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HomeMy WebLinkAbout8.2 Annual Audit Rpt FY 2006-07 CITY CLERK File # D[i][]][Q]-[ID[Q] SUBJECT: Annual Audit Report for Fiscal Year 2006-2007 And Designation Of Fund Balances Report Prepared by: Ad Hoc Audit Subcommittee - Vice Mayor Tim Sbranti and Councilmember Kasie Hildenbrand; and Paul S. ~ Rankin, Administrative Services Director ATTACHMENTS: 1. Comprehensive Annual Financial Report of June 30, 2007 (Separate Bound Booklet) Recommendations to Management June 30, 2007 Excerpts City Council Minutes June 28, 2007 2. 3. RECOMMENDATION: # (1) Accept the Reports; and (2) After consideration of the other capital improvement Agenda items that are included on this City Council Agenda (Historic Park; Kolb Historic House; Competitive Pool Location; and Fallon Sports Park), determine how the 2006- 2007 year end General Fund surplus should be designated. FINANCIAL STATEMENT: See Staff Report. DESCRIPTION: The City of Dublin has compiled and published its Comprehensive Annual Financial Report (CAFR) for the Fiscal Year ending June 30, 2007. This report, which is included as Attachment I, includes audited financial statements reviewed by Caporicci and Larson, CPA's (C&L). This firm is the independent auditor selected by the City Council and this is the fourth year that C&L has conducted the financial 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 Committee (Vice Mayor Tim Sbranti and Councilmember Hildenbrand) on February 12, 2007 to review the results of the audit. The finalization of the report was delayed by the disruption caused with the Civic Center fire. Overall, based on their testing and review the Auditors found no matters of concern, involving the City's internal controls and financial reporting that were considered to be a material weakness and the City received a clean opinion. FINANCIAL STATEMENTS The City Financial Statements are included in the Comprehensive Annual Financial Report (CAFR). The scope included in a CAFR exceeds the minimum amount of information required. The format is in compliance with the requirements for a Certificate of Achievement from the Government Finance Officers Association. The goal of this program is to provide financial information of the highest quality. Certain elements of the report are mandatory and it goes beyond the minimum reporting that is required for audits of basic financial statements. COPY TO: Page 10f7 ITEM NO. ~. 2- G, G:\Audit\FY 06-07 Annual AUdit\Agenda Stmts\Audit-agend statement 2007.doc The City's audit report for Fiscal Year 2006-2007 begins with a transmittal letter (pages v - ix). This provides a general overview of the components which make up the report. Beginning on page 3 and continuing to page 14, is the required Management Discussion and Analysis (MD&A). These sections provide a good overview of the financial activities of the City. The focus is on significant trends, as well as major changes associated with the City's major funds (i.e. General Fund and hnpact Fee funds). The General Fund represents the largest portion of the City's revenues and expenditures and is of primary importance in evaluating the City's fiscal condition. In the (MD&A) section the focus is on the major funds. A significant portion of the CAFR is comprised of financial statements and schedules for the various funds used to account for the City's revenue and expenditures. Since some funding sources have restricted uses Governmental Accounting standards require the information to be maintained in a manner which will accurately account for transactions. In addition the financial statements include a Government Wide Statement of Net Assets, which is similar to financial statements presented by private corporations. It is important for readers to keep in mind the unique nature of government services and what is reported as assets. For example, land dedicated for streets and parks are reported as part of the Noncurrent Assets retained by the City. Although this category accounts $399.6 million, these are not liquid assets available to fund programs or on-going activities. Pages 125 - 149 comprise the statistical section of the CAFR includes graphs of relevant historical data. With the 2005/06 CAFR the Government Accounting Standards Board required some new schedules and comparisons in the statistical section. The presentation of information over a longer period can be helpful in identifying trends and/or the timing of key changes which have impacted the City's financial condition. DESIGNATIONS OF FUND BALANCES One part of the closing entries recorded on the financial statements is the designation of funds for specified uses. A complete listing of both fund reserves and designations for all funds is shown on page 55 of the report. A "Reservation" implies that there is a strong legal basis which restricts the discretion of the City Council to use the funds for any desired purpose. A "Designation" is less restrictive and subject to policy decisions by the City Council. 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, 2007, to fund future year operations and projects for each of those funds with a positive fund balance. As part of the 2007-2008 Budget discussions The City Council identified priorities for the allocation of increased General Fund reserves resulting from the 2006-2007 operations. Establishing the new designations will be discussed in a later section of this report. B. Other General Fund Designations of Fund Balance The City Council is requested to confirm these designations as part of accepting the final audit report. Among the new entries is a change in the presentation, which was previously shown as a designation for the Investment Fair Market Value Adjustment to account for the market value fluctuation of investments. The current report also accounts for the Culvert Maintenance funds to be formally reserved as the agreement provides that they are set-aside for long term maintenance. It is now shown in the assets account grouping as a contra asset account, a reduction to the total value of investments at cost. The chart on page 4 of the Agenda Statement reflects the actual amounts available for designation at the close of 2006107. Page 2 of7 AD-HOC AUDIT COMMITTEE OBSERVATION - GENERAL FUND DESIGNATIONS During the review of the designations reported in the General Fund (page 55 of the CAFR), the Ad Hoc Audit Committee identified areas for further discussion. The City Council Audit Committee was provided with a brief overview of the philosophy behind several of the current designations. The designation for the Economic Uncertainly was established and provides the City with protection in the event of an unfavorable economic condition in which for example, there was a shortfall of revenues forcing a withdrawal of funds to maintain current service levels. The sub-committee noted that there does remain the $1 million General Fund designation for Affordable Housing. REPORT TO THE CITY COUNCIL AND MANAGEMENT (Mana2ement Letter) As part of the Audit Review the independent auditors do present recommendations for consideration by . the City (Attachment 2). The item noted in this report is not of a nature that impacts the overall "clean opinion". Rather the process allows the Auditors to note certain practices and policies, and allow Management to respond to the input. Changes in Audit Standards also impacted the Auditors obligation to report a finding for the year ending June 30, 2007. In May 2006, the American Institute of Certified Public Accountants issued new audit standards on how the auditors are to issue their opinions on the financial statements. The new standard places significant new responsibilities on the auditors to identify and communicate specific items with management, the audit committee and those in the position of governance. There are three categories which the auditors will issue as part of the Management Letter. The labels used are standardized throughout the accounting industry. 1. A "Control Deficiency", which is the lowest of the three deficiencies, exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. 2. A "Significant Deficiency" is a control deficiency or a combination of control deficiencies, that adversely effects the City's ability to initiate, authorize, record, process or report financial data in accordance with the Generally Accepted Accounting Principles, and that the likelihood of a misstatement of the City's financial statement that is more than inconsequential which will not be prevented or detected by the City's established internal controls. 3. A "Material Weakness", is a significant deficiency or a combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements which will not be prevented or detected by the City's established internal controls. As part of their work, the auditors identified an item which they have classified as a "Control Deficiency" (Item 1 above). The specific condition related to the timeliness of recording of two capital assets depreciation. The Management response is contained on page 1 of the Report to the City Council and Management. The auditors issued this opinion in this year audit. Staff is aware of the audit requirements to record depreciation on assets and makes every effort to complete them in a timely manner. It appears that the Senior Center depreciation was overlooked by Staff in the closing entry on June 30, 2006. The second item involved the timing for the start of deprecation expense for the Street hnprovement Project for the Dublin Boulevard hnprovements between Village Parkway and Sierra Court. The improvement was to be completed and placed in service in May 2004. However, because of pending disputes and settlement agreements between the City and Contractor, the full asset was recorded in a Construction in Progress account and was depreciated, until after resolution of the claim. Page 3 of7 Staff have indicated in the report steps to correct the deficiency. As noted by the Auditors these items while it is important to accurately represent these items in the City Financial Statements, they did not impact the cash position of the City. DESIGNATION OF FUND BALANCE INCREASES IN THE GENERAL FUND At the time that the Fiscal Year 2007/2008 Budget was adopted, Staff projected that a total of$ll million in new reserves would be available from a combination of Fiscal Year 2006107 (Projected at $8.4 million) and Fiscal Year 2007/08 (Projected at $2.6 million). Discussions were considered preliminary based on budget estimates. The final change in reserves can only be determined after all financial entries were complete. It is now appropriate for the City Council to determine the desired designations. As shown below the actual change in Fund Balance was less than what was projected last June. The total change in Fund Balance was $7.5 million compared to the $8.4 million projected as a Budget estimate. CHANGES IN FUND BALANCE - GENERAL FUND 2005/2006 and 2006/2007 Balance 6/30/2006 2005-2006 Year To Year Balance Change [2007 6/30/2007 More 1 (Less) 2006-2007 Than 2006] RESERVED Prepaid Expenditures Cemetery endowment Culvert Maintenance Advance (Fire Impact Fees) 7,225 UNRESERVED - /DESIGNATED FOR: Economic Uncertainty Downtown 1 Open Space Senior Center CIP Carryovers Capital Improvement (Shannon Culvert Maintenance Affordable Housing Authorized Expenditures Sub-Total 2,970,721 1,378,23 172,87 1,518,711 (172,873) (994,760) (279,268) (280,000) 5,468,512 3,741,611 Total Fund Equity -General Fund $50,771,87 $7,527,87 PRELIMINARY PROJECTS IDENTIFIED FOR RESERVE DESIGNATIONS IN JUNE 2007 In June the City Council concurred with the City Manager recommendation for $4.5 million of funding priorities and the City Council suggested possible allocations for $6.5 million of the projected two year surplus. Potential surpluses were discussed and a number of possible uses for the surpluses were presented. However, the final allocation of these funds would be finalized at year-end for each respective fiscal year. At the present time it would be appropriate to revisit the possible designations and select allocation of the $7.5 million Fiscal Year 2006107 Surplus. For discussion purposes the preliminary allocations in excess of this amount are presented below: Page 4 of7 Programming Of Initial $4.5 Million Reserves Recommended By City Manager And As Tentatively Approved By The City Council June 28, 2007 Civic Center Expansion Set Aside $ 10,205,455 In 2006 dollars) $ 16,500,000 (Report presented January 15, 2008) City Share of Alameda County Fire Dept Unfunded Liability is currently being calculated. City share of Dougherty Regional Fire Authority unfunded obligation was calculated to be $1,444,000 as 0 June 30,2007 Reserve For Future City Maintenance Facility I EOC Establish A Reserve For Fire Dept Retiree Medical Obligation TOTAL $ 2,000,000 $ 1,500,000 $1,000,000 $ 4,500,000 Programming Of Potential Additional $6.5 Million Reserves Identified By City Council June 28, 2007 Emerald Glen (Indoor Portion) of A uatic Center Heritage Park Phase II $ 6,300,000 (Est. In 2007 Dollars) $ 4,016,000 (Phase I1 is only part of an overall $11.7 million mu/ti- hase ro .ect) $ 1,000,000 Estimated cost of two soccer fields - design stud underwa (System under development. City share of cost is unknown. Cost estimated for non-public safety radios, estimated at $500,000. Fallon Sports Park Artificial Turf East Bay Emergency Communications Systems TOTAL $ 2,500,000 $ 2,500,000 $ 1,000,000 $ 500,000 $ 6,500,000 UPDATED FINANCIAL INFORMATION RELATED TO RESERVE DESIGNATIONS In addition to the 2006-2007 year end surplus being approximately $900,000 less than projected additional information is available that warrants consideration. Since the 2007-2008 Budget was adopted there have been several new developments that have impacted the assumptions used in the tentative designation of reserves described above. Page 5 of7 UPDATED COST CONSIDERATIONS FOR PROGRAMMING GENERAL FUND RESERVES 1. Increased Construction Costs a. Historic Park Phase I (As shown in the current Master Plan) b. Fallon Sports Park Artificial Fields + $ 380,600 + $121,486 2. Increased Cost If Location Changes (Competitive Pool) This reflects the increased cost of constructing the Competition Pool at Dublin High School (DHS) as compared to its inclusion as an element of the Aquatic Center at Emerald Glen Park + $1.4 million 3. Limitation on Use of Public Facility Fees For Competitive Pool at DHS The current structure of the Public Facility Fee would limit the use of these fees if the Competitive Pool were located at (DHS), and may necessitate the use of General Funds Up To + $2.4 million 4. Relocation of Kolb Family Structures Offer by the KolbFamily descendents to allow the City to relocate structures to the Historic Park. Different options are presented as a separate Agenda Report. + $2.038 to +$2.792 million Timing of projects is an essential consideration in developing a prioritization of projects. In order to move forward with the Fallon Sports Park and the Historic Park and maintain the project schedules anticipated in the Five Year Capital hnprovement Program, funding needs to be in place for these projects for Fiscal Year 2008-2009. It is also necessary to commence the design of the Civic Center expansion. Based on these needs the City Council would need at a minimum to set aside the following funds from the 2006-2007 year end surplus, if these projects were to move forward: 1. Historic Park Phase I (Without Kolb Buildings) 2. Fallon Sports Park Artificial Turf 3. Civic Center Expansion (Design Only) Subtotal $ 380,600 1,121,486 1,200,000 $2,702,086 Staff would further recommend that reserves be designated for the following projects I needs: 4. Reserve for Future City Maintenance Facility I EOC $1,500,000 5. Reserve for Fire Personnel Retiree Medical 1,000,000 Subtotal $2,500,000 TOTAL ITEMS # 1-5 $5.202.086 This would reduce the 2006-2007 year end surplus from $7,527,875 to $2,325,789. These funds could be designated for one or more ofthe following projects: a) Competitive Pool at Dublin High School + $1.4 to + $3.8 million b) Relocation of Kolb Family Structures To Historic Park c) Contribution Towards Future (Indoor Portion) d) Emerald Glen Aquatic Center + $2.038 to +$2.792 million + $2.5 million e) 4. Heritage Park Phase III + $2.5 million t) 5. East Bay Emergency Communication System + $0.5 million TOTAL ITEMS (a) - (t) = $8.938 - $12.092 million Page 6 of7 As noted these designations will not fully fund the entire projects in the short-run. This was intended to be a long term approach using the surplus funds to assist in funding projects over time. Also, given the fact that the amount currently available to allocate is only $7.5 million, it would be appropriate for the City Council to select options and funding levels. These designations would appear in the Fiscal Year 2007/2008 Comprehensive Annual Financial Report. RECOMMENDATION Staff recommends that the City Council: 1) Accept the reports; and 2) After consideration of the other capital improvement Agenda items that are included on this City Council Agenda (Historic Park; Kolb Historic House; Competitive Pool Location; and Fallon Sports Park), determine how the 2006-2007 year end General Fund surplus should be designated. Page 7 of7 City of Dublin ~-re.M11f= 8.c; 0141o~ ~1- ATTACHMENT 1 V I I I I I I I I I I I I I I I I I I I City of Dublin Dublin, California Comprehensive Annual Financial Report For the year ended June 30, 2007 IC&L Caporicci & Larson Certified Public Accountants I I I I I I I I I I I I I I I I I I I City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2007 Table of Contents 3';fl'7ez Page INTRODUCTORY SECTION Table of Contents............................................. .................................................................................................................. i Letter of Transmittal.................................................................................................................................... ..................... v Government Finance Officers Association (GFOA) Award ....................................................................................... x Principal Officers.................................................................................................................................. ............................ xi Organizational Chart..................................................................................................................................... ................. xii FINANCIAL SECTION Independent Auditors' Report...................................................................................................................................... 1 Management's Discussion and Analysis......................... ................ .... ... .......... ................ ..................... ......... ............. 3 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets.................................................................................................................................... 19 Statement of Activities and Changes in Net Assets...................................................................................... 20 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet..................................................................................................................................... ........... 22 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets .......................................................................... 25 Statement of Revenues, Expenditures and Changes in Fund Balances............................................... 26 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......................................................................... 28 Proprietary Fund Financial Statements: Statement of Net Assets .............. ........... ...... ......... ...... ....................................... ........ ....... ...... .................... 29 Statement of Revenues, Expenses and Changes in Net Assets............................................................. 30 Statement of Cash Flows.................... ........................................................................................................ 31 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Assets.. ........................... ...................................................................... ......... 32 Statement of Changes in Fiduciary Assets............................... ............. ........ ........................................... 33 Index to Notes to Basic Financial Statements .......................................................................................................35 Notes to Basic Financial Statements... ........... ............... .................................... ................ .................. ............. ....... 37 City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2007 4 ~ /1"< Table of Contents, Continued FINANCIAL SECTION, Continued Required Supplementary Information: Budgets and Budgetary Accounting............................................................................................................... 70 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: General Fund..................................................................................................................................... ........... 71 Housing and Noise Mitigation Special Revenue Fund.......................................................................... 72 Schedule of Funding in Progress: Miscellaneous Plan of the California Public Employee Retirement System....................................... 73 Other Post Employment Benefit (OPEB)...... .......... ................. .......................................... .......... ............. 73 Supplementary Information: General Fund: Schedule of Budget Versus Actual Revenues by Sources ............................................................................ 78 Schedule of Budget Versus Actual Department Expenditures ................................................................... 80 Major Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Traffic Impact Fees Capital Projects Fund ............................................................................................... 83 Public Facilities Fees Capital Projects Fund ............................................................................................ 84 Public Art Fees Capital Projects Fund ......................................................................................................85 Fire Impact Fees Capital Projects Fund ....................................................................................................86 Non-Major Governmental Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Combining Balance Sheet........................................................................................................................... 90 Combining Statement of Revenues, Expenditures and Changes in Fund Balances.......................... 94 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Criminal Activity Special Revenue Fund ...................................................................................98 Vehicle Abatement Special Revenue Fund .............................. ............... ............. ......................... ........... 99 Supplemental Law Enforcement Special Revenue Fund..................................................................... 100 Traffic Safety Special Revenue Fund .................... ...... ........... ................................................................. 101 State Gas Tax Special Revenue Fund ......... ................. ...... ............................................... .............. ......... 102 CDBG Special Revenue Fund ................. ........ .......... ......... ........... ......... .............. .......... .............. ............ 103 T.E.A. Special Revenue Fund................................................................................................................... 104 FEMA Special Revenue Fund.................................................................................................................. 105 Measure B Sales Tax Transportation Special Revenue Fund .............................................................. 106 State Transportation Improvement Special Revenue Fund ................................................................ 107 Measure D Recycling Special Revenue Fund ........................................................................................ 108 Garbage Service Special Revenue Fund ................................................................................................. 109 Local Recycling Program Special Revenue Fund ................................................................................. 110 Measure B Bike and Pedestrian Special Revenue Fund....................................................................... 111 EMS Special Revenue Fund... ....... ........................................ .......................... ...................... ....... ............ 112 ii Page I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2007 G1/'1.:( 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: Traffic Congestion Relief Special Revenue Fund ....................... ................................................. .......... 113 Street Lighting Special Revenue Fund ...... ................ ................................... ...... .................................... 114 Stagecoach Landscape Special Revenue Fund ....... .............. ...... ................................... ........................ 115 Dougherty Landscape and Lighting Special Revenue Fund............................................................... 116 Santa Rita Assessment District 97-1 Special Revenue Fund................................................................ 117 East Dublin Street Lighting Assessment Special Revenue Fund........................................................ 118 Internal Service Funds: Combining Statement of Net Assets ... .................. ...... ...... ........ ....................... ................ ............................. 120 Combining Statement of Revenues, Expenses and Changes in Net Assets ............................................ 121 Combining Statement of Cash Flows.... ........ ....................................... ................. ............................. ........... 122 Agency Fund: Statement of Changes in Net Assets.............................. .... ........ ........ ...... ............. .... ...................................... ............ 124 ST ATISTICAL SECTION General Governmental Activities Tax Revenues by Source and Governmental Activities Tax Revenues by Source ..................................................................................... 