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8.4 CAFR & Annual Audit
G� DU�lr'G 1982 STAFF REPORT CITY CLERK IF DUBLIN CITY COUNCIL File # ❑©0®-©® DATE: December 21, 2010 TO: Honorable Mayor and City Councilmembers FROM: Joni Pattillo, City Manager SUBJE : Comprehensive Annual Financial Report (CAFR) and Annual Audit For The Fiscal Year Ending June 30, 2010 And Adoption Of Guidelines For Designation Of Reserves Prepared By: Paul S. Rankin, Administrative Services Director, EXECUTIVE SUMMARY: The City of Dublin has compiled and published its Comprehensive Annual Financial Report (CAFR), for the fiscal year ending June 30, 2010. This report includes financial statements prepared by City Staff along with the audit prepared by Caporicci and Larson (C&L), a subsidiary of Marcum, LLP, the independent auditors selected by the City Council. The CAFR is a report which encompasses information beyond minimum financial reporting requirements. The Auditors have provided a "clean opinion" based on their review. The report has also been reviewed by the City Council ad -hoc Audit Subcommittee. The report also includes a discussion of the allocation of General Fund Reserves. FINANCIAL IMPACT: Detailed financial information is summarized in this report as well as the Comprehensive Annual Financial Report (Attachment 1) and a summary of key information (Attachment 2). RECOMMENDATION: It is recommended that the City Council: 1) Receive the reports and confirm the establishment of the fund balances as stated for the year ending June 30, 2010; and 2) Direct Staff to proceed with the development of specific policies related to the designation of reserves in accordance with accounting standards. Submitted By: Administrative Services Director DESCRIPTION: Assistant C nager The City of Dublin has compiled and published its Comprehensive Annual Financial Report (CAFR) for the Fiscal Year ending June 30, 2010. This report, which is included as Attachment Page 1 of 4 ITEM NO. 2-q 1, includes audited financiai statements reviewed by Caporicci and Larson, CPA's (C&L) a subsidiary of Marcum, LLP. This firm is the independent auditor selected by the City Council and the Fiscal Year 2019/2010 Audit was completed under a two year agreement approved by the City Council on February 2, 2010. The report includes financial information o.n revenues and expenditures for the entire Fiscal Year which started July 1, 2009 and ended June 30, 2010. AD-HOC AUDIT COMMITTEE REVIEW The Auditors met with the City Council Ad Hoc Audit Committee (Mayor Sbranti and Councilmember Hildenbrand) on December 14, 2010 to review the results of the audit. The interaction of the Auditors directly with representatives of the elected body is a key component to current audit standards. The Committee members were provided with an opportunity to discuss the report and ask questions of the Auditor. The Committee concurred with recommending the acceptance of the report by the City Council. Overall, based on their testing and review, the Auditors granted the City a"clean opinion" (see Attachment 1, pages 1- 2). In order to receive this level of audit finding there can be no matters of concern involving . the City's internal controls and financial reporting that are considered to be a material weakness. FINANCIAL OVERVIEW The financial section of the CAFR includes an unqualified opinion issued by C&L. Attachment 2 provides a summary of key elements contained in the CAFR. Some of the important Financial results are addressed below: Increase Total Assets - The total assets increased by approximately 1%. Given the economic pressures and the fact that some capital project expenditures were funded from reserves, ariy increase is considered a positive result. Item June 30, 2010 Current and other assets $112,690,271 Capital assets 436,857,107 Total assets 549,547,378 Current Liabilities 16,548,627 Noncurrent Liabilities 933,789 Total Liabilities 17,482,416 Invested in capital assets Restricted Unrestricted (See Note 8 to Financials for Council Designations) Total net assets 436, 857,107 25,004,384 70,203,471 $532,064,962 Governmental Activities June 30, 2009 $ Change % Change $121,031,495 423,474,384 544,505,879 16,822,439 705,172 17,527,611 (45,195) -Ci. y% 3.2°/a 0.9% -1.6% 32.4% -0.3% 423,474,384 13,382,723 3.2% 36,906,687 (11,902,303) -32.2% $526,978,268 $5,086,694 1.0% Total Assets -{t is important to consider that not all elements of the reported Total Assets represent unrestricted assets. The amount reported as Total Assets includes $437 million (82.1 % of total) which represents investments in capital assets (e.g. land, infrastructure, buildings, equipment). These are not assets that are available for future spending. Further, $25.0 million (5% of the total) are assets subject to external restrictions on how they can be 66,597,197 3,606,274 5.4% ($8,341,224) 13,382,723 5,041,499 (273,812) 228,617 Page 2 of 4 used. Included in the Management Discussion and Analysis section of the CAFR is additional detail discussing the Changes in Net Assets (See Attachment 1 pages 3 to 16). AUDIT RECOMMENDATIONS / DISCLOSURES The professional standards adhered to by the Auditors require them to record a formal process of communicating with the City Council. The new standards require that the Auditors communicate directly with those charged with governance. As noted the Auditors met with the Ad-Hoc Committee at the conclusion of the audit to review the final report. The Auditor Report to the City Gouncil is included as Attachment 3. As part of the Audit Review the independent auditors can present recommendations for consideration by the City. These can be items that do not impact the overall "clean opinion". Rather the process allows the Auditors to disclose their observations on certain practices and policies, and allow Management to respond to the input. The Auditors determined that there were no items identified that warranted additional recommendations. ADDITIONAL REPORTS PREPARED BY THE AUDITORS In addition to the Audit of the Financial Statements, the Auditor engagement also included the completion of specialized reports. The supplemental reports include 1) A compliance audit of Alameda County Transportation Measure B Funds; 2) A Review of the Annual Appropriations Limit Calculation; and 3) Single Audit Report related to Federal Grant expenditures. These reports will be presented as a single Consent Item for informational purposes at the January 18, 2011 City Council meeting. . DESIGNATIONS OF FUND BALANCES A complete listing of both fund reserves and designations for all funds is shown on page~ 64 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. The upcoming changes in Accounting Standards (GASB54) will require a change in the format in which fund balance and reserves are presented. On April 20, 2010 Staff presented the City Council with a preliminary discussion of these changes and proposed changes in the Designations used in the City CAFR, particularly as they relate to the General Fund. At the Audit Sub-Committee Meeting on December 14, 2010, a report was presented which outlined in further detail the proposed allocations (See Attachment 4). These are based on input from the City Council in April 2010, as well as the final accounting of balances at year end and recommendations , from City Management. This effort aligns with developing more specificity in the allocation of reserves than was presented in the past. In the past a category of "Authorized Expenditures" was used which did not provide information related to the intent and/or need for the reserves. Beginning on page 2 of Attachment 4"Key Items" are discussed which identify the proposed allocation of General Fund Reserves and changes that have occurred. With efforts to reduce costs and improvements in some key revenues the City has been able to continue to protect against deterioration of its General Fund Assets. In Fiscal Year 2009/2010 the City was able to add $3 million to the major building system replacement fund, which reinforces the longstanding practice'to recognize long term needs and fund them over time. Page 3 of 4 The Ad-Hoc Audit Subcommittee was supportive of the framework developed for designating reserves. Prior to the end of the Fiscal Year Staff will develop more detailed policies for the'~ designation of reserves that will be presented to the City Council prior to the close of the Fiscal Year. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of the report was sent to Ahmed Badawi, Partner Caporicci & Larson ATTACHMENTS: 1. Separate Booklet - City of Dublin Comprehensive Annual Financial Report - Fiscal Year 2009-2010 2. ~ Summary - Key Information Comprehensive Annual Financial Report For the Year Ended June 30, 2010. 3. Auditors Communication with Those Charged with Governance for the year ended June 30, 2010. 4. Audit Ad-Hoc Committee Information Dated December 14, 2010. Page 4 of 4 ' ~ ~~~~ OF DU~~, f~ !tl ~~ 11~ ~ 19 a-i'„ ~ ~ &2 `l~~/11~~ ~`~LIF R~~ Fiscal Year Ended ~une 30, 20~0 of the Dublin Foothilfs I~-~.~-~~ ATTACHMENT 1 ~~~~~~~~~^~~~~ ~~~~~~ F~i~~t1~G~~~ E~~p~IC~ a~b~.zz . 1 O . 1~ 111 Dublin, Calif ornia Comprehensive Annual Financial Report For the year ended june 30, 2010 ~~~ ~~~ 1 City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2010 , Table of Contents , Pa~e 1 INTRODUCTORY SECTION Table of Contents ............................................................................................................................................................ i ~ Letter of Transmittal ..................................................................................................................................................... v Government Finance Officers Association (GFOA) Award ................................................................................... xi Principal Officers ......................................................................................................................................................... xii ~ Organizational Chart ................................................................................................................................................. xiii FINANCIAL SECTION ~ Independent Auditors' Report ...................................................................................................................................1 Management's Discussion and Analysis ................................................................................................................. 3 ~ Basic Financial Statements: 1 Government-Wide Financial Statements: Statement of Net Assets .................................................................................................................................17 Statement of Activities and Changes in Net Assets .................................................................................. 22 , Fund Financial Statements: Governmental Fund Financial Statements: ~ Balance Sheet ............................................................................................................................................ 26 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets ....................................................................... 29 1 Statement of Revenues, Expenditures and Changes in Fund Balances ........................................... 30 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 ..................................................................... 32 ~ Proprietary Fund Financial Statements: Statement of Net Assets .......................................................................................................................... 33 ~ Statement of Revenues, Expenses and Changes in Net Assets ......................................................... 34 Statement of Cash Flows ......................................................................................................................... 35 , Fiduciary Fund Financial Statements: Statement of Fiduciary Net Assets ........................................................................................................ 36 , Index to Notes to Basic Financial Statements ................................................................................................... 37 Notes to Basic Financial Statements ................................................................................................................... 39 , , 1 ~ ~ ~~ ~ ~ City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2010 Table of Contents, Continued FINANCIAL SECTION, Continued Required Supplementary Information: Pa~e Budgets and Budgetary Accounting ............................................................................................................ 78 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: General Fund ............................................................................................................................................ 79 Affordable Housing Special Revenue Fund ......................................................................................... 80 Parks Capital Project Fund ..................................................................................................................... 81 Streets Capital Project Fund ................................................................................................................... 82 Schedule of Funding in Progress: Miscellaneous Plan of the California Public Employee Retirement System .................................... 83 Other Post Employment Benefit (OPEB) .............................................................................................. 83 Supplementary Information: General Fund: Schedule of Budget Versus Actual Revenues by Sources ................................................................ Schedule of Budget Versus Actual Departmental Expenditures .................................................... ....... 88 ~ ....... 90 Major Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: General Improvements Capital Projects Fund ..................................................................................... 91 Community Improvements Capital Projects Fund ............................................................................. 92 Public Facilities Impact Fees Capital Projects Fund ............................................................................ 93 Fire Impact Fees Capital Projects Fund .............:...........................................................................:...... 94 Traffic Impact Fees Capital Projects Fund ............................................................................................ 95 Non-Major Governmental Funds: ~ Combining Balance Sheet ............................................................................................................................100 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ...........................106 n ~ ' ,.- City of Dublin ~ ~ ~ ~~ ~ Comprehensive Annual Financial Report For the year ended June 30, 2010 , Table of Contents, Continued Pa~e ~ FINANCIAL SECTION, Continued Supplementary Information, Continued ' Non-Major Governmental Funds, Continued: Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Special Criminal Activity Special Revenue Fund .............................................................................. 111 ~ Vehicle Abatement Special Revenue Fund ........................................................................................ 112 Supplemental Law Enforcement Special Revenue Fund ................................................................. 113 Local Law Enforcement Block Special Revenue Fund ...................................................................... 114 Traffic Safety Special Revenue Fund ................................................................................................... 115 ~ Federal Asset Seizure Fund Special Revenue Fund .......................................................................... 116 EMS Special Revenue Fund .................................................................................................................. 117 Enforcement Grants Special Revenue Fund ....................................................................................... 118 1 State Gas Tax Special Revenue Fund .................................................................................................. 119 T.E.A. Special Revenue Fund ................................................................................................................ 120 Measure B Sales Tax Transportation Special Revenue Fund ........................................................... 121 i Measure B Sales Tax Bike and Pedestrian Special Revenue Fund .................................................. 122 Congestion Management Agency Fund Special Revenue Fund ..................................................... 123 Traffic Congestion Relief Special Revenue Fund .............................................................................. 124 , Measure D Recycling Special Revenue Fund ..................................................................................... 125 Garbage Service Special Revenue Fund .............................................................................................. 126 Local Recycling Program Special Revenue Fund .............................................................................. 127 ~ American Recovery & Reinvestment Special Revenue Fund .......................................................... 128 Storm Water Management Fund Special Revenue Fund ....................:............................................ 129 Box Culvert Special Revenue Fund ..................................................................................................... 130 ~ Dublin/Dougherty Special Revenue Fund ........................................................................................ 131 Village Parkway Special Revenue Fund ............................................................................................. 132 Eastbay Regional Park District Special Revenue Fund .................................................................... 133 ~ Public Arts Fund Special Revenue Fund ............................................................................................ 134 Noise Mitigation Fund Special Revenue Fund .................................................................................. 135 CDBG Special Revenue Fund ............................................................................................................... 136 ~ Street Lighting Special Revenue Fund ................................................................................................ 137 Stagecoach Landscape Special Revenue Fund ................................................................................... 138 Dougherty Landscape and Lighting Special Revenue Fund ........................................................... 139 Santa Rita Assessment District 97-1 Special Revenue Fund ............................................................ 140 1 East Dublin Street Lighting Assessment Special Revenue Fund .................................................... 141 ~ Internal Service Funds: Combining Statement of Net Assets ..........................................................................................................144 Combining Statement of Revenues, Expenses and Changes in Net Assets .........................................146 Combining Statement of Cash Flows ......................................................................................................1148 ~ Agency Fund: Statement of Changes in Net Assets ..........................................................................................................152 ~ iii ~ Z~~- ' ~ City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2010 Table of Contents, Continued P~ i STATISTICAL SECTION General Governmental Activities Tax Revenues by Source and Governmental Activities Tax Revenues by Source ........................................................................................ 154 Net Assets by Component ........................................................................................................................................ 156 Changes in Net Assets .............................................................................................................................................. 158 Fund Balances of Governmental Funds ................................................................................................................. 160 Changes in Fund Balances of Governmental Funds ............................................................................................ 162 Assessed Value and Estimated Actual Value of Taxable Property .................................................................... 164 Direct and Overlapping Property Tax Rates ......................................................................................................... 165 Principal Property Taxpayers .................................................................................................................................. 166 Property Tax Levies and Collections ...................................................................................................................... 167 Direct and Overlapping Dept .................................................................................................................................. 168 Legal Debt Margin Information .............................................................................................................................. 170 Demographic and Economic Statistics ................................................................................................................... 172 Property Value, Construction and Bank Deposits ................................................................................................ 173 Principal Employers .................................................................................................................................................. 174 Full-time Equivalent City and Contact Government Employees by Function ................................................. 175 Operating Indicators by Function ........................................................................................................................... 176 Capital Assets Statistics by Function ...................................................................................................................... 177 Top 25 Sales Tax Producers ...................................................................................................................................... 178 Miscellaneous Statistical Data ................................................................................................................................. 179 iv ~~~~z ~ CITY OF DUBLIN 100 Civic Plaza Dublin, Californza 94568 Website: www.dublin.ca.gov December 13, 2010 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, 2010. The information in this Comprehensive Annual Financial Report is prepared in accordance with Generally Accepted Aceounting Principles (GAAP) as established by the Governmental Accounting Standards Board (GASB). ~ The responsibility for the accuracy and fairness of this report rests with the City. Management Staff are responsible for preparing a complete report which is based upon reliable information. Caporicci and Larson, Inc. a Subsidiary of Marcum, LLP, a firm of licensed public accountants, has issued an unqualified ~ ("clean") opinion on the City of Dublin's financial statements for the year ended June 30, 2010. The independent auditor's report has been included in this Comprehensive Annual Financial Report. In addition to the financial audit, based on federal funds expended in Fiscal Year 2009/2010, the City 1 underwent a"Single AudiY' mandated by the federal government. The broader scope of this audit is designed to meet the needs of federal grantor agencies. This includes review of whether the financial information is fairly presented as well as internal controls and compliance with the legal requirements of the ~ federal awards. The report is issued and available upon request as a separate document and is not included herein. ~ This letter of transmittal is designed to assist with an individual's review of the City's financial statements. Specifically it is intended to offer the reader useful information in assessing the economic conditions impacting the City of Dublin. It also complements a separate narrative section called ManagemenYs Discussion and Analysis (MD&A) which provides financial highlights of the City and additional analysis of ~ trends reported as part of the financial statements. The MD&A is located immediately following the report of the independent auditors. , 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 81.5 full time equivalent City employees and serves an estimated population of 48,821, with estimated population growth to 60,000 covering a land area of 14.62 square miles. The City's strategic location offers I opportunities for employers, retail outlets, and 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, who serves a two-year term and four Council members each eiected to a four-year term. The City Council is responsible for the City's ordinances, operating resolutions, adoption of the annual budget, hiring the City Manager and City Attorney ~ Area Code (925) City Manager 833-6650 City Counci1833-6650 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 $~ ~ ~~- and confirming the appointments made by the Mayor to commissions and committees. 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 (Human Resources); City Attorney; City Clerk; Police; Fire; Animal Control; Crossing Guards; Community Development (Building/Planning/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 119 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. Over the past several years residential builders and developers have constructed a variety of new housing opportunities, which includes a mix of transit oriented development adjacent to a Bay Area Rapid Transit (BART) station as well as single family homes and condominium / townhome developments. The relatively close proximity to additional job centers and colleges and universities in the Bay Area create an attractive environment. The City has a large retail base which serves local residents as well as those in surrounding communities. The largest employers include: government and public agencies such as the United States Government - Department of Justice, County of Alameda, and the Dublin Unified School District; corporate and technical production offices such as the headquarters of Sybase, an SAP Company, Fluor Enterprises Mining & Metals Division, Micro Dental Laboratories, and Zeiss Meditec; retailers such as Best Buy, Toys R US, Lowes, and Target; and auto dealers with new car dealers in the City representing the following manufacturers: Chevrolet, Nissan, Honda, Toyota, Volkswagen, Chrysler, Dodge, Jeep, Buick, GMC, Cadillac, Kia, and Hyundai. Retail Sales are an obvious indicator of the general economic climate. The General Fund Sales Tax in Fiscal Year 2009/2010 increased by 1.5% over the amount attributable to the prior year. This increase was primarily due to new retail sales outlets, including the addition of Kia and Hyundai auto dealers. Also a regional sales office for Graybar, a distributor of electrical, communications and data networking products, was opened in the City. The City has a significant proportion of sales tax generated from automobile sales which have deteriorated dramatically nationwide. The City also experienced retail vacancies for the entire year from sites previously occupied by national retailers including: Mervyns, Circuit City, and Expo Design (Home Depot). The City is proactive in monitoring retail sales activity and impacts on the general operating budget. Over the past several years, the City has experienced property tax related growth, although the percentage increase has been declining. In Fiscal Year 2009/2010 the City experienced a 4.4% decrease in Property Tax Revenue. The difference accounted for over $1 million in reduced revenue. The factors contributing to this situation included a slow down in both residential and non-residential development, and downward adjustments made by the Alameda County Assessor to the property valuations, which are used to compute property taxes. The decreased availability of mortgages and general recessionary trends has also resulted in a reduction of ownership changes. This results in reduced supplemental property tax collected on new values for properties that have assessed vaiues below the current market value. Under current law when these properties are sold they can be reassessed. Despite the overall economy developers continued to complete new units (248 final residential units added in Fiscal Year 2009/2010 compared to 235 in the previous fiscal year). In addition developers continued to ~~ ~~ ~ ~ ~~ ~ ~ obtain permits for the construction of new residential units resulting in permits for 300 new residential units issued during the current year compared to 135 the previous year. Some of this activity was related to the availability of approved projects and Federal tax incentives for new home purchases. I The City Council does not control property tax rates. These rates are an outgrowth of the 1978 voter approved Proposition 13. Although the City has experienced significant growth in Assessed Valuation of properties, in recent years, the current slowdown in sales, decreasing home prices, and increase in ~ foreclosure activity are expected to stifle property tax growth. In addition, the formula for adjusting property tax values will be negative in Fiscal Year 2010/2011 for the first time since the passage of Proposition 13. ~ The amount of growth in Property Tax Revenue, in the current economic cycle, has deteriorated rather abruptly. Due to declines in property values and reassessments, the Fiscal Year 2010-2011 Budget was prepared based on a continued negative adjustment to the total Assessed Valuation. One economic forecast, prepared by Beacon Economics, suggests that East Bay home sales and prices will remain weak i well into 2011 and may not begin to grow until 2012. Unemployment trends nationwide have been increasing and in general the consumer has remained ~ cautious about discretionary purchases, which has an impact on large retail purchases. It is not expected that Dublin will be immune from these impacts. The most recent unemployment data for the East Bay region was over 11 %. Beacon Economics has forecast that job growth will be much slower than past post- ~ recessionary periods. The only City specific data available on Unemployment is published by the State of California Employment Development Department for calendar year 2009. The 2009 results indicate a City of Dublin rate had increased to 6.5% compared to the rate of 3.7% one year earlier. The 2009 City of Dublin rate remained below the Alameda County average of 10.7%. ~ The stability of the City's funding and expenditures is also significantly impacted by State of California budget impacts and retirement system trends. The State of California has, for the last several years, been late in adopting an annual budget, thus impacting the City's ability to budget with assurance certain ~ revenues used for operations. In a statewide election on November 7, 2010 the voters approved Proposition 22 which provides local governments protections from the State borrowing local funds to resolve 1 the State Budget issues. Although this protects local revenue sources it does not make cities immune from the impacts of the State facing a deficit projected by the Legislative Analyst Office as being over $25 billion. The City will need to remain guarded in its spending and on-going increases. ~ The California Public Employees Retirement System (CaIPERS) has notified participating agencies of anticipated rate increases beginning in Fiscal Year 2011-2012 as a result of market losses incurred with the retirement portfolio. The timing of CaIPERS actuarial reports used to set rates result in a lag in the , relationship to asset losses and when rates adjust. Retirement benefits and funding are a topic of discussion throughout the State as the costs begin to consume larger portions of funds available. The City Manager has engaged City Staff in discussions regarding options and opportunities to address the 1 increased costs. Changes in the benefit program would require City Counci~ approval. In addition, the two largest contract service providers to the City (Alameda County Sheriffs Department and Alameda County Fire Department) successfully negotiated long term reductions to the growth in their employee benefit costs, which are paid by the City as part of the cost of service. j The future economic outlook for the City is expected to show slower growth in terms of new construction and retail sales. This environment requires the City to carefully plan for an alignment of General Fund ~ expenditures with General Fund revenues. The City Council supported a realignment of services over the past finro years to protect the City from expenditures that were increasing at rates in excess of revenue - growth. The City has also been engaged in efforts to facilitate occupancy of vacant retail sites. The constraints in the marketplace have meant that timelines for landowners to secure tenants have increased. ~ However, given the City's location adjacent to two freeways and the continued development of residential housing in the area, growth will continue in the long term. ' The City has locations which provide opportunities for expansion in both the retail and office land uses. The City Council has also supported the development of long-term plans such as the Downtown Dublin Specific Plan, which is nearing conclusion. Within the next year, the City is also expected to be served by access to ~ vii 1~~ ~~~ a second Bay Area Rapid Transit (BART) station now under construction in the City's downtown core. Commercial development is underway throughout the City, including an expanded Nissan dealership and showroom and grading has begun on the Fallon Gateway Center. Phase 1 of the center is approximately 311,000 square feet of retail shops which will include the City's second