
notes and bonds as of June 30, 2021:
Original Beginning Ending
Long Term Debt Issue Balance Additions Retirements Balance
Promissory Notes (Direct Borrowings):
Hunt Note 1,500,000$ 1,500,000$ -$ -$ 1,500,000$
2012 Refunding Note Current Int.15,790,000 1,319,999 - 425,000 894,999
2012 Refunding Note Cap Apprec.15,474,708 6,580,602 - - 6,580,602
2015 Refunding Note 23,630,000 20,135,000 - 945,000 19,190,000
Subtotal Promissory Notes 56,394,708 29,535,601 - 1,370,000 28,165,601
Bonds:
2011 Lease Revenue 20,500,000 535,000 - 250,000 285,000
2015A General Obligation Bonds 40,000,000 40,000,000 - - 40,000,000
2015B General Obligation Bonds 5,000,000 1,555,000 - 925,000 630,000
2016 Refunding Bonds 57,410,000 47,410,000 - 3,375,000 44,035,000
2017 Refunding Bonds 25,025,000 25,025,000 - - 25,025,000
2017 Parity Bonds 11,220,000 9,480,000 - 990,000 8,490,000
2018 General Obligation Bonds 50,000,000 47,255,000 - 1,485,000 45,770,000
Subtotal Bonds 209,155,000 171,260,000 - 7,025,000 164,235,000
Accreted Interest:
2012 Refunding Note 3,434,872 534,303 - 3,969,175
Subtotal Accreted Interest 3,434,872 534,303 - 3,969,175
Unamortized Bond Premium 24,263,367 - 1,237,852 23,025,515
Total Long Term Debt 265,549,708$ 228,493,840$ 534,303$ 9,632,852$ 219,395,291$
The promissory notes future debt service requirements as of June 30, 2021 were as follows:
Year Ending June 30,Principal
Remaining
Accretion Interest Total
2022 1,445,000$ -$ 1,029,625$ 2,474,625$
2023 3,040,000 - 963,950 4,003,950
2024 1,170,000 - 825,750 1,995,750
2025 1,225,000 - 765,875 1,990,875
2026 1,300,000 - 702,750 2,002,750
2027-2031 9,547,250 309,249 2,451,625 12,308,124
2032-2036 10,438,351 7,675,976 587,750 18,702,077
Total Debt Service 28,165,601$ 7,985,225$ 7,327,325$ 43,478,151$
The bonds future debt service requirements as of June 30, 2021 were as follows:
Year Ending June 30,Principal
Remaining
Accretion Interest Total
2022 6,675,000$ -$ 6,895,263$ 13,570,263$
2023 6,990,000 - 6,589,537 13,579,537
2024 7,375,000 - 6,239,763 13,614,763
2025 7,780,000 - 5,865,663 13,645,663
2026 8,285,000 - 5,464,038 13,749,038
2027-2031 34,815,000 - 21,439,727 56,254,727
2032-2036 31,160,000 - 15,558,433 46,718,433
2037-2041 31,090,000 - 8,394,050 39,484,050
2042-2046 22,445,000 - 3,839,500 26,284,500
2047-2051 7,620,000 - 465,200 8,085,200
Total Debt Service 164,235,000$ -$ 80,751,174$ 244,986,174$
Page 59
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Amortization of the deferred loss on early retirement of long-term debt for the fiscal period ended June
30, 2021 was as follows:
Beginning Balance 8,550,577$
Amortization (845,125)
Ending Balance 7,705,452$
NOTE 7 - RENTAL INCOME
The District rents certain land and structures to other entities under operating leases with terms generally
on a month-to-month basis. Rental income of $1,910,683 was received during the period ended June 30,
2021.
NOTE 8 - CALPERS PENSION PLAN
Pension Plan
General Information about the Pension Plans
Plan Description - The District provides benefits to eligible employees through cost-sharing multiple
employer defined benefit pension plans (the Plan(s)) administered by the California Public Employees’
Retirement System (CalPERS). Members of the Plan include all permanent employees working full-time.
Benefit provisions under the Plans are established by State statute and District resolution. CalPERS issues
publicly available reports that include a full description of the pension plans regarding benefit provisions,
assumptions and membership information that can be found on the CalPERS website.
Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full-time employment. Members with
five years of total service are eligible to retire at age 55 with statutorily reduced benefits. All members are
eligible for non-industrial disability benefits after 10 years of service. The death benefit is the Optional
Settlement 2W Death Benefit. The cost-of-living adjustments for the Plan are applied as specified by the
Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:
Tier 1 PEPRA
Benefit formula 2.5% @ 55 2% @ 62
Be nefit vesting schedule 5 Years 5 Years
Benefit payments Monthly for Life Monthly for Life
Retirement age 55 62
Monthly ben. as a % of eligible comp.2% to 2.5%2.00%
Required employee contribution rates 8.000% 6.750%
Required employer contribution rates 12.361%7.732%
Miscellaneous
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Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Employees Covered – At June 30, 2021, the following employees were covered by the benefit terms for
the Plan:
Miscellaneous
Active 158
Transferred 60
Separated 79
Retired 88
Total 385
Contributions - Section 20814(c) of the California Public Employees’ Retirement Law requires that the
employer contribution rates for all public employers be determined on an annual basis by the actuary and
shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the
Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined
rate is the estimated amount necessary to finance the costs of benefits earned by employees during the
year, with an additional amount to finance any unfunded accrued liability. The District is required to
contribute the difference between the actuarially determined rate and the contribution rate of employees.
Contributions to the plan for the year totaled $1,791,425.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the District reported net pension liabilities for its proportionate shares of the net
pension liability as follows:
Miscellaneous
Proportionate Share of
Net Pension
Liability/(Asset)
$ 13,470,046
The District’s net pension liability for the Plan is measured as the proportionate share of the net pension
liability. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension
liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation
as of June 30, 2019 using standard procedures. The District’s proportion of the net pension liability was
based on a projection of the District’s long-term share of contributions into the pension plan relative to
the projected contributions of all participating employers, as actuarially determined. The District’s
proportionate share of the net pension liability for the Plan as of fiscal years June 30, 2020 and 2021 was
as follows:
Proportion - June 30, 2020 0.11543%
Proportion - June 30, 2021 0.12380%
Change - Increase/(Decrease)0.00837%
For the fiscal year ended June 30, 2021, the District recognized pension expense of $3,670,530.
Page 61
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
At fiscal year June 30, 2021, the District reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions -$ 96,074$
Differences between Expected and Actual Experience 694,152 -
Differences between Projected and Actual Investment Earnings 400,149 -
Differences between Employer's Contributions and
Proportionate Share of Contributions - 1,714,990
Change in Employer's Proportion 1,200,628 -
Pension Contributions Made Subsequent to Measurement Date 1,791,425 -
Total 4,086,354$ 1,811,064$
The District reported $1,791,425 as deferred outflows of resources related to contributions subsequent to
the measurement date that will be recognized as a reduction of the net pension liability in the year ended
June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
30,430$
95,516
165,996
191,923
-
-
483,865$
Deferred
Outflows/
(Inflows) of
Resources
Fiscal Year
Ending June 30:
Total
2023
2024
2025
Thereafter
2026
2022
Actuarial Assumptions - The total pension liabilities in the June 30, 2019 actuarial valuations were
determined using the following actuarial assumptions:
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:
Discount Rate 7.15%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase (1)
Investment Rate of Return 7.15% (2)
Mortality (3)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation
(3) Derived using CalPERS' membership data for all funds
Page 62
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Discount Rate - The discount rate used to measure the total pension liability was 7.15 percent for each
Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate
for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be
different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out
of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond
rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to
all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a
detailed report that can be obtained from the CalPERS’ website.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund cash flows. Using historical
returns of all the funds’ asset classes, expected compound returns were calculated over the short-term
(first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected
nominal returns for both short-term and long-term, the present value of benefits was calculated for each
fund. The expected rate of return was set by calculating the rounded single equivalent expected return
that arrived at the same present value of benefits for cash flows as the one calculated using both short-
term and long-term returns. The expected rate of return was then set equivalent to the single equivalent
rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset
allocation.
Assumed
Asset Real Return Real Return
Asset Class (a)Allocation Years 1 - 10 (b) Years 11+ (c)
Global Equity 50.00%4.80% 5.98%
Fixed Income 28.00%1.00% 2.62%
Inflation Sensitive 0.00%0.77% 1.81%
Private Equity 8.00%6.30% 7.23%
Real Estate 13.00%3.75% 4.93%
Liquidity 1.00%0.00% -0.92%
Total 100.00%
(a) In the System's CAFR, Fixed Income is included in Global Debt Securities;
Liquidity is included in Short-term Investments; Inflation Assets are included
in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period.
(c) An expected inflation of 2.92% used for this period.
Page 63
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
- The following presents the District’s proportionate share of the net pension liability for the Plan,
calculated using the discount rate for the Plan, as well as what the District’s proportionate share of the net
pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-
percentage point higher than the current rate:
Miscellaneous
1% Decrease 6.15%
Net Pension Liability 24,190,794$
Current 7.15%
Net Pension Liability 13,470,046$
1% Increase 8.15%
Net Pension Liability 4,611,829$
Pension Plan Fiduciary Net Position - Detailed information about each pension plan’s fiduciary net
position is available in the separately issued CalPERS financial reports.
PARS Section 115 Trust - During fiscal year 2017-18, the District established a Section 115 Trust Fund
for Pension Costs with Public Agency Retirement Services (PARS). The amount in this trust is not
included as part of the District's net pension liability calculation.
NOTE 9 - POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Plan Description - The District joined the California Employers' Retiree Benefit Trust (CERBT), an
agent multiple-employer defined benefit postemployment healthcare plan administered by CalPERS. See
eligibility requirements below. Retiree benefit continues to surviving spouse if retiree elects survivor
annuity under CalPERS retirement plan. The OPEB plan’s audited financial statements are available at
https://www.calpers.ca.gov/docs/forms-publications/gasb-75-schedule-changes-fiduciary-net-position-
2017.pdf.
