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Home My WebLink About4.08 Comprehensive Annual Financial Report CITY CLERK File # D~[][Q].[3]~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 21, 2006 SUBJECT Annual Audit Report for Fiscal Year 2004-2005 Report Prepared bv' Paul S. Rankin. Administrative Services Director and Fred Marsh, Finan(:e Manager ATTACHMENTS: 1 Comprehensive Annual Financial Report of June 30, 2005 2. Recommendations to Management for Year Ended June 30, 2005 RECOMMENDATION /~ 1 ~ \ 2. FINANCIAL STATEMENT Receive the Reports Confirm the Reservations of Fund Balances for Fiscal Year 2004-2005 See Staff Report. DESCRIPTION The City of Dublin has compiled and published its Comprehensive Annual Financial Report for the Fiscal Year ending June 30, 2005 This report, which is included as Attachment One, includes audited financial statements reviewed by Caporicel and Larson, CPA's (C&L). This firm is the independent auditor scleeted by the City Council and this is the second year that C&L has conducted this audit for the City The financial section of the report includes an unqualified opinion issued by C&L. The Auditors also met with the CIty Council Ad Hoc Audit Commillee (Mayor Lockhart and Couneilmember Hildenbrand) on February 2, 2006 to review the results of the audit. Overall, the Auditors found no matters involving the City's internal controls over its financial reporting and operations that were considered to be a material weakness requiring disclosure in a managementleller Management Letter As part of the Audit Review the independent auditors do present recommendations for consideration by the City They noted in their review that the prior year recommendation on disaster recovery had been addressed. For Fiscal Year 2004/2005 they had a new recommendation related to preparing for the implementation of GASH Statements No. 45 'Ibis is a reqnired change for government entities with regard to diselosure of liabilities related to postemployment retiree health benefits. The actual implementation for Dublin will be June 30, 2009 Prudent financial planning w(Juld result III a need to start the process in advance of the implementation date which is why the Auditors wanted to make certain it was identified. COpy TO: Page I on ITEM NO. '-to ~ G:\Audit\FY 2004.05\cat:r\agenda statement tor final audit report. doc 0J The City of Dublin is actually ahead of many agencies on this Issue. In 2005 the City had an actuarial update study prepared to the size of the liability and methods of funding these obhgahons. The CIty has $4.3 million recorded in an internal service fund and annual contribuhons are being made in 2005/2006 based upon the study recommendatlOns. The information Irom the actuarial study will be useful in developing an implementation plan for GASB 45 with key milestones for decISIOns, III order to meet the required lluplementatlOn for the fiscal year ending June 30, 2009 Financial Statements The City Financial Statements are included in the Comprehensive Annual FinanCIal Report (CAFR). The scope included in this report exceeds the minimum amount of lllformatlOn required. The format is in comphance wIth the requirements for a Certificate of AchIevement from the Government Finance Officers Association. The City's audIt report for Fiscal Year 2004-2005 has been prepared in compliance with thc principles of GASB Statement 34 The transmittal letter and the Managcment Discussion and Analysis provide a good overview of the financial activities of the City These documents focus on slgmficant trends, as well as major changes assocIated With the City's major funds (i.e. General Fund and hnpaet Fcc funds). The General Fund represents the largest portion 0 f thc City's revenues and expenditures; therefore, is of primary importance in evaluating the City's fiscal condition. The statistical section in the CAFR includes graphs of relevant historical data. ThIS vIsual presentation can be helpful in iden\Jfying trends and/or the timing of key changes which havc impacted the City's financial condition. DESIGNATIONS OF FUND BALANCES As part of the closing entries recorded on the [inacial statements is the designation of funds for specified uscs. A complete listing of both fund reserves and designations is shown on page 52 ofthe report. Some ofthe key designations are discussed below A. Designation For Authorized Expenditures This designation is established to allow the City Council to carryover any unused funds as of June 30, 2005, to fund future year opera\Jons and projects for each of those funds with a positivc fund balance. The City Council is requested to confirm the designation for all funds with a positive fund balance as of June 30, 2005, as part of accepting this report. B. For Recycling Programs - Measure D Recycling Fund During the last nine fiscal years the City has received Mitigation and Recycled Product Grant Funds [rom County Waste Management Authority (WMA), which are to be utilized solely for designated Recycling Programs. All of these funds have bccn accounted for in the Measure D Recychng Fund. As of June 30, 2004, the City had a balance of $487,435, and added an $74,265 llllllltJgation funds received from WMA, leavlllg a balance available of $561,700 as of June 30, 2005 These funds havc been shown as a separate restricted fund balance, in order to segregate them from the remainder of the Measure D Funds, since they will be a source of funding for enhanced recycling progranlS. The City Council is requested to confirm the designatIOn as part of accepting this report. This reporting is also in conformance with requirements of the Waste Management Anthority for the accounting of the grants. Page 2 of3 C. Other General Fund Designations of Fund Balance The City Manager proposed, as part of his transmittal letter in the Prelimmary Budget and Financial Plan for Fiscal Year 2005-2006. estimated reserve amounts III the Fund Balance for the General Fund. Thosc eshmates were allocated for Capital Projects, Maintenance of the G-3 Box Culvert east of Tassajara Road, Economic Uncertainty, and CIP Carryovers. The City Council is requested to confirm these designations as part of accepting thc final audit report, as well as setting up an additional reserve of $255,836 for additional capItal proJects to be earned over to Fiscal Year 2005-2006. The chart below reflects the actual amounts available lor designation. General Fund Desienation Capital p'r~~~_... ..._ Box Culvert Maintenance ., EconomIc Uncertamty CIP Carry()y~rs_.w ..___ Total Dcsil!nation Amount $1,658,931 $280,000_____"________""_ $251,713 $764,439 $2 955 083 .."".._~".,"'.~,.t,. Additional Desienations $255,836 $255.836 Totals $1,658,931 $280,000 $~?__!,Z_!~_".. .__,_ $1,020,275 $3,210,919 CONCLUSION Staff recommends that the City Council receive and file the reports and confirm the designation of Fund Balances as presented in the annual audit rcport. Page 3 of 3 City of Dublin Dublin, California Comprehensive Annual Financial Report For the year ended June 30,2005 C&L Caporicci & Larson Certified Public Accountants ADOPTED 2005 CITY OF DUBLIN 10 YEAR STRATEGIC PLAN Mission The City of Dublin promotes and supports a high quality of life that ensures a safe and secure environment, fosters new opportunities and provides responsive fair treatment to our diverse community Vision Dublin is a vibrant city committed to its citizens, natural resources and cultural heritage. As Dublin grows, it will balance history with progress, to sustain an enlightened, economically balanced and diverse community. Dublin, with its distinctive place in the region, highlights culture, diversity and civic stewardship to create a broad mosaic. This mosaic is enriched by the integrating of cultures, races and economic diversity into villages and neighborhoods - forming a common network that welcomes both residents and businesses alike; supporting the efforts and achievements of all. City of Dublin Comprehensive Annual Financial Report For the year ended June 30,2005 Table of Contents Page INTRODUCTORY SECTION Table of Contents................................................. ......... ................... ........... ............. ............ .............. ......................... i Letter of Transmittal.............................. ..................... ............................ ........................... ................... ..................... v Government Finance Officers Association (GFOA) Award............................................................................... ix Principal Officers.............. ........ ........................................................ ................ ......................................................... x Organizational Chart............................................. ........ .................................... ................. ............. ........... .............. xi FINANCIAL SECTION Independent Auditors' Report................................................................................................................................l Management's Discussion and Analysis.... ..... ............................................................ .........................................3 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets...... ........................ .......................................................... ... .................................. .18 Statement of Activities and Changes in Net Assets................................................................................20 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet................................................. ... ...... .............. ................. ........... .................. ................ ....24 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets....................................................................27 Statement of Revenues, Expenditures and Changes in Fund Balances.........................................28 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets...................................................................30 Proprietary Fund Financial Statements: Statement of Net Assets.................................. ................ .................................... ........ ......................... .31 Statement of Revenues, Expenses and Changes in Net Assets ......................................................32 Statement of Cash Flows ........................................................ ..............................................................33 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Assets..................................................................................................... .34 Index to Notes to Basic Financial Statements.................................................................................................35 Notes to Basic Financial Statements ................................................................................................................38 City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2005 Table of Contents, Continued Page FINANCIAL SECTION, Continued Basic financial Statements, Continued: Required Supplementary Information: Budgets and Budgetary Accounting .........................................................................................................60 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual.................................................................................................................................61 Schedule of Funding Progress - Miscellaneous Plan of the California Public Employee Retirement System ................................................................................................................................63 Supplementary Information: General Fund: Schedule of Budget versus Actual Revenues by Sources.......................................................................68 Schedule of Budget versus Actual Department Expenditures..............................................................70 Major Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Traffic Impact Fees Capital Projects Fund.........................................................................................73 Park Dedication Capital Projects Fund ..............................................................................................74 Public Facilities Fees Capital Projects Fund ......................................................................................75 Fire Impact Fees Capital Projects Fund..............................................................................................76 Non-Major Governmental Funds: Combining Balance Sheet ............................. ..............................................................................................80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................86 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Criminal Activity Special Revenue Fund.............................................................................91 Vehicle Abatement Special Revenue Fund........................................................................................92 Supplemental Law Enforcement Special Revenue Fund ................................................................93 Traffic Safety Special Revenue Fund ..................................................................................................94 State Gas Tax Special Revenue Fund..................................................................................................95 Office of Traffic Safety Special Revenue Fund..................................................................................96 CDBG Special Revenue Fund ........................... ................. ........................................................ ..........97 FEMA Special Revenue Fund ........................... ................. ........................................................ ..........98 State Park Bond Act Special Revenue Fund ......................................................................................99 Measure B Sales Tax Transportation Special Revenue Fund ........................................................100 State Transportation Improvement Special Revenue Fund ..........................................................101 Storm Water Runoff Special Revenue Fund....................................................................................102 Measure D Recycling Special Revenue Fund..................................................................................103 Garbage Service Special Revenue Fund...........................................................................................104 Measure B Bike and Pedestrian Special Revenue Fund.................................................................l05 EMS Special Revenue Fund ...............................................................................................................106 Traffic Congestion Relief Special Revenue Fund............................................................................l07 ii City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2005 Table of Contents, Continued Page FINANCIAL SECTION, Continued Supplementary Information, Continued Non-Major Governmental Funds, Continued: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, Continued: Housing and Noise Mitigation Special Revenue Fund .................................................................108 Street Lighting Special Revenue Fund .............................................................................................109 Stagecoach Landscape Special Revenue Fund ................................................................................110 Dougherty Landscape and Lighting Special Revenue Fund ........................................................111 Santa Rita Assessment District 97-1 Special Revenue Fund .........................................................112 Dublin Street Lighting Assessment Special Revenue Fund..........................................................113 Internal Service Funds: Combining Statement of Net Assets .......................................................................................................116 Combining Statement of Revenues, Expenses and Changes in Net Assets......................................117 Combining Statement of Cash Flows......................................................................................................118 Agency Fund: Statement of Changes in Net Assets .......................................................................................................120 STATISTICAL SECTION Assessed Value of Taxable Property .............................................................................................................121 Schedule of 1993 Certificates of Participation Coverage ............................................................................122 Computation of Direct and Overlapping Debt ............................................................................................123 Computation of Legal Debt Margin ..............................................................................................................124 Demographic Statistics................................................. ...... ................... ........................................... ........... ....125 Government Expenditures By Function All Governmental Fund Types ................................................126 Principal Property Taxpayers (Based on Secure 2004/2005 Tax Roll)......................................................127 Property Tax Rates - All Direct and Overlapping Governments..............................................................128 Property Tax Levies and Collections.............................................................................................................129 Property Value, Construction and Bank Deposits.......................................................................................130 General Governmental Revenues By Sources - All Governmental Fund Types....................................131 Top 25 Sales Tax Producers.............................................................................................................................132 Miscellaneous Statistics.................................. ................ .................. ...... ........... ................ ............................ ..133 iii This page intentionally left blank. iv CITY OF DUBLIN 100 Civic Plaza, Dublin, California 94568 Website: http://www.ci.dublin.ca.us January 27, 2006 Honorable Mayor and Members of the City Council Presented with this transmittal is the City of Dublin Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2005. The information in this Comprehensive Annual Financial Report is prepared in accordance with Generally Accepted Accounting Principles (GAAP) as established by the Governmental Accounting Standards Board (GASB) and includes the report prepared by the City's independent certified public accountants. The responsibility for the accuracy and fairness of this report rests with the City. This report has been formatted to comply with the financial reporting model developed by Governmental Accounting Standards Board (GASB) Statement 34 and includes the following: · Government-wide fmancial statements designed to provide readers with a broad overview of the City in a manner similar to a private sector business, including a statement of net assets and statement of activities. It is important to note the following regarding these statements: o The Statement of Net Assets and Statement of Activities represent a combination of all of the City's funds including the City's General Fund and other restricted Special Revenue and Capital Projects funds. Information on individual funds can be found in the combining statements contained in the CAFR. o The amount reported as "unrestricted" in the net asset section on the statement of net assets has been designated for several General Fund projects previously authorized by Council, as discussed in additional detail in the notes to the financial statements, in addition to funds previously designated for building and equipment replacement (accounted for in the City's Internal Service Funds). o The amount reported as "invested in capital assets" in the net asset section on the statement of net assets represents the portion of fixed assets to be depreciated over the remaining life of the assets and is not available for funding of additional City projects. · To assist with an individual's review of the City's financial statements, a narrative section called the Management's Discussion and Analysis (MDA) has been included. The MDA reports on the financial highlights of the City and provides additional analysis on the variances and trends reported as part of the financial statements. In addition, the MDA discloses significant items affecting the financial condition ofthe City. Area Code (925) . City Manager 833-6650 . City Council 833-6650 . Personnel 833-6605 . Economic Development 833-6650 Finance 833-6640 . Public Works/Engineering 833-6630 . Parks & Community Services 833-6645 . Police 833-6670 Planning/Code Enforcement 833-6610 . Building Inspection 833-6620 . Fire Prevention Bureau 833-6606 Printed on Recycled Paper ECONOMIC CONDITION AND OUTLOOK The City of Dublin is located at the intersection of Interstates 580 and 680 approximately 35 miles east of San Francisco. The City has a wide range of housing types available to meet the demands of various employers throughout the region. The City has a large retail base which serves local residents as well as those in surrounding communities. The largest employers include: public agencies such as the County of Alameda and the Dublin Unified School District; corporate offices such as Franklin Resources, CalPine, Micro Dental Laboratories, SBC, Supergen and Sybase; retailers such as Best Buy, Circuit City, Good Guys, Home Expo Design, Mervyns, Regal IMAX 21 Screen Theater and Target; and auto dealers such as Crown Chevrolet, Dublin Auto Center, Dublin Honda, Dublin Toyota, Ford of Dublin, Stoneridge Motors, and Tri Valley Pontiac/BuicklGMC. Retail Sales are an obvious indicator of the general economic climate. The General Fund Sales Tax in Fiscal Year 2004- 2005 increased by 1.5% over the amount attributable to the prior year ($14.2 million in Fiscal Year 2004-2005 vs. $13.9 million in Fiscal Year 2003-2004). A significant amount of the City's retail sales are attributable to the sales of new and used automobiles, which increased over the amount