Target store that is scheduled for a late 2011 opening. The City has also begun to see decreases in office vacancies with new users occupying space at the Dublin Corporate Center and other projects. FINANCIAL PLANNING AND POLICIES The City Council adopts a 10 Year Strategic Plan which is updated every two years. The strategies, as well as more specific annual Goals and Objectives, establish the framework and overarching policy focus for the delivery of public services to the community. The Budget document has a section containing the Strategic Plan and Goals and Objectives. Quarterly updates are also provided to the City Council on the Goals and Objectives. The City of Dubfin operates with balanced budgets each year, and as provided for in City policies, the City Manager presents a recommended budget and Financial Plan to the City Council annually. The City Council adopts a final budget in advance of the July 1S' start of the new Fiscaf Year. In terms of major capital investments, the City operates utilizing a pay-as-you-go philosophy and has no outstanding City debt. The financial policies currently used for budgeting also provide for the use of Internal Service funds to assure resources are available to finance the replacement of public safety vehicles and apparatus, computer systems, and some building components. The importance of being prepared to address long term needs has always been a key principle supported by the City Council. In Fiscal Year 2009/2010 the City Council increased the balance for long-term building replacements by $3 million. The City has also proactively financed contributions to fund long-term retiree medical liabilities. The City of Dublin has benefited in recent years from General Fund revenues in excess of reserves. The City Council policy has been to assess the use of such additions to the General Fund reserves only after the finalization of the prior year figures in the Comprehensive Annual Financial Report (CAFR). The amount is also evaluated net of accounting related entries such as any unrealized adjustment for the market value of investments. The actions have been taken in public with a deliberate focus on using these funds for one- time, not on-going, operating expenses. The City Council has also begun making adjustments to this process in order to align the actions in coming years with the new requirements of GASB 54, which will be implemented with the financial statements for the period ending June 30, 2011. While the City is still experiencing some growth, the City also faces the pressures to deliver public facilities such as parks and other amenities. In Fiscal Year 2008-2009, the City Council proceeded with the construction of Phase 1 of the Fallon Sports Park. Although a grant offset a small portion of the overall cost, the majority of the project was funded from development fees. The City proceeded with the project and a loan was made from the General Fund to account for a timing difference in when the development fees will be collected. Originally it was expected that as much as $4 million would need to be advanced. The amount of the loan was $1.38 million due to cost savings in the project contingency and collection of fees from residential projects at a faster pace than originally estimated. The City's Parks and Facilities Master Plan identifies what is required to serve the City at final build-out. Therefore, care must be used to phase the new projects which impose additional operating costs, to insure that growth in revenue is also sufficient to support on-going operations. The City has proceeded with caution in terms of financial commitments given the rapid deterioration in major revenue and the apparent slow economic recovery. For this reason new discretionary capital projects in Fiscal Year 20Q9/2010 were extremely limited. In the Fiscal Year 2009-2010 Budget, the City Council approved a reorganization plan that included staffing cuts and the reassignment of personnel where needed to fill critical vacancies. The adopted staffing reflected a reduction of approximately 14.5 full time equivalent positions (9.5 City positions and ~~~~ 11~ ~~z ~ approximately 5 coritract positions). The Budget also addressed anticipated funding ~ reductions using a variety of approaches including: operating expenditure reductions; elimination of the Fiscal Year 2009-2010 cost of living and performance pay adjustments for City Staff; reduced frequencies for some maintenance activities; and the postponement of capital projects. Although the Budget in Fiscal Year 2009-2010 ' anticipated the requirement of approximately $1.1 mil~ion from the Economic Stability Reserve, revenues were adequate to eliminate the need to use reserves. , As the Fiscal Year 2010/2011 Budget was developed the City exercised continued financial discipline in proactively reviewing opportunities to adjust spending. These reductions in expenditures have a more noticeable impact to the users of City Services. The City has chosen to take a measured approach and ~ ease into service reductions rather than being forced to make drastic across the board cuts. The reduction included a reduction of one deputy sheriff position and a reduction in Library service hours. In addition other operational reductions were made to effectively manage resources and service delivery. ~' It is recognized that these are unique times and as a result there are changes from what has occurred in the past. However, the future steps will be based on guiding principles from our past which include striving to provide services on a"pay as you go basis." ~ 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, 2009. A copy of the award from this entity is included in this report. This award represents the 20th 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. ACKNOWLEDGEMENTS 1 The preparation of this report would not have been possible without contributions from City Staff in several departments. The value placed by City Staff in assuring that the City finances are professionally administered is appreciated. , ~ The City is fortunate to have dedicated staff members who devote 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 Ahmed Badawi and his team of auditors from Caporicci & Larson. ~ The City Council is acknowledged and thanked for its guidance and support of comprehensive financial reporting. 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, . -~ ~ Joni Pattillo ' City Manager ~ .(;~~ .~ Paul S. Rankin Administrative Services Director ~X ~~~~~~ ~ This page intentionally left blank. ~~ ~~ a~z~ Certificate of Achievement for Excellence in Financial Reporting Presented to City of Dub~~n ~a~ifornia Far its Comprehensive Aunual Financial Report for fhe Fiscal Yeat• Ended June 30, 2009 A Certificate of Achievement for Excellence in Financiat Repai~ting is preseiited by the Govermttent F'v~ance Officers Association of tl~e Uni#ed States and Canada to gover~vnent unifs and pt~blic eniployee retire~nent systems ~vhose comprehensive annua( fi~~ancial reports (CArRs} achieve the Izighest stand~rds in government accou~iting and financial reporting. _- ~ ~ .. Presiden# - '~' ' ~~+~~ Executive Director xi ~ ~~ ~ ~~ CI'Y'I'~C OF DUBLIN PRINCIPAL O~FICERS Fiscal Year 2009/2010 Mayor Tim Sbranti Vice Mayor Kasie Hildenbrand Councilmember Kevin Hart ADMINISTRATION PEIZSONNEL City Manager Assistant City Manager Administrative Services Director City Attorney City Clerk Chief of Police Public Work Director Community Development Director Park & Community Services Director Fire Marshal Deputy Fire Marshal Councilmember Don Biddle Councilmember Kate Ann Scholz joni Pattillo Chris Foss Paul Rankin John Bakker Caroline Soto Casey Nice Melissa Morton Jeri Ram Diane Lowart Bonnie Terra Darrell Jones xi~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r~ Le end Elected CITY OF DUBLIN ORGANIZATIONAL ~~~ ~:`~' Appointed Cit Staff RESIDENTS OF DUBLIN ' ~ Ctty~Council4 ~~ 'k ~ ~i5 ~. ,u,,z f q . ~ T`e ~~3`~ ~ ~~'~rt~.e,Y ~ ~rt~~°~-s ~~2 r ~''^"Q f~&~" R~Y Y~'~~ ~1"~ ~,~ ~ .n' v+w Y~;r ~. ~~.~ ~ ~~ ,~ ~ ~~ ~~ ~ ~~ ~ ~ ~ ~~ ~ ~~: City Manager ~ ~~ ~ ~~~~~,. ~ ~~° ~~~~;~ ~ ~~~ ~Herit~ge~~&~ ~~~ ~~~~'~Parks~&~~ ~~~~ ~~~~~~~~~ ~ ~ ,~~~ ~ ~ ~ ~ ~~~~ ~~ ~~ f ~ ~ ~ ~~ ~ ~ ~~°~~ ~ ~~ ~g~ ~ plann~ng ~ ~~~~'~~ City ~~~C,ulta~ral~Arts ~~ ~~~ Cornmun~ty,~ ~ ~ t ~ ~~~ ~~ ~ ~~ ~~v ~ ~ ~ ~ ~ ~ ~ ~~~~ ~ ~ ~~ ~Comen~ssion~ ~ Attorney Gornrr~~ss~or~~ ~~~ ~~~~~Serurces~~~ ~~~~ City Clerk ~'~f ~~~ ~`' ~~~~~~ ~ ~~°~ ~,~F ~, ~u .v v a~+~ ~~ ~ ~a ~ `~'"n`~~~ §~" ' ,~~n,` ~,~ '~ ~ ~"~;i~~ '~'i°°~ ' q~` ~ , ~~..~~~a`~".w~~~~~..~`~~~~~~ ~~Commisseon~ ~~ ~~~ ~` ~~_ ~~ ~k~`~~ ~~~! ~.~, ~ , Elections ^ Economic Development Environmental Pro rams Assistant City Manager Central Services / Human Resources Insurance Disaster Preparedness Waste Management Community Cable TV Police Services Community Parks ~ Administrative Public Works Fire Development Community Services Services Services Building Management Police Building & Safery Recreation Finance Traffic Signals Fire Animal Control Planning Library Services Information Street Lighting Prevention Crossing Guards Housing Cultural Activities Systems/ Street Maintenance Fire Heritage Center Technology Street Sweeping Operations Dublin Cemetery Street Tree Maintenance Parks & Facilities Mgt Street Landscaping Maint Child Care Park Maintenance En ineerin ~ CHART ~ ~~ N N ~ xiii This page intentionally left blank. s~`' ~ ~~ ~ ~ xiv ~ T ~~L ~ Gaporicci & Larson, Inc. A Subsictiary ofMarcum LLP Certifiecl Public Accountants 1 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 the 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, 2010, 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 opinions on these 1 financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted iri the I United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements aze free of material misstatement. An audit includes 1 consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accardingly, ~ we express no such opinion. An audit also includes examining, on a test basis, evidence - supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and the significant estimates made by management, as well as evaluating the ~ overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. 1 In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2010, and the respective I changes in financial position, and cash flows where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. ~ In accordance with Government Auditing Standards, we have also issued our report dated December 13, 2010, 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 ~ grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. 1 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. ~~ www c-lcpa.com , ~~ z~~ t To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 The Management Discussion and Analysis and the Required Supplementary Information ori pages 3 to 16 and pages 77 to 83, respectively, are not a required part of the basic financial statements, but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of ineasurement 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 introductory section, combining fund statements and schedules and the statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining fund statements and schedules has been subjected to the auditing procedures applied by us 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 information identified . in the table of contents as the Introductory and Statistical Sections has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and, accordingly, we express no opinion on them. ~~~- ~ ~'~,~5*v' ~c. ~ r Caporicci & Larson, Inc. San Francisco, California ~ ~ 2 G~~~OF Dp8~2 CITY OF DUBLIN ~~~ ~~~ /A ~ U\ '\\~w'w~~~ Management's Discussion and Analysis (MDA) June 30, 2010 ~'~i~v ~D 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, 2010. 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. • 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. • Notes to the Financial Statements - The notes provide additional detail that is essential to a 1 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. 1 GOVERNMENT-WIDE FINANCIAL STATEMENTS - DESCRIPTION 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. j These statements report the City's net assets and changes to the net assets. 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, 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. ~ G~~~ OF ~O~~y /~~~~\' 19, ~1=1 _~p) `82 `~~ ~~. ~ ~'~z~~oR~~~ CITY OF DUBLIN Management's Discussion and Analysis (MI.~A) June 30, 2010 GOVERfVMENT-WIDE FIfVANCIAL STATEMENTS - ANALYSIS ~~ ~~~ t ~ As shown in Table 1, during Fiscal Year 2009-2010, the City's net assets, representing the difference between total assets and total liabilities, increased by $5.1 million (1.0%) to $532 million from $527 million, presented for Fiscal Year 2008-2009. The primary factor which contributed to the increase was an increase in amounts invested in capital assets. The completion of major projects including the Fallon Road I-580 Interchange and Phase 1 of Fallon Sports Park were two major projects. Table 1 below summarizes the year to year change in the net assets reported for the City of Dublin. ' TABLE 1: SUMMARY OF NET ASSETS June 30, 2010 and 2009 Governmental Activities Item June 30, 2010 June 30, 2009 $ Change % Change Current and other assets $112,690,271 $121,031,495 ($8,341,224) -6.9% Capital assets 436,857,107 423,474,384 13,382,723 3.2% Total assets 549,547,378 544,505,879 5,041,499 0.9% Current Liabilities 16,548,627 16,822,439 (273,812) -1.6% Noncurrent Liabilities 933,789 705,172 228,617 32.4% Total Liabilities 17,482,416 17,527,611 (45,195) -0.3% Invested in capital assets 436,857,107 423,474,384 13,382,723 3.2% Restricted 25,004,384 36,906,687 (11,902,303) -32.2% Unrestricted (See Note 8 to Financials for 70,203,471 66,597,197 3,606,274 5.4% Council Designations) Total net assets $532,064,962 $526,978,268 $5,086,694 1.0% The current assets decreased by approximately $8.3 million compared to the balance reported in the previous year. This decrease was offset by $13.3 million in capital assets and reflects the use of cash reserves during the year to construct capital assets. The cash used for these projects includes Traffic Impact Fees and Public Facility Fees which can only be used for specified improvements and cannot be used for general operations. The City's total liabilities of $17.5 million represents primarily obligations outstanding for current operations (such as accounts payable), capital projects (such as retention payable), deposits held for development projects, and compensated absences. The relatively small decrease in the current liabilities is primarily due to the difference in scope and timing of accounts payable, which was offset by a decrease in deposits held for developer project processing and contract retention held at the end of the fiscal year. The increase in noncurrent liabilities is related to recording an increased liability for the City share of the Dougherty Regional Fire Authority retiree medical obligation and establishment of a liability for a sales tax sharing program implemented as a means to stimulate new local businesses. A significant portion of the City's net assets ($437 million or 82.1%} 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. $25.8 million or 4.8% of the assets as of June 30, 2010 represent resources that are subject to external restrictions on how they may be used. These restrictions may be imposed by outside agencies, state regulations, or legal restrictions which would limit the discretionary use of these assets. ~ 0 z~~ Z~ ~ G~~,~ OF DpB~~ CITY OF DUBLIN /// ~ \1\ 1`~~w~w~~ Management's Discussion and Analysis (MDA) June 30, 2010 c~~L~o ~~ ' Unrestricted net assets ($69.4 million or 13.1 %) may be used to meet the City's ongoing obligations to ~ citizens and creditors. However, as discussed in the notes to the financial statements, much of the unrestricted net assets include the unreserved portion of General Fund balance which has either been designated for future equipment replacement, or has been designated by the City Council for use on several ~ future projects and to cover economic uncertainties. The unrestricted net assets show an increase of $2.8 million (4.3%) compared to the amount reported as of one year earlier. Governmental Activities: Table 2 provides a summary of major expenditure program categories, program ~ revenues used to fund specific expenditure programs, and general City revenues available for funding all City programs. Total revenues from all sources were $72.7 million and total expenditures for all City programs were $67.6 million. For Fiscal Year 2009-2010, the City had no long term debt outstanding at 1 June 30, 2010. The format of Table 2 provides additional detail showing factors that impacted the Net Asset figures presented earlier in Table 1. TABLE 2: SUMMARY OF CHANGES IN NET ASSETS ~ For the Years Ended June 30, 2010 and 2009 Fiscal Year Ending June 30th 1 2010 2009 $ Change % Change Revenues Proqram Revenues 1 Charges For Services $ 10,926,835 $ 11,850,629 $ (923,794) (7.8%) Operating Contributions & Grants 2,229,043 2,245,945 (16,902) (0.8°/o) Capital Grants & Contributions 19,901,314 14,599,068 5,302,246 36.3% ~ Sub-Total Program Revenues 33,057,192 28,695,642 4,361,550 152% General Revenues PropertyTaxes 22,287,783 23,311,587 (1,023,804) (4.4%) Sales Tax 12,183,267 12,001,338 181,929 1.5% ~ Motor vehicle in lieu, unrestricted 141,221 160,242 (19,021) (11.9%) OtherTaxes 3,201,219 3,011,925 189,294 6.3°/a Investment income, unrestricted 758,016 4,266,601 (3,508,585) (82.2%) ~ Othergeneralrevenues 1,106,163 461,137 645,026 139.9% Sub-Total General Revenues 39,677,669 43,212,830 (3,535,161) (8.2%) ~ Total Revenues $ 72,734,861 $ 71,908,472 $ 826,389 1.7°/a Expense5: Governmental activities: , General government $ 8,396,199 $ 8,721,545 $ (325,346) (3.7%) Public safety 23,797,696 23,880,635 (82,939) (0.3%) Highways and streets 15,969,371 20,368,655 (4,399,284) (21.6°/a) Health and welfare 3,615,077 1,869,428 1,745,649 93.4% t Culture and leisure services 10,757,355 11,563,136 (805,781) (7.0%) Community development 5,112,469 7,175,272 (2,062,803) (28.7°10) Sub-Total governmental activities 67,648,167 73,578,671 (5,930,504) (8.1%) ~ Increase In Net Assets $ 5,086,694 $ (1,670,199) Net Assets - Beginning of Year 526,978,268 528,648,467 ~ Net Assets - End of Year $ 532,064,962 $ 526,978,268 $ 5,086,694 1.0°/a ~ 5 G~~~ OF ~U~~~ ~ rn ~ ~~~C'~~/// ~'~~ir~o~~'~D CITY OF I~UBLIN Management's Discussion and Analysis (MDA) June 30, 2010 ~~~ i ~~~ The $5.1 million increase in net assets this fiscal year is largely attributable to an overall decrease in charges for services, a reduction in capital grant expenditures, and a decrease in general revenues including property taxes and interest. All of these impacts on revenues were offset by an even larger reduction in expenditures. A discussion of key Revenue and Expenditure factors is presented below. Revenues Overall, total revenues increased by $826,000 or 1.1 °/a, for the period ending June 30, 2010 compared to the previous Fiscal Year. The following are the major factors which contributed to these results: ~ Charges for Services decreased by approximately $0.9 million. This primarily reflects the slowdown in development activity and fewer development applications under review. • Capital Contributions and Grants increased by $5.3 million. Year to year fluctuations are common since many of the larger grant and capital contributions relate directly to the construction schedules for capital projects. Major projects such as the Fallon Interchange, Interstate 580 Auxiliary Lanes, and Phase 1 Fallon Sports Park were in the final completion stages in the current year. • Property Taxes decreased by approximately $1.0 million based upon decreased assessed valuations and as new construction being added to the tax roll also declined. o Sales Tax revenue increased by approximately $182,000, as a result of new retail outlets operating in the City. • Other Taxes also increased by approximately $189,000. This increase primarily reflects a small increase in real estate transfers and increases in utility franchise tax revenue. o Investment income decreased by approximately $3.5 million. The decrease reflects lower rates of interest earned as well as decreases in the cash balances held. The results also take into account an unrealized adjustment to reflect the market value of investments as of June 30, 2010. In the current Fiscal Year a negative adjustment of approximately $800,000 was recorded as an unrealized investment loss, whereas the previous year revenue included an unrealized investment gain of approximately $1.7 million. Expenses Overall, total expenses decreased by approximately 8.1 % as compared to Fiscal Year 2008 - 2009. The total expenses reported as of June 30, 2010 were $67.6 million. Table 3 summarizes the differences in expenses in order to observe the fluctuation between components. TABLE 3: ANALYSIS OF MAJOR COMPONENTS CONTRIBUTING TO CHANGE IfV EXPENSES (Fiscal Year 2009-2010 Compared To Fiscal Year 2008-2009) Governmental Year Ending Fund Program June 30 Expenses 2010 60,138,422 2009 50,041,794 Difference 2010 vs. 2009 10,096,628 Internal Capital Asset Depreciation Other TOTAL Service Funds Additions EXPENSES (1,988,976) 3,207,631 6,220,160 70,930 67,648,167 963,919 8,136,840 14,325,258 110,860 73,578,671 (2,952,895) (4,929,209) (8,105,098) (39,930) (5,930,504) , z~ ~~~a. 1 G`~.~ OF DpB~y CITY OF DUBLIN ~ ~ \\~~~~~ Management's Discussion and Analysis (MDA) June 30, 2010 ~ I ~~`'~°~~`° • Governmental Fund program expenses increased by $10 million. The increase is related to a one- ~ time contribution from the General Fund of $3 million to increase reserves available for replacement of major building systems. The increase is also due to the recording of $7.6 million of street and traffic signal improvements that were dedicated to the City by developers during Fiscal Year 2009- ~ 2010. • Internal Service Funds net change in expenses decreased by $2.95 millions and is associated with the one-time contribution of $3 million from the General Fund as discussed in the above. ~ • Capital Asset additions decreased by $4.9 million when compared to the previous year. The decrease reflects the reduced overall capital project activity. Due to the fact that completion of ~ capital projects and the acquisition of assets do not follow consistent patterns it is typical to have fluctuations. 1 • Depreciation expenses included as part of the financial statements decreased primarily due to the following two factors: 1) Some assets were fully depreciated and no longer subject to depreciation, and 2) Implementation of a new integrated software program which requires monthly depreciation calculations, which resulted in a change in timing of when the depreciation was posted. When the ~ fund governmental statements are presented they do not present general fund capital assets. A reconciliation Statement of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Assets is included as part of the CAFR Report. , The charts which follow display both the Revenue and Expenses by program in a pie chart format. This highlights the proportionate elements of the Fiscal Year 2009-2010 Revenues and Expenses. ~ As shown in the Revenue Chart more than two-thirds of the total revenue is related to the top three sources: 1) Property taxes which comprise 32.8%; 2) Capital grants which comprise 29.3%; and 3) Sales tax which ~ comprises 17.9%. Revenues By Source (In Millions) Total Revenue $72.7 Millions ' Other Taxes - -2.1 % $3.3 Sales Tax Op Contrib / Grants 3.3 % $2.2 Investment {ncome - l.l % $0.8 Other Revenues - 1. $1.1 Prope $223 r Services - $10.9 Capital /Grants - 29.3% $19.9 ~ ~~z~~- l G`~~ OF DD~~y ~ 19'~I~`82 ~~ ~ ~~ ~'~~~~c~~~D CITY OF DUBLIN Management's Discussion and Analysis (MI7A) June 30, 2010 In terms of expenses, the largest program expense is Public Safety representing 35.18%, followed by Highways and Streets accounted for 23.61 %. Cuiture and Leisure accounted for 15.90% of the expenditures. Expenses in both Highways and Streets and Culture & Leisure included capital projects. EXPENSES BY PROGRAM (In Millions) Total Expenses - $67.6 Millions Community Development 7.56% $S.l General Govemment - Culture and Leis 15.90% $10. Healtl~ and Welfare - 534% $3.6 Public Safety - 35.18 % $23.8 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 governmenYs 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 governmenYs 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. Highways and Sveets - 23.61 % $ I 6.0 ~~~~~~ 1 G~~`t~F~~B~~ CITY OF DUBLIN ,,, ~ ,,, '\\~w'w~~~ Management's Discussion and Analysis (MDA) June 30, 2010 ~~~i~ ~~~ ~ The City maintains forty (40) 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 following nine funds: General Fund; Affordable Housing Fund; four Capital Project Funds (General Improvement Projects; Community Improvement Projects; Parks Projects; Streets ~ Projects); and three Impact Fee Funds (Public Facilities Impact Fees, Fire Impact Fees, and Traffic Impact Fees). 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 thirty-one (31) Governmental funds are combined into a single aggregated presentation, labeled as Non-Major Governmental Funds. Individual 1 fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. ~ The City adopts an annual appropriated budget for each of its Governmental funds. A budgetary comparison statement has been provided for each Governmental fund to demonstrate compliance with this budget. ' Proprietary funds The City maintains one type of Proprietary fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions and to build up reserves for future replacement of capital assets. These funds are also used to coflect funds for I 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 Fublic Employees Retirement System side fund obligation. Charges are made to departments based on payroll to fully recover advanced retirement , payment over time. The City uses six 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 six internal service funds are combined into a single, 1 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 three Agency Funds. The Dublin Boulevard Extension Agency Fund is an improvement district with outstanding bonds. The City's role is that of a trustee, or fiduciary, in collecting assessments and remitting bond payments. 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 City also provided a similar role for two Geologic Hazard Abatement Districts (GHAD). California Public , Resources Code section 25670 establishes that these Districts are a political subdivision of the State and not an agency or instrumentality of a local agency. The City contractually provides support to collect funds in a fiduciary capacity and may also arrange for activities funded by the Districts. ~ 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. ~~ OF p~j~ G~ ~9 19'V-'_~`82 ~~ ~~l ~~LIFOR~~~ CITY O~' DU~LIN Management's Discussion and Analysis (MDA) June 30, 2010 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS ~~ ~~~ t As of June 30, 2010, the City's governmental funds reported combined ending fund balances of $82.8 million, a decrease of $12 million from the prior year. The City General Fund had a decrease of $1.1 million; Capital Funds decreased by $10.7 million; Affordable Housing Fund decreased by approximately $65,000 and Non-Major Funds decreased by approximately $85,000. The following sections provide a more detailed financial analysis by fund type. GENERALFUND The General Fund is the chief operating fund of the City. At the end of Fiscal Year 2009-2010, unreserved fund balance of the General Fund was $55.1 million and total fund balance of the General Fund was $61.0 million. As discussed in Note 8 to the financial statements, the entire amount of unreserved fund balance has been designated by the City Council for use on several future projects, carryover funding for projects not completed in the previous year, and to cover economic uncertainties. During Fiscal Year 2009-2010, the General Fund expenditures exceeded its revenues by $2.3 million. However, a total of $3.4 million was transferred out of the General Fund, primarily as a contribution to fund projects accounted for in a Capital Projects Fund. In previous years General Fund capital expenditures were not reported in a separate Capital Projects Fund. Although the City Council had approved the use of $1.1 million in reserves from the Economic Stability designation to balance operating expenditures, this was not required. The total expense in the General Fund during Fiscal Year 2009-2010 was $1.1 million more than the previous year (adjusting the 2008-2009 expenses without Capital Projects). AFFORDABLE HOUSING FUND The Affordable Housing Fund is a special revenue fund which accounts for funds associated with the Affordable Housing programs. The fund balance totaled $12,838,676 at June 30, 2010 compared to $12,903,285 a year earlier. The minimal change reflects the slow-down in development activiry. Expenses were also partially offset by the repayment of loans made by this fund to facilitate the private development of housing opportunities at the Fairway Ranch Project as well as repayment of a First - Time Home Loan. The City has made significant commitments to the Arroyo Vista Redevelopment project, which is a private - public partnership to replace affordable housing units, which will impact the fund balance once the project is underway. CAPITAL PROJECT FUNDS As previously described the City has included seven specific capital funds in the information presented as part of the governmental funds. Four of the funds are used to capture expenditures related to active capital projects that are under way. The four funds are: General Projects; Community Projects; Parks Projects; and Streets Projects. The funding for the expenditures made in these funds is the result of transfers in from other funds. The only fund with a balance as of June 30, 2010 is the Street Projects which has a balance of $9,314. The following Capital Impact Fee Funds are also reported: • Public Facilities Fee Fund - This fund includes fees collected to develop parks and other public facilities. Total revenue collected in Fiscal Year 2009-2010 was $1.7 million more than the amount collected in the prior year. This increase was the result of developers processing Final Maps which result in the collection of park land dedication fees. The funds were used along with existing balances to offset the construction cost of Fallon Sports Park. A total of $8 million was 10 ~ .- ~"~t~ ?~~ 1 G~~~ OF DU~~y CITY OF DUBLIN '~- ,,, ~ ,,, '\`~w'w~~ Management's Discussion and Analysis (MDA) June 30, 2010 c~,~L~~ tir ~ transferred out of this fund to complete capital project construction. Due to variations in project construction and acquisition timelines expenditure patterns will fluctuate from year to year. The ~ negative balance of $1.4 million at the end of the year will be offset-by borrowing from the General Fund until such time as the amount can be repaid with interest from additional fees collected. ' • Fire Impact Fees - This fund includes fees collected from new development to pay for the capital cost associated with the provision of Fire Services. Total revenue collected in Fiscal Year 2009- 2010 was only $74,540 which was $15;574 more than the amount collected in the prior year. In 1 Fiscal Year 2009-2010 more development occurred on properties which did not hold credits from prior contributions. Therefore they were required to pay cash at the time of receiving a building permit. 7he expenses associated with these funds represent the repayment of a long term ~ advance made from the City General Fund. Payments include interest. In Fiscal Year 2009- 2010 the amount owed to the General Fund decreased by $32,450 after accounting for interest on the outstanding balance. The total balance owed to the General Fund as of June 30, 2010 is ~ $1,808,886. • Traffic Impact Fee Fund - This fund includes fees collected to construct major traffic improvements necessary to facilitate development. Fees are levied and collected on , development in proportion to its impact on the transportation needs. Total revenue collected in Fiscal Year 2009-2010 was only $1.7 million, which was approximately $193,000 more than collected in the prior year. The City expended approximately $495,282 in payments to reduce , outstanding obligations. In addition approximately $6,848,129 was transferred to capital project construction funds du~ing the year. 7his resulted in a$5.6 miNion reduction in the ending fund balance for Traffic Impact Fees. Because these funds are collected for construction or improvements the entire $6.3 million fund balance is reserved for designated capital projects. ~ NON-MAJOR FUNDS ~ The City's non-major funds are presented in the basic financial statements in the aggregate. At June 30, 2010, these funds had a total fund balance of $5,893,509. Based on the designated use of the funds they ~ can be arranged by function as shown in Table 4 below: TABLE 4: ANALYSIS OF FUND BALANCES - NON MAJOR GOVERNMENTAL FUNDS ARRANGED BY FUNCTIO N ~ (Fiscal Year 2009-2010 Compared To Fiscal Year 2008-2009) Function 2010 2009 $ Change % Change , Public Safety $329,457 $381,646 ($52,189) -13.7% Transportation 2,859,719 3,618,508 (758,789) -21.0% ' Environmental 1,463,965 861,076 602,889 70.0% Parks, Culture, Arts 375,002 375,779 (777) -0.2% Health & Welfare 61,662 58,762 2,900 4.9% ' Maintenance Districts 803,704 683,206 120,498 17.6% TOTAL FUND BALANCE JUNE 30th $5,893,509 1 $5,978,977 ($85,468) -1.4°/a 11 G~~~ OF ~UB~-y ~9~ (~_-' -_~' `82 `~~ ~`~~% ~4GIFOR~~~ CI'I'Y OF I~UBLIN ~~~ i ~~ Management's Discussion and Analysis (MDA) June 30, 2010 The full amount has been reserved under the programs indicated in the Table above. Although in the aggregate there was very little change changes did occur between the functions. The changes in Public Safety reflect the use of Emergency Medical Service fund and Traffic Safety fund reserves for current year operations. The Transportation function shows a decrease as a result of the use of State Gas Tax and Measure B Streets reserves for current capital projects. The Environmental function had an increase due to the reporting of special Storm Water Funds as part of this function. The increase in Maintenance District balances is largely due to districts in the eastern portion of the City. More information about these aggregated non-major funds can be found in the combining statements following the required supplementary information. GENERAL FUND BUDGETARY HIGHLIGHTS A summary of the budgetary comparison schedule for the General Fund is shown in Table 5 below. The complete schedule as required is included in the supplementary information following the notes to the financial statements. TABLE 5: SUMMARY OF GENERAL FUND ORIGINAL AND FINAL BUDGET AND ACTUAL (For the Period Ending June 30, 2010) Budget Amounts Actual Variance with Original Final Amounts Final Budget - REVENUE: Taxes $ 35,191,850 $ 35,045,850 $ 37,525,490 $ 2,479,640 Licenses and permits 1,625,211 1,639,160 2,260,365 621,205 Fines and forfeitures 140,000 140,000 144,593 4,593 Use of Money & Property 1,558,707 1,588,707 1,139,114 (449,593) Intergovernmental 957,870 1,152,200 520,719 (631,481) Charges for service 4,742,524 4,645,615 5,327,968 682,353 Other revenue 757,481 791,481 1,647,866 856,385 Total Revenue 44,973,643 45,003,013 48,566,115 3,563,102 EXPENDITURES: General government 5,879,412 6,315,552 8,872,290 2,556,738 Public safety 24,742,786 24,223,634 22,998,116 (1,225,518) Highways and streets 1,877,783 1,932,837 1,791,083 (141,754) Health and welfare 57,925 84,180 71,680 (12,500) Culture and leisure 7,634,334 7,729,118 7,266,829 (462,289) Community development 4,875,843 5,446,310 5,276,271 (170,039) Total expenditures 45,068,083 45,731,631 46,276,269 544,638 OTHER FINANCING SOURCES (USES): Transfer in - - 28,648 28,648 Transfer out (4,748,943) (6,192,757) (3,429,024) 2,763,733 Total other financing sources (uses) (4,748,943) (6,192,757) (3,400,376) 2,792,381 NET CHANGE IN FUND BALANCE (4,843,383) (6,921,375) (1,110,530) 5,810,845 12 , 1 G`~~ OF DpB~y CITY OF DUBLIN ~~g ~~~~ ,,, ~ ,,, '`~~~'w~~ Management's Discussion and Analysis (MDA) June 30, 2010 c~~L~~ ~,.