126 Net Assets by Component..................................................................................................................................... 127 Changes in Net Assets........................................................................................................................................... 128 Fund Balances of Governmental Funds ................................. .... ....................... .................................................. 130 Changes in Fund Balances of Governmental Funds ......................................................................................... 132 Assessed Value and Estimated Actual Value of Taxable Property ................................................................. 134 Direct and Overlapping Property Tax Rates ..................................................... ................................................. 135 Principal Property Taxpayers............................................................................................................................... 136 Property Tax Levies and Collections ................ ....................... ............... ...... ................... ..................... ............... 137 Direct and Overlapping Dept......................................................................................................... ...................... 138 Legal Debt Margin Information........................................................................................................................... 140 Demographic and Economic Statistics................................................................................................................ 142 Property Value, Construction and Bank Deposits ............ ................................................................................. 143 Principal Employers..................................................................... .......................................................................... 144 Full-time Equivalent City and Contact Government Employees by Function.............................................. 145 Operating Indicators by Function........................................................................................................................ 146 Capital Assets Statistics by Function.................... ......... ........................... ........................................................... 147 Top 25 Sales Tax Producers .............................. .............. ................. ...................................... ................................ 148 Miscellaneous Statistical Data............................................................................................................................... 149 iii Page I I I I I I I I I I I I I I I I I I I City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2007 6 f1.,( Table of Contents, Continued Independent Auditors' Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Basic Financial Statements Performed in Accordance With Government Auditing Standards ................. ... .... ................ ...... ........ ................... ... ................. ........... 151 iv 11 /'10( CITY OF DUBLIN 100 Civic Plaza Dublin, California 94568 Website: www.ci.dublin.ca.us December 14, 2007 Honorable Mayor and Members of the City Council Presented with this transmittal is the City of Dublin (City) Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2007. 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 financial 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 retiree health costs as well as 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: Infrastructure; Buildings and Improvements; and Machinery and Equipment net of depreciation. This amount 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 of the 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 833-6610 Parks & Community Services 833-6645 Police 833-6670 Planning / Code Enforcement 833-6610 Building Inspection 833-6620 Fire Prevention Bureau 833-6606 v ~~ 11c2 I I I I I I I I I I I I I I I I I I I CITY PROFILE The City of Dublin was incorporated in 1982 and is located in Alameda County, a growing area in the eastern portion of the San Francisco Bay Area. The City has a permanent staffing level of approximately 88 City employees and serves an estimated population of 43,630, with estimated population growth to 60,000 covering a land area of 14.01 square miles. The City continues to show strength as a major employer and a community with high quality residential neighborhoods. The City operates under the Council-Manager form of government. Policy making and legislative authority are vested in the City Council, which consists of an elected mayor, which serves a two year term and four Council members each elected to a four year term. The governing council is responsible for the City's ordinances, operating resolutions, adoption of the annual budget, appointing commissions and committees and hiring the City Manager and City Attorney. The City Manager is responsible for the following activities: implementing the policies, ordinances, and directives of the City Council; overseeing the day-to-day operations of the City; and appointing the Directors of the City's departments. Current City services include: Administrative Services (Finance/Information Systems); City Manager and Central Services; City Clerk; Police; Fire; Animal Control; Crossing Guards; Community Development (Building/P1anning/Housing); Economic Development; Parks and Community Services; and Public Works (including Engineering and Maintenance). The City contracts with both public agencies and private firms to provide a variety of key services including: Building Inspection; Fire; Police; and Public Works maintenance. A total of 130 FTE contract employees are identified in the City budget. 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 and technical production offices such as Micro Dental Laboratories, Zeiss Meditec and Sybase; retailers such as Best Buy, Circuit City, Home Expo Design, Mervyns, and Target; and auto dealers such as Crown Chevrolet, Dublin Nissan, Dublin Honda, Dublin Toyota, Dublin Volkswagen, Ford of Dublin, Stoneridge Chrysler Jeep, and Tri Valley Pontiac/BuicklGMC. Retail Sales are an obvious indicator of the general economic climate. The General Fund Sales Tax in Fiscal Year 2006-2007 decreased by 2.8% over the amount attributable to the prior year ($14.0 million in Fiscal Year 2006-2007 vs. $14.4 million in Fiscal Year 2005-2006). The decrease reflects the national trend of fewer automobile sales. In addition, there have been relatively few new retail outlets opened in the City in the past year. 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. The City will be adding additional automobile dealerships representing the following manufacturer: Saab, Saturn, and Hummer. Although these are important additions, the concentration of retail sales associated with new automobile sales results in revenues being substantially impacted by this sector. 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 several fiscal years. There is also additional planned development for new Dublin / Pleasanton BART Station, adjacent to the older commercial portion of the City. In order to balance the supply of housing for a variety of income levels, the City has also taken proactive steps to require developers to incorporate inclusionary housing units aimed at affordable housing needs. vi I I I I I I I I I I I I I I I I I I I Cj 'if 17r;( The economic outlook for the City of Dublin for Fiscal Year 2007-2008 indicates that there may be some slowing of development activity. The City has been prudent in assuring that services provided are balanced with resources available. In the longer term there remain ample opportunities for the City to continue to support new residential, retail, and employment generating projects which have been identified the General Plan and Specific Plan. The City anticipates that there will be sufficient reserves to cover any unanticipated revenue shortfalls. The market for new housing of all types continued to soften during Fiscal Year 2006-2007, with permits issued for 737 new residential units. This resulted in the second consecutive year where there was a significant decrease in the number of new residential permits issued. The amount of non-residential permits issued by the City represented approximate 259,410 square feet of new development. Approximately 85% of this activity was related to three new developments (139,410 square feet - Lowes Home Improvement; 53,860 square feet Dublin Honda relocation; and 27,940 Venture Corporation commercial condominium project). 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 2006-2007, the City completed several significant high priority goals and objectives, including the following: · Completed the Dublin Historic Park Master Plan and acquired additional property to increase park land available. · Adopted a Historic District Master Plan and implementation of a Specific Plan. · Completed a programming study to evaluate future facility needs at the Civic Center to servIce a growing city. · Completed review of the Moller Ranch Annexation and General Plan Amendment. · Implemented a First Time Homeowner Program including assistance to buyers in the form of loan assistance. · Worked with property owners to fill vacant retail space. · Completed the review and selection process for public art to be incorporated in development projects. · Coordinated the grand re-opening of the Murray Schoolhouse, which has a 150 year history. · Adopted a Bicycle Master Plan outlining travel routes and bicycle access to parks and open space. · Completed design studies necessary to implement the extension of Scarlett Drive, north of Dublin Boulevard. 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. Vll 10~~/1~ 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. Expenditures may not exceed budgeted appropriations at the departmental level without City Council approval. However, the City Manager is authorized to transfer funds from the contingent reserve to operating departments salary and benefit accounts when required due to a.) employee turnover or change in status b.) City Council approved funding for increases in employees salaries and benefits and c.) City Council approved funding for increase in contract or labor rates. viii I I I I I I I I I I I I I I I I I I I 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 bonds originally issued in 1992 was $2,350,000. The total amount of assessment debt outstanding at June 30, 2007 is $1,061,000. The debt service schedule will result in full repayment by 2012. 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, 2007. 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 2006-2007 was $15 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 insurance pool purchases the required employee bonds from a commercial surety company. In accordance with GASB 10, the City established a liability of $252,547 for claim deductibles. This includes a provision for losses which may be "incurred but not reported" (ffiNR). The actual cost for liability claims paid by the City for Fiscal Year 2006- 2007 was $27,630. In addition, the City is also a member of the Cities Group, a Joint Powers Authority which provides insurance coverage for worker's compensation. CASH MANAGEMENT Cash temporarily idle during the year was invested in accordance with adopted investment policies. The City's average yield was 4.37%, based on all of its investments for the period of July 1, 2006 through June 30, 2007. This was an increase from 4.06% reported for the year ended June 30, 2006. As of June 30, 2007, the City's portfolio of Federal Security investments had an average weighted maturity of 2.47 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. I I I I I I I I I I I I I I I I I I I INDEPENDENT AUDIT If '1 J 70L 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, 2006. A copy of the award from this entity is included in this report. This award represents the 17th 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 Vivian Gong, Finance Manager, who played a key role with her staff in coordinating the preparation of this report. The City is fortunate to have 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. Staff also appreciates the professional effort and input provided by the independent auditors of Caporicci & Larson, Certified Public Accountants. 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, (la1~.~ Paul S. Rankin Administrative Services Director IX I~ j 1'1<>< I I I I I I I I I I I I I I I I I I I 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 June 30, 2006 ^ Cel1ificate of Achievement for Excellence in Fiuancial Reporting is presented by the Government Finance Officers Association ofthe United States and Canada to government units and public employee retirement systems whose comprehensive IUmuaI fllancia) reports (CAFRs) achieve the highest standards in goverrunenr accounting and financial reporting. President ~~~ Executive Director x I I I I I I I I I I I I I I I I I I I CITY OF DUBLIN PRINCIPAL OFFICERS June 30, 2007 Mayor Janet Lockhart Vice Mayor Kasie Hildenbrand Councilmember Tony Oravetz ADMINISTRATION PERSONNEL City Manager Assistant City Manager Administrative Services Director City Attorney City Clerk - Interim Chief of Police Public Works Director Community Development Director Parks & Community Services Director Fire Marshal xi (f, i 17..< Councilmember Tim Sbranti Councilmember Kate Ann Scholz Richard Ambrose Joni Pattillo Paul Rankin Elizabeth Silver Carolyn Parkinson Gary Thuman Melissa Morton J eri Ram Diane Lowart Bonnie Terra I I 'E Gl ~ 1- l- e::: <t J: () ...J <t z Q l- e:{ ~ z <t C) e::: o z ::i CO =>> C u.. o ~ () ",0/1 ~ ~~ ~ -s.g m ~~ .- oo(l)C: t::o (I) Q) <( 'W Q) 0> - (I) ,Q E nJ nJ'- ~ =ESE ~-g Q) ~ E Q) ::c:Jo C/) =0 0- uu ,~ n.~ 0 '2 a.. <( II:: ~ Z. G >. >-Q) _c: ,- ... U~ <( c: 0>,2 ,~ la C:'- c: E .!!!E 0..0 u ... Q) 0> nJ c: nJ ~ &:- i5 ~ ~ ~ c: :J c: E ,^ 0 E Q)'w o,Q,(/) U~E ooQ)E (I) C/) 0 ~ U nJ Q.. xii Cl(\) c: (J) ,_:!::~ ~E,g oEo. J:o....... u ... (J) Cl III c: ('I:l ~ >. .... (3 .... c: J!I ,!!l ~ (/) (/)(/)-> l3~2!5iI-lJ) ,!:1 :; -g E ~ 'E ~ 0 ffi ~~ ~ ex ~ ~~Ot? _D::z-.ro.?:- ~ c:u-:!:'- C ~ ~ $ s ~ '~ O:J(/)(/)Ee Iffig! 0 0>8 ......2;-3: ,~ J!! ~ ~ (J) c:,:: E (I)(J)>E U~o u (/) Q) 8 ... ,- u:c: Q) CJ) (/) ~ ... ~ ,Q :0 :J Q.. Q) > :;::;1/) ~ Q) (j) ,Q 'c ~ ,- Q) EC/) '0 <( (/) 8 '2: ooQ) (/)C/) ~>. '- ~ nJ c: Q..:J E E o {) >.C :t::Q) c: E :Ja. E 0 E'O.i o > uQ) o )if I )10< I I - g- c: C Ol (J) 'm !il.!!2Clgg>~~~ Cl ro ,!; ro ,- Ol Cl c: c_co..-cro ~ ,g>L: 2 Ol ,!; 'a' C ,- ro en :3> ,!; ~ ro B 2 lii :Eo_roen:E(/)cOJ 0l:E (J)::E _ OJ "0 'm ,!; cro(J)_OlOlC"",,, ,_ ~ 00. QJ QJ .... ro":; c: :Q1-ti5QJ....I--.l~W '5 ci5 ti5 w Qi lii m !!!wD.. U5fJ5 I I I ~g~ 8' croE- ~ESg ii.E~-5 C CI) w - I- I ~ I C E !!!,~ Qj ~ Ol a ,2 ~ c 2 ::E :0:: ~ ,~(\) Ol ~ !!! roq,>9oE,."ro !!!en.....Olw;:O o ~ro OlO 0"0 & ~ :;,19~~:E .a_cn 0 ::J:;Q)::J"" OIO(/) ~ ~ I I . .?:- ~ ~0l0l ..x ,!; C ...., c'w OlC:J c: .!!! 0 32D..I '5 m . s I I i I I I I I I I I I I I I I I I I I I I I I IC&L Caporicci & Larson Certified Public Accountants IS1 I~o( 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, 2007, 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 rea~onab1e assurance about whether the basic financial statements are free of material misstatement. An audit irtcludes 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, 2007, 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 to the basic financial statements, the City adopted Statement of the Governmental Accounting Standards Board No. 43, Financial Reporting for Postemployment Benefit Plans (OPEB) other than Pension Plans. In accordance with Government Auditing Standards, we have also issued our report dated December 14, 2007, 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. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Toll Free Ph: (877) 862-2200 Toll Free Fax: (866) 436-0927 Oakland 180 GrandAve., Suite 1365 Oakland, California 94612 Orange County 9 Corporate Park, Suite 100 Irvine, California 92606 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 I&> 1/10( 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. Our audit was conducted for the purpose of forming opinions 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. ~~. f ~~ Oakland, California December 14, 2007 2 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I /71 17~ CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2007 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, 2007. Please read this overview in conjunction with the accompanying letter of transmittal and the accompanying basic financial statements. 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 MD&A. . 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 MD&A. . 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. 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. GOVERNMENT-WIDE FINANCIAL STATEMENTS AND FINANCIAL ANALYSIS 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 among indicators used to assess 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 values; and sales tax outlets; and the condition of the City's infrastructure (i.e. parks and streets), to accurately assess the overall health of the City. The Government-Wide 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. 3 lC6 ~{1o( CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2007 As shown in Table 1, during Fiscal Year 2006-07, the City's net assets, representing the difference between total assets and total liabilities, increased by $12.9 million (2.6%) to $507.1 million from $494.1 million (as restated) in Fiscal Year 2005-06. The increase resulted from lower than expected General Fund expenditures and the receipt of impact fees due to new development occurring within the City. Impact Fee funds are used to finance future improvements to the City's infrastructure, including its parks and streets and fire facilities. Table 1 below summarizes the City's net assets. Governmental Activities Item June 30, June 30, $ Change 2007 2006 Current and other assets $123,684,017 $123,055,160 $628,857 Capital assets 399,631,407 387,888,143 11,743,264 Total assets 523,315,424 510,943,303 12,372,121 Other liabilities 16,246,402 16,807,912 -561,510 Total Liabilities 16,246,402 16,807,912 (561,510) Invested in capital assets 399,631,407 387,888,143 11,743,264 Restricted 45,647,928 48,480,463 -2,832,535 Unrestricted (See Note 8 to Financials for Council Designations) 61,789,687 57,766,785 4,022,902 Total net assets $507,069,022 $494,135,391 $12,933,631 % Change 0,5% 3,0% 2.4% -3,3% -3.3% 3.0% -5,8% 7,0% 2.6% A significant portion of the City's net assets ($399.6 million or 78.8%) 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. The City's total liabilities of $16.2 million represents obligations outstanding for current operations, capital projects and deposits held for development projects. The increase in liabilities is primarily due to changes in general accounts payable at year end and recording deferred revenue related to Notes Receivable as described in Note 3. $45.6 million or 9.0% of the assets as of June 30, 2007 represent resources that are subject to external restrictions on how they may be used by outside agencies and state regulations. Unrestricted net assets ($61.7 million or 12.2%) may be used to meet the government's ongoing obligations to citizens and creditors. However, as discussed in the notes to the financial statements, much of the $61.7 million of unrestricted net assets includes the unreserved portion of General Fund balance which has either been designated for future equipment replacement or that has been designated by Council for use on several future projects and to cover economic uncertainties. The unrestricted shows an increase of $4 million compared to Fiscal Year 2005-06. 4 I I I I I I I I I I I I I I I I I I I I ja; ~ 17ol. CITY OF DUBLIN I Management's Discussion and Analysis (MDA) June 30, 2007 I Total revenues from all sources were $69.8 million and total expenditures for all City programs were $63.9 million. For Fiscal Year 2006-07, the City had no long term debt outstanding at June 30, 2007. I Governmental Activities The charts on the following pages summarize major expenditure program categories, program revenues used to fund specific expenditure programs, and general City revenues I available for funding all City programs. Table 2 - Changes In Net Assets I Fiscal Year Endin2 June 30th 2007 2006 $ Chan2e % Chan2e Expenses: I Governmental activities: General government $ 8,866,758 $ 4,940,585 $ 3,926,173 79.5% Public safety 22,306,240 20,314,535 1,991,705 9.8% Highways and streets 17,182,208 13,894,865 3,287,343 23.7% I Health and welfare 1,816,800 1,887,417 (70,617) (3,7%) Culture and leisure services 14,080,040 10,074,239 4,005,801 39.8% Community development 11,157,417 8,553,888 2,603,529 30.4% Total governmental activities expenses 75,409,463 59,665,529 15,743,934 26.4% I Program revenues: Governmental activities: I Charges for services: General government 208,247 4,011 204,236 5091.9% Public safety 2,284,955 1,270,233 1,014,722 79,9% I Highways and streets 745,727 2,167,740 (1,422,013) (65,6%) Health and welfare 2,483,619 2,092,566 391,053 18,7% Culture and leisure services 1,508,752 1,751,965 (243,213) (13,9%) Community development 9,432,854 6,629,383 2,803,471 42,3% I Operating grants and contributions 2,813,079 238,053 2,575,026 1081.7% Capital grants and contributions 25,973,730 18,900,426 7,073,304 37.4% Total governmental activities I program revenues 45,450,963 33,054,377 12,396,586 37,5% Net revenues (expenses): (29,958,500) (26,611,152) (3,347,348) 12,6% I General revenues and other changes in net assets: Governmental activities: Taxes: I Property taxes 20,266,216 16,891,670 3,374,546 20,0% Sales tax 14,025,869 14,363,863 (337,994) (2.4%) Other taxes 3,508,587 3,343,943 164,644 4,9% Motor vehicle III heu, unrestncted 201,270 lS50,7Ob (5\)5,4\)0) (0\).5%) I Investment income, unrestricted 4,053,187 2,505,911 1,547,276 61.7% Other general revenues 1,109,734 280,386 829,348 295.8% Total governmental activities 43,224,869 38,242,539 4,982,330 13,0% I Changes in net assets $ 13,266,369 $ 11,631,387 $ 1,634,982 14.1% I Net Assets - Beginning of Year (as Restated) 494,135,391 481,132,095 13,003,296 2.7% Prior Period Adjustment (332,738) 1,371,909 (1,704,647) (124.3%) Net Assets - End of Year $507,069,022 $494,135,391 $12,933,631 2.6% I 5 CITY OF DUBLIN dJJ ~ Mc2 I I I I I I . I i . I . I I I I I I n Management's Discussion and Analysis (MDA) June 30, 2007 Revenues by Source (In Millions) Total Revenues $88.6 Million Sales Tax - 15.8% $14.0 Other Taxes - 4.2% $3.8 Other Revenues - 5.8% $5.2 Charges for Services - 18.8% $16.7 Property Taxes - 22.9% $20.3 Contri butionsl Grants - 32.5% $28.8 Expenses By Program (In Millions) Total Expenses - $75.4 Million Community Development - 14.8% $11.2 General Government - 11.8% $8.9 Cul ture and Leisure - 18.7% $14.1 Health and Welfare - 2.4% $1.7 Highways and Streets - 22.8% $17.2 6 Public Safety - 29.6% $22.3 I I I I I I I I I I I I I I I I I I I 02/ ~J'702 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2007 Governmental activities increased the City's net assets by $13.2 million, thereby accounting for all of the total growth in the net assets ofthe City. Key elements ofthis increase are as follows: . The City collected $8.6 million in development impact and housing in lieu fees in its Governmental funds, which will be used to fund current and future streets and parks improvements and development of new affordable housing opportunities. . During Fiscal Year 2006-2007, the City transferred $1.5 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 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 new commercial and residential growth that occurred during the last few fiscal years. 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. 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-seven 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, for the Traffic Impact Fees, Public Facilities Fees and Fire Impact Fees Capital Project Funds and for the Housing and Noise Mitigation Special Revenue Fund. These funds 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-two 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. 