reported for the prior year. The City also experienced increased sales in other retail sectors, including the City's Hacienda Crossings Shopping Center. The future economic outlook for the City is geared towards enhancing the City's existing economic base, while seeking opportunities for expansion and adding diversity to the current retail base. There is the ability to accommodate significant new development projects in the City's Eastern Dublin Specific Plan Area, as evidenced by several development agreements entered into with the Alameda County Surplus Property Authority and the developers for Dublin Ranch during the past few fiscal years. The economic outlook for the City of Dublin for Fiscal Year 2005-2006 continues to be positive with additional revenues expected primarily from sales taxes, property taxes resulting from additional residential growth and higher property values, and interest revenues due to a recent rise in the rate of return earned on the City's investments. The City anticipates that there will be sufficient reserves to cover any unanticipated revenue shortfalls. MAJOR INITIATIVES The City of Dublin is an active and vibrant community, with a-municipal government that is proactive and prepared to respond to changes which are occurring. Each year the City Council adopts Goals and Objectives for the upcoming year and evaluates the progress achieved on the goals previously established. The City's Goals and Objectives program is the process by which the City Council formulates major initiatives for the City. In Fiscal Year 2004-2005, the City began or continued work on several capital projects, including the following: Ex eeted Com letion Date b Fiscal Year Com leted in 2004-2005 Com leted in 2004-2005 Com leted in 2004-2005 Com leted in 2004-2005 Com leted in 2004-2005 Com leted in 2004-2005 2007-2008 2005-2006 2005-2006 2005-2006 2005-2006 2006-2007 The market for new housing of all types continued to be strong during Fiscal Year 2004-2005, with permits issued for 1,163 new residential units, an increase of 49% from the previous Fiscal Year. The valuation of these new residential units was estimated to be $283 million, adding to the City's taxable assessed value for Fiscal Year 2005-2006. Non residential activity also increased during Fiscal Year 2004-2005, adding a projected $56 million to the City's taxable assessed value for Fiscal Year 2005-2006. ACCOUNTING SYSTEM AND BUDGETARY CONTROL Note 1 in the Basic Financial Statements provides a detailed explanation of the significant accounting policies. In developing and evaluating the City's accounting system, consideration is given to the adequacy of controls. Internal accounting controls are designed to provide reasonable assurance regarding: safeguarding of assets against loss, accuracy and reliability of accounting data, and adherence to prescribed policies. The concept of reasonable assurance recognizes that the cost of a control should not exceed benefits likely to be derived and that the evaluation of costs and benefits require estimates and judgments by management. The City Manager develops and presents a budget for approval by the City Council on an annual basis. The budget includes appropriations for both operating programs and capital improvement projects. The budget is approved by budget activity based upon the identified funding sources. The adopted accounting procedures authorize the City Manager to make budget adjustments between line items which are within the same Department and/ or to authorize transfers from the Contingent Reserve. Expenditures may not exceed budgeted appropriations at the departmental level without City Council approval, except as provided for in the City Council resolution adopting the budget. DEBT ADMINISTRATION The City has no outstanding General Obligation debt. However, the City does administer funds for debt issued pursuant to the 1915 Improvement Act for the Dublin Boulevard Extension Assessment District. The total amount of assessment debt outstanding at June 30, 2005 is $1,331,000. This amount is repayable from property assessments levied on properties benefiting from the improvements, and the City has no legal, contingent or moral obligation for the repayment of this debt. Revenues collected were sufficient to finance all required debt service expenditures for the year ending June 30, 2005. There were no material delinquent assessment revenues at year end. RISK MANAGEMENT The City of Dublin is a member of ABAG PLAN Corporation. This is a public agency pool providing liability insurance coverage to many Bay Area cities. The coverage limit for Fiscal Year 2004-2005 was $10 million per occurrence for general liability claims, which does not cover damage resulting from an earthquake. The City of Dublin has selected a $50,000 deductible. The pool also provides property insurance coverage with a $5,000 deductible, except for vehicle losses, which carry a $10,000 deductible. The pool purchases the required employee bonds from a commercial surety company. In accordance with GASB 10, the City established a liability of $238,441 for claim deductibles. This includes a provision for losses which may be "incurred but not reported" (IBNR). The actual cost for liability claims paid by the City for Fiscal Year 2004-2005 was $105,788. CASH MANAGEMENT Cash temporarily idle during the year was invested in accordance with adopted investment policies. The City's yield on all of its investments as of June 30,2005 was 3.289%. As of June 30,2005, the City's portfolio of Federal Security investments had an average weighted maturity of 2.4 years. In addition, the City has sufficient investments in the State's Local Agency Investment Fund (LAIF) and money market accounts, which offer same day liquidity. The City has positioned its cash needs to allow it to hold all securities to maturity. On a quarterly basis the City Council is provided with a report on investment activity. The investment strategy emphasizes the safety of the portfolio and liquidity to match anticipated cash flow needs. The portion of the portfolio containing U.S. Notes and Agency Obligations does not include any repurchase agreements. vii INDEPENDENT AUDIT Each year the City of Dublin obtains an independent annual audit of the City's financial records. The information presented includes a review of operations and changes in financial position. This report includes the Auditor's unqualified opinion on the City's combined financial statements. AWARDS The Government Finance Officers' Association (GFOA) has recognized the City of Dublin for its Comprehensive Annual Financial Report covering the period ending June 30, 2004. A copy of the award from this entity is included in this report. This award represents the fifteenth consecutive year that the City's report was recognized by the GFOA. In order to be recognized, the City was required to produce an easily readable and efficiently organized report. The report must also meet the standard for generally accepted accounting principles and legal requirements. ACKNOWLEDGMENTS Among the responsibilities assigned to the Administrative Services Department are the functions associated with Finance. It is especially appropriate to recognize the efforts of Administrative Analyst Lisa Hisatomi, Finance Technicians Lynn Harrington, Katie Mooney and Diane Stanley and Office Assistants Wanda Oppenheim and Rebecca Roberts in preparing this report. The City is fortunate to have these dedicated staff members who devoted extensive time and energy in preparing such a comprehensive report. The City has had its financial reports recognized by GFOA for many years, which is a significant accomplishment, since this task is often undertaken only by larger organizations. S.taff also appreciates the professional effort expended by the independent auditors of Caporicci & Larson, Certified Public Accountants, in the preparation of the financial statements. The City Council is recognized for its continued support and encouragement. Staff intends for the report to be a source of pride and accomplishment; representing excellence in financial reporting and exemplifying the high priority given to the provision of quality services. Sincerely, Y--:i-~ ~ Fred W. Marsh Finance Manager viii Certificate of Achievement for Excellence in Financial Reporting Presented to City of Dublin, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended J nne 30, 2004 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual fmaneiaI reports (CAFRs) achieve the highest standards in government accounting and [mancial reporting. ~~~~ President ~~~ Executive Director ix CITY OF DUBLIN PRINCIPAL OFFICERS June 30, 2005 Mayor Janet Lockhart Vice Mayor George Zika Councilmember Claudia McCormick ADMINISTRATION PERSONNEL City Manager Assistant City Manager Administrative Services Director City Attorney City Clerk Chief of Police Public Works Director Community Development Director Parks & Community Services Director Fire Chief x Councilmember Kasie Hildenbrand Councilmember Tony Oravetz Richard Ambrose Joni Pattillo Carole Perry Elizabeth Silver Kay Keck Gary Thuman Melissa Morton Eddie Peabody Diane Lowart Bill McCammon CITY OF DUBLIN ORGANIZATIONAL CHART Residents of Dublin ~. City Council I T I I I Heritage & Parks & Community City Manager Planning City Cultural Arts Services Commission Attorney Commission Commission City Clerk Elections Economic DeveloPli1ent Assistant City Manager I I Central Services Youth Senior Insurance Advisory Center Disaster Preparedness Committee Advisory Waste Management Committee Community Cable TV Crossino Guards T I T I I I I ~-~. Police Services Community Parks & Administrative Public Works Fire Development Community Services Services Services Building Management Police Building & Safety Recreation Finance Traffic Signals Animal Control Planning Library Services Information Street Lighti ng Housing Cultural Activities Systemsl Street Maintenance Heritage Center Technology street Sweeping Dublin Cemetery street Tree Maintenance Parks & Facilities Mgmt. Street Landscaping Maint Child Care Park Maintenance .--.-- EnoineerinQ 6/2005 This page intentionally left blank. xii IC&L Caporicci & Larson Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California We have audited the accompanying financial statements of governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin, California (City), as of and for the year ended June 30, 2005, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in the United States 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 basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such basic financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2005, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with generally accepted accounting principles in the United States. As described in Note 1 and Note 4 to the basic financial statements, the City had elected in accordance with Governmental Accounting Standards Board Statement No. 34 to defer recording and reporting of its major infrastructure assets acquired prior to fiscal year 2001-2002. The City has reported these capital assets in this current fiscal year. As described in Note 1 to the basic financial statements, the City adopted Government Accounting Standards Board No. 40, Deposit and Investment Risk Disclosures, an amendment ofGASB Statement No.3 In accordance with Government Auditing Standards, we have also issued our report dated November 4, 2005, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. The accompanying Required Supplementary Information, such as management's discussion and analysis, budgetary comparison information and other information as listed in the table of contents are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation of the Required Supplementary Information. However, we did not audit the information and express no opinion on it. Toll Free Ph: (877) 862-2200 Toll Free Fax: (866) 436-0927 OakllUld 180 Grand Ave., Suite 1365 Oakland, California 94612 Orange County 3184-DAirway Avenue Costa Mesa, California 92626 Sacramento 777 Campus Commons Rd., Suite 200 Sacramento, California 95825 San Diego 4858 Mercury, Suite 106 San Diego, California 92111 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Our audit was conducted for the purpose of forming opmlOns on the financial statements that collectively comprise the City's basic financial statements. The accompanying supplementary information is presented for purpose of additional analysis and is not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and accordingly, we express no opinion on them. ~'u-t' r- 4:u~ Oakland, California November 4, 2005 2 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2005 As management of the City of Dublin (City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2005. Please read this overview in conjunction with the accompanying letter of transmittal and the accompanying basic financial statements. FINANCIAL HIGHLIGHTS . During Fiscal Year 2004-05, the City's net assets, representing the difference between total assets and total liabilities, increased by $31.5 million to $481.1 million from $449.6 million (as restated) in Fiscal Year 2003-04. The Fiscal Year 2003-2004 ending balance was restated due to an increase in the amount reported as Infrastructure, Land and Streets Right of Way due to the City restating the value of its infrastructure held prior to July 1, 2001 in accordance with GASB 34. In addition, there were higher than expected General Fund revenues, lower than expected General Fund expenditures and the receipt of impact fees due to new development occurring within the City to be used to repay a loan from the General Fund used to assist with the funding of one new fire station. The impact fees will also fund future improvements to the City's infrastructure, including its parks and streets. . Of the total net assets, $383.7 million represents its investments in capital assets, $45.3 million represents net assets restricted by outside agencies and state regulations for specific purposes and $52.2 million of umestricted net assets may be used to meet the government's ongoing obligations to its citizens and creditors. . As discussed in the notes to the financial statements, much of the $52.2 million of umestricted net assets includes the umeserved portion of General Fund balance which has either been designated for future equipment replacement and retiree health care costs or that has been designated by Council for use on several future projects and to cover economic uncertainties. This represents an increase of $1.3 million over Fiscal Year 2003-04. . Total revenues from all sources were $91.4 million and total expenditures for all City programs were $59.8 million. The net increase was due to the events discussed above. . For Fiscal Year 2004-05, the City had no long term debt outstanding at June 30, 2005. . As of June 30, 20OS, the City's governmental funds reported combined ending fund balances of $88.5 million, a increase of $8.3 million in comparison with the prior year. The increase in combined ending fund balances is primarily attributable to higher than expected General Fund revenues and lower than expected General Fund expenditures, and the receipt of impact fees due to new development occurring within the City. . The umeserved portion of fund balance in the City's General Fund balance increased to $43.5 million. As discussed in the notes to the financial statements, the entire amount has been designated by Council for use on several future projects and to cover economic uncertainties. . During Fiscal Year 2004-05, the General Fund revenues exceeded its expenditures by $1.2 million. . Actual Revenues in the General Fund were over its final budget by $2.7 million primarily due to larger than expected collections from property in lieu taxes, building permits and interest earnings. . Actual expenditures were under its final budget by $3.9 million largely due to capital projects being carried over to Fiscal Year 2005-06 and lower than expected use of contract personnel in the Planning and Building Divisions. 3 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2005 OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which are comprised of three components: . Government-wide financial statements - These include the Statement of Net Assets and Statement of Activities. These statements provide information about the activities of the City as a whole and about the overall financial condition of the City in a manner similar to a private-sector business. These statements are described in more detail in a subsequent section in this MDA and can be found on pages 17-22 of this report. . Fund financial statements - These statements provide additional information about the City's major funds, including how services were financed in the short term and fund balances available for financing future projects. These statements are described in more detail in a subsequent section of this MDA and can be found on pages 23-34 of this report. . Notes to the Financial Statements - The notes provide additional detail that is essential to a full understanding of the information provided in the government-wide and fund financial statements. The notes can be found on pages 37-58 of this report. A. Government-Wide Financial Statements These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All current year's revenues and expenses are accounted for regardless of when the cash is paid or received. These statements report the City's net assets and changes in them. Net assets, the difference between assets and liabilities, are one way to measure the City's financial position. Over time, increases or decreases in net assets are indicators of whether the financial condition of the City is improving or deteriorating. However, it is also important to consider other non-financial factors, such as changes in the City's property tax and sales tax bases or in the condition of the City's infrastructure (i.e., parks and streets), to accurately assess the overall health of the City. These statements present information about the City's activities, all of which are considered governmental in nature. These include services provided for police, fire, community development, streets and culture and leisure. These services are funded from monies received from property, sales, and other taxes, direct charges for services provided, grants, contributions from other agencies and impact fees collected from new development. B. Fund Financial Statements These statements provide more detailed information about the City's major funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. 4 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2005 Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains twenty-eight individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General fund and for all of the City's Capital Project Funds, as they either qualify or the City requested them to be classified as major funds due to their significance in the financing of new capital assets. Data from the other twenty three governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for each of its governmental funds. A budgetary comparison statement has been provided for each governmental fund to demonstrate compliance with this budget. Proprietary funds The City maintains one type of proprietary fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions and to build up reserves for future replacement of capital assets and funding of future retiree medical costs. The City uses internal service funds to account for its fleet of vehicles, computer systems, other furniture and equipment, retiree health employee costs and contributions, and improvements to City buildings. Because these services solely benefit the governmental function, they have been included within governmental activities in the government-wide financial statements. Proprietary fund financial statements provide the same type of information as the government-wide financial statements, only in more detail. All four internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Fiduciary Funds The City acts as a trustee, or fiduciary, in collecting assessments and remitting bond payments for one Assessment District. The City has no legal, contingent or moral obligation for the repayment of this debt and merely ensures that the assets received are used for their intended purposes. Therefore, these fiduciary activities are excluded from the City's fund financial statements because these assets cannot be used to finance operations. The activity for this fund, however, is provided for in a separate combining statement contained elsewhere in this report. 5 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30,2005 C. Notes to the Financial Statements The notes provide additional detail that is essential to a full understanding of the information provided in the government-wide and fund financial statements. The notes can be found on pages 37-58 of this report. D. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees. Required information can be found on pages 59-64 of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS The City's combined net assets for the Fiscal Year ended June 30, 2004 was $481.1 million. A significant portion of the City's net assets ($383.7 million or 80%) reflects its investment in capital assets (e.g., land, infrastructure, buildings, equipment). The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City's net assets ($45.3 million or 9%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($52.2 million or 11 %) may be used to meet the government's ongoing obligations to citizens and creditors. It should be noted, however, that the entire balance has previously been designated by the City Council for future projects, including replacement of buildings and equipment, as described in additional detail in the notes to the financials. Table 1 summarizes the City's net assets. TABLE 1 Item Governmental Activities June 30,2005 June 30, 2004 $111,308,015 $104,181,430 383,667,187 80,050,710 494,975,202 184,232,140 13,843,107 15,781,994 13.843,107 15,781,994 383,667,187 80,050,710 45,288,468 37,455,125 52,176,440 50,944,311 $481,132,095 $168,450,146 Current and other assets Capital assets Total assets Other liabilities Total Liabilities Invested in capital assets Restricted Unrestricted (See Note 7 to Financials for Council Designations) Total net assets 6 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2005 Governmental activities. The charts below summarize major expenditure program categories, program revenues used to fund specific expenditure programs, and general City revenues available for funding all City programs. TABLE 2 Expenses Program Revenues Net Cost of Activity Governmental Activities 2004-2005 2003-2004 2004-2005 2003-2004 2004-2005 2003-2004 General Government $ 3,081,581 $ 6,288,136 $ 5,198 $ 2,603 $ 3,076,383 $ 6,285,533 Public Safety 19,047,262 17,135,716 1,596,298 1,252,129 17,450,964 15,883,587 Community Development 7,210,558 6,113,171 6,969,366 6,135,027 241,192 (21,856) Highways and Streets 19,810,590 939,260 32,802,155 9,103,665 (12,991,565) (8,164,405) Health and Welfare 1,722,224 3,755,564 4,676,024 3,746,021 (2,953,800) 9,543 Culture and Leisure 8,954,495 1,603,494 10,489,011 7,487,144 (1,534,516) (5,883,650) Totals $ 59,826,710 $ 35,835,341 $ 56,538,052 $ 27,726,589 $ 3,288,658 $ 8,108,752 Net Cost of Activity 2004-2005 2003-2004 General Revenues: Property taxes $ 14,167,079 $ 11,422,308 Sales tax 14,152,987 13,940,263 Vehicle License Fee 413,075 1,682,152 Other taxes 3,181,939 2,865,225 Intergovernmental 155,523 146,841 Unrestricted interest earnings 2,704,647 799,008 Other 43,710 163,060 Total General Revenues 34,818,960 31,018,857 Increase in Net Assets 31,530,302 22,910,105 Net Assets - Beginning of Year 168,450,146 145,540,041 Prior Period Adjustment 281,151,647 Net Assets - End of Year $ 481,132,095 $ 168,450,146 7 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2005 Revenues by Source (In Millions) Total Revenues $91.4 Million Other Revenues . 