Benefits Provided - The following is a summary of the plan benefits provided:
Eligibility:Retire directly from the District under CalPER (age 50 and 5
years of service)
Continue participation in PEMHCA
Retiree Medical Benefit:District pays retiree medical premiums up to:
- $300/month effective 1/1/07
- $350/month effective 1/1/09
Must be at least equal to statutory PEMHCA minimum
($122 in 2015, $125 in 2016)
PEMHCA Administrative Fee:District pays CalPERS administrative fees (0.32% of
premiums for 2015/16)
Surviving Spouse Continuation:Retiree beneift continues to surviving spouse if retiree elects
survivor annuity under CalPERS retirement plan
Minimum Age:Retirement under CalPERS
Page 64
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Employees Covered by Benefit Terms - At June 30, 2021, the benefit terms covered the following
employees:
Active employees 165
Inactive employees 45
Total employees 210
Contributions - The District makes contributions based on an actuarially determined rate and are
approved by the authority of the District’s Board. Total contributions during the year were $789,326.
Total contributions included in the measurement period were $638,539. The actuarially determined
contribution for the measurement period was $686,000. The District’s contributions were 4.2% of
covered payroll during the measurement period June 30, 2020 (reporting period June 30, 2021).
Employees are not required to contribute to the plan.
Actuarial Assumptions - The following summarized the actuarial assumptions for the OPEB plan
included in this fiscal year:
Valuation Date:June 30, 2019
Measurement Date:June 30, 2020
Actuarial Cost Method:Entry age normal, level precentage of payroll
Amortization Period:7.5 years
Asset Valuation Method:Investment gains and loses spread over 5-year rolling period
Actuarial Assumptions:
Discount Rate 6.75%
General Inflation 2.75%
Payroll Increases Aggregate - 3%
Merit - CalPERS 1997-2015 experience study
Medical Trend Non-medicare - 7.25% for 2021, decreasing to an ultimate
rate of 4.0% in 2076 and later years
Medicare - 6.3% for 2021, decreasing to an ultimate rate
of 4.0% in 2076 and later years
PEMHCA Minimum Increases 4.25%
Mortality, Retirement,
Disability, Termination
CalPERS 1997-2015 experience study
Mortality Improvement Post-retirement mortality projected fully generational with
Society of Actuaries Scale MP-2019
Healthcare Participation for
Future Retirees
Currently covered: 90%
Currently waived: 60%
Discount Rate - The projection of cash flows used to determine the discount rate assumed that the
District contribution will be made at rates equal to the actuarially determined contribution rates. Based on
those assumptions, the OPEB plan's fiduciary net position was projected to cover all future OPEB
payments. Therefore, the discount rate was set to be equal to the long-term expected rate of return which
was applied to all periods of projected benefit payments to determine the total OPEB liability.
Page 65
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Long-Term Expected Rate of Return - The long-term expected rate of return on OPEB plan
investments was determined using a building-block method in which expected future real rates of return
(expected returns, net of OPEB plan investment expense and inflation) 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 and by adding expected
inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Asset Class
Percentage of
Portfolio
Long-Term
Expected Rate of
Ret u rn
Global Equity 59% 4.82%
Fixed Income 25% 1.47%
TIPS 5% 1.29%
Commodities 3% 0.84%
REITs 8% 3.76%
Total 100%
Net OPEB Liability - The District's net OPEB liability was measured as of June 30, 2020 (measurement
date), and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial
valuation as of June 30, 2019 (valuation date) for the fiscal year ended June 30, 2021 (reporting date).
The following summarizes the changes in the net OPEB liability during the year ended June 30, 2021:
Fiscal Year Ended June 30, 2021
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability (Asset)
Balance at June 30,2020 6,019,695$ 4,518,851$ 1,500,844$
Service cost 390,204 - 390,204
Interest in Total OPEB Liability 426,406 - 426,406
Employer contributions - 638,539 (638,539)
Balance of diff between actual and exp experience - - -
Balance of changes in assumptions (88,493) - (88,493)
Actual investment income - 212,944 (212,944)
Administrative expenses - (2,274) 2,274
Benefit payments (185,539) (185,539) -
Net changes 542,578 663,670 (121,092)
Balance at June 30, 2021 6,562,273$ 5,182,521$ 1,379,752$
Covered Employee Payroll 18,617,066$
Total OPEB Liability as a % of Covered Employee Payroll 35.25%
Plan Fid. Net Position as a % of Total OPEB Liability 78.97%
Service Cost as a % of Covered Employee Payroll 2.10%
Net OPEB Liability as a % of Covered Employee Payroll 7.41%
Page 66
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Deferred Inflows and Outflows of Resources - At June 30, 2021the District reported deferred outflows
of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Difference between actual and expected experience -$ 126,363$
Difference between actual and expected earnings 58,069 -
Change in assumptions - 104,716
OPEB contribution subsequent to measurement date 789,326 -
Totals 847,395$ 231,079$
Of the total amount reported as deferred outflows of resources related to OPEB, $789,326 resulting from
District contributions subsequent to the measurement date and before the end of the fiscal year will be
included as a reduction of the net OPEB liability in the year ended June 30, 2022. Other amounts reported
as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year Ended June 30,
2022 (30,087)$
2023 (9,487)
2024 (1,810)
2025 (6,173)
2026 (26,406)
Thereafter (99,047)
Total (173,010)$
OPEB Expense - The following summarizes the OPEB expense by source during the year ended June
30, 2021:
Service cost 390,204$
Interest in TOL 426,406
Expected investment income (314,118)
Difference between actual and expected experience (15,043)
Difference between actual and expected earnings (3,681)
Change in assumptions (11,363)
Administrative expenses 2,274
OPEB Expense 474,679$
The following summarizes changes in the net OPEB liability as reconciled to OPEB expense during the
year ended June 30, 2021:
1,379,752$
(1,500,844)
(121,092)
Changes in deferred inflows 15,300
Employer contributions and implict subsidy 638,539
OPEB Expense 474,678$
Net OPEB liability ending
Net OPEB liability begining
Change in net OPEB liability
Page 67
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Sensitivity to Changes in the Discount Rate - The net OPEB liability of the District, as well as what the
District's net OPEB liability would be if it were calculated using a discount rate that is one percentage
point lower or one percentage point higher, is as follows:
(1% Decrease )6.75%(1% Increase )
Net OPEB Liability (Asset)2,340,075$ 1,379,752$ 597,423$
Discount Rate
Sensitivity to Changes in the Healthcare Cost Trend Rates - The net OPEB liability of the District, as
well as what the District's net OPEB liability would be if it were calculated using healthcare cost trend
rates that are one percentage point lower or one percentage point higher than current healthcare cost trend
rates, is as follows:
(1% Decrease )4.25%(1% Increase )
Net OPEB Liability (Asset)1,085,891$ 1,379,752$ 1,791,565$
Trend Rate
NOTE 10 - JOINT VENTURES (JOINT POWERS AGREEMENTS)
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; injuries to employees; and natural disasters. Prior to July 1, 2002, the District managed and
financed these risks by purchasing commercial insurance. On July 1, 2002, the District joined the
California Joint Powers Insurance Authority (CAL JPIA). CAL JPIA is composed of 119 California
public entities and is organized under a joint powers agreement pursuant to California Government Code
Section 6500 et seq. The purpose of CAL JPIA is to arrange and administer programs for the pooling of
self-insurance losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased
insurance for property and other coverages. CAL JPIA's pool began covering claims of its members in
1978. Each member government has an elected official as its representative on the Board of Directors.
The Board operates through a nine-member Executive Committee.
During the past three fiscal periods, none of the programs of protection have had settlements or judgments
that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured
liability coverage from coverage in the prior period.
Self-Insurance Programs of the CAL JPIA
General and Automobile Liability
Each government member pays a primary deposit to cover estimated losses for a fiscal year (claims year).
General liability (GL) coverage includes bodily injury, personal injury, or property damage to a third
party resulting from a member activity. The GL program also provides automobile liability coverage. Six
months after the close of a fiscal period, outstanding claims are valued. A retrospective deposit
computation is then made for each open claims year. Costs are spread to members as follows: the first
$30,000 to $750,000 are pooled based on member's share of costs under $30,000; costs in excess of
$750,000 are shared by the members based upon each individual member's payroll. Costs of covered
claims above $5,000,000 are currently paid by reinsurance. The protection for each member is
$50,000,000 per occurrence, up to $50,000,000.
Page 68
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
Worker's Compensation
The District also participates in the Worker's Compensation program administered by CAL JPIA. Pool
deposits and retrospective adjustments are valued in a manner similar to the General Liability pool. The
District is charged for the first $50,000 of each claim. Costs from $50,000 to $100,000 per claim are
pooled based on the member's losses under its retention level. Costs between $100,000 and $2,000,000
per claim are pooled based on payroll. Costs from $2,000,000 to $5,000,000 are paid by excess insurance
purchased by CAL JPIA. The excess insurance provides coverage to statutory limits.
Purchased Insurance
Environmental Insurance
The District participates in the Pollution and Remediation Legal Liability Program, which is available
through CAL JPIA. The policy provides coverage for both first and third party damages, including certain
types of cleanups; fuel spill or hazmat incidents; member listed non-owned disposal sites; above ground
and underground storage tanks; and for sudden and gradual pollution at or from property, streets, sanitary
sewer trunk lines and storm drain outfalls owned by the District. Coverage is on a claims-made basis.
There is a $50,000 deductible. CAL JPIA has a limit of $50,000,000 for the three-year coverage period.
The current coverage period is July 2017 through July 1, 2020. Each member of CAL JPIA has a
$10,000,000 aggregate limit during the three-year period. The current coverage period is July 2017
through July 1, 2020.
Property Insurance
The District participates in the All-Risk property program of CAL JPIA which includes all-risk coverage
for real and personal property (such as scheduled buildings, office furniture, equipment, vehicles, etc).
This insurance is underwritten by several insurance companies. Property is currently insured according to
a schedule of covered property submitted by the District to CAL JPIA. The All-Risk deductible is $5,000
per occurrence; $1,000 for non-emergency vehicles. Premiums for the coverage are paid annually and are
not subject to retroactive adjustments.