7 CITY OF DUBLIN (Ad-- ~ Management's Discussion and Analysis (MDA) June 30, 2007 )'1 c2 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. These funds are also used to collect funds for future retiree medical costs, which are then transferred to a trust. In Fiscal Year 2006-2007, the City established a component related to the pre-payment of the Public Employees Retirement System side fund obligation. The City uses internal service funds to account for its fleet of vehicles, computer systems, other furniture and equipment, certain retiree 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 five 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 fiduciary fund section consists of an Agency Fund and an Other Post- Employment Benefit (OPEB) Trust Fund. The Agency Fund is related to the City of Dublin role 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. The OPEB Trust Fund represents the City participation in the CalPERS Retiree Health Benefits Trust, to pre-fund retiree health benefits. In Fiscal Year 2006-2007 the City transferred $5.5 million to the irrevocable trust to provide retiree medical benefits. The City will be making future contributions based upon the calculations of an actuarial study. These fiduciary activities are excluded from the City's fund financial statements because these assets cannot be used to finance operations. The activity for these funds, however, is provided for in a separate combining statement contained elsewhere in this report. FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As of June 30, 2007, the City's governmental funds reported combined ending fund balances of $100 million, an increase of $2.9 million over the prior year. The City General Fund actually had an increase of $7.4 million, which was partially offset by: a decrease of $886,000 in the Traffic Impact Fee Fund; a decrease of $2.0 million in the City's Public Facility Fee Capital Projects Fund; and a decrease of $2.7 million in the Housing and Noise Mitigation Special Revenue Fund. Approximately $1.0 million in increases occurred in the City's other governmental funds. The increase in combined ending fund balances is primarily attributable to lower than expected General Fund expenditures as well significant growth in property tax revenue. The following provides a more detailed financial analysis by fund type. 8 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I oP3 ~/ 1'102 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2007 GENERAL FUND The General Fund is the chief operating fund of the City. At the end of Fiscal Year 2006-07, unreserved fund balance of the General Fund was $52.6 million and total fund balance of the General Fund was $58.3 million. As discussed in Note 8 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 2006-07, the General Fund revenues exceeded its expenditures by $7.5 million. The primary reasons for the variance were due to lower than anticipated operating costs and CIP expenditure timing extended beyond the end ofthe Fiscal Year, as well as growth in key revenues. Significant changes in Revenues and Expenditures that affected this increase in General Fund balance are discussed below: a. Revenue Highlights Actual Revenues in the General Fund were over its final budget by approximately $2.8 million primarily due to the following: Property Taxes increased over the prior year primarily due to the new residential and commercial units (mostly in Eastern Dublin) constructed in Fiscal Year 2005-06 and included for the first time on the 2006-07 tax roll. Also, the State of California had shifted local property tax for use towards State funded programs in previous years. The portion of the shift referred to as ERAF III was no longer transferred to the State beginning in 2006-2007. The City's taxable assessed value increased from $6.4 billion in Fiscal Year 2005-06 to $7.4 billion in Fiscal Year 2005-06, a 16.7% increase over the prior Fiscal Year. The taxable assessed value on the property in Eastern Dublin will continue to increase as new residential and commercial units are constructed by developers. Because significant development is occurring on land that was previously undeveloped the growth in assessed value can be dramatic. In addition, the City continued to receive additional property tax payments in lieu of a portion of vehicle license fees previously received from the State of California. Taxes Other Than Property remained relatively flat compared to the prior year. The total change was a decrease of approximately $37,000 representing approximately two tenths of a percent change. With sales tax collections comprising the largest revenue source in this category the lack of growth is reflective of economic trends and the lack of any significant increase in the number retail outlets. This decrease was offset by an increase in Transient Occupancy Taxes collected due to an increase in occupancy rates at the City's Hotels over the prior Fiscal Year and an increase in franchise taxes collected resulting from the residential growth occurring within the City. Licenses and Permits decreased from the prior year due to a reduction in the number of building permits issued. 9 dLi~' /10< CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2007 Revenue from Use of Money and Property increased from the prior year primarily due to increased interest rates and an unrealized gain in the market value of the investments held in U.S. governmental securities. The City anticipates holding all of these investments until maturity, thereby foregoing any actual increase on a cash basis. The City has recorded the amount of the change in market value on a separate line and reserved fund balance. Excluding these market value adjustments, the City's actual interest earnings received increased over the prior year due to an increase in the rate of return earned on the City's investments. Intergovernmental Revenues are higher than in the prior year due to the receipt of a one time reimbursement grant payment from the State of California for the Shannon Center Reconstruction Project. Similarly the 2005-2006 amount also included a one-time payment of Vehicle License fees, so the difference does not appear as significant. Charges for Services are higher than in the prior year resulting from additional reimbursements received from Alameda County for fire service calls to the Santa Rita County jail as well as increased fees collected for zoning, plan check, and inspection fees as a result of fee schedule adjustments. Other Revenues showed an increase from the previous year due to reimbursements received from utilities for expenditures incurred on the undergrounding of utilities on a portion of Dublin Boulevard and an reporting of special event sponsor contributions within this category. b. Expense Highlights General Fund Actual expenditures were under its final budget by $7.0 million largely due to: capital projects being carried over to Fiscal Year 2007-08; lower than expected use of contract personnel in the Planning and Building divisions; and lower than expected costs incurred for contract police services. 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. After taking into account these adjustments, actual expenditures were $7.0 million lower than final budget amounts. Ofthe total, $4.5 million related to either capital projects whose final costs were lower than were originally anticipated or were carried over to Fiscal Year 2007-2008. Most of the other budget to actual variances were due to delays in development occurring within the City (some of which will be carried over to Fiscal Year 2007-2008), department salary and benefit savings and lower than anticipated costs for contract public safety services. 10 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2007 CAPITAL PROJECTS AND SPECIAL REVENUE FUNDS J6~ /102 The City's other major funds consist of the Traffic Impact Fees, Public Facilities Fees and Fire Impact Fees Capital Project funds and the Housing and Noise Mitigation Special Revenue Fund. These funds account for fees received from developers due to the impacts placed on the City from their new developments or to meet the City's affordable housing requirements. The funds received from developers are used to expand affordable housing opportunities within the City, or for required infrastructure, including additional streets, parks, public and fire station facilities. At the end of Fiscal Year 2006-07, total fund balance ofthese funds was $36.5 million, as listed below: Fund Name Traffic Impact Fees Public Facilities Fees Fire Impact Fees Housing and Noise Mitigation Fees Total Beginning Fund Balance $19,557,799 11,416,479 (1,893,598) 13,043,062 $42,123,742 Change for Fiscal Year ($886,443) (2,072,883) 101,836 (2,686,606) ($5,544,096) Ending Fund Balance $18,671,356 9,343,596 (1,791,762) 10,356,456 $36,579,646 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. The negative change in fund balance for all funds listed was due expenditures for planned projects exceeding the amount collected for the year. The capital project fund revenues collected during the year and existing fund balances were used to pay for the following expenditures during Fiscal Year 2006-07: Traffic Impact Fees · Partial design of two significant projects: the Fallon Road Interchange; and Scarlett Drivellron Horse Extension · Design, purchase of right of way, and initiation of construction for the Dougherty Road Widening project. · Final payment for the Dublin Boulevard widening from Village Parkway to Sierra Court. Public Facilities Fees · A portion of the acquisition of land to be added to the Heritage Park. · Purchase of water connections to be included in the future Fallon Sports Park · Design and construction of East Dublin Neighborhood Parks. PROPRIETARY FUNDS The City's proprietary funds (i.e. internal service funds, consisting of the Equipment Replacement, Fire Equipment Replacement, Building Replacement; PERS Side Fund and Retiree Health Care Internal Service Funds) provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets in the City's proprietary funds at June 30, 2007 totaled $2.7 million, as listed on the following page: 11 ~ ~ I 70Z CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2007 Fund Name Equipment Replacement Fire Equipment Replacement Building Replacement PERS Retirement Side Fund Obligation Retiree Health Care Total Beginning Fund Balance $2,272,945 1,385,900 1,632,400 o 4,464,762 $9,756,007 Change for Fiscal Year $431,640 295,023 217,467 (3,569,754) (4,464,762) ($7,090,386) Ending Fund Balance $2,704,585 1,680,923 1,849,867 (3,569,754) o $2,665,621 The City Council has designated the entire $2.7 million for future replacement of equipment, vehicles and building improvements and funding of future retiree costs. Significant changes occurred in the Retiree Health Care Fund, due to the transfer of monies collected in the Internal Service Fund to an irrevocable trust for the payment of future retiree medical expenses. Also in 2006-2007, the City pre- paid an obligation owed to the State of California Public Employees Retirement System (CaIPERS). The account is referred to as the "Side Fund" which was a supplemental assessment incurred when CalPERS forced small agencies to have rates set as part of an agency pool, rather than by individual agency. The General Fund was used to advance the funds necessary to pre-pay this obligation. The internal service fund will be used to track the repayment to the General Fund, based on a percentage of payroll contributed each year. The City expects to pay less over time than it would have with the obligation financed as part of the CalPERS contribution rate. CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets The City's investment in capital assets for its governmental activities as of June 30, 2007, amounts to $399.6 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 $11.7 million (3.0%). Governmental Activities ITEM June 30, 2007 June 30, 2006 $ CHANGE % CHANGE Land $157,756,897 $149,748,902 $8,007,995 5.3% Streets right of way 29,374,557 29,374,557 0 0.0% Construction in Progress 7,188,098 7,545,520 (357,422) (4.7%) Infrastructure 310,907,968 288,358,863 22,549,105 7.8% Buildings and Improvements 57,245,108 57,045,042 200,066 0.4% Machinery and Equipment 6,431,411 6,241,588 189,823 3.0% Less Accumulated (169,272,632) (150,426,329) (18,846,303) Depreciation 12.5% Total $399,631,407 $387,888,143 $11,743,264 3.0% 12 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2007 d11''7~ Selected major capital activities undertaken during the current fiscal year included the projects listed below: Capital Project Status of Project Dublin Blvd Widening - Village Parkway to Sierra Court Initial Acquisition of Heritage Square Center for Heritage Park 2007 Park Play Area Renovations - Alamo Creek Doughert Hills Do Park Shannon Center Reconstruction Dougherty Road 1 Dublin Blvd Intersection Improvements East Dublin Neighborhood Parks Fallon Sports Park Completed Com leted Com leted Completed In Progress In Progress In Pro ress In Progress Fiscal Year 2006-2007 Ex enditures $5,291,113 $8,007,996 $123,838 $541,640 $1,313,868 $3,296,600 $487,307 $138,980 In addition, approximately $15.7 million of street improvements were dedicated to the City by developers during Fiscal Year 2006-2007. Additional information on the City's capital assets can be found in Note 5 of this report. Long-term debt At the end of Fiscal Year 2006-07, 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 $279.4 million. Additional information on long-term debt is located in note 6 of this report. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS Given the state of the local economy, caution was exercised in developing the City's budget for Fiscal Year 2007-08. The City's adopted budget for Fiscal Year 2007-08 for all funds was $108.7 million, which includes an appropriation of $53.0 million for operations, $48.3 million for Capital Projects and a $6.0 million set aside to reserves. The amount budgeted for operations represents an increase of approximately 11 % over Fiscal Year 2006-07 and is primarily due to projected increases in personnel costs and contract public safety services necessary to provide services in a growing community. Major Capital Projects funded for Fiscal Year 2007-2008 include work on the following capital projects: . Building Permit and Accounting System Replacement . Shannon Community Center Reconstruction . Dublin Ranch Neighborhood Parks . Completion of Property Acquisition required to expand Heritage Park . Fallon Sports Park Design . Eastern Dublin Arterial Street Improvements . Construction ofImprovements to Fallon Road Interstate 580 Freeway 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. 13 ~ ~ Jj~ CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2007 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, CA 94568. A copy of this financial report is also located at the City's website - www.ci.dublin.ca.us. 14 I I I I I I I I I I I I I I I I I I I ,,2qB1..~I~ FINANCIAL STATEMENTS I I I I I I I I I I I I I I I I I I I 15 16 30 ~ )702 I I I I I I I I I I I I I I I I I I I This page intentionally left blank. 2, {~J'1oL GOVERNMENT-W DE FINANCIAL STATEMENTS I I I I I I I I I I I I I I I I I I I 17 18 2>~ 1l1d I I I I I I I I I I I I I I I I I I I This page intentionally left blank, I City of Dublin 33 ~ I "102... I Statement of Net Assets June 30, 2007 I Governmental Activities I ASSETS Current assets: Cash and investments $ 109,719,695 I Restricted cash and investments 1,692,262 Accounts receivable 4,441,400 Accrued interest receivable 1,094,053 Prepaids 13,273 I Other assets Total current assets 116,960,683 Noncurrent assets: I Notes Receivable 5,473,334 Long-term receivable 1,250,000 Capital assets (non-depreciable): Land 157,756,897 I Streets right of way 29,374,557 Construction in progress 7,188,098 Capital assets (depreciable): Infrastructure 310,907,968 I Buildings and improvements 57,245,108 Machinery and equipment 6,431,411 Less accumulated depreciation (169,272,632) I Total capital assets 399,631,407 Total noncurrent assets 406,354,741 Total assets 523,315,424 I LIABILITIES Current liabilities: Accounts payable 11,451,221 I Accrued wages 218,941 Deposits payable 1,443,668 Unearned revenue 130,037 Due to Other 1,616,572 I Contract retention payable 209,581 Compensated absences 96,171 Liabilities insurance claims payable 252,548 Total current liabilities 15,418,739 I Noncurrent liabilities: OPEB obligations 273,470 Compensated absences 554,193 I Total noncurrent liabilities 827,663 Total liabilities 16,246,402 NET ASSETS I Invested in capital assets 399,631,407 Restricted for: Public safety 2,237,532 I Impact fee projects 28,258,808 Highways and streets 3,914,424 Health and welfare 11,237,164 Total restricted 45,647,928 I Unrestricted 61,789,687 Total net assets $ 507,069,022 See accompanying Notes to Basic Financial Statements, I 19 City of Dublin Statement of Activities and Changes in Net Assets For the year ended June 30, 2007 34 ~r1"" I I I Net (Expenses)/ I Revenue and Changes in Net Assets Expenses Charges for Services Program Revenues Operating Capital Contributions Contributions and Grants and Grants Governmental Activities Total Program Revenues Governmental activities: General government $ 8,866,758 $ 208,247 $ $ $ 208,247 $ (8,658,511) Public safety 22,306,240 2,284,955 348,427 180,621 2,814,003 (19,492,237) Highways and streets 17,182,208 745,727 1,616,269 19,542,179 21,904,175 4,721,967 Health and welfare 1,816,800 2,483,619 140,929 186,640 2,811,188 994,388 Culture and leisure 14,080,040 1,508,752 6,064,290 7,573,042 (6,506,998) Community development 11,157,417 9,432,854 707,454 10,140,308 (1,017,109) Total governmental activities $ 75,409,463 $ 16,664,154 $ 2,813,079 $ 25,973,730 $ 45,450,963 (29,958,500) General revenues: Taxes: Property taxes Sales tax Vehicle license taxes Other taxes 20,266,216 14,025,869 261,276 3,508,587 38,061,948 181,030 928,704 4,053,187 43,224,869 13,266,369 493,802,653 $ 507,069,022 Total taxes Intergovernmental (unrestricted) Miscellaneous Unrestricted investment 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 I I I I I I I I I I I I I I I 3 ~!f--I '1~ FUND FINANCIAL STATEMENTS I I I I I I I I I I I I I I I I I I I 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 Public Art 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 Public Art projects within the City. 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. The Housing and Noise Mitigation Special Revenue Fund- is used to account for 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. 21 3G ~ /1.,< I City of Dublin Balance Sheet I Governmental Funds June 30, 2007 I Special Revenue Capital Projects Funds I Housing and Traffic Public Noise Impact Facilities General Mitigation Fees Fees I ASSETS Cash and investments $ 60,609,804 $ 10,380,797 $ 16,971,360 $ 9,608,168 Restricted cash and investments 1,692,262 I Accounts receivable 3,753,356 294,530 Accrued interest receivable 1,073,527 20,526 Notes Receivable 5,473,334 I Due from other funds 97,419 Prepaids 9,306 Other Assets I Long-term receivables 1,250,000 Advances to other funds 5,361,516 Total assets $ 70,904,928 $ 15,854,131 $ 20,228,678 $ 9,608,168 I LIABILITIES AND FUND BALANCES I Liabilities: Accounts payable $ 9,850,695 $ 7,481 $ 547,093 $ 240,562 Accrued wages and other payroll liabilities 218,941 I Deposits payable 1,426,808 16,860 Contract retention payable 119,803 24,010 Liabilities insurance claims payable 252,548 I Deferred Revenue 130,037 5,473,334 Due to other funds Due to Other 606,343 1,010,229 Advances from other funds I Totalliabilities 12,605,175 5,497,675 1,557,322 264,572 Fund Balances: I Reserved 5,741,942 10,356,456 18,671,356 9,343,596 Unreserved, designated reported in: General fund 52,557,811 I Unreserved, undesignated, reported in: Capital projects funds Total fund balances 58,299,753 10,356,456 18,671,356 9,343,596 I Totalliabilities and fund balances $ 70,904,928 $ 15,854,131 $ 20,228,678 $ 9,608,168 I I See accompanying Notes to Basic Financial Statements, I 22 This page intentionally left blank. 39:5 Q',~/l~ I I I I I I I I I I I I I I I I I I I 24 I City of Dublin Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets June 30, 2007 I I .3'1 1 N~ I Fund Balances of Governmental Funds Amounts reported for governmental activities in the statement of net assets are different because: I Capital assets used in governmental activities are not current financial resources and therefore are not reported in the Governmental Funds Balance Sheet. I Non depreciable assets (Land and construction in progress) Depreciable buildings, property, equipment and infrastructure, net Total capital assets I Compensated absences payable, are not due and payable in the current period and therefore are not reported in the governmental fund financial statements. I OPEB obligations are not due and payable in the current period and therefore are not reported in the governmental fund financial statements, I Deferred revenues recorded in Governmental Fund Financial Statements resulting from activities in which revenues were earned but funds were not available are reclassified as revenues in the Government-Wide Financial Statements, I I 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. I Net Assets of Governmental Activities I I I I I I See accompanying Notes to Basic Financial Statements, I 25 $ 99,993,037 185,725,828 165,616,458 351,342,286 (650,364) (44,013) 5,473,334 50,954,742 $ 507,069,022 40 ~ J 70( I City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balances I Governmental Funds For the year ended June 30, 2007 I Special Revenue Capital Projects Funds Housing and Traffic Public I Noise Impact Facilities General Mitigation Fees Fees REVENUES: I Property taxes $ 20,146,741 $ $ Sales tax 14,025,869 Other taxes 3,508,587 I Intergovernmental 1,149,759 Licenses and permits 2,572,069 Charges for service 8,015,063 31,115 I Interest 3,575,137 604,093 811,213 623,011 Use of property 203,240 Fines and forfeitures 140,235 Developer fees 186,640 2,816,043 5,322,423 I Other revenue 928,707 3,140 Special assessments Total revenues 54,265,407 824,988 3,627,256 5,945,434 I EXPENDITURES: Current: I General government 5,480,365 59,937 Public safety 21,275,006 Highways and streets 2,003,668 I Health and welfare 40,555 Culture and leisure 6,874,596 Community development 7,698,894 458,257 I Capital outlay: General 377,026 Health and welfare Community improvement 95,672 I Parks 2,619,196 8,018,317 Streets 308,244 4,497,680 Total expenditures 46,773,222 518,194 4,497,680 8,018,317 I REVENUES OVER (UNDER) EXPENDITURES 7,492,185 306,794 (870,424) (2,072,883) OTHER FINANCING SOURCES (USES): I Transfer in 59,196 6,600 23,506 Transfer out (23,505) (39,525) Total other financing sources (uses) 35,691 6,600 (16,019) I NET CHANGE IN FUND BALANCES 7,527,876 313,394 (886,443) (2,072,883) FUND BALANCES: I Beginning of year, as restated 50,771,877 10,043,062 19,557,799 11,416,479 End of year $ 58,299,753 $ 10,356,456 $ 18,671,356 $ 9,343,596 I See accompanying Notes to Basic Financial Statements, I 26 I q / ~)1~ I I Capital Projects Funds Fire Non-Major I Public Art Impact Governmental Fees Fees Funds Total I $ $ $ 119,472 $ 20,266,213 433,043 14,458,912 3,508,587 I 1,696,177 2,845,936 2,572,069 1,430,806 9,476,984 I 6,313 221,182 5,840,949 203,240 201,863 342,098 I 112,543 180,622 8,618,271 28,687 960,534 716,144 716,144 I 118,856 180,622 4,847,374 69,809,937 I 78,786 5,619,088 873,306 22,148,312 722,931 2,726,599 I 1,585,642 1,626,197 6,874,596 16,560 8,173,711 I 377,026 75,526 75,526 I 95,672 74,294 10,711,807 726,186 5,532,110 I 78,786 4,074,445 63,960,644 118,856 101,836 772,929 5,849,293 I 1,097 90,399 (27,369) (90,399) I (26,272) 118,856 101,836 746,657 5,849,293 I 125,000 (1,893,598) 4,123,125 94,143,744 $ 243,856 $ (1,791,762) $ 4,869,782 $ 99,993,037 I I 27 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, 2007 Lfd ~/7oL I I I Net Change in Fund Balance - Total Governmental Funds $ 5,849,293 I 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: I 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 $1,621,312, I 13,202,532 I 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, I 15,914,922 Changes in long term compensated absences in governmental activities are not reported in governmental funds, I (27,795) 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 $2,596,439. I (16,399,064) I Accrual of OPEB obligations does not require the use of current financial resources and therefore is not recorded as expenditures on the governmental fund financial statements. (14,077) I Revenues that have not met the revenue recognition criteria in the Fund Financial statements are recognized as revenue in the Government-Wide Financial Statements, This amount represents the change in deferred revenue from prior year, I 2,473,334 I 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, (7,732,776) I Change in Net Assets of Governmental Activities $ 13,266,369 I I I See accompanying Notes to Basic Financial Statements, I 28 I City of Dublin 4~ ~ /70( I Statement of Net Assets Proprietary Funds June 30, 2007 I I Governmental Activities Internal Service I Funds ASSETS Current assets: I Cash and investments $ 6,486,207 Prepaid items 3,967 I Accounts receivable 2,310 Total current assets 6,492,484 Capital Assets: I Land 6,842,037 Construction in progress 1,751,687 Buildings and improvements 50,813,039 I Machinery and equipment 5,747,865 Less: accumulated depreciation (16,865,507) I Total capital assets 48,289,121 Total assets 54,781,605 I LIABILITIES Current liabilities: I Accounts payable 27,652 Total current liabilities 27,652 Noncurrent assets: I Advance from other funds 3,569,754 OPEB Obligation 229,457 Total noncurrent liabilities 3,799,211 I Totalliabilities 3,826,863 I NET ASSETS Invested in capital assets 48,289,121 Unrestricted 2,665,621 I Total net assets $ 50,954,742 I I See accompanying Notes to Basic Financial Statements, I 29 Operating income (loss) lflf i /7cZ I I I Governmental I Activities Internal Service Funds I $ 1,786,971 I 1,475,322 3,262,293 I 459,550 I 3,569,754 5,179,702 2,263,704 I 11,472,710 (8,210,417) I 477,641 I 477,641 (7,732,776) I 58,687,518 I $ 50,954,742 I I I I I I City of Dublin Statement of Revenues, Expenses and Changes in Net Assets Proprietary Funds For the year ended June 30, 2007 OPERATING REVENUES: Charges for services Other revenue Total operating revenues OPERATING EXPENSES: Supplies and services PERS Retirement OPEB expenses Depreciation Total operating expenses NONOPERATING REVENUES: Interest income Total nonoperating revenues Change in net assets NET ASSETS: Beginning of year End of year See accompanying Notes to Basic Financial Statements, 30 I City of Dublin Statement of Cash Flows Proprietary Funds For the year ended June 30, 2007 If S 1/70( I I I Governmental Activities Internal Service Funds I CASH FLOWS FROM OPERATING ACTIVITIES: I Receipt from customers Payments to suppliers Other $ 1,780,694 (5,931,571) 1,475,322 (2,675,555) I Net cash provided (used) by operating activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: I Acquisition of capital assets Net cash provided (used) by capital and related financing activities (1,621,314) (1,621,314) I CASH FLOWS FROM INVESTING ACTIVITIES: Interest received I Net cash provided (used) by investing activities 477,641 477,641 I Net increase (decrease) in cash and cash equivalents (3,819,228) CASH AND CASH EQUIVALENTS: I Beginning of year End of year 10,305,435 $ 6,486,207 I RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: I 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 Prepaid items Accounts payable OPEB Obligation Net cash provided (used) by operating activities $ (8,210,417) I 2,263,704 I 3,567,444 (3,967) (521,776) 229,457 (2,675,555) I $ I I See accompanying Notes to Basic Financial Statements. 31 City of Dublin Statement of Fiduciary Net Assets Fiduciary Fund June 30, 2007 y ~ 0.} t1~ I I I ASSETS OPEB Trust Fund Agency Fund $ $ 219,887 5,468,611 171,889 229,457 666 5,698,068 $ 392,442 I Cash and investments Restricted cash and investments Contributions receivable I I Total assets LIABILITIES I Due to bondholders Totalliabilities $ $ 392,442 392,442 I Net Assets Held in Trust for Other Post Employment Benefits $ 5,698,068 I I I I I I I I I I See accompanying Notes to Basic Financial Statements. I 32 I City of Dublin I Statement of Changes in Fiduciary Net Assets Fiduciary Funds For the year ended June 30, 2007 I I Additions: I Contributions Employer Plan member I Total contributions I Investment earnings: Interest I Deductions: OPEB expense (insurance premiums) I Transfers from City I Change in Net Assets Net Assets - Beginning of Year I Net Assets - End of Year I I I I I I I I See accompanying Notes to Basic Financial Statements, 33 411 /7:2 OPEB Trust Fund $ 5,698,068 5,698,068 $ 5,698/068 This page intentionally left blank, 49, ~ 11<><- I I I I I I I I I '1 I I I I I I I I I 34 I I I I I I I I I I I I I I I I I I I City of Dublin Index to Notes to Basic Financial Statements For the year ended June 30, 2007 /f1 rojJ'/~ Page 1. Summary of Significant Accounting Policies......................... ........... ........................ .......... ............ .............. ....... 