~ ~ Over the course of the year, revisions were made to the City budget with adjustments that generally fall into ' one of the following four categories: • Changes made to adjust appropriations for operating carryovers from the prior year. 1 • 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. 1 In the General Fund total actual revenues exceeded the final budget by $2.3 million for the Fiscal Year ending June 30, 2010. However, during the year the City also had net transfers to other funds of $3.4 ~ million. Of this amount approximately $3 million represented General Fund contributions to Capital Projects and approximately $400,000 was a transfer of Storm Water funds to a new designated fund. Overall, Revenue was approximately $3.5 million or 7.9% more than the final Budget and Expenditures were , approximately $545,000 or 1.2% less than the final Budget. The City Council authorized a contribution of $3 million to the Building Internal Service Fund Reserves. Because this was a contribution to an Internal Service Fund, it has been included as an expense in the General Fund. ~ General Fund Taxes consist of primarily Property Taxes ($22.1 million in Fiscal Year 2009-2010) and Sales Taxes ($12.2 million in Fiscal Year 2009-2010). The final amount collected in property taxes was $673,253 more than the budget which had anticipated more drastic reductions in assessed valuation. The final result ' was 3% more property taxes than budgeted. The final amount collected in sales tax was $1,531,168 more than the budget, which had anticipated additional declines in automobile sales and new retail outlets contributed more than the amount assumed as part of the Budget. Although the final collections for these , revenues exceeded the final budget, the combination of Sales Tax and Property Tax was still $841,489 less than the actual revenue in the previous year. The combination of these revenues are projected to decline in the coming year as property values decrease and the City adjusts to the sluggish rate of growth in retail sales. . ~ Licenses and permit revenue had a positive variance from the final budget. This reflected primarily Building permits that were anticipated to occur in the following fiscal year being obtained late in Fiscal Year 2009- 1 2010. It is important to note that permit fees can be paid in one fiscal year with the inspection expenses incurred across multiple years, so this will also potentially have an impact on Fiscal Year 2010-2011, which wifl be monitored as the year progresses. , Use of money and property had a negative budget variance at year end. This was attributable to lower interest rates as well as the adjustment made to reflect the market value of investments. The lease of City facilities actually contributed positively to this revenue source. At mid-year, a budget adjustment was made ' to increase the revenue from facility rentals. The positive budgetary variance in Charges for Services primarily reflects development processing fees and ~ charges. The projection in the budget estimate was more pessimistic than the final services performed. In some cases, development projects proceeded with entitlement services that were expected to be delayed ~ longer based on the economy. , General Fund Expenditures overall were very close to the Budget and all of the operating programs, except for the General Government showed actual savings. The General Government Program includes the administrative operating departments as well as a Non-Departmental activity. All of the operating 1 departments had budgetary savings and the negative variance was solely in the Non-Departmental activity. This accounted for the City Council authorizing $3 million to be contributed from the General Fund to the Internal Service Fund for major building components. ' 13 G`~,l OF Dp~~y /~~~~ 19~ (d= ~ =7~),82 `~~ ~~~ ~ ~'~~,~a~~ CITY OF DUBY,IN Management's Discussion and Analysis (MDA) June 30, 2010 ~p ~~,~ 1 ~ Factors which contributed to the overall savings in expenditures were savings in contract service costs, vacancies in staff positions, a delay in the timing of completion of capital projects reducing the maintenance costs incurred, and a reduction in contract services required as development applications and inspection activities. The overall results among all programs also reflect the continued effort by City Staff to aggressively manage spending given the realiry of the economic recession. DEBT AND CAPITAL ASSET ADMINISTRATION Debt For Fiscal Year 2009-2010, the City had no long term debt. 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 $314.7 million. As noted previously the only debt which is administered is described in the Fiduciary fund section. The City has no legal obligation for the repayment of this debt and merely ensures that the assets received are used for their intended purposes. The City has intentionally strived to finance facilities and equipment needs without using borrowed funds and incurring additional costs. Capital Assets The City's investment in capital assets for its governmental activities as of June 30, 2010, amount to $436.9 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 $13.4 million (3.2°/a). TABLE 6: SUMMARY OF INVESTMENT IM CAPITAL ASSETS (For the Period Ending June 30, 2010) Governmental Activities June 30, 2010 Land Streets right of way Construction in Progress Infrastructure Buildings and Improvements Machinery and Equipment Sub-Total $162, 556,224 35,425,288 22,234,992 352,902,022 68,612,214 6,890,941 648,621,681 June 30, 2009 $ CHANGE $162, 556,224 35,425,288 8,001,873 345,149,139 68,517,699 6,613,085 $0 0 14,233,119 7,752,883 94, 515 277.856 626, 263, 308 2Z,358,373 Less Accumulated Depreciation (211,764,575) (202,788,924) (8,975,651) Total Net of Depreciatiou~ $436,857,106 $423,474,384 $13,382,722 % CHANGE 0.0% 0.0% 177.9% 2.2% 0.1 % 4.2% 3.6% 4.4% 3.2% 14 G`~~ OF DpB~y ~~~~~\ 19' C~1= ~ =i1~7 `82 `~~ ~~.~% ~'4LlFOt2N~~ CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2010 ~,~~~Z~.~ The City had an active Capital Improvement Program with significant progress made on a variety of community assets as well as interstate highway improvements which provided improved access. Selected major capital activities undertaken during the current fiscal year included the projects listed below: Ca ital Pro'ect Status of Pro'ect 2009-2010 Ex enditures Cit Offices Ener Efficient Window Treatment Com leted $ 94,515 Americans With Disabilities Act- Pedestrian Im rovements Com leted $ 91,566 Fallon S orts Park Construction Com leted $9,100,921 Interstate 580 / Fallon Rd Interchan e Com leted $3,350,501 Interstate 580 Westbound Auxilia Lane Im rovement Com leted $1,726,153 Dublin S orts Grounds Renovation In Pro ress $ 175,656 Historic Park Develo ment In Pro ress $1,199,192 New Inte rated Finance / Permit / Licensin S stem In Pro ress $ 217,720 Street Rehabilitation and Overla In Pro ress $1,215,305 Dublin Bou-evard Bart Corridor Im rovements In Progress $2,802,223 ' In addition, approximately $7.6 million of street and traffic signal improvements were dedicated to the City by developers during Fiscal Year 2009-2010. Additional information on the City's capital assets can be found in Note 5 of this report. ~ ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS , The economic conditions observed as the Fiscal Year 2010-2011 Budget was prepared suggested continued deterioration or minimal increases in core General Fund revenues for the City. The budget estimated General Fund revenue to be approximately 6.8% ~ess than the projection of Fiscal Year 2009- 1 2010. The City expects in the coming year, a reduction in property tax revenue and a relatively small increase in sales tax ($284,630). Although any increase in sales tax is positive the projections for Fiscal Year 2010-2011 remain below the $14 million collected just three years ago. ~ To address these conditions the structure of the Fiscal Year 2010 - 2011 budget incorporated service reductions which in some cases, are quite visible to the constituents served by the City. Reductions impacted several areas including Public Safety, a reduction in Library Hours, and changes in the programs , and services coordinated by the Parks and Community Services Department. There was also a postponement of new capital projects which did not have an identified funding source. The City's use of contract service providers to supplement City Staff has been beneficial especially the City can adjust the ' amount of contract service hours as the workload decreases or increases. Expenditures planned in Fiscal Year 2010-2011 Budget are approximately $22.6 million less than the ' adopted Fiscal Year 2009-2010 Budget. Although the dramatic change is impacted largely by major capital projects which are nearing or now complete there is also a component that is related to the Operating Budget (approximately $2.8 million in operating expenditures). ~ ' 15 G~~.l OF Dp~~y ~~~~,~\ 19' (~]_ ~ =7I~) \82 `~~ ~~.~% ~~LlFOR~~~ CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2010 ~ ~ ~'~~ ~ ~ City staff is preparing a multi-year forecast to be used as part of the decision-making tools available for future budgets. The City Manager has also implemented changes in the format of the Budget presented to the City Council. The goal is to identify core services which align to the City Council adopted Strategic Plan. The City has been proactive in sharing with the community public information related to the financial condition of local government. In 2009, the City commissioned a survey which showed support for the services and programs offered by the City. The survey also found that, when the ramifications of using reserves to prevent cuts to services was explained, residents were significantly less willing to support the use of reserves for on-going operations. This emphasizes the need for the City to define and prioritize core services that can be funded from current revenue. It is important to acknowledge that the City does not control many of the conditions that will have a financial impact. This includes the down-turn in the economy, the real estate lending crisis and the State Budget. As the City prepared for Fiscal Year 2010-2011, the State had not resolved a major budget deficit. The State Budget remains a significant challenge as deficits continue to be projected. A copy of the adopted Budget and Financial Plan for Fiscal Year 2009-2010 is available online at www.dublin.ca.gov. 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 governmenYs 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.dublin.ca.gov. 16 ~ - ~ ~ ~~.~. ~ ~ BASIC FINANCIAL STATEMENTS ~ ~~ ~~~~ ~ z ~~ t ~~ 1 This page intentionally left blank. 18 3~~ GOVERNMENT= ~~ DE FINANCIAL STATEMENTS 19 zZ~ ~ ~~~ ~ This page intentionally left blank. 20 3~~ ~~~ City of Dublin Statement of Net Assets June 30, 2010 Primary Government Governmental Current assets: Cash and investments Restricted cash and investments Prepaids Accounts receivable Accrued interest receivable Total current assets Noncurrent assets: Net OPEB asset - City (Note 12 A) Notes receivable Long-term receivable Capital assets (non-depreciable): Land Streets right of way ConstrucHon in progress Capital assets (depreciable): Infrastructure Buildings and improvements Machinery and equipment Less accumulated depreciaHon Total capital assets Total noncurrentassets Total assets ASSETS LIABILITIES Current ]iabiliHes: Accounts payable Accrued wages & other payroll liabilities Deposit payable Contract retenHon payable Liability and insurance claims payable Uneamed revenue Compensated absences - Due within 1 year Total current liabilities Noncurrent liabilities: OPEB obligaHons - Dublin Regional Fire Authority (Note 12.B) Other Payables Compensated absences Total noncurrent liabilities Total liabilities Invested in capital assets Restricted for: Public safety Impact fee projects Highways and streets Health and welfare Total restricted Unrestricted Total net assets NET ASSETS See accompanying Notes to Basic Financial Statements. $ 99,594,436 146,200 71,834 6,673,507 342,523 106,528,500 21 764,343 3,847,428 1,250,000 162,556,225 35,425,288 22,234,992 352,902,022 68,612,214 6,890,942 (211,764,576) 436,857,107 442,718,878 549,547,378 $ 13,211,679 443,745 349,511 461,383 271,916 1,569,700 240,693 16,548,627 211,265 160,905 561,619 933,789 17,452,416 436,857,107 329,457 6,637,887 4,386,498 13,650,542 25,004,384 70,203,471 $ 532,064,962 ~J ~ (~ ~~r~9 City of Dublin ~J Statement of Activities and Changes in Net Assets For the year ended June 30, 2010 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Governmental activities: General government $ 8,396,199 $ 219,386 $ - $ 86,023 Public safety 23,797,696 1,600,890 629,630 - Highways and streets 15,969,371 431,498 1,251,866 14,221,774 Health and welfare 3,615,077 2,798,092 318,963 565,248 Culiure and leisure 10,757,355 2,101,867 28,584 4,110,710 Community development 5,112,469 3,775,102 - 917,559 Total governmental activities 67,648,167 10,926,835 2,229,043 19,901,314 General revenues: Taxes: Property taxes Sales tax Vehicle license taxes Other taxes Total taxes Intergovernmental (unrestricted) Miscellaneous Unrestricted investment earnings Total general revenues Change in net assets Net assets: Beginning of year End of year See accompanying Notes to Basic Financial Statements. 22 ~J~ (~ ~-.~.~ lJ Net (Expenses)/ Revenue and Changesin Total Program Govenunental Revenues Activities $ 305,409 $ (8,090,790) 2,230,520 (21,567,176) 15,905,138 (64,233) 3,682,303 67,226 6,241,161 (4,516,194) 4,692,661 (419,808) 33,057,192 (34,590,975) 22,287,783 12,183,267 141,221 3,201,219 37,813,490 192,239 913,924 758,016 39,677,669 5,086,694 526,978,268 $ 532,064,962 23 ~ ~~~ ~~' 1 This page intentionally left blank. 24 1 ~~ a~~ 0 1 FUND FINANCIAL STATEMENTS ~ The City reports the following major governmental funds: , The General Fund - is the overnment's rimar o eratin fund. It accounts for all financial resources of the g P Y P g ' City, except those required to be accounted for in another fund. The Affordable Housing Special Revenue 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 citywide affordable ' housing projects. The General Improvements Capital Projects Fund - is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets, Parks, or Community Improvements projects. The Community Improvements Capital Projects Fund - is used to manage the programming of funds and ' activities associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would promote or enhance redevelopment, revitalization, beautification of the City's community and are not General Improvements, ~ Streets or Parks related projects. The Parks Capital Projects Fund - is used to manage the programming of funds and activities associated ' with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's parks and facilities. ~ The Streets Capital Projects Fund - is used. to manage the programming of funds and activities associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and ' utilizes those resources to suppart projects that would construct, improve, or enhance the City's highways, streets, roads, bridges, lighting, or the storm drain systems. ~ 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 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 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. 25 ~z~ ~ ~~ City of Dublin Balance Sheet Governmental Funds June 30, 2010 Special Revenue Capital Project Funds Affordable General Community General Housing Improvement Improvement Parks Fund Fund Projects Projects Projects ASSETS Cash and inveshnents $ 59,954,496 $ 12,807,462 $ 44,863 $ 6,219 $ 226,911 Restricted cash and investments - - - - - Prepaids 34,159 - - - - Accounts receivable 3,720,607 64,877 ll9 - - Accrued interest receivable 342,523 - - - - Notes Receivable - 3,847,428 - - - Long-term receivables - - - - - Due from other funds 2,155,321 - - - - Advances to ISF PERS Side Fund 2,642,846 - - - - Advances to other funds 3,185,440 - - - - Total assets $ 72,035,392 $ 16,719,767 $ 44,982 $ 6,219 $ 226,911 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 9,470,095 $ 21,855 $ 44,982 $ 6,219 $ 221,099 Accrued wages and other payroll liabilities 443,745 - - - - Deposits payable 336,940 11,808 - - - Contract retention payable 19,263 - - - 5,812 Other payables 160,905 - - - - Liabilities insurance claims payable 271,916 - - - - Deferred Revenue 319,700 3,847,428 - - - Due to other funds - - - - - Advances from other funds - - - - - Totalliabilities 11,022,564 3,881,091 44,982 6,219 226,911 Fund Balances: - Reserved 5,922,446 12,838,676 - - - Unreserved, designated reported in: General fund 55,090,382 - - - - Unreserved, undesignated, reported in: Capital projects funds - - - - - Total fund balances 61,012,828 12,838,676 - - - TotalliabiliHes and fund balances $ 72,035,392 $ 16,719,767 $ 44,982 $ 6,219 $ 226,911 See accompanying Notes to Basic Financial Statements. 26 ~3~a~.~.. Capital Project Pubic Fire Traffic Non-Major Streets Facilities Impact Impact Governmental Projects Impact Fees Fees Fees Funds Total $ 2,996,269 $ 16,511 $ - $ 6,518,352 $ 5,640,697 $ 88,211,780 - - - 146,200 146,200 - - - - - 34,159 - - - 126,005 2,467,332 6,378,940 - - - - - 342,523 - - - - - 3,847,428 - - - 1,250,000 - 1,250,000 - - - - - 2,155,321 - - - - - 2,642,846 - - - - - 3,185,440 $ 2,996,269 $ 16,511 $ - $ 8,040,557 $ 8,108,029 $ 108,194,637 $ 2,550,647 $ - $ - $ 526,909 342,375 $ 13,184,181 - - - - 443,745 - - - 763 349,511 436,308 - - - - 461,383 - - - - 160,905 - - - - - 271,916 - - - 1,250,000 - 5,417,128 - - - - 1,872,145 1,872,145 - 1,376,554 1,808,886 - - 3,185,440 2,986,955 1,376,554 1,808,886 1,777,672 2,214,520 25,346,354 9,314 - - 6,262,885 5,893,509 30,926,530 - - - - 55,090,382 - (1,360,043) (1,808,886) - - (3,168,929) 9,314 (1,360,043) (1,808,886) 6,262,885 5,893,509 82,848,283 $ 2,996,269 $ 16,511 $ - $ 8,040,557 $ 8,108,029 $ 108,194,637 27 y~~~a~ This page intentionally left blank. 28 ~ ' ' ' ~ ~ ~ ~ ' 45~ ~ z~ City of Dublin Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets June 30, 2010 Fund Balances of Governmental Funds ~ 82.848.283 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the Governmental Funds Balance Sheet. Non depreciable assets (Land and construction in progress) 209,212,326 Depreciable buildings, property, equipment and infrastructure, net 171,946,925 Total capital assets 381,159,251 Compensated absences payable, are not due and payable in the current period and therefore are not reported in the governmental fund financial statements. (802,312) OPEB obligations are not due and payable in th current period and therfore are not reported in the govermm~tal fund financial statements. (211,265) 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. '~.R47.4~R 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. 65,223,577 Net Assets of Governmental Activities $ 532,064,962 See accompanying Notes to Basic Financial Statements. 29 ~~~~~~ City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balances Governmental F'unds For the year ended June 30, 2010 Special Revenue Capital Project Funds Affordable General Community Housing Improvement Improvement Parks General Fund Projects Projects Projects REVENUES: Property taxes $ 22,141,003 $ - $ - $ - $ - Sales tax 12,183,268 - - - - Other taxes 3,201,220 - - - - Intergovernmental 520,719 - - - - Licenses and permits 2,260,364 - - - - Charges for service 5,327,968 22,416 - - - Interest 759,469 312,348 - - - Use of property 379,645 1,111,768 - - - Fines and forfeitures 144,593 - - - - Developerfees - - - _ _ Other revenue 1,647,866 - - - - Special assessments - - - _ _ Total revenues 48,566,115 1,446,532 - - - EXPENDITURES: Current: General government 8,872,289 85,455 - - - Public safety 22,998,116 - - - - Highways and streets 1,791,084 - - - - Health and welfare 71,680 1,432,282 - - - Culture and leisure 7,266,830 - - - - Community development 5,276,269 - - - - Capital outlay: General improvements - 742,754 - - Community improvements - - 82,333 - Parks - - - 10,706,350 Streets - - - - Total expenditures 46,276,268 1,517,737 742,754 82,333 10,706,350 REVENUES OVER (UNDER) EXPENDITURES 2,289,847 (71,205) (742,754) (82,333) (10,706,350) OTHER FINANCING SOURCES (USES): Transfer in 28,648 6,596 742,754 82,333 10,706,350 Transfer out (3,429,025) - Total other financing sources (uses) (3,400,37'~ 6,596 742,754 82,333 10,706,350 NET CHANGE IN FUND BALANCES (1,110,530) (64,609) - - - FUND BALANCES: Beginning of year 62,123,358 12,903,285 - - - End of year $ 61,012,828 $ 12,838,676 $ - $ - $ - See accompanying Notes to Basic Financial Statements. 30 ~ 1 1 ~ ' ~ i ' ' ~ r 1 Capital Project Public Fire Traffic Non-Major Streets Facilities Impact Impact Governmental Projects Fees Fees Fees Funds Total $ - $ - $ - $ - $ 145,206 $ 22,286,209 - - - - 398,611 12,581,879 - - - - - 3,201,220 - - - - 7,430,518 7,951,237 - - - - - 2,260,364 - - - - 1,750,019 7,100,403 - 15,012 - 205,878 182,601 1,475,308 - - -. - - 1,491,413 - - - - 168,185 312,778 - 2,837,617 74,540 1,473,723 1,459 4,387,339 - 2,882 - 34,660 93,069 1,778,477 - - - - 868,348 868,348 - 2,855,511 74,540 1,714,261 11,038,016 65,694,975 - - - - - 8,957,744 - - 42,090 - 1,200,954 24,241,160 - - - 495,282 698,945 2,985,311 - - - - 2,149,335 3,653,297 - - - - 975 7,267,805 - - - - 23,942 5,300,211 - - - - - 742,754 - - - - - 82,333 - - - - - 10,706,350 13,762,167 - - - - 13,762,167 13,762,167 - 42,090 495,282 4,074,151 77,699,132 (13,762,167) 2,555,511 32,450 1,218,979 6,963,865 (12,004,15'~ 13,771,481 - - - 439,248 25,777,410 (8,011,675) - (6,848,129) (7,488,581) (25,777,410) 13,771,481 (8,011,675) - (6,848,129) (7,049,333) - 9,314 (5,156,164) 32,450 (5,629,150) (85,468) (12,004,15'~ - 3,796,121 (1,841,336) 11,892,035 5,978,977 94,852,440 $ 9,314 $ (1,360,043) $ (1,808,886) $ 6,262,885 $ 5,893,509 $ 82,848,283 31 ~~~2zz ~--~ ~ (~ ~.~~.- l.,J Cify of Dublin IZeconciliation 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, 2010 Net Change in Fund Balance - Total Governmental Funds $ (12,004,157) Amounts reported for governmental activities in the Statement of Activities differs from the amounts reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances because: Governmental funds report acquisition of capital assets as expenditures in various functions and in capital outlay. However, in the Govemment-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 $272,400 14,536,792 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 of $7,646,871. 7,646,871 In the Statement of Activities, the gain (loss) on the sale or disposal of capital assets is reported and allocated to the various program revenues and expenses, whereas in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balances by the cost of the asset sold. (97,691) 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 $2,755,492. (6,220,160) Changes in long term compensated absences in governmental activities are not reported in governmental funds. (10,730) 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 (60,200) 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. (693,007) 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. 1,988,976 Change in Net Assets of Governmental ActiviHes $ 5,086,694 See accompanying Notes to Basic Financial Statements. 32 1 ~ ~ City of Dublin Statement of Net Assets Proprietary Funds June 30, 2010 ~z~ u9~ ' Govemmental Activities Internal Service , Funds ASSETS ~ Current assets: Cash and investments $ 11,382,656 Prepaid items 37,675 , Accounts receivable 294,567 Total current assets 11,714,898 , Non Current assets: OPEB 764,343 Capital Assets: ' Land 10,774,792 Construction in progress 229,387 Buildings and improvements 62,081,624 ' Machinery and equipment 6,088,322 Less: accumulated depreciation (23,476,269) Total capital assets 56,462,199 ' Total assets 68,177,097 I LIABILITIES Current liabilities: Accounts payable 27,498 ' Due to other fund 283,176 Total current liabilities 310,674 Noncurrent assets: ~ Advance from other funds 2,642,846 Total noncurrent liabilities 2,642,846 1 Totalliabilities 2,953,520 NET ASSETS ~ Invested in capital assets 55,697,856 Unrestricted 9,525,721 1 Total net assets $ 65,223,577 1 See accompanying Notes to Basic Financial Statements. ~ 33 City of Dublin 5~ `~ ~ ~ ~ Statement of Revenues, Expenses, and Changes in Net Assets Proprietary Funds For the year ended June 30, 2010 OPERATING REVENUES: Charges for services Otherrevenue Total operating revenues OPERATING EXPENSES: Supplies and services OPEB expenses Depreciation Total operating expenses OPERATING INCOME/(LOSS) NONOPERATING REVENUES: Interest income Contribubion from General Fund Total nonoperating revenues NONOPERATING EXPENSES: Other Total nonoperating expenses NON OPERATING INCOMF,/(LOSS) Contribution of capital assets (Non cash/Non capital lease contribution) Change in net assets NET ASSETS: Beginning of year End of year See accompanying Notes to Basic Financial Statements. Governmental Activities Internal Service Funds $ 2,113,756 327,234 2,440,990 284,997 615,000 2,755,491 3,655,488 (1,214,498) 191,489 3,000,000 3,191,489 74,038 74,038 3,ll7,451 86,023 1,988,976 63,234,601 $ 65,223,577 34 ~ ~ ' ~ ~ ~ , ' ~ ' ~ i ~ ' ~ ' 1 ~ ' City of Dublin Statement of Cash Flows Proprietary Funds For the year ended June 30, 2010 ~~,~ Z~Z~ CASH FLOWS FROM OPERATING ACTIVITIES: Receipt from other funds Payments to suppliers Other Net cash provided by operating acrivities CASH FLOWS FROM NON CAPITAL AND RELATED FINANCING ACTIVITIES: Payments from other funds Net cash provided by capital and related financing acrivities CASH FLOWS FItOM CAPITAL AND RELATED FINANCING ACTNITIES: Acquisition of capital assets Net cash used by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Interestreceived Net cash provided by investing activities Net increase in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of year End of year RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Adjushnents 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 by operating acrivities NONCASH CAPITAL AND RELATED FINANCING TRANSACTIONS: Contribution of capital assets Total noncash capital and related financing transactions See accompanying Notes to Basic Financial Statements. 35 Governmental Activities Internal Service Funds $ 2,400,695 (1,172,472) 32,667 1,260,893 2,697,350 2,697,350 (260,416) (260,416) 191,49~ 191,490 3,889,317 7,443,334 $ 11,382,656 $ (1,214,497) 2,755,491 3,765 (37,011) 12,364 (259,219) $ 1,260,893 $ 86,023 $ 86,023 ~2~ ~~~ City`of Dublin Statement of Fiduciary Net Assets Fiduciary Fund June 30, 2010 ASSETS Cash and investments Restricted cash and investments Receivable Total assets LIABILITIES Due to trustee Due to bondholders Total liabilities See accompanying Notes to Basic Financial Statements. 36 Agency Fund $ 368,694 164,500 ~ ~~~,va~ $ 154,255 ~ ~~~,ua~ ~ ~ ' ~ ~ ' ~ ' ' , ~ ~ ~ ' ~ ~ ~ ~ ' ~ r ~ City of Dublin ~ `~ `~~~~~~' Index to Notes to Basic Financial Statements For the year ended June 30, 2010 Page 1. Summary of Significant Accounting Policies ................. ................................................................................... 40 2. Cash, Cash Equivalents and Investments ...................... ................................................................................... 49 3. Notes Receivable ................................................................ ................................................................................... 57 4. Interfund Transactions ...................................................... ................................................................................... 59 5. Capital Assets ..................................................................... ................................................................................... 62 6. Special Assessment City Debt (Non-Obligatory) .......... ................................................................................... 63 7. Joint Powers Agreements .................................................. ................................................................................... 63 S. Fund Equity ........................................................................ ................................................................................... 63 9. Risk Management .............................................................. ................................................................................... 65 10. Compensated Absences .................................................... ................................................................................... 66 11. Pension Plan ....................................................................... ................................................................................... 66 12. Post Employment Health Care Plan ................................ ................................................................................... 68 13. Commitment and Contingent Liabilities ........................ ................................................................................... 74 14. Deficit Fund Balance .......................................................... ................................................................................... 76 15. Prior Period Adjustments ................................................. ................................................................................... 76 16. Termination Benefits ......................................................... ................................................................................... 76 17. Subsequent Events - State Borrowing of Property Tax ................................................................................... 76 37 5~ ~~ ~ ~ This page intentionally left blank ~ 38 ~ ~ - ~~ ~SD~ 2 ~ NOTES TO BASIC 1 ~ r ~ ~ ~ ~ ~ ~~ ~ ~ r ~ ~ ~ ~ FINANCIAL STATEMENTS , 39 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2010 ~~O ~ ~ ~~! ' 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 estimated at January 1, 2010 by the California Department of Finance was 48,821 including prisoners housed at the Alameda County Sheriff's Department Santa Rita Jail and at the Federal Correctional Institution. "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, 2010, the City's staff was comprised of 82 City's permanent employees who were responsible for City-provided services. The City provides many traditional municipal services through contracts with both public and private agencies. Approximately 122 contract employees whom provided a variety of municipal services from City facilities. At of June 30, 2010, the City had approximately 186 temporary and seasonal personnel that were on active payroll status. 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. 40 ~ City of Dublin ~~ ~ ~~~ t Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 , 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 revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grants 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, payables, and receivables. All internal balances in the Statement of Net Assets have been eliminated. Governmental Fund Financial Statements ~ Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and aggregated non- ~ major funds. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the Government-Wide Financial Statements. The City has presented the General Fund, Affordable Housing Special Revenue Fund, , Parks Capital Projects Fund, and Streets Capital Projects 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 Facilities Fees Capital 1 Projects Fund, Traffic Impact Fees Capital Projects Fund, Fire Impact Fees Capital Projects Fund, General Improvements Capital Projects Fund, and Community Improvements 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 the balance sheets. The reported fund balance is the 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 ~ 41 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ~ ~ ~ ~ ~~ ~ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements, Continued received in cash, except that revenues subject to accrual (generally 60 days after year-end) such as Transient Occupancy Taxes, Interest Income, Charges For Services, and Courts Fines. Accruals for the Property Taxes and Sales Tax revenues are made to account for actual revenues earned during the fiscal year, notwithstanding timing of receipt. 