Boiler & Machinery Insurance
The District participates in the optional coverage for boiler and machinery, which is purchased separately
under the property program. Coverage is for physical damage for sudden and accidental breakdown of
boilers and machinery, and electrical injury. There is a $5,000 per accident or occurrence deductible.
Crime Insurance
The District participates in the crime program of CAL JPIA in the amount of $1,000,000 per claim, with a
$2,500 per occurrence deductible. Insurance provides coverage for employee dishonesty, failure to
faithfully perform duties, forgery, counterfeiting, theft, robbery, burglary, and computer fraud. Premiums
are paid annually and are not subject to retroactive adjustments.
Special Event Tenant User Liability Insurance
The District participates in the special events program of CAL JPIA which provides liability insurance
when District premises are used for special events. The insurance premium is paid by the tenant user to
Page 69
Midpeninsula Regional Open Space District
Notes to the Basic Financial Statements
June 30, 2021
the District according to a schedule. The District then pays the insurance arranged through CAL JPIA.
There is no deductible and the District is added as additional insured. Liability limits are purchased in $1
million per occurrence increments.
Vendors/Contractors Program
General liability coverage with or without professional liability is offered through CAL JPIA to
vendors/contractors who otherwise could not meet the District’s minimum insurance requirement: $1
million per occurrence, $2 million in aggregate.
Cyber Liability Program
The cyber liability program is partially covered under the liability program, and partially held through a
stand-alone coverage program. Cyber liability provides coverage for both first- and third-party claims.
First party coverage includes privacy, regulatory claims, security breach response, business income loss,
dependent business income loss, digital asset restoration costs, and cyber-extortion threats, while third-
party coverage includes privacy liability, network security liability, and multimedia liability. Members
work directly with the reinsurer to investigate and respond to claims. There is a $1 million per occurrence
limit of coverage, $1 million aggregate limit per policy period per member, and a $10 million aggregate
limit of coverage for all members per policy period.
NOTE 11 - COMMITMENTS AND CONTINGENCIES
Litigation
The District may be exposed to various claims and litigation during the normal course of business.
However, management believes there were no matters that would have a material adverse effect on the
District’s financial position or results of operations as of June 30, 2021.
Commitments
As of June 30, 2020, the District had remaining commitments of $33,367,748 towards construction and
other contracts from original contract balances of $60,302,175. These commitments are not liabilities of
the District’s until services or goods have been rendered/received. The expected date of completion is
between June 2021 and December 2099.
NOTE 12 - SUBSEQUENT EVENTS
Management has evaluated all subsequent events from the statement of financial position date of June 30,
2020, through the date the financial statements were available to be issued, November 22, 2021.
Beginning in March 2020, the United States economy began suffering adverse effects from the COVID
19 Virus Crisis ("CV19 Crisis"). As of the date of issuance of the financial statements, the District had not
suffered material adverse impact from the CV19 Crisis. However, the future impact of the CV19 Crisis on
the District cannot be reasonably estimated.
Page 70
Required Supplementary Information
Page 71
Page Intentionally Left Blank
Page 72
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Property taxes 53,487,274$ 55,689,641$ 57,048,132$ 1,358,491$
Grant income 293,500 150,000 195,085 45,085
Property management 1,729,450 1,729,450 2,297,444 567,994
Investment earnings 907,760 907,760 1,810,659 902,899
Other revenues 486,761 486,761 978,340 491,579
Total revenues 56,904,745 58,963,612 62,329,660 3,366,048
Expenditures:
Current
Salaries and employee benefits 25,633,171 25,715,171 24,947,275 767,896
Services and supplies 11,202,854 10,885,504 8,743,629 2,141,875
Capital outlay 48,000 - - -
Total expenditures 36,884,025 36,600,675 33,690,904 2,909,771
Excess (deficiency) of revenues
over (under) expenditures 20,020,720 22,362,937 28,638,756 6,275,819
Other financing sources (uses):
Transfers in - - - -
Transfers out (20,120,191) (20,120,191) (15,916,159) 4,204,032
Total other financing sources (uses)(20,120,191) (20,120,191) (15,916,159) 4,204,032
Net change in fund balance (99,471) 2,242,746 12,722,597 10,479,851
Fund balance beginning 56,940,463 56,940,463 56,940,463 -
Prior period adjustments - - (43,913) (43,913)
Fund balance beginning - as adjusted 56,940,463 56,940,463 56,896,550 (43,913)
Fund balance ending 56,840,992$ 59,183,209$ 69,619,147$ 10,435,938$
The District employs budget control by object codes and by individual appropriation accounts. Budgets are prepared on the
modified accrual basis of accounting in accordance with accounting principles generally accepted in the United States of
America as prescribed by the Governmental Accounting Standards Board. The budgets are revised during the year by the
Board of Directors to provide for revised priorities. Expenditures cannot legally exceed appropriations by major object code.
The originally adopted and final revised budgets for the General Fund are presented as Required Supplementary Information.
The basis of budgeting is the same as GAAP. Transfers out exceeded budget as noted above because of the transfer to GF
Capital Projects Fund for the District's capital projects and debt service payments.
Budgeted Amounts
Midpeninsula Regional Open Space District
Budget to Actual (GAAP)
For the Fiscal Year Ended June 30, 2021
Schedule of Revenues, Expenditures and Changes in Fund Balance
General Fund
Page 73
Miscellaneous Plan
Fiscal Year Ended 2015 2016 2017 2018 2019 2020 2021
Contractually Required Contributions 1,461,069$ 1,358,520$ 1,514,352$ 1,763,650$ 1,358,184$ 1,534,253$ 1,791,425$
Contributions in Relation to Contractually
Required Contributions 1,343,244 4,788,977 2,529,862 1,783,789 1,358,206 1,534,253 1,791,425
Contribution Deficiency (Excess)117,825$ (3,430,457)$ (1,015,510)$ (20,139)$ (22)$ -$ -$
Covered Payroll 8,994,979$ 9,862,578$ 11,834,150$ 12,802,887$ 15,311,826$ 15,435,511$ 16,402,829$
Contributions as a % of Covered Payroll 14.93% 48.56% 21.38% 13.93% 8.87% 9.94% 10.92%
Notes to Schedule:
Valuation Date: June 30, 2019
Assumptions Used: Entry Age Method used for Actuarial Cost Method
Level Percentage of Payroll and Direct Rate Smoothing
3.8 Years Remaining Amortization Period
Inflation Assumed at 2.5%
Investment Rate of Returns set at 7.15%
Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65%
to 7.15% in fiscal year 2018.
The CalPERS mortality assumptions was adjusted in fiscal year 2019.
Midpeninsula Regional Open Space District
Schedule of Pension Plan Contributions
June 30, 2021
CalPERS mortality table based on CalPERS' experience and include 15 years of projected ongoing mortality improvement
using 90 percent of Scale MP 2016 published by the Society of Actuaries.
Page 74
Miscellaneous Plan
Fiscal Year Ended 2015 2016 2017 2018 2019 2020 2021
Proportion of Net
Pension Liability 0.39847% 0.41627% 0.29137% 0.27962% 0.27629% 0.29538% 0.31934%
Proportionate Share of
Net Pension Liability 9,848,203$ 11,420,126$ 10,121,906$ 11,022,824$ 10,412,478$ 11,828,627$ 13,470,046$
Covered Payroll 8,448,635$ 8,994,979$ 9,862,578$ 11,834,150$ 12,802,887$ 15,311,826$ 15,435,511$
Proportionate Share of NPL
as a % of Covered Payroll 116.57% 126.96% 102.63% 93.14% 81.33% 77.25% 87.27%
Plan's Fiduciary Net Position
as a % of the TPL 81.15% 79.23% 80.93% 82.04% 84.37% 83.84% 83.28%
Fiscal year 2015 was the first year of implementation, therefore only seven years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65%
to 7.15% in fiscal year 2018.
The CalPERS mortality assumptions was adjusted in fiscal year 2019.
June 30, 2021
Schedule of Net Pension Liability Proportionate Shares
Midpeninsula Regional Open Space Distric
Page 75
Fiscal Year Ended 2018 2019 2020 2021
Actuarially determined contribution (ADC)609,000$ 624,000$ 643,000$ 686,000$
Less: actual contribution in relation to ADC (412,000) (670,768) (638,539) (789,326)
Contribution deficiency (excess)197,000$ (46,768)$ 4,461$ 4,461$
Covered employee payrol 12,802,887$ 13,550,000$ 16,838,000$ 18,617,066$
Contributions as a % of covered employee payrol 3.22% 4.95% 3.79% 4.24%
Assumptions and Methods
Valuation Date:
Measurement Date:
Actuarial Cost Method:
Amortization Period:
Asset Valuation Method:
Actuarial Assumptions:
Discount Rate
General Inflation
Payroll Increases
Medical Trend
PEMHCA Minimum Increases
Mortality, Retirement, Disability, Termination
Mortality Improvement
Healthcare Participation for Future Retirees
Other Notes
Mortality improvement scale was updated to Scale MP-2019 from MP-2017 in fiscal year 2020
The discount rate decreased from 7.0% to 6.5% in fiscal year 2019
Non-medicare - 7.5% for 2019, decreasing to an
ultimate rate of 4.0% in 2076 and later years
Medicare - 6.5% for 2019, decreasing to an
ultimate rate of 4.0% in 2076 and later years
Entry age normal, level precentage of payroll
7.5 years
Investment gains and loses spread over 5-year rolling period
6.75%
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year
in which contributions are reported.
Midpeninsula Regional Open Space District
Schedule of Contributions for Postemployment Benefit
June 30, 2021
There were no changes in benefit terms or trend rates
GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if
less than ten years are available. GASB 75 was adopted as of June 30, 2018.
PPACA excise tax was repealed 12/20/19. Since this is after the June 30, 2019 measurement date, the excise tax
is included in the June 30, 2019 Total OPEB Liability (TOL).