38 2. Cash, Cash Equivalents and InvestInents ............................................................................................................. 46 3. Notes Receivable.................................................................................................................................................... ... 50 4. Interfund Transactions............................................................................................................................................. 51 5. Capital Assets...................................................................................................................................................... ...... 53 6. Special Assessment City Debt (Non-Obligatory)................................... ...................................... ...... ........... ....... 54 7. Joint Powers Agreements........................................................................................................................................ 54 8. Fund Equity.................................................................................................................................................. ............. 55 9. Risk Management............................................................................................................................................... ...... 56 10. Compensated Absences........................................................................................................................................... 57 11. Pension Plan......................................................................................................................... ...... ....................... ........ 58 12. Post Employment Health Care Plan ...................................................................................................................... 59 13. CommitInent and Contingent Liabilities.............................................................................................................. 64 14. Deficit Fund Balance................................................................................................................................................ 66 15. Prior Period AdjustInents........................................................................................................................................ 67 35 This page intentionally left blank. 5C? d ) 7~ I I I I I I I I I I I I I I I I I I I 36 I I I I I I I I I I I I I I I I I I I NOTES T;~1~I1~ FINANCIAL STATEMENTS 37 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2007 5~ 1/'70( I I I I I I I I I I' I I I I I I I I I 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, 2007, was 43,630, including prisoners housed at the Alameda County Sheriff's Deparbnent 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, 2007, the City's staff was comprised of 88 full- time employees who were responsible for City-provided services. In addition, the City employs approximately 85 seasonal recreation personnel. The City provides many traditional municipal services through contracts with both public and private agencies. Approximately 130 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. DII is governed by the same governing board as the City plus the City Manager and Administrative Service Director and is dependent on the City for its cash flows. The financial activity of DII 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 DII 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 I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 53 ~/IV 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 when earned and expenses are recorded in the period in which the liability is incurred, regardless of the timing of the related cash flows. 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 eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payab1es, 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 General Fund, Housing Noise Mitigation Special Revenue Fund, the Traffic Impact Fee Capital Projects Fund, and the Public Facilities Fees Capital Project Fund as major funds because they 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 Art 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 (generally 60 days after year-end) are property taxes, sales taxes, transient occupancy taxes, interest revenues, charges for services, and courts fines. 39 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 54 ~ t7~ I I I I I I I I I I I I I I I I I I I 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements, Continued (when measurable). Licenses, use of property, and permit revenues are not susceptible to accrual because they generally are not measurable until received in cash. 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 Housing and Noise Mitigation Special Revenue Fund - is used to account for in-lieu housing fees and noise mitigation 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. 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 Profect 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 Public Art Capital Projects Fund - is used to account for fees received from developers of properties, which can only be used for the purchase, design, development, and construction of Public Art projects within the City. 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. 40 I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30,2007 5'51 jry~ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements, Continued 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. 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 fiduciary fund consists of one agency and one trust fund. OPEB Trust Fund is used to account for the assets and investments held by the California Public Employees' Retirement System (CALPERS) on behalf of the City of Dublin employees eligible to received Other Post Employment Benefits (OPEB) upon retirement from the City. This is an irrevocable trust fund and was established on June 29, 2007 to conform to the requirements of Governmental Accounting Standards Board Statement No. 43. The Dublin Boulevard Extension Special Assessment District is an agency fund, which uses the accrual basis of accounting to account for amounts held for debt service on the Dublin Boulevard Extension Project. 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. 41 Building and improvements Machinery and equipment Infrastructure Streets 20-38 Years 3-15 Years 20-75 Years 50 ,NeZ I; I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Capital Assets 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 usefu11ife 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. 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. 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, /I 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 I I I I I I I I I I I I I I I I I I II City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 61 ~ 1'7..'< 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 · Foreign Currency Risk · Credit Risk D Overall D Custodial Credit Risk D 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. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset- Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates. 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 funds have been placed in a trust administered by ICMA Retirement Corporation and are not available to the City's general creditors. 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 the collection of all delinquencies. The City receives proportionate shares of prior year collections including interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. The property tax assessments are formally due on November 1 and February 1, and become delinquent as of December 10 and April 10, respectively. Taxes become a lien on the property effective January 1 of the preceding year. 43 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. 6g,~ {'lot I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Post Employment Health Care Benefits The City provides certain health care benefits for retirees, including those previously employed by the Dougherty Regional Fire Authority (DRFA) as required under a contract signed with PERS. All former employees who retire with the City under PERS are eligible for these benefits. GASB 45 requires public agencies to estimate their Other Post Employment Benefits (OPEBs) and account for them future liability. Rather than use the "pay as you go" system and account for retiree benefits as they are due, GASB 45 requires the agencies to account for the expenses as benefits accrue for the employees. The City engaged in an Actuarial Study Update with Bartel Associates, LLC and based on the 2007 actuarial result, the use of the CALPERS trust will reduce City contribution towards Retiree Medical in the future. On June 29,2007 the City established an agreement with the California Public Employees' Retirement System (CALPERS) to set aside funds, accumulate, and distribute assets for the exclusive benefit of retirees and their beneficiaries. Plan assets are irrevocable and may not be used for any purpose other than funding post retirement health care. 1. Net Assets Government-Wide Financial Statements In the Government-Wide Financial Statements, net assets are classified in the following categories: 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. 44 I I I I I I I I I I I I I I I I I I I 611 J'7.< City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 1. Net Assets, Continued Fund Financial Statements, Continued 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 Culvert Maintenance is the portion of fund balance to be set aside for the improvement and maintenance agreement for the Box Culvert to channel drainage from Dublin Ranch development. 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. 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 Public Art includes amounts restricted for use on programs that are funded by Public Art developer impact fees. Reserved for Noise Mitigation includes amounts restricted for use on Noise Mitigation programs that are funded by the Housing and Noise Mitigation developer impact fees. Reserved for Non Residential Housing In-Lieu includes amounts restricted for use on programs that are funded by the Housing and Noise Mitigation developer impact fees. Reserved for Affordable Housing includes amounts restricted for use on affordable housing programs that are funded by the Housing and Noise Mitigation developer impact fees. Reserved for capital improvement projects 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 authorized expenditures represents the amount not specifically identified with an individual project. All Other Designations represents the amount of resources set aside to fund or partially fund the various projects. 45 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 Go 1110Z I I I I I I I I I I I I I I I I I I I 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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. K. New Pronouncements In 2007, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statement: );. GASB Statement No. 43, Financial Reporting for Postemployment Benefit Plans (OPEB) other than Pension Plans- the Statement establishes uniform financial reporting standards for OPEB plans. The standards in this statement apply for OPEB Trust Funds included in the financial reports of Plan sponsors or employers, as well as for the stand-alone financial reports of OPEB plans or the public employee retirement systems, or other third parties, that administer time. 2. CASH, CASH EQUIV ALENTS 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 At June 30, 2007, the carrying amount of the City's cash deposits was a negative $3,462,960. Deposits in transit were $82,973. The total outstanding checks were $4,086,175. Bank balances before reconciling items were $540,243 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. 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 collateralization requirements. 46 I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 M 117~ 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued A. Cash Deposits, Continued The City follows the practice of pooling cash and invesbnents 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 invesbnents is allocated on an accounting period basis to the various funds based on the period-end cash and invesbnent balances. Interest income from cash and invesbnents with fiscal agents is credited directly to the related fund. B. Investments Under the provisions of the City's invesbnent policy, and in accordance with Section 53601 of the California Government Code, the City is authorized to invest or deposit in the following invesbnents: . Bankers' Acceptances . Commercial paper · Local Agency Invesbnent Fund · Negotiable certificates of deposit . Repurchase agreements . Mutual Funds · Securities of the Federal government or its agencies In accordance with GASB Statement No.3!, Accounting and Financial Reporting for Certain Investments and for External Investments Pools, invesbnents should be stated at fair value. The City reported its invesbnents at fair value. For the year ended June 30, 2007, the unrealized gain on invesbnents amounted to $ 954,528. Interest and invesbnent earnings before recognition of unrealized gain were $4,879,045 as of June 30, 2007. C. Summary of Cash and Investments The following is a summary of pooled cash and invesbnents, including restricted cash and invesbnents at June 30, 2007: Government-Wide Statement of Fiduciary Net Assets Funds Governmental Statement of Activities Net Assets Total Cash and investments $ 109,719,695 $ 219,887 $ 109,939,582 Restricted cash and investments 1,692,262 5,640,500 7,332,762 Total $ 111,411,957 $ 5,860,387 $ 117,272,344 47 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 c;;< ~t'ry.,( I I I I I I I I I I I I I I I I 2. CASH, CASH EQUIV ALENTS AND INVESTMENTS, Continued D. Risks Disclosures Interest Rate Risk. Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. 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, 2007, the City's pooled cash and investments had the following maturities: Maturity Percentage of Investment 27% 46% 27% Less than one year One to three years Three to five years The average life of the federal security portfolio was 2.5 years. Deposits and investments held by the City at June 30, 2007 are summarized below: Investment Type Fair Market Value City Treasury Deposits: Cash on hand Deposits with banks Total deposits $ 1,725 (3,462,960) (3,461,235) Investments: Federal Agricultural Mortgage Corporation Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Association Money Market/Mutual Funds California Local Agency Investment Fund Total Investments Total City Treasury 1,983,520 5,961,012 36,222,030 13,808,455 8,833,187 6,612,811 39,979,802 113,400,817 109,939,582 Cash with fiscal agents Total City and fiscal agents cash and investments 7,332,762 $ 117,272,344 Investments Maturities (in years) 1 year or less 1-5 years $ 1,725 (3,462,960) (3,461,235) $ 1,983,520 3,963,757 25,197,470 8,978,005 8,833,187 48,955,939 48,955,939 7,332,762 $ 56,288,701 Credit Risk. Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. At June 30, 2007, the City had the following investments credit risk ratings: The Credit Risk Ratings listed below meet or exceed the acceptable credit risk ratings established in the City's investment policy and required, where applicable, by the California Government Code. 48 1,997,255 11,024,560 4,830,450 6,612,811 39,979,802 64,444,878 60,983,643 $ 60,983,643 I I I 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued D. Risks Disclosures, Continued 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 Cash with fiscal agents Credit Quality Ratings Moody's S&P Aaa Aaa Aaa Aaa Aaa Not Rated Not Rated G3 ~ /702 AAA AAA AAA AAA AAA Concentration of Credit Risk. The primary objectives, in order of priority, of the City's investment activities is be based on: 1) Safety; 2) Liquidity; 3) Yield; 4) Diversification. The table below identifies the investment types that are authorized by the City's investment policy or stipulated by the California Government Code. Authorized Investment Type United States Treasury Federal Agency Obligations Bankers Acceptances Commerical Paper Negotiable Certificates of Deposit Time Certificates of Deposit Money Market Mutual Funds State of CA Local Agency Invesbnent Fund (LAIF) California Asset Management Program (CAMP) Maximum Maturity None None 180 days 270 days None 365 days None None None Maximum Percentage of Portfolio None None 40% 25% 30% 10% 20% 75% None Maxinum Investment in One Issuer None 40% 20%* 10%** 20% CAonly None None None *Maximum callable securities 25% of the overall portfolio. **The amount invested in commercial paper of anyone issuer in combination with any other debt from that issuer shall not exceed 20 percent of the portfolio. Custodial Credit Risk. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Of the City's investments, $7,332,762 of securities is held by the fiscal agents not in the name of the City. As of June, 2007 there was $171,889 on deposit at US Bank for the Dublin Boulevard Extension Special Assessment District, $5,468,611 deposited with CALPERS for the City's Retiree Health Program, and $1,692,262 on deposit with Statewide Community Infrastructure Program (SCIP) instituted by the California Statewide Communities Development Authority (CSCDA) in 2002 to allow owners of property in participating cities and counties to finance the development impact fees that would be payable by property owners upon receiving development entitlements or building permits. 49 Revolving Home Loans Eden Senior Affordable Housing Loan Fairway Ranch Loan $ 136,454 2,336,880 3,000,000 t4 OJ Ne:( I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 2. CASH, CASH EQUIV ALENTS AND INVESTMENTS, Continued E. Investments in Local Agency Investment Fund The City valued its investments in LAIF as of June 30, 2007, 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 99.9545%, 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, 2007, 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. Typical Structured Notes are issued by most corporations and government sponsored, for example, the Federal National Mortgage Association and the Federal Home Loan Bank. 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, small business loans, or credit card receivables. . . As of June 30,2007, the City had $39,979,802 of market value invested in LAIF, which had invested 3.466% of the pool investment funds ($65,643,489,036), in Structured Notes ($774,000,000), and in Asset-Backed Securities ($1,501,103,000). The fair value of the City's position in the pool is materially equivalent to the value of the pool share. 3. NOTES RECEIVABLE The following table summarizes the notes receivable outstanding as of June 30, 2007: $ 5,473,334 Total Revolving Home Loans - As part of the City of Dublin First Time Homebuyer Loan Program (FTHLP), the City provides financial assistance, in the form of a deferred loan, for first time homebuyers within a certain income range to buy their first home in Dublin. Monthly payments of principal and interest are generally deferred until the homes are sold, in default, and in Market Rate homes, when the home owners refinance their primary mortgage. The outstanding amount due to the City as of June 30, 2007 was $136,454. 50 I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 ~5 ~/'7c< 3. NOTES RECEIV ABLE, Continued Eden Senior Affordable Housing Loan - On September 23, 2002 the City selected Eden Housing, Inc. as the developer for the affordable senior housing at the site of the former library located at 7606 Amador Valley Blvd This site also houses a senior center that the City constructed during fiscal year 2003-2004. On February 1, 2004, The City entered into an agreement and provided a loan in the amount of $2,248,248 to the Dublin Senior Limited Partnership to support the senior housing project. The interest on the outstanding principal balance of the loan is accrued at the rate of 3% simple interest per annum. The entire outstanding principal balance of the loan, together with the interest accrued shall be payable in full on February 8, 2059, the 55th anniversary of the Initial Disbursement Date February, 18 2004. Repayments commenced on June 1, 2006, and on the first day of each June, 60% of the Surplus Cash generated by the project during the previous calendar year are remitted to reduce the outstanding indebtedness. Any payment not paid when due shall bear interest at a rate equal to 10% annum from the due date until it is paid in full. The outstanding amount as of June 30, 2007 was $2,336,880. Fairway Ranch Loan - On December 1, 2003, the City entered into a loan agreement with the Dublin Ranch Senior Apartment LLP to support the Senior Housing and Multi Family Affordable Housing project at the Fairway Ranch development. The original amount of the loan was $4,500,000. The interest on the outstanding principal balance of the loan is accrued at the rate of 3% simple interest per annum. Principal and interest payments are due on October 12, 2008, October 12, 2009, October 12, 2010, the 48th, 60th, and 72nd month, respectively following the initial loan disbursement date of October 12, 2004. The City received an early payment on December 20, 2006 of $1,500,000 and $405,000 were received, for principal and interest, respectively. The outstanding amount as of June 30, 2007 was $3,000,000. 4. 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 and the Garbage Service Fund in the amounts of $66,439 and $30,980 respectively. When the reimbursement is received, normally shortly after year end, the interfund liability is liquidated. The following interfund balances existed at June 30, 2007: Due to other funds Due from other funds Major Fund General Fund Non Major Funds $ 97,419 Advances TolFrom During the 2004-2005 and 2005-2006 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. 51 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 Ck ~ t'7~ I I I I I I I I I I I I I I I I I I I 4. INTERFUND TRANSACTIONS, Continued Advances TolFrom, Continued During the fiscal year 2006-2007 Fiscal Year, the General Fund made a long term advance to the Internal Service Fund - CALPERS Side Fund for prepayment of the CALPERS Side Fund Obligation. The Side Fund was created in 2005 when CALPERS assigned agencies with less than 100 participants to a risk sharing pools. The Side Fund was the City's negative unfunded liability at the time the City assigned to the pool. As part of CALPERS Employer Contribution Rate, the City was scheduled to pay 4.319% of payroll for the next 17 years to eliminate the current side fund obligation. The advance will be repaid annually, calculating at the rate of 4.319% of the total salary, a saving from reduced Employer rate from 15.894% to 11.575%, recording as an Internal Service Fund retirement benefit expenditure with an offset to reduce the General Fund long term advance. The following interfund balances existed at June 30, 2007: Advances from other funds Advances to other funds Major Fund General Fund Fire Impact Fees Special Revenue Fund Internal Service Fund $ 1,791,762 3,569,754 Total $ 5,361,516 Transfers In/Out Interfund transfers for the year ended June 30,2007 were as follows: Transfers in: Major Funds Noise Mitigation Traffic Impact Transfers out: General Fund Fund Fees Fund Non Major Total General Fund $ $ $ 23,505 $ $ 23,505 Traffic Impact Fund 39,525 39,525 Non Major Funds 19,672 6,600 1,097 27,369 Total $ 59,197 $ 6,600 $ 23,505 $ 1,097 $ 90,399 Transfers In to the General Fund consists of a reimbursement in the amount of $19,672 from the Vehicle Abatement Fund for Vehicle Abatement services and a transfer of $39,525 of the remaining balance in the reserve account of the Village Parkway Sidewalk Widening Capital Project to the General Fund. 52 I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 010;/ 11~ I I I 4. INTERFUND TRANSACTIONS, Continued Transfers In/Out, Continued I Transfer In to the Housing and Noise Mitigation Fund in the amount of $6/600 was a reimbursement to Housing and Noise Mitigation Fund from the CDBG fund for administrative costs. Transfer In to the Traffic Impact Fees fund in the amount of $23/505 was a reimbursement of credit for prior year interest earnings from the General Fund. I Transfer In to the Gas Tax Fund in the amount of $1/097 from the FEMA Disaster Assistance fund received in fiscal year 2006-2007/ to reimburse expenditures relating to the prior year, fiscal year 2005-2006 winter storms in which disaster cost were expended. I I 5. CAPITAL ASSETS A. Government-Wide Financial Statements I Capital assets include 1and, buildings, and equipment used in City operations. Infrastructure includes roads, bridges, curbs, sidewalks, drainage systems, street and traffic 1ights, park improvements and other improvements used by all citizens. I The following is a summary of capital assets for governmental activities: Balance Prior Period Balance I July 1, 2006 Additions Deletions Transfers Adjustments June 30, 2007 Capital assets, not being depreciated: I Land $ 149,748,902 $ 8,007,995 $ $ $ $ 157,756,897 Streets rigth of way 29,374,557 29,374,557 Construction in progress 7,545,520 4,881,630 (5,239,052) 12,427,150 I Total capital assets, not being depreciated 186,668,979 12,889,625 (5,239,052) 199,558,604 Capital assets, being depreciated: I Infrastructure 288,358,863 17,501,899 5,047,206 305,860,762 Buildings and improvemetns 57,045,042 8,221 191,846 57,053,263 Vehicles and equipment 6,241,588 339,022 (149,199) 6,431,411 I Total capital assets, being depreciated 351,645,493 17,849,142 (149,199) 5,239,052 369,345,436 Less Accumulated depcreciation for I Infrastructure (134,393,326) (16,076,400) (150,469,726) Buildings and improvemetns (11,931,344) (1,994,505) (332,737) (14,258,586) Vehicles and equipment (4,101,659) (591,861) 149,199 (4,544,321) I Total accumulated depreciation (150,426,329) (18,662,766) 149,199 (332,737) (168,939,896) Total capital assets being I depreciated, net 201,219,164 (813,624) 5,239,052 (332,737) 200,405,540 Governmental activities capital assets, net $ 387,888,143 $ 12,076,001 $ $ $ (332,737) $ 399,631,407 I 53 General government Public Safety Highways and streets Culture and leisure $ 1,181,549 415,019 12,129,722 4,936,476 18,662,766 (J$ ~17-< I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 5. CAPIT AL 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 $ 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. 