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 A~'{ordable Housin~ Special Revenue Fund - is used to account for in-lieu housing fees received from developers of properties, which can only be used for the design, development, and construction of citywide affordable housing projects. The Public Facilities Fees Capital Project Fund - is used to account for the 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 Tra 'c Impact Fees Capital Pro1ects 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 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 General Improvements Capital Projects Fund - is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets, Parks, or Community Improvements projects. The Community Improvements Capital Projects Fund - is used to manage the programming of funds and activities associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would promote or enhance redevelopment, revitalization, beautification of the City's community and are not Streets or Parks related projects. 42 ~ City of Dublin 5q ~ Z' Z~ , Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ~ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued ~ B. Basis of Accounting and Measurement Focus, Continued , The Parks Capital Projects Fund - is used to manage the programming of funds and activities associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, ~ or enhance the City's parks and facilities. The Streets Capital Projects Fund - is used to manage the programming of funds and activities ~ associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's highways, streets, roads, bridges, lighting, or the storm drain systems. Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Assets, a Statement of Revenues, Expenses, and Changes in Net Assets, and a Statement of Cash Flows. All proprietary funds are accounted for using the accrual basis of accounting and the "economic resources" measurement focus. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. All liabilities associated with their activity are also included on the Statement of Net Assets. , The City's proprietary funds are the 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 1 internal charges collected for the purpose of funding 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 fund. 1 43 ~~6 ~~, 1 6 Ci~y of I~ublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Fiduciary Fund Financial Statements, Continued 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. The Fallon Village and Schaefer Ranch Geological Hazard Abatement District (GHAD) are expendable trust funds. Each fiscal year, the District Engineer prepares an Engineer's Report which includes the budget for the GHAD for that year. The annual budget consists of regular site monitoring, annual inspections, contract services for annual mitigation and repairs, and administrative costs. The funds collected through special assessment are placed into a dedicated reserve fund. The reserve fund is set aside to be used to mitigate and repair large, geologic hazards, such as landsides in the Fallon Village and the Schaefer Ranch Subdivisions. 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 useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets over the useful life of these assets. The amount charged to depreciation expense each year represents that year's pro rata share of the cost of capital assets. 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 reparted on the Statement of Net Assets of the government-wide financial statements as a reduction in the book value of the capital assets. The City has assigned the useful lives listed below to capital assets. Building and improvements 20-38 Years Machinery and equipment 3-15 Years Infrastructure Streets 20-75 Years 44 ' City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 , ~ ' r ~ ~ 1 ' , ~ ' ' ' ~ (ol~~~~~ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Use of Restricted IZesources When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as needed. E. Cash and Investments GASB Statement No. 31, "Accounting and Financial Reporting for Certain Investments and External Pools", requires governmental entities to report certain investments at fair value in the balance sheet and recognize the corresponding change in the fair value of investments in the year in which the change occurred. In accordance with GASB Statement No. 31, the City has adjusted investments to fair market value. 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. In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Aniendment 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 ^ Overall ^ Custodial Credit Risk ^ 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 or the related liabilites in these financial statements. 45 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 C~Z ~a.~- ~ ~ 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued 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 after December 10 and April 10, respectively. Taxes become a lien on the property effective January 1 of the preeeding year. H. Post Employment Health Care Benefits The City provides certain health care benefits for retirees, 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 the 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 are accrued for the employees. The City engaged in an Actuarial Study Update with Bartel Associates, LLC and based on the 2007 actuarial results, the City uses a CALPERS trust fund to accumulate funds for the City's contribution towards Retiree Medical Benefits in the future. On June 29, 2007 the City established an agreement with the California Public Employees' Retirement System (CALPERS) to set aside funds and deposit into the California Employer's Retiree Benefit Trust (CERBT) fund to 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. The CERBT fund is an agent multiple employer plan and in order to ensure that the CERBT fund remains compliant with all reporting requirements, the CALPERS is responsible for publishing aggregate GASB 43 compliance Financial Statements, Notes, and Required Supplementary Infarmation (RSI). The information may be found on CALPERS web site at www.cal ep rs•ca•gov. The City also provides health care benefits for certain former employees who retired from the Dougherty Regional Fire Authority (DRFA). The DRFR is a closed Joint Power Authority. The cost of those retiree health care benefits is recognized as expenditures in the general fund as premiums are paid. The Cost is recognized on the full accrual basis in the government wide statements. The City of Dublin and the City of San Ramon share the costs, with Dublin paying 57.51 % and San Ramon paying 42.49% on a"pay as you go" basis. I. Net Assets Government-Wide Financial Statements In the Government-Wide Financial Statements, net assets are classified in the following categories: Invested in Capital Assets, Net of Related Debt - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. 46 , ~3~ ~~~ ' City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ' 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued ~ I. Net Assets, Continued ' Government-Wide Financial Statements, Continued 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 t Governmental fund balances represent the net eurrent 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 ar removed by City Council ' action. The City had the following reserves and designations: ' Reserved or 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 Cemeter~ Endowment is the portion of fund balance to be retained. This represents funds transferred by the Dublin Cemetery Association, when the City acquired the cemetery. ' Reserved for Long-term Advances is the portion of fund balance set aside to indicate that these items do not represent available, spendable resources even though they are a component of assets. Reserved {or Rec~cling 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 {or Public Sa~~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. ' 47 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Net Assets, Continued Fund Financial Statements, Continued ~ ~~` , ~ ~~ Reserved,{or 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 {or 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 ~r A{{ordable Housing includes amounts restricted for use on affardable housing programs that are funded by the Housing and Noise Mitigation developer impact fees. Reserved {or Capital Improvement Pro~ects represents amounts collected from developers to be spent on specific projects impacted by the development. Desi nQ ated for Economic Stability was established to allow for a balanced budget in the event of economic uncertainty resulting from unforeseen changes in revenues and/or expenditures. Designated for Catastrophic Facilit~n{rastructure Loss and City Business Recover~ was established for use in the event of catastrophic losses and for business recovery which are unexpected and more than $500,000 in costs, or when a Local disaster has been declared. Desi ng ated.{or Innovations and New Opportunities was established to set aside funding for future needs that may have an up-front cost, but would provide longer term benefits and/or potential operating costs reduction. Designated {or Cash Flow/Operation Stabilitu was established to address cash flow deficiencies resulting from uneven distribution of revenue collections and required expenditures during a fiscal year, such as grant funded reimbursable expenditures. Desi n,~`ated {or Service Continuity Obligations was established to address timing differences in Permit Revenues that may be collected in one year with a majority of the expenditures occurring in a future year. The reserve may be used in cases where Building Division expenditures exceed revenues. Desi ng ated {or Accrued Leave Pa~able represents the value of the City's obligation for accrued leave benefits at year end. Designated for Investment Market Value Adjustment represents the mark-to-market value of the City's investments. The amount is annually adjusted based on the market value at June 30. The form of this balance can be a positive or negative number and represents an unrealized gain (if positive) or unrealized loses (if negative). Designated {or Fire Retiree Health Benefits represents the set aside amount to fund the Dougherty Regional Fire Authority (a Joint Power Authority established in 1988 by the Cities of San Ramon and Dublin) retiree's health obligation. Currently the retiree benefits are paid on a pay-as-you-go basis. The City of Dubliri s share of the cost is 57.51 % and the City of San Ramon's share is 42.49 %. Designated for authorized expenditures represents the amount not specifically identified with an individual project. All Other DesiQnations represents the amount of resources set aside to fund or partially fund the various projects. 48 City of Dublin Notes to Basic Financial Statements, Continued ' ' ' For the year ended June 30, 2010 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued j. Use of Estimates lD~ ~ ~.~ ~ 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 2010, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board (GASB) Statements: - GASB Statement No. 51- Accounting and Financial Reporting for Intangible Assets. This Statement requires that all intangible assets, such as easements, water rights, timber rights, patents, trademarks, and computer software, not specifically excluded by its scope provisions be classified as capital assets. It also provides existing authoritative guidance related to the accounting and financial reporting for capital assets applied to these intangible assets. There was no impact on the City's net assets as a result of this implementation during the fiscal year. - GASB Statement No. 53 - Accounting and Financial Reporting on Derivative Instruments. This Statement addresses the recognition, measurement, and disclosure of information regarding derivative instruments entered into by State and Local governments. Derivative instruments are often complex financial arrangements used by governments to manage specific risks or to make investments. By entering into these arrangements, governments receive and make payments based on market prices without actually entering into the related financial or commodity transactions. Common types of derivative instruments used by governments include interest rate and commodity swaps, interest rate locks, options (caps, floors, and collars), forward contracts, and future contracts. The City has not invested in, nor will it invest in, Derivative Instruments. 2. CASH, CASH EQUIVALENTS AND INVESTMENTS , The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is allocated to the funds based on average monthly cash and investment balances in these funds. ' A. Cash Deposits ' At June 30, 2010, the carrying amount of the City's cash deposits was -$3,309,235. Deposits in transit were $37,738. The total outstanding checks were $5,998,342. Bank balances before reconciling items were $2,620,326 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. ' 49 ~ l~ ~~~ ' ~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued A. Cash Deposits, Continued 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. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. B. Investments Under the provisions of the City's investment policy, and in accordance with Section 53601 of the California Government Code, the City is autharized to invest or deposit in the following investments: • United States Treasury Issues • Federal Agency Obligations • Bankers' Acceptances • Commercial Paper. • Time Certificates of Deposit • Money Market Funds • State of California Local Agency Investment Fund (LAIF) • California Asset Management Program (CAMP) In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investments Pools, investments should be stated at fair value. The City reported its investments at fair value. For the year ended June 30, 2010, the unrealized gain on investments amounted to $1,516,569. Interest and investment earnings before recognition of unrealized gain were $2,488,601 as of June 30, 2010. 50 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 , ~~~Z~-~ 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued B. Investments, Continued The following is a summary of pooled cash and investments, including restricted cash and investments at June 30, 2010: Government-Wide Statement of Fiduciary Net Assets Funds Cash and investments Restricted cash and investments Total C. Risks Disclosures Governmental Statement of Activities Net Assets $ 99,594,436 $ 146,200 $ 99,740,636 $ 368,694 $ 164,500 533,194 $ 100,273,830 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, 2010, the City's pooled cash and investments had the following maturities: Maturity Less than one year One to three years Three to five years Percentage of Investment 51 62% 28% 10% Total 99,963,130 310,700 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 !~S ~~.~ ~ ~ ' 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued C. Risks Disclosures, Continued ' The average maturity of the total portfolio was 1.12 years and the average life of the federal security portfolio was 2.12 years. Deposits and investments held by the City at June 30, 2010 are summarized below: Inveshnent MaturiHes (in years) ~ Investment Type Fair Market Value 1 year or less 1-5 years City Treasury ' Deposits: Cash on hand $ 2,748 $ 2,748 $ - Deposits with banks (3,309,235) (3,309,235) ' - Total deposits (3,306,487) (3,306,487) - Investments: , California Asset Management Program Fund 8,459,547 8,459,547 - California Local Agency Investment Fund 45,178,141 45,178,141 - Federal Farm Credit Bank 4,795,703 4,795,703 - Federal Home Loan Bank 35,437,705 4,544,070 ' 30,893,635 Federal Home Loan Mortgage Corporafion 6,342,450 - 6,342,450 Federal National Mortgage Associarion 3,021,570 - 3,021,570 Money Market/ Mutual Funds 34,501 34,501 ' - TotalInvestments 103,269,617 9,374,274 93,895,343 Total City Treasury 99,963,130 6,067,787 93,895,343 Cash with fiscal agents 31Q700 - 310,700 , Total City and fiscal agents cash and investments $ 100,273,830 $ 6,067,787 $ 94,206,043 Credit Risk. Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The City's policy requires an appropriate risk level be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The City's investment policy relating to credit risk of investments is as follows: - United States Treasury Issues. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limitation as to the percentage of the portfolio that may be invested in this category. - Federal Agency Obligations. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There is no limitation as to the percentage of the portfolio that may be invested in this category. However, the Treasurer strives to limit the portfolio's exposure to any one federal agency issuer to 40 percent of the overall portfolio and limit the portfolio's exposure to callable federal agency securities to 25 percent of the overall portfolio. 52 ~ .. '`~, ~~ City of Dublin ~0 ~ ~ ~. ' Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ' 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued ' C. Risks Disclosures, Continued ~ - Bankers Acceptances. Bankers' acceptances, otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Bankers' acceptances must be secured by the irrevocable primary obligation of the accepting domestic bank. Purchases are , limited to issuers whose short-term debt is rated "A-1" or higher, or the equivalent, by a Nationally Recognized Statistical-Rating Organization (NRSRO). Bankers' acceptances cannot exceed a maturity of 180 days. A maximum of 40 percent of the portfolio may be invested in this category. The amount invested in bankers' acceptances with any one financial institution in ' combination with any other debt from that financial institution generally cannot exceed 20 percent of the portfolio. - Commercial P~er. Commercial paper of "prime" quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (A) or paragraph (B): (A) The entity meets the following criteria: (i) Is organized and operating in the United States ' as a general corporation. (ii) Has total assets in excess of five hundred million dollars ($500,000,000). (iii) Has debt other than commercial paper, if any, that is rated "A" or higher by a nationally recognized statistical-rating organization. ' (B) The entity meets the following criteria: (i) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (ii) Has program wide ' credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. (iii) Has commercial paper that is rated "A-1" or higher, or the equivalent, by a nationally recognized statistical-rating organization. ' Eligible commercial paper cannot exceed a maximum maturity of 270 days and cannot represent more than 10 percent of the outstanding paper of an issuing corporation. A maximum of 25 ' percent of the portfolio may be invested in this category. The amount invested in commercial paper of any one issuer in combination with any other debt from that issuer cannot exceed 20 percent of the portfolio. ' - Negotiable Certificates of Deposit. Negotiable certificates of deposit (NCDs) issued by a nationally or state-chartered bank, a savings association or a federal association, a state or ' federal credit union, or by a state-licensed branch of a foreign bank. Purchases are limited to institutions which have long-term debt rated "AA" or better and/or have short-term debt rated at least "A-1" or higher, or the equivalent by a NRSRO. A maximum of 30 percent of the ' portfolio may be invested in this category. The amount invested in NCDs with any one financial institution in combination with any other debt from that financial institution can not exceed 20 percent of the portfolio. ' ~ 53 ~0~~~.°~- ~ City of I~ublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued C. Risks Disclosures, Continued - Time Certificates of Deposit. Time Certificates of Deposit (TCDs) placed with commercial banks and savings and loans. The purchase of TCDs from out-of-state banks or savings and loans is prohibited. The amount on deposit can not exceed the shareholder's equity in the financial institution. To be eligible for purchase, the financial institution must have received a minimum overall satisfactory rating for meeting the credit needs of California Communities in its most recent evaluation, as provided Government Code Section 53635.2. TCDs are required to be collateralized as specified under Government Code Section 53630 et. seq. The Treasurer, at his discretion, may waive the collateralization requirements for any portion that is covered by federal insurance. The City obtains a signed agreement with the depository per Government Code Section 53649. TCDs may not exceed one (1) year in maturity. A maximum of 10 percent of the portfolio may be invested in this category. - Money Market Funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 and related sections). The company must meet either of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs. (B) Retained an investment adviser registered ar exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000). A maximum of 20 percent of the portfolio may be invested in this category. For due diligence, the Treasurer maintains on file a copy of the current Prospectus for any mutual fund in which the City has funds invested. - State of California Local Agen~ Investment Fund (LAIF). A maximum of 75 percent of the portfolio may be invested in this category. Far due diligence, the Treasurer maintains on file a copy of LAIF's current Answer Book. - California Asset Management Program (CAMP). Shares of beneficial interest issued by a joint powers authority arganized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (n), inclusive of to Government Code Section 53601. For due diligence, the Treasurer maintains on file a copy of CAMP's current Infarmation Statement. At June 30, 2010, the City had the following investments credit risk ratings: The Credit Quality Ratings listed below meet or exceed the acceptable credit risk ratings established in the City's investment policy, where applicable, by the California Government Code. 54 1 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ~ 1 ~~~~~~ 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued C. Risks Disclosures, Continued ~ Credit Quality Ratings Moody's S&P Investments: ' Federal Home Loan Bank AAA AAA Federal Home Loan Mortgage Corporation AAA AAA Federal National Mortgage Association AAA AAA ' Federal Farm Credit Bureau AAA AAA Mutual Funds AAA AAA California Asset Management Program Fund Not Rated AAA ' California Local Agency Investment Fund Not Rated Not Rated Cash with fiscal agents Not Rated Not Rated ' Concentration of Credit Risk. Within the investments permitted by the Government Code, the City's investment policy seeks to further restrict eligible investment to the investments listed below. In the event an apparent discrepancy is found between the City's policy and the Government Code, the more restrictive ~ parameters will take precedence. The portfolio is diversified by security type and institution to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions. ' 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 1 authorized by the City's investment policy or stipulated by the California Government Code. Maximum Maximum , Maximum Percentage of Investment in Authorized Investment Type Maturity Portfolio One Issuer United States Treasury None None None ' Federal Agency Obligations None None 40%* Bankers Acceptances 180 days 40% 20% Commercial Paper 270 days 25% 10%** Negotiable Certificates of Deposit None 30% 20% ~ Time Certificates of Deposit 365 days 10% CA only Money Market Mutual Funds None 20% None State of CA Local Agency Investment Fund (LAIF) None 75% None ' California Asset Management Program (CAMP) None None None *There is no limitation as to the percentage of the portfolio that may be invested in this category. , However, the Treasurer strives to limit the portfolio's exposure to any one federal agency issuer to 40% of the total portfolio and limit the portfolio's exposure to callable securities to 25% of the overall portfolio. , **The amount invested in commercial paper of any one issuer in combination with any other debt from that issuer does not exceed 20 percent of the portfolio. ' S5 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued C. Risks Disclosures, Continued '12~~~ ~ 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, $310,700 of securities are held by the fiscal agents not in the name of the City. As of June, 2010 there were $164,500 on deposit at US Bank for the Dublin Boulevard Extension Special Assessment District and $146,200 on deposit with State Condemnation Fund. D. Investments in Local Agency Investment Fund The Local Agency Investment Fund (LAIF) is a voluntary investment program created by statute. It began in 1977 as an investment alternative for California's local governments and special districts and continues today under the State Treasurer administration. The LAIF is part of the Pooled Money Investment Account (PMIA). The PMIA began in 1955 and oversight is provided by the Pooled Investment Board (PMIB) and an in-house Investment Committee. The PMIB members are the State Treasurer, Director of Finance, and State Controller. The Local Investment Advisory Board (LIAB) provides oversight for LAIF. The Board consists of five members as designated by statute. The Chairman is the State Treasurer or his designated representative. Two members qualified by training and experience in the field of investment of finance, and the State Treasurer appoints two members who are treasurers, finance or fiscal officers or business managers employed by any county, city or local district, or municipal corporation of the State of California. The term of each appointment is two years or at the pleasure of the appointing authority. The City valued its investments in LAIF as of June 30, 2010, at fair value which approximates cost. The fair value was calculated by multiplying the account balance with LAIF times a fair value factor of 100.1643%, 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, 2010, 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 martgage-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. 56 -~ 3 ~, ~ ~ ~. ~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ' ~ ' ~ ' ~ , ~~ ~ ~ ~ ~ ~ ~ ' ~ ~ , 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued D. Investments in Local Agency Investment Fund, Continued As of june 30, 2010, the City had a balance of $45,178,141 of market value invested in LAIF, which had invested 5.42% of the pooled investment funds ($69,385,966,558) in Structured Notes ($625,119,000) and in Asset-Backed Securities ($3,310,000). 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, 2010: First Time Homebuyer Loan $ 982,309 Eden Senior Affordable Housing Loan 2,540,183 West Dublin Bart Station Loan 1,250,000 Arroyo Vista Predevelopment Loan 324,936 Total $ 5,097,428 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 total outstanding amount due including accrued simple interest at 3.5 % per annum due to tl-re City as of June 30, 2010 was $982,309. 57 ~~ ~~~. 1 ~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2~10 3. NOTES RECEIVABLE, Continued LOAN # ORIGINAL LOAN LOAN DATE AMOUNT ACCRUED INT~1iEST REPAYMIIVT OF PRINCIPAL AND INTE[tEST LOAN BALANCE #07-O1 02/16/07 $ 39,915 $ 4,708 $ - $ 44,623 #07-03 OCi/30/07 60,039 6,840 - 66,879 #07-02 04/03/07 36,500 4,144 - 40,644 #07-08 07/24/07 35,596 3,659 - 39,255 #07-10 OS/28/07 49,536 4,R26 - 54,462 #07-09 08/28/07 26,036 2,589 - 28,625 #07-06 09/28/07 35,640 2,522 (38,162) (0) #07-07 09/28/07 42,886 4,137 - 47,023 #07-12 Q2/16/07 33,051 3,898 - 36,949 #07-14 10/01/07 19,610 1,886 - 21,496 #07-11 10/10/07 38,141 3,635 - 41,776 #07-13 10/11/07 40,253 3,833 - 44,086 #07-04 10/30/07 50,000 4,670 - 54,670 #07-15 12/03/07 24,536 2,212 - 2b,748 #07-16 12/28/07 8,000 702 - 8,702 #07-17 02/04/OS 22,826 1,534 (24,3fi0) 0 #07-18 02/29/08 24,170 1,975 - 2b,145 #07-20 05/30/OS 19,175 1,399 - 20,574 #0~01 OS/15/OS 25,377 1,664 - 7J,041 #0~02 10/20/08 47,200 2,797 - 49,997 #08-06 10/17/08 33,750 2,010 - 35,760 #0~04 11/14/08 41,500 2,360 - 43,860 #0&Q5 01/29/09 2~619 1,121 - 23,740 #0~06 02/11/09 55,404 2,678 - 58,082 #0~07 04/09/09 27,425 1,176 - 28,601 #0~08 06/30/09 39,576 1,389 - 40,965 #09-O1 OB/03/09 33,000 1,047 - 34,047 #O~QZ 09/28/09 36,595 965 - 37,560 T'OTAL $ 968,356 $ 76,475 $ (62,523) $ 982,309 Eden Senior A~{ordable 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 fhe Ioan, together with the interest accrued is 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 thereafter, 60% of the Surplus Cash generated by the project during the previous calendar year is remitted to reduce the outstanding indebtedness. Any payment not paid when due bears 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, 2010 was $2,540,183. 58 ~~~ ~~~ ~ 1 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 3. NOTES RECEIVABLE, Continued West Dublin/Pleasanton BART Loan - On December 20, 2005, the City approved a funding agreement between the City of Dublin, the City of Pleasanton, and the San Francisco Bay Area Rapid Transit District (BART) established pursuant to Public Utilities Code Section 28500 for the construction of the West Dublin/Pleasanton BART Station with parking and other facilities. BART intends to issue bonds to finance all or a portion of the construction of the West Station. In order to issue and sell the bonds, BART must establish certain debt service reserves. The agreement requires the City of Dublin to contribute $2.5 million to a Reserve Fund which could be utilized by BART in the event that Operating Revenues were insufficient to cover Debt Service and Operating Expenses for the West Dublin/Pleasanton BART Station. The City committed 50% of the obligations at the time that BART issued bonds for the construction. The second installment is due when BART passenger service begins, which currently is estimated to be mid 2011. The funding agreement also calls for the return of any unused portion of cash contribution at the end of the fifth year of Revenue Operations. The outstanding amount as of June 30, 2010 was $1,250,000. Arroyo Vista Predevelopment Loan - On December 18, 2007, the City approved a loan in the amount of ' $325,000 to Eden Housing for predevelopment activities on the Arroyo Vista Redevelopment project. Total amount disbursed as of June 30, 2010 was $324,936. The loan was approved to pay for Environmental Review Costs, the Transaction Costs, and other predevelopment costs incurred by Eden Housing, such as ' architect, legal, and consultant fees. The loan is to be paid in full on December 18, 2010 the third anniversary date of the loan origination date and interest is not accrued on any portion of the loan provided that Eden Housing is not in default under the terms of the loan agreement. 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 and other reimbursements. During the fiscal year advances were made to the Enforcement Grant fund ($8,510); the SAFETEA-LU (Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users) Fund ($1,211,719) the , Congestion Management Agency Fund ($289,000), the America Recovery and Reinvestment Act Fund ($4,939), the East Bay Regional Park District Fund ($306,536), the Community Development Block Grant Fund ($51,440), and the Internal Service Retiree Health Reimbursement Fund ($283,176). When the 1 reimbursement is received, normally shortly after year end, the interfund liability is liquidated. The following interfund balances existed at June 30, 2010: ' Due fromotherfunds Major Fund Due to otherfunds General Fund ' Non Major Funds $ 2,155,321 i ~ 59 ~~D~ ~ ~~" ~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 4. INTERFUND TRANSACTIONS, Continued Advances To/From 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. During the Fiscal Year 2007-2008, the General Fund made a long term advance to the Internal Service Fund - CALPERS Side Fund to prepay CALPERS for the City's Side Fund Obligation. The Side Fund was created in 2005 when CALPERS assigned agencies with less than 100 participants to a risk sharing pool. The Side Fund was the City's negative unfunded liability at the time the City was 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 benefit of prepayment resulted in reduction of the Employer Contribution rate in FY2007/2008 from 15.894% to 11.575%. The advance from General Fund will be repaid annually, calculated at the rate of 4.319% of the total salary and be recorded as an Internal Service Fund retirement benefit expenditure with an offset to reduce the General Fund long term advance. During the Fiscal Year 2009-2010, the General Fund made a long term advance to the Public Facility Fee Capital Projects Fund to fund the construction of the Fallon Sports Park. The advance will be repaid through future revenues to the Public Facility Fee Fund. Interest accrues on the advance at a rate equal to the City's return on its investment portfolio. The following inter fund balances existed at June 30, 2010: Advances from other funds Fire Impact Fees Capital Project Fund Public Facility Fees Capital Project Fund Intemal Service Fund Total Advances to other funds Major Fund GeneralFund $ 1,808,886 1,376,554 2,642,84b $ 5,828,286 60 ~ City of Dublin ~1 ~ ~ Z~ ' Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ~ 4. INTERFUND TRANSACTIONS, Continued ' Transfers In/Out ' Interfund transfers for the year ended June 30, 2010 were as follows: T r a n s f e r s I n , T Major Funds Nw~ Nlajor Funds T a B~ Culvat ~ General Co~nuniry and Stovn 5 Affordable Improvements Lnprwements Water Mgt ' f Housing Capital Projetl Capital Project Pazla Capital StreetsCapital Speaal e Fund Descriptions: General Fund Fund Fund Fund ProjeR Fund Project Funds Revenue Funds Total r S General Fund 742,754 82,333 1,477,454 655,782 439,248 3,427,571 Pu6lic Fa~ility Capital Projed Fund 8,011,675 8,011,675 ~ ~ Traffic I~ad Foe Capihal Project Fund 6,848,129 6,848,129 ° Non Ma'pr Funds ?8,648 6,596 36,760 1,180,461 6,237,570 7,490,035 t Total $?8,648 $ 6,596 $ 779,514 $ 82,333 $ 10,669,590 $ 13,771,481 $ 439,248 $ 25,T17,410 0 ' Transfers In to the General Fund consists of reimbursement of staff administration costs -$16,421 from the Vehicle Abatement Special Revenue Fund and $12,227 from the Lighting and Landscaping Maintenance , Assessment District Special Revenue Funds. Transfer In to the Affordable Housing Fund in the amount of $6,596 was a reimbursement from the CDBG ~ Special Revenue Fund far staff administrative costs. Transfer In to the General Improvements Capital Project Fund to fund capital project expenditures - ' $742,754 from the General Fund and $36,760 from the CDBG Special Revenue Fund. Transfer In from the General Fund to the Community Improvements Capital Project Fund in the amount of 1 $82,333 to fund capital project expenditures. Transfer In to the Parks Capital Project Fund to fund capital project expenditures -$1,477,454 from the , General Fund, $1,171,624 from the East Bay Regional Park District Special Revenue Fund, $8,837 from the Public Art Special Revenue Fund, $8,011,675 from the Public Facility Fees Capital Project Fund. ~ Transfer In to the Streets Capital Project Fund to fund capital project expenditures -$685,782 from the General Fund, $1,097,337 from the Gas Tax Special Revenue Fund, $2,118,373 from SAFETE-LU (Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users) Special Revenue Fund, $2,237,135 from the Measure B Sales Tax - Local Streets Special Revenue Fund, $52,060 from the Measure B ~ Sales Tax - Bike and Pedestrian Special Revenue Fund, $289,000 from the Congestion Management Special Revenue Fund, $406,987 from the Traffic Congestion Relief Special Revenue Fund, $36,678 from the Storm Water Management Special Revenue Fund, and $6,848,129 from the Traffic Impact Fees Capital Project , Fund. Transfer In to the Box Culvert Special Revenue Fund $335,728 and to the Dublin/Dougherty Storm Water ' Management Special Revenue Fund $103,520 to segregate funds recorded in the General Fund for specific Storm Water activities. 