4.25%
CalPERS 1997-2015 experience study
Post-retirement mortality projected fully generational
with Society of Actuaries Scale MP-2019
Currently covered: 90%
Currently waived: 60%
June 30, 2019
June 30, 2020
2.75%
Aggregate - 3%
Merit - CalPERS 1997-2015 experience study
Page 76
Fiscal Year Ended 2018 2019 2020 2021
Total OPEB liability
Service cost 313,000$ 321,153$ 330,788$ 390,204$
Interest 326,000 361,203 397,289 426,406
Differences between expected and actual experienc - - (156,450) -
Changes of assumptions - - (30,520) (88,493)
Benefit payments (113,000) (162,000) (152,768) (185,539)
Net change in Total OPEB Liability 526,000 520,356 388,339 542,578
Total OPEB Liability - beginning 4,585,000 5,111,000 5,631,356 6,019,695
Total OPEB Liability - ending 5,111,000$ 5,631,356$ 6,019,695$ 6,562,273$
Plan fiduciary net position
Employer contributions 513,000$ 412,000$ 670,768$ 638,539$
Net investment income 287,000 259,143 232,579 212,944
Benefit payments (113,000) (162,000) (152,768) (185,539)
Administrative expense (1,000) (6,064) (807) (2,274)
Net change in plan fiduciary net position 686,000 503,079 749,772 663,670
Plan fiduciary net position - beginning 2,580,000 3,266,000 3,769,079 4,518,851
Plan fiduciary net position - ending 3,266,000$ 3,769,079$ 4,518,851$ 5,182,521$
Net OPEB liability (asset)1,845,000$ 1,862,277$ 1,500,844$ 1,379,752$
Plan fiduciary net position as a percentage of the
total OPEB liability 63.90% 66.93% 75.07% 78.97%
Covered Employee Payrol 11,834,150$ 12,802,887$ 13,550,000$ 16,838,000$
Net OPEB liability as a percentage of covered employee payro 15.59% 14.55% 11.08% 8.19%
Total OPEB liability as a percentage of covered employee payro 43.19% 43.99% 44.43% 38.97%
Other Notes
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal
year in which contributions are reported.
Midpeninsula Regional Open Space District
Schedule of Changes in Net OPEB Liability
June 30, 2021
GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available
if less than ten years are available. GASB 75 was adopted as of June 30, 2018
There were no changes in benefit terms or trend rates
PPACA excise tax was repealed 12/20/19. Since this is after the June 30, 2019 measurement date, the excise
tax is included in the June 30, 2019 Total OPEB Liability (TOL)
Mortality improvement scale was updated to Scale MP-2019 from MP-2017 in fiscal year 2020
The discount rate decreased from 7.0% to 6.5% in fiscal year 2019
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Page 78
Supplementary Information
Page 79
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Page 80
SUPPLEMENTARY INFORMATION
BUDGETARY SCHEDULES
These schedules present comparisons of the original budget, final budget and actual revenues and expenditures
for major capital project funds and debt service funds. These schedules presents the difference between the final
budget and actuals.
BOND PROGRAM EXPENDITURES
This schedule presents the program expenditures for the Measure AA Bond Program for the current year and the
in total since the inception of the program.
Page 81
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Grant income 1,621,509$ 1,765,009$ 2,482,991$ 717,982$
Investment earnings 411,475 411,475 96,799 (314,676)
Total revenues 2,032,984 2,176,484 2,579,790 403,306
Expenditures:
Current
Salaries and employee benefits - 587,235 543,264 43,971
Services and supplies - - - -
Capital outlay 11,868,588 14,519,151 11,862,954 2,656,197
Total expenditures 11,868,588 15,106,386 12,406,218 2,700,168
Excess (deficiency) of revenues
over (under) expenditures (9,835,604) (12,929,902) (9,826,428) 3,103,474
Other financing sources (uses):
Transfers in - - - -
Transfers out - - (311,159) (311,159)
Total other financing sources (uses)- - (311,159) (311,159)
Net change in fund balance (9,835,604) (12,929,902) (10,137,587) 2,792,315
Fund balance beginning 32,301,379 32,301,379 32,301,379 -
Prior period adjustment - - (28,828) (28,828)
Fund balance beginning - as adjusted 32,301,379 32,301,379 32,272,551 28,828
Fund balance ending 22,465,775$ 19,371,477$ 22,134,964$ 2,763,487$
Budgeted Amounts
Midpeninsula Regional Open Space District
Schedule of Revenues, Expenditures and Changes in Fund Balanc
Budget to Actual (GAAP)
Measure AA Capital Projects Fund
For the Fiscal Year Ended June 30, 2021
Page 82
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Grant income -$ 196,000$ 196,000$ -$
Investment earnings - - 31,952 31,952
Total revenues - 196,000 227,952 31,952
Expenditures:
Capital outlay 15,856,328 15,312,048 12,276,840 3,035,208
Total expenditures 15,856,328 15,312,048 12,276,840 3,035,208
Excess (deficiency) of revenues
over (under) expenditures (15,856,328) (15,116,048) (12,048,888) 3,067,160
Other financing sources (uses):
Transfers in 9,441,116 9,441,116 5,644,822 (3,796,294)
Transfers out - - - -
Total other financing sources (uses)9,441,116 9,441,116 5,644,822 (3,796,294)
Net change in fund balance (6,415,212) (5,674,932) (6,404,066) (729,134)
Fund balance beginning 6,843,580 6,843,580 6,843,580 -
Prior period adjustment - - 43,010 43,010
Fund balance beginning - as adjusted 6,843,580 6,843,580 6,886,590 43,010
Fund balance ending 428,368$ 1,168,648$ 482,524$ (686,124)$
Budgeted Amounts
Midpeninsula Regional Open Space District
Schedule of Revenues, Expenditures and Changes in Fund Balanc
Budget to Actual (GAAP)
GF Capital Projects Fund
For the Fiscal Year Ended June 30, 2021
Page 83
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Property taxes 6,200,000$ 5,000,000$ 5,428,038$ 428,038$
Investment earnings 41,040 41,040 39,534 (1,506)
Total revenues 6,241,040 5,041,040 5,474,549 433,509
Expenditures:
Debt service:
Principal 8,395,000 8,395,000 8,395,000 -
Interest 8,245,925 8,245,925 8,245,925 -
Total expenditures 16,640,925 16,640,925 16,640,925 -
Excess (deficiency) of revenues
over (under) expenditures (10,399,885) (11,599,885) (11,166,376) 433,509
Other financing sources (uses):
Transfers in 10,679,075 10,679,075 10,582,496 (96,579)
Total other financing sources (uses)10,679,075 10,679,075 10,582,496 (96,579)
Net change in fund balance 279,190 (920,810) (583,880) 336,930
Fund balance beginning 4,813,811 4,813,811 4,813,811 -
Fund balance ending 5,093,001$ 3,893,001$ 4,229,931$ 336,930$
Budgeted Amounts
Midpeninsula Regional Open Space District
Schedule of Revenues, Expenditures and Changes in Fund Balanc
Budget to Actual (GAAP)
Debt Service Fund
For the Fiscal Year Ended June 30, 2021
Page 84
Expenditures Expenditures
from from
July 1, 2020 Inception
Project through through
No. Project Description Adjustments June 30, 2021 June 30, 2021
AA01 Miramontes Ridge - Gateway to San Mateo Coast - 421,962 421,962
AA02 Regional: Bayfront Habitat Protection & Public Access Partnerships - 493,849 6,845,065
AA03 Purisima Creek Redwoods: Purisma-to Sea Trail, Watershed & Grazing 43,010 5,138,201 6,479,976
AA04 El Corte de Madera Creek: Bike Trail & Water Quality Projects (38,449) - 966,168
AA05 La Honda Creek - Upper Recreation Area - 211,991 2,675,767
AA06 Hawthorn Public Access Improvements - 9,701 40,950
AA07 Driscoll Ranch Public Access, Wildlife Protection & Grazing - 193,179 12,498,683
AA08 La Honda/Russian Ridge: Upper San Gregorio Watershed - - 2,153,910
AA09 Russian Ridge: Public Recreation, Grazing & Wildlife Protection - 295,369 689,925
AA10 Coal Creek: Reopen Alpine Road for Trail Use - 122,307 467,648
AA11 Rancho San Antonio: Interpretive Improvements, Refurbishing - 347,905 513,233
AA15 Regional: Redwood Protection & Salmon Fishery Conservation - 35,269 3,110,818
AA17 Regional: Complete Upper Stevens Creek Trail - - 2,386,441
AA18 South Bay Foothills: Saratoga-to-Sea Trail & Wildlife Corridor - 429,791 1,164,189
AA19 El Sereno Dog Park & Connections - 1,085,237 1,564,764
AA20 South Bay Foothills: Wildlife Passage/Ridge Trail Improvements - 610,596 1,181,211
AA21 Bear Creek Redwoods: Public Recreation & Interpretive Projects - 1,305,950 11,236,434
AA22 Sierra Azul: Cathedral Oaks Public Access & Conservation Projects 14,368 18,880 1,259,164
AA23 Sierra Azul: Mt Umunhum Public Access & Interpretation Projects - 1,098 22,976,801
AA24 Sierra Azul: Rancho de Guadalupe Family Recreation - - 1,591,996
AA25 Sierra Azul: Loma Prieta Area Public Access, Regional Trails/Habitat Projects - 1,684,933 2,095,083
Total MAA Bond Project Expenditures 18,929 12,406,218 82,320,188
Reimbursements from Grants, Contributions, and Other Funds - (2,482,991) (7,296,691)
Total MAA Bond Project Expenditures - Net Reimbursements 18,929$ 9,923,227$ 75,023,497$
Midpeninsula Regional Open Space Distric
Measure AA Bond Program
Schedule of Program Expenditures
June 30, 2021
Page 85
Midpeninsula Regional Open Space District
Notes to Supplementary Information
June 30, 2021
NOTE 1 - BACKGROUND
Measure AA is a $300 million general obligation bond approved in June 2014 by over two-thirds of
Midpen voters. Proceeds from bonds, which will be sold in a series over approximately the next 20-30
years, will be used to:
• Protect natural open space lands
• Open preserves or areas of preserves that are currently closed
• Construct public access improvements such as new trails and staging areas
• Restore and enhance open space land, which includes forests, streams, watersheds, and coastal
ranch areas.