6. SPECIAL ASSESSMENT CITY DEBT (NON-OBLIGATORY) The Dublin Boulevard Extension Special Assessment District, formed within City limits, had outstanding debt with a balance of $1,061,000 at June 30, 2007. Proceeds of the debt, which was issued in 1991, 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 District. Activities of the District are reported in the Dublin Boulevard Extension Assessment District Agency Fund. 7. JOINT POWERS AGREEMENTS The City participates in joint ventures with other municipal entities through Joint Powers Agreements (JPAs) established under the Joint Exercise of Powers Act of the State of California. Toint Ventures The Cities of Dublin, P1easanton, 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 2006-2007 fiscal year debt service requirements was $44,074, based upon the statistics of live animals handled in the shelter in calendar year 2005 representing 13.89%of the total annual debt service payment. In addition, $207,883 was paid for the City's share of operating expenses and field service 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. 54 I I I I I I I I I I I I I I I I I I I 0'1 1 /7-< City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 8. 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: Reserved: Prepaid expenditures $ Cerretery endOWIlH1l: Culvert Maintenan:e Long-termadvan:es-Fire hnpact Fee Fund Long-termadvan:es-PERS Side Fund Recycling programs Public safety programs Street rnaintenan:e and conshuction Health and welfare programs Public Art Noise Mitigation NonResidential Housing In lieu Affordable housing Capital improverrent projects Total reserved Unreserved, designated: Erommic un:ertaint:y lliwntown openspace Of' canyovers Sl1anr-on Center Affordable Housing D:signated for authorized expenditures Total unreserved designated Unreserved, undesignated Total fund equity Gereral Fund Traffic Impact Fees Fire Impact Fees Housing and Noise Mitigation Non-lYfajor Furds Public Facilities Public Art Fees Fees 9,305 $ 6O,<XXJ 311,120 1,791,763 - $ - $ - $ - $ - $ 3,569,754 317,676 445,770 3,328,545 503,032 243,856 5,741,942 18,671,3.56 18,671,3.56 54717 361,618 8,444121 1,SOO,<XXJ 10,356,456 4,869,782 274,759 9,343,596 9,343,596 243,856 4970,722 1,378,235 523,951 2,356,353 1,<XXJ,<XXJ 44,328,550 54557,811 (1,791,762) $ 58,299,753 $ 18,671,3.56 $ 9,343,596 $ 243,856 $ (1,791,762) $ 10,356,456 $ 4.869,782 55 The City participates in the ABAG PLAN Corporation, which covers genera11iability 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 $100,000 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, 2007, the City contributed $224,995 toward current year Property Premium, Public Official Bond, Administrative Premium, and General Liability coverage. 10~/1~ I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 9. RISK MANAGEMENT A. Risk Pool 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 ill 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. Workers Compensation Coverage The City participates in the Cities Group, created by a joint powers agreement to provide workers compensation coverage paid from the pooled contributions of its membership with no deductible to the City. Any claim in excess of $1 million is covered up to $10 million through a separate reinsurance policy purchased by the Cities Group. The Cities Group acts as an administrator, claim adjuster and provides other risk management services as provided by State law. Each member of the Cities Group pays a premium commensurate with the level of coverage requested and shares surpluses and deficits proportionately to its participation in the Cities Group. During the year ended June 30, 2007, the City paid the Group $64,428 in premiums. At June 30, 2007, the City of Dublin's share of equity in the Cities group amounted to $236,172. Financial Statements may be obtained from the Cities Group, PO Box 111, Burlingame, CA 94011-0111. 56 I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 71 ~ 17~ 9. RISK MANAGEMENT, Continued C. Liability for Uninsured Claims The GASB requires municipalities to record their liability for uninsured claims and reflect the current portion of this liability as 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 the uninsured portion of these claims in the ABAG PLAN and the Cities Group plans. 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 and workers compensation 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 year was as follows: June 30, 2007 June 30, 2006 June 30, 2005 Beginning balance $ 242,382 $ 238,441 $ 137,210 Provision for claims 310,037 197,084 207,019 Oairns paid (299,872) (193,143) (105,788) Ending balance $ 252,547 $ 242,382 $ 238,441 10. COMPENSATED ABSENCES The City records a long term compensated absences liability to recognize the financial effect of unused general leave and other accrued compensated leave. The total of vacation and other compensated leaves is $650,364. The liability will be paid from future resources primarily from the general fund. Due within one July I, 2006 Additions Deletions June 30,2007 year Accrued General Leave $ 603,602 $ 108,355 $ (87,456) $ 624,501 $ 90,484 Accrued Compensated Leave 18,967 11,067 (4,171) 25,863 5,687 $ 622,569 $ 119,422 $ (91,627) $ 650,364 $ 96,171 57 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 1;2 ~J1o( I I I I I I I I I I I I I I I I I I I 11. 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 (Ca1PERS), a cost sharing multiple-employer plan administered by Ca1PERS, 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 is established by State statutes within the Public Employees' Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with Ca1PERS and adopts those benefits through local ordinance or resolution. CalPERS issues a separate comprehensive annual financial report. Copies of the Ca1PERS's annual financial report may be obtained from the Ca1PERS Executive Office, 400 P Street Sacramento, California 95814. Funding Policy - Active plan members in the Miscellaneous Plan are required to contribute 8 percent of their annual covered salary, 7 percent of which the City pays on behalf of the employees in the amount of $501,662. 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 Ca1 PERS Board of Administration. The required employer contribution rate for fiscal year 2006-2007 was 16.272% 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 2006-2007, the City's annual pension cost was $1,673,674 and was equal to the City's required and actual contributions. The required contribution for fiscal year 2006-2007 was determined as part of the June 30, 2004, actuarial valuation using the entry age normal actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions included (a) 7.75 percent investment rate of return net of administrative expenses; (b) projected salary increases that vary by duration of service ranging from 3.25 percent to 14.45 percent for miscellaneous members, depending on Age, Service, and type of employment; (c) Inflation component of 3.0 percent; d) Payroll Growth of 3.25 percent; and e) Individual Salary Growth based on a merit scale varying by duration of employment coupled with an assumed annual inflation growth of 3 percent and annual production growth of 0.25 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, 2004 was 14 years for miscellaneous employees for prior and current service unfunded liabilities. The Asset Valuation Method was 15 Year Smoothed Market. 58 I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 1.3~!7'; 11. PENSION PLAN, Continued A. PERS, Continued Three Year Trend Information for the Miscellaneous Plan Annual Percentage Pension Cost of APC Net Pension Fiscal Year (APC) Contributed Obligation 6/30/2005 $ 569,893 100% $ 6/30/2006 1,058,213 100% 6/30/2007 1,673,674 100% 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, 2005, and replaced Social Security. The employees contributed $44,862 or 6% of salary and the City contributed $11,249 or 1.5% of employee's pay towards PARS. 12. POSTEMPLOYMENT HEALTHCARE PLAN A. City of Dublin Retiree Health Plan Plan Description. City of Dublin (City) Retiree Health Plan is a single-employer defined benefit healthcare plan administered by the California Public Employees Retirement System (CalPERS). The plan provides medical insurance benefits to eligible retirees and their eligible dependents. In accordance with Public Employee Retirement Law (Article 2). The Public Employees Retirement System Board of Administration has the responsibility to approve health benefit plans and may contract with carriers offering health benefit plans. The Board of Administration is responsible for adopting all rules and regulations, including the scope and content of basic health plans. The California Government Code also defines certain rules for contract agencies, such as the City of Dublin, to purchase health insurance benefits. 59 Funding Policy. There is no requirement imposed by CalPERS, to contribute any amount beyond the pay-as- you-go contributions. The cost of monthly insurance premiums may be shared between the retiree and the City. The cost sharing varies depending on: date of hire (a vesting schedule is in place for employees hired after April 1, 2004); the dependent status; and plan selected. A minimum employer monthly contribution requirement is established and may be amended by the CalPERS Board of Administration and applicable laws. Within the parameters of the law, individual contracting agencies, such as the City, are allowed to establish and amend the level of contributions made by the employer towards the monthly cost of the plans. Changes to the employer contribution rate towards retiree benefits are recorded in a resolution adopted by the City Council. The City has elected a one year amortization period for the OPEB plan assets deposited into the CERBT, as permits under GASB Statement 45 to paragraph 13F, amortization periods allow for a maximum of 30 years with no minimum years. 149'\ l'7otl X I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30,2007 12. POSTEMPLOYMENT HEALTH CARE PLAN, Continued A. City of Dublin Retiree Health Plan, Continued The City has established a policy to make contributions to an Internal Service Fund, for the purpose of funding its calculated obligations over a period of time, with the intent the funds will be transferred to CALPERS periodically at which time the transfers will be recorded as Cash with Fiscal Agent in a Trust Fund. The amount necessary to fund future benefits is based on projections from the June 30 2007 Actuarial Study completed by Bartel and Associates, LLC in accordance with GASB Statement 45, Accounting and Financial Reportingfor Postemployment Benefits Other than Pensions. For fiscal year 2007, the City made a total of $625,333 in contributions, of which $139,850 represented current contributions and $485,483 represented amounts added to the City's Retiree Health Care Internal Service Fund to set aside funds for future benefits. There was no premiums contribution paid by the retirees that exceeded the monthly contribution established by the City. During Fiscal Year 2006-2007, the City has made arrangements with Ca1PERS to retain the OPEB assets to finance future Retiree Health Benefits. On June 29,2007 the City transferred $5,468,611 from the Internal Service Fund into the California Employers' Retiree Benefit Trust Fund (CERBT). The City has elected a one year amortization period for the OPEB plan assets deposited into the CERBT, as permitted under GASB Statement 45, paragraph 13F, amortization periods allow for a maximum of 30 years with no minimum years. As of June 30, 2007, the Internal Service Fund held a remaining total of $229,457 to be transferred to CalPERS during Fiscal Year 2007-2008. Annual OPEB Cost and Net OPEB Obligation. The City's annual Other Post Employment Benefit (OPEB) cost (expense) is calculated based on the Annual Required Contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City of Dublin annual OPEB costs for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation to the City Retiree Health Plan: 60 I I I I A. City of Dublin Retiree Health Plan, Continued I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 1~1-/7~ 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued Annual required contribution Interest on net OPEB obli~ation Adjustment to annual required contribution Annual OPEB cost (expense) Contributions made Increase (decrease) in net OPEB obli~ation Net OPEB obligation - beginning of year Net OPEB obli~ationl (asset) -end of year $ 625,000 28,000 (38,000) 615,000 (5,608,461) (4,993,461) 518,366 (4.475.095) $ The City Retiree Health annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2007,and the preceding year were as follows:. Annual OPEB OPEB Cost Contributed Obligation (Assetj Year Ended Annual OPEB Cost 6/30/2006 6/30/2007 $ $ 605,958 615,000 14.45% 911.94% $ $ 518,366 (4,475,095) Funded Status and Funding Progress. As of June 30,2007, the most recent actuarial valuation date, the plan was 72.7% funded. The Actuarial Accrued Liability (AAL) for benefits was $6,159,000, and the Actuarial value of Plan Asset was $4,475,095, resulting in an Unfunded Actuarial Accrued Liability (UAAL) of $1,683,905. The covered payroll (annual payroll of active employees covered by the plan) was 6,697,747, and the ratio of UAAL to the covered payroll was 25 percent. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Schedule of Funding Progress, presented as Required Supplementary Information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Since this is the first year of including this information in the financial report, the data presented is limited. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. 61 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 -1"111~ I I I I I I I I I I I I I I I I I I I 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued A. City of Dublin Retiree Health Plan, Continued In the June 30, 2007 actuarial valuation, the actuarial cost method used is Entry Age Normal (EAN) cost method. Under the EAN cost method, the plan's Normal Cost is developed as a level percent of payroll throughout the participants' working lifetime. Entry age is based on current age minus years of service. The Actuarial Accrued Liability (AAL) is the cumulative value on the valuation date, of prior Normal Cost. For the retirees, the AAL is the present value of all projected benefit. The Unfunded AAL is being amortized as a level dollar closed 30 year basis, as a level percent of payroll with a remaining amortization period at June 30, 2007 of 30 years. GASB 45 requires the interest rate to represent the underlying expected return for the source of funds used to pay benefits. The actuarial methods and assumptions included 7.75 percent interest rate, representing the long term expected rate of return on the CalPERS Trust Fund. Annual inflation assumed to increase at 3 percent per annum and Aggregate Payroll assumed to increase at 3.25 percent per annum. The study also used assumptions for the salary merit and longevity increases, and demographic assumptions such as mortality, withdrawal, and disability based on Ca1PERS 1997-2002 Experience Study. Retirement assumption was also based on CalPERS 1997-2002 Experience Study of the Misce1anous Plan 2.7% at 55 years, with expected retirement age of approximate 59 for females and 60 for males. B. Dougherty Regional Fire Authority Health Plan Dougherty Regional Fire Authority Background. In 1988, the cities of Dublin and San Ramon formed Dougherty Regional Fire Authority (DRF A), a joint powers agency OP A). The JP A provided fire services to all of Dublin and the southern portion of San Ramon. In 1997, the two cities decided to change how Fire Services would be provided in each City. As a result JP A personnel were absorbed by the two new service providers pursuant to a mutual agreement. The JP A has remained intact to conclude the financial affairs of the entity. This includes residual retiree obligations and workers compensation liabilities. Dublin's share of all DRF A close-out expenses, including retiree medical benefits, is 57.51 % of the actual costs, with the City of San Ramon paying 42.49% of the costs. The two cities have entered into a binding agreement to share these expenses on this basis. The City of Dublin is presenting information only for its contractual share of the obligations. Plan Description. City of Dublin share of DRF A Retiree Health Plan, is a single-employer defined benefit healthcare plan administered by the California Public Employees Retirement System (CalPERS). The Plan provides medical insurance benefits to eligible retirees and their eligible dependents. In accordance with Public Employee Retirement Law (Article 2), the Public Employees Retirement System Board of Administration has the responsibility to approve health benefit plans and may contract with carriers offering health benefit plans. The Board of Administration is responsible for adopting all rules and regulations, including the scope and content of basic health plans. The California Government Code also defines certain rules for contract agencies, such as DRF A, to purchase health insurance benefits. 62 I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 <><71-:; r1~ 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued B. Dougherty Regional Fire Authority Health Plan, Continued Funding Policy. There is no requirement imposed by CalPERS, to contribute any amount beyond the pay- as-you-go contributions. The cost of monthly insurance premiums may be shared between the retiree and DRF A. The cost sharing varies depending on: the bargaining unit; dependent status; and plan selected. A minimum employer monthly contribution requirement is established and may be amended by the CalPERS Board of Administration and applicable laws. Within the parameters of the law, individual contracting agencies such as the DRF A, are allowed to establish and amend the level of contributions made by the employer towards the monthly cost of the plans. Changes to the employer contribution rate towards retiree benefits are recorded in a resolution adopted by the DRF A Management Committee. For fiscal year 2007, the City contributed $62,129 to the plan, all of which was for current premiums. No other contributions were made. Annual OPEB Cost and Net OPEB Obligation. The DRFA Retiree Health Plan (City of Dublin Share) annual other post employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarial1y determined in accordance with the parameters of GASB Statement 45, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover costs. This plan is in a unique status since there are no active members and no "normal" cost component. Therefore, 100% of the calculated ARC relates to the amortization of unfunded actuaria11iabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City of Dublin share of DRF A annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the Dublin Share of DRFA net OPEB and the City of Dublin share of the obligation to DRF A Retiree Health Plan: Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution $ 76,206 Annual OPEB cost (expense) Contributions made 76,206 (62,129) 14,077 29,936 44,013 Increase in net OPEB obligation Net OPEB obligation - beginning of year Net OPEB obligation - end of year $ The DRFA Retiree Health (City of Dublin Share) annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2007 and the previous year were as follows: Fiscal Percentage of Net Year Annual Annual OPEB OPEB Ended OPEB Cost Cost Contributed Obligation 6/30/2006 $ 76,206 60,72% $ 29,936 6/30/2007 $ 76,206 81.53% $ 44,013 63 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 19~('1o< I I I I I I I I I I I I I I I I I I I 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued B. Dougherty Regional Fire Authority Health Plan, Continued Funded Status and Funding Progress. As of June 30, 2004, the most recent actuarial valuation date, the plan was not funded. Therefore both the actuarial accrued liability for benefits and the unfunded actuarial accrued liability (VAAL) equaled $1,050,421. Since there are no active employees, it is not possible to calculate a comparison of the liability to the payroll. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Schedule of Funding Progress, presented as Required Supplementary Information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Since this is the first year of including this information in the financial report, the data presented is limited. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the June 30, 2004 actuarial valuation, prepared by The Segal Group, Inc, the actuarial cost method used was: Entry Age Normal, level dollar. Entry age is based on current age minus years of service. The actuarial assumptions included a 6.25 percent investment rate of return (net of administrative expenses), calculated based on the funded level of the plan at the valuation date. An annual hea1thcare cost trend rate of 11 percent initially, reduced over a six year period to an ultimate rate of 5 percent. The actuarial value of assets was determined using the market value of investments. The VAAL is being amortized as a level dollar closed 30 year basis. The remaining amortization period at June 30,2004, was thirty years. 13. 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. 64 I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 '1'1~J7cZ 13. COMMITMENT AND CONTINGENT LIABILITIES, Continued 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 of Pleasanton On January 23, 1996, the City adopted a fee for the purpose of reimbursing the City of P1easanton 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 P1easanton. The amount of the contingent liability outstanding at June 3D, 2007, was $4,830,916, which is net of the $208,426 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, 2007, is $1,949,136 which includes $90,101 of interest for the current year and $511,624 of payments on the loan. 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. 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. 65 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30,2007 g;v D;111c2 I I I I I I I I I I I I I I I I I I I 13. COMMITMENT AND CONTINGENT LIABILITIES, Continued D. BART Agreement, Continued Long Term Advance BART's long term advance to the City, including accrued interest as of June 30, 2007 is $2,296,672, 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 30,2007 unpaid interest incurred was added to the balance owed in the amount of $57,623. 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 terms of the agreement, interest on the advance shall accrue at a rate based on the Alameda County Treasurers return on investments. As of June 30,2007, the advance is $2,444,531, which includes accrued interest of $104,147 at 4.45% 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. 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 30,2007 was $49,503,454. For the current year, additions to the credits amounted to $11,219,090 and credits used and transferred amounted to $11,393,863. 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. 14. DEFICIT FUND BALANCE The Fire Impact Fees Fund ended the fiscal year with a $1,791,762 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. 66 I I I I I I I I I I I I I I I I I I I City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2007 2-{ 1J1oe 15. PRIOR PERIOD ADJUSTMENTS Government- Wide Financial Statements: Prior period adjustment was recorded by the City to reflect proper recording of depreciation expense for the Building Replacement Internal Service Fund not captured in fiscal year 2005-2006. Net Assets, as Previously Reported Government-Wide Activities: Net Assets Total government-wide activities $ 494,135,391 $ $ 494,135,391 $ Fund Financial Statements: Prior period adjustments in the Fund Financial statements were recorded as follows: ~ Recording of depreciation expense for the Building Replacement Internal Service Fund not captured in fiscal year 2005-2006 ~ Recording of deferred revenue in the Housing and Noise Mitigation Special Revenue Fund in relation to long-term notes receivables not recognized in prior years. Housing and Noise Mitigation Fund Fund Balance, as Previously Prior Period Fund Balance, Reported Adjusbnents as Restated $ 13,043,062 $ (3,000,000) $ 10,043,062 $ 48,870,309 $ (332,738) $ 48,537,571 Building Replacement Internal Service Fund 67 This page intentionally left blank. ~~ 1'7~ I I I I I I I I I I I I I I I I I I I 68 I I I I I I I I I I I I I I I I I I I g~O;J'f7~ REQUIRED SUPPLEMENTARY INFORMATION 69 City of Dublin Required Supplementary Information For the year ended June 30, 2007 By OJ 11.,z I I I I I I I I I I I I I I I I I I I 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 departmenta11eve1 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. 