3.2% $2.9 Sales Tax . 15.5% $14.2 Properly Taxes . 15.5% $14.2 Charges for Services . 15.1,.. $13.& Contributions/Grants -48.&", $42.7 Expenses by Program (In Millions) Total Expenses - $59.8 Million Community Deve lopme nt - 12.1% $7.2 General Government - 5.2% $3.1Culture Leisure 15.0% $9.0 Highways and Streets - 33.0% $19.8 Public Safety - 31.8% $19.0 8 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2005 Governmental activities increased the City's net assets by $31.5 million, thereby accounting for all of the total growth in the net assets of the City. Key elements of this increase are as follows: . The City collected $14.4 million in development impact and housing in lieu fees in its Governmental funds, which will be used to fund future streets and parks improvements, the completion of construction of two new fire stations and construction of new affordable housing. . During Fiscal Year 2004-2005, the City transferred $4.8 million worth of capital assets to its Equipment and Building Replacement Internal Service Funds. These had all previously been fully expensed in its General and Capital Project funds. This transfer was recognized as a contribution revenue in the Equipment and Building Replacement Internal Service Funds. . The City continued to see significant increases in General Fund property taxes collected resulting from the significant amount of commercial and retail growth that occurred during the last five fiscal years and large increases in housing prices. . Total General Fund sales taxes and property taxes increased from the prior year as the City continued to experience strong retail sales from its automotive dealers and at its retail shopping centers and continued to experience residential growth. FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As of June 30, 2005, the City's governmental funds reported combined ending fund balances of $88.2 million, an increase of $8.3 million over the prior year. Of the increase, $3.2 million occurred in the Housing and Noise Mitigation Fund, $2.7 million occurred in the City's Public Facility Fee Capital Projects Fund, $1.2 Million in the City's General Fund and $.9 million in the City's Traffic Impact Fee Fund. As discussed in the notes to the financial statements, the entire amount of the General Fund has been designated by Council for use on several future projects and to cover economic uncertainties. GENERAL FUND The General Fund is the chief operating fund of the City. At the end of Fiscal Year 2004-OS, unreserved fund balance of the General Fund was $43.5 million and total fund balance of the General Fund was $45.8 million. As discussed in Note 7 to the financial statements, the entire amount of unreserved fund balance has been designated by Council for use on several future projects and to cover economic uncertainties. During Fiscal Year 2004-05, the General Fund revenues exceeded its expenditures by $1.2 million. This includes $1.0 million in carryovers for various capital projects and other one time expenditures. The primary reasons for the variance were due to higher than expected property in lieu taxes, building permits and interest earnings, and lower than anticipated operating and CIP expenditures. 9 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2005 Significant changes in Revenues and Expenditures that affected this increase in General Fund balance are as follows: a. Revenue Highlights Property Taxes increased over the prior year due to new residential and commercial units constructed in Fiscal Year 2003-04 and included for the first time on the 2004-05 tax roll. In addition, there continued to be a general overall increase in property values in the City, primarily due to a strong housing market. The City's taxable assessed value increased from $4.9 billion in Fiscal Year 2003-04 to $5.5 billion in Fiscal Year 2004-05, a 12% increase over the prior Fiscal Year. The taxable assessed value will continue to increase as new residential and commercial units are constructed by developers. In addition, the City began to receive additional property tax payments in lieu of a portion of vehicle license fees previously received from the state. Taxes Other Than Property increased from the prior year primarily due to an increase in sales tax collections experienced at the City's auto dealers and major retail outlets including Hacienda Crossings. Licenses and Permits increased from the prior year due to additional revenue received from the issuance of building permits for new residential and commercial units. Revenue from Use of Money and Property increased from the prior year primarily due to an increase in the rate of return earned on the City's investments. Intergovernmental Revenues - State are lower than in the prior year due to the City beginning to receive additional property tax payments (classed as property taxes) in lieu of a portion of vehicle license fees previously received from the state. Charges for Services are higher than in the prior year due to additional monies received for engineering and fire plan check fees for work performed by staff and consultants on new development occurring within the City. Other Revenues showed an increase over the previous year due to reimbursements received from other entities for expenditures incurred on the undergrounding of utilities on a portion of Dublin Boulevard. b. Expense Highlights General Government expenditures increased over the prior year due to increased personnel costs in all divisions. Public Safety costs increased over the prior year due to increased Police expenditures resulting from a cost of living adjustment from Alameda County for contract Police personnel. Fire expenditures also increased due to a full year of funding for additional staffing needed for the opening of a new fire station and a cost of living adjustment from the Alameda County Fire Department for existing contract fire personnel. 10 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30,2005 Highways and Streets expenditures increased over the prior year due to increased personnel costs in Public Works Administration and higher costs incurred for street landscape maintenance. Community Development expenditures increased over the prior year due to increased personnel costs in all Divisions and additional time spent by consultants on various development projects and contract building inspection services for new residential units, primarily in the Eastern Dublin Specific Plan area. The time spent on development projects are reimbursed by the project applicant and offset by revenue. c. Budgetary Highlights Over the course of the year, the City Council revised the City budget with adjustments that fall into one of the following three categories: . Changes made to adjust appropriations for capital project carryovers from the prior year. . Changes made in the mid-year report to adjust revenues and augment current year appropriations. . Other revenue and expenditure adjustments approved after the original budget was adopted. Budget adjustments approved by Council during Fiscal Year 2004-2005 included the following: . Setup of Modular Buildings at Emerald Glen Park due to closure of Shannon Community Center . Design, Surveying and Construction Consulting Services for Dougherty Road Improvements - Houston Place to 1-580 . Capital project carryover of unspent budgeted funds from Fiscal Year 2003-04 . Additional Work required for Dublin Boulevard Widening - Village Parkway to Sierra Court . Additional Work required for Village Parkway Sidewalk and Lighting Improvements After taking into account these adjustments, actual expenditures were $3.9 million lower than final budget amounts. Of the total, $2.4 million related to either capital projects whose final costs were lower than were originally anticipated or were carried over to Fiscal Year 2005-06. Most of the other budget to actual variances were due to either delays in development occurring within the City (some of which will be carried over to Fiscal Year 2005-06) or department labor savings created by vacant positions. CAPITAL PROJECTS FUNDS The City's Capital Project Funds (all of which the City classifies as Major funds), consist of the Traffic Impact Fees, Public Facilities Fees, Park Dedication Fees and Fire Impact Fees funds. These funds account for fees received from developers due to the impacts placed on the City resulting from their new developments. The funds received from developers are used to pay for required infrastructure, including additional streets, parks, public and fire station facilities. At the end of Fiscal Year 2004-05, total fund balance of these funds was $25.7 million, as listed below: 11 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30,2005 Fund Name Fund Balance Traffic Impact Fees Public Facilities Fee Park Dedication Fees Fire Impact Fees $18,238,374 8,712,054 946,987 (2,202,289) Total $25.695.126 As discussed in the notes to the financial statements, the entire amount has been designated by Council for use on various capital projects in the City's five year capital improvement program. During Fiscal Year 2004-05, the Capital Project Funds revenues exceeded their expenditures by $3.2 million, as listed below: Fund Name Change in Fund Balance Traffic Impact Fees Public Facilities Fee Park Dedication Fees Fire Impact Fees $ 915,980 2,650,325 (4,653) (391.310) Total $3.170.342 The Capital Project Fund revenues collected during the year and existing fund balances were used to pay for the following major expenditures during Fiscal Year 2004-05 Traffic Impact Fees . Design of the Fallon Road Interchange and completion of construction of San Ramon Road Interchange . Completion of construction for the Widening of Dublin Boulevard (Village Parkway to Sierra Court) . Design of Improvements to Dougherty Road Public Facilities Fees . Construction of Emerald Glen Park Phase III . Design of Fallon Sports Park . Construction of new senior center . Completion of construction of Bray Commons Neighborhood Park Fire Impact Fees . Expenditures related to completion of two new fire stations PROPRIETARY FUNDS The City's proprietary funds (Le., internal service funds, consisting of the Equipment Replacement, Fire Equipment and Station Replacement, Building Replacement and Retiree Health Care Internal Service Funds) are combined with the governmental activities in the governmental-wide financial statements. Unrestricted net assets in the City's proprietary funds at June 30, 2005 totaled $8.9 million, as listed below: 12 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2005 Fund Name Unrestricted Net Assets Equipment Replacement Fire Equipment and Station Replacement Building Replacement Retiree Health Care Total $1,904,408 1,195,370 1,500,196 4,328,789 $8.928.763 Council has designated the entire $8.9 million for future replacement of equipment, vehicles and building improvements and funding of future retiree medical costs. The total growth in unrestricted net assets for Fiscal Year 2004-05 was $711,639, as listed below: Fund Name Equipment Replacement Fire Equipment and Station Replacement Building Replacement Retiree Health Care Total CAPITAL ASSET AND DEBT ADMINISTRATION Change in Net Assets $ 300,255 (221,893) 153,184 480,093 $ 711.639 Capital assets. The City's investment in capital assets for its governmental activities as of June 30, 2005, amounts to $383.7 million (net of accumulated depreciation). This investment in capital assets includes land and streets right of way, buildings, park and roadway improvements, vehicles and other equipment and construction in progress, as summarized in the schedule bellow. During the current fiscal year, the City's investment in capital assets increased by approximately $22.5 million (6.2%). TABLE 3 Item Governmental Activities Tune 30, 2005 Tune 30, 2004 Land Streets right of way Construction in Progress Infrastructure Buildings and Improvements Machinery and Equipment Less Accumulated Depreciation $ 144,327,102 24,587,573 15,205,552 276,637,482 50,044,589 6,115,049 (133,250,160) Total $ 383.667.187 13 $144,327,102 23,759,813 9,481,466 244,488,458 49,859,341 5,529,295 (116,242,610) $ 361.202.865 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30,2005 Major capital asset events during the current fiscal year included the projects listed below: TABLE 4 Capital Project San Ramon Road Freeway Interchange Improvements Emerald Glen Park Phase III Bray Commons Neighborhood Park Emerald Glen Activity Center Traffic Signals at Dublin Boulevard and Inspiration Drive Traffic Signals at Amador Valley Boulevard and Starward Drive Park Play Area Renovations Dublin Sports Ground Renovation Downtown Improvements Senior Center Street Light Pole Replacement Fallon Road Freeway Interchange Improvements Status of Project Complete Complete Complete Complete Complete Complete In Progress In Progress In Progress In Progress In Progress In Progress fiscal Year 2004-2005 Expenditures $ 196,398 3,990,263 27,847 185,248 195,125 414,760 145,732 322,568 381,739 4,284,385 189,815 651,372 Additional information on the City's capital assets can be found in Note 4 of this report. LONG-TERM DEBT At the end of Fiscal Year 2004-05, the City had no debt outstanding. State statutes limit the amount of general obligation debt a governmental entity may issue to 15 percent of its total assessed valuation. The current debt limitation for the City is $837.1 million. Additional information on long-term debt is located in note 5 of this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS Given the state of the local economy and the amount of deficits being forecast as part of the State's budget, caution was exercised in developing the City's budget for Fiscal Year 2005-06. The City's adopted budget for Fiscal Year 2005-06 for all funds was $105.1 million, which includes an appropriation of $48.5 million for operations, $51.6 million for Capital Projects and a $5.0 million set aside to reserves. The amount budgeted for operations represents an increase of approximately 22% over Fiscal Year 2004-05 and is primarily due to projected increases in personnel costs, contract public safety services, continued consultant costs relating to new development occurring within the City, the continuation of some major capital projects from Fiscal Year 2004-2005 and the addition of several new capital projects. 14 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2005 Major Capital Projects funded for Fiscal Year 2005-06 include work on the following capital projects: . City Cablecast System . Downtown Improvements . Improvements to Emerald Glen Park . Murray Schoolhouse Exhibit Restoration . Emerald Glen Park Recreation and Aquatic Complex . Neighborhood Square in Area F . Dublin Sports Grounds Renovation . Fallon Sports Park . Completion of a new senior center . Shannon Community Center Reconstruction . Street Light Pole Replacement . Eastern Dublin Arterial Street Improvements . Construction of Fallon Road Interchange . Dougherty Road Improvements - Houston Place to 1-580 . St. Patrick's Way - Regional Street to Golden Gate Drive Primary funding sources for these projects include one time grants, impact fees received from new development and one time General Fund reserves set aside for these projects. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the financial position of the City for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the following address: City of Dublin, Finance Department, 100 Civic Plaza, Dublin, California 94568. 15 This page intentionally left blank. 16 GOVERNMENT -WIDE FINANCIAL STATEMENTS 17 City of Dublin Statement of Net Assets June 30, 2005 Governmental Activities ASSETS Current assets: Cash and investments Accounts receivable Accrued interest receivable Prepaids Total current assets $ 103,159,171 7,401,741 732,959 14,144 111,308,015 Noncurrent assets: Capital assets (non-depreciable): Land Streets right of way Construction in progress Capital assets (depreciable): Infrastructure Buildings and improvements Machinery and equipment Less accumulated depreciation Total noncurrent assets Total assets 144,327,102 24,587,573 15,205,552 276,637,482 50,044,589 6,115,049 (133,250,160) 383,667,187 494,975,202 LIABILITIES Current liabilities: Accounts payable Accrued wages Deposits payable Contract retention payable Liabilities insurance claims payable Total liabilities 8,562,155 1,097,912 3,751,478 193,121 238,441 13,843,107 NET ASSETS Invested in capital assets Restricted for: Public safety Impact fee projects Highways and streets Health and welfare Total restricted 383,667,187 Unrestricted Total net assets 358,015 27,897,415 3,504,793 13,528,245 45,288,468 52,176,440 $ 481,132,095 See accompanying Notes to Basic Financial Statements. 18 This page intentionally left blank. 19 City of Dublin Statement of Activities and Changes in Net Assets For the year ended June 30, 2005 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Governmental activities: General government $ 3,081,581 $ 5,198 $ $ Public safety 19,047,262 1,197,925 103,435 294,938 Highways and streets 19,810,590 2,451,377 30,350,778 Health and welfare 1,722,224 1,541,361 66,471 3,068,192 Culture and leisure 8,954,495 1,617,013 8,871,998 Community development 7,210,559 6,969,366 Total governmental activities $ 59,826,710 $ 13,782,240 $ 169,906 $ 42,585,906 General revenues: Taxes: Property taxes Sales tax Vehicle license taxes Other taxes Total taxes Intergovernmental (unrestricted) Miscellaneous Unrestricted invesbnent earnings Total general revenues Change in net assets Net assets: Beginning of year, as restated (Note 12) End of year See accompanying Notes to Basic Financial Statements. 20 Net (Expenses)! Revenue and Changes in Net Assets Total Program Governmental Revenues Activities $ 5,198 $ (3,076,383) 1,596,298 (17,450,964) 32,802,155 12,991,565 4,676,024 2,953,800 10,489,011 1,534,516 6,969,366 (241,193) $ 56,538,052 $ (3,288,658) $ 14,167,079 14,152,987 413,075 3,181,939 31,915,080 155,523 43,710 2,704,647 34,818,960 31,530,302 449,601,793 $ 481,132,095 21 This page intentionally left bla1lk. 22 FUND FINANCIAL STATEMENTS The City reports the following major governmental funds: The General Fund - is the government's primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Traffic Impact Fees Capital Projects Fund - is used to account for fees received from developers of properties, which can only be used for the design, development and construction of street projects within the City. The Public Facilities Fees Capital Project Fund - is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of new public facilities within the City. The Park Dedication Fees Capital Projects Fund - is used to account for park dedication fees received in lieu of property from developers pursuant to the Quimby Act. The Fire Impact Fees Capital Projects Fund - is used to account for fees received from developers of properties, which can only be used for the design, development, and construction of fire capital expansion projects within the City. 23 City of Dublin Balance Sheet Governmental Funds June 30, 2005 Capital Projects Funds Traffic Public Impact Facilities General Fees Fees ASSETS Cash and investments $ 51,816,028 $ 18,882,150 $ 9,415,806 Accounts receivable 1,548,426 514,364 Accrued interest receivable 732,959 Due from other funds 296,264 Prepaids 14,144 Advances to other funds 2,201,289 Total assets $ 56,609,110 $ 19,396,514 $ 9,415,806 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 5,910,745 $ 823,931 $ 687,510 Accrued wages and other payroll liabilities 1,097,912 Deposits payable 3,417,269 334,209 Contract retention payable 154,777 16,242 Liabilities insurance claims payable 238,441 Due to other funds Advances from other funds Total liabilities 10,819,144 1,158,140 703,752 Fund Balances: Reserved 2,275,433 18,238,374 8,712,054 Unreserved, designated reported in: General fund 43,514,533 Unreserved, undesignated, reported in: Capital projects funds Total fund balances 45,789,966 18,238,374 8,712,054 Total liabilities and fund balances $ 56,609,110 $ 19,396,514 $ 9,415,806 See accompanying Notes to Basic Financial Statements. 24 Capital Projects Funds Park Fire Non-Major Dedication Impact Governmental Fees Fees Funds Total $ 946,987 $ $ 13,109,541 $ 94,170,512 5,336,874 7,399,664 732,959 296,264 14,144 2,201,289 $ 946,987 $ $ 18,446,415 $ 104,814,832 $ $ 1,000 $ 1,076,996 $ 8,500,182 1,097,912 3,751,478 22,102 193,121 238,441 296,264 296,264 2,201,289 2,201,289 2,202,289 1,395,362 16,278,687 946,987 17,051,053 47,223,901 43,514,533 (2,202,289) (2,202,289) 946,987 (2,202,289) 17,051,053 88,536,145 $ 946,987 $ $ 18,446,415 $ 104,814,832 25 This page intentionally left blank. 26 City of Dublin Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets June 30, 2005 Fund Balances of Governmental Funds Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the Governmental Funds Balance Sheet. Non depreciable assets (Land and construction in progress) Depreciable buildings, property, equipment and infrastructure, net Total capital assets Internal service funds are used by management to charge the cost of certain activities, such as asset replacement and retiree health care to individual funds. The assets and liabilities of the internal service funds are included in the Government-Wide Statement of Net Assets. Net Assets of Governmental Activities See accompanying Notes to Basic Financial Statements. 