On July 29, 2015, the District issued $40,000,000 of 2015A general obligation bonds and $5,000,000 of
2015B federally taxable general obligation bonds to finance certain projects authorized by voters. The
bonds bear interest from 1.5% to 5% and are due semi-annually on March 1 and September 1. The bonds
were issued at a premium of $2,559,224 with an underwriter’s discount of $107,599 and issuance costs of
$170,000.
On February 1, 2018, the District issued $50,000,000 of 2018 general obligation bonds to finance 25
projects specified in Measure AA. The bonds bear interest from 2% to 5% and are due semi-annually on
March 1 and September 1. The bonds were issued at a premium of $3,691,291 with an issuance costs of
$455,462.
Land acquisition is the first step to open space conservation. The Vision Plan identified 50,000 acres of
open space land that, when conserved, would significantly improve wildlife conditions, wetlands,
watersheds, creeks, sensitive plant communities and healthy outdoor recreation. As of June 30, 2021, the
District has acquired and / or preserved over 1,700 acres of land with $24 million in funding support from
Measure AA Funds.
NOTE 2 - OVERISGHT COMMITTEE
The Oversight Committee is essential to implementing Measure AA and will consist of seven at-large
members who reside within the District. The Committee convenes at least once a year and reviews annual
Measure AA expenditures and Midpen’s Annual Audit and Accountability report. Each year, the
Committee’s findings will be presented to the Board at a public meeting and will be posted on the
District’s website.
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basis of accounting utilized in preparation of this report may differ from accounting principles
generally accepted in the United States of America. Accordingly, the accompanying program statement is
not intended to present the financial position and the results of operations in conformity with accounting
principles generally accepted in the United States of America. Expenditures incurred with Measure AA
Bond proceeds are recorded on a modified accrual basis of accounting. Under the modified accrual basis
of accounting, revenue is recognized when it is measurable and available. Similarly, expenses are
recognized when they are incurred, not when they are paid.
Page 86
Statistical Information
Page 87
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Page 88
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
Sources
These schedules contain service and infrastructure data to help the reader understand how the information in the District’s financial report relates to
the services the District provides and the activities it performs:
1. Full-Time Equivalent Employees by Function
2. Capital Asset Statistics by Function
3. Operating Indicators by Function
Unless otherwise noted, the information in these schedules is derived from the Annual Financial Reports for the relevant year.
STATISTICAL SECTION
This part of the District’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the
information in the financial statements, note disclosures, and required supplementary information says about the District’s overall financial
health. In contrast to the financial section, the statistical section information is not subject to independent audit.
These schedules contain trend information to help the reader understand how the District’s financial performance and well being have changed over
time:
1. Net Position
2. Changes in Net Position
3. Fund Balances of Governmental Funds
4. Changes in Fund Balances of Governmental Funds
These schedules contain information in relation to the District’s property tax assessments:
1. Assessed and Actual Value of Taxable Property
2. Direct and Overlapping Property Tax Rates
3. Pricipal Property Tax Payers
4. Property Tax Levies and Collections
These schedules present information to help the reader assess the affordability of the District’s current levels of outstanding debt and the District’s
ability to issue additional debt in the future:
1. Ratios of General Bonded Debt Outstanding
2. Ratios of Outstanding Debt by Type
3. Computation of Direct and Overlapping Debt
4. Legal Debt Margin Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the District’s financial
activities take place:
1. Demographic and Economic Statistics
2. Principal Employers
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Page 90
Governmental activities 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Net investment in capital assets 245,393$ 259,638$ 268,869$ 278,611$ 276,395$ 308,601$ 312,121$ 351,152$ 371,186$ 382,788$
Restricted 1,568 2,731 4,327 2,566 5,786 4,571 7,252 8,207 6,277 5,731
Unrestricted 42,738 36,919 37,951 39,948 39,280 23,831 29,415 8,015 14,617 26,926
Total Net Position 289,699$ 299,288$ 311,147$ 321,125$ 321,461$ 337,003$ 348,788$ 367,374$ 392,080$ 415,445$
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Net Position
(amounts expressed in thousands)
Last Ten Fiscal Years
(accrual basis of accounting)
Page 91
Governmental activities 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Expenses
Land preservation 14,312$ 19,338$ 17,930$ 19,478$ 26,080$ 21,783$ 28,910$ 34,304$ 32,482$ 38,861$
Interest and fiscal charges 7,483 7,273 7,163 7,202 9,752 8,327 8,193 10,449 9,874 8,356
Depreciation 806 840 1,095 1,232 1,311 1,585 2,399 - - -
Loss on refunding of debt - - - - - - - - - -
Total governmental activities expenses 22,601 27,451 26,188 27,912 37,143 31,695 39,502 44,753 42,356 47,217
Program Revenues
Charges for Services 1,320 1,381 1,422 1,437 1,636 1,479 1,576 2,360 2,655 2,298
Grants and Contributions 1,453 913 1,901 953 1,194 651 1,613 1,082 3,293 2,881
Land donations 13,928 3,890 - - - - - - - -
Total governmental activities program revenues 16,701 6,184 3,323 2,390 2,830 2,130 3,189 3,442 5,948 5,179
Net (expense)/revenue - governmental activities (5,900) (21,267) (22,865) (25,522) (34,313) (29,565) (36,313) (41,311) (36,408) (42,038)
General Revenues and Other Changes in Net Position
Property taxes 28,737 30,270 32,433 35,082 44,980 43,861 47,798 54,395 57,251 62,476
Investment earnings 375 288 138 202 648 463 1,045 3,648 2,307 1,979
Use of money and property - - - - - - - - - -
Miscellaneous 394 298 182 216 810 784 1,153 1,557 976
Total governmental activities 29,506 30,856 32,753 35,500 46,438 45,108 49,996 58,043 61,115 65,431
Change in Net Position
Governmental activities 23,606 9,589 9,888 9,978 12,125 15,543 13,683 18,586 24,708 23,393
Prior period adjustments - - 1,971 - (11,790) - (1,898) - - (30)
Total Changes in Net Position 23,606$ 9,589$ 11,859$ 9,978$ 335$ 15,543$ 11,785$ 18,586$ 24,708$ 23,363$
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Page 92
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General fund
Nonspendable -$ -$ -$ -$ -$ 55$ 36$ 186$ 206$ 291$
Restricted - - 1,702 1,702 1,971 1,971 1,467 1,432 5,527 7,876
Committed - - - 20,400 35,400 35,400 55,300 29,288 30,518 40,587
Assigned - - 5,000 - - - - 1,400 710 2,891
Unassigned 41,782 37,513 34,453 21,330 16,848 23,872 16,306 16,515 19,979 17,971
Total General Fund 41,782$ 37,513$ 41,155$ 43,432$ 54,219$ 61,298$ 73,109$ 48,821$ 56,940$ 69,616$
All other governmental funds
Restricted 1,568$ 1,634$ 1,621$ -$ 26,894$ 9,539$ 59,304$ 52,975$ 43,959$ 26,847$
Total all other governmental funds 1,568$ 1,634$ 1,621$ -$ 26,894$ 9,539$ 59,304$ 52,975$ 43,959$ 26,847$
Source: Annual Financial Report
The District has implemented GASB 54 effective fiscal year ending March 31, 2011.
This Statement establishes new categories for reporting fund balance and revises the definitions for governmental fund types.
The District opted not to change the previous years' data.
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
(modified accrual basis of accounting)
(amounts expressed in thousands)
Midpeninsula Regional Open Space District
Fund Balances of Governmental Funds
Last Ten Fiscal Years
Page 93
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
REVENUES
Property taxes 28,737$ 30,270$ 32,433$ 35,082$ 44,980$ 43,861$ 47,798$ 54,395$ 57,251$ 62,476$
Grant income 1,453 913 1,901 953 1,194 651 1,613 1,082 3,293 2,881
Property management 1,320 1,381 1,422 1,438 1,636 1,479 1,576 2,360 2,655 2,297
Investment earnings 375 288 150 216 666 480 1,064 3,649 2,327 1,979
Other 240 146 145 241 644 609 348 641 262 978
Land donation 13,928 - - - - - - - - -
TOTAL REVENUE 46,053 32,998 36,051 37,930 49,120 47,080 52,399 62,127 65,788 70,611
EXPENDITURES
Land Preservation 13,996 18,713 17,303 18,272 28,965 25,807 28,226 29,186 31,445 34,234
Capital outlay 27,190 9,611 8,231 8,445 18,901 19,961 16,440 45,356 20,101 24,140
Debt service:
Principal and advance refunding escrow 4,457 2,843 2,999 3,145 4,367 5,193 6,392 6,480 9,115 8,395
Interest and fiscal charges 5,355 6,034 5,859 5,749 6,478 7,190 6,597 9,191 8,555 8,246
TOTAL EXPENDITURES 50,998 37,201 34,392 35,611 58,711 58,152 57,655 90,213 69,216 75,015
EXCESS (DEFICIT) OF REVENUES
OVER EXPENDITURES (4,945) (4,203) 1,659 2,319 (9,591) (11,072) (5,256) (28,086) (3,428) (4,404)
OTHER FINANCING SOURCES AND USES
Transfers in 9,827 8,877 8,858 8,894 12,146 15,839 9,409 49,929 21,110 16,227
Transfers out (9,827) (8,877) (8,858) (8,894) (12,146) (15,839) (9,409) (49,929) (21,110) (16,227)
Other sources 20,000 - - - - - - - - -
Payment to refunded bond escrow agent - - - - - (68,187) (27,660) - - -
Issuance of refunding debt - - - - - 57,410 25,025 - - -
Advance refunding of revenue bonds - - - (29,987) - - - - - -
Issuance of debt - - - 28,325 45,000 - 61,220 - - -
Premium from debt issuances - - - - 2,282 11,564 8,246 - - -
TOTAL OTHER FINANCING SOURCES (USES)20,000 - - (1,662) 47,282 787 66,831 - - -
NET CHANGES IN FUND BALANCES 15,055$ (4,203)$ 1,659$ 657$ 37,691$ (10,285)$ 61,575$ (28,086)$ (3,428)$ (4,404)$
Capitalized capital outlay expenditures 27,190 9,611 8,231 8,445 18,901 19,961 16,440 45,356 24,675 24,545
Debt Service as a percentage of noncapital expenditures 41.21% 32.17% 33.86% 32.74% 27.24% 32.43% 31.52% 34.94% 39.67% 32.97%
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Page 94
Fiscal Year Secured State Board Unsecured
Total before Rdv.