1 61 ~~~~ ~~ ~ City of Dublin ' Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ~ 5. CAPITAL ASSETS A. Government-Wide Financial Statements Capital assets include land, buildings, and equipment used in City operations. Infrastructure includes roads, bridges, curbs, sidewalks, drainage systems, street and traffic lights, park improvements and other improvements used by all citizens. The following is a summary of capital assets for governmental activities: Balance July 1, 2009 Additions Deletions Balance June 30, 2010 Capita] assets, not being depreciated: Land $ 162,556,225 $ - $ - $ 162,556,225 Streets right of way 35,425,288 - - 35,425,288 Construction in progress 8,001,873 14,330,809 (97,690) 22,234,992 Total capital assets, not being depreciated 205,983,385 14,330,809 (97,690) 220,216,505 Capital assets, being depreciated: Infrastructure 345,149,139 7,752,883 - 352,902,022 Buildings and improvemems 68,517,699 94,515 - 68,612,214 Vehicles and equipment 6,613,085 277,856 - 6,890,941 Total capital assets, being depreciated 420,279,923 8,125,254 - 428,405,177 Less Accumulated depcreciation for Infrastructure (179,579,578) (5,944,730) - (185,524,308) Buildings and improvemetns (18,248,114) (2,532,829) - (20,780,943) Vehicles and equipment (4,961,232) (498,093) - (5,459,325) Total accumulated depreciation (202,788,924) (8,975,652) - (211,764,576) Total capital assets being depreciated, net 217,490,999 (850,398) - 216,640,601 Governmental activities capital assets, net $ 423,474,384 $ 13,480,411 $ (97,690) $ 436,857,106 Depreciation expense was charged to functions/programs of the primary government as follows: General government $ 875,132 Public Safety 599,787 Highways and streets 5,052,928 Communii~~ Development 10,025 Culture and leisure 2,437,780 Total depreciation expense - governmental activifies $ 8,975,652 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. 62 ~ ~~~2Zz ~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 i 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 $573,000 at June 30, 2010. 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. . loint Ventures ' The Cities of Dublin, Pleasanton, and Livermore and the County of Alameda have entered a joint venture 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 was $4,523,877. The City's share for the annual debt service requirements are based upon the statistics of live animals handled in the shelter. In Fiscal Year ' 2009/2010 the City contributed $31,149 representing 19.48%of the total annual debt service payment. In addition, the City contributed $192,952 or 19.48% toward the annual operating shelter services and $69,257 or 13.06% of the animal field service expenditures. , 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. S. 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. ~ 63 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 8. FUND EQUITY, Continued $~ ~~~ ' ~ ~ In Governmental Funds, fund reservations and designations are presented as a component of fund balance ' as follows: Reseve~ Pte~aid ac~ufittaes CE~ret~y Fncbovrr~ rt Long~emadvarces~'ublic Facility Fees Fund Ilmgfamadvarccs-Fire In~ut Fee Fvrd Long~emadvarces-PII25 5de Fimd R,t~l;~ ~fetvp~ogans 3ieet ~irrtaiarce and mn.stnrtion Healdi arci wElfa~e ~S'~T~S P~~~ Non ResideNial Hoising In tieu AffordableHousng Capi tal inprovanad projects Tdalreseved Chvrseived, desig~ate~ O}~'ation Carrywes m' Canyo~s Advan~toTVIDFvnd W. HARI'StationCm~trih AffunjableHousrig Gvic Caita Ex~anson Opm 5pxe Tbcvntown P~blic Improva~ts Panaald a m llquatic Caita tinebaiq' ComrnmimationSysten Fire Retiree I$]th Ea~efi ts }-fistoric Padc Ckvelopmart Iv~Ne~n~ Faality In~vv~atrs Inc~strnadNfirket Val~ Adjist~i~t Acavedleave Payal~le ~rvice ContinLrity Cbli~tion Intaest Rate/Irrvestnait Volatility Froromic 3abiliiy Catvstrop}uc Loss & Bisirrss Recovey Ca~ Flow&O~ration Stalility Inrovation &NewO~~po~twuties Authoriad Fx}autihves Tdal unraaved desig~aled Unmserved, undesigiated Tdal fund a~uily AffoidaUle Streels PublicFaolit~ FueInpxt Trafficltrpact C~aal Hrnsing Capital Capiial FeesCa}atal FeesCapital NorrIv~jor Furd Fimd PlojectFimd Av~ A-t~ ProjectFimd Fu~ds ToYal $ 31,160 $ - $ - $ - $ - $ - $ - $ 31,160 EoAOO - - - - - - 6oAC0 1~76,554 - - - - - - 1,376,551 1,8~,886 - - - - - - 1.8(8,886 z,~z,s~ - - - - - - z6az,sa6 - - - - - - 3D,457 3~,457 - - - - - - 3,877,78~3 3,877,7b3 - - - - - - 119A~ 119A73 - - - - - - 692,793 69L,7A3 - 323,810 - - - - - 323,810 - 10,611,8@ - - - - - 10,611,802 - 1,9Qi,OCr1 9,314 - - 6,3i2,~35 874,397 9,049b~ 5,97L,446 12,838,676 9,314 - - 6,3i2~5 5,893,5(X3 30,926,830 171,100 - - - - - - 171,1~ 2~,5d7 - - - - - - 2Q3SQ7 1,oooA~ - - - - - - i,oooAOo lA~A~ - - - - - - i,0oo,ooD 1445,257 - - - - - - 1,945251 1AooA~ - - - - - - ~,ooD,ooo 1AroAOO - - - - - - ~,oaoAro 1~ODACO - - - - - - 1,500,000 lA0oA0D - - - - - - i,00oA00 45ooA~ - - - - - - 450oA00 1,7&1.2H - - - - - - ~,~~~ 6C~1b02 - - - - - - 6Cr}b02 1,516,5(fl - - - - - - 1,516,5(fl 802372 - - - - - - 802~72 13~A~ - - - - - - ~,35oA0D 23~AOO - - - - - - z375poD 5863,&17 - - - - - - 5,868,847 8,~A0o - - - - - - 84~AOo 9,3EDAOD - - - - - - 9,3E,oA0D 10,125A~ - - - - - - 10,125A~ 3,993 - - - - - - 3,933 ~A`-~,~ - - - - - - 55,090,382 - - - (~3E~0,043) (1,E(18,8E6) - - (3,168,9~) $ 61A12,8?B $ 12,838b76 $ 9,314 $ (1,360,6~3) $ (1,~8,886) $ 6,~i2,~5 $ 5,893$09 $ 82,898,283 64 1 , City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ' 9. RISK MANAGEMENT , A. Risk Pool ' The City participates in the ABAG PLAN Corporation, which covers general liability claims in an amount up to $10,000,000 and property insurance coverage for members up to $500,000,000. The City has a deductible or uninsured liability for general liability of up to $50,000 per claim. The deductible for ~ property claims is $5,000 per occurrence. The deductible for property claims for automobiles is $5,000 for claims under $25,000 and no deductible for claims over $25,000. 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, 2010, the City contributed $197,605 toward current year Property Premium, Public Official Bond, Administrative Premium, General Liability and Excess Liability coverage. The ABAG PLAN is governed by a board consisting of representatives from member municipalities. The board controls the operations of the ABAG PLAN including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board. ~1c7~ Z.~~ The City's contributions to the ABAG PLAN for liability coverage are based on a formula which considers the ratio of the City's payroll to the total payrolls of all entities participating in the same layer of each program, in each program year's loss history and population. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. There have been no significant reductions in any of the City's areas of insurance coverage and no settlement amounts have exceeded coverage in the past three years. 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 policy with New York ~ Marine Insurance Corp 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, 2010, the City paid the Group $20,486 in premiums. At June 30, 2010, the City of Dubliri s share of equity in the Cities group amounted to $182,143. Financial Statements may be obtained from the Cities Group, PO Box 111, Burlingame, CA 94011-0111 ~ 65 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 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 expenditures 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 (IBNR) losses. This amount was estimated based on claims experience. The liability recorded is adequate to cover 5.43 IBNR claims. Therefore no adjustment was made in fiscal year 2009-2010 as the City's exposure is for the $50,000 deductible per General Liability claim. June 30, 2010 June 30,,2009 June 30, 2008 Balance $ 271,916 $ 271,916 $ 271,916 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 leave is $802,312. The liability will be paid from future resources primarily from the general fund. Due within July 1, 2009 Additions Deletions June 30, 2010 one year Accrued General Leave $ 758,913 $ 76,303 $ (63,612) $ 771,604 $ 231,481 Accrued Compensated Leave 32,669 13,262 (15,223) 30,708 9,212 $ 791,582 $ 89,565 $ (78,835) $ 802,312 $ 240,694 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 CaIPERS, which acts as a common investment and administrative agent far 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. Ca1PERS issues a separate comprehensive annual financial report. Copies of the CaIPERS's annual financial report may be obtained from the CaIPERS Executive Office, 400 P Street Sacramento, California 95814. 66 ' City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ~~ ~zz~ 11. PENSION PLAN, Continued A. PERS, Continued ' Funding Polict~ - 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 $540,837. The City is required to contribute the actuarially determined remaining amounts necessary 1 to fund the benefits for its members. The actuarial methods and assumptions used are those adopted the Cal PERS Board of Administration. The required employer contribution rate for fiscal year 2009- 2010 was 11.811% 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 Ca1PERS. Annual Pension Cost - For fiscal year 2009-2010, the City's annual pension cost was $1,728,667 and was equal to the City's required and actual contributions. The required contribution for fiscal year 2009- 2010 was determined in the June 30, 2007, 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 compounded annually 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 025 percent. The actuarial value of Miscellaneous Plari 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, 2007 was 17 years for miscellaneous employees for prior and current service unfunded liabilities. The Asset Valuation Method was 15 Year Smoothed Market. ~ Three Year Trend Information for the Miscellaneous Plan ' Annual Percentage Pension Cost of APC Net Pension Fiscal Year (APC) Contributed ObligaHon ' 6/30/2008 $ 1,724,812 100% $ _ 6/ 30/2009 1,808,535 100 % 6/ 30/2010 1,728,667 100 % - ~ The City adopted GASB Statement No. 50, Pension Disclosure, an amendment of GASB Statement No. 25 and 27. This Statement aligns the financial ''reporting for pensions with those for other 1 postemployment benefits. It also provides enhancement in the information disclosed in the notes to the financial statements or presented as required supplementary information. ~ 67 $~ z~~ 1 ~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 11. PENSION PLAN, Continued B. Social Security/Public Agency Retirement Systems (PARS) The Omnibus Budget Reconciliation Act of 1990 (OBRA) mandates that public sector employees who are not members of their employer's existing retirement system as of January 1, 1992, be covered by either Social Security or an alternate plan. The City's part-time, seasonal and temporary employees were covered under Social Security, which required 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 these part-time employees. The PARS plan was effective December 25, 2005, and replaced Social Security. The employees contributed $50,179 or 6% of salary and the City contributed $12,555 or 1.5% of employee's pay towards PARS for the year ended June 30, 2010. 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 (Call'ERS). The plan provides medical insurance benefits to eligible retirees and their eligible dependents. In accardance 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 Adininistration 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. Funding Policy. There is no requirement imposed by Ca1PER5, 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 Ca1PERS Board of Adnunistration 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 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 2009 Actuarial Study completed by Bartel and Associates, LLC in accordance with GASB Statement 45, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. 68 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 1 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued A. City of Dublin Retiree Health Plan, Continued ~5~~~~ For fiscal year 2010, the City made a total of $862,828 in contributions, of which $568,261 represented current contributions and $294,567 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 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). During fiscal year 2009-2010, the City made additional quarterly transfers amounted to $568,984. 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, 2010, the Internal Service Fund held a remaining total of $11,627 to be transferred to Ca1PERS in Fiscal Year 2010-2011. 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 aciually contributed to the plan, and changes in the City's net OPEB obligation to the City Retiree Health Plan: Annual required mntribution $ 610,000 Interest on net OPEB obligation (19,000) Adjustment to aimual i~uired contribution 24,000 Annual OPEB experse (income) 615,000 Contributions made (862,828) In~ease (decrease) in net OPEB obliRation (247,828) Net OPEB obligation (asset) -be~nnung of year (516,51~ Net OPEB obli~ation (asset) -end of year $ (764,343) ~ The City Retiree Health annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2010, and the preceding years were as follows:. Fiscal Year Ended OPEB Cost Cost Contributed Obligation (Asset) 6/30/2008 $ 511,000 141.37% $ (211,418) 6/30/2009 $ 511,000 159.71% $ (516,515) 6/30/2010 $ 615,000 140.30% $ (764,343) 69 pt~ ~ ~ ~~ ' City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued A. City of Dublin Retiree Health Plan, Continued Funded Status and Funding Progress. As of June 30, 2009, the most recent actuarial valuation date, the plan was 76% funded. The Actuarial Accrued Liability (AAL) for benefits was $6,990,000, and the Actuarial value of Plan Asset was $5,326,000, resulting in an Unfunded Actuarial Accrued Liability (UAAL) of $1,664,000. The covered payroll (annual payroll of active employees covered by the plan) was 7,618,000, and the ratio of UAAL to the covered payroll was 21 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 multi-year 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, 2009 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. 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, 2009 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 CaIPERS 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 CaIPERS 1997-2002 Experience Study. Retirement assumption was also based on Ca1PERS 1997-2002 Experience Study of the Miscellaneous Plan 2.7% at 55 years, with expected retirement age of approximate 59 for females and 60 for males. 70 , .~~~~~.~. , City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ' 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued ' A. City of Dublin Retiree Health Plan, Continued ' The following table includes the annual healthcare cost trend rate used in the Actuarial Valuation: Year Non-Medicare Medicare ~ HMO PPO HMO PPO 2009 Actual Premiums Actual Premiums 2010 9.1 % 9.8% 9.4% 10.1 % 2011 8.4% 9.0% 8.7% 9.3% ' • + • • • 2017 + 4.5% 4.5% 4.5°/a 4.5% ' 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 (DRFA), a joint powers agency (JPA). The JPA 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 JPA personnel were absorbed by , the two new service providers pursuant to a mutual agreement. The JPA has remained intact to conclude the financial affairs of the entity. This includes residual retiree obligations and workers compensation liabilities. Dubliri s share of all DRFA 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 DRFA Retiree Health Plan is a single-employer defined benefit healthcare plan administered by the California Public Employees Retirement System (Ca1PERS). 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 DRFA, to purchase health insurance benefits. , Funding Policy. There is no requirement imposed by Ca1PERS, to contribute any amount beyond the pay-as-you-go contributions. The cost of monthly insurance premiums may be shared between the retiree and DRFA. 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 Ca1PERS Board of Administration and applicable laws. Within the parameters of the law, individual contracting agencies, such as the DRFA, 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 DRFA Management Committee. ' For fiscal year 2009-2010, the City contributed $49,800 to the plan, all of which was for current premiums. No other contributions were made. , ~ 71 ~~~ ~~~. 1 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued B. Dougherty Regional Fire Authority Health Plan, Continued Annual OPEB Cost and Net OPEB Obligation. The City of Dubliri s share of the DRFA Retiree Health Plan 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, Accounting and Financial Reporting for Postemployment Beneftts Otller than Pensions. The ARC represents a level of funding that, if paid on an on-going 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 actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City of Dublin share of DRFA 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 DRFA Retiree Health Plan: Anrn~al required contribution $ 111,000 Irrterest on net OPEB obligation 2,ppp Adjustment to armual i~uired cantribution (3,000) Annual OI'EB expense (income) 110,000 Coritributions made (49,800) In~ease (decrease) in net OPEB obliRation 60,200 Net OPEB obligation (asset) -begirn~ing of year 151,065 Net OPEB oblip~tion (asset) -end of year $ 211,265 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 2010 and the previous years were as follows: Ended OPEB Cost 6/30/2008 $ 110,000 6/30/2009 110,000 6/30/2010 110,000 Cost Contributed Obligation 60.24% $ 87,746 42.44 % 151,065 45.27% 211,265 Funded Status and Funding Progress. As of June 30, 2009, 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 (UAAL) equaled $867,658. 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 72 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ~~~ ~~~ 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued B. Dougherty Regional Fire Authority Health Plan, Continued 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. ' A sole or agent employer that meets any of the eligibility criteria in paragraph 11 of GASB 45 is permitted to apply the alternative measurement method set forth in paragraphs 33 through 35 of GASB45, which allows for certain simplifying modifications to the selection of assumptions for purposes of ' measuring the ARC (Annual Required Contribution) and the plari s actuarial accrued liabilities and funded status. In the June 30, 2009 actuarial valuation prepared by Vavinek, Trine, Day & Co., LLP the actuarial used was Alternative Measurement Method with the 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. The actuarial assumptions included a 4.5% investment rate of return (net of administrative expenses), calculated based on the funded level of the plan at the ' valuation date. The expected rate of increase in healthcare insurance premiums is based on projections of the Office of the Actuary at the Centers for Medicare and Medicaid Services, as published in National Health Expenditure Projections: 2009-2019, Table 3. The increases are as follows: FYE 6/30 RATE 2011 4.00% 2012 3.70% 2013 5.40% 2014 6.70% 2015 7.10% 2016 6.80% 2017 & Later 6.20% The Actuarial Accrued Liability (AAL) is the cumulative value, on the valuation date, of prior Normal Costs. For retirees, the AAL is the present value of all projected benefits. Although GASB45 allows an amortization period not to exceed 30 years, due to the closed status of the plan, the unfunded AAL is amortized over 20 years as a level of dollar amount. 73 ~ o zzz ' ~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 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. 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 Pleasanton for the costs of making improvements to the interchanges on Interstate 580 at Hacienda Drive and Tassajara Road/Santa Rita Road that benefit development in both Pleasanton and future development in Eastern Dublin. The Cities entered into an agreement on November 3, 1998, to allow for an automatic annual escalator factor in the amount of the fee assessed to developers based upon the LAIF interest rate and to repay the City of Pleasanton. The amount of the contingent liability outstanding at June 30, 2010, was $4,691,914 which is net of the $58,825 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. Interest accrues on the reimbursement at 7.48 percent per year. The advance as of June 30, 2009, was $183,423. During the year 2009-2010 unpaid interest incurred was added to the balance owed in the amount of $3,162. The advance was paid off on July 1, 2009. The reimbursement was 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 was 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. 74 ~ ~ ~ ~ Z ~~ ' City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 ' 13. COMMITMENT AND CONTINGENT LIABILITIES, Continued ' D. BART Agreement, Continued 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. LonQ Term Advance ~ BART's long term advance to the City, including accrued interest as of June 30, 2009 was $2,485,522 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 2009-2010 interest incurred was added to the balance owed in the amount of $762. On July 1, 2009 the advance was paid off. The repayments of principal and interest on BART's advance were made from 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 accounting for the amount due was 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 accrues at a rate based on the Alameda County Treasurers return on investments. As of June 30, 2010, the balance was $2,295,491, which includes accrued interest of $18,742 ' at 0.72% for the current year. The advance is to be repaid from developer fees, charges, and other non- tax revenues from the benefiting areas and has no specific due date. The City's General Fund is not 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, 2010 was $92,243,846. For the current year, additions to the credits amounted to $108, 491 and credits used and transferred amounted to $1,989,608. The accounting for the amounts due are not recorded as indebtedness since the payments t (the uses of credits) are contingent upon the collection of development fees from building growth that has not yet occurred. , 75 ~a~j~~~ ~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2010 14. DEFICIT FUND BALANCE The Fire Impact Fees Capital Project Fund and the Public Facility Impact Fees Capital Project Fund ended the fiscal year with deficit fund balances of $1,808,886 and $1,360,043, respectively. The General Fund has advanced money to cover current cash flow needs. Repayment of the advance is expected to come from future revenues to these funds. 15. PRIOR PERIOD ADJUSTIVIENTS There were no Prior Period Adjustments to be reparted. 16. TERMINATION BENEFITS There were no Termination Benefits to be recorded. 17. PROPOSITION 1A - STATE BORROWING OF PROPERTY TAX Under the provisions of Proposition lA and as part of the 2009-10 budget package passed by the California state legislature on July 28, 2009, the State of California borrowed 8% of the amount of property tax revenue, including those property taxes associated with the in-lieu motor vehicle license fee, the triple flip in lieu sales tax, and supplemental property tax, apportioned to cities, counties and special districts (excluding redevelopment agencies). The state is required to repay this borrowing plus interest by June 30, 2013. After repayment of this initial borrowing, the California legislature may consider only one additional borrowing within a ten-year period. The amount of this borrowing pertaining to the City of Dublin was $2,377,598. Authorized with the 2009-10 State budget package, the Proposition lA Securitization Program was instituted by the California Statewide Communities Development Authority ("California Communities"), a joint powers authority sponsored by the California State Association of Counties and the League of California Cities, to enable local governments to sell their Proposition lA receivables to California Communities. Under the Securitization Program, California Communities simultaneously purchased the Proposition lA receivables and issued bonds ("Prop lA Bonds") to provide local agencies with cash proceeds in two equal installments, on January 15, 2010 and May 3, 2010. The purchase price paid to the local agencies equaled 100% of the amount of the property tax reduction. All transaction costs of issuance and interest were paid by the State of California. Participating local agencies have no obligation on the bonds and no credit exposure to the State. The City participated in the securitization program and accordingly property taxes have been recorded in the same manner as if the State had not exercised its rights under Proposition lA. The receivable sale proceeds were equal to the book value and, as a result, no gain or loss was recorded. On October 20, 2009 the City Council adopted a resolution authoring participation in the California Communities financing program. The City received payments of $1,188,799 on January 15, 2010 and on May 3, 2010. 76 1 ~1~~ ZZZ- ~ RE UIRED Q ~ SUPPLEMENTARY INFORMATION i ~~ City of Dublin Required Supplementary Information For the year ended June 30, 2010 ~ ~ ~ ~~ ~ ~ 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, provided that the transfer is within the same department and fund. 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. Also, the City Manager can transfer from the Contingent Reserve to address General Fund utility expenditures which exceed the budget. Expenditures may not exceed budgeted appropriations by fund at the departmental level, without City Council approval. - Farmal 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 operating budget appropriations lapse at the end of the fiscal year, and the City Council may approve a Budget Change reflecting carry-over items. - As part of the annual Budget adoption the City Council authorizes Staff to carry-over unexpended capital project appropriations, for those projects where work and expenditures will continue in the subsequent year. 78 ~~~ ~~~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Required Supplementary Information, Continued For the year ended June 30, 2010 General Fund Variance with Final Budget - Budget Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Property taxes $ 21,467,750 $ 21,467,750 $ 22,141,003 $ 673,253 ' Sales tax 10,652,100 10,652,100 12,183,268 1,531,168 Other taxes 3,072,000 2,926,000 3,201,220 275,220 Intergovernmental 957,87Q 1,152,200 520,719 (631,481) ~ Licenses and permits 1,625,211 1,639,160 2,260,364 621,204 Charges for service 4,742,524 4,645,615 5,327,968 682,353 Interest 1,236,956 1,236,956 759,469 (477,48'~ Use of property 321,751 351,751 379,645 27,894 ' Fines and forfeitures 140,000 140,000 144,593 4,593 Other revenue 757,481 791,481 1,647,866 856,385 ' Total revenues 44,973,643 45,003,013 48,566,115 3,563,102 EXPENDITURES: Current: ' General government 5,879,412 6,315,552 8,872,290 (2,556,738) Public safety 24,742,786 24,223,634 22,998,116 1,225,518 Highways and streets 1,877,783 1,932,837 1,791,084 141,753 ' Health and welfare 57,925 84,180 71,680 12,500 Culture and leisure 7,634,334 7,729,118 7,266,830 462,288 Community development 4,875,843 5,446,310 5,276,269 170,041 ' Total expenditures 45,068,083 45,731,631 46,276,269 (544,638) REVENUES OVER (UNDER) EXPENDITURES (94,440) (728,618) 2,289,846 3,018,464 ' OTHER FINANCING SOURCES (USES): Transfer in - - 28,648 28,648 ' Transfer out (4,748,943) (6,192,757) (3,429,024) 2,763,733 Total other financing sources (uses) (4,748,943) (6,192,75~ (3,400,376) 2,792,381 , NET CHANGE IN FUND BALANCES $ (4,843,383) $ (6,921,375) (1,110,530) $ 5,810,845 FUND BALANCES: ' Beginning of year 62,123,358 End of year ' $ 61,012,828 79 ~ ~~ ~~ ' City of l~ublin ' Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Required Supplementary Information, Continued For the year ended June 30, 2010 ' Affordable Housing Special Revenue Fund REVENUES: Interest Loan Repayment Charges for services Developer fees Total revenues EXPENDITURES: Current: General Government Health and welfare Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Total financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with ' Final Budget - Budgeted Amounts Actual Positive Origina] Final Amounts ' (Negative) $ 237,397 $ 237,397 $ 312,348 $ 74,951 ' - - 1,111,768 1,111,768 40,125 40,125 22,416 (17,709) 184,225 184,225 - (184,225) ~ 461,747 461,747 1,446,532 984,785 51,250 113,500 85,455 1 28,045 3,807,296 4,114,513 1,432,282 t 2,682,231 3,858,546 4,228,013 1,517,737 2,710,276 (3,396,799) (3,766,266) (71,205) 3,695,061 , - - 6,596 6,596 ' - - 6,596 6,596 $ (3,396,799) $ (3,766,266) (64,609) $ 3,701,657 , 12,903,285 ' $ 12,838,676 ' ' ' 80 ' 1 ' ' ' ' ' ' ' ' ' 1 ' ' ' ' ' ' 1 ' ' ' ~~ ~~ ~~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Required Supplementary Information, Continued For the year ended June 30, 2010 Parks Capital Project Fund Budgeted Amounts Original Final REVENUES: Total revenues EXPENDITURES: Capital outlay: Parks Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfersin Total financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year $ Variance with Final Budget - Actual Positive Amounts (Negative) _ $ - 12,743,393 13,479,777 10,706,350 2,773,427 12,743,393 13,479,777 _ 10,706,350 2,773,427 (12,743,393) (13,479,77~ (10,706,350) 2,773,427 12,743,393 13,479,777 10,706,350 (2,773,427) 12,743,393 13,479,777 10,706,350 (2,773,42~ $ - $ - - $ - W - 81 ~~~z ~~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Required Supplementary Information, Continued For the year ended June 30, 2010 Streets Capital Project Fund REVENUES: Total revenues EXPENDITURES: Capital outlay: Streets Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Total financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Budgeted Amounts Original Final - $ - $ 20,639,642 20,641,309 20,639,642 20,641,309 (20,639,642) (20,641,309) 20,639,642 20,641,309 13,771,481 (6,869,828) 20,639,642 20,641,309 13,771,481 (6,869,828) $ - $ - 9,314 $ 9,314 W l~J1Y Variance with Final Budget - Actual Positive Amounts (Negative) - $ - 13,762,167 6,879,142 13,762,167 6,879,142 (13,762,167) 6,879,142 82 , City of Dublin ~~I ~ ~ ~'~' , Required Supplementary Information, Continued For the year ended June 30, 2010 ' Schedule of Funding in Progress , Miscellaneous Plan of the California Public Employee Retirement System The City contributes to the California Public Employee's Retirement System (Ca1PERS), as an agent ' multiple - employer public employee defined benefit pension plan. As part of the actuarial valuation date of June 30, 2003, the City's miscellaneous plan became part of a CaIPERS 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. Information on the funding schedule for the pool may be obtained with Ca1PERS. , Schedule of Fundin ig n Progress Other Post Employment Benefit (OPEB) ' The City contributes to the California Public Employee's Retirement System became part of a Ca1PERS 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 ' Actuarial Accrued Unfunded UAAL as a Actuarial Liability (Overfunded) Percentage of 1 Actuarial Valuation Value of Assets (AAL) - Eniry Age AAL (UAAL) Funded Ratio Covered Payroll Covered Payroll Date (A) (B) (B-A) (A/B) (C~ ((B-A)/C~ 6/30/2004 - 4,973,780 4,973,780 0.0% 6,320,280 78.7% ' 6/30/2007 5,694,000 6,159,000 465,000 92.5% 6,697,747 6.9% 6/30/2009 5,326,000 6,990,000 1,664,000 76.2% 7,618,000 21.8% ' ' , ' , , ' 83 ~oo.~ ~~~ ~ This page intentionally left blank. ' J~~ ' , ' ~ 84 , ' lol D~, ~~ ' SUPPLEMENTARY INFORMATION r ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ r t ~ ~ 85 ~~oZ ~ ~~ ~ ~ 1 This page intentionally left blank. ' , 1 ~ ' 86 , , 1~3~ ~~~. GENERAL FUND , The General Fund is used to account for all financial resources except those required to be accounted for in another fund. ' , ' ' ' ' ' ' ' ' ' ' ' 8~ ~o~ ~ a.