27 $ 88,536,145 171,910,341 161,753,995 333,664,336 58,931,614 $ 481,132,095 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2005 Capital Projects Funds Traffic Public Impact Facilities General Fees Fees REVENUES: Property taxes $ 14,054,547 $ $ Sales tax 14,152,987 Other taxes 3,054,535 Intergovernmental 568,598 Licenses and permits 3,520,141 Charges for service 5,548,124 Interest 1,608,966 514,812 342,193 Use of property 125,835 Fines and forfeitures 143,316 Developer fees 2,438,758 8,561,285 Other revenue 783,876 Special assessments Total revenues 43,560,925 2,953,570 8,903,478 EXPENDITURES: Current: General government 4,829,140 1,611,062 Public safety 18,402.174 Highways and streets 1,662,206 Health and welfare 86.475 Culture and leisure 5,377,134 Community development 7,391.479 Capital outlay: General 633,849 Community improvement 403,110 36,771 Parks 2,630,021 6,253.153 Streets 980,260 1,698,801 Total expenditures 42,395,848 3,346,634 6,253,153 REVENUES OVER (UNDER) EXPENDITURES 1,165,077 (393,064) 2,650,325 OTHER FINANCING SOURCES (USES): Transfer in 27,231 1,309,044 Transfer out Total other financing sources (uses) 27,231 1,309,044 NET CHANGE IN FUND BALANCES 1,192,308 915,980 2,650,325 FUND BALANCES: Beginning of year, as restated 44,597,658 17,322,394 6,061,729 End of year $ 45,789,966 $ 18,238,374 $ 8,712,054 See accompanying Notes to Basic Financial Statements. 28 Capital Projects Funds Park Fire Non-Major Dedication Impact Governmental Fees Fees Funds Total $ $ $ 112,532 $ 14,167,079 364,478 14,517,465 3,054,535 2,743,481 3,312,079 3,520,141 1,075,179 6,623,303 27,882 454,759 2,948,612 125,835 149,342 292,658 293,103 3,068,191 14,361,337 171,073 954,949 744,100 744,100 27,882 293,103 8,883,135 64,622,093 59,470 35,736 6,535,408 761,755 19,163,929 610,104 2,272,310 1,648,312 1,734,787 5,377,134 13,140 7,404,619 616,923 1,250,772 8,020 14,850 462,751 32,535 321,717 9,237,426 149,555 2,828,616 32,535 684,413 3,555,169 56,267,752 (4,653) (391,310) 5,327,966 8,354,341 (1,336,275) (1,336,275) 1,336,275 (1,336,275) (4,653) (391,310) 3,991,691 8,354,341 $ 951,640 946,987 (1,810,979) 13,059,362 $ (2,202,289) $ 17,051,053 80,181,804 $ 88,536,145 29 City of Dublin Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets For the year ended June 30, 2005 Net Change in Fund Balance - Total Governmental Funds $ 8,354,341 Amounts reported for governmental activities in the Statement of Activities differs from the amounts reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances because: Governmental funds report acquisition of capital assets as expenditures in various functions and in capital outlay. However, in the Government-Wide Statement of Activities and Changes in Net Assets, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets additions recorded in the current period. This amount excludes the internal service funds capital asset additions of $5,534,159 7,363,463 In the Statement of Activities, capital assets donated to the City are reported as general revenue, whereas in the governmental funds, capital assets donated do not increase financial resources. Thus, the change in net assets differs from the change in fund balances by the value of the asset donated. 26,734,919 Depreciation expense on capital assets is reported in the Government-Wide Statement of Activities and Changes in Net Assets, but it does not require the use of current financial resources. Therefore, depreciation is not reported as an expenditure in governmental funds. This amount excludes the internal service funds depreciation of $2,043,223 (15,124,996) Internal service funds are used by management to charge the costs of certain activities to individual funds. The net (expense) of the internal service funds is reported with governmental activities. 4,202,575 Change in Net Assets of Governmental Activities $ 31,530,302 See accompanying Notes to Basic Financial Statements. 30 City of Dublin Statement of Net Assets Proprietary Funds June 30, 2005 Governmental Activities Internal Service Funds ASSETS Current assets: Cash and investments $ 8,988,659 Accounts receivable 2,077 Total current assets 8,990,736 Capital Assets: Land 6,842,037 Construction in progress 6,628,575 Buildings and improvements 43,804,365 Machinery and equipment 5,559,137 Less: accumulated depreciation (12,831,263) Total capital assets 50,002,851 Total assets 58,993,587 LIABILITIES Current liabilities: Accounts payable 61,973 T otallia bilities 61,973 NET ASSETS Invested in capital assets 50,002,851 Unrestricted 8,928,763 Total net assets $ 58,931,614 See accompanying Notes to Basic Financial Statements. 31 City of Dublin Statement of Revenues, Expenses, and Changes in Net Assets Proprietary Funds For the year ended June 30, 2005 Governmental Activities Internal Service Funds OPERATING REVENUES: Charges for services $ 1,642,441 Other revenue 4,841,987 Total operating revenues 6,484,428 OPERATING EXPENSES: Supplies and services 484,038 Depreciation 2,043,223 Total operating expenses 2,527,261 Operating income (loss) 3,957,167 NONOPERATING REVENUES: Interest income 245,408 Total nonoperating revenues 245,408 Change in net assets 4,202,575 NET ASSETS: Beginning of year 54,729,039 End of year $ 58,931,614 See accompanying Notes to Basic Financial Statements. 32 City of Dublin Statement of Cash Flows Proprietary Funds For the year ended June 30, 2005 Governmental Activities Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Receipt from customers Payments to suppliers Other Net cash provided (used) by operating activities $ 1,652,552 (474,634) 4,841,987 6,019,905 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets Net cash provided (used) by capital and related financing activities (5,534,159) (5,534,159) CASH FLOWS FROM INVESTING ACTIVITIES: Net cash provided (used) by investing activities 245,408 245,408 Interest received Net increase (decrease) in cash and cash equivalents 731,154 CASH AND CASH EQUIVALENTS: Beginning of year End of year $ 8,257,505 8,988,659 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Net effect of changes in: Accounts receivable Accounts payable Net cash provided (used) by operating activities $ 3,957,167 2,043,223 10,111 9,404 6,019,905 $ See accompanying Notes to Basic financial Statements. 33 City of Dublin Statement of Fiduciary Net Assets Fiduciary Fund June 30, 2005 Agency Fund ASSETS Cash and investments $ 196,982 Restricted cash and investments 175,727 Total assets $ 372,709 LIABILITIES Due to bondholders $ 372,709 Total liabilities $ 372,709 See accompanying Notes to Basic Financial Statements. 34 City of Dublin Index to Notes to Basic Financial Statements For the year ended June 30, 2005 Page 1. Summary of Significant Accounting Policies .................................................................................................. 38 2. Cash, Cash Equivalents and Investments........................................................................................................45 3. Interfund Transactions......................................... ......................................................................... ..... ................ 49 4. Capital Assets........................ ................ .................................... ........................ ................................................... 50 5. Special Assessment District Debt (Non-Obligatory) ...................................................................................... 51 6. Joint Powers Agreements.. .................................................................................................................................51 7. Fund Equity ..................................................... ..................................................................................................... 52 8. Risk Management........................................... ..................................................................................................... 53 9. Pension Plan......................................................................................................... ................................................ 54 10. Commitment and Contingent Liabilities ......................................................................................................... 55 11. Deficit Fund Balance ................................................. .......................................................................................... 57 12. Prior Period Adjustments..................................... ....... ......................................... .......... .................................... 57 35 This page intentionally left blank. 36 NOTES TO BASIC FINANCIAL STATEMENTS 37 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2005 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Dublin, California, (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Reporting Entity The City is a residential community with a significant regional commercial base, located in the Tri- Valley area of Alameda County, California at the crossroads of Interstate Freeways 580 and 680. The City was incorporated as a municipal corporation on February 1, 1982. The population at January 1, 2005, was 39,931, including prisoners housed at the Alameda County Sheriff's Department Santa Rita Jail and the Federal Correctional Institute. The City operates under the Council-Manager form of government, with five elected Council members served by a full-time City Manager and staff. At June 30, 2005, the City's staff was comprised of 85 full- time employees who were responsible for City-provided services. In addition, the City employs approximately 30-75 seasonal recreation personnel. The City provides many traditional municipal services through contracts with both public and private agencies. Approximately 123 contract employees provide a variety of municipal services from City facilities. The basic financial statements of the City include the financial activities of the City as well as the Dublin Information, Inc. (DII). DII is a separate legal entity, which assists in providing financing to the City. Dn is governed by the same governing board as the City plus the City Manager and Assistant City Manager and is dependent on the City for its cash flows. The financial activity of Dn is merged (termed 'blended') with that of the City and is accounted for in a special revenue fund. The ownership of assets previously owned by Dn was transferred to the City as of February 1, 1999, in conjunction with the early retirement of the 1933 Certificates of Participation. B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government-Wide Financial Statements The City's Government-Wide Financial Statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present summaries of Governmental Activities for the City. Fiduciary activities of the City are not included in these statements. 38 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Government-Wide Financial Statements, Continued These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets and infrastructure as well as long-term debt, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. The types of programs revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Charges for services include revenue from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grant and contributions include revenues restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenue are reported instead as general revenue. Certain eIiminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Assets have been eliminated. Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and aggregated non- major funds. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the Government-Wide Financial Statements. The City has presented the Traffic Impact Fee Capital Projects Fund as major because it met the qualifications of GASB Statement No. 34. In addition, the City has elected to present the following funds as major because of their significance to the City as a whole: the Public Facilities Fees Capital Projects Fund, the Park Dedication Fees Capital Projects Fund, and the Fire Impact Fees Capital Projects Fund. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is their net current assets, which is considered only to be a measure of available spendable resources. Governmental fund operating statements present a summary of sources and uses of available spendable resources during a period by presenting increases and decreases in net current assets. Under modified accrual basis of accounting, revenues are recognized in the accounting period in which they both become measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual are property taxes, sales taxes, transient occupancy taxes, interest revenues, charges for services, and courts fines (when measurable). Licenses, use of property, and permit revenues are not susceptible to accrual because they generally are not measurable until received in cash. 39 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30,2005 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements, Continued Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on general long term obligations which are recognized when due. Because of their current financial resources focus, expenditures recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund expenditures or fund liabilities. The City reports the following major governmental funds: The General Fund - is the government's primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Traffic Impact Fees Capital Projects Fund - is used to account for fees received from developers of properties, which can only be used for the design, development and construction of street projects within the City. The Public Facilities Fees Capital Project Fund - is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of new public facilities within the City. The Park Dedication Fees Capital Projects Fund - is used to account for park dedication fees received in lieu of property from developers pursuant to the Quimby Act. The Fire Impact Fees Capital Projects Fund - is used to account for fees received from developers of properties, which can only be used for the design, development, and construction of fire capital expansion projects within the City. Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Assets, a Statement of Revenues, Expenses, and Changes in Net Assets, and a Statement of Cash Flows. All proprietary funds are accounted for using the accrual basis of accounting and the "economic resources" measurement focus. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. All liabilities associated with their activity are also included on the Statement of Net Assets. The City's proprietary funds are: Internal Service Funds which are used to account for the financing of goods or services provided by department or agency to other department or agencies of the City on a cost-reimbursement basis. The City uses internal service funds to account for asset replacement and post-retirement health care activities. 40 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements, Continued Because the principal users of the internal services are the City's governmental activities, the financial information of the internal services funds are consolidated into the governmental activities column when presented in the government-wide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's proprietary funds are charges to customers for services. Operating expenses include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Fiduciary Fund Financial Statements Fiduciary Fund Financial Statements include a Statement of Net Assets. The fiduciary funds are used to report assets held in a trustee or agency capacity for others and therefore are not available to support City programs. Since these assets are being held for the benefit of a third party, these funds are not incorporated into the government-wide statements. The City's only fiduciary fund is an agency fund, which uses the accrual basis of accounting to account for amounts held for debt service on the Dublin Boulevard Extension Special Assessment District. The Agency fund is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of operations. The City is not responsible for payment of the bonds and acts only as an agent to collect assessments, pay bondholders, and initiate foreclosure proceedings. C. Capital Assets, Depreciation, and Long- Tenn Liabilities Capital assets, which include buildings, machinery and equipment, and infrastructure assets (roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and park improvements), are reported in the Governmental Activities columns of the Government-Wide Financial Statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $2,500 for general capital assets and $100,000 for infrastructure capital assets. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair market value on the date donated. Capital assets are depreciated over their estimated useful lives using the straight-line method. This means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets over the useful life of these assets. The amount charged to depreciation expense each year represents that year's pro rata share of the cost of capital assets. 41 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30,2005 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Capital Assets, Depreciation, and Long- Tenn Liabilities, Continued Depreciation of capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, is reported on the Statement of Net Assets of the government-wide financial statements as a reduction in the book value of the capital assets. The City has assigned the useful lives listed below to capital assets. Building and improvements Machinery and equipment Infrastructure Streets 20-38 Years 3-15 Years 20-75 Years GASB Statement No. 34 requires the City to report and depreciate new infrastructure assets effective with the beginning of the current year. Infrastructure assets include roads, bridges, sidewalks, curbs gutters, park improvements, traffic signals, etc. Neither their historical cost nor related depreciation has historically been reported in the financial statements. The retroactive reporting of infrastructure is subject to an extended implementation period. The City performed an inventory of all infrastructure acquired prior to July 1, 2001 during the fiscal year ending June 30, 2005, and has included these assets in the current financial statements. D. Use of Restricted Resources When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as needed. E. Cash and Investments GASB Statement No. 31, "Accounting and Financial Reporting for Certain Investments and External Pools", requires governmental entities to report certain investments at fair value in the balance sheet and recognize the corresponding change in the fair value of investments in the year in which the change occurred. In accordance with GASB Statement No. 31, the City has adjusted certain investments to fair value (when material). Proprietary fund type cash and investments are used in the preparation of the statement of cash flows as investments are not allocated to specific funds. Each of these funds' allocation of pooled cash and investments is considered cash and cash equivalents. 42 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30,2005 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Cash and Investments, Continued In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas: · Interest Rate Risk · Credit Risk o Overall o Custodial Credit Risk o Concentrations of Credit Risk In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. F. Deferred Compensation Plan City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination of employment, retirement, death, or in an emergency as defined by the Plan. In accordance with GASB Statement No. 32, the City revised the plan to no longer make the funds available to the City's general creditors and accordingly, the City does not report the assets in the financial statements. G. Property Tax Alameda County assesses properties and bills, collects, and distributes property taxes to the City. The County remits the entire amount paid and handles all delinquencies. The City receives proportionate shares of prior year collections including retaining interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. H. Post Employment Health Care Benefits The City provides certain health care benefits for 25 retirees as required under a contract signed with PERS. All former employees who retire with the City under PERS are eligible for these benefits. The cost of retiree health care benefits is recognized as expenditures as premiums are paid. For the year ended June 30, 2005 those costs totaled $131,396. 43 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30,2005 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 1. Net Assets Government-Wide Financial Statements In the Government-Wide Financial Statements, net assets are classified in the following categories: Invested in Capital Assets, Net of Related Debt - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. Restricted Net Assets - This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Unrestricted Net Assets - This amount is all net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net assets." Fund Financial Statements Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund's cash and receivables, less its liabilities. Portions of a fund's balance may be reserved or designated for future expenditures. Reserves are restrictions placed by outside entities, such as other governments, which restrict the expenditures of the reserved funds to the purpose intended by the entity which provided the funds. The City cannot modify or remove these restrictions or reserves. In addition, the City Council may reserve funds by resolution to set aside funds which are not available for current appropriation or expenditure. Designations are imposed by City Council to reflect future spending plans or concerns about the availability of future resources. Designations may be modified, amended or removed by City Council action. The City had the following reserves and designations: Reserved for prepaid expenditures is the portion of fund balance set aside to indicate that these items do not represent available, spendable resources even though they are a component of assets. Reserved for cemetery endowment is the portion of fund balance to be retained. This represents funds transferred by the Dublin Cemetery Association, when the City acquired the cemetery. Reserved for long-term advances is the portion of fund balance set aside to indicate that these items do not represent available, spendable resources even though they are a component of assets. Reserved for recycling programs is the portion of fund balance set aside for revenue received from the Alameda County Waste Management Authority to be used solely for recycling. Reserved for public safety programs represents the net amounts available from grant and other sources restricted to use on public safety programs. 