Increment
Total after Rdv.
Increment Total Direct Tax Rate
2012 110,480,451 5,192 6,843,137 117,328,780 112,337,379 1.00%
2013 115,665,767 5,192 7,574,405 123,245,364 117,796,453 1.00%
2014 125,816,313 5,192 8,032,680 133,854,185 128,261,360 1.00%
2015 134,293,819 3,616 8,134,278 142,431,713 136,364,266 1.00%
2016 148,710,117 3,616 8,236,861 156,950,594 151,221,560 1.00%
2017 161,457,837 3,616 8,664,927 170,126,380 163,586,434 1.00%
2018 174,219,310 3,616 9,773,726 183,996,652 177,153,795 1.00%
2019 188,007,378 8,646 10,266,764 198,282,788 191,359,437 1.00%
2020 201,019,887 8,646 9,814,574 210,843,107 203,359,598 1.00%
2021 215,781,759 8,646 11,330,441 227,120,846 218,943,920 1.00%
Fiscal Year Secured State Board Unsecured
Total before Rdv.
Increment
Total after Rdv.
Increment Total Direct Tax Rate
2012 51,670,521 2,465 1,952,159 53,625,145 49,913,049 1.00%
2013 53,793,234 2,465 1,948,563 55,744,262 51,977,724 1.00%
2014 57,513,572 2,336 2,180,554 59,696,462 55,714,674 1.00%
2015 60,798,837 2,343 2,087,353 62,888,533 58,641,318 1.00%
2016 66,177,633 3,086 2,363,781 68,544,500 63,519,108 1.00%
2017 72,017,698 3,085 2,640,434 74,661,217 68,354,025 1.00%
2018 78,506,564 3,085 2,996,701 81,506,350 73,565,159 1.00%
2019 85,236,395 2,658 2,756,478 87,995,531 79,176,299 1.00%
2020 99,187,975 3,219 2,894,481 102,085,675 92,428,172 1.00%
2021 106,601,125 3,117 2,841,197 109,445,439 98,825,038 1.00%
Source: California Municipal Statistics, Inc
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
County of San Mateo
Midpeninsula Regional Open Space District
Assessed and Actual Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
County of Santa Clara
Page 95
Fiscal Year
General Property
Tax Levy
Other
Overlapping
Governments
Open Space
District Total
General Property
Tax Levy
Other
Overlapping
Governments
Open Space
District Total
2012 1.00000 0.15060 - 1.15060 1.00000 0.08120 - 1.08120
2013 1.00000 0.18750 - 1.18750 1.00000 0.08060 - 1.08060
2014 1.00000 0.18740 - 1.18740 1.00000 0.07470 - 1.07470
2015 1.00000 0.18304 - 1.18304 1.00000 0.08530 - 1.08530
2016 4 1.00000 0.17807 0.00080 1.17887 1.00000 0.08420 0.00080 1.08500
2017 1.00000 0.17160 0.00060 1.17220 1.00000 0.10990 0.00060 1.11050
2018 1.00000 0.18133 0.00090 1.18223 1.00000 0.10300 0.00090 1.10390
2019 1.00000 0.17126 0.00180 1.17306 1.00000 0.09240 0.00180 1.09420
2020 1.00000 0.18202 0.00160 1.18362 1.00000 0.10020 0.00160 1.10180
2021 1.00000 0.18382 0.00150 1.18532 1.00000 0.08270 0.00150 1.08420
Source: FY 2020-21 Tax Rate Books for San Mateo and Santa Clara Counties
1 Due to the District’s size and that it is located in two counties (County of Santa Cruz excluded), there is no tax rate area that represents the typical
total tax rate for the District. The above tax rate areas are the largest in terms of assessed valuation for each County’s portion of the District.
2 The 2019-20 assessed valuation of Tax Rate Area (TRA) 6-001 is $32,480,806.925 which is 10.38 % of the District’s total assessed valuation.
3 The 2019-20 assessed valuation of TRA 9-001 is $10,868,501,012 which is 3.47% of the District’s total assessed valuation.
4 Fiscal Year 2015-16 was the first year in which ad valorem property taxes authorized by Measure AA were levied.
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Property Tax Rates
Direct and Overlapping1 Property Tax Rates
Last Ten Fiscal Years
County of Santa Clara (Tax Rate Area 6-001) 2 County of San Mateo (Tax Rate Area 9-001) 3
Page 96
Taxpayer
Taxable Assessed
Valuation Rank
Percentage of
Total Assessed
Valuation
Taxable Assessed
Valuation Rank
Percentage of
Total Assessed
Valuation
Google Inc. 8,144,595$ 1 2.53% 526,010$ 6 0.32%
Board of Trustees, Leland Stanford Jr. University 7,981,659 2 2.48% 4,509,753 1 2.78%
Campus Holdings Inc. 3,652,033 3 1.13% 545,464 3 0.34%
Hibscus Properties LLC 1,900,225 4 0.59% * *
Apple Computer Inc. 1,274,620 5 0.40% 446,301 8 0.28%
Sobrato Interests 1,166,727 6 0.36% * *
Facebook Inc. 1,102,946 7 0.34% * *
Lockheed Missiles and Space Co. Inc. 899,502 8 0.28% 568,561 2 0.35%
Intuitive Surgical Inc. 790,720 9 0.25% * *
Applied Materials Inc. 773,638 10 0.24% 377,467 10 0.23%
CW SPE LLC 771,597 11 0.24% * *
Oracle Corp. 659,396 12 0.20% 531,361 5 0.33%
Planetary Ventures LLC 654,936 13 0.20% * *
Richard T. Spieker, Trustee 635,599 14 0.20% * *
Menlo & Juniper Networks LLC 629,357 15 0.20% * *
Peninsula Innovation Partners LLC 505,168 16 0.16% * *
Moffett Place LLC 452,368 17 0.14% * *
Woodland Park Property Owner LLC 431,264 18 0.13% * *
441 Real Estate LLC 423,110 19 0.13% * *
MP 521 LLC 390,659 20 0.12% * *
Yahoo Holdings Inc. * * 395,430 9 0.24%
Network Appliance Inc. * * 537,135 4 0.33%
VII Pac Shores Investors LLC * * 481,917 7 0.30%
Arden Realty LP * * 243,515 17 0.15%
HCP Life Science REIT Inc. * * 317,826 11 0.20%
Wells REIT II-University Circle LP * * 312,533 12 0.19%
SPF Mathilda LLC * * 278,867 13 0.17%
Silicon Valley CA I LLC * * 260,390 16 0.16%
Redus Woodland LLC * * 236,268 18 0.15%
Slough Redwood City LLC * * 232,587 19 0.14%
MT SPE LLC * * 264,518 14 0.16%
Loral Space & Communications, Inc. * * 226,246 20 0.15%
Electronic Arts, Inc. * * 264,036 15 0.16%
Total 33,240,119$ 10.32% 11,556,185$ 7.14%
* Information not available
Source: California Municipal Statistics, Inc.
Midpeninsula Regional Open Space District
Principal Property Tax Payers
Current Year and Nine Years Ago
(amounts expressed in thousands)
Fiscal Year 2012Fiscal Year 2021
Page 97
Fiscal Year
Santa Clara County
Taxes Levied
San Mateo County
Taxes Levied
Santa Clara County
Collections
% of County
Levy
San Mateo County
Collections
% of County
Levy
2016 1,186,363$ 527,932$ 1,177,636$ 99.3%524,982$ 99.4%
2017 968,301 431,711 962,730 99.4%429,436 99.5%
2018 1,558,456 705,842 1,553,773 99.7%701,923 99.4%
2019 3,365,744 1,532,834 3,348,991 99.5%1,524,259 99.4%
2020 3,215,052 1,591,352 3,195,317 99.4%1,577,126 99.1%
2021 3,234,509 1,594,389 3,213,174 99.3%1,583,986 99.3%
Source: California Municipal Statistics, Inc.
1 District's general obligation bond debt service levy. Prior years are not available. Levy began in FY2015-16
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
CollectionsLevy 1
Midpeninsula Regional Open Space District
Property Tax Levies and Collections
Last Ten Fiscal Years
Page 98
Fiscal Year
General
Obligation Bonds
Debt Service
Monies Available Total
Taxable Assessed
Value
Percentage of
Taxable AV 1 Per Capita 2
2012 - - - 162,250,428 0.000% 0.00
2013 - - - 169,774,177 0.000% 0.00
2014 - - - 183,976,034 0.000% 0.00
2015 - - - 195,005,584 0.000% 0.00
2016 45,000 3,116 41,884 214,740,668 0.020% 15.56
2017 44,225 2,194 42,031 231,940,459 0.018% 15.53
2018 104,570 5,785 98,785 250,718,954 0.039% 36.32
2019 102,880 6,776 96,104 270,535,736 0.036% 35.22
2020 98,290 4,814 93,476 295,787,770 0.028% 34.18
2021 94,890 4,230 90,660 317,768,958 0.029% 30.09
*Information not available
Source: Annual Financial Report
See the Schedule of Assessed and Actual Value of Taxable Property for property value data.
Population data can be found in the Schedule of Demographic and Economic Statistics.
Midpeninsula Regional Open Space District
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
(amounts expressed in thousands, except per-capita amount)
Page 99
Fiscal Year
General
Obligation
Bonds
Lease
Revenue
Bonds Refunding Bonds Bond Premiums Notes Payable Total
Taxable Assessed
Value (AV)
Percentage of
Taxable AV
Percentage
of Personal
Income Per Capita
2012 - 51,947 49,179 2,515 36,898 140,539 162,250,428 0.087% 0.091% 54.64
2013 - 51,568 47,994 2,351 37,039 138,952 169,774,177 0.082% 0.088% 53.21
2014 - 51,021 50,665 2,188 36,285 140,159 183,976,034 0.076% 0.083% 53.06
2015 - 20,385 49,935 6,973 59,271 136,564 195,005,584 0.070% 0.074% 51.08
2016 45,000 20,290 47,300 9,087 58,698 180,375 214,740,668 0.084% 0.092% 66.92
2017 44,225 1,080 57,410 20,475 58,761 181,951 231,940,459 0.078% 0.084% 67.23
2018 104,570 930 78,870 26,839 34,466 245,675 250,718,954 0.098% 0.104% 90.50
2019 102,880 750 75,460 25,567 33,749 238,406 270,535,736 0.088% 0.095% 87.78
2020 98,290 535 72,435 24,263 32,971 228,494 295,787,770 0.077% * 84.12
2021 94,890 285 69,060 23,025 32,135 219,395 317,768,958 0.069%*81.27
* Information not available
Source: Annual Financial Report
(1) Details regarding the District's outstanding debt can be found in the notes to the financial statements.