~~- City of Dublin Schedule of Budget Versus Actual Revenues by Sources General Fund For the year ended June 30, 2010 Property Taxes: Current year secured Current year unsecured Supplemental property tax Prior year secured Prior year unsecured Property tax penalties In lieu property tax Housing Authority Pilot tax Sub-total Taxes Other Than Property: Sales & use tax In lieu sales tax Real property transfer tax Hotel transient occupancy tax Franchise taxes Sub-total License and Permits: Building permits Animal licenses Planning permits Encroachment permits Construction and demolition permits Grading permits Police permits Business license Fire permits Sub-total Fines and Forfeitures: Parking fines Business license penalties Other court fines Other fines & penalties Sub-total Revenue From Use of Money and Property: Interest Interest designated Change in Fair Market Value of Investments Rent & Concession: Field rentals Pool Picnic area Heritage Center Facility rentals Dublin Square Property Rental Sub-total Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 15,840,000 $ 15,840,000 $ 16,315,061 $ 475,061 950,000 950,000 1,087,500 137,500 505,000 505,000 266,295 (238,705) 600,000 600,000 800,661 200,661 14,550 14,550 3,869 (10,681) 195,000 195,000 248,021 53,021 3,360,000 3,360,000 3,401,946 41,946 3,200 3,200 17,650 14,450 21,467,750 21,467,750 22,141,003 673,253 7,959,600 7,959,600 9,137,451 1,177,851 2,692,500 2,692,500 3,045,817 353,317 282,000 282,000 372,646 90,646 575,000 484,000 557,000 73,000 2,215,000 2,160,000 2,271,574 111,574 13,724,100 13,578,100 15,384,488 1,806,388 1,319,448 1,229,448 1,882,271 652,823 4,000 4,000 4,499 499 - 40,000 37,468 (2,532) 36,770 76,770 50,960 (25,810) 59,828 59,828 58,602 (1,226) - - 2,504 2,504 - 23,949 23,665 (284) 139,000 139,000 136,004 (2,996) 66,165 66,165 64,391 (1,774) 1,625,211 1,639,160 2,260,364 621,204 85,000 85,000 76,538 (8,462) - 4,500 3,450 (1,050) 50,000 50,000 64,275 14,275 5,000 500 330 (170) 140,000 140,000 144,593 4,593 1,236,956 1,236,956 1,531,865 294,909 - - 45,097 45,097 - - (817,493) (817,493) 90,745 60,745 59,679 (1,066) 24,125 - 6,800 6,800 - 10,000 12,816 2,816 3,100 3,100 8,696 5,596 161,781 235,906 249,654 13,748 42,000 42,000 42,000 - 1,558,707 1,588,707 1,139,114 (449,593) (Continued) 88 , , ~ , ' 1 , , ' ' 1 , ' 1 ' ' ' ' ' IO~~ ~ ~.~ City of Dublin Schedule of Budget Versus Actual Revenues by Sources General Fund, Continued For the year ended June 30, 2010 Intergovernmental Revenues: Motor Vehicle In Lieu Homeowner's property tax relief Mandated Costs Federal grant Other state grants Sub-total Charges for Services: Zoning & subdivision fees Plan check & inspection fees Sale of maps and documents Special police services Fire plan check and inspection fees Fire services Waste management admin fees Cemetery Heritage Center Cultural arts Special events Recreation instruction Preschool Teens Building use insurance Senior Program Sports Program Family Program Aquatics Zone 7 drainage fees Local share permit surcharge - SMIP Engineering plan checking Green Building fees Annexation Cable support fees Sub-total Other Revenues: Contributions Miscellaneous Reimbursement - general Reimbursement - public damage Reimbursement - Community Benefit Assessment Sub-total Total revenues by sources Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 110,000 $ 110,000 $ 141,221 $ 31,221 187,000 187,000 179,728 (7,272) - - 12,511 12,511 - 200,000 180,647 (19,353) 660,870 655,200 6,612 (648,588) 957,870 1,152,200 520,719 (631,481) 875,273 1,125,273 1,548,854 423,581 1,046,492 - 1,119 1,119 5,000 5,000 3,438 (1,562) 70,500 792,091 793,786 1,695 - 61,725 101,114 39,389 861,725 - 4,280 4,280 148,000 139,500 148,653 9,153 4,695 4,695 - (4,695) 6,270 6,270 6,173 (9~ 129,100 129,100 128,436 (664) 103,770 103,770 139,126 35,356 142,305 142,305 169,767 27,462 288,920 388,920 375,451 (13,469) 10,510 10,510 5,119 (5,391) 4,094 4,094 10,976 6,882 98,530 98,530 102,939 4,409 305,750 355,750 375,759 20,009 360,080 320,080 285,857 (34,223) 204,894 174,894 164,621 (10,273) 2,016 2,016 4,899 2,883 - - 1,112 1,112 - 706,492 802,452 95,960 600 600 609 9 - - 73,826 73,826 74,000 74,000 79,602 5,602 4,742,524 4,645,615 5,327,968 682,353 74,850 108,850 61,526 (47,324) 28,930 28,930 78,149 49,219 447,640 447,640 742,768 295,128 15,561 15,561 28,511 12,950 190,500 190,500 736,912 546,412 $ 44,973,643 $ 45,003,013 $ 48,566,115 $ 3,563,102 (Concluded) 89 ~~~-~ ~2 ~ City of Dublin Schedule of Budget Versus Actual Departmental Expenditures General Fund For the year ended june 30, 2010 General Government: City Council City Manager Election Central services City Attorney Administrative services Building management Non-departmental Sub-total Public Safety: Police Fire services Disaster preparedness Crossing guards Animal control Traffic signals and street lighting Sub-total Highways and Streets: Pubiic works administration Street maintenance Street landscape maintenance Sub-total Health and Welfare: Child care Environmental programs Socialservices Sub-total Culture and Leisure: Community cable television Library services Heritage and Culture Arts Park maintenance Parks and community services Parks and facilities management Sub-total Community Development: Development services Engineering Economic development Sub-total Total expenditures Variance with Final Budget - Budgeted Amounts Actual Positive Original Finai Amounts (Negative) $ 347,643 $ 428,043 $ 353,408 $ 74,635 1,113,464 1,118,464 1,098,683 19,781 3,620 3,620 1,945 1,675 1,029,072 1,260,572 1,187,361 73,211 556,567 750,567 727,015 23,552 1,892,302 1,904,702 1,785,564 116,138 750,103 750,103 703,853 46,250 186,641 99,481 3,011,461 (2,911,980) 5,879,412 6,315,552 8,872,290 (2,556,738) 13,763,076 13,240,191 12,281,022 959,169 10,362,464 10,366,197 10,203, 635 162,562 126,389 126,389 107,025 19,364 100,830 100,830 100,659 171 375,620 375,620 293,357 82,263 14,407 14,407 12,418 1,989 24,742,786 24,223,634 22,998,116 1,225,518 906,820 906,820 784,658 122,162 247,157 152,148 143,562 8,586 723,806 873,869 862,864 11,005 1,877,783 1,932,837 1,791,084 141,753 18,500 18,500 18,500 - - 26,255 13,755 12,500 39,425 39,425 39,425 - 57,925 84,180 71,680 12,500 81,645 83,659 83,659 - 820,311 820,311 815,019 5,292 486,405 847,602 768,932 78,670 1,936,552 2,023,422 1,753,494 269,928 4,053,696 3,698,899 3,625,582 73,317 255,725 255,225 220,144 35,081 7,634,334 7,729,118 7,266,830 462,288 $ 3,199,892 $ 3,688,468 $ 3,575,840 $ 109,628 1,325,451 1,403,342 1,397,678 5,664 350,500 354,500 299,751 54,749 4,875,843 5,446,310 5,276,269 170,041 ~ 45,u6t~,utS3 $ 45,731,631 $ 46,276,269 $ (544,638) 90 ' , ' ' ' ' 1 ' ' ' ' ' 1 ' 1 1 ' 1 ' ~fl1~ ~~~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General Improvements Capital Projects Fund For the year ended June 30, 2010 REVENUES: Total revenues EXPENDITURES: Capital outlay: General improvements Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Total financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) 1,887,725 2,831,010 1,887,725 2,831,010 (1,887,725) (2,831,010) 742,754 2,088,256 742,754 2,085,256 . (742,754) 2,088,256 1,887,725 2,831,010 742,754 (2,088,256) 1,887,725 2,831,010 742,754 (2,088,256) $ - $ - - $ - 91 cc~~ ~ ~~~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Improvements Capital Project Fund For the year ended June 30, 2010 Budgeted Amounts Original Final REVENUES: Total revenues EXPENDITURES: Capital outlay: Community improvements Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Total financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year $ - $ - $ Variance with Final Budget - Actual Positive Amounts (Negative) - $ - 214,228 249,741 82,333 167,408 214,228 249,741 82,333 167,408 (214,228) (249,741) (82,333) 167,408 214,228 249,741 214,228 249,741 $ - $ - 82,333 (167,408) 82,333 (167,408) - $ - ~ - 92 ' 1 1 ' 1 1 ' ' 1 ' ' ~ 1 ' ~ ' 1 t , I~a~ ~~~ City of Dublin ~ Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Facilties Impact Fees Capital Project Fund For the year ended June 30, 2010 REVENUES: Interest Developer fees Otherrevenue Total revenues EXPENDITURES: Current: Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year 93 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 49,093 $ 49,093 $ 15,012 $ (34,081) 6,127,426 1,517,976 2,837,617 1,319,641 - - 2,882 2,882 6,176,519 1,567,069 2,855,511 1,288,442 6,176,519 1,567,069 2,855,511 1,288,442 955,434 (8,421,665) (8,967,109) (8,011,675) $ (2,245,146) $ (7,400,040) (5,156,164) $ 2,243,876 3,796,121 ~-,_ _ _,.. _.., I ~ o .a~2~`~ City of Y~ublin Schedule of Ilevenues, Expenditures and Changes in Fund Balanees - Budget and Actual Fire Impact Fees Capital Project Fund ~or the year ended June 30, 2010 REVENUES: Developer fees Total revenues EXPENDITURES: Current: Public safety Total expenditures REVENUES OVER (UNDER) EXPENDITURES Net change in fund balance FUND BALANCE: Beginning of year End of year Budgeted Amounts Original Final 227,546 227,546 227,546 227,546 $ 227,546 $ 227,546 Variance with Final Budget - Actual Positive Amounts (Negative) 74,540 $ (153,006) 42,090 (42,090) 32,450 (195,096) 32,450 $ (195,096) (1,841,336) $ (1,808,886) 94 1 ~ ~ ' ' 1 ~ ~ ~ ~ ' ' t ' ' ~ ' ~ , . I I l p~ Z. :~ ~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Traffic Impact Fees Capital Project Fund For the year ended June 30, 2010 REVENUES: Interest Developer fees Other revenue Total revenues EXPENDITURES: Current: Highways and streets Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total financing sources (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 5,322 $ 1,229,477 1,234,799 2,050 2,050 1,232,749 5,322 $ 205,878 $ 200,556 967,047 1,473,723 506,676 46,408 34,660 (11,748) 1,018,777 1,714,261 695,484 48,458 970,319 495,282 (446,824) 1,218,979 248,660 (12,598,656) (11,761,70'~ (6,848,129) 4,913,578 $ (11,365,90'~ $ (10,791,388) 95 ~~ z ~~ . , ~ (5,629,150) $ 5,162,238 11,892,035 1(Z ~~~' ~ ~ This page intentionally left blank. ` ' ' ~ ~ ~ 96 ' 1 i-3.~2~~ ~ NON-MAJOR GOVERNMENTAL FUNDS ~ , Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. ~ PUBLIC SAFETY: ' Special Criminal Activity Fund - Established to ac~ount for receipt of funds derived from asset forfeitures. Vehicle Abatement Fund - Established to account for the use of funds received from vehicle registration of ' Dublin residents for the towing of abandoned vehicles in city limits. Supplemental Law Enforcement (SLES/COPS) - Established to account for police expenditures funded by a ~ State grant. Local Law Enforcement Block Grant - Established to account for police expenditures funded by a Federal ~ grant. 1 Traffic Safety Fund - Established to account for the receipt of traffic fines and traffic safety expenditures. Federal Asset Seizure Fund - Established to account for the receipt of the Federal seizure funds EMS Fund - Established to account for excise taxes received to fund the costs of providing Emergency ' Medical Services. Enforcement Grant Fund - Established to account for miscellaneous grants received for Public Safety related ~ expenditures not reported in the above funds. TRANSPORTATION: ~ State Gas Tax Fund - Established to account for receipt of state gasoline taxes and ex enditures. p ' SAFETEA-LU Fund - Established to account for the revenue received from the U.S. Department of Transportation under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legal for Users , fund. Measure B Sales Tax Fund - Local Streets - Established to account for an Alameda County voter approved ~ increase in sales tax used for improvements on streets and roads. Measure B Sales Tax Fund - Bike and Pedestrian - Established to account for an Alameda County voter ~ approved increase in sales tax used for bike and pedestrian related projects. ' 97 ~i~~~~~ NOI~T-MAJOIZ GOVERNM]ENTAL FUNDS TRANSPORTATION, Continued: Congestion Management Agenry Facnr~ - Established to account for funds received from the Alameda County Congestion Management Agency. Traffic Congestion Relief Fund - Established to account for traffic congestion relief expenditures funded by a State grant. ENVIRONMENTAL: 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. American Recovery and Reznvestment Act Fz~nd - Established to account for the use of funds received from the Federal governments related to environmental activities. Storm Water Management Fund - Established to account for the funds received from the State and designated specifically for the use of storm water related activities. Box Culvert Fund - Established to account for the funds designated for the maintenance and repairs of box culvert in the East Dublin area. Dublirr/Dougherty Storm Water Management Fund - Established to account for funds designated for the management of the Dublin/Dougherty area storm water units. Village Parkway Storm Water Management Fund - Established to account for funds designated for the management of the Village Parkway area storm water units. PARKS, CULTURAL, AND ARTS: East Bay Regional Park District - Establish to account for the funds received from the East Bay Regional Park District from the Measure WW - Extend Existing East Bay Regional Park District Bond With No Increase In Tax Rate approved by voters on November 4, 2008. 98 ~ ~~~ a z~ ~ NON-MAJOR GOVERNMENTAL FUNDS ~ PARKS, CULTURAL, AND ARTS, Continued: Public Art Fund - Establish to account for the 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 of Dublin. HEALTH AND WELFARE: Community Development Block Grant (CDBG) Fund - Used to account for grants and expenditures related to Community Development Block Grants received. Noise Mitigation Fund - Establish to account for the fees received from developers of properties, which can only be used for the noise mitigation measures. MAINTENANCE DISTRICTS: Established to account for revenue and related expenditures of lighting and landscape districts. 99 City of Dublin ~ ~ ~ ~ ~ ~~ Combining Balance Sheet Non-Major Governmental Funds June 30, 2010 Special Revenue Funds Special Supplemental Local Law Giminal Vehicle Law Enforcement Activity Abatement Enforcement B1ock Grant Traffic Safety ASSETS Cash and investments $ 82,053 $ 186,344 $ 27,720 $ 8,630 $ 85,812 Accounts receivable - - 8,377 - 802 Total assets $ 82,053 $ 186,344 $ 36,097 $ 8,630 $ 86,614 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 225 $ 36,097 $ - $ 47,816 Due to other funds - - - - - TotalliabiliHes - 225 36,097 - 47,816 Fund Balances: Reserved for: Public safety programs 82,053 186,119 - 8,630 38,798 Street maintenance and construction - - - - - Health and welfare programs - - - - - Recycling programs - - - - - Capital improvement projects - - - - - Total fund balances 82,053 186,119 - 8,630 38,798 Total liabilities and fund balances $ 82,053 $ 186,344 $ 36,097 $ 8,630 $ 86,614 100 , ~ ~ ~ I , ~ ~ ' ~ l~-t~ zzz. Special Revenue Funds Emergency Measure B Measure B Congestion Federal Asset Medical Enforcement Sales Tax Sales Tax Management Seizure Fund Services Grants State Gas Tax SAFETEA-LU Local Streets Bike/Pedestrian Agency $ 4,504 $ 51,443 $ - $ 1,318,454 $ 91,466 $ 245,164 $ 482,713 $ - - 44,136 11,722 - 1,120,254 411,185 16,682 289,000 $ 4,504 $ 95,579 $ 11,722 $ 1,318,454 $ 1,211,720 $ 656,349 $ 499,395 $ 289,000 $ - $ 86,226 $ 3,212 $ 60,122 $ - $ - $ - $ - - - 8,510 - 1,211,720 - - 289,000 - 86,226 11,722 60,122 1,211,720 - - " 289,000 4,504 9,353 - - - - - _ - - - 1,258,332 - 656,349 - - - - - - - - 499,395 - 4,504 9,353 - 1,258,332 - 656,349 499,395 - $ 4,504 $ 95,579 $ 11,722 $ 1,318,454 .$ 1,211,720 $ 656,349 $ 499,395 $ 289,000 (Continued) 101 ~~`Z~L~ ~a.~v City of Dublin Combining Balance Sheet Non-Major Governmental Funds, Continued june 30, 2010 Special Revenue Funds (TCRF) Traffic American Congestion Measure D Garbage Local Recovery & Relief Recycling Service Recycling ReInvestment ASSETS Cash and investments $ 323,380 $ 202,676 $ 38,791 $ 440,949 $ - Accounts receivable 122,263 55,053 18,620 - 4,939 Total assets $ 445,643 $ 257,729 $ 57,411 $ 440,949 $ 4,939 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 5,930 $ - $ (45) $ - Due to other funds - - - - 4,939 Totalliabilities - 5,930 - (45) 4,939 Fund Balances: Reserved for: Public safety programs - - - - - Street maintenance and construction 445,643 - - - - Health and welfare programs - - 57,411 - - Recycling programs - 251,799 - 440,994 - Capital improvement projects - - - - - Total fund balances 445,643 251,799 57,411 440,994 - TotalliabiliHes and fund balances $ 445,643 $ 257,729 $ 57,411 $ 440,949 $ 4,939 102 ~ ' , , ' ~ ~ ~ ~ ~ ~ ' ' ~ ~ ~ , ~ , I l°t ~ 2 ~~° , Special Revenue Funds Storm Dublin/ Village East Bay Noise Community Water pougherty Parkway Regional Public Art Mitigation Development Management Box Culvert Storm Water Storm Water Park District Fund Fund Block Grant $ 183,685 $ 343,882 $ 106,034 $ 80,160 $ - $ 375,002 $ 61,662 $ - - - - - 306,536 - - 51,718 $ 183,685 $ 343,882 $ 106,034 $ 80,160 $ 306,536 $ 375,002 $ 61,662 $ 51,718 $ - $ - $ - $ - $ - $ - $ - $ 278 - - - - 306,536 - - 51,440 - - - - 306,536 - - 51,718 183,685 343,882 106,034 80,160 - - - - - - - - - - 61,662 - - - - - - 375,002 - - 183,685 343,882 106,034 80,160 - 375,002 61,662 - $ 183,685 $ 343,882 $ 106,034 $ 80,160 $ 306,536 $ 375,002 $ 61,662 $ 51,718 (Continued) 103 City of Dublin Combining Balance Sheet Non-Major Governmental Funds, Continued June 30, 2010 ~ ~~~ ~ ~~ ' ~ Special Revenue Funds Maintenance Districts Total 1983-1 1983-2 1986-1 1997-1 1999-1 Non-Major Street Stagecoach Dougherty Santa Rita East Dublin Governmental Lighting Landscape Landscape Landscape Street Lightin€ Funds ASSETS Cash and investments $ 185,536 $ 38,366 $ 94,700 $ 220,875 $ 360,696 $ 5,640,697 Accounts receivable 3,348 312 299 331 1,755 2,467,332 Total assets $ 188,884 $ 38,678 $ 94,999 $ 221,206 $ 362,451 $ 8,108,029 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 37,211 $ 9,318 $ 9,288 $ 29,221 $ 17,476 $ 342,375 Due to other funds - - - - - 1,872,145 Totalliabilities 37,211 9,318 9,288 29,221 17,476 2,214,520 Fnnd Balances: Reserved for: Public safety programs - - - - - 329,457 Street maintenance and construction 151,673 29,360 85,711 191,985 344,975 3,877,789 Health and welfare programs - - - - - 119,073 Recycling programs - - - - - 692,793 Capital improvement projects - - - - - 874,397 Total fund balances 151,673 29,360 85,711 191,985 344,975 5,893,509 Total liabilities and fund balances $ 188,884 $ 38,678 $ 94,999 $ 221,206 $ 362,451 $ 8,108,029 (Concluded) 104 i2~~ ~.~~ ~ ~ , , , ~ ~ ~ ~ ~ ~ This page intentionally left blank. 105 ~ aa~j~~~ City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds For the year ended June 30, 2010 REVENUES: Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer Fees Otherrevenue Special assessments Total revenues EXPENDITURES: Current: Public safety Highways and streets Health and welfare Cultural and Leisure Community development Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfer in Transfer out Total other financing sources (uses) NET CHANGE IN FUND BALANCES FUND BALANCES: Beginning of year End of year Special Revenue Funds Special Supplemental Local Law Criminal Vehicle Law Enforcement Activity Abatement Enforcement Block Grant Traffic Safety $ - $ - $ - $ - $ - - 32,176 100,000 36,895 - 1,107 4,387 331 305 $ 2,501 - - - - 168,185 44,883 - - - 25,279 45,990 36,563 100,331 37,200 195,965 3,712 1,295 100,331 28,570 260,754 3,712 1,295 100,331 28,570 260,754 42,278 35,268 - 8,630 (64,789) - (16,421) - - _ - (16,421) - - _ 42,278 18,847 - 8,630 (64,789) 39,775 167,272 - - 103,587 $ 82,053 $ 186,119 $ - $ 8,630 $ 38,798 106 ~a3~ ~~~ Special Revenue Funds Federal Emergency Measure B Measure B Congestion Asset Medical Enforcement Sales Tax Bike and Management Seizure Services Grants State Gas Tax SAFETEA-LU Transportation Pedestrian Agency $ - $ 145,206 $ - $ - $ - $ - $ - $ - - - - - - 294,477 104,134 - - 171,573 26,391 716,165 2,118,373 1,726,156 - 289,000 80 1,574 - 67,343 - 23,783 11,305 - 4,424 - - - - - - - 4,504 318,353 26,391 783,508 2,118,373 2,044,416 115,439 289,000 - 380,012 26,391 32,850 - - - - - - - 306,656 - - 8,770 - - - - 6,000 - - - - - 380,012 26,391 345,506 - - 8,770 - 4,504 (61,659) - 438,002 2,118,373 2,044,416 106,669 289,000 - - - (1,076,598) (2,118,373) (2,257,874) (52,060) (289,000) - - - (1,076,598) (2,118,373) (2,257,874) (52,060) (289,000) 4,504 (61,659) - (638,596) - (213,458) 54,609 - - 71,012 - 1,896,928 - 869,807 444,786 - $ 4,504 $ 9,353 $ - $ 1,258,332 $ - $ 656,349 $ 499,395 $ - (Continued) 107 ~a~~~~.~ City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds For the year ended June 30, 2010 Special Revenue Funds American Traffic Recovery Congestion Measure D Garbage Local and Relief Recycling Service Recycling Reinvestment REVENUES: Property taxes $ - $ - $ - $ - $ _ Taxes otherthan property - - - _ _ Intergovernmental 435,615 202,820 - - 4,939 Charges for service - - 1,750,019 - - Interest 10,028 4,982 3,276 11,960 - Fines and forfeitures - - - - - Developer Fees - - - - _ Other revenue - 12,365 - - - Special assessments - - - - _ Total revenues 445,643 220,167 1,753,295 11,960 4,939 EXPENDITURES: Current: Public safety - - - - _ Highways and streets - 2,394 - - 4,939 Health and welfare - 249,900 1,715,943 128,057 - Cultural and Leisure - - - - - Community development - - - - - Total expenditures - 252,294 1,715,943 128,057 4,939 REVENUESOVER (UNDER) EXPENDITURES 445,643 (32,127) 37,352 (116,097) - OTHER FINANCING SOURCES (USES): Transfer in - - - - - Transfer out (406,987) - - - - Total other financing sources (uses) (406,98'~ - - - - NET CHANGE IN FUND BALANCES 38,656 (32,127) 37,352 (116,097) - FUND BALANCES: Beginning of year 406,987 283,926 20,059 557,091 - End of year $ 445,643 $ 251,799 $ 57,411 $ 440,994 $ - 108 ~a~~ ~~-~ ~ Special Revenue Funds East Bay Storm Dublin/ Village Regional Public Community ~ Water Box Dougherty Parkway Park Art Noise Development Management Culvert Storm Water Storm Water District Fund Mitigation Block Grant ' $ $ $ $ $ _ $ _ $ _ $ _ _ 220,000 _ - _ - _ 80,000 1,171,624 - - 98,791 t 363 8,154 2,514 160 - 9,035 1,441 - ~ _ _ _ _ _ = 1,459 = 220,363 8,154 2,514 80,160 1,171,624 9,035 2,900 98,791 1 1 _ _ _ _ _ _ _ _ _ _ - - - - - 55,435 1 - - - - - 975 - - - - - - - 975 - 55,435 1 ~ 220,363 8,154 2,514 80,160 1,171,624 8,060 2,900 43,356 ~ - (36,678) 335,728 103,520 = - (1,171,624) - (8,837) _ - (43,356) (36,678) 335,728 103,520 - (1,171,624) (8,837) - (43,356) 1 183,685 343,882 106,034 80,160 - (77'~ 2,900 - ~ - - - - - 375,779 58,762 - $ 183,685 $ 343,882 $ 106,034 $ 80,160 $ - $ 375,002 $ 61,662 $ - ~ (Continued) ' ~ 109 iac~ ~ ~~~ City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds For the year ended June 30, 2010 Special Revenue Funds REVENUES: Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer Fees Otherrevenue Special assessments Total revenues EXPENDITURES: Current: Public safety Highways and streets Health and welfare Cultural and Leisure Community development Total expendilures REVENUESOVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transferin Transfer out Total other financing sources (uses) NET CHANGE IN FUND BALANCES FUND BALANCES: Beginning of year End of year Ma~ntenance IJistricts Total 1983-1 1983-2 1986-1 1997-1 1999-1 Non-Major Street Stagecoach Dougherty Santa Rita East Dublin Governmental Lighting Landscape Landscape Landscape StreetLighting Funds $ - $ - $ 4,316 403 12 - 265,236 68,301 269,564 68,704 - $ - $ 1,817 4,118 100,088 256,771 101,905 260,889 - $ 145,206 - 398,611 - 7,430,518 - 1,750,019 7,318 182,601 - 168,185 - 1,459 6,106 93,069 177,952 868,348 191,376 11,038,016 261,981 - - 61,737 4,508 3,043 266,489 64,780 3,075 3,924 91,404 223,045 3,037 3,209 94,441 226,254 7,464 34,635 105,058 1,200,954 - 698,945 - 2,149,335 - 975 4,145 23,942 109,203 4,074,151 82,173 6,963,865 - - - - - 439,248 (3,423) (885) (1,299) (2,93~ (2,229) (7,488,581) (3,423) (885) (1,299) (2,93~ (2,229) (7,049,333) (348) 3,039 6,165 31,698 79,944 (85,468) 152,021 26,321 79,546 160,287 265,031 5,978,977 $ 151,673 $ 29,360 $ 85,711 $ 191,985 $ 344,975 $ 5,893,509 (Concluded) 110 ~ r ~ ~ ' ' , ~ ~ ~ 1 ~ ' ~ ~ ~ ' ~ ~ I a--7 ~ ~ ~ ~ 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, 2010 REVENUES: Interest Otherrevenue Total revenues EXPENDITURES: Current: Public safety Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 710 $ 710 $ 1,107 $ 397 - - 44,883 44,883 710 710 45,990 45,280 5,250 5,250 3,712 1,538 5,250 5,250 3,712 1,538 $ (4,540) $ (4,540) 42,278 $ 46,818 39,775 w 111 - ~g~~~~ 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, 2010 REVENUES: Intergovernmental Interest Total revenues EXPENDITURES: Current: Public safety Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING (USES): Transfers out Total other financing Net change in fund balance FUND BALANCE: Beginning of year End of year Budgeted Amounts Original Final $ 29,000 $ 29,000 $ Variance with Final Budget - Actual Positive Amounts (Negative) 32,176 $ 3,176 1,975 1,975 1,295 680 1,975 1,975 1,295 680 30,816 30,816 35,268 4,452 - - (16,421) (16,421) - - (16,421) (16,421) $ 30,816 $ 30,816 18,847 $ (11,969) 167,272 112 ' , ~ 1 ' r ' , ~ 1 ' ' ' ' , ~ ~ ' ~ 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, 2010 REVENUES: Intergovernmental Interest Total revenues EXPENDITURES: Current: Public safety Total expenditures REVENUES OVER (UNDER) EXPENDITURES Net change in fund balance FUND BALANCE: Beginning of year End of year I 2~ ~ 2 Z-~ Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ ~oo,ooo $ ~oo.ooo $ ~oo.ooo $ _ 100,000 100,000 100,331 331 100,000 100,331 100,331 - 100,000 100,331 100,331 - - (331) - 331 $ - $ (331) - $ 331 113 13~~ ~~~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Local Law Enforcement Block Grant For the year ended June 30, 2010 REVENUES: Intergovernmental Interest Total revenues EXPENDITURES: Current: Public safety Total expenditures REVENUES OVER (UNDER) EXPENDITURES Net change in fund balance FUND BALANCE: Beginning of year End of year Budgeted Amounts Original Final $ 36,895 $ 36,895 $ Variance with Final Budget - ual Positive unts (Negative) 36,895 $ - 36,895 36,895 37,200 305 36,895 36,895 36,895 36,895 $ - $ - 28,570 8,325 8,630 (8,020) 8,630 $ 8,630 ~ 114 ~ ' ~ ~ ' ' ' ' , ~ ' ' ' ~ , , , 1 ' Budgeted Amounts Original Final _ $ 485 $ 485 $ 181,000 129,000 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, 2010 REVENUES: Interest Fines and forfeitures Otherrevenues Total revenues EXPENDITURES: Current: Public safety Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year 131~ zaz- Variance with Final Budget - tual Positive ~unts (Negative) 2,501 $ 2,016 168,185 39,185 195,965 66,480 289,802 289,802 260,754 29,048 289,802 289,802 260,754 29,048 $ (108,317) $ (160,31'~ (64,789) $ 95,528 103,587 $ 38,798 115 I 32~ Z~~ , City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Federal Asset Seizure Fund For the year ended June 30, 2010 Budgeted Amounts Actual Original Final Amounts REVENUES: Interest Otherrevenues Total revenues EXPENDITURES: Current: Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year $ - $ Variance with Final Budget - Positive (Negative) - $ 80 $ 80 ~ - 4,424 4,424 - 4,504 4,504 - ' - - - - , $ - $ - 4,504 $ 4,504 116 ~ ~ , , ' ~ ~ ~ , ' i 1 I~~~ zzz 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, 2010 Variance with Final Budget - Budgeted Amounts Actual Positive Original Fina] Amounts (Negative) REVENUES: Property taxes $ 138,150 $ 138,150 $ 145,206 $ 7,056 Intergovernmental 171,572 171,572 171,573 1 Interest 392 392 1,574 1,182 Total revenues 310,114 310,114 318,353 8,239 EXPENDITURES: Current: Public safety 384,337 384,337 380,012 4,325 Total expenditures 384,337 384,337 380,012 4,325 Net change in fund balance $ (74,223) $ (74,223) (61,659) $ 12,564 FUND BALANCE: Beginning of year 71,012 End of year $ 9,353 117 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Enforcement Grants For the year ended June 30, 2010 i~~~ ~~~ Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ - $ 35,280 $ 26,391 $ (8,889) Total revenues - 35,280 26,391 (8,889) EXPENDITURES: Current: Public safety - 35,280 26,391 8,889 Total expenditures - 35,280 26,391 8,889 Net change in fund balance $ - $ _ _ $ _ FUND BALANCE: Beginning of year _ End of year $ _ 118 ' ' , 1 ' ' ' ' ' ' ' ' ~ , , 1 ~ ' ' 135~ ~ZZ- City of Dublin ~ Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - State Gas Tax Special Revenue Fund For the year ended June 30, 2010 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 757,300 $ 757,300 $ 716,165 $ (41,135) Interest 31,663 31,663 67,343 35,680 Total revenues 788,963 788,963 783,508 (5,455) EXPENDITURES: Current: Public safety 44,652 49,652 32,850 16,802 Highways and streets 382,956 382,956 306,656 76,300 Community development 6,000 6,000 6,000 - Total expenditures 433,608 438,608 345,506 93,102 OTHER FINANCING (USES): Transfers out (944,848) (1,148,802) (1,076,598) 72,204 Total other financing (944,848) (1,148,802) (1,076,598) 72,204 Net change in fund balance $ (589,493) $ (798,44~ (638,596) $ 159,851 FUND BALANCE: Beginning of year 1,896,928 End of year $ 1,258,332 119 i3~~ ~~~ 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, 2010 , Variance with , Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) ' REVENUES: Intergovernmental $ 2,763,243 $ 2,188,659 $ 2,118,373 $ (70,286) ' Total revenues 2,763,243 2,188,659 2,118,373 (70,286) EXPENDITURES: , Current: _ _ _ _ Total expenditures _ _ _ _ , OTHER FINANCING (USES): Transfers out (2,763,243) (2,318,827) (2,118,373) 200,454 Total other financing (2,763,243) (2,318,82~ (2,118,373) 200,454 ' Net change in fund balance $ - $ (130,168) - $ 130,168 , FUND BALANCE: Beginning of year _ , End of year $ _ ' ' ' , , ' ' 120 , ' ' 1 1 ' ' ' 1 t ' , ~ 1 13~~ 2 ~~ 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, 2010 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Sales tax $ 339,633 $ 339,633 $ 294,477 $ (45,156) Interest 5,331 5,331 23,783 18,452 Intergovernmental 2,396,287 2,396,287 1,726,156 (670,131) Total revenues 2,741,251 2,741,251 2,044,416 (696,835) EXPENDITURES: Current: - - - - Total expenditures - - - - OTHER FINANCING (USES): Transfers out (2,757,237) (3,367,984) (2,257,874) 1,110,110 Total other financing (2,757,237) (3,367,984) (2,257,874) 1,110,110 Net change in fund balance $ (15,986) $ (626,733) (213,458) $ 413,275 FUND BALANCE: Beginning of year 869,807 End of year $ 656,349 121 i3~~Za~ r 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, 2010 Budgeted Amounts Original Final REVENUES: Sales tax Interest Total revenues EXPENDITURES: Capital Outlay Highways and streets Total expenditures $ 119,825 $ 119,825 $ 9,412 9,412 _ 13,568 13,568 13,568 13,568 OTHER FINANCING (USES): Transfers out Total other financing Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with , Final Budget - Actual Posirive ' Amounts (Negative) 104,134 $ (15,691) 11,305 , 1,893 115,439 (13,798) ' 8,770 4,798 , 8,770 4,798 ' (36,786) (89,796) (52,060) 37,736 ' (36,786) (89,796) (52,060) 37,736 $ 78,883 $ 25,873 54,609 $ 28,736 ' 444,786 ' $ 499,395 ~ ' ' ' ' ~ I22 , ' ' ~ ' ~ , , ' ' ~ 1 ' ' I ~~ zz~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Congestion Management Agency Fund For the year ended June 30, 2010 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 156,000 $ 156,000 $ 289,000 $ 133,000 Total revenues 156,000 156,000 289,000 133,000 EXPENDITURES: Current: - - - - Total expenditures - - - - OTHER FINANCING (USES): Transfers out (156,000) (289,000) (289,000) - Total other financing (156,000) (289,000) (289,000) - Net change in fund balance $ - $ (133,000) - $ 133,000 FUND BALANCE: Beginning of year - End of year $ - 123 ~ ~+o ~ ~z ~~~ 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, 2010 Budgeted Amounts Original Final REVENUES: Intergovernmental Interest Total revenues EXPENDITURES: Current: Total expenditures OTHER FINANCING (USES): $ 443,940 $ 443,940 $ 9,469 9,469 453,409 453,409 _ Transfers out Total other financing Net change in fund balance FUND BALANCE: Beginning of year End of year Actual Variance with - Final Budget - ~ Positive (Negative) 435,615 $ (8,325) ' 10,028 559 445,643 (7,766) ' - ~ - ' (404,425) (406,98~ (406,98~ $ 48,984 $ 46,422 38,656 $ (7,766) ' 406,987 ' $ 445,643 124 ~ ' ' ~ ' , ~ ' 1 a~ ~ ~ ' , ~ , l ~-F L ~ ~ ~z. 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, 2010 REVENUES: Intergovernmental Interest Otherrevenue Total revenues EXPENDITURES: Current: Highways and streets Health and welfare Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 214,687 $ 232,793 $ 202,820 $ (29,973) 44 44 4,982 4,938 3,000 3,000 12,365 9,365 217,731 235,837 220,167 (15,670) - 2,394 258,775 289,476 $ (41,044) $ (56,033) 125 2,394 - 252,294 39,576 (32,12'~ $ 23,906 283,926 ~~ ~~~~ ~~ 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, 2010 RE V ENUES: Charges for services Interest Total revenues EXPENDITURES: Current: Health and welfare Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 1,688,500 $ 1,708,500 $ 1,750,019 $ 41,519 - - 3,276 3,276 1,688,500 1,708,500 1,753,295 44,795 1,696,078 1,716,078 1,715,943 135 1,696,078 1,716,078 1,715,943 135 $ (7,578) $ (7,578) 37,352 $ 44,930 20,059 126 W , 1 ' ~ , 1 ' ' ~ , ' ' , i ~ 1 1 1 i I ~-I-3 ~ Z ~ ~° 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, 2010 REVENUES: Interest Total revenues EXPENDITURES: Current: Health and welfare Total expendiiures Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ i2,on $ i2,on $ 11,960 $ ~iiz~ 149,058 149,058 128,057 21,001 149,058 149,058 128,057 21,001 $ (136,987) $ (136,98~ (116,097) $ 20,889 557,091 12~ w City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - American Recovery & Re-Investment Act For the year ended June 30, 2010 REVENUES: Intergovernmental Total revenues EXPENDITURES: Current: Highways & streets Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year ~~~~~~~ 1 ~ , Variance with ~ Final Budget - Budgeted Amounts Actual Positive ' Original Final Amounts (Negative) $ _ $ 4,939 $ 4,939 $ - ~ - 4,939 - 4,939 $ - $ - 128 4,939 - , 4,939 - ~ 4,939 - - $ - ~ $ = r ' t ' t ~ ' ' ' i , ' ~ ' ' ~ , ' ~ ' ' ' 1 ~ ~ ~ ' ~ ' I 45 ~ ~ Z~ City of Dublin ~ ~ ~ Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Storm Water Management Fund For the year ended June 30, 2010 REVENUES: Intergovernmental Interest Total revenues EXPENDITURES: Current: Total expenditures OTHER FINANCING (USES): Transfers out Total other financing Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ - $ 220,000 $ 220,000 - - 363 363 (564,432) (564,432) (36,678) 527,754 (564,432) (564,432) (36,678) 527,754 $ - $ - 183,685 748,117 $ 183,685 129 1 ~ L~~~ "~`~ City of Dublin , Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Box Culvert For the year ended June 30, 2010 ~ Budgeted Amounts Actual Original Final Amounts REVENUES: Interest Total revenues EXPENDITURES: Current: Total expenditures OTHER FINANCING (USES): Transfers in Total other financing Net change in fund balance FUND BALANCE: Beginning of year End of year $ - $ - $ 8,154 - - 8,154 $ - $ - 130 Variance with , Final Budget - Positive , (Negative) $ 8,154 , 8,154 ~ _ ' 335,728 ' JJJ~/LO 335,728 343,882 343,882 , _ ' $ 343,882 , ' ~ , ~ ' ~ ~ i ~~ ~ ~~~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Dublin/Dougherty For the year ended June 30, 2010 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ - $ - $ 2,514 $ 2,514 Total revenues - - 2.514 2.514 EXPENDITURES: Current: Total expenditures OTHER FINANCING (USES): Transfers in Total other financing Net change in fund balance FUND BALANCE: Beginning of year End of year - - 103,520 103,520 - - 103,520 103,520 $ - $ - 106,034 106,034 131 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Village Parkway For the year ended June 30, 2010 i~~~~~~ Variance with Final Budget - ,. Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ - $ - $ 80,000 $ 80,000 Interest - - 160 160 Total revenues - - 80,160 80,160 EXPENDITURES: Current: - - - - Total expenditures - - - - Net change in fund balance $ - $ - 80,160 80,160 FUND BALANCE: Beginning of year - End of year $ 80,160 132 ' ~ ' ~ ~ ' ~ ~ ~ ' ' , r ~ ~ ~ ~ ~ ~ I ~~t a~ ~~~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - East Bay Regional Park District Special Revenue Fund For the year ended June 30, 2010 REVENUES: Intergovernmental Total revenues EXPENDITURES: Current: Culture & leisure Total expenditures OTHER FINANCING (USES): Transfers out Total other financing Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 2,145,118 $ 2,145,118 $ 1,171,624 $ (973,494) $ 2,145,118 $ 2,145,118 1,171,624 $ (973,494) (1,955,419) (1,921,619) (1,171,624) 749,995 $ 2,145,118 $ 2,145,118 - $ (2,145,118) y - 133 ~~~~ ~2~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Public Art Fund For the year ended June 30, 2010 Variance with Final Budget - Budgeted Amounts Actual Positive Origina] Final Amounts (Negative) REVENUES: Interest $ 6,782 $ 6,782 $ 9,035 $ 2,253 Total revenues 6,782 6,782 9,035 2,253 EXPENDITURES: Current: Culture & leisure 3,000 3,000 975 2,025 Total expenditures 3,000 3,000 975 2,025 OTHER FINANCING (USES): Transfers out (133,334) (136,058) (8,837) 127,221 Total other financing (uses) (133,334) (136,058) (8,837) 127,221 Net change in fund balance $ 3,782 $ 3,782 (77~ $ (4,559) FUND BALANCE: Beginning of year 375,779 End of year $ 375,002 134 ~ ~ ~ ~ ~ ~ r ' r ' , , , ~ , ~ ' ~ ~ I~I~ Z2~- City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Noise Mitigation Fund For the year ended June 30, 2010 REVENUES: Interest Developer fees Total revenues EXPENDITURES: Current: Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year Budgeted Amounts Actual Original Final Amounts $ - $ - $ 1,441 - 1,459 - - 2,900 $ - $ - 135 Variance with Final Budget - Positive (Negative) $ 1,441 1,459 2,900 2,900 $ 2,900 58,762 ~ s~~ ~~.~- 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, 2010 REVENUES: Intergovernmental Total revenues EXPENDITURES: Current: Health and welfare Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 66,308 $ 103,068 $ 98,791 $ (4,27'~ 66,308 103,068 98,791 (4,27~ 59,708 60,503 55,435 5,068 :J7,/VO OU~,7VJ 6,600 42,565 J:7,'3J:J J,VUb 43,356 791 - (36,760) (43,356) (6,596) - (36,760) (43,356) (6,596) $ 6,600 $ 5,805 - $ (5,805) .v - 136 ' ~ ~ ~ ~ r , , ' ' 1 ' ~ ' ' ' ~ r ~ City of Dublin ~ 5~'~ ~~'~ Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -1983-1 Street Lighting Special Revenue Fund For the year ended June 30, 2010 REVENUES: Interest Other revenue Special assessments Total revenues EXPENDITURES: Current: Public safety Community development Total expenditures OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Budgeted Amounts Original Final _ $ 2,602 $ 2,602 $ 2,500 2,500 262,810 262,810 Variance with Final Budget - Actual Posirive Amounts (Negative) 4,316 $ 1,714 12 (2,488) 269,564 1,652 270,646 270,646 261,981 8,665 274,916 275,156 266,489 8,667 - - (3,423) (3,423) - - (3,423) (3,423) $ (7,004) $ (7,244) (348) $ 6,896 152,021 137 i~~~~~~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -1983-2 Stagecoach Landscape Special Revenue Fund For the year ended June 30, 2010 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 451 $ 451 $ 403 $ (48) Special assessments 68,228 68,228 68,301 73 Total revenues 68,679 68,679 68,704 25 EXPENDITURES: Current: ~Iighways and streets 66,583 69,443 61,737 7,706 Community development 2,705 3,043 3,043 - Total expenditures 69,288 72,486 64,780 7,706 OTHER FINANCING (USES): Transfers out - - (885) (885) Total other financing (uses) - - (885) (885) Net change in fund balance $ (609) $ (3,50~ 3,039 $ 6,846 FUND BALANCE: Beginning of year 26,321 End of year $ 29,360 138 - 5~~ Z2a. City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -1986-1 Dougherty Landscape Special Revenue Fund For the year ended June 30, 2010 REVENUES: Interest Special assessments Total revenues EXPENDITURES: Current: Highways and streets Community development Total expenditures OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 1,115 $ 1,115 $ 1,817 $ 702 100,992 100,992 101,905 913 102,490 102,490 91,404 11,086 2,705 3,037 3,037 - 105,195 105,527 94,441 11,086 - - (1,299) (1,299) - - (1,299) (1,299) $ (4,203) $ (4,535) 6,165 $ 10,700 79,546 139 - ~ ~ ~ ~a~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -1997-1 Santa Rita Landscape Special Revenue Fund For the year ended June 30, 2010 REVENUES: Interest Special assessments Total revenues EXPENDITURES: Current: Highways and streets Community development Total expenditures OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Budgeted Amounts Original Final $ 2,046 $ 2,046 $ 251,187 251,187 Variance with Final Budget - tual Positive ounts (Negative) 4,118 $ 2,072 256,771 5,584 268,140 268,140 223,045 45,095 2,705 3,209 3,209 - 270,845 271,349 226,254 45,095 - - (2,937) (2,93~ - - (2,93~ (2,93'~ $ (17,612) $ (18,116) 31,698 $ 49,814 160,287 140 i~~~ ~~~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -1999-1 East Dublin Street Lighting Special Revenue Fund For the year ended June 30, 2010 REVENUES: Interest Otherrevenue Special assessments Total revenues EXPENDITURES: Current: Public Safety Community development Total expenditures OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund balance FUND BALANCE: Beginning of year End of year Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 5,018 $ 5,018 $ 7,318 $ 2,300 - - 6,106 6,106 172,766 172,766 177,952 5,186 177,784 177,784 191,376 13,592 96,352 96,352 105,058 (8,706) 3,750 4,145 4,145 - 100,102 100,447 109,203 (8,706) - - (2,229) (2,229) - - (2,229) (2,229) $ 77,682 $ 77,287 79,944 $ 2,657 265,031 $ 344,975 141 l ~~~ ~~~ ' This page intentionally left blank. 142 15~ 2~~ 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: Vehicles Replacement Fund - this fund is an interest bearing Internal Service Fund established to finance necessary vehicles replacements. Buildings Replacement Fund - this fund is an interest bearing Internal Service Fund established to finance future building development and construction expenditures. Vehicles Replacement Fund - this fund is an interest bearing Internal Service Fund established to finance necessary equipments replacements. Vehicles, Buildings, and Equipment Maintenance and Repair Fund - this fund is an interest bearing Internal Service Fund established to account for the on-going maintenance and repairs of vehicles, building, and equipments. Retiree Health Care Fund - this fund is an interest bearing Internal Service Fund established to account for the contribution made to the California Employers' Retiree Benefit Trust Fund for future retiree health care benefits. ' PERS Side Fund - this fund was established to account for the repayment to the general fund for the advance made in fiscal year 2007-2008 to pay CALPERS for the City's Side Fund obligation. The Side Fund was created in 2005 when CALPERS assigned agencies with less than 100 participants to a risk sharing ' pool. The City elected to pre-pay its obligation from the General Fund reserves and an internal service charge is made each year to repay the reserve. 143 ~~~ ~ ~~ City of Dublin ' Combining Statement of Net Assets Internal Service Funds June 30, 2010 , ASSETS Current assets: Cash and investments Receivables: Accounts Prepaid items Total current assets Noncurrent assets: OPEB Land Construction in progress Buildings and improvements Vehicles, machinery and equipment Less: accumulated depreciation Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts payable Due to other fund Total current liabilities Noncurrent liabilities: Advances from other funds Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets Unrestricted Total net assets Building, Vehicles Buildings Equipments Equip & ' Replacement Replacement Replacement Vehicles Retiree Fund Fund Fund Maint/Repair Health Care ' $ 2,822,935 $ 6,454,471 $ 2,011,410 $ 93,604 $ 236 , - - - - 294,567 - - 13,795 23,880 - ' 2,822,935 6,454,471 2,025,205 117,484 294,803 - - - - 764,343 ' - 10,774,792 - - - - 229,387 - - - - 62,081,624 - - , - 3,170,605 461,552 2,456,165 - - (2,140,913) (19,164,474) (2,170,882) - - , 1,029,692 54,382,881 285,283 - 764,343 3,852,627 60,837,352 2,310,488 117,484 1,059,146 ' - - - 27,498 ' - - - - 283,176 - - - 27,498 283,176 ' - - - - - ' - - - 27,498 283,176 1,029,692 54,382,881 285,283 - , - 2,822,935 6,454,471 2,025,205 89,986 775,970 $ 3,852,627 $ 60,837,352 $ 2,310,488 $ 89,986 ' $ 775,970 ' 144 ' ' ~~~~ ~~~ PERS Side Fund Total $ - $ 11,382,656 - 294,567 - 37,675 - 764,343 - 10,774,792 - 229,387 - 62,081,624 - 6,088,322 - (23,476,269) - 68,177,097 - 27,498 - 283,176 - 310,674 2,642,846 2,642,846 2,642,846 2,642,846 - 55,697,856 (2,642,846) 9,525,721 $ (2,642,846) $ 65,223,577 145 i ~ z~ z~~ City of Dublin ' Combining Statement of Revenues, Expenses and Changes in Net Assets Internal Service Funds For the year ended June 30, 2010 , OPERATING AEVENUES: Charges for services Otherrevenue Total operating revenues OPERATING EXPENSES: Supplies and services PERS retirement OPEB expenses Depreciation Total operaHng expenses OperaHng income (loss) NONOPERATING REVENUES: Interest income Contribution from General Fund Transfers Total nonoperating revenues NONOPERATING EXPENSES: Transfers Other Total nonoperating expenses Non operating income (loss) Contribution of capital assets Change in net assets NET ASSETS: Beginning of year End of year Building, Vehicles Buildings Equipments Equip & 1 Replacement Replacement Replacement Vehicles Retiree Fund Fund Fund Maint/Repair Health Care , 420,414 139,407 314,858 376,502 559,926 25,035 - - 20 302,179 ' 445,449 139,407 314,858 376,522 862,105 - - 80 284,916 ~ - - - - - 615,000 ' 204,563 2,306,546 244,382 - - 204,563 2,306,546 244,462 284,916 615,000 , 240,886 (2,167,139) 70,396 91,606 247,105 60,669 63,912 63,495 1,057 ' 2,356 - 3,000,000 - - - 659,198 1,373,104 - - , - 719,867 4,437,016 63,495 1,057 2,356 1 469,884 - 1,562,419 - 1,219 72,819 - - , 471,103 - 1,635,238 - - 248,764 4,437,016 (1,571,743) 1,057 2,356 ' - 86,023 - - - 489,650 2,355,900 (1,501,347) 92,663 249,461 ' 3,362,977 58,481,452 3,811,835 (2,67'~ t 526,509 3,852,627 60,837,352 2,310,488 59,986 775,970 ' 146 ~ , 1 ~ ~ ~ PERS Side Fund Total ' 302,649 2,113,756 ' - 327,234 302,649 2,440,990 t - 284,996 ~ - 615,000 - 2,755,491 ~ - 3,655,487 302,649 (1,214,497) , - 191,489 3,000,000 ~ = 2,032,302 - 5,223,791 ' - 2,032,303 ' - 74,038 - 2,106,341 ~ - 3,117,450 - 86,023 ' 302,649 1,988,976 ' (2,945,495) 63,234,601 (2,642,846) 65,223,577 ~ ' ' 1f~~~2~~ 147 City of Dublin Combining Statement of Cash Flows Internal Service Funds For the year ended June 30, 2010 i ~~~ -~~~ Building, Vehicles Buildings Equipments Equip & Replacement Replacement Replacement Vehicles Retiree Fund Fund Fund Maint/Repair Health Care CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from other funds $ 420,413 $ 139,407 $ 318,625 $ 376,502 $ 843,102 Payments to suppliers and service providers - - (25,669) (283,975) (862,828) Other 25,035 - - 20 7,612 Net cash provided (used) by operating activities 445,448 139,407 292,956 92,547 (12,114) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payments from other funds 189,314 4,373,104 (1,562,419) - - Net cash provided (used) for noncapital financing activities 189,314 4,373,104 (1,562,419) - - CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Capital assets (144,618) (115,798) - - Net cash provided (used) for capital and related financing activities (144,618) - (115,798) - - CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 60,669 63,913 63,495 1,057 2,356 Net cash provided (used) for investing activities 60,669 63,913 63,495 1,057 2,356 Netincrease(decrease)in cash and cash equivalents 550,813 4,576,424 (1,321,766) 93,604 (9,758) CASH AND EQUNALENTS: Beginning of year 2,272,122 1,878,047 3,333,176 - 9,994 End of year $ 2,822,935 $ 6,454,471 $ 2,011,410 $ 93,604 $ 236 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (loss) $ 240,886 $ (2,167,139) $ 70,396 $ 91,606 $ 247,105 Adjustments to reconcile operating income (loss) to cash flows from operating activities: Depreciation 204,563 2,306,546 244,382 - - Net effect of changes in: Accounts receivable - 3,765 Prepaid items - (13,131) (23,880) Accounts payable - - (12,45'~ 24,821 - OPEB Obligation - - - - (259,219) Net cash provided (used) by operating activiries $ 445,449 $ 139,407 $ 292,955 $ 92,547 $ (12,114) NONCASH CAPITAL AND ItELATED FINANCING TRANSACTIONS: Contribution of capital assets $ - $ 86,023 $ - $ - Total noncash capital and related financing transacrions $ - $ 86,023 $ - $ - $ - 148 ~ ~ ~ ~ ' ~ ~ ~ i ~ , ' ' , ~ ' ~ ' ~ I l~ ~ t~j ~ ~~ PERS Side Fund Total $ 302,649 $ 2,400,698 - (1,172,472) - 32,667 302,649 1,260,893 (302,649) 2,697,350 (302,649) 2,697,350 - (260,416) - (26Q416) - 191,490 - 191,490 - 3,889,317 - 7,493,339 $ - $ 11,382,656 $ 302,649 $ (1,214,497) - 2,755,491 3,765 (37,011) - 12,364 - (259,219) $ 302,649 $ 1,260,893 $ - $ 86,023 $ ~ tS6,U23 149 ~'~ ~ I t~ L~ ~ 2. ~ This page intentionally left blank. ~ 150 ~ ~ ~ ~D~ ~ `~ Z~- ,~ 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. ~ Geologic Hazard Abatement Districts Fund - Two districts were formed under provisions in the California , Public Resource Code, which establishes in section 25670 that a District is a politial subdivision of the State and is not an agency or instrumentality of a local agency. The City acts as a trustee of the funds collected and may contractually provide or arrange for services paid for by the District. Fiscal Year 2008-2009 was the first 1 year that tax roll assessments were levied by the Districts. Fallon Village Geologic Hazard Abatement District - This assessment district was established in 2007, in ~ accordance with a condition of approval for the Fallon Village development project. The District was formed to provide a mechanism for ongoing maintenance of open space areas within the development. The boundary of this assessment district encompasses approximately 175 acres of land, located generally east of I Fallon Road. Schaefer Ranch Geologic Hazard Abatement District - This assessment district was established in 2006, in ' accordance with a condition of approval for the Fallon Village development project. The District was formed to provide a mechanism for ongoing maintenance of open space areas within the development. The boundary of this assessment district encompasses approximately 500 acres of land, located at the westerly I boundery of the City limits north of Interstate 580, and south of the unincorporated area of Alameda county. ' 151 City of Dublin Statement of Changes in Net Assets Agency Fund For the fiscal year ended June 30, 2010 i ~g ~ ~~~ Balance Balance Dublin Boulevard Extension Assessment District July 1, 2009 Additions Deletions June 30, 2010 Assets: Cash and investments $ 195,227 $ 425,747 $ (405,646) $ 215,328 Restricted cash and investments 180,410 - (15,910) 164,500 Interest Receivable - - - _ Total assets $ 375,637 $ 425,747 $ (421,556) $ 379,828 Liabilities: Due to bondholders $ 375,637 $ 425,747 $ (421,556) $ 379,828 Totalliabilities $ 375,637 $ 425,747 $ (421,556) $ 379,828 Balance Balance Fallon Village Geological Hazardous Abatement District July 1, 2009 Additions Deletions June 30, 2010 Assets: Cash and investments 14,199 32,223 (3,200) 43,222 Total assets $ 14,199 $ 32,223 $ (3,200) $. 43,222 Liabilities: Due to trustee Total liabilities 14,199 32,223 (3,200) 43,222 $ 14,199 $ 32,223 $ (3,200) $ 43,222 Balance Balance Schaefer Ranch Geological Hazardous Abatement District July 1, 2009 Additions Deletions June 30, 2010 Assets: Cash and investments 11,467 103,036 (4,359) 110,144 Interest Receivable 281 889 (281) 889 Total assets $ 11,748 $ 103,925 $ (4,640) $ 111,033 Liabiliries: Due to trustee 11,748 103,925 (4,640) 111,033 Totalliabilities $ 11,748 $ 103,925 $ (4,640) $ 111,033 152 STATISTICAL SECTION (Unaudited) ' ~ ~~ ~ z~-~ 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's 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 I 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. I 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. ' ~ ~ 153 ~10~ ~~~ City of Dublin General Governmental Activities Tax Revenues by Source and Governmental Activities Tax Revenues by Source Last Ten Fiscal Years Fiscal Year Ended June 30 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Property Transient Property Sales Franchise Transfer Occupancy Tax Tax Tax Tax Tax Total $7,174,290 $13,204,429 $1,313,087 $575,282 $1,010,799 $23,277,887 8,885,812 13,093,676 1,385,816 434,832 810,220 $24,610,356 10,142,650 13,573,607 1,394,953 379,089 717,083 $26,207,382 11,422,308 14,297,705 1,505,435 571,361 664,309 $28,461,118 14,167,079 14,517,465 1,559,900 831,003 663,632 $31,739,079 16,891,670 14,807,059 1,789,356 690,404 727,612 $34,906,101 20,266,216 14,458,912 2,111,281 596,533 800,773 $38,233,715 22,229,039 14,684,091 2,221,930 493,175 789,396 $40,417,631 23,306,302 12,424,541 2,180,846 254,022 577,057 $38,742,768 22,286,209 12,581,879 2,271,574 372,646 557,000 $38,069,308 Data Source: City of Dublin Administrative Services Department Notes: The City experienced a dramatic decline in Transient Occupancy Taxes following the September 11, 2001 national tragedy and the economy down turn that occurred in the San Francisco Bay Area during 2001-2005. The City has experienced significant growth in other types of taxes due to significant residential and commercial growth that had occurred during 2006-2007, and 2007-2008. 154 i~~~ ~~~ ~ This page intentionally left blank. 155 City of Dublin Net Assets by Component Last Nine Fiscal Years (accrual basis of accounting) Fiscal Year 2002 2003 2004 2005 Primary government: Governmental activities: Invested in capital assets, net of related debt Restricted Unrestricted Total primary government $ 42,960,899 $ 43,339,073 I ~1 Z ~ ~~ ~ ~ ~ ' 2006 ~ ~, 61,016,642 $ 80,050,710 $ 383,667,187 $ 387,888,143 ~ 34,110,132 37,455,125 45,288,468 48,480,463 45,579,288 50,413,267 50,943,803 52,176,440 57,766,785 $ 131,879,260 $ 145,540,041 $ 168,449,638 $ 481,132,095 $ 494,135,391 ~ Data Source: City of Dublin Administrative Services Department , 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. ~ ~ ~ l ~ 1 ~ ' 1 1 156 ~ ' ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ I ~13 ~ ~ ~~ Fiscal Year 2007 2008 2009 2010 $ 399,631,407 $ 411,619,671 $ 423,474,384 $ 436,857,107 45,647,928 48,572,719 36,906,687 25,004,384 61,789,687 68,456,077 66,597,197 70,203,471 $ 507,069,022 $ 528,648,467 $ 526,978,268 $ 532,064,962 157 i1~~~~~ City of Dublin Changes in Net Assets Last Nine Fiscal Years (accrual basis of accounting) Fiscal Year Expenses: Governmental activities: General government Public safety Highways and streets Health and welfare Culture and leisure services Community development Total governmental activities Program revenues: Governmental activities: Charges for services: General government Public safety Highways and streets Health and welfare Culture and leisure services Community development Operating grants and contributions Capital grants and contributions Total governmental activities Net revenues (expenses): General revenues and other changes in net assets: Govemmental activities: Taxes: Property taxes Sales tax Other taxes Motor vehicle tax, unrestricted Investment income, unrestricted Other generalrevenues Total governmental activities Changes in net assets $ 4,658,653 $ 6,135,344 $ 6,288,645 $ 3,081,581 $ 4,940,586 12,449,573 14,026,216 17,135,716 19,047,262 20,314,535 5,277,778 15,187,872 939,260 19,810,590 13,894,865 1,193,542 1,349,228 3,755,564 1,722,224 1,887,417 3,901,126 4,730,430 1,603,494 8,954,495 10,074,239 4,557,634 5,334,646 6,113,171 7,210,558 8,553,887 32,038,306 46,763,736 35,835,850 59,826,710 59,665,529 202,732 202,330 2,603 5,198 4,011 913,612 1,073,145 851,864 1,197,925 1,270,233 28,021 25,609 2,321,473 2,451,377 2,167,740 978,499 1,033,317 1,558,930 1,541,361 2,092,566 848,701 1,009,572 1,252,866 1,617,013 1,751,965 4,803,099 5,182,361 6,135,027 6,969,366 6,629,383 1,503,109 1,824,388 239,094 169,906 238,053 23,150,710 19,424,093 15,364,732 42,585,906 18,900,426 32,428,483 29,774,815 27,726,589 56,538,052 33,054,377 $ 390,177 $ (16,988,921) $ (8,109,261) $ (3,288,658) $ (26,611,152) 9,447,544 10,783,414 11,422,308 14,167,079 16,891,670 12,813,111 13,193,407 13,940,263 14,152,987 14,363,863 2,630,868 2,491,125 2,865,226 3,181,939 3,343,943 1,940,341 2,072,440 1,682,152 413,075 856,766 2,127,156 1,710,903 799,008 2,704,647 2,505,911 511,652 398,413 309,901 199,233 280,386 29,470,672 30,649,702 31,018,858 34,818,960 38,242,539 $ 29,860,849 $ 13,660,781 $ 22,909,597 $ 31,530,302 $ 11,631,387 Data Source: City of Dublin Administrative Services Department 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. 158 i~5 ~ ~ ~~ Fiscal Year 2007 2008 2009 2010 $ 8,866,758 $ 7,790,286 $ 8,721,545 $ 8,396,199 22,306,240 23,282,634 23,880,635 23,797,696 17,182,208 20,196,496 20,368,655 15,969,371 1,816,800 1,689,353 1,869,428 3,615,077 14,080,040 12,200,759 11,563,136 10,757,355 11,157,417 8,276,993 7,175,272 5,112,469 75,409,463 73,436,521 73,578,671 67,648,167 208,247 216,334 215,711 219,386 2,284,955 1,301,328 1,545,935 1,600,890 745,727 13,794 598,542 8,078,369 2,483,619 3,301,877 3,050,719 2,798,092 1,508,752 1,722,627 1,719,501 2,101,867 9,432,854 5,599,417 4,720,221 3,775,102 2,813,079 2,747,497 2,245,945 2,229,043 25,973,730 37,393,930 14,599,068 12,254,443 45,450,963 52,296,804 28,695,642 33,057,192 $ (29,958,500) $ (21,139,717) $ (44,883,029) $ (34,590,975) 20,266,216 22,229,039 23,311,587 22,287,783 14,025,869 14,225,661 12,832,417 12,183,267 3,508,587 3,504,501 2,180,846 3,201,219 261,276 197,245 160,242 141,221 4,053,187 4,399,908 4,266,601 758,016 1,109,734 1,202,074 461,137 1,106,163 43,224,869 45,758,428 43,212,830 39,677,669 $ 13,266,369 $ 24,618,711 $ (1,670,199) $ 5,086,694 159 i ~~ ~zz2- City of Dublin Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) General Fund Reserved Unreserved, designated for: Advance to TVTD W. BART station contribution Affordable Housing Authorized expenditures Capital improvements Cash Flow & Operation Stability Catastrophic Loss & Business Recovery Capital Improvements Projects Carryover Compensated Absences Economic Uncertainty Emergency Communication System Fire Retiree Medical Innovation & New Opportunities Investment Market Value Adjustment Operation Carryover Service Continuity Obligation Unreserved, undesignated Total general fund All Other Governmental Funds Reserved Unreserved, designated, reported in: Special revenue funds Capital projects funds Undesignated Total all other governmental funds Total All Governmental Funds zooi zoo2 2oos 2004 $ 65,175 $ 75,221 $ 529,811 $ 1,896,575 - 626,360 - 1,000,000 22,858,588 27,545,240 33,665,113 32,581,785 34,722,647 39,175,619 8,089,385 8,222,723 1,369,133 1,369,133 1,651,965 2,719,008 $ 59,015,543 $ 68,791,573 $ 43,936,274 $ 46,420,091 $ 30,722,073 $ 43,279,073 $ 34,665,390 $ 37,395,125 - - (1,075,338) (1,810,979) $ 30,722;073 $ 43,279,073 $ 33,590,052 $ 35,584,146 $ 89,737,616 $ 112,070,646 $ 77,526,326 $ 82,004,237 Data Source: City of Dublin Administrative Services Department Note: All Other Governmental Funds includes the City's Major and Non Major Capital Project and Special Revenue Funds, excluding General Fund. 160 i9i £8Z'H~8'Z8 $ 9E~'ZSS~i~6 $ LOL~~9£~ZII $ L£0~£66~66 $ 9~L~£~I'L6 $ ~S9~ZOZ'£Zi $ SS~'S£8'IZ $ 8L0'6ZCZ£ $ 86£'ZS6'8~ $ i~SZ'£69'i~ $ 698'9~Z'9~ $ 6LL'9~CZb $ ~6Z6~89I'£) ~9££~L~S~L) ~LZO'G£S~i) ~Z9CL6CI) ~86S'£68~L) ~6SZ'ZOZ~Z) ~S£~~OO~SZ $ ~ib'OLS~~£ $ 6L6~68COS $ 9b0'58~~£6 $ G9~'O~I'8b $ 89~'5~6~~~ $ SZ8~ZIO~L9 $ SS£'£ZL~Z9 $ 60£'ZL~'£9 $ £SL"66Z'HS $ LL8'968'OS $ SL~~9Si~~08 $ 000'OS£'L - - - - - OOi~LLI ~L8~i0£ - - - - 69S"9LS~L i90'~££~Z 906'804'L - - - 000'000'£L - - - - - 000'OOS'~ OOO~OSL 000"OOS - - - OOO~OOO~L 000'OiZ - - - - L~8'S9S~S Lb8'898~5 ZZCOL6~Z ZZG~OL6"Z OZCOL6"Z LZL~OL6~Z Ii£'Z08 ZSS'L6G ibO~bbL - - - LOS'£OZ - - - - - 000'OZ~'S - - - - - 000"098~8 - - - - - 8H0'~6£'L SGi'660'iI ~££'~88'8 6£S'84Z'~ Oi~i~'S86'4 OOi'6£Z'It 096~£ 60Z~i~Lb"b£ Z6Z~L8L~Z~ OSS'8Z£'~~ 6£0"098'S£ LZZ'LL6~Z£ 000'000'i 000~000"I OOO~OOO~I 000'OOO~I 000~000'L OOO~OOO~I 000'000'L - - - - - 9~'ZZ6'S $ Oi9~£6£'S $ ~i0~£Z9"S $ Z~6~I~L~S $ 8L9'OSO'Z $ ££i~~SLZ'Z $ OIOZ 600Z 800Z LOOl 900Z SOOZ ~cZ~Q~L~I ~ -~ g Z 2~. ~ ~ City of Dublin ~ Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) ~ Fiscal Year 2004 ~ 2001 2002 2003 Revenues: Property taxes Taxes other than property Intergovernmental Licenses and permits Charges for services Investment income Use of property Fines and forfeitures Developer fees Special assessments Other revenues Total revenues Expenditures Current: General govemment Public safety Highways and streets Health and welfare Culture and leisure services Community development Capital outlay: General Health and welfare Community improvements Parks Streets Debt service: Principal Total expenditures Excess (deficiency of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures Data Source: City of Dublin Administrative Services Department $ 7,174,290 $ 8,885,812 $ 10,142,650 $ 11,422,308 ~ 16,185,183 15,650,789 16,064,732 17,038,810 4,129,090 4,702,126 11,412,577 4,942,167 3,028,655 2,327,251 2,421,885 3,090,992 ~ 4,486,440 5,330,051 5,680,902 5,789,970 2,725,077 3,743,415 2,709,459 857,734 114,614 85,937 139,019 130,741 242,363 267,214 274,284 ~ 272,153 8,882,375 19,685,682 10,195,565 13,455,274 384,649 431,564 501,424 593,201 2,736,852 526,716 672,895 , 1,152,096 50,089,588 61,636,557 60,215,392 58,745,446 3,085,725 3,929,919 4,363,241 ~ 6,193,881 10,960,752 12,523,197 13,948,110 17,222,501 1,445,943 1,546,347 1,850,944 ~ 2,072,806 1,139,399 1,196,457 1,352,083 3,762,260 3,332,421 4,012,730 4,611,564 5,098,102 4,572,981 4,678,311 5,399,648 ~ 6,363,727 1,367,829 8,900,230 12,574,726 2,170,910 ~ 1,477,404 353,534 478,309 734,113 182,710 226,440 2,370,369 5,425,790 9,099,539 6,925,150 18,345,206 7,045,878 ~ 251,004 251,004 - - 36,915,707 44,543,319 65,294,200 56,089,968 ~ 13,173,881 17,093,238 (5,078,808) 2,655,478 ' 16,202 16,785 18,580 21,905 (2,416,202) (16,785) (18,580) (21,905) ~ (2,400,000) - - - $ 10,773,881 $ 17,093,238 $ (5,078,808) $ 2,655,478 ' 1.0% 0.9% 0.0% 0.0% 162 , ~ ~ ~ ~ r , ' ~ i ~ ~ ' ~ ~ ~ , ~ ~ Fiscal Year 2005 2006 2007 2008 2009 2010 $ 14,167,079 $ 16,891,670 $ 20,266,213 $ 22,229,039 $ 23,306,302 $ 22,286,209 17,572,000 18,014,431 17,967,499 18,188,593 15,436,466 15,783,099 3,312,079 2,593,336 2,845,936 3,431,314 2,393,153 7,951,237 3,520,141 3,142,223 2,572,069 1,784,644 1,623,029 2,260,364 6,623,303 7,090,105 9,476,984 8,101,935 7,759,628 7,100,403 2,948,612 2,859,433 5,840,949 6,101,736 5,597,303 1,475,308 125,835 123,154 203,240 335,151 989,081 1,491,413 292,658 340,336 342,098 360,496 318,737 312,778 14,361,337 17,018,274 8,618,271 18,226,041 1,875,841 4,387,339 744,100 645,230 716,144 797,520 826,717 868,348 954,949 826,715 960,534 2,497,249 3,312,774 1,778,477 64,622,093 69,544,907 69,809,937 82,053,718 63,439,031 65,694,975 6,535,408 4,983,006 5,619,088 5,590,247 6,047,115 8,957,744 19,163,929 20,542,375 22,148,312 23,629,954 23,951,223 24,241,160 2,272,310 2,536,127 2,726,599 2,719,532 3,168,513 2,985,311 1, 734, 787 1,906,950 1,626,197 1,706,918 1,888,631 3,653,297 5,377,134 5,948,563 6,874,596 7,207,896 7,621,663 7,267,805 7,404,619 8,199,933 8,173,711 8,335,105 7,364,651 5,300,211 1,250,772 666,160 377,026 411,293 4,221,956 742,754 - - 75,526 - - - 462,751 838,618 95,672 218,058 68,236 82,333 9,237,426 10,189,487 10,711,807 8,820,229 9,409,692 10,706,350 2,828,616 7,102,450 5,532,110 11,042,816 13,742,919 13,762,167 56,267,752 62,913,669 63,960,644 69,682,048 77,484,599 77,699,132 8,354,341 6,631,238 5,849,293 12,371,670 (14,045,568) (12,004,15'~ 1,336,275 21,789 90,399 77,528 26,232 25,777,410 (1,336,275) (21,789) (90,399) (77,528) (26,232) (25,777,410) $ 8,354,341 $ 6,631,238 $ 5,849,293 $ 12,371,670 $ (14,045,568) $ (12,004,157) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 163 `~~ ~ ~ ~~' City of Dublin Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years l ~D ~-~~ ~ ~ ~ Fiscal Year Taxable Ended Residential Commercial Industrial Unsecured / Less: Assessed June 30 Property Property Property Other Property Exemptions Value 2001 $ 1,852,468,604 $ 439,284,508 $ 178,875,023 $ 595,033,189 $ (60,674,335) $ 3,004,986,989 2002 2,437,438,709 653,528,807 141,438,754 556,968,264 (64,396,816) 3,724,977,718 2003 2,825,719,751 877,069,998 140,636,627 534,477,740 (69,498,931) 4,308,405,185 2004 3,233,586,490 998,908,661 147,997,335 561,725,805 (70,891,008) 4,871,327,283 2005 3,730,424,115 1,032,552,391 154,758,355 662,659,500 (72,612,23~ 5,507,782,154 2006 4,520,222,157 1,052,701,438 162,182,398 652,279,788 (77,085,570) 6,310,300,211 2007 5,345,937,692 1,068,813,294 161,909,866 873,737,282 (80,274,178) 7,370,123,956 2008 5,870,526,565 1,112,837,055 171,673,012 1,072,734,321 (78,188,899) 8,149,582,054 2009 6,203,330,781 1,241,301,664 198,082,746 1,032,449,487 (36,478,516) 8,638,686,162 2010 5,868,488,395 1,326,481,267 212,939,326 983,426,713 (49,873,361) 8,341,462,340 Assessed Value of Taxable Property $1 2 ' . , ~ ~~, ~ ~` ~ ~ ~. ~ 0 $1 ~ f ~ . > ~ ~ ~. c ~ ` ~~ ~ ' ~ ~ o _ $0.8 ~ ~ ~ ° # ~ ~ ~; : ~ ~ m • ~ ~ ~ ~ , , ~,.: ~ ~ ~ ~. ~ ~ "4 $0.6 ~ " ~ ~, ~ ~ ~ ~. - ~, . `~ ~ r-- ~ ~ : ~ , ~ ~ ~ ~ $0.4 ~ _ ' ~ , = .~ ~,. ~ ; ;: ~ ` ° o ~ ~ ~ "~ ~ ~ ` ~ ~ ~ ' ~~ $0.2 ~ ~ < ~ ~t ~ ~ ~ ~. '~ ; ~ ~~ ~: ~ ~ . ~ $0 0 . ~~ ~~ ~~ ~~ ~~ ~~ ~~ ~~ ~~ ~o ti~ ti~ ti~ ti~ ti~ ti~ ti~ ti~ ti~ ti~ Fiscal Years Data Source: HDL Coren & Cone and Alameda County Assessor 2009/10 Combined Tax Rolls City Wide Avg Total Direct Tax Rate 0.2416% 0.2398% 0.2398% 0.2397% 0.2397% 0.2390% 0.2387% 0.2385% 0.2385% 0.2386% 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. 164 ' I ~ l ~ ~.~ ~ ~ City of Dublin Direct and Overlapping Property Tax Rates (Rate per $100 of assessed value) ~ Last Ten Fiscal Years , 2000 O1 2001/02 2002/03 2003/04 2004 O5 2005/06 2006/07 2007 OS 2008 09 2009/10 Basic Levy (1) 1.00000 1.00000 1,00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Bay Area Rapid Transit 0.00000 0.00000 0.00000 0.00000 0.00000 0.00480 0.00500 0.00760 0.00900 0.00570 ~ Castro Valley Unified School Bonds 0.01990 0.03550 0.04980 0.05610 0.05320 0.07180 0.08110 0.09720 0.09690 0.10230 Chabot - Las Positas Community College Bonds 0.00000 0.00000 0.00000 0.00000 O.O1S60 0.01580 0.01590 0.01640 0.01830 0.01950 Dublin Unified Bonds 1A & B 0.05340 0.04510 0.03760 0.04290 0.03990 0.08170 0.08850 0.08500 0.07320 0.08160 ~ East Bay Regional Park 0.00650 0.00720 0.00650 0.00570 0.00570 0.00570 0.00850 0.00800 0.01000 0.01080 Flood Zone 7 State Water Bonds 0.01450 0.01570 0.01580 0.01450 0.01140 0.01300 0.01510 0.01500 0.01690 0.02030 Livermore Valley Joint Uni6ed School Bond 0.08630 0.08200 0.09550 0.07930 0.07930 0.08300 0.06920 0.06260 0.06160 0.06740 ~ Total Direct & Overlapping Tax Rate 1.18060 1.18550 1.20520 119850 1.20810 127580 1.28330 1.29180 1.28590 1.30760 Tota] Dired Rate (2) 0.24158 0.23978 0.23984 0.23965 0.23965 0.23895 0.23568 0.23849 0.23842 0.23855 City's Share of 1% Levy per Proposition 13 (3) 0.28177 0.28177 0.28177 0.28177 0.28177 0.28177 0.28177 0.28177 0.28177 0.28177 Source: HDL Coren & Cone and Alameda County Assessor 2000/Ol - 2009/10 Tax Rate Table e Notes: (1) In 1975, Califwnia voters passed Proposition 13 which sets the property tax rate at a 1% fixed amount. This 1% is shared by alI 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. (2) Total Direct Rate is the weighted average of all individual direct rates. (3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. (4) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. , (5) Total Direct Rate is the weighted average of al] individual direct rates applied by the government preparing the staHstical secHon information. (6) The City has different Tax Rate Areas (TRA) administered by the County Tax Collector. The City's share of Property Tax can vary by each TRA. 165 -~ ~ r3~ 2~.~ , City of Dublin Principal Property Taxpayers Current, And Nine Years Ago 2000/01 2oo9/io Percent of Total Percent of Total Taxpayer (Number of Parcels) Assessed Value Assessed Value Assessed Value Assessed Value Hong Y. Lin & L. Hong & S. Chang 172,564,071 5.68% Jefferson at Dublin LP and JJ Sullivan 59,403,820 1.96% Security Capital Pacific Trust 54,617,400 1.80% RREEF American REIT Corporation 48,080,500 1.58% Park Sierra LLC 32,757,538 1.08% Standard Pacific Corporation 32,660,338 1.08% US Property Fund GMBH & Company KG 31,110,000 1.02% Rafanelli & Nahas 30,797,387 1.01 % Toll California lI LP 30,175,000 0.99% SHEA Homes 29,682,000 0.98% ISTAR CTL Dublin, LLC 103,000,000 1.23% SR Structure LOT Option I 102,999,598 1.23% Chang S. Lin 92,851,283 1.11 % Behringer Harvard Waterford PL 87,642,548 1.05% Dublin Corporate Center LP 85,500,000 1.03% Avalon at Dublin Station LP 85,324,680 1.02% Bere Island Properties I LLC 83,540,649 1.00% Tishman Speyer Archstone Smith Emerald 77,570,564 0.93% BIT Holding Sixty-Three 71,377,477 0.86% Kaiser Foundation Hospitals 62,933,922 0.75% $521,848,054 17.18% $852,740,721 10.21% Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls ~ 166 -$3~~~.~ City of Dublin Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Collected within the Year Total Tax Fiscal Year of the Levy Collected in Total Collections to Date Ended Levyfor Percentage Subsequent Percentage June 30 Fiscal Year Amount of Levy Years Amount of Levy 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 16,690,262 96.6% 412,481 17,102,743 99.0% 2008 19,072,467 18,100,067 94.9% 778,895 18,878,962 99.0% 2009 19,812,004 18,584,496 93.8% 804,530 19,389,026 97.9% 2010 19,337,680 17,668,857 91.4% N/A 17,668,857 91.4% Pro ert Tax Collection .-, ~ ~ ~ . ~ ~ . a , _ ~~ , ~ , :n~a o _ ~ ~ . C ~ ~ H l~0 ~ .. .... . ~. ..~ ... „ ~ , , `wei. w r~..Cx . ~tt,ti',~a? ., ^aYer~~ , .s ., : ..a ,,, - ~,., .,. , '~ . , ,;,. _~ , a~~~ ' 7 ° w . ° ~lii". ~. ~ "0<.>5~y„t~, aa ~,-. ~ - a,..~+^ .