70 I City of Dublin gS ~. /7<>2 I Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual . Required Supplementary Information, Continued For the year ended June 30, 2007 I General Fund Variance with I Final Budget - Budget Amounts Actual Positive Original Final Amounts (Negative) I REVENUES: Property taxes $ 17,470,288 $ 17,470,288 $ 20,146,741 $ 2,676,453 I Sales tax 15,283,000 15,283,000 14,025,869 (1,257,131) Other taxes 3,318,000 3,318,000 3,508,587 190,587 Intergovernmental 1,083,021 1,530,976 1,149,759 (381,217) I Licenses and permits 2,901,819 2,901,819 2,572,069 (329,750) Charges for service 6,740,407 6,740,407 8,015,063 1,274,656 Investment Interest 1,864,164 1,864,164 3,575,137 1,710,973 Use of property 173,574 185,524 203,240 17,716 I Fines and forfeitures 143,560 143,560 140,235 (3,325) Other revenue 1,946,995 1,995,670 928,707 (1,066,963) Total revenues 50,924,828 51,433,408 54,265,407 2,831,999 I EXPENDITURES: I Current: General government 5,659,709 5,859,046 5,480,365 378,681 Public safety 21,888,607 21,942,704 21,275,006 667,698 Highways and streets 2,057,857 2,097,102 2,003,668 93,434 I Health and welfare 46,500 57,575 40,555 17,020 Culture and leisure 6,969,511 7,102,361 6,874,596 227,765 Community development 8,604,270 8,795,963 7,698,894 1,097,069 I Capital outlay: General 1,181,320 1,198,806 377,026 821,780 Community improvement 261,044 203,772 95,672 108,100 I Parks 3,204,432 5,435,076 2,619,196 2,815,880 Streets 697,235 1,061,970 308,244 753,726 Total expenditures 50,570,485 53,754,375 46,773,222 6,981,153 I REVENUES OVER (UNDER) EXPENDITURES 354,343 (2,320,967) 7,492,185 9,813,152 I OTHER FINANCING SOURCES (USES): Transfer in 59,196 59,196 Transfer out (23,505) (23,505) I Total other financing sources (uses) 35,691 35,691 NET CHANGE IN FUND BALANCES $ 354,343 $ (2,320,967) 7,527,876 $ 9,848,843 I FUND BALANCES: Beginning of year, as restated 50,771,877 I End of year $ 58,299,753 I 71 City of Dublin &-, I 'lei Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Required Supplementary Information, Continued For the year ended June 30, 2007 Housing and Noise Mitigation Special Revenue Fund Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 405,834 $ 405,834 $ 604,093 $ 198,259 Charges for services 54,000 54,000 31,115 (22,885) Developer fees 1,390,600 1,390,600 186,640 (1,203,960) Other revenue 3,140 3,140 Total revenues 1,850,434 1,850,434 824,988 (1,025,446) EXPENDITURES: Current: General Government 42,750 59,940 59,937 3 Community Development 804,070 864,070 458,257 405,813 Total expenditures 846,820 924,010 518,194 405,816 REVENUES OVER (UNDER) EXPENDITURES 1,003,614 926,424 306,794 (619,630) OTHER FINANCING SOURCES (USES): Transfers in 6,600 6,600 Total financing sources (uses) 6,600 6,600 Net change in fund balance $ 1,003,614 $ 926,424 313,394 $ (613,030) FUND BALANCE: Beginning of year 10,043,062 End of year $ 10,356,456 72 I I I I I I I I I I I I I I I I I I I & Y ';;f /10( Schedule of Funding in Progress Miscellaneous Plan of the California Public Employee Retirement System 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. As part of a cost-sharing multiple-employer defined benefit plan, disclosure of the schedule of funding progress is not required. Schedule of Funding in Progress Other Post Employment Benefit (OPEB) Actuarial Accrued Unfunded UAAL as a Actuarial liability (Overfunded) Percentage of Actuarial Value of (AAL) - AAL Funded Covered Covered Valuation Assets Entry Age (VAAL) Ratio Payroll Payroll Date (A) (B) (B-A) (A/B) ('q ((B-A)/q 6/30/2004 4,973,780 4,973,780 0.0% 6,320,280 78.7% 6/30/2007 4,475,095 6,159,000 1,683,905 72.7% 6,697,747 25.1% 73 This page intentionally left blank. S& ~)7~ I I I I i I I I I I I I I I I I I I I I 74 I I I I I I I I I I ,I I I I I I I I I gCJ 'i7c2 SUPPLEMENTARY INFORMATION 75 This page intentionally left blank. ~o ~ r'7,;( I I 'I I I I I I I I I I I I I I I I I 76 I I I I I I I I I I I I I I I I I I I q1117<>< GENERAL FUND The General Fund is used to account for all financial resources except those required to be accounted for in another fund. 77 t71J ~ 11d< I City of Dublin Schedule of Budget Versus Actual Revenues by Sources I General Fund For the year ended June 30, 2007 I Variance with Final Budget - I Budgeted Amounts Actual Positive Original Final Amounts (Negative) Property Taxes: I Current year secured $ 12,306,000 $ 12,306,000 $ 14,599,551 $ 2,293,551 Current year unsecured 918,000 918,000 950,885 32,885 Prior year secured 208,000 208,000 269,252 61,252 I Prior year unsecured 11,000 11,000 (14,717) (25,717) Supplemental property tax 865,800 865,800 1,139,824 274,024 Housing Authority Pilot tax 59,488 59,488 60,909 1,421 I In lieu property tax 3,001,000 3,001,000 3,034,577 33,577 Property tax penalties 101,000 101,000 106,460 5,460 Sub-total 17,470,288 17,470,288 20,146,741 2,676,453 I Taxes Other Than Property: Sales & use tax 15,283,000 15,283,000 14,025,869 (1,257,131) Real property transfer tax 712,000 712,000 596,533 (115,467) I Hotel transient occupancy tax 685,000 685,000 800,773 115,773 Franchise taxes 1,921,000 1,921,000 2,111,281 190,281 Sub-total 18,601,000 18,601,000 17,534,456 (1,066,544) I License and Permits: Building permits 2,583,427 2,583,427 2,258,224 (325,203) I Animal licenses 6,000 6,000 5,647 (353) Encroachment permits 50,000 50,000 86,323 36,323 Construction and demolition permits 55,406 55,406 28,146 (27,260) I Business license 139,000 139,000 143,654 4,654 Fire permits 67,986 67,986 50,075 (17,911) Sub-total 2,901,819 2,901,819 2,572,069 (329,750) I Fines and Forfeitures: Parking fines 59,160 59,160 78,778 19,618 Other court fines 81,400 81,400 56,222 (25,178) I Other fines & penalties 3,000 3,000 5,235 2,235 Sub-total 143,560 143,560 140,235 (3,325) Revenue From Use of Money and Property: I Interest 1,864,164 1,864,164 2,620,609 756,445 Change in Fair Market Value of Investments 954,528 954,528 Rent & Concession: I Field rentals 71,793 71,793 57,737 (14,056) Building rentals 17,716 17,716 21,293 3,577 Pool 13,070 13,070 19,457 6,387 I Heritage Center 3,825 3,825 2,306 (1,519) Community gym 24,320 24,320 26,719 2,399 Senior Center 42,850 42,850 42,716 (134) I Dublin Square Property Rental 11,950 33,012 21,062 Sub-total 2,037,738 2,049,688 3,778,377 1,728,689 (Continued) I 78 I City of Dublin 13 ~ J '7.:z I Schedule of Budget Versus Actual Revenues by Sources General Fund, Continued For the year ended June 30, 2007 I Variance with I Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) I Intergovernmental Revenues: Vehicle License Fee $ 226,000 $ 226,000 $ 261,276 $ 35,276 Off highway vehicle in-lieu tax 1,700 1,700 (1,700) I Homeowner's property tax relief 175,400 175,400 181,029 5,629 Workforce Housing Grant 679,921 1,127,876 707,454 (420,422) Sub-total 1,083,021 1,530,976 1,149,759 (381,217) I Charges for Services: Zoning & subdivision fees 2,176,563 2,176,563 1,969,393 (207,170) Plan check & inspection fees 1,954,809 1,954,809 2,576,754 621,945 I Sale of maps and documents 15,400 15,400 14,352 (1,048) Special police services 88,895 88,895 81,645 (7,250) Fire services 562,000 562,000 1,281,903 719,903 I Cultural arts 114,760 114,760 97,177 (17,583) Recreation instruction 127,250 127,250 168,941 41,691 Preschool 122,490 122,490 103,515 (18,975) I Special events 145,760 145,760 154,769 9,009 Playgrounds 242,960 242,960 226,883 (16,077) Teens 52,700 52,700 61,250 8,550 Building use insurance 3,000 3,000 4,146 1,146 I Zone 7 drainage fees 4,387 4,387 6,493 2,106 Adult sports 51,610 51,610 45,781 (5,829) Aquatics 198,280 198,280 175,748 (22,532) I Senior Program 85,445 85,445 83,488 (1,957) DUl program 1,600 1,600 1,441 (159) Youth sports 164,970 164,970 177,299 12,329 I Booking fees recovery 21,500 21,500 155,928 134,428 Solid waste fees 133,000 133,000 138,215 5,215 Cemetery 6,260 6,260 3,820 (2,440) I Heritage Center 5,728 5,728 2,693 (3,035) Annexation 57,000 57,000 19,835 (37,165) Fire plan check and inspection fees 341,540 341,540 399,001 57,461 Cable support fees 62,500 62,500 64,593 2,093 I Sub-total 6,740,407 6,740,407 8,015,063 1,274,656 Other Revenues: I Sale of property 106,630 106,630 (106,630) Contributions 93,000 108,875 150,513 41,638 Miscellaneous 10,000 22,600 118,764 96,164 I Reimbursement - general 1,729,365 1,749,565 607,912 (1,141,653) Reimbursement - public damage 8,000 8,000 51,518 43,518 Sub-total 1,946,995 1,995,670 928,707 (1,066,963) I Total revenues by sources $ 50,924,828 $ 51,433,408 $ 54,265,407 $ 2,831,999 I 79 qq i/7d I City of Dublin Schedule of Budget Versus Actual Departmental Expenditures I General Fund For the year ended June 30, 2007 I Variance with I Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) General Government: I City Council $ 358,156 $ 362,356 $ 320,925 $ 41,431 City Manager 1,045,943 1,045,943 1,042,480 3,463 Central services 453,571 454,214 438,786 15,428 I City Attorney 750,395 867,875 867,875 Administrative services 1,708,961 1,731,461 1,593,028 138,433 Building management 762,909 769,109 707,316 61,793 I Insurance cost center 443,659 534,659 474,542 60,117 Election cost center 21,815 26,603 25,555 1,048 Nondepartmental 114,300 66,826 9,858 56,968 Sub-total 5,659,709 5,859,046 5,480,365 378,681 I Public Safety: Police 12,171,938 12,174,365 11,662,394 511,971 I Crossing guards 88,511 88,511 86,639 1,872 Animal control 255,100 255,100 251,957 3,143 Traffic signals and street lighting 16,315 16,315 15,424 891 I Disaster preparedness 103,130 113,930 79,827 34,103 Fire services 9,253,613 9,294,483 9,178,765 115,718 Sub-total 21,888,607 21,942,704 21,275,006 667,698 I Highways and Streets: Public works administration 975,320 975,320 907,512 67,808 Street maintenance 33,440 33,440 13,222 20,218 I Street sweeping 145,400 145,400 139,992 5,408 Street tree maintenance 103,529 131,392 131,392 Street landscape maintenance 800,168 811,550 811,550 I Sub-total 2,057,857 2,097,102 2,003,668 93,434 Health and Welfare: Waste management 18,000 29,075 22,055 7,020 I Child care 18,500 18,500 18,500 Social services 10,000 10,000 10,000 Housing programs I Sub-total 46,500 57,575 40,555 17,020 Culture and Leisure: I Library services 830,642 832,317 809,629 22,688 Heritage and Culture Arts 494,919 507,294 477,715 29,579 Park maintenance 1,811,174 1,852,674 1,808,689 43,985 I Community cable television 67,591 132,591 128,881 3,710 Parks and community services 3,438,971 3,451,271 3,344,685 106,586 Parks and facilities management 326,214 326,214 304,997 21,217 Sub-total 6,969,511 7,102,361 6,874,596 227,765 I (Continued) 80 I I City of Dublin Schedule of Budget Versus Actual Departmental Expenditures General Fund, Continued For the year ended June 30, 2007 951 /7.;2 I I I I I I Sub-total Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 6,125,680 $ 6,125,680 $ 5,038,858 $ 1,086,822 2,215,848 2,407,541 2,407,540 1 262,742 262,742 252,496 10,246 8,604,270 8,795,963 7,698,894 1,097,069 Community Development: Planning/building safety Engineering Economic development I I I I I I I I I I I I Capital Outlay: General improvements Community improvements Parks Street construction and improvements Sub-total 1,181,320 1,198,806 377,026 821,780 261,044 203,772 95,672 108,100 3,204,432 5,435,076 2,619,196 2,815,880 697,235 1,061,970 308,244 753,726 5,344,031 7,899,624 3,400,138 4,499,486 $ 50,570,485 $ 53,754,375 $ 46,773,222 $ 6,981,153 Total expenditures 81 82 Ofe, 1 !'1d I I I I I I I I I I I I I I I I I, I I This page intentionally left blank. I I I I I I I I I I I I I I I I I I I City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Traffic Impact Fees Capital Projects Fund - Major Fund For the year ended June 30, 2007 17 "f /7':< REVENUES: Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 458,384 $ 458,384 $ 811,213 $ 352,829 11,397,549 11,397,549 2,816,043 (8,581,506) 11,855,933 11,855,933 3,627,256 (8,228,677) Interest Developer fees Total revenues EXPENDITURES: Current: General government Capital outlay: Streets 9,500 9,500 9,500 Total expenditures 35,672,424 35,681,924 33,106,780 33,116,280 4,497,680 4,497,680 28,609,100 28,618,600 REVENUES OVER (UNDER) EXPENDITURES (23,825,991) (21,260,347) (870,424) 20,389,923 OTHER FINANCING SOURCES (USES): Transfer in Transfer out Total other financing sources (uses) 23,506 23,506 (39,525) (39,525) (16,019) (16,019) $ $ (886,443) $ (886,443) Net change in fund balance FUND BALANCE: Beginning of year End of year 19,557,799 $ 18,671,356 83 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- Public Facilities Fees Capital Projects Fund - Major Fund For the year ended June 30, 2007 q <;? ~ ! 7"" I I I I I I I I I I I I I I I I I I I Budgeted Amounts Original Final REVENUES: Interest Developer fees Total revenues $ 580,724 $ 8,144,858 8,725,582 580,724 $ 8,144,858 8,725,582 EXPENDITURES: Capital outlay: Parks Total expenditures 1,332,149 1,332,149 9,078,847 9,078,847 Net change in fund balance $ 7,393,433 $ (353,265) FUND BALANCE: Beginning of year End of year 84 Actual Amounts 623,011 5,322,423 5,945,434 8,018,317 8,018,317 (2,072,883) 11,416,479 $ 9,343,596 Variance with Final Budget - Positive (Negative) $ 42,287 (2,822,435) (2,780,148) 1,060,530 1,060,530 $ (1,719,618) I I I I I I I I I I I I I I I I I I I City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Public Art Fees Capital Projects Fund - Major Fund For the year ended June 30, 2007 11:{ J7~ Interest Developer fees Total revenues $ $ Variance with Final Budget - Actual Positive Amounts (Negative) $ 6,313 $ 6,313 112,543 112,543 118,856 118,856 118,856 $ 118,856 Budgeted Amounts Original Final REVENUES: Net change in fund balance $ $ FUND BALANCE: Beginning of year End of year $ 125,000 243,856 85 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- Fire Impact Fees Capital Projects Fund - Major Fund For the year ended June 30, 2007 \ ~ ~.. /1:2 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) REVENUES: Developer fees Total revenues $ 280,700 $ 280,700 180,622 $ 180,622 (100,078) (100,078) 280,700 $ 280,700 EXPENDITURES: Current: General Government 78,786 78,786 (78,786) (78,786) Total expenditures Net change in fund balance $ 101,836 $ (178,864) 280,700 $ 280,700 FUND BALANCE: Beginning of year End of year (1,893,598) $ (1,791,762) 86 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I NON!~iJ8'~ 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 (SLESjCOPS) - 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. Community Development Block Grant (CDBG) Fund - Used to account for grants and expenditures related to community development block grants. TEA 21 (Transportation Equity Act for the 21st Century) - Established to account for the revenue received from the Department of Transportation under the Federal surface transportation programs for highways, highway safety, and transit. FEMA Fund - Established to account for expenditures funded with FEMA grants. 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. 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. This fund also accounts for other locally derived funds for recycling related activities. Garbage Service Fund - Established to account for the use of funds received which are levied by the county on behalf of the City for garbage pick-up and removal and recycling services. Local Recycling Fund - Established to account for locally derived funds collected for a commercial organic and recycling program and activities retained by the City at the end of the franchise held by Waste Management Inc. These funds are independent of the funds distributed by Stop Waste pursuant to the Alameda County Recycling Measure. 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. 87 88 (od 1 /'7o? I I I I I I I I I I I I I I I I I I I This page intentionally left blank. t(g~ ~J1O< NON-MA OR GOVERNMENTALFUND~ Continued I I I I I I I I I I I I I I I I I I I 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. Maintenance Districts - Established to account for revenue and related expenditures of lighting and landscape districts. 89 {Olf ~}7~ I City of Dublin Combining Balance Sheet I Non-Major Governmental Funds June 30, 2007 I Special Revenue Funds I Special Supplemental Criminal Vehicle Law I Activity Abatement Enforcement Traffic Safety ASSETS Cash and investments $ 29,536 $ 125,210 $ $ 170,731 I Accounts receivable 7,141 13,516 Total assets $ 29,536 $ 132,351 $ $ 184,247 I LIABILITIES AND FUND BALANCES I Liabilities: Accounts payable $ $ $ $ 19,592 I Contract retention payable Due to other funds Total liabilities 19,592 I Fund Balances: Reserved for: Recycling programs I Public safety programs 29,536 132,351 164,655 Street maintenance and construction I Health and welfare programs Capital improvement projects Total fund balances 29,536 132,351 164,655 I Total liabilities and fund balances $ 29,536 $ 132,351 $ $ 184,247 I I I I I 90 I I i05'}, !7~ I I I Special Revenue Funds Community Measure B State Development Sale Tax Transportation Measure D I State Gas Tax Block Grant TEA-21 FEMA Transportation Improvement Recycling I $ 2,390,325 $ $ $ $ 460,129 $ $ 282,097 2,498 95,157 2,843 82,270 52,884 44,958 $ 2,392,823 $ 95,157 $ 2,843 $ $ 542,399 $ 52,884 $ 327,055 I I $ 158,255 $ 23,756 $ 2,843 $ $ 289,626 $ $ 9,379 I 10,396 4,962 32,181 66,439 168,651 95,157 2,843 321,807 9,379 I I 317,676 2,224,172 220,592 52,884 I 2,224,172 220,592 52,884 317,676 I $ 2,392,823 $ 95,157 $ 2,843 $ $ 542,399 $ 52,884 $ 327,055 I (Continued) I I I I I 91 City of Dublin Combining Balance Sheet Non-Major Governmental Funds, Continued June 30, 2007 ! 0 0 <D;f {70{ I I I Special Revenue Funds Measure B Garbage Local Bike and Service Recycling Pedestrian EMS $ $ 516,288 $ 248,664 $ 94,197 17,724 27,284 40,431 $ 17,724 $ 516,288 $ 275,948 $ 134,628 I I ASSETS Cash and investments Accounts receivable I I Total assets LIABILITIES AND FUND BALANCES I Liabilities: Accounts payable Contract retention payable Due to other funds $ $ $ 1,189 $ 15,400 I Total liabilities 30,980 30,980 1,189 15,400 I Fund Balances: Reserved for: Recycling programs Public safety programs Street maintenance and construction Health and welfare programs Capital improvement projects Total fund balances 119,228 I $ (13,256) 17,724 $ 516,288 516,288 274,759 274,759 275,948 I (13,256) 516,288 Total liabilities and fund balances $ $ 119,228 134,628 I I I I I I 92 I I 10'1 ~. /~ I I I Special Revenue Funds Maintenance Districts Total Traffic Dougherty Santa Rita Dublin Street Non-Major Congestion Street Stagecoach Landscape & Assessment Lighting Governmental I Relief Lighting Landscape Lighting District 97-1 Assessment Funds I $ 475,310 $ 117,949 $ 53,902 $ 96,411 $ 230,701 $ 128,053 $ 5,419,503 1,605 133 556 723 1,481 391,204 $ 475,310 $ 119,554 $ 54,035 $ 96,967 $ 231,424 $ 129,534 $ 5,810,707 I I $ 164,063 $ 3,811 $ 2,914 $ 21,704 $ 56,229 $ 8,977 $ 777,738 I 18,229 65,768 97,419 182,292 3,811 2,914 21,704 56,229 8,977 940,925 I I 317,676 445,770 293,018 115,743 51,121 75,263 175,195 120,557 3,328,545 I 503,032 274,759 293,018 115,743 51,121 75,263 175,195 120,557 4,869,782 I $ 475,310 $ 119,554 $ 54,035 $ 96,967 $ 231,424 $ 129,534 $ 5,810,707 I (Concluded) I I I I I 93 roE; '1 /70( I City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances I Non-Major Governmental Funds For the year ended June 30, 2007 I Special Revenue Funds I Special Supplemental Criminal Vehicle Law I Activity Abatement Enforcement Traffic Safety REVENUES: Property taxes $ $ $ $ I Taxes other than property Intergovernmental 27,727 100,000 Charges for service I Interest 1,148 5,702 667 6,819 Fines and forfeitures 201,863 Other revenue 3,404 12,068 I Special assessments Total revenues 4,552 33,429 100,667 220,750 EXPENDITURES: I Current: Public safety 1,028 100,754 206,955 I Highways and streets Health and welfare Community development I Capital outlay: Health and welfare Parks Streets I Total expenditures 1,028 100,754 206,955 REVENUES OVER I (UNDER) EXPENDITURES 4,552 32,401 (87) 13,795 OTHER FINANCING SOURCES (USES): I Transfer in Transfer out (19,672) I Total other financing sources (uses) (19,672) NET CHANGE IN FUND BALANCES 4,552 12,729 (87) 13,795 I FUND BALANCES: Beginning of year 24,984 119,622 87 150,860 I End of year $ 29,536 $ 132,351 $ $ 164,655 I 94 I I City of Dublin [/01-110< Combining Statement of Revenues, Expenditures and Changes in Fund Balances I Non-Major Governmental Funds, Continued For the year ended June 30, 2007 I Special Revenue Funds I Measure B Garbage Local Bike and I Service Recycling Pedestrian EMS REVENUES: Property taxes $ $ $ $ 119,472 I Taxes other than property 107,882 Intergovernmental 157,013 Charges for service 1,430,806 I Interest 2,121 7,376 9,804 409 Fines and forfeitures Other revenue I Special assessments Total revenues 1,432,927 7,376 117,686 276,894 EXPENDITURES: I Current: Public safety 196,756 I Highways and streets Health and welfare 1,457,741 Community development I Capital outlay: Health and welfare Parks I Streets 46,802 Total expenditures 1,457,741 46,802 196,756 REVENUES OVER I (UNDER) EXPENDITURES (24,814) 7,376 70,884 80,138 OTHER FINANCING SOURCES (USES): I Transfer in Transfer out I Total other financing sources (uses) NET CHANGE IN FUND BALANCES (24,814) 7,376 70,884 80,138 I FUND BALANCES: Beginning of year 11,558 508,912 203,875 39,090 I End of year $ (13,256) $ 516,288 $ 274,759 $ 119,228 I I 96 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, 2007 11,;/ i /7,;{ I I I I I I I I I I I I I I I I I I I Budgeted Amounts Original Final REVENUES: Interest Other revenue $ 687 687 $ Total revenues 687 687 EXPENDITURES: Current: Public safety Total expenditures 3,000 3,000 3,000 3,000 Net change in fund balance $ (2,313) $ (2,313) FUND BALANCE: Beginning of year End of year 98 Actual Amounts $ 1,148 3,404 4,552 4,552 $ 24,984 29,536 Variance with Final Budget- Positive (Negative) $ 461 3,404 3,865 3,000 3,000 $ 6,865 I I I I I I I I I I I I I I I I I I I 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, 2007 //311'/~ Budgeted Amounts Original Final REVENUES: Intergovernmental Interest $ 31,900 $ 4,424 36,324 31,900 4,424 36,324 Total revenues EXPENDITURES: Current: Public safety Total expenditures 710 710 1,030 1,030 REVENUES OVER (UNDER) EXPENDITURES 35,614 35,294 OTHER FINANCING (USES): Transfers out Total other financing Net change in fund balance $ 36,324 $ 36,324 FUND BALANCE: Beginning of year End of year 99 Actual Amounts $ 27,727 $ 5,702 33,429 1,028 1,028 32,401 (19,672) (19,672) 12,729 $ $ 119,622 132,351 Variance with Final Budget - Positive (Negative) (4,173) 1,278 (2,895) 2 2 (2,893) (19,672) (19,672) (23,595) I I I I I I I I I I I I I I I I I I I 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, 2007 [Ii ~ )~o( Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 100,000 $ 100,000 $ 100,000 $ 6 6 667 661 100,006 100,006 100,667 661 REVENUES: Intergovernmental Interest Total revenues EXPENDITURES: Current: Public safety Total expenditures 100,000 100,000 100,754 100,754 100,754 100,754 Net change in fund balance $ 6 $ (748) (87) $ 661 FUND BALANCE: Beginning of year End of year 87 $ 100 I I I I I I I I I I I I I I I I I I I 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, 2007 J/:; :{1 '70( Total revenues Variance with Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 4,575 $ 4,575 $ 6,819 $ 2,244 177,000 177,000 201,863 24,863 12,068 12,068 181,575 181,575 220,750 39,175 REVENUES: Interest Fines and forfeitures Other revenues EXPENDITURES: Current: Public safety Total expenditures 213,172 213,172 213,172 213,172 206,955 206,955 6,217 6,217 Net change in fund balance $ (31,597) $ (31,597) 13,795 $ 45,392 FUND BALANCE: Beginning of year End of year $ 150,860 164,655 101 ilG ~ I City of Dublin 11~ Schedule of Revenues, Expenditures and Changes in Fund Balances - I Budget and Actual - State Gas Tax Special Revenue Fund For the year ended June 30, 2007 I Variance with I Final Budget- Budgeted Amounts Actual Positive Original Final Amounts (Negative) I REVENUES: Intergovernmental $ 751,300 $ 751,300 $ 768,627 $ 17,327 I Interest 65,116 65,116 93,565 28,449 Total revenues 816,416 816,416 862,192 45,776 EXPENDITURES: I Current: I Public safety 52,750 52,750 42,321 10,429 Highways and streets 379,294 379,294 305,089 74,205 Community development 6,000 6,000 6,000 I Capital outlay: Streets 192,529 235,174 153,992 81,182 Total expenditures 630,573 673,218 507,402 165,816 I OTHER FINANCING (USES): Transfers in 1,097 1,097 I Total other financing 1,097 1,097 Net change in fund balance $ 185,843 $ 143,198 355,887 $ 212,689 I FUND BALANCE: I Beginning of year 1,868,285 End of year $ 2,224,172 I I I I I I 102 I I I I I I I I I I I I I I I I I I I 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, 2007 II 71 h~ 61,804 61,804 60,035 17,581 17,581 17,581 56,713 56,713 56,713 136,098 136,098 134,329 6,600 6,600 6,600 Budgeted Amounts Original Final REVENUES: Intergovernmental Total revenues $ 142,698 $ 142,698 142,698 142,698 EXPENDITURES: Current: Health and welfare Capital outlay: Streets Parks Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund balance $ 6,600 $ 6,600 FUND BALANCE: Beginning of year End of year 103 Actual Amounts $ 140,929 140,929 (6,600) (6,600) $ Variance with Final Budget- Positive (Negative) $ (1,769) (1,769) 1,769 1,769 (6,600) (6,600) $ (6,600) City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - T.E.A. Special Revenue Fund For the year ended June 30, 2007 1/2, ~ /70( I I I I I I I I I I I I I I I I I I I Budgeted Amounts Original Final REVENUES: Intergovernmental Total revenues $ 339,500 $ 339,500 339,500 339,500 EXPENDITURES: Capital outlay: Streets 339,500 339,500 339,500 339,500 Total expenditures Net change in fund balance $ $ FUND BALANCE: Beginning of year End of year 104 Actual Amounts $ 2,843 2,843 2,843 2,843 $ Variance with Final Budget- Positive (Negative) $ (336,657) (336,657) 336,657 336,657 $ I I I I I I I I I I I I I I I I I I I 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, 2007 fI111'Y"f<><- Budgeted Amounts Original Final REVENUES: Intergovernmental Total revenues $ OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund balance $ FUND BALANCE: Beginning of year End of year 105 $ $ Actual Amounts $ 1,097 1,097 (1,097) (1,097) $ Variance with Final Budget - Positive (Negative) $ 1,097 1,097 (1,097) (1,097) $ I bLO ~ !r..z I 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, 2007 REVENUES: Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 330,000 $ 330,000 $ 325,161 $ (4,839) 2,582 2,582 15,369 12,787 332,582 332,582 340,530 7,948 Taxes other than property Interest Total revenues EXPENDITURES: Capital outlay: Streets 340,257 340,257 51,472 51,472 391,729 391,729 407,148 407,148 Total expenditures Net change in fund balance $ $ 59,420 (74,566) $ (59,147) 273 FUND BALANCE: Beginning of year End of year 220,319 220,592 $ 106 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 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, 2007 ~I 1/'70< Budgeted Amounts Original Final REVENUES: Intergovernmental Total revenues $ OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund balance $ FUND BALANCE: Beginning of year End of year 107 $ $ Actual Amounts $ $ 52,884 52,884 Variance with Final Budget - Positive (Negative) $ $ 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, 2007 I~ ~ t1c< REVENUES: Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 236,869 $ 236,869 $ 233,630 $ (3,239) 28,927 28,927 23,128 (5,799) 29,000 29,000 9,995 (19,005) 294,796 294,796 266,753 (28,043) Intergovernmental Interest Other revenue Total revenues EXPENDITURES: Current: Highways and streets Health and welfare Capital outlay: Culture and leisure Total expenditures 5,822 7,564 7,563 1 94,933 99,793 67,866 31,927 79,874 78,132 75,526 2,606 180,629 185,489 150,955 34,534 $ 114,167 $ 109,307 115,798 $ 6,491 Net change in fund balance FUND BALANCE: Beginning of year End of year $ 201,877 317,675 108 I I I I I 'I I I I I I I I I I I I I I I I I I I I I I I I I I I ,I I I I I I 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, 2007 ~ b '1 J 7~ Total revenues Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 1,462,058 $ 1,462,058 $ 1,430,806 $ (31,252) 36 36 2,121 2,085 1,462,094 1,462,094 1,432,927 (29,167) REVENUES: Charges for services Interest EXPENDITURES: Current: Health and welfare Total expenditures 1,476,045 1,476,045 1,476,045 1,476,045 1,457,741 1,457,741 18,304 18,304 Net change in fund balance $ (13,951) $ (13,951) (24,814) $ (10,863) FUND BALANCE: Beginning of year End of year $ 11,558 (13,256) 109 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Local Recycling Program Special Revenue Fund For the year ended June 30, 2007 I Idlf ~/7:< I I I I I I I I I I I I I I I I I I Budgeted Amounts Original Final REVENUES: Interest $ $ Net change in fund balance $ $ FUND BALANCE: Beginning of year End of year 110 Actual Amounts $ 7,376 7,376 508,912 $ 516,288 Variance with Final Budget - Positive (Negative) $ 7,376 $ 7,376 I I I I I I I I I I I I I I I I I I I 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, 2007 /.2. 