44 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 1. Net Assets, Continued Fund Financial Statements, Continued Reserved for street maintenance and construction represents amounts available and restricted to use on projects related to street maintenance and construction. Reserved for health and welfare programs includes amounts restricted for use on programs including housing, noise mitigation, and garbage services. Reserved for capital improvement proiects represents amounts collected from developers to be spent on specific projects impacted by the development. Designated for economic uncertainty is the portion of fund balance to be used in the event of economic uncertainty. Designated for other represents the amount of resources set aside to fund or partially fund the various projects. The amount designated for authorized expenditures represents the amount not specifically identified with an individual project. J. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. 2. CASH, CASH EQUIVALENTS AND INVESTMENTS The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is allocated to the funds based on average monthly cash and investment balances in these funds. A. Cash Deposits The carrying amount of the City's cash deposits was $1,403,356 at June 30, 2005. Bank balances before reconciling items were $915,712 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City's name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. 45 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued A. Cash Deposits, Continued The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $100,000 per depositor by the Federal Deposit Insurance Corporation. The City, however, has not waived the colIateralization requirements. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. B. Investments Under the provisions of the City's investment policy, and in accordance with Section 53601 of the California Government Code, the City is authorized to invest or deposit in the following investments: . Bankers' Acceptances . Commercial paper . Local Agency Investment Fund . Negotiable certificates of deposit . Repurchase agreements . Mutual Funds . Securities of the Federal government or its agencies In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investments Pools, investments should be stated at fair value. The City reported its investments at fair value. For the year ended June 30, 2005, the unrealized loss on investments amounted to $120,130. Interest and investment earnings before recognition of unrealized loss was $3,312,401 as of June 30, 2005. C. Summary of Cash and Investments The following is a summary of pooled cash and investments, including restricted cash and investments at June 30, 2005: Government-Wide Statement of Fiduciary Net Assets Funds Governmental Statement of Activities Net Assets Total $ 103,159,171 $ 196,982 $ 103,356,153 175,727 175,727 $ 103,159,171 $ 372,709 $ 103,531,880 46 Cash and inveshnents Restricted cash and inveshnents Total City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued D. Risks Disclosures Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's investment policy provides that final maturities of securities cannot exceed five years. Specific maturities of investments depend on liquidity needs. At June 30, 2005, the City's pooled cash and investments had the following maturities: Maturity Percentage of Investment Less than one year One to three years Three to five years 30% 53% 17% The average life of the federal security portfolio was 2.4 years. Deposits and investments held by the City at June 30, 2005 are summarized below: Inveshnent Maturities (in years) 1 year or less 1-5 years Investment Type Fair Value City Treasury: Deposits: Cash on hand Deposits with banks Total deposits Investments: Federal Home Loan Bank Federal National Mortgage Association Federal Home Loan Mortgage Association Federal Farm Credit Bureau Mutual Funds California Local Agency Investment Fund Total investments $ 1,550 1,401,806 1,403,356 $ 1,550 $ 1,401,806 1,403,356 Total City Treasury Cash with fiscal agents Total City and fiscal agent cash and inveshnents 48,725,418 11,367,588 10,369,990 425,867 2,719,872 2,719,872 28,344,062 28,344,062 101,952,797 31,063,934 103,356,153 32,467,290 175,727 $ 103,531,880 $ 32,467,290 48,725,418 11,367,588 10,369,990 425,867 70,888,863 70,888,863 175,727 $ 71,064,590 47 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued D. Risks Disclosures, Continued At June 30, 2005, the City had the following investments credit risk ratings: Investments: Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Association Federal Farm Credit Bureau Mutual Funds California Local Agency Investment Fund Credit Quality Ratings Moody's S&P Aaa AAA Aaa AAA Aaa AAA Aaa AAA Aaa AAA Not Rated Cash with fiscal agents Not Rated E. Investments in Local Agency Investment Fund The City valued its investments in LAIF as of June 30, 2005, at amortized cost which approximates the fair value. If the fair value was to be calculated it would be calculated by multiplying the account balance with LAIF times a fair value factor of 99.7748%, which is determined by LAIF. This fair value factor was determined by dividing all LAIF participants' total aggregate amortized cost by total aggregate fair value. The City's investments with Local Agency Investment Funds (LAIF) at June 30, 2005, included a portion of the pooled funds invested in Structured Notes and Asset-Backed Securities. These investments included the following: . Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and! or that have embedded forwards or options. . Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO) or credit card receivables. As of June 30, 2005, the City had $28,344,062 invested in LAIF, which had invested 2.406% of the pool investment funds in Structured Notes and Asset-Backed Securities. 48 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 3. INTERFUND TRANSACTIONS Due To/ From During the normal course of business the General Fund may advance to other funds to cover deficit cash balances caused by expenditures for reimbursement type grants. During the fiscal year advances were made to the Community Development Block Grant Fund, Office of Emergency Services Fund, FEMA Disaster Assistance Fund, and the State Park Bond Act Fund in the amounts of $2,383, $1,835, $3,435 and $288,611 respectively. When the reimbursement is received, normally shortly after year end, the interfund liability is liquidated. The following interfund balances existed at June 30, 2005: Due from other funds Due to other funds Major Fund General Fund Non Major Funds Total $ $ 2%,264 2%,264 Advances To/From During the 2003-2004 and 2004-2005 Fiscal Years the General Fund advanced funds to the Fire Impact Fees Capital Projects fund to aid in the financing of fire station construction projects. The advance will be repaid through future revenues to the Fire Impact Fees Fund. Interest accrues, on the advance, at a rate equal to the City's return on its investment portfolio. The following interfund balances existed at June 30, 2005: Advances to other funds Advances from other funds Major Fund General Fund Major Fund: Fire Impact Fees Total $ $ 2,201,289 2,201,289 Transfers In/Out Interfund transfers for the year ended June 30, 2005 were as follows: Transfers in Transfers out: Major Fund Traffic Impact General Fund Fees Capital Project Fund Total Non Major Funds Total $ $ 27,231 $ 27,231 $ 1,309,044 $ 1,336,275 1,309,044 $ 1,336,275 49 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 3. INTERFUND TRANSACTIONS, Continued Transfers In to the General Fund in the amount of $27,231 are reimbursements to the General Fund from the Vehicle Abatement Fund for vehicle abatement services, from the CDBG fund for administrative costs, from the Storm Water Runoff Fund for collection of delinquent drainage maintenance assessments and from the Traffic Congestion Relief Fund for traffic congestion relief expenditures. Transfers In to the Traffic Impact Fee Fund of $1,309,044 were to reimburse this fund for prior year expenditures incurred on Tassajara Roadjl-580 Freeway Interchange improvements from grant proceeds received by the State Transportation Improvement Fund. 4. CAPITAL ASSETS A. Government-Wide Financial Statements In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Government-Wide Statement of Net Assets. The City has elected to use the basic approach as defined by GASB Statement No. 34 for all infrastructures reporting, whereby depreciation expense and accumulated depreciation have been recorded. The City had elected to use the deferral period for the retroactive reporting of infrastructure values (infrastructure constructed or acquired prior to July 1, 2001) as provided for by GASB Statement No. 34. During the current fiscal year, the City performed an inventory of all infrastructure assets and has included all such assets acquired prior to July 1, 2001 in the current financial statements. Capital assets include land, buildings, and equipment used in City operations. Infrastructure includes roads, bridges, curbs, sidewalks, drainage systems, street and traffic lights, park improvements and other improvements used by all citizens. The following is a summary of capital assets for governmental activities: Balance Balance July 1 GASB 34 June 30 2004 Addition Deletion Transfers PPA 2005 Capital assets, not being depreciated: Land S 10,204,002 $ $ $ S 134,123,100 $ 144,327,102 Streets right of way 5.558,024 827,760 18.201,789 24,587,573 Construction in progress 9,352,584 6,984,812 (1.260.726) 128,882 15,205,552 Total capital assets, not being depreciated 25,114,610 7,812,572 (1,260,726) 152,453,771 184.120,227 Capital assets, being depreciated: Infrastructure 13,992,954 30,888,298 1,260,726 230,495,504 276.637,482 Buildings and improvements 47,410,391 185,248 2,448,950 50,044,589 Equipment 5,529,295 746,424 (160,670) 6,115,049 Total capital assets, being depreciated 66,932,640 31,819,970 (160,670) 1,260,726 232,944,454 332,797,120 Less accumulated depreciation for: Infrastructure (445,415) (14,854,687) (103,788,286) (119,088,388) Buildings and improvements (8,198,474) (1,637,543) (457,784) (10,293,801) Equipment (3,352,651) (675.990) 160,670 (3,867,971) Total accumulated depreciation (11,9%,540) (17,168,220) 160,670 (104,246,070) (133,250,160) Total capital assets being depreciated, net 54,936,100 14,651,750 1,260,726 128,698,384 199,546.960 Governmental activities capital assets, net $ 80,050,710 $ 22,464,322 $ $ $ 281,152,155 $ 383,667.187 50 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 4. CAPITAL ASSETS, Continued A. Government-Wide Financial Statements, Continued Depreciation expense was charged to functions/programs of the primary government as follows: Total depreciation expense - governmental activities $ 2,313,533 11,155,883 3,698,804 $ 17,168,220 General government Highways and streets Culture and leisure B. Fund Financial Statements The fund governmental financial statements do not present general government capital assets but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets. 5. SPECIAL ASSESSMENT CITY DEBT (NON-OBLIGATORY) The Dublin Boulevard Extension Special Assessment District, formed within City limits, had outstanding debt with a balance of $1,331,000 at June 30, 2005. Proceeds of the debt were used to finance improvements within City boundaries. The City has no legal, contingent or moral obligation for the repayment of this debt and acts solely as the collecting and paying agent for the City. Activities of the City are reported in the Dublin Boulevard Extension Assessment District Agency Fund. 6. JOINT POWERS AGREEMENTS The City participates in joint ventures with other municipal entities through Joint Powers Agreements (JP As) established under the Joint Exercise of Powers Act of the State of California. Toint Ventures The Cities of Dublin, Pleasanton, and Livermore and the County of Alameda have entered a joint powers agreement, dated September 15, 1992, under which Alameda County constructed an animal shelter facility on county property. Certificates of Participation were issued to construct the facility. Under the agreement the entities will share in the debt service costs of the project based upon their use of the animal shelter. The original total principal portion of the scheduled debt is $4,523,877. The City's share for the 2004-2005 fiscal year based upon the statistics of live animals handled in the shelter in calendar year 2005, was $44,934 representing 14.176 percent of the debt service requirements. In addition, $163,436 was paid for the City's share of operating expenses. The City has not recorded an equity interest for the animal shelter agreement. As noted above the ongoing financial interest is limited to the statistics of live animals handled in the appropriate fiscal year. No Joint Powers Authority was established as part of this agreement therefore, separate financial statements are not issued. 51 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 7. FUND EQUITY In the Fund Financial Statements, reserves and designations segregate portions of fund balance that are either not available or have been earmarked for specific purposes. The various reserves and designations are established by actions of the City Council and Management and can be increased, reduced or eliminated by similar actions. In Governmental Funds, fund reservations and designations are presented as a component of fund balance as follows: Traffic Public Park Fire General Impact Facilities Dedication Impact Non-Major Fund Fees Fees Fees Fees Funds Reserved: Prepaid expenditures $ 14,144 $ $ $ $ $ Cemetery endowrrent 6O,em Long-term advances 2,201,289 Long-term receivables 4,596,534 Recycling programs 606,7'J7 Public safety programs 358,015 Street maintenance and construction 3,046,963 Health and welfare programs 8,264,914 Pole painting 65,006 Capital improverrent projects 18,238,374 8,712,054 946,987 112,824 Total reserved 2,275,433 18,238,374 8,712,054 946,987 17,051,053 Unreserved, designated: Economic uncertainty 2,970,721 Downtown open space 2,329,001 Senior center 307,691 OF carryovers 1,020,275 Capital improvement 2,635,621 Culvert Maintenance 280,em Affordable housing l,em,em Designated for authorized expenditures 32,971,221 Total unreserved designated 43,514,533 Unreserved, undesignated (2,202,289) Total fund equity $ 45,789,966 $ 18,238,374 $ 8,712,054 $ 946,987 $ (2,204289) $ 17,051,053 52 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 8. RISK MANAGEMENT A. Risk Pool The City participates in the ABAG PLAN Corporation, which covers general liability claims in an amount up to $10,000,000 and property insurance coverage for members up to $500,000,000. The City has a deductible or uninsured liability for general liability of up to $50,000 per claim. The deductible for property claims is $5,000 per occurrence, excluding auto claims, which have a $10,000 deductible. Once the City's deductible is met ABAG PLAN becomes responsible for payment of all claims up to the limit. During the fiscal year ended June 30, 2005, the City contributed $185,395 for current year coverage. The ABAG PLAN is governed by a board consisting of representatives from member municipalities. The board controls the operations of the ABAG PLAN including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board. The City's contributions to the ABAG PLAN for liability coverage are based on a formula which considers the ratio of the City's payroll to the total payrolls of all entities participating in the same layer of each program, in each program year's loss history and population. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. There have been no significant reductions in any of the City's areas of insurance coverage and no settlement amounts have exceeded coverage. Audited financial information for the ABAG PLAN can be obtained from ABAG PLAN, p.o. Box 2050, Oakland, California 94604-2050. B. Liability for Uninsured Claims The GASB requires municipalities to record their liability for uninsured claims and reflect the current portion of this liability as an expenditure in their financial statements. As discussed, above, the City has coverage for such claims, but it has retained the risk for the deductible, or uninsured portion of these claims in the ABAG PLAN. GASB Statement No. 10, "Financial Reporting for Risk Financing and Related Insurance Issues" require that this amount be separately identified and recorded as a liability. The City's liability for uninsured claims, limited to general liability claims as discussed above, includes a provision for incurred but not reported losses. This amount was estimated based on claims experience. The claim liability for the current and prior years are as follows: June 30, 2005 June 30, 2004 June 30, 2003 Beginning balance $ 137,210 S 137,210 $ 137,210 Provision for claims 207,019 87,871 25,895 Oaims paid (105,788) (87,871 ) (25,895) Ending balance $ 238,441 $ 137,210 $ 137,210 The City has obtained a workers' compensation insurance policy from the Cities Group, which has no deductible. 53 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 9. PENSION PLAN A. PERS Plan Description - The City's defined benefit pension plan, (Miscellaneous Plan), provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The Miscellaneous Plan is part of the Public Agency portion of the California Public Employees Retirement System (CaIPERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements are established by State statutes within the Public Employees' Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance or resolution. CalPERS issues a separate comprehensive annual financial report. Copies of the CaIPERS's annual financial report may be obtained from the CalPERS Executive Office, 400 P Street Sacramento, California 95814. Funding Policy - Active plan members in the Miscellaneous Plan are required to contribute 7 percent of their annual covered salary, which the City pays on behalf of the employees in the amount of $437,821. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the Cal PERS Board of Administration. The required employer contribution rate for fiscal year 2004-2005 was 9.067% for miscellaneous employees. (The City has only miscellaneous employees.) The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by CaIPERS. Annual Pension Cost - For fiscal year 2004-2005, the City's annual pension cost was $569,893 and was equal to the City's required and actual contributions. The required contribution for fiscal year 2004- 2005 was determined as part of the June 30, 2002, actuarial valuation using the entry age normal actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions included (a) 8.25 percent investment rate of return (net of administrative expenses); (b) projected salary increases that vary by duration of service ranging from 3.75 percent to 14.20 percent for miscellaneous members; and (c) 0.25 percent cost-of-living adjustment. Both (a) and (b) include an inflation component of 3.5 percent. The actuarial value of Miscellaneous Plan's assets was determined using a technique that smoothes the effect of short-term volatility in the market value of investments over a two to five year period depending on the size of investment gains and/ or losses. Miscellaneous Plan's unfunded actuarial accrued liability (or excess assets) is being amortized as a level percentage of projected payroll on a closed basis. The average remaining amortization period at June 30, 2002 was 32 years for miscellaneous employees for prior and current service unfunded liabilities. Three Year Trend Information for the Miscellaneous Plan Annual Percentage Pension Cost of APC Net Pension Fiscal Year (APe) Contributed Obligation 6/30/2003 $ 198,418 100% $ 6/30/2004 350,269 100% 6/30/2005 569,893 100% 54 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30,2005 9. PENSION PLAN, Continued B. Social Security/Public Agency Retirement Systems (PARS) The Omnibus Budget Reconciliation Act of 1990 (OBRA) mandates that public sector employees who are not members of their employer's existing retirement system as of January 1, 1992, be covered by either Social Security or an alternate plan. The City's part-time, seasonal and temporary employees are covered under Social Security, which requires these employees and the City to each contribute 6.2 percent of the employees' pay. The City entered into an agreement with the PARS to provide an alternative retirement system for the part-time employees. The PARS plan was effective December 25, 2004, and replaced Social Security. 10. COMMITMENT AND CONTINGENT LIABILITIES A. Grant Programs The City participates in several Federal and State grant programs. No cost allowances were proposed as a result of the City's financial audit; however, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures, which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. B. Litigation The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation, which is likely to have a material adverse effect on the financial position of the City. C. Reimbursements to the City On January 23, 1996, the City adopted a fee for the purpose of reimbursing the City of Pleasanton for the costs of making improvements to the interchanges on Interstate 580 at Hacienda Drive and Tassajara Road/Santa Rita Road that benefit development in both Pleasanton and future development in Eastern Dublin. The Cities entered into an agreement on November 3, 1998, to allow for an automatic annual escalator factor in the amount of the fee assessed to developers based upon the LAIF interest rate and to repay the City of Pleasanton. The amount of the contingent liability outstanding at June 30, 2005, was $5,313,220, which is net of the $251,993 in payments made by the City to reduce this contingent liability during the year. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for reimbursement of these improvements. The City has also entered into an agreement with the City of Pleasanton for the reimbursement of the cost of construction of a two-lane access road and the extension of Hacienda Drive. The advance as of June 30, 2005, is $3,049,769, which includes $126,084 interest for the current year. Interest accrues on the reimbursement at 7.48 percent per year. The reimbursement is to be repaid from proceeds of assessments, special taxes or fees imposed on the property east of Dougherty Road with no specific due date. The City's General Fund shall not be obligated to repay this obligation. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for reimbursement of these improvements. 55 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 10. COMMITMENT AND CONTINGENT LIABILITIES, Continued D. BART Agreement In 1990, the City and Bay Area Rapid Transit City (BART) entered into a Settlement Agreement regarding the City's extension of Dublin Boulevard to the extension of Hacienda Drive. BART advanced the City $2,285,000 to purchase land and construct the road extensions. The advance was structured with two components: a Short Term and a Long Term Advance. These projects are now complete. Short Term Advance The amount provided as a Short Term Advance came due on December 31, 1995. In accordance with a separate agreement, the Alameda County Surplus Property Authority repaid this amount. See the related note on the Alameda County Surplus Property Authority below. Lon:? Term Advance BART's long term advance to the City, including accrued interest as of June 30,2005 is $2,187,287, which has no specific due date. Under the City's agreement with BART, interest on the advance accrues at a rate based on BART's average rate of return on its investments. During the year ended June 30,2005 unpaid interest incurred was added to the balance owed in the amount of $65,560. The City expects to repay principal and interest on BART's advance out of developer fees, charges and other non-tax revenues generated by future development in the area of the BART station. The agreement states that in no event is the advance to be repaid from the City's General Fund or from general revenues. The agreement provides for the forgiveness by BART of any principal or interest still outstanding on March 27, 2010. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for repayment of the advance. E. Alameda County Surplus Property Authority The City entered into an agreement with the Alameda County Surplus Property Authority for the repayment of the City's Short Term BART Advance by the Authority. Under the terrns of the agreement, interest on the advance shall accrue at a rate based on the Alameda County Treasurers return on investments. As of June 30, 2005, the advance is $2,266,826, which includes accrued interest of $42,485 for the current year. The advance is to be repaid from developer fees, charges, and other non- tax revenues from the benefiting area and has no specific due date. The City's General Fund shall not be obligated to repay this obligation. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for repayment of the advance. 56 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2005 10. COMMITMENT AND CONTINGENT LIABILITIES, Continued F. Other Development Agreements The City entered into several agreements with various developers and merchant builders who are developing numerous residential and commercial projects throughout the City. The City agreed to grant the developers impact fee credits since the developers constructed certain improvements beyond what was needed to serve their specific projects. The value of credits does not increase for inflation nor do they accrue interest. Any unused credits may be used by the developers on other projects located within the Traffic Impact Fee area. The value of the credits as of June 30,2005 was $50,911,203. For the current year, additions to the credits amounted to $3,148,129 and credits used amounted to $6,252,162. The accounting for the amounts due are not recorded as indebtedness since the payments (use of credits) are contingent upon the collection of development fees from building growth that has not yet occurred. 11. DEFICIT FUND BALANCE The Fire Impact Fees Fund ended the fiscal year with a $2,202,289 deficit fund balance. The General Fund has advanced money to this fund to cover current cash flow needs. Repayment of the advance is expected to come from future revenues to this fund. 12. PRIOR PERIOD ADJUSTMENTS A. Government-Wide Financial Statements: Prior period adjustments were recorded to the government wide financial statements to record capital assets in accordance with the implementation of GASB Statement No. 34 as of July 1, 2004. Prior Period Adjustments Net Assets, as Previously Capital Net Assets, Reported Assets as Restated $ 168,449,638 $ 281,152,155 $ 449,601,793 $ 168,449,638 $ 281,152,155 $ 449,601,793 Government-Wide Activities: Net assets Total government-wide activities: 57 This page intentionally left blank. 58 REQUIRED SUPPLEMENTARY INFORMATION 59 City of Dublin Required Supplementary Information For the year ended June 30, 2005 1. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: . Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. . The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution. . The City Manager is authorized to transfer budgeted amounts between line items within any department. Any revisions, which alter total departmental expenditures of the City must be approved by City Council except as follows: The City Manager will be allowed to transfer funds from the contingent reserve to operating departments salary and benefits accounts when required due to employee turnover or change in status, City Council approved funding for increases in employees salaries and benefits, and City Council approved funding for increase in contract or labor rates. Expenditures may not exceed budgeted appropriations at the departmental level without City Council approval. . Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. . Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent with generally accepted accounting principles in the United States. . All unexpended appropriations lapse at the end of the fiscal year. 60 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Required Supplementary Information, Continued For the year ended June 30,2005 Variance with Final Budget - Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Property taxes $ 13,661,980 $ 13,661,980 $ 14,054,547 $ 392,567 Sales tax 13,613,216 13,613,216 14,152,987 539,771 Other taxes 2,666,000 2,666,000 3,054,535 388,535 Intergovernmental 449,100 449,100 568,598 119,498 Licenses and permits 2,723,912 2,723,912 3,520,141 796,229 Charges for service 5,117,168 5,177,916 5,548,124 370,208 Interest 1,369,725 1,369,725 1,608,966 239,241 Use of property 168,365 168,365 125,835 (42,530) Fines and forfeitures 112,900 112,900 143,316 30,416 Other revenue 1,437,280 963,387 783,876 (179,511) Total revenues 41,319,646 40,906,501 43,560,925 2,654,424 EXPENDITURES: Current: General government 5,114,972 5,158,406 4,829,140 329,266 Public safety 18,460,202 18,577,499 18,402,174 175,325 Highways and streets 1,690,651 1,693,600 1,662,206 31,394 Health and welfare 78,125 88,125 86,475 1,650 Culture and leisure 5,863,186 5,875,556 5,377,134 498,422 Community development 7,807,374 8,002,433 7,391,479 610,954 Capital outlay: General 1,020,815 1,109,450 633,849 475,601 Community improvement 799,839 1,156,103 403,110 752,993 Parks 2,436,144 3,375,375 2,630,021 745,354 Streets 1,374,620 1,437,154 980,260 456,894 Total expenditures 44,645,928 46,473,701 42,395,848 4,077,853 REVENUES OVER (UNDER) EXPENDITURES (3,326,282) (5,567,200) 1,165,077 6,732,277 OTHER FINANCING SOURCES (USES): Transfer in 219,978 219,978 27,231 (192,747) Transfer out Total other financing sources (uses) 219,978 219,978 27,231 (192,747) NET CHANGE IN FUND BALANCES $ (3,106,304) $ (5,347,222) 1,192,308 $ 6,539,530 FUND BALANCES: Beginning of year, as restated 44,597,658 End of year $ 45,789,966 61 This page intentionally left blank. 62 City of Dublin Required Supplementary Information, Continued For the year ended June 30, 2005 Schedule of Funding in Pro~ress Miscellaneous Plan of the California Public Employee Retirement System Actuarial Valuation Date' Actuarial Asset Value Entry Age Actuarial Accrued Uability Unfunded (Overfunded) Unfunded Actuarial (Overfunded) Uability as Actuarial Percentage of Accrued Funded Covered Uability Ratio Covered Payroll (B-A) (A/B) Payroll (CjE) $ 45,699 99.4% $ 4,760,484 1.0% 59,359,278 88.5% 120,692,360 49.2% 100,556,115 85.2% 160,107,449 62.8% 6/30/2002 $ 7,261,051 $ 7,306,750 CalPERS Risk Pool Information (See note below) 6/30/2003 456,062,164 515,421,442 6/30/2004 580,960,891 681,517,006 As of the actuarial valuation date of June 30, 2003, the City's miscellaneous plan became part of a CalPERS Risk Pool for employers with less than 100 active plan members. The schedule of funding progress for miscellaneous employees presented above for fiscal years 2003 and 2004 are for the whole pool and not that of the City individually. At the end of Fiscal Year 2004-2005 CalPERS changed the City's from a pool with benefits of 2% at 55 to a pool with benefits of 2.7% at 55 due to the City's enhanced benefit plan. As a result, the 2003 amounts have been restated to reflect this change. 63 This page intentionally left blank. 64 SUPPLEMENTARY INFORMATION 65 This page intentionally left blank. 66 GENERAL FUND The General Fund is used to account for all financial resources except those required to be accounted for in another fund. 67 City of Dublin Schedule of Budget Versus Actual Revenues by Sources General Fund For the fiscal year ended June 30,2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) Property Taxes: Current year secured $ 10,653,000 $ 10,653,000 $ 9,953,592 $ (699,408) Current year unsecured 789,000 789,000 814,399 25,399 Prior year secured 232,000 232,000 187,082 (44,918) Prior year unsecured 44,000 44,000 11,623 (32,377) Supplemental property tax 536,000 536,000 651,821 115,821 Pilot tax 57,700 57,700 57,569 (131) In lieu property tax 1,257,280 1,257,280 2,278,846 1,021,566 Property tax penalties 93,000 93,000 99,615 6,615 Sub-total 13,661,980 13,661,980 14,054,547 392,567 Taxes Other Than Property: Sales & use tax 13,613,216 13,613,216 14,152,987 539,771 Real property transfer tax 520,000 520,000 831,003 311,003 Hotel transient occupancy tax 610,000 610,000 663,632 53,632 Franchise taxes 1,536,000 1,536,000 1,559,900 23,900 Sub-total 16,279,216 16,279,216 17,207,522 928,306 License and Permits: Building permits 2,500,762 2,500,762 3,267,228 766,466 Animal licenses 5,800 5,800 20,022 14,222 Encroachment permits 23,700 23,700 28,961 5,261 Business license 124,000 124,000 127,404 3,404 Fire permits 69,650 69,650 76,526 6,876 Sub-total 2,723,912 2,723,912 3,520,141 796,229 Fines and Forfeitures: Parking fines 58,000 58,000 71,241 13,241 Other court fines 52,000 52,000 66,877 14,877 Other fines & penalties 2,900 2,900 5,198 2,298 Sub-total 112,900 112,900 143,316 30,416 Revenue From Use of Money and Property: Interest 1,369,725 1,369,725 1,608,966 239,241 Rent & Concession: Field rentals 42,035 42,035 63,858 21,823 Building 65,323 65,323 21,299 (44,024) Pool 13,055 13,055 12,031 (1,024) Heritage Center 5,650 5,650 2,169 (3,481 ) Community gym 42,302 42,302 26,478 (15,824) Sub-total 1,538,090 1,538,090 1,734,801 196,711 68 City of Dublin Schedule of Budget Versus Actual Revenues by Sources General Fund, Continued For the fiscal year ended June 30, 2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) Intergovernmental Revenues - State: Motor vehicle in-lieu tax $ 291,000 $ 291,000 $ 413,075 $ 122,075 Off highway vehicle in-lieu tax 1,100 1,100 1,318 218 Homeowner's property tax relief 157,000 157,000 154,205 (2,795) Sub-total 449,100 449,100 568,598 119,498 Charges for Services: Zoning & subdivision fees 1,839,303 1,839,303 1,808,144 (31,159) Plan check & inspection fees 1,480,205 1,480,205 1,840,913 360,708 Fire plan check and inspection fees 314,480 314,480 387,010 72,530 Sale of maps and documents 17,000 17,000 9,617 (7,383) Special police services 30,000 30,000 23,041 (6,959) Fire service charge 159,000 159,000 159,816 816 Cultural arts 14,385 14,385 35,736 21,351 Park and Recreation Fees: Recreation instruction 150,668 150,668 123,854 (26,814) Preschool 88,540 88,540 85,231 (3,309) Special events 121,070 121,070 140,526 19,456 Playgrounds 185,986 185,986 195,631 9,645 Teens 70,119 70,119 49,346 (20,773) Adult sports 66,193 66,193 49,809 (16,384) Aquatics 199,485 199,485 186,573 (12,912) Senior 51,091 51,091 52,665 1,574 Youth sports 118,667 118,667 133,785 15,118 Heritage Center 2,150 2,150 760 (1,390) Building use insurance 7,230 7,230 3,896 (3,334) Zone 7 drainage fees 6,426 6,426 7,760 1,334 DUI program 1,200 1,200 (1,200) Booking fees recovery 11,300 72,048 66,207 (5,841) Solid waste fees 119,200 119,200 117,768 (1,432) Annexation charges 6,746 6,746 Internment 6,720 6,720 2,670 (4,050) Cable support fees 56,750 56,750 60,620 3,870 Sub-total 5,117,168 5,177,916 5,548,124 370,208 Other Revenues: Contributions 119,000 124,300 126,105 1,805 Miscellaneous 113,130 113,130 36,398 (76,732) Reimbursement - general 1,194,000 714,807 619,461 (95,346) Reimbursement - public damage 11,150 11,150 1,912 (9,238) Sub-total 1,437,280 963,387 783,876 (179,511) Total revenues by sources $ 41,319,646 $ 40,906,501 $ 43,560,925 $ 2,654,424 69 City of Dublin Schedule of Budget Versus Actual Departmental Expenditures General Fund For the fiscal year ended June 30, 2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) General Government: City Council $ 252,910 $ 262,910 $ 224,071 $ 38,839 City Manager 928,273 929,558 919,977 9,581 Central services 350,911 362,245 362,245 City Attorney 689,493 702,959 631,963 70,996 Administrative services 1,557,095 1,557,095 1,433,877 123,218 Building management 641,134 670,157 668,646 1,511 Insurance cost center 508,986 508,986 508,448 538 Election cost center 15,670 15,670 12,265 3,405 Nondepartmental 170,500 148,826 67,648 81,178 Sub-total 5,114,972 5,158,406 4,829,140 329,266 Public Safety: Police 9,882,259 9,882,946 9,837,842 45,104 Crossing guards 72,283 72,283 71,407 876 Animal control 266,362 266,362 208,370 57,992 Traffic signals and street lighting 17,240 17,240 8,588 8,652 Disaster preparedness 65,413 68,023 68,023 Fire services 8,156,645 8,270,645 8,207,944 62,701 Sub-total 18,460,202 18,577,499 18,402,174 175,325 Highways and Streets: Public works administration 738,575 738,575 723,562 15,013 Street maintenance 14,802 15,908 15,908 Street sweeping 149,207 149,207 140,784 8,423 Street tree maintenance 97,352 99,195 99,195 Street landscape maintenance 690,715 690,715 682,757 7,958 Sub-total 1,690,651 1,693,600 1,662,206 31,394 Health and Welfare: Waste management 63,125 73,125 71,475 1,650 Child care 15,000 15,000 15,000 Social services Housing programs Sub-total 78,125 88,125 86,475 1,650 Culture and Leisure: Library services 582,730 582,730 577,734 4,996 Cultural activities 159,718 167,668 125,102 42,566 Heritage Center 141,355 141,775 125,642 16,133 Cemetery operation 53,602 53,602 40,573 13,029 Park maintenance 1,532,409 1,532,409 1,450,065 82,344 Community cable television 62,999 62,999 61,809 1,190 Parks and community services 3,049,380 3,049,380 2,734,280 315,100 Parks and facilities management 280,993 284,993 261,929 23,064 Sub-total 5,863,186 5,875,556 5,377,134 498,422 70 City of Dublin Schedule of Budget Versus Actual Departmental Expenditures General Fund, Continued For the fiscal year ended June 30,2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) Community Development: Planning/building safety $ 5,311,515 $ 5,411,515 $ 4,814,407 $ 597,108 Engineering 2,209,633 2,304,692 2,304,692 Economic development 286,226 286,226 272,380 13,846 Sub-total 7,807,374 8,002,433 7,391,479 610,954 Capital Outlay: General improvements 1,020,815 1,109,450 633,849 475,601 Community improvements 799,839 1,156,103 403,110 752,993 Parks 2,436,144 3,375,375 2,630,021 745,354 Street construction and improvements 1,374,620 1,437,154 980,260 456,894 Sub-total 5,631,418 7,078,082 4,647,240 2,430,842 Total expenditures $ 44,645,928 $ 46,473,701 $ 42.395,848 $ 4,077,853 71 This page intentiona lly left blank. 72 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- Traffic Impact Fees Capital Projects Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 482,530 $ 482,530 $ 514,812 $ 32,282 Developer fees 6,117,000 6,117,000 2,438,758 (3,678,242) Total revenues 6,599,530 6,599,530 2,953,570 (3,645,960) EXPENDITURES: Current: General government 23,800 2,069,393 1,611,062 458,331 Capital outlay: Community improvement 36,771 36,771 36,771 Streets 18,694,364 21,557,662 1,698,801 19,858,861 Total expenditures 18,754,935 23,663,826 3,346,634 20,317,192 REVENUES OVER (UNDER) EXPENDITURES $ (12,155,405) $ (17,064,296) (393,064) $ 16,671,232 OTHER FINANCING SOURCES (USES): Transfer in 1,309,044 1,309,044 1,309,044 Transfer out (197,628) (197,628) 197,628 Total other financing sources (uses) 1,111,416 1,111,416 1,309,044 197,628 Net change in fund balance $ 1,111,416 $ 1,111,416 915,980 $ (195,436) FUND BALANCE: Beginning of year 17,322,394 End of year $ 18,238,374 73 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Public Facilities Fees Capital Projects Fund For the year ended June 30, 2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 56,409 $ 56,409 $ 342,193 $ 285,784 Developer fees 6,865,000 6,865,000 8,561,285 1,696,285 Total revenues 6,921,409 6,921,409 8,903,478 1,982,069 EXPENDITURES: Capital outlay: General Parks 13,550,239 13,724,422 6,253,153 7,471,269 Total expenditures 13,550,239 13,724,422 6,253,153 7,471,269 Net change in fund balance $ (6,628,830) $ (6,803,013) 2,650,325 $ 9,453,338 FUND BALANCE: Beginning of year 6,061,729 End of year $ 8,712,054 74 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Park Dedication Capital Projects Fund For the year ended June 30,2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 76,516 $ 76,516 $ 27,882 $ (48,634) Developer fees 2,664,000 2,664,000 (2,664,000) Total revenues 2,740,516 2,740,516 27,882 (2,712,634) EXPENDITURES: Capital outlay: Parks 32,535 32,535 32,535 Total expenditures 32,535 32,535 32,535 Net change in fund balance $ 2,707,981 $ 2,707,981 (4,653) $ (2,712,634) FUND BALANCE: Beginning of year 951,640 End of year $ 946,987 75 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Fire Impact Fees Capital Projects Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 10,428 $ 10,428 $ $ (10,428) Developer fees 194,000 194,000 293,103 99,103 Total revenues 204,428 204,428 293,103 88,675 EXPENDITURES: Generalgovennrnent 1,800 61,270 59,470 1,800 Capital outlay: General 616,923 616,923 Community improvement 5,000 8,020 8,020 Total expenditures 6,800 686,213 684,413 1,800 Net change in fund balance $ 197,628 $ (481,785) (391,310) $ 90,475 FUND BALANCE: Beginning of year (1,810,979) End of year $ (2,202,289) 76 NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. Special Criminal Activity Fund - Established to account for receipt of funds derived from asset forfeitures. Vehicle Abatement Fund - Established to account for the use of funds received from vehicle registration of Dublin residents for the towing of abandoned vehicles in city limits. Supplemental Law Enforcement (SLES/COPS) - Established to account for police expenditures funded by a State grant. Traffic Safety Fund - Established to account for the receipt of traffic fines and traffic safety expenditures. State Gas Tax Fund - Established to account for receipt of state gasoline taxes and expenditures. Office of Traffic Safety - Established to account for police personnel expenditures funded by a Federal Grant. Community Development Block Grant (CDBG) Fund - Used to account for grants and expenditures related to community development block grants. FEMA Fund - Established to account for expenditures funded with FEMA grants. State Park Bond Act - Established to account for park bond expenditures fund with State Park Bond Act Funds. Measure B Sales Tax Transportation Fund - Established to account for an Alameda County voter approved increase in sales tax used for improvements on streets and roads. State Transportation Improvement - Established to account for grant receipts from the state used for capital improvements on local streets. Stonn Water Runoff Fund - Established to account for the use of funds received from fees collected to mitigate pollution within the City without specific sources and to comply with Federal requirements for National Pollution Discharge Elimination System (NPDES). Measure D Recycling Fund - Established to account for the use of funds received which are levied by the County pursuant to a charter amendment and are provided for recycling and related activities. 77 NON-MAJOR GOVERNMENTAL FUNDS Garbage Service Fund - Established to account for the use of funds received which are levied by the county for garbage pick-up and removal and recycling services. Measure B Bike and Pedestrian - Established to account for an Alameda County voter approved increase in sales tax used for bike and pedestrian related projects. EMS Fund - Established to account for excise taxes received to fund the costs of providing Emergency Medical Services. Traffic Congestion Relief - Established to account for traffic congestion relief expenditures funded by a State grant. Housing and Noise Mitigation - Established to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of citywide affordable housing projects and noise mitigation projects in Eastern Dublin. Maintenance Districts - Established to account for revenue and related expenditures of lighting and landscape districts. 78 This page intentiollally left blank. 