(2) Refer to the Demographics Statistics for personal income and population data.
Ratios of Outstanding Debt
Last Ten Fiscal Years
Midpeninsula Regional Open Space District
(amounts expressed in thousands, except per-capita amount)
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Page 100
Midpeninsula Regional Open Space District
Santa Clara County, California
Computation of Direct and Overlapping Deb
For the Year Ended June 30, 2021
2020-21 Assessed Valuation: $336,566,285,580
Total Debt City’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/21 % Applicable (1)Debt 6/30/21
Santa Clara County $812,685,000 41.223%$ 335,013,138
Foothill-De Anza Community College District 707,932,142 93.983 665,335,865
San Mateo Community College District 761,305,961 42.745 325,420,233
West Valley-Mission Community College District 589,080,000 28.679 168,942,253
Palo Alto Unified School District 241,738,172 100.241,738,172
Fremont Union High School District 617,160,088 86.550 534,152,056
Sequoia Union High School District 494,220,000 91.682 453,110,780
Other High School Districts 1,597,306,379 Various 338,790,678
Belmont-Redwood Shores School District and
School Facilities Improvement Districts Nos. 1 and 2 56,498,407 8.605 -92.307 21,083,136
Cupertino Union School District 284,223,303 75.451 214,449,324
Los Altos School District 164,070,000 100.164,070,000
Los Gatos Union School District 72,185,000 98.170 70,864,015
Menlo Park City School District 126,677,593 100.126,677,593
San Carlos School District 109,837,118 96.574 106,074,098
Mountain View-Whisman School District 279,115,000 100.279,115,000
Sunnyvale School District 209,495,820 100.209,495,820
Other Unified and Elementary School Districts 2,634,554,483 Various 863,428,459
Cities 633,325,000 0.017-100.83,284,484
El Camino Hospital District 116,290,000 98.689 114,765,438
Saratoga Fire Protection District 2,319,428 100.2,319,428
Midpeninsula Regional Open Space District 86,400,000 100. 86,400,000
Community Facilities Districts 25,888,042 100.25,888,042
Santa Clara Valley Water District Benefit Assessment District 57,010,000 41.223 23,501,232
1915 Act Bonds (Estimate)26,094,571 99.699 -100. 26,091,591
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $5,480,010,835
(1)The percentage of overlapping debt applicable to the district is estimated using taxable assessed property value. Applicable
percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the
district divided by the district's total taxable assessed value.
(Continued.)
Page 101
Midpeninsula Regional Open Space District
Santa Clara County, California
Computation of Direct and Overlapping Deb
For the Year Ended June 30, 2021
Total Debt City’s Share of
DIRECT AND OVERLAPPING GENERAL FUND DEBT:6/30/21 % Applicable (1)Debt 6/30/21
Santa Clara County General Fund Obligations $914,957,860 41.223%$377,173,079
Santa Clara County Pension Obligation Bonds 341,399,194 41.223 140,734,990
San Mateo County General Fund Obligations 640,119,345 42.745 273,619,014
County Board of Education Certificates of Participation 9,510,000 41.223 -42.745 4,024,412
Foothill-DeAnza Community College District General Fund Obligations 22,085,000 93.983 20,756,146
West Valley-Mission Community College District General Fund Obligations 49,850,000 28.679 14,296,482
Union High School District General Fund Obligations 68,188,970 Various 6,427,116
Other Unified and Elementary School District General Fund Obligations 21,844,017 Various 8,261,263
City of Cupertino General Fund Obligations 19,900,000 93.330 18,572,670
City of Los Altos General Fund Obligations 10,377,499 100.10,377,499
City of Palo Alto General Fund Obligations 146,440,000 100.146,440,000
City of Redwood City General Fund Obligations 56,885,000 100.56,885,000
City of Sunnyvale General Fund Obligations 142,540,000 99.996 142,534,298
Other City General Fund Obligations 551,367,326 Various 4,722,978
Fire Protection Districts Certificates of Participation 22,755,000 100.22,755,000
Montara Water and Sanitary District Certificates of Participation 7,050,811 100.7,050,811
Santa Clara County Vector Control District Certificates of Participation 1,765,000 41.223 727,586
Midpeninsula Regional Open Space District General Fund Obligations 106,000,600 100. 106,000,600 (2)
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $1,361,358,944
Less:Santa Clara County supported obligations 10,420,059
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $1,350,938,885
OVERLAPPING TAX INCREMENT DEBT (Successor Agencies):$175,221,959 100. %$175,221,959
TOTAL DIRECT DEBT $192,400,600
TOTAL GROSS OVERLAPPING DEBT $6,824,191,138
TOTAL NET OVERLAPPING DEBT $6,813,771,079
GROSS COMBINED TOTAL DEBT $7,016,591,738 (3)
NET COMBINED TOTAL DEBT $7,006,171,679
(1)The percentage of overlapping debt applicable to the district is estimated using taxable assessed property value. Applicable
percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the
district divided by the district's total taxable assessed value.
(2)Excludes accreted value of capital appreciation bonds.
(3)Excludes tax and revenue anticipation notes, revenue, mortgage revenue and non-bonded capital lease obligations.
Ratios to 2020-21 Assessed Valuation:
Direct Debt ($86,400,000)..............................................................0.03%
Total Direct and Overlapping Tax and Assessment Debt.................1.63%
Combined Direct Debt ($192,400,600)..........................................0.06%
Gross Combined Total Debt.............................................................2.08%
Net Combined Total Debt ................................................................2.08%
Ratios to Redevelopment Successor Agency Incremental Valuation ($18,794,327,409):
Total Overlapping Tax Increment Debt ...........................................0.93%
AB:($600)
Page 102
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Assessed Valuation:
Assessed value subject to debt levy 162,250,428$ 169,774,177$ 183,976,034$ 195,005,584$ 214,740,668$ 231,940,459$ 250,718,954$ 270,535,736$ 295,787,770$ 317,768,958$
Total assessed valuation 162,250,428 169,774,177 183,976,034 195,005,584 214,740,668 231,940,459 250,718,954 270,535,736 295,787,770 317,768,958
Debt Applicable to Limitation:
Total debt 36,898 37,039 36,285 59,271 58,698 58,761 34,466 33,749 32,971 32,135
Less: amount available for repayment - - - - - 3,116 5,785 6,776 4,814 4,230
Total debt applicable to limitation 36,898 37,039 36,285 59,271 58,698 55,645 28,681 26,973 28,157 27,905
Legal Debt Margin:
Bonded debt limit (1% AV) 8,112,521 8,488,709 9,198,802 9,750,279 10,737,033 11,597,023 12,535,948 13,526,787 14,789,389 15,888,448
Debt applicable to limitation 36,898 37,039 36,285 59,271 58,698 55,645 28,681 26,973 28,157 27,905
Legal debt margin 8,075,623$ 8,451,670$ 9,162,517$ 9,691,008$ 10,678,335$ 11,541,378$ 12,507,267$ 13,499,814$ 14,761,232$ 15,860,543$
Under California Government Code Section 61126 (b) the Midpeninsula Regional Open Space District shall not incur bonded
indebtedness that exceeds 15% of the total assessed property value.
Midpeninsula Regional Open Space District
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Page 103
Fiscal Year Population
1
Personal Income 2
(in millions)
Per Capita
Personal Income 2
Median
Age 3
School
Enrollment 4
County Unemployment
Rate 5
2012 1,834,926 122,259 66,535 36.6 270,109 9.0%
2013 1,863,975 130,624 70,151 36.7 273,701 7.6%
2014 1,887,079 141,874 74,883 37.0 276,175 6.1%
2015 1,911,670 158,729 82,756 37.2 276,689 4.6%
2016 1,928,438 170,673 88,920 37.0 274,948 4.0%
2017 1,937,008 190,002 98,032 37.1 273,264 3.5%
2018 1,943,579 209,020 107,877 37.2 271,400 2.9%
2019 1,944,733 223,625 115,997 37.4 267,224 2.6%
2020 1,945,166 *** 263,449 10.7%
2021 1,934,171 *** 253,625 5.2%
Calendar Year Population
1
Personal Income 2
(in millions)
Per Capita
Personal Income 2
Median
Age 3
School
Enrollment 4
County Unemployment
Rate 5
2012 737,002 64,765 87,523 39.6 93,674 7.0%
2013 747,550 65,656 87,501 39.3 93,931 5.7%
2014 754,234 71,027 93,802 39.4 94,567 4.2%
2015 761,621 78,525 102,639 39.8 95,187 3.3%
2016 767,099 82,681 107,670 39.5 95,502 3.3%
2017 769,401 90,766 118,047 39.9 95,620 2.9%
2018 770,927 98,568 128,230 39.9 95,103 2.5%
2019 771,160 102,803 134,107 39.9 94,234 2.2%
2020 771,061 *** 93,554 10.8%
2021 765,245 *** 90,315 5.0%
* Information not available
Data Sources
1 State of California Department of Finance - http://www.dof.ca.gov/Forecasting/Demographics/Estimates/e-4/2010-20/
2 U.S. Department of Commerce Bureau of Economic Analysis
3 U.S Census Bureau, American Community Survey
4 State of California Department of Education
5 State of California Employment Development Department, Labor Market Division
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Demographic and Economic Statistics
Last Ten Fiscal Years
County of Santa Clara
County of San Mateo
Page 104
Employer
Number of
Employees 1 Rank
Percentage of
Total
Employment
Number of
Employees 2 Rank
Percentage of
Total
Employment
Apple Computer, Inc.25,000 1 2.60%12,000 3 1.43%
Google LLC 25,000 2 2.60%7,000 8 *
County of Santa Clara 20,638 3 2.15%15,219 2 1.82%
Stanford University 15,314 4 1.59%10,223 4 1.22%
Stanford Health Care 14,574 5 1.52%5,813 9 1.01%
Tesla Motors Inc. 13,000 6 1.35%**
Cisco Systems Inc.12,740 7 1.32%17,419 1 2.08%
Kaiser Permanente Northern California 12,442 8 1.29%8,435 5 1.01%
City of San Jose 7,641 9 0.79%5,400 10 0.65%
Intel Corporation 7,143 10 0.74%7,001 7 0.84%
Lockheed Martin Space Systems Co.**7,383 6 0.88%
Total 153,492 15.95%95,893 10.94%
Employer
Number of
Employees Rank
Percentage of
Total
Employment
Number of
Employees Rank
Percentage of
Total
Employment
Facebook, Inc.17,000 1 4.14%
Genentech Inc. 12,000 2 2.93%8,800 2 2.37%
United Airlines 7,894 3 1.92%9,000 1 2.43%
Oracle Corp.7,656 4 1.87%7,000 3 1.89%
County of San Mateo 5,683 5 1.39%5,836 4 1.57%
Gilead Sciences, Inc. 4,190 6 1.02%2,147 10 0.58%
YouTube 2,384 7 0.58%
Sony Interactive Entertainment 1,855 8 0.45%
Robert Half International, Inc.1,642 9 0.40%
Alaska Airlines 1,591 10 0.39%
Kaiser Permanente 3,927 5 1.06%
Visa, Inc.3,708 6 1.00%
Dignity Health 2,832 7 0.76%
Mills-Peninsula Health Services 2,500 8 0.67%
Safeway, Inc.2,250 9 0.61%
Total 61,895 15.09%48,000 12.94%
* Information not available
Source:
1 Silicon Valley Business Journal, July 9-15, 2021
2 County of Santa Clara Finance Department. FY2011-12 CAFR
3 San Francisco Business Times - 2021 Book of Lists and California Employment Development Department
4 Latest information available for principal employers in the County of San Mateo.
2021 2012
County of San Mateo 3
County of Santa Clara
Midpeninsula Regional Open Space District
Principal Employers
Most Current Year and Nine Years Ago
2021 2012
Page 105
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
Office of the General Manager 4.00 4.00 4.00 5.00 6.00 8.00 8.00 8.00 8.00 8.00
Real Property 5.00 5.00 5.00 6.00 4.00 4.00 5.00 5.00 5.00 5.00
Plannning 14.00 14.00 14.00 14.00 13.00 10.50 10.50 10.50 10.50 10.50
Engineering & Construction N/A N/A N/A N/A N/A 5.50 7.50 7.50 7.50 7.50
Public Affairs 8.00 9.00 9.00 11.00 12.00 8.00 8.00 8.00 8.00 7.00
Admininstration
Reception 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Finance 3.25 3.25 4.75 4.75 5.25 9.25 9.25 10.25 11.25 11.25
Human Resources 2.50 3.50 3.50 5.50 7.00 7.00 7.00 7.00 7.00 7.00
Information Technology 1 1.00 2.00 2.50 2.50 5.50 7.50 7.50 8.50 8.50 8.50
Operations
Administration 6.00 6.00 6.00 6.00 6.00 N/A N/A N/A N/A N/A
Patrol 28.00 28.00 28.00 31.00 32.00 N/A N/A N/A N/A N/A
Land/Facilities Maintenance 26.00 26.00 26.00 28.30 30.30 N/A N/A N/A N/A N/A
Resource Management 2 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Land & Facilities N/A N/A N/A N/A N/A 49.30 53.30 56.30 57.30 57.30
Visitor Services N/A N/A N/A N/A N/A 41.90 41.90 41.90 43.40 43.40
General Counsel 2.50 2.50 2.50 2.50 2.50 2.50 2.50 3.50 3.50 3.50
Natural Resources 2 8.00 8.00 8.00 9.00 10.00 11.00 12.00 12.00 12.00 12.00
Total 109.25 112.25 114.25 126.55 134.55 165.45 173.45 179.45 182.95 181.95
Source: Midpeninsula Regional Open Space District
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
1 In 2015, the GIS function was integrated into Information Technology from the Planning Department
2 In 2012, the Resource Management function under the Operations Department became the Natural Resources Department
During 2015, the District underwent a complete reorganization which become effective during FY 2016-17. As part of the
reorganization, the Planning Department was split with a new Engineering & Construction Department, a portion of Real
Property and Operations became the new Land & Facilities Department, and part of Public Affairs and Operations/Patrol
became the new Visitor Services Department.
Midpeninsula Regional Open Space District
Full-time Equivalent District Government Employees by Function
Last Ten Fiscal Years
Page 106
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
Land:
Number of preserves 26 26 26 26 26 26 26 26 26 26
Acreage:
Santa Clara County 32,990.49 33,006.79 33,158.80 33,259.21 33,366.71 33,449.99 33,628.15 33,631.06 33,631.06 33,943.56
San Mateo County 27,625.36 28,668.49 28,977.86 29,063.13 29,452.58 29,643.96 29,664.41 29,854.41 30,636.85 31,010.37
Santa Cruz County 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18
less: easements and life
estates held by other parties (1,825.88) (1,825.88) (1,825.88) (1,825.88) (1,825.88) (1,825.88) (1,802.88) (1,802.88) 782.44 (1,802.88)
Total 60,794.15 61,853.58 62,314.96 62,500.64 62,997.59 63,272.25 63,493.86 63,686.77 67,054.53 65,155.23
Facilities:
Administrative office 1111111111
Field/patrol offices 2222222334
Visitor Center 2222222221
Vehicles & Equipment:
Patrol vehicles 35 37 39 41 38 37 42 36 34 36
Service vehicles 333581013101113
Maintenance vehicles 6 8 9 13 16 19 25 29 31 31
Administrative vehicles n/a n/a n/a n/a n/a n/a n/a 13 13 15
Motorcycles/ATVs/Electric bicycles 13 13 13 13 13 13 13 27 27 21
Bulldozers/excavators/tractors 17 17 20 21 21 23 23 20 23 23
Dump trucks 44445554611
Water Truck 1222222222
Trailers n/a n/a n/a n/a n/a n/a n/a 25 27 30
Chippers/mowers 2224455553
Source: Midpenninsula Regional Open Space District
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Beginning with FY2017-18 the District is using a new system for classifying and tracking vehicles and equipment.
Midpeninsula Regional Open Space District
Capital Asset Statistics by Function
Last Ten Fiscal Years
Page 107
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function
General Manager
Board meetings 45 36 35 33 31 31 44 32 28 36
Resolutions adopted 56 20 39 61 61 40 46 47 43 45
Real Property
Acres preserved
Santa Clara County 492.99 16.30 152.01 100.41 107.50 83.28 178.18 2.11 - 312.50
San Mateo County 921.35 1,043.14 309.37 393.26 81.45 191.38 20.46 190.00 782.44 373.52
Public Affairs
Stewardship volunteer hours 11,843 11,232 13,579 14,354 15,839 17,440 16,088 15,910 10,296 7,778
Interpretation/education docent hours 4,669 5,559 4,718 5,828 4,462 4,697 4,320 4,438 975 20
Website visits 434,402 349,398 359,432 418,748 429,891 487,215 589,280 524,387 782,003 788,683
Bicycle Accident 36 37 30 20 26 19 37 13 30 33
Equestrian Accident 1 2 - 1 2 - - 1 3 4
Hiking/Running Accident 16 16 22 20 14 37 40 11 25 35
Other first aid 25 24 15 25 26 23 31 13 29 31
Search & rescue 10 8 5 8 3 4 2 2 4 2
Vehicle Accident 16 15 14 19 14 17 50 15 47 41
Fire 7 8 16 9 10 9 13 4 7 10
HazMat - - 1 1 6 1 3 1 1 1
Citation/Juvenile Contact Report 526 737 617 825 767 678 592 405 387 438
Parking Citation 527 621 584 700 645 836 870 375 1,027 1,144
Arrests 1 2 1 4 3 2 - 2 2 1
Day Permits 1,235 1,237 1,521 2,154 2,541 2,530 2,676 2,417 1,350 1,388
Multi-day permits 225 253 306 306 321 366 419 361 313 330
Camping permits 341 336 393 476 573 613 570 571 441 855
Source: Midpenninsula Regional Open Space District
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Operating Indicators by Function
Last Ten Fiscal Years
Page 108
Other Independent Auditor’s Reports
Page 109
15105 Concord Circle, Ste. 130, Morgan Hill, CA
Tel: 408-217-8749 • E-Fax: 408-872-4159 info@cnallp.com • www.cnallp.com
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
of the Midpeninsula Regional Open Space District
Los Altos, California
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities and each major fund of Midpeninsula Regional Open Space District (the
District) as of and for the year ended June 30, 2020, and the related notes to the financial statements,
which collectively comprise the District’s basic financial statements, and have issued our report
thereon dated November 22, 2021.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the District’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal control
over financial reporting that might be material weaknesses or significant deficiencies. Given these
limitations, during our audit we did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses. However, material weaknesses may exist that
have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
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15105 Concord Circle, Ste. 130, Morgan Hill, CA
Tel: 408-217-8749 • E-Fax: 408-872-4159 info@cnallp.com • www.cnallp.com
material effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
November 22, 2021
San Jose, California
Page 111
Russian Ridge Open Space Preserve by John Harvey
Cover Photos
Top photo: Bear Creek Redwoods Open Space Preserve by Heather Diaz
Second row, left to right
Rancho San Antonio Open Space Preserve by Elizabeth Yicheng-Shen
Sierra Azul Open Space Preserve by Dawn Stephenson
Fremont Older Open Space Preserve by Michelle Yau
Midpeninsula Regional Open Space District
330 Distel Circle
Los Altos, California 94022-1404
650-691-1200
info@openspace.org
openspace.org