5 t2;f I"h< Budgeted Amounts Original Final REVENUES: Taxes other than property Interest $ 96,421 $ 6,739 103,160 96,421 $ 6,739 103,160 Total revenues EXPENDITURES: Capital Outlay Highways and streets Total expenditures 37,245 37,245 49,730 49,730 Net change in fund balance $ $ 65,915 53,430 FUND BALANCE: Beginning of year End of year 111 Actual Amounts 107,882 9,804 117,686 46,802 46,802 $ 70,884 203,875 274,759 Variance with Final Budget- Positive (Negative) $ 11,461 3,065 14,526 2,928 2,928 $ 17,454 I 1';(0 ~ 1'10< I I 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, 2007 REVENUES: Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 119,960 $ 119,960 $ 119,473 $ (487) 157,013 157,013 157,013 38 38 409 371 277,011 277,011 276,895 (116) Property taxes Intergovernmental Interest Total revenues EXPENDITURES: Current: Public safety Total expenditures 196,756 196,756 80,217 80,217 276,973 276,973 276,973 276,973 Net change in fund balance $ $ 80,101 $ 80,139 38 38 FUND BALANCE: Beginning of year End of year $ 39,090 119,229 112 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I 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, 2007 /;( 1 1 r"'k< Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) REVENUES: Intergovernmental Interest $ 172,000 $ 6,872 178,872 $ 264,311 $ 28,707 293,018 92,311 21,835 114,146 Total revenues 172,000 6,872 178,872 EXPENDITURES: Capital Outlay Highways and streets Total expenditures 166,873 166,873 182,292 182,292 182,292 182,292 (3,420) 110,726 $ 114,146 Net change in fund balance $ 11,999 $ FUND BALANCE: Beginning of year End of year $ 182,292 293,018 113 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, 2007 I \,)~ ~ 1'70<.. I I I I I I I I I I I I I I I I I I REVENUES: Budgeted Amounts Actual Original Final Amounts $ 4,158 $ 4,158 $ 5,462 5,000 5,000 2,026 211,383 211,383 215,735 220,541 220,541 223,223 Interest Other revenue Special assessments Total revenues EXPENDITURES: Current: General government: Public safety Highways and streets Community development Total expenditures 222,028 233,363 233,363 2,470 2,470 1,640 6,450 6,450 5,171 230,948 242,283 240,174 $ (10,407) $ (21,742) (16,951) Net change in fund balance FUND BALANCE: Beginning of year ~~~ $ 132,694 115,743 114 Variance with Final Budget - Positive (Negative) $ 1,304 (2,974) 4,352 2,682 830 1,279 2,109 $ 4,791 I I I I I I I I I I I I I I I I 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, 2007 /;2q 1 J7~ Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) REVENUES: Interest Special assessments Total revenues $ $ 1,403 63,636 65,039 $ 2,420 64,036 66,456 $ 1,017 400 1,417 1,403 63,636 65,039 EXPENDITURES: Current: Highways and streets Community development Total expenditures Net change in fund balance 79,552 79,552 62,513 17,039 1,265 1,265 1,025 240 80,817 80,817 63,538 17,279 $ (15,778) $ (15,778) 2,918 $ 18,696 FUND BALANCE: Beginning of year End of year 48,203 $ 51,121 I I I 115 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 30,2007 I /~O ~ /';U I I I I I I I I I I I I I I I I I I REVENUES: Budgeted Amounts Actual Original Final Amounts $ 2,493 $ 2,493 $ 3,909 1,194 92,858 92,858 93,098 95,351 95,351 98,201 Interest Other Revenue Special assessments Total revenues EXPENDITURES: Current: Highways and streets Community development Total expenditures 98,998 98,998 92,238 1,265 1,265 1,029 100,263 100,263 93,267 $ (4,912) $ (4,912) 4,934 Net change in fund balance FUND BALANCE: Beginning of year End of year 70,329 75,263 $ 116 Variance with Final Budget - Positive (Negative) $ 1,416 1,194 240 2,850 6,760 236 6,996 $ 9,846 I I I I I I I I I I I I I I I I I I I City of Dublin ) 3/ 0-f.. :1 '7 ~ Schedule of Revenues, Expenditures and Changes in Fund Balances - 1 Budget and Actual- Santa Rita Assessment District 97-1 Special Revenue Fund For the year ended June 30, 2007 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget - Positive (Negative) REVENUES: Interest Special assessments Total revenues $ 4,478 $ 225,400 229,878 4,478 $ 225,400 229,878 9,859 $ 209,986 219,845 5,381 (15,414) (10,033) EXPENDITURES: Current: Highways and streets Community development Total expenditures Net change in fund balance 257,413 257,413 253,889 3,524 1,295 1,295 1,056 239 258,708 258,708 254,945 3,763 $ (28,830) $ (28,830) (35,100) $ (6,270) FUND BALANCE: Beginning of year End of year $ 210,295 175,195 117 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual- East Dublin Street Lighting Assessment Special Revenue Fund For the year ended June 30, 2007 13~ 1 J'1c2 I I I I I I I I I I I I I I I I I I I REVENUES: Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 4,605 $ 4,605 $ 4,717 $ 112 4,700 4,700 (4,700) 144,217 144,217 133,289 (10,928) 153,522 153,522 138,006 (15,516) Interest Other revenue Special assessments Total revenues EXPENDITURES: Current: Public Safety Community development Total expenditures Net change in fund balance 96,972 96,972 92,129 4,843 2,825 2,825 2,279 546 99,797 99,797 94,408 5,389 $ 53,725 $ 53,725 43,598 $ (10,127) FUND BALANCE: Beginning of year End of year $ 76,959 120,557 118 I I I I I I I I I I I I I I I I I I I / 3.3:> ~ /702 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 five of these types of funds: Equipment Replacement, Fire Equipment and Station Replacement, Building Replacement, Retiree Health Care and PERS Side Fund. 119 134 ~ 110'< I City of Dublin Combining Statement of Net Assets I Internal Service Funds June 30, 2007 I Fire Equipment I Equipment and Station Building Retiree PERS Replacement Replacement Replacement Health Care Side Fund Total ASSETS I Current assets: Cash and investments $ 2,725,960 $ 1,680,923 $ 1,849,867 $ 229,457 $ $ 6,486,207 I Receivables: Accounts 2,310 2,310 Prepaid items 3,967 3,967 I Total current assets 2,732,237 1,680,923 1,849,867 229,457 6,492,484 Noncurrent assets: Land 6,842,037 6,842,037 I Construction in progress 1,751,687 1,751,687 Buildings and improvements 50,813,039 50,813,039 I Machinery and equipment 2,309,675 2,989,210 448,980 5,747,865 Less: accumulated depreciation (1,924,945) (1,569,941) (13,370,621) (16,865,507) Total noncurrent assets 384,730 1,419,269 46,485,122 48,289,121 I Total assets 3,116,967 3,100,192 48,334,989 229,457 54,781,605 LIABILITIES I Current liabilities: Accounts payable 27,652 27,652 I Total current liabilities 27,652 27,652 Noncurrent liabilities: Advances from other funds 3,569,754 3,569,754 I OPEB Obligation 229,457 229,457 Total noncurrent liabilities 229,457 3,569,754 3,799,211 I Total liabilities 27,652 229,457 3,569,754 3,826,863 NET ASSETS I Invested in capital assets 384,730 1,419,269 46,485,122 48,289,121 Unrestricted 2,704,585 1,680,923 1,849,867 (3,569,754) 2,665,621 Total net assets $ 3,089,315 $ 3,100,192 $ 48,334,989 $ $ (3,569,754) $ 50,954,742 I I I I 120 I City of Dublin /35 <frn I Combining Statement of Revenues, Expenses and Changes in Net Assets Internal Service Funds For the year ended June 30, 2007 I I Fire Equipment Equipment and Station Building Retiree PERS Replacement Replacement Replacement Health Care Side Fund Total I OPERATING REVENUES: Charges for services $ 790,302 $ 228,898 $ 142,438 $ 625,333 $ $ 1,786,971 Other revenue 104,187 49,047 1,322,088 1,475,322 I Total operating revenues 894,489 277,945 1,464,526 625,333 3,262,293 OPERATING EXPENSES: I Supplies and services 319,700 139,850 459,550 PERS retirement 3,569,754 3,569,754 I OPEB expenses 5,179,702 5,179,702 Depreciation 342,334 179,233 1,742,137 2,263,704 Total operating expenses 662,034 179,233 1,742,137 5,319,552 3,569,754 11,472,710 I Operating income (loss) 232,455 98,712 (277,611) (4,694,219) (3,569,754) (8,210,417) I NONOPERATING REVENUES: Interest income 107,029 66,126 75,029 229,457 477,641 I Total NON operating revenues 107,029 66,126 75,029 229,457 477,641 NONOPERATING EXPENSES: I Capital assets purchases Total NON operating expenses I Non operating income (loss) 107,029 66,126 75,029 229,457 477,641 I Change in net assets 339,484 164,838 (202,582) (4,464,762) (3,569,754) (7,732,776) NET ASSETS: I Beginning of year, as restated 2,749,831 2,935,354 48,537,571 4,464,762 58,687,518 End of year $ 3,089,315 $ 3,100,192 $ 48,334,989 $ $ (3,569,754) $ 50,954,742 I I I I 121 I City of Dublin /3C 1,J7~ Combining Statement of Cash Flows I Internal Service Funds For the year ended June 30, 2007 I Fire Equipment I Equipment and Station Building Retiree PERS Replacement Replacement Replacement Health Care Side Fund Total CASH FLOWS FROM OPERATING I ACTIVITIES: Receipts from customers $ 784,025 $ 228,898 $ 142,438 $ 625,333 $ $ 1,780,694 Payments to suppliers and service providers (323,110) (5,608,461) (5,931,571) I Other 104,187 49,047 1,322,088 1,475,322 Net cash provided (used) by operating activities 565,102 277,945 1,464,526 (4,983,128) (2,675,555) I CASH FLOWS FROM CAPITAL AND RELATED FINANCING I ACTIVITIES: Ca pi tal assets (250,178) (49,048) (1,322,088) (1,621,314) Net cash provided (used) for capital I and related financing activities (250,178) (49,048) (1,322,088) (1,621,314) CASH FLOWS FROM I INVESTING ACTIVITIES: Interest received 107,029 66,126 75,029 229,457 477,641 Net cash provided (used) for I investing activities 107,029 66,126 75,029 229,457 477,641 Net increase (decrease) in I cash and cash equivalents 421,953 295,023 217,467 (4,753,671) (3,819,228) CASH AND EQUIVALENTS: I Beginning of year 2,304,007 1,385,900 1,632,400 4,983,128 10,305,435 End of year $ 2,725,960 $ 1,680,923 $ 1,849,867 $ 229,457 $ $ 6,486,207 RECONCILIATION OF OPERATING I INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING I ACTIVITIES: Operating income (loss) $ 232,455 $ 98,712 $ (277,611 ) $ (4,694,219) $ (3,569,754) $ (8,210,417) Adjustments to reconcile operating income I (loss) to cash flows from operating activities: Depreciation 342,334 179,233 1,742,137 2,263,704 Net effect of changes in: I Accounts receivable (2,310) 3,569,754 3,567,444 Prepaid items (3,967) (3,967) Accounts payable (3,410) (518,366) (521,776) I OPEB Obligation 229,457 229,457 Net cash provided (used) by operating activities $ 565,102 $ 277,945 $ 1,464,526 $ (4,983,128) $ $ (2,675,555) I 122 I I I I I I I I I I I I I I I I I I I 1.3 71 /7';< 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. 123 City of Dublin Statement of Changes in Net Assets Agency Fund For the fiscal year ended June 30, 2007 I~g tf102 I I I Balance Balance I July 1, 2006 Additions Deletions June 30, 2007 I $ 210,634 $ 223,163 $ (213,910) $ 219,887 I 181,893 8,051 (18,055) 171,889 666 666 $ 392,527 $ 231,880 $ (231,965) $ 392,442 I $ 392,527 $ 231,880 $ (231,965) $ 392,442 I $ 392,527 $ 231,880 $ (231,965) $ 392,442 I I I I I I I I I I I 124 Dublin Boulevard Extension Assessment District Assets: Cash and investments Restricted cash and investments Interest Receivable Total assets Liabilities: Due to bondholders Total liabilities I I I I I I I I I I I I I I I I I I I 130; 0{ r'1~ STATISTICAL SECTION (Unaudited) 1 This part of the City of Dublin's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government' overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 125 City of Dublin General Governmental Activities Tax Revenues by Source and Governmental Activities Tax Revenues by Source Last Ten Fiscal Years ILf() ~/ J'1~ I I I Fiscal Year Property Transient Ended Property Sales Franchise Transfer Occupancy June 30 Tax Tax Tax Tax Tax Total 1998 $ 4,351,859 $ 8,191,521 $ 759,803 $ 231,331 $ 306,318 $ 13,840,832 1999 4,866,093 8,859,652 849,959 282,733 389,664 15,248,101 2000 5,991,814 11,741,563 963,070 370,946 808,688 19,876,081 2001 7,174,290 13,204,429 1,313,087 575,282 1,010,799 23,277,887 2002 8,885,812 13,093,676 1,385,816 434,832 810,220 24,610,356 2003 10,142,650 13,573,607 1,394,953 379,089 717,083 26,207,382 2004 11,422,308 14,297,705 1,505,435 571,361 664,309 28,461,118 2005 14,167,079 14,517,465 1,559,900 831,003 663,632 31,739,079 2006 16,891,670 14,807,059 1,789,356 690,404 727,612 34,906,101 2007 20,266,216 14,025,869 2,111,281 596,533 800,773 37,800,672 Source: City of Dublin Finance Department I I I I I I Notes: The City experienced a dramatic decline in Transient Occupancy Taxes following the September 11, 2001 national tragedy and the down turn that occurred in the San Francisco Bay Area economy that occurred during 2001-2005. The City has experienced significant growth in most other types of taxes due to significant residential and commercial growth that has occurred during the last few years. I I I I I I I! I I 126 I I City of Dublin Net Assets by Component Last Five Fiscal Years (accrual basis of accounting) f4/1 t102 I I I Fiscal Year 2002 2003 2004 2005 2006 2007 Governmental activities: Invested in capital assets, net of related debt $ 42,960,899 $ 61,016,642 $ 80,050,710 $ 383,667,187 $ 387,888,143 $ 399,631,407 Restricted 43,339,073 34,110,132 37,455,125 45,288,468 48,480,463 45,647,928 Unrestricted 45,579,288 50,413,267 50,943,803 52,176,440 57,766,785 61,789,687 Total governmental activities net assets $ 131,879,260 $145,540,041 $ 168,449,638 $ 481,132,095 $ 494,135,391 $ 507,069,022 I I I I Source: City of Dublin Finance Department I Notes: The City of Dublin implemented GASB34 for the fiscal year ended June 30, 2002. Information prior to the implementation of GASB34 is not available. The significant increase in Capital Assets in Fiscal Year 2004-2005 is due to a retroactive valuation recorded for the City's existing infrastructure in accordance with GASB 34. I I I I I I I I I I 127 City of Dublin , tr~ ~ 1 'lot I Changes in Net Assets I Last Five Fiscal Years (accrual basis of accounting) I Fiscal Year I 2002 2003 2004 2005 2006 2007 Expenses: Governmental activities: I General government $ 4,658,653 $ 6,135,344 $ 6,288,645 $ 3,081,581 $ 4,940,586 $ 8,866,758 Public safety 12,449,573 14,026,216 17,135,716 19,047,262 20,314,535 22,306,240 Highways and streets 5,277,778 15,187,872 939,260 19,810,590 13,894,865 17,182,208 I Health and welfare 1,193,542 1,349,228 3,755,564 1,722,224 1,887,417 1,816,800 Culture and leisure services 3,901,126 4,730,430 1,603,494 8,954,495 10,074,239 14,080,040 Community development 4,557,634 5,334,646 6,113,171 7,210,558 8,553,887 11,157,417 I Interest on long-term debt Total governmental activities expenses 32,038,306 46,763,736 35,835,850 59,826,710 59,665,529 75,409,463 Program revenues: I Governmental activities: Charges for services: I General government 202,732 202,330 2,603 5,198 4,011 208,247 Public safety 913,612 1,073,145 851,864 1,197,925 1,270,233 2,284,955 Highways and streets 28,021 25,609 2,321,473 2,451,377 2,167,740 745,727 I Health and welfare 978,499 1,033,317 1,558,930 1,541,361 2,092,566 2,483,619 Culture and leisure services 848,701 1,009,572 1,252,866 1,617,013 1,751,965 1,508,752 Community development 4,803,099 5,182,361 6,135,027 6,969,366 6,629,383 9,432,854 I Operating grants and contributions 1,503,109 1,824,388 239,094 169,906 238,053 2,813,079 Capital grants and contributions 23,150,710 19,424,093 15,364,732 42,585,906 18,900,426 25,973,730 Total governmental activities program revenues 32,428,483 29,774,815 27,726,589 56,538,052 33,054,377 45,450,963 I Net revenues (expenses): $ 390,177 $ (16,988,921) $ (8,109,261) $ (3,288,658) $ (26,611,152) $ (29,958,500) General revenues and other changes in net assets: I Governmental activities: Taxes: I Property taxes 9,447,544 10,783,414 11,422,308 14,167,079 16,891,670 20,266,216 Sales tax 12,813,111 13,193,407 13,940,263 14,152,987 14,363,863 14,025,869 Other taxes 2,630,868 2,491,125 2,865,226 3,181,939 3,343,943 3,508,587 I Motor vehicle tax, unrestricted 1,940,341 2,072,440 1,682,152 413,075 856,766 261,276 Invesbnent income, unrestricted 2,127,156 1,710,903 799,008 2,704,647 2,505,911 4,053,187 Other general revenues 511,652 398,413 309,901 199,233 280,386 1,109,734 I Transfers Total governmental activities 29,470,672 30,649,702 31,018,858 34,818,960 38,242,539 43,224,869 Changes in net assets $ 29,860,849 $ 13,660,781 $ 22,909,597 $ 31,530,302 $ 11,631,387 $ 13,266,369 I Source: City of Dublin Finance Deparbnent Notes: The City of Dublin implemented GASB34 for the fiscal year ended June 30, 2002. Information prior to the implementation of I GASB34 is not available. 128 I I I I I I I I I I I I I I I I I I I I )lf31 (70( This page intentionally left blank. 129 City of Dublin Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) I I Lt 0 q)~ 1'7..z I I Fiscal Year 1998 1999 2000 2001 2002 General Fund Reserved $ 316,310 $ 67,027 $ 73,144 $ 65,175 $ 75,221 Unreserved Economic Uncertainty 1,369,133 1,369,133 1,369,133 1,369,133 1,369,133 Capital improvements 2,449,955 10,496,927 9,710,107 Affordable Housing 626,360 Compensated Absences Designated for authorized 24,498,396 15,631,867 21,019,752 22,858,588 27,545,240 expenditures Undesignated Total general fund $ 26,183,839 $ 17,068,027 $ 24,911,984 $ 34,789,823 $ 39,326,061 I I I I I All Other Governmental Funds Reserved Unreserved, reported in: Special revenue funds Capital projects funds Undesignated Total all other governmental funds $ 8,711,825 $ 15,638,953 $ 23,366,124 $ 30,722,073 $ 43,279,073 I I (4,142) $ 23,361,982 $ 30,722,073 $ 43,279,073 I (248,048) $ 8,463,777 (6,053) $ 15,632,900 $ 34,647,616 $ 32,700,927 $ 48,273,966 $ 65,511,896 $ 82,605,134 Total All Governmental Funds I Source: City of Dublin Finance Department Note: All Other Goverrunental Funds includes the City's Major and Non Major Capital Project and Special Revenue Funds, excluding General Fund. I I I I I I 130 I I I I I Fiscal Year 2003 2004 2005 2006 2007 I $ 529,811 $ 1,896,575 $ 2,275,433 $ 2,080,678 $ 5,741,942 1,651,965 2,719,008 2,970,721 2,970,720 2,970,722 I 8,089,385 6,400,290 6,572,591 5,985,440 4,258,539 1,000,000 1,000,000 1,000,000 1,000,000 I 33,665,113 32,581,785 32,971,221 38,860,039 44,328,550 $ 43,936,274 $ 44,597,658 $ 45,789,966 $ 50,896,877 $ 58,299,753 I I $ 34,665,390 $ 37,395,125 $ 44,948,468 $ 48,140,467 $ 43,485,046 I (1,075,338) (1,810,979) (2,202,289) (1,893,598) (1,791,762) I $ 33,590,052 $ 35,584,146 $ 42,746,179 $ 46,246,869 $ 41,693,284 $ 77,526,326 $ 80,181,804 $ 88,536,145 $ 97,143,746 $ 99,993,037 I I I I I I I I 131 /47 ~ 1 '1oZ City of Dublin I I Lf~ A 17p( Changes in Fund Balances of Governmental Funds I Last Ten Fiscal Years (modified accrual basis of accounting) I Fiscal Year 1998 1999 2000 2001 2002 I Revenues: Property taxes $ 4,351,858 $ 4,866,093 $ 5,991,816 $ 7,174,290 $ 8,885,812 Taxes other than property 9,563,695 10,458,693 13,962,982 16,185,183 15,650,789 I Intergovernmental 2,159,609 2,633,035 3,056,557 4,129,090 4,702,126 Licenses and permits 1,398,677 2,472,217 3,897,965 3,028,655 2,327,251 Charges for services 3,199,115 4,189,973 4,041,472 4,486,440 5,330,051 I Investment income 1,600,414 1,372,152 1,375,317 2,725,077 3,743,415 Use of property 70,461 90,539 85,831 114,614 85,937 Fines and forfeitures 71,017 126,734 197,914 242,363 267,214 I Developer fees 845,948 2,257,955 10,337,149 8,882,375 19,685,682 Special assessments 276,346 253,175 318,355 384,649 431,564 Other revenues 527,960 276,065 767,795 2,736,852 526,716 I Total revenues 24,065,100 28,996,631 44,033,153 50,089,588 61,636,557 Expenditures Current: I General government 3,254,991 3,754,145 2,274,914 3,085,725 3,929,919 Public safety 8,566,630 9,145,346 9,892,983 10,960,752 12,523,197 Highways and streets 1,090,290 1,240,171 1,504,050 1,445,943 1,546,347 I Health and welfare 764,979 851,699 893,254 1,139,399 1,196,457 Culture and leisure services 2,172,597 2,248,581 2,827,621 3,332,421 4,012,730 Community development 2,824,242 3,664,025 4,138,916 4,572,981 4,678,311 I Capital outlay: General 435,068 197,770 3,171,380 1,367,829 8,900,230 Health and welfare I Community improvements 315,869 439,204 297,468 1,477,404 353,534 Parks 328,069 1,967,279 6,537,813 182,710 226,440 Streets 1,140,983 1,762,476 3,045,354 9,099,539 6,925,150 I Debt service: Principal 251,004 251,004 251,004 251,004 Total expenditures 20,893,718 25,521,700 34,834,757 36,915,707 44,543,319 I Excess (deficiency) of revenues over (under) I expenditures 3,171,382 3,474,931 9,198,396 13,173,881 17,093,238 Other financing sources (uses): Transfers in 52,102 686,293 17,869 16,202 16,785 I Transfers out (60,487) (12,815,834) (949,510) (2,416,202) (16,785) Total other financing sources (uses) (8,385) (12,129,541) (931,641) (2,400,000) I Net change in fund balances $ 3,162,997 $ (8,654,610) $ 8,266,755 $ 10,773,881 $ 17,093,238 Debt service as a percentage of I noncapital expenditures 0.0% 1.2% 1.2% 1.0% 0.9% Source: City of Dublin Finance Department 132 I lit- Q ~ ) "Ie:) City of Dublin Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years I I Fiscal City Wide Avg Year Taxable Total Ended Residential Commercial Industrial Unsecured/ Less: Assessed Direct Tax June 30 Property Property Property Other Property Exemptions Value Rate 1998 $ 1,180,150,877 $ 247,373,249 $ 106,842,182 $ 203,198,518 $ (54,649,613) $ 1,682,915,213 0.2491 % 1999 1,325,055,883 269,605,070 123,225,613 246,256,948 (63,706,453) 1,900,437,061 0.2477% 2000 1,497,994,724 332,044,309 161,558,266 394,432,584 (66,691,923) 2,319,337,960 0.2447% 2001 1,852,468,604 439,284,508 178,875,023 595,033,189 (60,674,335) 3,004,986,989 0.2416% 2002 2,437,438,709 653,528,807 141,438,754 556,968,264 (64,396,816) 3,724,977,718 0.2398% 2003 2,825,719,751 877,069,998 140,636,627 534,477,740 (69,498,931) 4,308,405,185 0.2398 % 2004 3,233,586,490 998,908,661 147,997,335 561,725,805 (70,891,008) 4,871,327,283 0.2397% 2005 3,730,424,115 1,032,552,391 154,758,385 662,659,500 (72,612,237) 5,507,782,154 0.2397% 2006 4,520,222,157 1,052,701,438 162,182,398 652,279,788 (77,085,570) 6,310,300,211 0.2390% 2007 5,345,937,692 1,068,813,294 161,909,866 873,737,282 (80,274,178) 7,370,123,956 0.2387% Assessed Value of Taxable Property 8.0 7.0 6.0 Ul I:: 0 5.0 .... - - .... ~ I:: 4.0 ~ <Jl "" <a 3.0 - - 0 Cl 2.0 1.0 p,~ {I ~&. "" 0,0,0, '\: ~~ "19 ~lo "19 ~~ "19 ,,~'), ~":J ~ "19 Fiscal Years ~~ "19 ~"" "19 Source: Alameda County Office of the Auditor-Controller Notes: 1) In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1 % based upon the assessed value of the property being assessed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. 2) The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property. 3) The City-wide Direct Tax Rate is an average, the actual tax rate for each property varies according to its tax rate area. This average tax rate is net of State Shifts of local property tax revenue to Education and net of admin fees. 134 I I I I I I I I I I I I I I I I I I City of Dublin Direct and Overlapping Property Tax Rates (Rate per $100 of assessed value) Last Ten Fiscal Years lit q 1- /'1..2 I I I Fiscal Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 City Direct Rate: 0.2818 0.2818 0.2818 0.2818 0.2818 0.2818 0.2818 0.2818 0.2818 0.2818 Overlapping Rates: Alameda County General 0.3104 0.3104 0.3104 0.3104 0.3104 0.3104 0.3104 0.3104 0.3104 0.3104 Alameda County Library 0.0549 0.0557 0.0500 0.0500 0.0500 0.0500 0.0500 0.0500 0.0500 0.0500 Bay Area Rapid Transit 0.0287 0.0234 0.0067 0.0067 0.0067 0.0067 0.0067 0.0067 0.0115 0.0117 Chabot - Las Positas College 0.0275 0.0275 0.0275 0.0275 0.0275 0.0275 0.0275 0.0461 0.0433 0.0434 Dublin Unified School District 0.3340 0.3236 0.3043 0.3043 0.2957 0.2938 0.2938 0.2908 0.3326 0.3394 East Bay parks bond 0.0401 0.0412 0.0385 0.0385 0.0385 0.0434 0.0434 0.0434 0.0377 0.0405 Flood Zone 7 State Water Bonds 0.0407 0.0392 0.0374 0.0374 0.0387 0.0374 0.0374 0.0343 0.0359 0.0380 Other Goverrunental Agencies 0.0178 0.0178 0.0178 0.0178 0.0106 0.0121 0.0121 0.0121 0.0177 0.0178 Total Direct Rate 1.1359 1.1206 1.0744 1.0744 1.0599 1.0631 1.0631 1.0756 1.1210 1.1330 I I I I I I I I Source: Alameda County Assessor's Office for Tax Rate Area 26-021 (Largest Tax Rate Area (TRA) in the City) This T~ represents 38% of the total assessed value in the City. The City has a total of 38 different TRA administered by the County Tax Collector and the City share of Propert) Tax can vary by each TRA. I Notes: In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of voter approved bonds from various agencies. I I I I I I 135 City of Dublin Principal Property Taxpayers Current, And Nine Years Ago 15P <;{ r-tJ I I Taxpayer Shops at Waterford LLC Start HQ 2003 Bit Holdings Fifty Six Inc Chang Lin, Et. Al City of Dublin Bere Island Properties I LLC Etal Bit Investment Eleven Limited Partnership Security Capital Pacific Trust Cisco Systems Inc Park Sierra LLC Rafanelli and Nahas Lucky Stores Inc. Bay Apartment Communities Inc. Northwestern Mutual Life Insurance Company Phoenix Mutual Life Insurance Company Chang & Frederic Lin Eagle Creek Properties Inc. RReef Performance Partnership Amador Lakes Associates Spring Inc. 2007 Percent of Total Assessed Value Assessed Value $ 123,249,776 109,632,683 107,100,000 105,363,401 80,209,477 79,014,656 67,261,858 65,651,789 49,639,663 46,499,771 $ 833,623,074 Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls 136 1.67% 1.49% 1.45% 1.43% 1.09% 1.07% 0.91% 0.89% 0.67% 0.63% 11.31% 1998 I I Percent of Total Assessed Value Assessed Value $ 29,064,141 26,698,782 22,581,972 19,874,760 15,795,819 15,667,127 14,157,787 13,658,427 12,539,650 12,473,731 $ 182,512,196 I I I I 1.73% 1.59% 1.34% 1.18% 0.94% 0.93% 0.84% 0.81% 0.75% 0.74% I I I 10.85% I I I I I I I I I I I I II I I I I I I I II I I I I I I City of Dublin Property Tax Levies and Collections Last Ten Fiscal Years /S! 1 l'l~ Fiscal Collected within the Year Total Tax Fiscal Year of the Levy Collected in Total Collections to Date Ended Levy for Percentage Subsequent Percentage June 30 Fiscal Year Amount of Levy Years Amount of Levy 1998 $ 4,184,413 $ 4,074,407 94.7% $ 92,357 $ 4,166,764 99.6% 1999 4,798,501 4,517,234 97.4% 86,600 4,603,834 95.9% 2000 5,765,531 5,499,897 94.1% 98,390 5,598,287 97.1% 2001 7,333,215 6,959,769 95.4% 127,641 7,087,410 96.6% 2002 9,187,641 8,655,872 94.9% 215,980 8,871,852 96.6% 2003 10,732,663 10,142,650 94.2% 412,595 10,555,245 98.3% 2004 11,858,495 11,826,609 94.5% 31,886 11,858,495 100.0% 2005 12,626,880 12,354,685 97.8% 245,157 12,599,842 99.8% 2006 13,909,466 13,530,450 97.3% 254,535 13,784,985 99.1% 2007 17,275,854 15,550,438 90.0% NjA 15,550,438 90.0% Property Tax Collection 16 15 14 13 <n12 = .911 :;:10 ~ 9 ..s 8 ";;7 "" <a 6 =a 5 Cl 4 3 Pl~ ~ ~~ "19 & "19 ~~'), "" ~~ "19 ~lo "19 Plo, ~ ~~ "19 ~'? "19 ~"" "19 Fiscal Year Source: Alameda County Office of the Auditor-Controller Notes: 1) Total Levy includes Secured, Unsecured, and Estimated Unitary Property Taxes 2) Total Collection includes Secured, Unsecured, and Estimate Unitary Property Taxes less County's administrative cost and E.R.A.F. 137 City of Dublin Direct and Overlapping Debt June 30, 2007 tSeA c;f.. r1~ I I 1.8820% $ 87,185,000 $ 1,640,822 10.1040% 488,944,226 49,402,925 0.4920% 71,980,000 354,142 99.8500% 79,505,000 79,385,743 2.7300% 166,295,000 4,539,854 100.0000% 1,061,000 1,061,000 100.0000% 1,136,572 1,136,752 $ 896,106,798 $ 137,521,238 Notes: 1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value. 2) Overlapping governments are those that coincide, generally, within the geographic boundaries of the City. 3) This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. 