79 City of Dublin Combining Balance Sheet Non-Major Governmental Funds June 30, 2005 Special Revenue Funds Special Supplemental Criminal Vehicle Law Activity Abatement Enforcement Traffic Safety ASSETS Cash and investments $ 23,625 $ 108,083 $ 178 $ 170,071 Accounts receivable 6,395 24,140 Total assets $ 23,625 $ 114,478 $ 178 $ 194,211 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ $ $ $ 12,477 Contract retention payable Due to other funds Total liabilities 12,477 Fund Balances: Reserved for: Long-term receivables Pole painting Recycling programs Public safety programs 23,625 114,478 178 181,734 Street maintenance and construction Health and welfare programs Capital improvement projects Total fund balances 23,625 114,478 178 181,734 Total liabilities and fund balances $ 23,625 $ 114,478 $ 178 $ 194,211 80 Special Revenue Funds Office of Community State Measure B Traffic Development Park Sale Tax State Gas Tax Safety Block Grant FEMA Bond Act Transportation $ 2,040,118 $ $ $ $ $ 505,664 1,835 8,296 3,435 310,713 67,620 $ 2,040,118 $ 1,835 $ 8,296 $ 3,435 $ 310,713 $ 573,284 77,050 $ 5,913 $ $ $ 65,465 22,102 1,835 2,383 3,435 288,611 1,835 8,296 3,435 310,713 65,465 $ 77,050 $ 1,963,068 507,819 1,835 $ 8,296 $ 3,435 $ 310,713 $ 507,819 573,284 $ 1,963,068 2,040,118 $ (Continued) 81 City of Dublin Combining Balance Sheet Non-Major Governmental Funds, Continued June 30,2005 Special Revenue Funds State Storm Transportation Water Measure D Garbage Improvement Runoff Recycling Service ASSETS Cash and investments $ $ $ 516,382 $ 537,745 Accounts receivable 52,884 192,443 10,929 Total assets $ 52,884 $ $ 708,825 $ 548,674 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ $ $ 102,028 $ 534,780 Contract retention payable Due to other funds Total liabilities 102,028 534,780 Fund Balances: Reserved for: Long-term receivables Pole painting Recycling programs 606,797 Public safety programs Street maintenance and construction 52,884 Health and welfare programs 13,894 Capital improvement projects Total fund balances 52,884 606,797 13,894 Total liabilities and fund balances $ 52,884 $ $ 708,825 $ 548,674 82 Special Revenue Funds Maintenance Districts Measure B Traffic Housing and Bike and Congestion Noise Street Stagecoach Pedestrian EMS Relief Mitigation Lighting Landscape $ 91,901 $ 43,501 $ $ 8,409,925 $ 188,829 $ 53,197 20,923 38,000 4,596,534 1,588 $ 112,824 $ 81,501 $ $ 13,006,459 $ 190,417 $ 53,197 $ $ 43,501 $ $ 158,905 $ 17,161 $ 4,001 43,501 158,905 17,161 4,001 4,596,534 (Continued) 83 City of Dublin Combining Balance Sheet Non-Major Governmental Funds, Continued June 30, 2005 Special Revenue Funds Maintenance Districts Total Dougherty Santa Rita Dublin Street Non-Major Landscape & Assessment Lighting Governmental Lighting District 97-1 Assessment Funds ASSETS Cash and investments $ 72,415 $ 251,964 $ 95,943 $ 13,109,541 Accounts receivable 267 540 332 5,336,874 Total assets $ 72,682 $ 252,504 $ 96,275 $ 18,446,415 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 14,554 $ 36,839 $ 4,322 $ 1,076,996 Contract retention payable 22,102 Due to other funds 296,264 Total liabilities 14,554 36,839 4,322 1,395,362 Fund Balances: Reserved for: Long-term receivables 4,596,534 Pole painting 65,006 65,006 Recycling programs 606,797 Public safety programs 358,015 Street maintenance and construction 58,128 215,665 26,947 3,046,963 Health and welfare programs 8,264,914 Capital improvement projects 112,824 Total fund balances 58,128 215,665 91,953 17,051,053 Total liabilities and fund balances $ 72,682 $ 252,504 $ 96,275 $ 18,446,415 (Concluded) 84 This page intentionally left blank. 85 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds For the year ended June 30, 2005 Special Revenue Funds Special Supplemental Criminal Vehicle Law Activity Abatement Enforcement Traffic Safety REVENUES: Property taxes $ $ $ $ Taxes other than property Intergovernmental 29,843 100,000 Charges for service Interest 665 3,131 491 4,846 Fines and forfeitures 149,342 Developer fees Other revenue 7,003 Special assessments Total revenues 7,668 32,974 100,491 154,188 EXPENDITURES: Current: General government Public safety 5,640 100,313 146,169 Highways and streets Health and welfare Community development Capital outlay: Community improvement Parks Streets Total expenditures 5,640 100,313 146,169 REVENUES OVER (UNDER) EXPENDITURES 2,028 32,974 178 8,019 OTHER FINANCING SOURCES (USES): Transfer in Transfer out (15,147) Total other financing sources (uses) (15,147) NET CHANGE IN FUND BALANCES 2,028 17,827 178 8,019 FUND BALANCES: Beginning of year 21,597 96,651 173,715 End of year $ 23,625 $ 114,478 $ 178 $ 181,734 86 Special Revenue Funds Office of Community Traffic Development State Gas Tax Safety Block Grant FEMA $ $ $ $ 721,739 1,835 51,527 3,435 52,628 774,367 1,835 (1,835) (1,835) 405,015 $ 1,558,053 1,963,068 $ 51,527 3,435 (6,600) (6,600) (3,435) (3,435) $ $ 87 State Park Bond Act $ 310,713 310,713 $ Measure B Sale Tax Transportation $ 278,409 11,978 290,387 204,786 $ 303,033 507,819 (Continued) City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds, Continued For the year ended June 30, 2005 Special Revenue Funds State Storm Transportation Water Measure D Garbage Improvement Runoff Recycling Service REVENUES: Property taxes $ $ $ $ Taxes other than property Intergovernmental 1,177,101 199,288 Charges for service 1,075,179 Interest 2 16,832 10,527 Fines and forfeitures Developer fees Other revenue 163,480 Special assessments Total revenues 1,177,101 2 379,600 1,085,706 EXPENDITURES: Current: General government Public safety Highways and streets Health and welfare 311,804 1,072,160 Community development Capital outlay: Community improvement 14,850 Parks 11,004 Streets Total expenditures 337,658 1,072,160 REVENUES OVER (UNDER) EXPENDITURES 1,177,101 2 41,942 13,546 OTHER FINANCING SOURCES (USES): Transfer in Transfer out (1,309,044) (82) Total other financing sources (uses) (1,309,044) (82) OTHER FINANCING USES (131,943) (80) 41,942 13,546 FUND BALANCES: Beginning of year 184,827 80 564,855 348 End of year $ 52,884 $ $ 606,797 $ 13,894 88 87,599 87,599 $ 25,225 112,824 $ 251,091 251,091 9,608 9,608 28,392 38,000 $ (132) (132) 35,736 219,421 255,157 132 3,150,707 3,150,707 9,696,847 $ 12,847,554 $ 89 177,547 1,591 3,285 182,423 40,971 40,971 132,285 173,256 $ 50,917 794 51,711 10,071 10,071 39,125 49,196 (Continued) City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds, Continued For the year ended June 30, 2005 Special Revenue Funds Maintenance Districts Dougherty Santa Rita Dublin Street Non-Major Landscape & Assessment Lighting Governmental Lighting District 97-1 Assessment Funds REVENUES: Property taxes $ $ $ $ 112,532 Taxes other than property 364,478 Intergovernmental 2,743,481 Charges for service 1,075,179 Interest 1,406 4,973 2,940 454,759 Fines and forfeitures 149,342 Developer fees 3,068,191 Other revenue 171,073 Special assessments 89,560 334,759 40,033 744,100 Total revenues 90,966 339,732 42,973 8,883,135 EXPENDITURES: Current: General government 35,736 Public safety 53,987 761,755 Highways and streets 71,605 213,601 610,104 Health and welfare 1,648,312 Community development 795 781 1,485 13,140 Capital outlay: Community improvement 14,850 Parks 321,717 Streets 149,555 Total expenditures 72,400 214,382 55,472 3,555,169 REVENUES OVER (UNDER) EXPENDITURES 18,566 125,350 (12,499) 5,327,966 OTHER FINANCING SOURCES (USES): Transfer in Transfer out (1,336,275) Total other financing sources (uses) (1,336,275) OTHER FINANCING USES 18,566 125,350 (12,499) 3,991,691 FUND BALANCES: Beginning of year 39,562 90,315 104,452 13,059,362 End of year $ 58,128 $ 215,665 $ 91,953 $ 17,051,053 (Concluded) 90 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Special Criminal Activity Special Revenue Fund For the year ended June 30, 2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 546 $ 546 $ 665 $ 119 Other revenue 2,500 2,500 7,003 4,503 Total revenues 3,046 3,046 7,668 4,622 EXPENDITURES: Current: Public safety 5,160 5,640 5,640 Total expenditures 5,160 5,640 5,640 Net change in fund balance $ (2,114) $ (2,594) 2,028 $ 4,622 FUND BALANCE: Beginning of year 21,597 End of year $ 23,625 91 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Vehicle Abatement Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 23,000 $ 23,000 $ 29,843 $ 6,843 Interest 3,394 3,394 3,131 (263) Total revenues 26,394 26,394 32,974 6,580 OTHER FINANCING (USES): Transfers out (26,394) (26,394) (15,147) 11,247 Total other financing (uses) (26,394) (26,394) (15,147) 11,247 Net change in fund balance 52,788 52,788 17,827 (4,667) FUND BALANCE: Beginning of year 96,651 End of year $ 114,478 92 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Supplemental Law Enforcement Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 100,000 $ 100,000 $ 100,000 $ Interest 491 491 Total revenues 100,000 100,000 100,491 491 EXPENDITURES: Current: Public safety 100,000 100,313 100,313 Total expenditures 100,000 100,313 100,313 Net change in fund balance $ $ (313) 178 $ 491 FUND BALANCE: Beginning of year End of year $ 178 93 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Traffic Safety Special Revenue Fund For the year ended June 30, 2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 4,417 $ 4,417 $ 4,846 $ 429 Fines and forfeitures 164,000 164,000 149,342 (14,658) Total revenues 168,417 168,417 154,188 (14,229) EXPENDITURES: Current: Public safety 189,096 189,096 146,169 42,927 Total expenditures 189,096 189,096 146,169 42,927 Net change in fund balance $ (20,679) $ (20,679) 8,019 $ 28,698 FUND BALANCE: Beginning of year 173,715 End of year $ 181,734 94 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- State Gas Tax Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 733,400 $ 733,400 $ 721,739 $ (11,661 ) Interest 43,908 43,908 52,628 8,720 Total revenues 777,308 777,308 774,367 (2,941) EXPENDITURES: Current: Public safety 28,500 28,500 27,008 1,492 Highways and streets 301,750 301,750 272,390 29,360 Community development 6,000 6,000 6,000 Capital outlay: Streets 410,510 452,511 63,954 388,557 Total expenditures 746,760 788,761 369,352 419,409 Net change in fund balance $ 30,548 $ (11,453) 405,015 $ 416,468 FUND BALANCE: Beginning of year 1,558,053 End of year $ 1,963,068 95 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Office of Traffic Safety Special Revenue Fund For the year ended June 30, 2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 11,999 $ 11,999 $ 1,835 $ (10,164) Total revenues 11,999 11,999 1,835 (10,164) EXPENDITURES: Current: Public safety 11,999 11,999 11,999 Total expenditures 11,999 11,999 11,999 REVENUES OVER (UNDER) EXPENDITURES 1,835 (22,163) OTHER FINANCING (USES): Transfers out (1,835) (1,835) Total other financing (uses) (1,835) (1,835) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES $ $ $ FUND BALANCE: Beginning of year End of year $ 96 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - CDBG Special Revenue Fund For the year ended June 30, 2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 81,318 $ 81,318 $ 51,527 $ (29,791) Total revenues 81,318 81,318 51,527 (29,791) EXPENDITURES: Current: Health and welfare 44,927 44,927 44,927 Capital outlay: Community improvement 29,791 29,791 29,791 Total expenditures 74,718 74,718 44,927 29,791 REVENUES OVER (UNDER) EXPENDITURES 6,600 6,600 6,600 OTHER FINANCING (USES): Transfers out (6,600) (6,600) (6,600) Total other financing (uses) (6,600) (6,600) (6,600) Net change in fund balance $ $ $ FUND BALANCE: Beginning of year End of year $ 97 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - FEMA Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ $ $ 3,435 $ 3,435 Total revenues 3,435 3,435 OTHER FINANCING (USES): Transfers out (3,435) (3,435) Total other financing (uses) (3,435) (3,435) Net change in fund balance $ $ $ FUND BALANCE: Beginning of year End of year $ 98 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - State Park Bond Act Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) EXPENDITURES: Current: Intergovernmental $ 310,713 $ 310,713 $ 310,713 $ Total expenditures 310,713 310,713 310,713 EXPENDITURES: Capital outlay: Parks 310,713 310,713 310,713 Total expenditures 310,713 310,713 310,713 Net change in fund balance $ $ $ FUND BALANCE: Beginning of year End of year $ 99 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Measure B Sales Tax Transportation Special Revenue Fund For the year ended June 30, 2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Taxes other than property $ 256,700 $ 256,700 $ 278,409 $ 21,709 Interest 10,158 10,158 11,978 1,820 Total revenues 266,858 266,858 290,387 23,529 EXPENDITURES: Capital outlay: Streets 256,700 276,560 85,601 190,959 Total expenditures 256,700 276,560 85,601 190,959 Net change in fund balance $ 10,158 $ (9,702) 204,786 $ 214,488 FUND BALANCE: Beginning of year 303,033 End of year $ 507,819 100 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- State Transportation Improvement Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ $ 1,177,100 $ 1,177,101 $ 1 Total revenues 1,177,100 1,177,101 1 OTHER FINANCING (USES): Transfers out (1,309,044) $ (1,309,044) Total other financing (uses) (1,309,044) (1,309,044) Net change in fund balance $ $ (131,944) (131,943) $ 1 FUND BALANCE: Beginning of year 184,827 End of year $ 52,884 101 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Storm Water Runoff Special Revenue Fund For the year ended June 30, 2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ $ $ 2 $ 2 Total revenues 2 2 OTHER FINANCING (USES): Transfers out (82) (82) Total other financing (uses) (82) (82) Net change in fund balance $ $ (80) $ (80) FUND BALANCE: Beginning of year 80 End of year $ 102 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Measure D Recycling Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 178,279 $ 178,279 $ 199,288 $ 21,009 Interest 16,020 16,020 16,832 812 Other revenue 158,000 158,000 163,480 5,480 Total revenues 352,299 352,299 379,600 27,301 EXPENDITURES: Current: Health and welfare 294,584 350,474 311,804 38,670 Capital outlay: Community improvement 15,137 15,137 14,850 287 Parks 11,004 11,004 11,004 Total expenditures 320,725 376,615 337,658 38,957 Net change in fund balance $ 31,574 $ (24,316) 41,942 $ 66,258 FUND BALANCE: Beginning of year 564,855 End of year $ 606,797 103 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- Garbage Service Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Charges for services $ 1,056,723 $ 1,056,723 $ 1,075,179 $ 18,456 Interest 6,633 6,633 10,527 3,894 Total revenues 1,063,356 1,063,356 1,085,706 22,350 EXPENDITURES: Current: Health and welfare 1,051,660 1,072,160 1,072,160 Total expenditures 1,051,660 1,072,160 1,072,160 Net change in fund balance $ 11,696 $ (8,804) 13,546 $ 22,350 FUND BALANCE: Beginning of year 348 End of year $ 13,894 104 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Measure B Bike and Pedestrian Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Taxes other than property $ 79,800 $ 79,800 $ 86,069 $ 6,269 Interest 1,560 1,560 1,530 (30) Total revenues 81,360 81,360 87,599 6,239 EXPENDITURES: Capital outlay: Streets Total expenditures Net change in fund balance $ 81,360 $ 81,360 87,599 $ 6,239 FUND BALANCE: Beginning of year 25,225 End of year $ 112,824 105 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - EMS Special Revenue Fund For the year ended June 30, 2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Property taxes $ 111,049 $ 111,049 $ 112,532 $ 1,483 Intergovernmental 149,508 149,508 148,000 (1,508) Interest 2,612 2,612 167 (2,445) Total revenues 263,169 263,169 260,699 (2,470) EXPENDITURES: Current: Public safety 287,626 287,626 251,091 36,535 Total expenditures 287,626 287,626 251,091 36,535 Net change in fund balance $ (24,457) $ (24,457) 9,608 $ 34,065 FUND BALANCE: Beginning of year 28,392 End of year $ 38,000 106 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Traffic Congestion Relief Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ $ $ 132 $ 132 Total revenues 132 132 OTHER FINANCING (USES): Transfers out (132) (132) Total other financing (uses) (132) (132) Net change in fund balance $ $ $ FUND BALANCE: Beginning of year End of year $ 107 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- Housing and Noise Mitigation Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 184,271 $ 184,271 $ 337,083 $ 152,812 Developer fees 2,791,900 2,791,900 3,068,191 276,291 Other revenue 590 590 Total revenues 2,976,171 2,976,171 3,405,864 429,693 EXPENDITURES: Current: General government 29,700 35,736 35,736 Health and welfare 809,412 821,358 219,421 601,937 Total expenditures 839,112 857,094 255,157 601,937 Net change in fund balance $ 2,137,059 $ 2,119,077 3,150,707 $ 1,031,630 FUND BALANCE: Beginning of year 9,696,847 End of year $ 12,847,554 108 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Street Lighting Special Revenue Fund For the year ended June 30, 2005 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 3,648 $ 3,648 $ 4,198 $ 550 Other revenue 5,000 5,000 (5,000) Special assessments 220,480 220,480 219,196 (1,284) Total revenues 229,128 229,128 223,394 (5,734) EXPENDITURES: Current: General government: Public safety 225,749 225,749 177,547 48,202 Highways and streets 1,436 1,591 1,591 Community development 6,250 6,250 3,285 2,965 Total expenditures 233,435 233,590 182,423 51,167 Net change in fund balance $ (4,307) $ (4,462) 40,971 $ 45,433 FUND BALANCE: Beginning of year 132,285 End of year $ 173,256 109 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Stagecoach Landscape Special Revenue Fund For the year ended June 30, 2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 1,172 $ 1,172 $ 1,230 $ 58 Special assessments 60,669 60,669 60,552 (117) Total revenues 61,841 61,841 61,782 (59) EXPENDITURES: Current: Highways and streets 58,974 59,267 50,917 8,350 Community development 1,250 1,250 794 456 Total expenditures 60,224 60,517 51,711 8,806 Net change in fund balance $ 1,617 $ 1,324 10,071 $ 8,747 FUND BALANCE: Beginning of year 39,125 End of year $ 49,196 110 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Dougherty Landscape and Lighting Special Revenue Fund For the year ended June 30,2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 1,436 $ 1,436 $ 1,406 $ (30) Special assessments 89,041 89,041 89,560 519 Total revenues 90,477 90,477 90,966 489 EXPENDITURES: Current: Highways and streets 73,799 74,666 71,605 3,061 Community development 1,250 1,250 795 455 Total expenditures 75,049 75,916 72,400 3,516 Net change in fund balance $ 15,428 $ 14,561 18,566 $ 4,005 FUND BALANCE: Beginning of year 39,562 End of year $ 58,128 111 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- Santa Rita Assessment District 97-1 Special Revenue Fund For the year ended June 30, 2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 4,375 $ 4,375 $ 4,973 $ 598 Special assessments 225,812 225,812 334,759 108,947 Total revenues 230,187 230,187 339,732 109,545 EXPENDITURES: Current: Highways and streets 238,800 238,800 213,601 25,199 Community development 1,250 1,250 781 469 Total expenditures 240,050 240,050 214,382 25,668 Net change in fund balance $ (9,863) $ (9,863) 125,350 $ 135,213 FUND BALANCE: Beginning of year 90,315 End of year $ 215,665 112 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Dublin Street Lighting Assessment Special Revenue Fund For the year ended June 30, 2005 Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 2,278 $ 2,278 $ 2,940 $ 662 Special assessments 43,587 43,587 40,033 (3,554) Total revenues 45,865 45,865 42,973 (2,892) EXPENDITURES: Current: Public safety 80,339 80,339 53,987 26,352 Community development 2,750 2,750 1,485 1,265 Total expenditures 83,089 83,089 55,472 27,617 Net change in fund balance $ (37,224) $ (37,224) (12,499) $ 24,725 FUND BALANCE: Beginning of year 104,452 End of year $ 91,953 113 This page intentionally left blank. 114 INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost reimbursement basis. The City has established four of these types of funds: Equipment Replacement, Fire Equipment and Station Replacement, Building Replacement, and Retiree Health Care. 115 City of Dublin Combining Statement of Net Assets Internal Service Funds June 30, 2005 Fire Equipment Equipment and Station Building Retiree Replacement Replacement Replacement Health Care Total ASSETS Current assets: Cash and investments $ 1,942,533 $ 1,199,712 $ 1,502,415 $ 4,343,999 $ 8,988,659 Receivables: Accounts 2,077 2,077 Total current assets 1,944,610 1,199,712 1,502,415 4,343,999 8,990,736 Noncurrent assets: Land 6,842,037 6,842,037 Construction in progress 6,628,575 6,628,575 Buildings and improvements 43,804,365 43,804,365 Machinery and equipment 2,190,622 2,940,415 428,100 5,559,137 Less: accumulated depreciation (1,715,568) (1,208,667) (9,907,028) (12,831,263) Total noncurrent assets 475,054 1,731,748 47,796,049 50,002,851 Total assets 2,419,664 2,931,460 49,298,464 4,343,999 58,993,587 LIABILITIES Current liabilities: Accounts payable 40,202 4,342 2,219 15,210 61,973 Total liabilities 40,202 4,342 2,219 15,210 61,973 NET ASSETS Invested in capital assets 475,054 1,731,748 47,796,049 50,002,851 Unrestricted 1,904,408 1,195,370 1,500,196 4,328,789 8,928,763 Total net assets $ 2,379,462 $ 2,927,118 $ 49,296,245 $ 4,328,789 $ 58,931,614 116 City of Dublin Combining Statement of Revenues, Expenses and Changes in Net Assets Internal Service Funds For the year ended June 30, 2005 Fire Equipment Equipment and Station Building Retiree Replacement Replacement Replacement Health Care Total OPERATING REVENUES: Charges for services $ 797,758 $ 211,695 $ 127,196 $ 505,792 $ 1,642,441 Other revenue 47,752 4,794,235 4,841,987 Total operating revenues 845,510 211,695 4,921,431 505,792 6,484,428 OPERATING EXPENSES: Supplies and services 301,425 21,742 15,475 145,396 484,038 Depreciation 449,293 205,210 1,388,720 2,043,223 Total operating expenses 750,718 226,952 1,404,195 145,396 2,527,261 Operating income (loss) 94,792 (15,257) 3,517,236 360,396 3,957,167 NONOPERATING REVENUES: Interest income 50,826 33,422 41,463 119,697 245,408 Change in net assets 145,618 18,165 3,558,699 480,093 4,202,575 NET ASSETS: Beginning of year 2,233,844 2,908,953 45,737,546 3,848,696 54,729,039 End of year $ 2,379,462 $ 2,927,118 $ 49,296,245 $ 4,328,789 $ 58,931,614 117 City of Dublin Combining Statement of Cash Flows Internal Service Funds For the year ended June 30, 2005 Fire Equipment Equipment and Station Building Retiree Replacement Replacement Replacement Health Care Total CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers $ 807,869 $ 211,695 $ 127,196 $ 505,792 $ 1,652,552 Payments to suppliers (280,535) (34,883) (13,808) (145,408) (474,634) Other 47,752 4,794,235 4,841,987 Net cash provided (used) by operating activities 575,086 176,812 4,907,623 360,384 6,019,905 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital assets purchases (294,656) (445,268) (4,794,235) (5,534,159) Net cash provided (used) for capital and related financing activities (294,656) (445,268) (4,794,235) (5,534,159) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 50,826 33,422 41,463 119,697 245,408 Net cash provided (used) for investing activities 50,826 33,422 41,463 119,697 245,408 Net increase (decrease) in cash and cash equivalents 331,256 (235,034) 154,851 480,081 731,154 CASH AND EQUIVALENTS: Beginning of year 1,611,277 1,434,746 1,347,564 3,863,918 8,257,505 End of year $ 1,942,533 $ 1,199,712 $ 1,502,415 $ 4,343,999 $ 8,988,659 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss) $ 94,792 $ (15,257) $ 3,517,236 $ 360,396 $ 3,957,167 Adjustments to reconcile operating income (loss) to cash flows from operating activities: Depreciation 449,293 205,210 1,388,720 2,043,223 Net effect of changes in: Accounts receivable 10,111 10,111 Accounts payable 20,890 (13,141) 1,667 (12) 9,404 Net cash provided (used) by operating activities $ 575,086 $ 176,812 $ 4,907,623 $ 360,384 $ 6,019,905 118 AGENCY FUND Agency Funds are used to account for assets held by the City in a fiduciary capacity for individuals, governmental entities and others. These funds carry out the specifications of trust indentures, ordinance or other regulations. Dublin Boulevard Extension Assessment District Fund - To account for the special assessment established to fund the improvements to Dublin Boulevard. 