ACCOUNTANTS’ COMPILATION REPORT To The Board of Directors Salinas City Center Improvement Association Salinas, California Management is responsible for the accompanying statement of revenues and expenses – actual vs. budget – fiscal year 2018-2019 – cash basis of Salinas City Center Improvement Association (a nonprofit organization) for the seven months ended June 30, 2019, in accordance with the cash basis of accounting, and for determining that the cash basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the statement of revenues and expenses – actual vs. budget – fiscal year 2018-2019 – cash basis nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on the statement of revenues and expenses – actual vs. budget – fiscal year 2018-2019 – cash basis. The financial statement is prepared in accordance with the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The supplementary budget information contained in the statement of revenues and expenses – actual vs. budget – fiscal year 2018-2019 – cash basis is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management. The supplementary budget information was subject to our compilation engagement. We have not audited or reviewed the supplementary budget information and do not express an opinion, a conclusion, nor provide any assurance on such information. Management has elected to omit substantially all the disclosures ordinarily included in financial statements prepared in accordance with the cash basis of accounting. If the omitted disclosures were included in the financial statement, they might influence the user's conclusions about the Company's revenues and expenses. Accordingly, the financial statement is not designed for those who are not informed about such matters. We are not independent with respect to Salinas City Center Improvement Association.

Steinbruner Hill CPAs Carmel, California July 11, 2019

Salinas City Center Improvement AssociationStatement of Revenues and Expenses - Actual vs. Budget - Fiscal Year 2018-2019 - Cash Basis

For the Seven Months Ended June 30, 2019

Actual Budget Remaining %

Remaining Actual Budget Remaining %

Remaining Actual Budget Remaining %

Remaining

Income Assessments $ 155,080.39 $ 270,000.00 $114,919.61 $ 56,862.81 $ 99,000.00 $42,137.19 $ 36,185.42 $63,000.00 $26,814.58 Plus: FY 2017-18 Carry Over 62.07 62.07 - 84,833.82 84,833.82 - 18,458.82 18,458.82 - 0%

Total Income $ 155,142.46 $ 270,062.07 $114,919.61 $ 141,696.63 $183,833.82 $42,137.19 $ 54,644.24 $81,458.82 $26,814.58

Expenses Bank Service Charges - - - - 70.65 400.00 329.35 82% Formation Costs Payback - - - - - Insurance - - - - 1,631.00 1,700.00 69.00 4% Professional Services - - Accounting - - - - 6,270.00 10,000.00 3,730.00 37% Legal - - - - 2,000.00 2,000.00 100% Total Professional Services - - - - - - 6,270.00 12,000.00 5,730.00 48% Office - - Rent/CAM/Utilities - - - - 2,467.78 6,200.00 3,732.22 60% Office Annual Cleaning - - - - 500.00 500.00 - 0% Office Furnishings/Paint - - - 1,500.00 1,500.00 100% Computer / Internet - - - - 1,200.00 1,200.00 100% Total Office - - - - - - 2,967.78 9,400.00 6,432.22 68% Staff - - - - - Contract Admin 1,353.63 2,550.00 1,196.37 47% 1,353.63 2,550.00 1,196.37 47% 5,255.24 9,900.00 4,644.76 47% Government Affairs 8,750.00 15,000.00 6,250.00 42% 8,750.00 15,000.00 6,250.00 42% 5,833.31 12,500.00 6,666.69 53% Total Staff 10,103.63 17,550.00 7,446.37 42% 10,103.63 17,550.00 7,446.37 42% 11,088.55 22,400.00 11,311.45 50% SOBO - - - Sidewalk Ops (Maintenance) 65,559.30 113,400.00 47,840.70 42% - - Beautification/Order(Security) 86,876.00 135,000.00 48,124.00 36% - - Total SOBO 152,435.30 248,400.00 95,964.70 39% - - - - - - DISI - - - District Identity - 30,305.82 87,000.00 56,694.18 65% - Streetscape Improvements - 4,236.35 68,000.00 63,763.65 94% - Total DISI - - - 34,542.17 155,000.00 120,457.83 78% - - - Extra Budget Expenses

Taxes - - 85.00 (85.00)Total Expenses 162,538.93 265,950.00 103,411.07 39% 44,645.80 172,550.00 127,904.20 74% 22,112.98 45,900.00 23,787.02 52%

Net Income (7,396.47) 4,112.07 97,050.83 11,283.82 32,531.26 35,558.82

Balance as of 6/30/19 $ (7,396.47) $ 97,050.83 $ 32,531.26

SOBO DISI Administration

(See accompanying accountants' report)1 of 2

Salinas City Center Improvement AssociationStatement of Revenues and Expenses - Actual vs. Budget - Fiscal Year 2018-2019 - Cash Basis

For the Seven Months Ended June 30, 2019

Income Assessments Plus: FY 2017-18 Carry Over

Total Income

Expenses Bank Service Charges Formation Costs Payback Insurance Professional Services Accounting Legal Total Professional Services Office Rent/CAM/Utilities Office Annual Cleaning Office Furnishings/Paint Computer / Internet Total Office Staff Contract Admin Government Affairs Total Staff SOBO Sidewalk Ops (Maintenance) Beautification/Order(Security) Total SOBO DISI District Identity Streetscape Improvements Total DISI Extra Budget Expenses

TaxesTotal Expenses

Net Income

Balance as of 6/30/19

Actual Budget Remaining %

Remaining Actual Budget Remaining % Remaining

$ 10,338.70 $ 18,000.00 $ 7,661.30 $ 258,467.32 $ 450,000.00 $ 191,532.68 - 103,354.71 103,354.71

$ 10,338.70 $ 18,000.00 $ 7,661.30 $ 361,822.03 $ 553,354.71 $ 191,532.68

- - 70.65 400.00 329.35 82% 5,000.00 5,000.00 100% - 5,000.00 5,000.00 100%

- 1,631.00 1,700.00 69.00 4% - - - - - 6,270.00 10,000.00 3,730.00 37% - - 2,000.00 2,000.00 100%

- - - 6,270.00 12,000.00 5,730.00 48% - - - - - 2,467.78 6,200.00 3,732.22 60% - 500.00 500.00 - 0% - - 1,500.00 1,500.00 100% - - 1,200.00 1,200.00 100%

- - - 2,967.78 9,400.00 6,432.22 68% - - - - - 7,962.50 15,000.00 7,037.50 47% - 23,333.31 42,500.00 19,166.69 45%

- - - 31,295.81 57,500.00 26,204.19 46% - - - - - 65,559.30 113,400.00 47,840.70 42% - 86,876.00 135,000.00 48,124.00 36%

- - - 152,435.30 248,400.00 95,964.70 39% - - - - - 30,305.82 87,000.00 56,694.18 65% - 4,236.35 68,000.00 63,763.65 94%

- - - 34,542.17 155,000.00 120,457.83 78%

- 85.00 - (85.00) - 5,000.00 5,000.00 100% 229,297.71 489,400.00 260,102.29 53%

10,338.70 13,000.00 132,524.32 63,954.71 $ 10,338.70 $ 132,524.32

Contingency/Reserves TOTAL

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