4) Combined Total Debt exludes tax and revenue anticipatiionnotes, enterprise revenue, mortage revenue, tax allocation bonds, and non-bonded capital lease obligations. Total Property Tax Assessed Value of Taxable Property Percentage Applicable to City of Dublin Outstanding Debt 6/30/07 OVERLAPPING DEBT REPAID WITH PROPERTY TAXES Bay Area Rapid Transit District Chabot-Las Positas Community College District Castro Valley Unified School District Dublin Joint Unified School District East Bay Regional Park District City of Dublin 1915 Act Bonds California Statewide Communities Development Authority 1915 Act Bonds Total overlapping debt repaid with property taxes OVERLAPPING OTHER DEBT Alameda County General Fund Obligations 4.7330% $ 462,174,000 4.7330% 254,826,843 4.7330% 490,000 0.0210% 18,905,000 10.1040% 5,145,000 0.4920% 1,060,000 $ 742,600,843 Alameda County Pension Obligations Alameda County Superintendent of Schools Certificates of Participation Alameda - Contra Costa Transit District Certificates of Participation Chabot-Las Positas Community College District Certificates of Participation Castro Valley Unified School District Certificates of Participation Total Overlapping Other Debt COMBINED TOTAL DEBT Source: California Municipal Statistics, Inc. 138 $ 7,370,123,956 I Estimated Share of Overlapping Debt I I I I I I I $ 21,874,695 I 12,060,954 23,192 I 3,970 519,851 I 5,215 $ I 34,487,877 $ 172,009,115 I I I I I I I I I I I I I I I I I I I I I I I I 1![3 ~/7~ This page intentionally left blank. 139 City of Dublin Legal Debt Margin Information Last Ten Fiscal Years 154~/'k<1 . I Fiscal Year 1998 1999 2000 2001 $ 1,682,915,213 $ 1,900,437,061 $ 2,353,646,360 $ 3,004,986,989 54,649,613 63,706,453 32,383,523 60,674,335 $ 1,737,564,826 $ 1,964,143,514 $ 2,386,029,883 $ 3,065,661,324 25% 25% 25% 25% $ 434,391,207 $ 491,035,879 $ 596,507,471 $ 766,415,331 15% 15% 15% 15% $ 65,158,681 $ 73,655,382 $ 89,476,121 $ 114,962,300 I I Assessed valuation Add back exempted real property I Total assessed valuation I Conversion Ratio Converted assessed valuation I Debt limit percentage I Debt limit I Total net debt applicable to limit: General obligation bonds I Legal debt margin $ 65,158,681 $ 73,655,382 $ 89,476,121 $ 114,962,300 I Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% Source: City of Dublin Finance Department I Notes: 1. The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from5% of market value. Effective with the the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. 2. Excludes 1915 Act Bonds since they are not General Obligation Debt of the City of Dublin. I I I I I I 140 I I I I I I I I I I I I I I I I I I I I I~S ~ /102 Fiscal Year 2002 2003 2004 2005 2006 2007 $ 3,724,977,718 $ 4,308,405,185 $ 4,871,327,283 $ 5,507,782,154 $ 6,310,300,211 $ 7,370,123,956 64,396,816 70,891,008 70,891,008 72,612,237 77,085,570 80,274,178 $ 3,789,374,534 $ 4,379,296,193 $ 4,942,218,291 $ 5,580,394,391 $ 6,387,385,781 $ 7,450,398,134 25% 25% 25% 25% 25% 25% $ 947,343,634 $ 1,094,824,048 $ 1,235,554,573 $ 1,395,098,598 $ 1,596,846,445 $ 1,862,599,534 15% 15% 15% 15% 15% 15% $ 142,101,545 $ 164,223,607 $ 185,333,186 $ 209,264,790 $ 239,526,967 $ 279,389,930 $ 142,101,545 $ 164,223,607 $ 185,333,186 $ 209,264,790 $ 239,526,967 $ 279,389,930 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 141 City of Dublin Demographic And Economic Statistics Last Ten Fiscal Years I ?V ~ 110< Per Capita Rank in Size of Fiscal Year Ended Personal Income Personal Income Unemployment California Cities June 30 City Population (1) (in Thousands) (2) (2) Rate (3) (1) 1997 25,544 $ 715,973 $ 28,029 2.90% 225 1998 26,725 787,292 29,459 2.60% 224 1999 28,707 906,395 31,574 2.40% 222 2000 32,519 1,100,963 33,856 2.00% 205 2001 32,570 1,252,838 38,466 1.70% 209 2002 33,520 1,279,525 38,172 2.60% 209 2003 35,545 1,343,174 37,788 4.00% 204 2004 38,330 1,478,886 38,583 4.00% 193 2005 39,931 1,633,977 40,920 3.40% 192 2006 41,907 1,777,192 42,408 3.00% 190 2007 43,630 NjA NjA 2.60% 184 Sources: 1) State of California Department of Finance, Demographic Research, City Population Rankings, estimate each January 2) City of Dublin Economic Development 3) State of California Employment Development Department City Population (1) 45,000 ~~ 40,000 QI N 35,000 iii e /,-:a 4~' 0 ..0 ru -a --------------.---------------.-------- ------------_.------------------------------------------~----------------------------------------------------------- p., 30,000 0 Po. ~. ~. 25,000 ~. ----- --------._-.-----------------------------------_.------------------------------------------------------------.-------------------------------------- 20,000 , -, ~ p,'+> ~~~ ~<;;j f\)<;;j"> f\)<;;j'V f\)<;;j'? f\)& ~ ~Io f\)~ ~ ~ "> ~ 'I:l 'I:l 'I:l 'I:l ~ ~ 'I:l Fiscal Year 142 I I I I I I I i I I o I I I I I I I I - II I 'I I II I II City of Dublin Property Value, Construction And Bank Deposits Last Ten Fiscal Years /5791 1'70( I I Commercial Residential Fiscal Year Ended Total Number of Construction Value Construction Value June 30 Permits Issued (1) (1) (1) Bank Deposits (2) 1998 1020 $ 29,159,270 $ 83,205,153 $ 641,921,000 1999 1552 93,428,185 135,438,240 684,749,000 2000 2521 107,242,721 180,258,804 715,313,000 2001 1828 113,618,557 155,286,401 809,281,000 2002 1015 63,476,079 123,149,627 900,670,000 2003 1157 46,448,163 178,361,169 980,220,300 2004 1154 18,575,621 242,563,776 488,343,000 2005 1275 56,481,612 283,817,542 566,441,000 2006 1199 96,389,754 207,862,999 NjA 2007 1214 56,832,041 178,094,884 NjA Source: 1) City of Dublin Building Department Status Reports 2) Findley Reports, Inc Bank Deposits represents the amount of cash deposits held by financial institutions within the City I II ,I I New Construction Value- Commercial vs Residential 300 50 -e- Commercial II I I I II :1 'I I 250 - ~ 200 .S! - - ~ c:: 150 t=.. </} "" o::l - - 8 100 ~ Residential u_ _.__ ___.______~ uu____uu_u__u_______________________.__ _ ________ n_ u_ __ _ _ u_u____u_uuuuuuuu~uu .u__uu______ .u_u_uu________u . . ~o,'O ~o,o, riS'~~ riS'~'\. riS'~~ riS'~'? riS'& riS'~":J riS'~'o riS'~ Fiscal Year 143 City of Dublin Principal Employers Last Two Year !~~ ~ 17<>< Number of Number of 2007 Employees Ranking 2006 Employees United State Government United States Government N/A Camp Parks 1877 1 Camp Parks Prisons - Federal Correction Institute 256 2 Prisons - Federal Correction Institute AT&T N/A AT&T N/A Zeiss Meditec 700 3 Zeiss Meditec N/A Sybase Corporation 664 4 Sybase Corporation N/A Dublin Unified School District 583 5 Dublin Unified School District N/A County of Alameda 486 6 County of Alameda N/A Safeway 450 7 Safeway N/A Micro Dental 319 8 Micro Dental Laboratories N/A City of Dublin 218 9 City of Dublin N/A Franklin Resources 170 10 Franklin Resources N/A Source: City of Dublin Finance and Economic Development Department Note: Information regarding Principal Employers in prior Fiscal Years was also not available. 144 I I I I I I I I I I I I I I I I I I I I City of Dublin 15<91 /7~ I Full-time Equivalent City and Contract Government Employees by Function Last Ten Fiscal Years I Fiscal Years I 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 General government I City Manager 3.50 3.50 3.75 4.00 5.50 5.50 5.75 6.00 7.17 6.25 Adminstrative Services 6.50 7.50 8.10 9.30 10.00 10.00 11.00 11.50 11.50 11.50 Central Services & Building Management 2.18 2.08 3.04 2.85 3.71 3.60 3.65 3.40 3.43 3.75 I Public Safety: Police 40.00 40.00 42.50 47.50 52.50 55.00 54.00 54.00 57.00 59.00 I Fire 28.58 29.16 30.17 30.97 30.98 40.00 39.89 40.89 40.25 40.25 Disaster Preparedness 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.33 0.33 0.33 I Transportation Public Works 4.50 4.75 5.00 6.00 6.50 6.50 6.50 6.50 6.50 7.50 Street Maintenance 4.87 4.99 5.56 5.39 5.55 7.60 9.00 9.46 10.14 10.57 I Health and welfare Housing 1.00 1.00 1.00 1.75 1.75 1.75 I Waste Management 0.33 0.33 0.33 Culture and leisure services I Parks Community Services 8.25 10.25 11.25 11.75 12.50 12.50 13.00 14.00 14.00 14.00 Parks/Facilities Maintenance 4.59 4.78 5.09 6.38 7.60 7.79 8.48 8.70 9.10 9.53 Parks/Facilities Management 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 I Library Services 0.20 0.60 0.51 0.51 0.48 Heritage & Cultural Arts 0.80 0.81 0.83 1.15 1.96 1.93 1.93 2.31 2.30 2.32 I Community development Planning & Building 14.40 18.01 21.50 22.50 25.00 25.00 26.00 32.00 34.50 33.90 Economic Development 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 I Engineering 6.00 7.00 13.00 13.00 13.00 14.00 13.00 13.35 13.35 13.35 Total 125.67 134.33 152.29 163.29 179.30 194.12 197.30 208.03 215.16 217.81 I Source: City of Dublin Finance Department I Note: Include Full Time, Part Time, and Contract Employees I I I 145 City of Dublin I ~ 0 ~/Y~ I Operating Indicators by Function I Last Ten Fiscal Years Fiscal Year Ended June 30 of I 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 I Function Police: Calls for Service 39,116 35,981 39,976 46,970 50,613 52,708 49,379 48,388 46,197 41,306 I Citations Issued 7,211 6,672 7,308 9,624 8,364 10,501 11,081 10,911 10,595 11,676 Arrests 1,224 1,506 1,344 1,272 1,418 1,376 1,614 1,631 2,020 1,668 I Fire: Emergency calls 1,111 1,427 1,634 1,645 1,797 1,872 1,724 1,742 1,771 1,780 Inspections 2,773 6,051 7,873 7,129 5,182 5,021 4,951 3,249 4,122 4,048 I Building Plan Reviews and Consultations N/A N/A 843 989 1,270 1,381 1,249 858 1,006 1,049 Public works: I Bike Path Maintenance (hours) 184 118 100 270 141 230 428 783 726 810 Street Sign Maintenance (number of signs) 285 299 326 317 211 643 308 353 435 427 Curb Painting (linear feet) 6,304 5,492 5,128 1,637 2,749 2,993 1,607 1,404 3,991 4,006 I Replace Street Asphalt (square feet) 114,000 101,600 256,895 19,545 12,320 5,500 3,000 7,500 7,950 13,800 Street Sweeping (curb miles) 4,038 4,069 4,304 4,336 4,529 5,116 5,371 5,686 5,730 5,927 Parks and recreation: I Museum Visitors 593 425 420 1,012 793 300 900 800 1,350 2,140 Afterschool Recreation (participants/ day) 112 115 128 126 134 140 128 129 138 153 I Preschool Classes Participants 180 171 171 177 176 214 268 224 285 254 Youth Basketball League Participants 290 352 360 397 445 476 536 547 580 588 Senior Center Average Daily Attendance 94 102 92 92 97 111 110 110 149 180 I Community Development Planning Applications N/A 53 54 44 56 78 71 73 59 55 I Building Permits 1,020 1,552 2,521 1,828 1,429 1,617 1,639 1,837 1,855 1,910 Building Inspections 13,075 21,514 28,232 19,073 16,492 24,682 31,571 33,534 34,244 36,071 Source: City of Dublin I I I I! I 146 I I I I I I I I I I I I I I I I I I I I City of Dublin Capital Asset Statistics by Function Last Ten Fiscal Years 1M { 1'70<. 1997 1998 1999 Fiscal Year Ended June 30 of 2000 200t 2002 2003 2004 2005 2006 2007 Function Public Safety Police Stations Fire Stations 1 2 1 2 1 2 1 2 1 2 1 2 1 3 1 3 111 333 Public works: Street Lights Miles of Streets Miles of Curbs Traffic Signals City Street Trees City Landscape (acres) 1,797 1,797 1,904 2,173 2,383 2,504 2,872 2,958 3,469 3,752 3,972 60 60 60 63 63 65 81 81 81 81 104 164 164 164 172 172 180 202 202 202 202 23 27 30 31 42 49 55 60 62 67 75 2,927 2,927 2,927 3,174 3,174 4,585 5,148 5,401 5,955 6,084 6,084 21 21 21 22 22 33 38 38 43 45 45 Parks and recreation: Number of Community Facilities Number of City Parks Acres of City Parks Acres of Open Space 4 5 5 5 5 5 6 6 666 8 60 107 8 60 107 8 60 107 8 60 107 9 77 107 9 84 107 11 109 122 11 109 122 11 11 11 109 109 121 126 126 126 Source: City of Dublin 147 City of Dublin Top 25 Sales Tax Producers 2006-2007 i Ib~ 1 /7d< I BUSINESS NAME BUSINESS CATEGORY I Alameda County Auction Alcosta Shell Arco AM/PM Mini Mart Bed Bath & Beyond Best Buy Cal Steam East Bay Circuit City Crown Chevrolet/ Oldsmobile/ Cadillac/ Isuzu Dublin Chevron Dublin Dodge/ Nissan/V olkswagen/Hyundai Dublin Honda Dublin Toyota Home Depot John Deere Landscape Mervyn's Old Navy Orchard Supply Hardware Safeway Safeway Gas Sales Shamrock Ford Stoneridge Chrysler Jeep T J Maxx Target Toys R Us Tri Valley Buick Pontiac GMC Used Automotive Dealers Service Stations Service Stations Home Furnishings Electronics/ Appliance Stores Plumbing/Electrical Supplies Electronics/ Appliance Stores New Motor Vehicle Dealers Service Stations New Motor Vehicle Dealers New Motor Vehicle Dealers New Motor Vehicle Dealers Lumber/Building Materials Garden/ Agricultural Supplies Department Stores Family Apparel Hardware Store Grocery Store Liquor Service Stations New Motor Vehicle Dealers New Motor Vehicle Dealers Family Apparel Discount Department Store Specialty Stores New Motor Vehicle Dealers I I i I I I I I 20 Sales Taxes I Ul 15 I:: S ..... ::2: I:: t:j. 10 '" :a - '0 Cl I I 5 I p,'+> OJ (0.':" ~~ "> p,~ OJ ft:f"> ~Oj "> ~<;;j R:5 p,'); ~Oj "> ~"> R:5 ~? f\)\S 'I:l f\)<;;j'V f\)<;;j'? ~? (V'I:l <f'<;;j <f'<;;j Fiscal Year ~I>. R:5 r:? f\)<;;j 'I:l ~~ R:5 !>('I:l f\)\;j 'I:l ~Io R:5 ~? f\)\:i 'I:l & ~ ~'d ~ I Source: Hinderliter, de Llamas & Associates, State Board of Equalization I Notes: Percent of Total City Sales Tax Paid By Top 25 Accounts = 56.29% State Law does not allow disclosure of the top ten sales tax providers to the City Top producers listed in alphabetically order, period July 2006 thru March 2007 i 148 ~ I I City of Dublin Miscellaneous Statistical Data June 30, 2006 /02 r /11< I I I I I I I I I I I I I I I Source: City of Dublin I I General Date of Incorporation Form of Government Population Number of Registered Voters Employees, City and Contract (Full Time Equivalent) Area (Square Miles) Miles of Streets Miles of Curbs Signalized Intersections Street Lights Parks and Recreation Parks Acres in Parks Acres in Open Space Public Education Elementary Shools Middle Schools High School Continuation High School School Enrollment (October 2007) Police Protection Number of Stations Police Personnel (Full Time Equivalent) Fire Protection Number of Stations Fire Personnel (Full Time Equivalent) Community Facilities Dublin Civic Center Dublin Senior Center Shannon Community Center Dublin Swim Center Heritage Center Dublin Library 149 February 1, 1982 Council/Manager 43,630 16,802 217.81 14.01 104 260 75 3972 11 121 126 7 2 1 1 5520 3 40.25 1 59 1 1 1 1 1 1 150 I I Gif ~ 17<< . I I I I I I I I I I I I I I I I I I, I , This page intentionally left blank. I I I I I I I I I I I I I I I I I I I IC&L Caporicci & Larson Certified Public Accountants 1'5 r ) '1oZ. INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF BASIC FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California We have audited the basic financial statements of The City of Dublin (City) as of and for the year ended June 30,2007, and have issued out report thereon dated December 14,2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our audit procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the City's financial statements that is more than inconsequential will not be prevented or detected by the City's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the City's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. However, we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Toll Free Ph: (877) 862-2200 Toll Free Fax: (866) 436-0927 Oakland 180 GrandAve., Suite 1365 Oakland, California 94612 Orange County 9 Corporate Park, Suite 100 Irvine, California 92606 Sacrantento 777 Campus Commons Rd., Suite 200 Sacramento, California 95825 San Diego 4858 Mercury, Suite 106 San Diego, California 92111 152 ((, G 1/7o'L I I I I I I I I I I I I I I I I I I I To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The result of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain matters that we reported to management of the City in a separate letter dated December 14, 2007. This report is intended solely for the information and use of management, the City Council, others within the entity, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. ~~. f L1u~ Oakland, California December 14, 2007 City of Du blin Dublin, California Report to the City Council and Management For the year ended June 30, 2007 IC&L Caporicci & Larson Certified Public Accountants A;+Ow~hm~,,+ 2- IC&L . Caporicci & Larson Certified Public Accountants IMi 1/1.z December 14, 2007 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California In planning and performing our audit of the financial statements of the City of Dublin (City) as of and for the year ended June 30, 2007, in accordance with auditing standards generally accepted in the United States of America, we considered the City's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statement, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control that we consider to be control deficiencies. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. Control deficiencies in internal control identified in the audit are discussed on page 1 of this report. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected by the entity's internal control. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood tllat a material misstatement of the financial statements will not be prevented or detected by the entity's internal control. The City's written response to the deficiencies identified in our audit has not been subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. This communication is intended solely for the information and use of City Council, management, others within the organization, and is not intended to be and should not be used by anyone other than these specified parties. ~U-t":f U:u~ Caporicci & Larson Oakland, California Toll Free Ph: (877) 862-2200 Toll Free Fax: (866) 436-0927 Oakland 180 Grand Ave" Suite 1365 Oakland, California 94612 Orange County 9 Corporate Park, Suite 100 Irvine, California 92606 Sacramento 777 Campus Commons Rd., Suite 200 Sacramento, Ca1ifornia 95825 San Diego 4858 Mercury, Suite 106 San Diego, California 92111 City of Dublin Report to the City Council and Management Table of Contents { {/j ~ H;)... Page Control Deficiencies: Restatement of previously issued financials .. ................................... .............. ............................................. ..... 1 City of Dublin Report to the City Council and Management For the year ended June 30,2007 110 ~ 11).. CONTROL DEFICIENCIES 1. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS Observation The City has restated its previously issued financial statements to correct misstatements relating to capital asset depreciation and classification. The City's internal controls over financial reporting did not identify the misstatements in a timely manner resulting in the restatements. Recommendation We recommend that the City enhance its internal procedures and controls related to financial reporting to reduce the possibility of overlooking a closing entry that would result in inaccurate financial reporting. The City can accomplish this by expanding its year-end closing procedures to ensure that all nonroutine and nonsystematic transactions were accounted for, the appropriate accounting standards were applied, and transactions were accounted for in the proper period. Management Response It is important for readers to have an understanding of key accounting concepts as they relate to the City and the reporting of depreciation. The finding relates to the timing of when depreciation charges were first recorded on two capital projects. Unlike a private entity where depreciation may reflect a business expense for the purpose of reducing income tax liabilities, a government entity does not pay taxes on income. Depreciation recorded does not impact cash positions of the entity. In governmental accounting, depreciation entries are used to disclose the historical cost of capital expenditures over the life of the capital asset. The" depreciation" item is only reported as part of the Goveriunent-Wide Financial Statements and is not included in the Governmental Fund Statements. Staff is aware of the Audit requirements to calculate and report depreciation in accordance with government accounting standards and makes every effort to do so. In preparing the closing entries for the audit period ending June 30, 2007 Staff included the Senior. Center Project for the first time in the depreciation calculations. It appears that inclusion of the asset was overlooked in error when the staff prepared closing entries for the June 30,2006 audit. The project was formally accepted by the City Council August 2,2005 and therefore, depreciation should have been reported for the previous fiscal year. The second project involved the Street Improvement Project for Dublin Boulevard Improvements between Village Parkway and Sierra Court. City accounting records had recorded this project in prior years as "Construction In Progress." The project was complete in May 2004; however, the Contractor disputed amounts owed. A settlement between the City and Contractor was reached in May 2007. Staff included the project in the assets to be depreciated for the year ending June 30, 2007. Since the project was essentially complete in 2004 the depreciation recorded for prior years was understated. Given Staff turnover in the past 18 months, additional training will be provided for those involved with the recording of fixed assets. At the end of the year a detailed listing and report will be prepared and submitted to Finance Department Management and made available during the Audit. The report will specifically identify the status of each Capital Project including the date accepted as complete, or confirmation of the status with the Department coordinating the project. 1 EXCERPTS DUBLIN CITY COUNCIL MINUTES (VOLUME 26) ADJOURNED REGULAR MEETING June 28, 2007 {71 ~ H~ City Manager Ambrose reviewed the Internal Service Fund, proposed appropriations to reserves, and long-term fiscal needs. The Fiscal Year 2006-2007 projected year-end surplus was approximately $8.4 million, and the Fiscal Year 2007-2008 projected General Fund year-end surplus was approximately $2.6 million, for a total of approximately $11 million for the two years. City Manager recommended appropriations of$4.5 million of the projected surplus as follows: Civic Center Expansion set aside Establish Reserve for future City Maintenance Facility IEGC Establish Reserve for Fire Department - Retiree Medical $2,000,000 1,500,000 1,000,000 $4.500.000 There was a remaining $6.5 million ofthe two-year surplus that would need to be designated for use by the City Council. Mayor Lockhart asked Staff the status of the Kolb House in reference to the Heritage Park. Parks and Community Services Director Diane Lowart stated the family was still very interested in donating the Kolb House to the City and was waiting for word from tonight's meeting to see if the City was going to move ahead. Mayor Lockhart asked what Phase II of the Heritage Park would include. Parks and Community Services Director Lowart stated Phase I would include demolishing the shopping center, taking out the existing parking lot and replacing a majority ofthe parking lot and the existing building with turf, irrigation and utilities, and building a new parking lot. Phase II would include the orchard with a pavilion. If the City was looking at relocating the Kolb house to the Heritage Park, Staff would recommend taking another look at the Master Plan to identify the preferred location for the Kolb House. This would add two months to the process, to reopen the Master Plan. The Kolb house could be relocated as part of Phase 1. Cm. Sbranti asked what was the cost of Phase II. City Manager Ambrose stated that the cost of Phase II was $4 million. Cm. Sbranti asked, in reference to the surplus funds designation, what was the anticipated annual cost to the City for the fire retirement item. City Manager stated the City's liability would be quite large. The City Council must decide if the City would pay as they went, or begin pre-funding and save money in the end. Cm. Sbranti asked Staff if the City could pre-fund all or a portion of the City's liability without the County going forward. City Manager Ambrose stated the City would have to discuss that with PERS. City Manager Ambrose asked to review the schedule for the Heritage Park with Council. ATTACHMENT 3 EXCERPTS DUBLIN CITY COUNCIL MINUTES (VOLUME 26) ADJOURNED REGULAR MEETING June 28, 2007 tl) ~ 11) Parks and Community Services Director Lowart stated Staff anticipated a contract would come forward for architectural services in July and begin in August 2007 and construction would start in October of2008. City Manager Ambrose stated that the present tenants of the shopping center would have to vacate the property by the first of the year, except for US Barue The City Council and Staff discussed the ability to purchase and move the Kolb House in Phase I of the project. The family had found a mover and if the moving costs were reasonable, they would also fund the moving costs, with the City taking the house as-is. There had not been an evaluation on the house by the City to find out if the house could withstand the move. Mayor Lockhart asked if there was any member of the public that would like to address the Council. A Dublin citizen spoke and thanked the Council for having made the Dublin Sports Grounds a priority. She also thanked the Council for pushing up Phase I of Fallon Sports Park. She made a bid for artificial turf at Fallon Sports Park. It would allow for year round use and the maintenance would be less. She asked Council to consider artificial turf for the fields. The City Council and Staff discusse:d the possibility of using artificial turf on fields at the Fallon Sports Park. If artificial turf was chosen, the primary use for fields would be for organized sporting events, but the fields should also be accessible to the community, as desired. Staff would need to do further research on maintenance costs for the artificial turf and also look into the cost of having artificial turf on more than just two of the fields at the Sports Park, maybe the lighted fields. Staff would report back to the Council as part of Phase I ofthe Sports Park on its findings. By consensus, the City Council decided to allocate $4.5 million of the $11 million projected two year surplus to the City Manager's recommended appropriations: Civic Center Expansion set aside Establish Reserve for future City Maintenance Facility IEOC Establish Reserve for Fire Department - Retiree Medical $2,000,000 1,500,000 1,000,000 $4.500.000 The City Council discussed possible uses ofthe remaining $6.5 million two-year projected surplus. It was noted that if funds were going to be reserved for particular projects, it would be prudent to include the design of the later phases ofthose projects in the initial design. It was clarified that the reserves would not fund a project entirely, in the short-run, but would be set aside for gradual use for specified projects, in the long- fUll. By consensus, the Council agreed to establish reserves for the following projects, in amounts as follows: Emerald Glen (Indoor Portion) of the Aquatic Center Heritage Park (Phase II) Fallon Sports Park Artificial Turf East Bay Communications Systems $2,500,000 2,500,000 1,000,000 500,000 $6.500.000 ATTACHMENT 3