119 City of Dublin Statement of Changes in Net Assets Agency Fund For the fiscal year ended June 30, 2005 Balance Balance July 1, 2004 Additions Deletions June 30, 2005 Dublin Boulevard Extension Assessment District Assets: Cash and investments $ 198,608 $ 230,944 $ (232,570) $ 196,982 Restricted cash and investments 172,779 2,948 175,727 Total assets $ 371,387 $ 233,892 $ (232,570) $ 372,709 Liabilities: Due to bondholders $ 371,387 $ 233,892 $ (232,570) $ 372,709 Total liabilities $ 371,387 $ 233,892 $ (232,570) $ 372,709 120 CITY OF DUBLIN ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Utility State Unsecured Fiscal Year Secured Property Board Roll Property 1995-1996 $ 1,434,712,474 $ 4,024,540 $ 94,522,217 1996-1997 1,519,119,484 4,028,118 115,801,947 1997-1998 1,565,651,517 2,395,606 114,868,090 1998-1999 1,782,911,790 2,395,606 115,129,665 1999-2000 2,220,043,442 2,395,606 131,207,312 2000-2001 2,869,933,657 2,636,107 132,417,225 2001-2002 3,566,460,426 2,636,107 155,881,185 2002-2003 4,137,814,381 1,016,256 169,574,548 2003-2004 4,679,462,555 1,016,256 190,848,472 2004-2005 5,282,772,323 1,016,256 223,993,575 Total $ 1,533,259,231 1,638,949,549 1,682,915,213 1,900,437,061 2,353,646,360 3,004,986,989 3,724,977,718 4,308,405,185 4,871,327,283 5,507,782,154 Source: Alameda County Office of the Auditor-Controller (All figures shown are net of exemptions.) $6.0 $5.0 - In c $4.0 .2 in c $3.0 - f .!! $2.0 '0 c $1.0 $0.0 Assessed Value of Taxable Property 2)CO ~ ~CO ~<?, ,~,,,Q) "Q) "Q) "Q) ~J Kf ~: R:f ,,<?,Q) ,,<?,OJ ,,<?'<?' ,,<?,OJ ~~ R5 ~ro R)~ ro ~I;:) R5 p.? <?,Q) " ~ R5 r.? R)I;:) l)i R)I;:)" R)I;:)'V R)I;:)~ &::{ ro '" ro a: l)i r6'<S r6'1;:) r6'1;:) Fiscal Years 121 CITY OF DUBLIN SCHEDULE OF 1993 CERTIFICATES OF PARTICIPATION COVERAGE FISCAL YEARS ENDED 1994-1999 Debt Service Requirement Direct Operating Net Revenue Fiscal Gross Expenses Available for Year Revenue (1) (2) Debt Service Principal Interest (3) Total Coverage 1993-1994 $ 1,564,715 $ 12,874 $ 1,551,841 $ 910,000 $ 622,816 $ 1,532,816 101.24% 1994-1995 1,565,843 18,821 1,547,022 645,000 908,744 1,553,744 99.57% 1995-1996 1,594,060 18,518 1,575,542 705,000 916,027 1,621,027 99.70% 1996-1997 1,592,322 4,211 1,588,111 730,000 887,518 1,617,518 98.18% 1997-1998 1,598,447 8,385 1,590,062 765,000 856,351 1,621,351 98.07% 1998-1999 1,671,633 518 1,671,115 920,000 935,707 1,855,707 90.05% (1) Gross Revenue includes Facilities Rent and Interest Income. (2) Direct Operating Expenses excludes Interest and Depreciation. (3) Excludes Amortization of Bond Discount. Source: City of Dublin Annual Financial Report Note: Available reserves from the General Fund were used to retire the remaining $13,850,000 outstanding on this bond issue on February 1,1999. 122 99.677% $ 38,331,278 0.0770% $ 33,279 0.2700% $ 219,794 2.3140% $ 3,544,585 100.0000% $ 1,331,000 $ 43,459,936 3.894% $ 20,445,408 3.894% $ 13,889,827 3.894% $ 107,280 0.003% $ 647 8.511% $ 761,309 0.077% $ 1,359 $ 35,205,830 $ 78,665,766 0.89% 1.78% CITY OF DUBLIN COMPUTATION OF DlREcr AND OVERLAPPING DEBT June 30, 2005 Percentage Applicable to City of Dublin Jurisdiction OVERLAPPING TAX AND ASSESSMENT DEBT: Dublin Joint Unified School District Caslro Valley Unified School Districl Livermore Valley Joint Unified School District East Eay Regional Park District City of Dublin 1915 Act Bonds TorAL OVERLAPPING TAX AND ASSESSMENT DEBT DIREcr AND OVERLAPPING GENERAL FUND OBLIGATION DEBT: Alameda County General Fund Obligations Alameda County Pension Obligations Alameda Cormty Superintendent of Schools Certificates of Participation Alameda - Contra Costa Transit District Certificates of Participation Chabot-Las Pasitas Community College District Certificates of Participation Castro Valley Unified School District Certificates of Participation TorAL DIREC! AND OVERLAPPING GENERAL FUND OBLIGATION DEBT COMBINED TOTAL DEBT Ratios to Assessed Valuation: Total Overlapping Tax and Assessment Debt. Combined Total Debt STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/2005: $0 (1) Excludes tax and revenue anticipation notes; revenue, mortgage revenue and tax allocation bonds, and non-bonded capital lease obligations. Source: California Municipal Statistics, Inc. Direct and Overlapping Debt Alameda County 44% 123 Net Debt Outstanding Applicable 10 City of Dublin CITY OF DUBLIN COMPUTATION OF LEGAL DEBT MARGIN June 30, 2005 Assessed valuation: Assessed value Add back exempt real property $ 5,507,782,154 $ 72,612,237 Total Assessed Value $ 5,580,394,391 Legal debt margin: Debt limitation -15 percent of total assessed value $ 837,059,159 Percent of debt limit authorized and issued 0.00% Source: City of Dublin Finance Department Excludes 1915 Act Bonds since they are not General Obligation Debt of the City of Dublin. 124 CITY OF DUBLIN DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS Rank in Alameda Oty Size of Oty County Population % California Fiscal Year Population Population of County Oties 1995-1996 26,267 1,356,102 1.94% 226 1996-1997 25,544 1,371,793 1.86% 225 1997-1998 26,725 1,401,227 1.91% 224 1998-1999 28,707 1,433,309 2.00% 222 1999-2000 32,519 1,434,162 2.32% 205 2000-2001 32,570 1,474,143 2.21% 209 2001-2002 33,520 1,486,618 2.25% 209 2002-2003 35,545 1,496,218 2.38% 204 2003-2004 38,330 1,494,493 2.56% 193 2004-2005 39,931 1,507,500 2.65% 192 Source: State of California Department of Finance - Population Research Unit Note: The City's Population for Fiscal Year 1999-2000 was adjusted downward based upon the 2000 U.s. Census City Population 45,000 Q) .!:::! en c o .. .!!! ::s Q, o D.. 35,000 40,000 30,000 25,000 20,000 P:J~ ~ P:JCO "Q) "Q) "Q) ~ !O (!...' "OjQ) "OjOJ "OjOj P:JOj s::>c;:) "Q) n(5 R:f P:J'V Oj~ OjQ) " " ~c;:)" ~c;:)rv ~c;:)0;) ~? ~ro a? ~(5 ~c;:) ~c;:) &t s::>~ n(5 n(5 r.>V b(V rvc;:)c;:) rvc;:)1\j Fiscal Year 125 CITY OF DUBLIN GOVERNMENTAL EXPENDITURES BY FUNCTION ALL GOVERNMENTAL FUND IYPES LAST TEN RSCAL YEARS General Health and Highways and Community Culture and Fiscal Year Government Facilities Rents Public Safety Welfare Streets Development Leisure Capital Outlay 1995-1991) $ 1,392,265 $ 1,604.480 $ 6,986,737 $ 1,183,933 $ 1,043,009 $ 1,832,754 $ 1.847,110 $ 3,338,607 1996-1997 1,691,724 1,496,816 6,968,912 734,423 1,059,275 1,930,723 2.1J07,715 2,552,912 1997-1998 1,761,818 1.493,348 8,566,630 764,979 1,090,290 2,824,242 2,172,422 2,219,989 1998-1999 2,139,738 1,614,407 9,145,346 851,699 1.,240,171 3,664,025 2,248,581 4,617,733 1999-2000 2,274,914 9,892,983 893,254 1,504.050 4,138,916 2,827,621 13,052,015 2000-2001 3,085,725 10,960,642 1,139,399 1,446,ll53 4,572,981 3,332,421 12,077,482 2001-2002 3.929,919 12.523,197 1,196,457 1,546,347 4,678,311 4,012,730 16,405,354 2002-2003 4,363,241 13,948,110 1,352,083 6,080,944 5,399,648 4,611,564 29,538,610 2003-2l:lM 6.193,881 17,222,501 3,762,260 2,072,806 6,363,727 5,098,102 15,376,691 2004-2005 6,535,408 19,163,929 1,734,787 2,272.310 7.404,619 5,377,134 13,779,565 Source: City of Dublin Annual Financial Report IiI -- _5 ~:::'~:=~f':~~~:.i~i"'~r'a~ ."~~ ]~ .~~.~ '; ~ !O (\ !b lU ~oSfJ ~O;,O;, ~O;,Oj o ~ fO (\' ~ O;,Oj ~O;,Oj ~O;,O;, 2>0;, ~~ ~~~ ~~t),. ~~'"':J ~~ ~~<o gf ~Oj P.l't),.<:S ~? "''); a? ~'); bt'); ~O;,Oj ~O;,Oj ~<:s t),.~~ ~~ ~~ ~(j Fiscal Years Principal Total $ 19,228,895 18,442,500 20,893,718 25,521,700 251,004 34,834,757 301,004 36,915,707 251,004 44,543,319 65,294,200 56,089,%8 56,267,752 o Principal 11II Capital Outlay 11II Culture and Leisure !!J Community Development trl Highways and Streets 11II Health and Welfare 11II Public Safety 11II Facilities Rents 11III General Government 126 CITY OF DUBLIN PRINCIPAL PROPERTY T AXP AYERS (Based on Secured 2004/2005 Tax Roll) JUNE 30, 2005 Taxpayer Assessed Value Percent of Total Assessed Value 1 Toll California II/Toll Dublin LLC 2 Shops at Waterford LLC 3 BIT Holdings Fifty Six Inc. 4 Acre Dublin LLC 5 Chang S. Lin, Et. Al 6 Bere Island Properties I LLC Et. AI. 7 Bit Investment Eleven Limited Partnership 8 Capital Pacific Security Trust 9 Cisco Systems Inc. 10 Wells Reit II - Emerald Point $165,032,205 117,592,744 114,492,789 105,376,216 99,325,001 76,351,399 64,650,000 63,223,524 56,069,435 49,387,612 2.96% 2.11% 2.05% 1.89% 1.78% 1.37% 1.16% 1.13% 1.00% 0.89% $911,500,925 16.33% Source: HDL Coren & Cone, Alameda County Assessor Combined Tax Rolls Top Ten Property Taxpayers Assessed Value BIT Holdings Fifty Six Inc. $114,492,789 Bere Island Properties I LLC Et. AI. Chang S. Lin, Et. AI $76,351,399 $99,325,001 Bit Investment Eleven Limited Partnership $64,650,000 Capital Pacific Security Trust $63,223,524 Cisco Systems Inc. $56,069,435 Shops at Waterford LLC $117,592,744 Toll California II/Toll Dublin LLC $165,032,205 Wells Reit II - Emerald Point $49,387,612 127 CITY OF DUBLIN PROPERTY TAX RATES ALL DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Basic County Bay Area Chabot - Alameda Total Rate Wide Levy School Flood Zone Rapid East Bay Las Positas County Per $1000 Fiscal Year ($1/$100) Districts Stale Bonds Transit Parks Bond College Library Valuation 1995-19% 1.0000 0.0648 0.0191 0.0230 0.0094 0.0057 1.1220 19%-1997 1.0000 0.0858 0.0187 0.0225 0.0080 0.0056 1.1406 1997-1998 1.0000 0.0831 0.0178 0.0220 0.0081 0.0049 1.1359 1998-1999 1.0000 0.0727 0.0163 0.0167 0.0092 0.0057 1.1206 1999-2000 1.0000 0.0534 0.0145 0.006S 1.0744 2000-2001 1.0000 0.0534 0.0145 0.0065 1.0744 2001-2002 1.0000 0.0376 0.0158 0.0065 1.0599 2002-2003 1.0000 0.0429 0.0145 0.0057 1.0631 2003-2004 1.0000 0.0429 0.0145 0.0057 1.0631 2004-2005 1.0000 0.0399 0.0114 0.0057 0.0186 1.0756 Source: Alameda County Office of The Auditor-Controller Rates Shown for Tax Code Area 26-001 which represents the largest portion of property taxes collected in the City. s::: o ; CG :::::I - CG > o o q or- tR- ... Q) a. Q) - CG [t: Property Tax Rates $1.16 $1.14 $1.12 $1.10 $1.08 $1.06 $1.04 $1.02 $1.00 pjCO ~ pj'b pj<?) ,,<?5 ,,<?5 ,,<?5 ,,<?5 ~ ro ~' R1 ,,<?)OJ ,,<?)OJ ,,<?)<?) ,,<?)OJ ~~~ ~~" ~~~ ~~f"':J ~~ ~~<o g{~ ~~ ",rp o;~ ~~ ~~ ,,<?)<?5 f>'5 f>~ f>~ f>~ f>(;:; Fiscal Year 128 CITY OF DUBLIN PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Percent of Total Property Tax Total Property Tax Collected to Fiscal Year Levied Tax Collected Tax Levied 1995-1996 $ 3,833,915 $ 3,614,671 94.28% 1996-1997 3,921,703 3,713,665 94.70% 1997-1998 4,184,413 4,074,407 97.37% 1998-1999 4,798,501 4,517,234 94.14% 1999-2000 5,765,531 5,499,897 95.39% 2000-2001 7,333,215 6,959,769 94.91 % 2001-2002 9,187,641 8,655,872 94.21 % 2002-2003 10,732,663 10,142,650 94.50% 2003-2004 11,858,495 11,826,609 99.73% 2004-2005 12,626,880 12,354,685 97.84% Source: HDL Coren & Cone and Alameda County Office of the Auditor-Controller Property Tax Collection $13 $12 ________mmmm._.._________...m____mm_mm__~___mm_______.........~_m__m__~_~m~_m~.....__mm____mm__ $11 ~10 .2 $9 i $8 .5 $7 -;$6 ~ $5 8 $4 $3 PJro ~ "Q5 "Q5 ~ [cf "OJQ5 "OJOJ PJ'O PJOJ ~J,Q5 R:f "Q5 "OJOJ "OJOJ ~~ ~ g{~ OJQ5 " ~~" ~~fl., ~~n;, Rf~ "'~ n? rf>(;S rf>~ rf>~ ~ ~ [l;frv ~~ rv ~~ ~ ~~ ~Cj rv Fiscal Year 129 CITY OF DUBLIN PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Total Number Commercial Residential of Permits Construction Construction Fiscal Year Issued Value Value Bank Deposits * 1995-1996 814 $ 4,927,911 $ 15,638,274 $ 568,924,000 1996-1997 790 6,855,980 64,610,527 611,507,000 1997-1998 1020 29,159,270 83,205,153 641,921,000 1998-1999 1552 93,428,185 135,438,240 684,749,000 1999-2000 2521 107,242,721 180,258,804 715,313,000 2000-2001 1828 113,618,557 155,286,401 809,281,000 2001-2002 1015 63,476,079 123,149,627 900,670,000 2002-2003 1157 46,448,163 178,361,169 980,220,300 2003-2004 1154 18,575,621 242,563,776 488,343,000 2004-2005 1275 56,481,612 283,817,542 566,441,000 Source: Findley Reports, me. and City of Dublin Building Department Status Reports * Bank Deposits represents the amount of cash deposits held by financial institutions within the City of Dublin. Property Value - Commercial vs Residential $300 ,;..~ ~ ~....,;;'.... --.. .. _.."',,;,;;:....; ';'';'',0;.';'';'_.. - .. '''''..'' ..'------ - - -.......;. - .. - - ..-- ................... -...... .. .. -...-,. "'--- -........ - - --- ----.-. - $250 l/) l: .2 $200 - - .- :E l: $150 - - ~ $100 .!!! '0 $50 c . Commercial -.- Residential $0 OjOjfO OjOj'\ OjOj'O OjOjOj ~~\:) ~~" ~\:)'l" ~\:)f">;) ~~ \:)\:)<o ~ t\:, Kf t\:, ~,t\:, fCf t\:, PJ;p ~'"P ",'"P a? ~'"P \)('"P "OjOJ "OjOJ "OjOj "OjOJ "OjOJ 'l,,\:)'5 'l,,\:)\:) 'l,,\:)\:) 'l,,\:)\:) 'l,,\:)(j Fiscal Year 130 CITY OF DUBLIN GENERAL GOVERNMENTAL REVENUES BY SOURCE ALL GOVERNMENTAL FUND TYPES LAST TEN FISCAL YEARS Property Taxes / Developer Fees Special Licenses and Inter- and Charges for Use of Money Fines / Other Fiscal Year Assessments Sales Taxes Other Taxes Permits Governmental Services and Property Revenue Total 1995-1996 $ 4,185,731 $ 6,760,413 $ 1.006,729 $ 466,199 $ 3,674,119 $ 3,596,000 $ 1,376,647 $ 180.130 $ 21,245,968 1996-1997 4,164.884 7,108,598 1.280,578 1.1192,183 2,091,210 2,789,236 1,505,788 309,361 20,341,838 1997-1998 4,628,201 8.1125,448 1,538,247 1,398,677 2,159,609 4,045,063 1,670,875 598,977 24,065,097 1998-1999 5,119,268 8,687,091 1,771,602 2,472,217 2,633,035 6,447,928 1,462,691 402,799 28,9%,631 1999-2000 6,310,171 11,548,901 2,414,081 3,897,965 3,056.557 14,378,621 1,461,148 965,709 44,033,153 2000-2001 7,558,939 12,985,986 3,199,197 3,028,655 4,129,090 13,368,815 2,839,691 2,979.215 50,089,588 2001-2002 9,317,376 12,813,111 2,837,678 2,327,251 4,702.126 25.015,733 3,829,352 793,930 61,636,557 2002-2003 10,644,074 13,193,407 2,871,325 2,421,885 11,412,577 15,876,467 2,848,478 947,179 60,215,392 2003-2004 12,015,509 13,940,263 3.098,547 3,090,992 4,942.167 19,245,244 988,475 1,424,249 58,745,446 2004-2005 14,911.179 14,152,987 3.054,535 3,520,141 3,312,079 20,984,640 2,948,612 1,737,920 64,622,093 Source: City of Dublin Annual Financial Report Total Revenues - All Funds $- P.l'O ~ ,,<15 ,,<15 P.l'<:f P.l1O ,,<15 ,,<15 P.l'b P.lOj s:>1;) ~ ~<15 ,,<15 ~ ~ c-Oj n.Oj~ n.OjOf . ,J "J "J ~I;)" ~I;)~ ~I;)~ s:i'V ,..? a? ~G ~I;) ~I;) Fiscal Years ~ s:>~ nG nG r,{v b(V ~I;) ~f;j 131 CITY OF DUBLIN TOP 25 SALES TAX PRODUCERS 2004-2005 BUSINESS NAME BUSINESS CATEGORY Alameda County Auction Arco AM/PM Arlen Ness Enterprises Bed Bath & Beyond Best Buy Cal Steam East Bay Carl Zeiss Ophthalmic Systems Cingular Supply Circuit City Crown Chevrolet/ Olds/ Cadillac/lsuzu Dublin Dodge/Nissan/Volkswagen/ Hyundai Dublin Honda Dublin Toyota Expo Design Center Ford of Dublin Good Guys Mervynls Micro Porcelain Dental Lab Safeway Safeway Gas Sales Sprinkler Irrigation Specialists Stoneridge Motors Target Toys R Us Tri Valley Buick Pontiac GMC Used Automotive Dealers Service Stations Automobile Supply Stores Home Furnishings Radio/ Appliance Stores Plumbing/Electrical Supplies Health Services Electrical Equipment Radio/ Appliance Stores New Motor Vehicle Dealers New Motor Vehicle Dealers New Motor Vehicle Dealers New Motor Vehicle Dealers Lumber/Building Materials New Motor Vehicle Dealers Radio/ Appliance Stores Department Stores Health Services Grocery Stores Liquor Service Stations Lumber/Building Materials New Motor Vehicle Dealers Discount Department Stores Specialty Stores New Motor Vehicle Dealers Percent of Total City Sales Tax Paid By Top 25 Accounts = 57.40% Firms Listed Alphabetically Period: April 2004 thTll March 2005 Source: Hinderliter, de Llamas and Associates, State Board of Equalization $15 Sales Taxes .-. III t: ~ :i g ~ ..!!! (5 c $10 .....__.........u.........m.....um.._uou.m_um.____. $5 ~CO ~ ~'O ~C?l 1::><::) 1::>" 1::>'),. I::>":J ~~ 1::><) "Q) "Q) "Q) "Q) RS RS RS RS RS ~<,j !O ,,' Rf 21'); sy'); "''); 0;'); r.? ~'); "Q) "C?lQ) C?lC?l C?l<?) C?lQ) ~<;:s ~<::) ~<::) ~<::) ~~ " " " '); '); '); '); '); Fiscal Year 132 Date of Incorporation Form of Government Employees (City and Contract) Population Area Miles of Streets Miles of Curbs Signalized Intersections Number of Street Lights PARKS AND RECREATION: Parks Acres in Parks Acres in Open Space Number of Registered Voters (As of November 2005) EDUCATION: 1. Public Elementary Schools Middle School High School Continuation High School II. Public School Enrollment: December 2004 CITY OF DUBLIN MISCELLANEOUS STATISTICAL DATA June 30, 2005 Feb-82 Council/Manager 208 39,931 14.01 Sq. Miles 81.1 202 64 3,455 11 109.14 125.9 16,431 4,627 FIRE PROTECTION: Number of Stations 3 Number of Fire Personnel 40 POLICE PROTECTION: Number of Stations Number of Police Personnel 1 48 COMMUNITY FACILITIES: Dublin Civic Center Dublin Senior Center Shannon Community Center Dublin Swim Center Heritage Center Dublin Library 5 2 1 1 Source: City of Dublin and Dublin Unified School District Records 133 • . 1 - 0 • Dublin, California • Recommendations to Management For the year ended June 30, 2005 ,; CAL � • Caporicci&Larson Certified Public Accountants I gTACI-iiVIENT #2 i3t /37 C&L Caporicci&Larson Certified Public Accountants To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California In planning and performing our audit of the basic financial statements of the City of Dublin (City) for the year ended June 30, 2005, we considered the City's internal control to plan our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on internal control. However, during our audit, we noted certain matters involving internal control and other operational matters that are presented for your consideration. This letter does not affect our report dated November 4, 2005, on the financial statements of the City. We will review the status of these comments during our next audit engagement. Our comments and recommendations, all of which have been discussed with management, are intended to improve internal control or result in other operating efficiencies. We will be pleased to discuss these comments in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. We wish to thank the members of the Finance Department and City management for their assistance during our audit. This report is intended solely for the information and use of the City Council, management, and others within the City. Oakland,California November 4, 2005 Toll Free Ph:(877)862-2200 Toll Free Fax:(866)436-0927 Oakland Orange County Sacramento San Diego 180 Grand Ave.,Suite 1365 3184-D Airway Avenue 777 Campus Commons Rd.,Suite 200 4858 Mercury,Suite 106 Oakland,California 94612 Costa Mesa,California 92626 Sacramento,California 95825 San Diego,California 92111 City of Dublin Recommendations to Management For the year ended June 30,2005 Table of Contents Page A. New Pronouncements 1 B. Status of Prior Year Observations- Computer Controls 2 13g 4 /�� City of Dublin Recommendations to Management For the year ended June 30,2005 A. New Pronouncements Observation The Governmental Accounting Standards Board (GASB) had issued GASB Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other than Pension Plans and GASB Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits other than Pensions which the City has to implement in fiscal years ending June 30, 2008 and 2009 respectively. These statements will require the disclosure of the liability related to Other Post Employment Benefits (OPEB). GASB's financial reporting and accounting requirements allows the unfunded liabilities to not be recorded, but to be amortized up to thirty years for OPEB plans. Although these unfunded liabilities are not recorded and not presented on the face of the financial statements, these amounts are disclosed in the Notes to the Financial Statements and in Required Supplementary Information as required by GASB. In addition, these disclosures also present a description about the Plans, actuarial assumptions used in the Plans, contributions actuarially required and made, and a three year funding progress (or lack of progress) in the Plans. Recommendation We recommend that the City prepare for the implementation of these statements by obtaining an actuarial study to determine the City's liability. In addition, the City should decide, by Council action, whether the liability will be funded or if the City will continue to utilize the pay-as-you-go method for these expenditures. City Response The City has been proactive in responding to planning for the requirements stated in GASB Statement 45. In 2001 a Retiree Health Internal Service Fund has been established with initial funding of $2.4 million. Annual contributions based on actuarial projections have been made to accumulate funds required for the payment of these benefits. During Fiscal Year 2004-2005 the City obtained its second actuarial report calculating a projection of the required contributions that the City must make in order to fully fund this liability. This information will be useful in developing an implementation plan for GASB 45 with key milestones for decisions in order to meet the required implementation for the fiscal year ending June 30,2009. 1 /31 4&/ 7 City of Dublin Recommendations to Management For the year ended June 30,2005 B. Status of Prior Year Observations-Computer Controls Observation We noted during our audit that the City did not have a written disaster recovery plan, the objective of which is to ensure the continuity of the City's operations in case of a disaster. Recommendation We recommend that the City's Information Technology Department develop a written disaster recovery plan to ensure the continuity of the City's operations in case of a disaster. City Response The City currently maintains an off-site storage location for all City computer data files to minimize the potential loss of important data. In addition, the City's Information Technology Department will develop a written disaster recovery plan during Fiscal Year 2004-2005 Status The City maintains an off-site storage location for all City computer data files to minimize the potential loss of important data. In addition, the City's Information Technology Department has developed a written disaster recovery plan. 2