> . t~,' r r^. ~ n ~~ n 0~ n ~~ n~ Dµ n ~~ n 0~ n ~~ VO VO VO VO VO VO VO Fiscal Year , ~',,.~ .. . ,~,~.; a , n 0~ VO ..r,~k'v : ,.~'.~ ~.v,:m.'r s&n ,. .,,, .. . . . . , <„ n ~~ n ~O VO VO 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 Education Revenue Augmentation Fund (taxes shifted to school districts) 167 «~ ~ ~~~ City of Dublin Direct and Overlapping Debt June 30, 2010 Total Property Tax Assessed Value of Taxable Property OVERLAPPING DEBT REPAID WITH PROPERTY TAXES Bay Area Rapid Transit District Chabot-Las Positas Community College 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 Tota1 overlapping debt repaid with property taxes OVERLAPPING OTHER DEBT Alameda County General Fund Obligations Alameda County Pension Obligations Alameda - Contra Costa Transit District Certificates of Participation Chabot-Las Positas Community College District General Fund Obligations Total Overlapping Other Debt COMBINED TOTAL DEBT Source: California Municipal Statistics, Inc. $ 8,341,462,340 Percentage Outstanding Debt Applicable to Esti mated Share of 6/30/10 City of Dublin Overlapping Debt $ 420,000,000 1.9100% $ 8,022,000 $ 462,902,125 10.6180% $ 49,150,948 $ 172,583,700 99.9490% $ 172,495,682 $ 196,775,000 2.9050% $ 5,716,314 $ 573,000 100.0000% $ 573,000 $ 1,099,595 100.0000% $ 1,099,595 $ 237,057,539 $ 419,006,000 4.8900% $ 20,489,393 $ 178,386,819 4.8900 % $ 8,723,115 $ 40,335,000 0.0460% $ 18,554 $ 4,665,000 10.6180% $ 495,330 yl L7~/LO~J7J $ 266,783,931 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 over-apping govemments 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 excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, tax allocation bonds, and non-bonded capital lease obligations. 168 I~~~ ~~~ This page intentionally left blank. 169 City of Dublin Legal Debt Margin Information Last Ten Fiscal Years , ~~ i ~~~ , ' 2001 2002 2003 2004 2005 , Assessed valuation $ 3,004,986,989 $ 3,724,977,718 $ 4,308,405,185 $ 4,871,327,283 $ 5,507,782,154 , Add back exempted real property 60,674,335 64,396,816 70,891,008 70,891,008 72,612,237 Total assessed valuation $ 3,065,661,324 $ 3,789,374,534 $ 4,379,296,193 $ 4,942,218,291 $ 5,580,394,391 ' Conversion Ratio 25% 25% 25% 25% 25% ' Converted assessed valuation $ 766,415,331 $ 947,343,634 $ 1,094,824,048 $ 1,235,554,573 $ 1,395,098,598 Debt limit percentage 15% 15% 15% 15% 15% ~ Debt limit $ 114,962,300 $ 142,101,545 $ 164,223,607 $ 185,333,186 $ 209,264,790 ~ Total net debt applicable to limit: General obligation bonds - - - - - ~ Legal debt margin $ 114,962,300 $ 142,101,545 $ 164,223,607 $ 185,333,186 $ 209,264,790 Total debt applicable to the limit , as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0% Source: City of Dublin Administrative Services Department Notes: , 1. The Government Code of the State of California provides far 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 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 170 I~b ~~ Z~~ .. , Fiscal Year 2006 2007 2008 2009 2010 $ 6,310,300,211 $ 7,370,123,956 $ 8,149,582,054 $ 8,638,686,162 $ 8,341,462,340 77,085,570 80,274,178 78,188,899 36,478,516 49,873,361 $ 6,387,385,781 $ 7,450,398,134 $ 8,227,770,953 $ 8,675,164,678 $ 8,391,335,701 25% 25% 25% 25% 25% $ 1,596,846,445 $ 1,862,599,534 $ 2,056,942,738 $ 2,168,791,170 $ 2,097,833,925 15% 15% 15% 15% 15% $ 239,526,967 $ 279,389,930 $ 308,541,411 $ 325,318,675 $ 314,675,089 $ 239,526,967 $ 279,389,930 $ 308,541,411 $ 325,318,675 $ 314,675,089 0.0% 0.0% 0.0% 0.0% 0.0% 171 City of Dublin Demographic And Economic Statistics Last Ten Years i g~ ~z~ ~ ~ ' , Personal Income (in Year City Population (1) Thousands) (2) 2001 32,570 56,121,667 2002 33,520 55,316,772 2003 35,545 56,424,129 2004 38,330 59,339,211 2005 39,931 62,015,782 2006 41,907 66,998,496 2007 43,630 70,761,435 2008 46,934 73,159,586 2009 47,922 N/ A 2010 48,821 N/ A Per Capita Personal Unemployment Rate Income (2) (3) 38,417 2.60% 37,755 4.00% 38,712 4.00% 40,915 3.40% 43,074 3.00% 46,414 2.60% 48,679 2.80% 49,757 3.70% N/A 6.50% N/A N/A Sources: 1) State of California Department of Finance, Population Estimate at January 1 and City Population Rankings. 2) Bureau of Economic Analysis, Personal Income and Per Capita Personal Income, Alameda County (2 years lag) 31 State of California Emrolovment Develonment l~enarhnent Citv's Anm~al AvPravP (1 vaar laol Rank in Size of , California Cities (1) 209 ' 209 204 193 , 192 190 , 184 180 179 , 179 ~ , City Population (1) 55,000 50,000 45,000 a~ N ~ 40,000 c 0 ~ ~ 35,000 a 0 n' 30,000 25,000 20,000 ti~~~ ti~~~ ~~~~ ~~~~ ti~~~ ti~~~ Fiscal Year 172 , ~~~'` rL~~~ ~L~~~ i~~~bz~z City of Dublin Property Value, Construction And Bank Deposits Last Ten Fiscal Years Fiscal Year Ended Total Number of June 30 Permits Issued (1) 2001 1828 2002 1015 2003 1157 2004 1154 2005 1275 2006 1199 2007 1214 2008 1333 2009 1101 2010 1345 Commercial Construction Value (1) 113,618,557 63,476,079 46,448,163 18,575,621 56,481,612 96,389,754 56,832,041 18,256,381 23,968,805 17,407,699 Residential Construction Value ~1) 155,286,401 123,149,627 178,361,169 242,563,776 283,817,542 207,862,999 178,094,884 59,647,886 63,242,418 124,930,163 Bank Deposits (2) Source: 1) City of Dublin Community Development Department 2) Findley Reports, Inc Bank Deposits represents the amount of cash deposits held by financial institutions 809,281,000 900,670,000 980,220,300 488,343,000 566,441,000 629,684,000 676,681,000 680,695,000 N/A N/A 173 i~~~~~~ City of Dublin Principal Employers Current and Three years prior Number of 2010 Employees Ranking 2007 United States Government United States Government & Federal Correction Institute 2100 1 & Federal Correction Institute Zeiss Meditec 830 2 Zeiss Meditec Sybase Corporation 730 3 Sybase Corporation Dublin Unified School District 580 4 Dublin Unified School District Micro Dental Laboratories 550 5 County of Alameda County of Alameda 480 6 Safeway Safeway 400 7 Micro Dental Laboratories City of Dublin 219 8 City of Dublin Franklin Templeton Investments 200 9 Franklin Templeton Investments Avaya 180 10 Target Corporation Target Corporation 180 10 Source: City of Dublin Economic Development Department. Note: Information regarding Principal Employers for prior fiscal years was not available. Number of Employees Ranking 2133 1 700 2 664 3 583 4 486 5 450 6 319 7 218 8 170 9 150 10 174 I~ ~~~~~ City of Dublin Full-time Equivalent City and Contract Government Employees by Function Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 General government City Manager 4.00 5.50 5.50 5.75 6.00 7.17 6.25 6.50 6.50 6.00 Administrative Services 9.30 10.00 10.00 11.00 11.50 11.50 11.50 12.00 12.00 11.50 Central Services & Building Management 2.85 3.71 3.60 3.65 3.40 3.43 3.75 3.51 3.52 1.34 Public Safety: Police 47.50 52.50 55.00 54.00 54.00 57.00 59.00 61.00 61.00 61.00 Fire 30.97 30.98 40.00 39.89 40.89 40.25 40.25 40.75 40.78 39.77 Disaster Preparedness 0.50 0.50 0.50 0.50 0.33 0.33 0.33 0.50 0.50 0.50 Transportation Public Works 6.00 6.50 6.50 6.50 6.50 6.50 7.50 8.50 8.50 6.45 Street Maintenance 5.39 5.55 7.60 9.00 9.46 10.14 10.57 10.73 9.93 9.18 Health and welfare Environmental - - - - - - - - - 2.50 Housing - 1.00 1.00 1.00 1.75 1.75 1.75 1.75 2.90 3.20 Waste Management - - - - 0.33 0.33 0.33 0.33 1.33 0.33 Culture and leisure services Parks Community Services 11.75 12.50 12.50 13.00 14.00 14.00 14.00 15.50 16.00 16.60 Park Maintenance 6.38 7.60 7.79 8.48 8.70 9.10 9.53 9.55 9.92 9.65 Parks/Facilities Management 1.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Library Services - - 0.20 0.60 0.51 0.51 0.48 0.45 0.43 0.39 Heritage & Cultural Arts 1.15 1.96 1.93 1.93 2.31 2.30 2.32 2.53 2.49 2.47 Community development Planning & Building 22.50 25.00 25.00 26.00 32.00 34.50 33.90 32.50 27.10 19.05 Economic Development 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 Engineering 13.00 13.00 14.00 13.00 13.35 13.35 13.35 13.35 12.35 9.00 Tota- 163.29 179.30 194.12 197.30 208.03 21516 217.81 222.45 218.75 202.43 Source: City of Dublin Administrative Services Department Note: Include Full Time, Part Time, Temporary and Contract Employees 175 1 ~ ~ ~~~2~ City of Dublin Operating Indicators by Function Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Function Police: Calls for Service 46,970 50,613 52,708 49,379 48,388 46,197 41,306 41,652 38,983 38,125 Citations Issued 9,624 8,364 10,501 11,081 10,911 10,595 11,676 11,768 7,086 10,101 Arrests 1,272 1,418 1,376 1,614 1,631 2,020 1,668 2,021 1,620 1,556 Fire: Emergency calls 1,645 1,797 1,872 1,724 1,742 1,771 1,780 1,978 1,969 1,999 Inspections 7,129 5,182 5,021 4,951 3,249 4,122 4,048 2,213 1,952 3,576 Building Plan Reviews and Consultations 989 1,270 1,381 1,249 858 1,006 1,049 922 511 474 Public works: Bike Path Maintenance(hours) 270 141 230 428 783 726 810 775 775 697 Street Sign Maintenance (number of signs) 317 211 643 308 353 435 427 135 74 325 Curb Painting (linear feet) 1,637 2,749 2,993 1,607 1,404 3,991 4,006 2,468 2,395 6,607 Replace Street Asphalt (square feet) 19,545 12,320 5,500 3,000 7,500 7,950 13,800 33,000 29,000 30,000 Street Sweeping (curb miles) 4,336 4,529 5,116 5,371 5,686 5,730 5,927 6,075 6,341 5,083 Parks and recreation: Museum Visitors 1,012 793 300 900 800 1,350 2,140 2,225 2,040 3,530 Afterschool Recreation (participants/day) 126 134 140 128 129 138 153 180 167 176 Preschool Classes Participants 177 176 214 268 224 285 254 399 402 690 Youth Basketball League Participants 397 445 476 536 547 580 588 570 591 772 Senior Center Average Daily Attendance 92 97 111 110 110 149 180 185 190 198 Community Development Planning Applications 44 56 78 71 73 59 55 55 64 62 Building Permits 1,828 1,429 1,617 1,639 1,837 1,855 1,910 1,333 1,101 1,345 Building Inspections 19,073 16,492 24,682 31,571 33,534 34,244 36,071 25,602 12,302 8,933 Source: City of Dublin 176 ~~3~ ~~~ City of Dublin Capital Assets Statistics by Function Last Ten Fiscal Years Fiscal Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Function Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Fire Stations 2 2 3 3 3 3 3 3 3 3 Public works: Street Lights 2,383 2,504 2,872 2,958 3,469 3,752 3,972 4,193 4,479 4,526 Miles of Streets 63 65 81 81 81 81 104 93 103 105 Milesof Curbs 172 180 202 202 202 202 217 217 218 222 Traffic Signals 42 49 55 60 62 67 75 79 Sl 85 City Street Trees 3,174 4,585 5,148 5,401 5,955 6,084 6,084 6,084 6,499 7,054 City Landscape (acres) 22 33 38 38 43 45 45 45 45 57 Parks and recreation: Number of Community Facilities 5 5 7 7 7 7 7 7 7 7 Number of City Parks 9 9 11 11 11 11 11 16 16 16 Acres of City Parks 77 84 109 109 109 109 121 122 201 201 Acres of Open Space 107 107 122 122 126 126 126 122 125 125 Source: City of Dublin 177 City of Dublin Top 25 Sales Tax Producers 2009-2010 i~ ~~ ~ ~ ~ o~ , ' BUSINESS NAME BUSINESS CATEGORY Alameda County Auction ' Motor Vehicle Dealer Alcosta Shell Service Stations Arco AM/PM Mini Mart Service Stations Bed Bath & Beyond Home Furnishings ' Best Buy Electronics/Appliance Stores Carl Zeiss Ophthalmic System Specialty Stores Dublin Honda Motor Vehicle Dealer , Dublin Kia Motor Vehicle Dealer Dublin Nissan Motor Vehicle Dealer Dublin Toyota Motor Vehicle Dealer Dublin Chevron ' Motor Vehicle Dealer Dublin Volkswagen Motar Vehicle Dealer Graybar Electric Co Electrical and Telecommunications Supply Chain Lowes ' Hardware Store Marshall Discount Department Stores Old Navy Department Stores Orchard Supply Hardware Hardware Store ' Ross Hardware Store Safeway Grocery Store Liquor Safeway Gas Sales Service Stations , Santa Rita Jail Food Service Food Service Stoneridge Chrysler Jeep Motor Vehicle Dealer T J Maxx Discount Department Stores , Target Department Stores Toys R Us Specialty Stores Source: Hinderliter, de Llamas & Associates, State Board of Equalization Notes: State Law does not allow disclosure of the top ten sales tax providers to the City Top producers listed in alphabetically order 178 i~~~~~~ City of Dublin Miscellaneous Statistical Data june 30, 2010 General Date of Incorporation February 1,1982 Form of Government Council/Manager Population 48,821 Number of Registered Voters 20,547 Employees, City and Contract (Full Time Equivalent) 202 Area (Square Miles) 14.62 Parks and Recreation Parks 16.00 Acres in Parks 200.65 Acres in Open Space 124.76 Public Education Elementary Schools 6 Middle Schools 2 High School 1 Continuation High School 1 School Enrollment 6025 Police Protection Number of Stations 1 Police Personnel (Full Time Equivalent) 60 Fire Protection Number of Stations 3 Fire Personnel (Full Time Equivalent) 3g Community Facilities Dublin Civic Center 1 Dublin Senior Center 1 Dublin Swim Center 1 Dublin Heritage Center 1 Dublin Public Library 1 Shannon Community Center 1 Emerald Glen Activity Center 1 Source: City of Dublin 179 ~ ~~ ' l~ c~ ~ 1 Tliis page intentionall~ left blank. 180 ' lq~~ Z~~ SUMMARY - KEY INFORMATION IN DRAFT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2010 City Council Meeting December 21, 2010 Attached is the Final Draft document and the Auditor is preparing printed copies. 1. Includes audited financial statements reviewed by Caporicci and Larson, Inc. , a Subsidiary of Maccum, LLP (C&L) 2. "Clean Opinion" based on testing Financial Statements fairly represent the City's financial position. 3. Information included in a CAFR exceeds the minimum amount of information required for a financial audit. 4. CAFR format will allow the City to apply for a Certificate of Achievement from the Government Finance Officers Association. The goal is to provide financial information of the highest quality. 5. ORGANIZATION OF DRAFT REPORT i. Transmittal letter (pages v- ix). (Provides a general overview of the components which make up the report. ii. Opinion issued by the Independent Auditor (pages 1-2). iii. Manaqement Discussion and Analvsis (MD&A) Page 3 and continuing to page 16, is required by GFOA. Provides and overview of the financial activities, with a focus on significant trends, as well as major changes associated with the City's major funds (i.e. General Fund and Impact Fee funds). iv. Financial Statements 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. Pages 21 - 23, include a Government Wide Statement of Net Assets which is similar to financial statements presented by private corporations. It is important to keep in mind the unique nature of government services and what is reported as assets. For example, land dedicated for streets and parks, infrastructure, and public buildings are reported as part of the Non-current Assets retained by the City. This category is $436 million (82%) of Total Assets. These are not liquid assets available to fund programs or on-going activities. v. Statistical Section Pages 153 - 179 comprise the unaudited statistical section of the CAFR includes graphs of relevant historical data. Page 1 of 2 ATTACHMENT 2 ~a~~~~ SUMMARY - KEY INFORMATION IN DRAFT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2010 City Council Meeting December 21, 2010 6. Reserves - A complete listing of both fund reserves and designations for all funds is shown on page 64 of the report. i. 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. ii. A"Designation" is less restrictive and subject to policy decisions by the City Council. The format for the presentation of fund balance will be changing based on new accounting requirements beginning with the June 30, 2011 CAFR. A more detailed discussion of General Fund Reserves and planning for the new accounting standard is included in the December 21, 2010 Staff Report. 7. AUDIT RECOMMENDATIONS / DISCLOSURES - As part of the Audit Review the independent auditors can present recommendations for consideration by the City. The process allows the Auditors to disclose their observations on certain practices and policies, and allow Management to respond to the input. This year the Auditors did not identify any items that are required to be addressed. ~ Page2of2 ATTACHMENT 2 ~..~~ ~ ~~~ ~ . . ~=~1 o u 1n Dublin, Cal~ifornia ;, Auditors' Communication with Those Charged with Governance . For the year ended June 30, 2010 ' ATTACHMENT 3 ~~~~ za~ December 13, 2010 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin (City) for the year ended June 30, 2010, and have issued our report thereon dated December 13, 2010. Professional standards require that we provide~ you with the following information related to our audit. - Our Res~onsibility under U.S. Generally Acce~ted Auditing Standards As stated in our engagement letter dated February 8, 2010, our responsibility, as described by professional standards, is to e~cpress opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in confornlity with U.S. generally. accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. ~ In planning and performulg our audit, we considered City's internal control over financial reporting in order to determine our auditing procedures for the ~ purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. As part of obtaining reasonable assurance about whether City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and .grants, 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. Also in accordance with OMB Circular A-133, we examuled, on a test basis, evidence about City's compliance with the types of compliance requirements described in the "U.S. Office of Management and Budget (OMB) Circialar A-133 Compliance Supplement" applicable to each of its major federal programs for the purpose of expressing an opinion on City's compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on City's compliance with those requirements. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in our engagement letter dated February 8, 2010. To the Honorable Mayor and Members of City Council ~ 2~ t p~ ~ Z~ of the City of Dublin ~~ Dublin, California Page 2 Significant Audit Findin~s Qualitative Aspects of Accounting Practice Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by the City are described in Note 1 to the financial statements. The City adopted new accounting policies during 2010: - GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets - This Statement establish accounting and financial reporting requirements for intangible assets to reduce these inconsistencies, thereby enhancing the comparability of the accounting and financial reporting of such assets among state and local govexnments. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. We noted no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly s~nsitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The mosf sensitive estimates affecting the financial statements were: • Investtnents Valuations ~ Net Other Post-employment Benefits (OPEB) Obligation • Accrual`for Workers' Compensation, Dental. and General Liability The disclosures in the financial statements are transparent, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting.the financial statements were: • Summary of Significant Accounting Policies • Cash and Investments • Notes and Loans Receivable • Capital Assets • Employee Retirement Plans • Other Post Employment Benefits ~ Commitments & Contingencies ~- To the Honorable Mayor and Members of City Council ~~.~ ~~~~ of the City of Dublin Dublin, Cahfornia Page 3 Difficulties Encountered in Performin~ the Audit " We encountered no significant difficulties in dealing with management in performing and campleting our audit. Corrected and Uncorrected Misstatement Professional standards require us to accumulate all known and likely misstatements identified during the audit; other. than those that are trivial, and communicate them to the appropriate level of management. Management has .corrected all such misstatements. The list of corrected misstatements are presented at the end of the Management Representations letter attache.d. Disagreements with Mana ement - For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in a management representation letter dated December 13, 2010. A copy is attached for your information. ManaQement Consultations with Other Inde~endent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a"second opinion" in certain situations. If a consultation involves application of ari accounting principle to the City's financial statements or a determination of the type of audifor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determirie that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. . ~ To the Honorable Mayor and Members of City Council of tlie City of Dublin Dublin, California Page 4 Other Audit Findiri~s or Issues Z ~ ~ ~jz Zv We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the. City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition of our retention. This information is intended solely for the use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. ~~~esti ~ ~I.6s~~~ ~~. San Francisco, California CITY OF DUBLIN 2 f~~-~ Zay 100 Civic Plaza, Dublin, California 94568 December 13, 2010 Caporicci & Larson, Inc. 101 Ivlontgomery St., Suite 1900 San Francisco, CA 94104 Website: http://www.ci.dublin.ca.us We are providing this letter in connection with your audit of the financial statements of City of Dublin, California (City) as of June 30, 2010 and for the year then ended for the purpose of expressing opinions as to whether the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remainulg fund information of the City, and the respective changes in financial position and, where applicable, cash flows thereof in conformity with U.S. generally accepted accounting principles. We confirm that we are responsible for the fair presentation of the previously mentioned financial statements in conformity with U.S. generally accepted accounting principles. We are also responsible for adopting sound accounting policies, establishing and maintaining effective internal control, and preventing and detecting fraud We confirm, to the best of our knowledge and belief, as of December 13, 2010, the following representations made to you during your audit(s): 1. The financial statements referred to above are fairly presented in conformity with U.S. generally accepted accounting principles and include all properly classified funds and other financial information of the primary government and all component units required by generally accepted accounting principles to be included in the financial reporting entity. 2. We have made available to you all- a. Financial records and related data. b. Minutes of the meetings of the City Council or summaries of actions of recent meetings for ~ which minutes have not yet been prepared. 3. There have been no commur•ucations from regulatory agencies concerning noncompliance with, or deficiencies in, financial reporting practices. 4. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements or the schedule of expenditures of federal awards 5. We believe the effects of the uncorrected financial statement misstatements summarized in the attached schedule are immaferial, both individually and in the aggregate, to the financial statements taken as a whole. 6. We acknowledge our responsibility for the design and implementation of programs and controls to prevent and detect fraud. Area Code (925) • City Manager 833-6650 • City Council 833-6650 • Personnel 833-6605 • Economic Development 833-6650 Finance 833-6640 • Public Works/Engineering 833-6630 • Parks & Community Services 833-6645 • Police 833-6670 Planning/Code Enforcement 833-6610 • Building Inspection 833-6620 • Fire Prevention Bureau 833-6606 Printed on Recycled Paper Management Representation Letter 2~} ~~ ZZ? December 13, 2010 ' Page 2 of 7 7. We have no knowledge of any fraud or suspected fraud affecting the entity involving: a. Management, b. Employees who have significant roles in internal control, or c. Others where the fraud could have a material effect on the financial statements. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received in communications from employees, former employees, analysts, regulators, or others. We have taken timely and appropriate steps to remedy fraud, illegal acts, violations of provisions of contracts or grant agreements, or abuse that you have reported to us. 10. We have a process to track the status of audit findings and recommendations 11. We have identified to you any previous financial audits, attestation engagements, performance audits, or other studies related to the objectives of the audit being undertaken and corrective actions taken to address significant findings and recommendations. 12. We have provided our views on reported findings, conclusions, and recommendations, as well as our planned corrective actions, for the report. 13. The City has no plans or intentions that may materially affect the carrying value or classification of assets, liabilities, or equity. - 14. The following, if any, have been properly recorded or disclosed in the financial statements: a. Related party transactions, including revenues, expenditures/expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties. b. Guarantees, whether written or oral, under which the City is contingently liable. c. All accounting estimates that could be material to the financial statements, including the key factors and sigivficant assumptions underlying those estimates and measurements. We believe the estimates and measurements are reasonable in the circumstances, consistently applied, and adequately disclosed. d. Pollution cleanup responsibilities of the City. 15. We are responsible for compliance with the laws, regulations, and provisions of contracts and grant agreements applicable to us, including tax or debt limits and debt contracts; and we have identified and disclo.sed to you all laws, regulations and provisions of contracts and grant agreements that we believe have a direct and material effect on the determination of financial statement amounts, or other financial data significant to the audit objectives, including legal and contractual provisions for reporting specific activities in separate funds. Management Representation Letter December 13, 2010 Page 3 of 7 a~~ ~b~~.~ 16. There are no - a. Violations or possible violations of budget ordinances, laws and regulations (including those pertaining to adopting, approving, and amencling budgets), provisions of contracts and grant agreeinents, tax or debt limits, and any related debt covenants whose effects should be considered for disclosure in the financial statements, or as a basis for recording a loss contingency, or for reporting on noncompliance. b. Unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with Financial Accounting Standards Board (FASB) Statement No. 5, Accounting for Contingencies c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by FASB Statement No. 5. d. Reservations or designation of fund equity that were not properly authorized and approved. 17. As part of your audit, you prepared the draft financial statements and related notes and schedule of expenditures of federal awards. We have designated a competent management-level individual to oversee your services and have made all mariagement decisions and performed all management functions. We have reviewed, approved, and accepted responsibility for those finaricial statements and related notes and schedule of expenditures of federal awards. 18. The City has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral. 19. The City has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance. 20. We have followed all applicable laws and regulations in adopting, approving, and amending budgets. 21. The financial statements include all component units as well as joint ventures with an equity interest, and properly disclose all other joint ventures and other related organizations. 22. The financial statements properly classify all funds and activities. 23. All funds that meet the quantitative criteria in GASB Statement Nos. 34 and 37 for presentation as major are identified and presented as such and all other funds that are presented as major are particularly unportant to financial statement users. 24. Net asset components (invested in capital assets, net of related debt; rest~icted; and unrestricted) and fund balance reserves and designations are properly classified and, if applicable, approved. 25. Provisions for uncollectible receivables have been properly identified and recorded. 26. Expenses have been appropriately classified in or allocated to functions and programs in the statement of activities, and allocations have been made on a reasonable basis. Management Representation Letter December 13, 2010 Page 4 of 7 2n~~ z~~ 27. Revenues are appropriately classified in the statement of activities within program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal. 28. Interfund, internal, and intra-entity activity and balances have been appropriately classified and reported. 29. Deposits and investment securities are properly classified as to risk, and investrnents are properly valued. 30. Capital assets, including infrastructure assets, are properly capitalized, reported, and, if applicable, depreciated. 31. Required supplementary information (RSI) is measured and presented within prescribed guidelines. 32. With respect to federal award programs: a. We are responsible for complying and have complied with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizc~iions. b. We have, in accordance with OMB Circular A-133, identified in the schedule of expenditures of federal awards, expenditures made during the audit period for all awards provided by federal agencies in the form of grants, federal cost-reimbursement contracts, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other assistance. c. We are responsible for complying with, and have complied with in all material respects, the requirements of laws, regulations, and the provisions of contracts and grant agreements related to each of our federal programs and have identified and disclosed to you the requirements of laws, regulations, and the provisions of contracts.and grant agreements that are considered to have a direct and material effect on each major federal program. d. We are responsible for establishing and maintaining, and have established and maintained, effective internal control over compliance requirements applicable to federal programs that , provides reasonable assurance that we are managing our federal awards in compliance with laws, regulations, and the provisions of contracts and b ant agreements that could have a material effect on our federal programs. We believe the internal control system is adequate and is functioning as intended. Also, no changes have been made "in internal control over ~ compliance or other factors to the date of this letter that might significantly affect internal control, including any corrective action taken with regard to reportable conditions (including material weaknesses) reported in the schedule of findings and questioned costs. We have made available to you all contracts and grant agreements (including amendments, if any) and any ot~ler correspondence with federal agencies or pass-through entities relating to major federal programs. Management Representation Letter December 13, 2010 Page 5 of 7 ~~~~zZ~. f. We have received no requests from a federal agency to audit one or more specific programs as a ma~or program. g. We have complied, in all material respects, with the compliance requirements, including when applicable, those set forth in the OMB Circular A-133 Complic~nce Supplement, relating to federal awards and have identified and disclosed to you all amounts questioned and any known noncompliance with the requirements of federal awards, including those resulting from other audits or program reviews. h. Amounts claimed or used for matching were determined in accordance with relevant guidelines in OMB .Circular A-87, Cost Principles for Stc~te, Locc~l, c~nd Tribc~l Governments, and OMB's Uniform Administrative Requirements for Grccnts c~nd Cooperative Agreements to State and Local Governments. i. We have disclosed to you our interpretation of compliance requirements that may have varying interpretations. j. We have made available to you all documentation related to the compliance requirements, . including~information related to federal program financial reports and claims for advances and reimbursements. k. Federal program financial reports and claims for advances and reimbursements are supported by the books and records from which the financial statements have been prepared. l. We have charged costs to federal awards in accordance with applicable cost principles. m. The copies of federal program financial reports provided you are true copies of the reports submitted, or electronically transmitted, to the respective federal agency or pass-through entity, as applicable. n. We have monitored subrecipients to determine that they have expended pass-through assistance in accordance with applicable laws and regulations and have met the requirements of OMB Circular A-133. ` o. We have taken appropriate action, including issuing management decisions, on a timely basis after receipt of subrecipients' auditor's reports that identified noncompliance with laws, regulations, or the provisions of contracts or grant agreements and have ensured that subrecipients have taken the appropriate and timely corrective action on findings. p. We have considered the results of subrecipient audits and have inade any necessary adjustmerits to our books and records. q. We are responsible for and have accurately prepared the stunmary schedule of prior audit findings to include all findings required to be included by OMB Circular A-133 and we have provided you with all information on the status of the follow-up on prior audit findings by federal awarding agencies and pass-through entities, including all management decisions. r. We are responsible for and have accurately prepared the auditee section of the Data Collection Form as required by OMB Circular A-133, and we are responsible for preparing and implementing a corrective action plan for each audit finding. Management Representation Letter December 13, 2010 Page 6 of 7 Zo~ ~zz.~ s. We have disclosed to you all contracts or other agreements with service organizations, and we have disclosed to you all communications from the service organizations relating to noncompliance at the service organizations. 33. No events, including instances of noncompliance, have occurred subsequent to the balance sheet date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements or in the schedule of findings and questioned costs • V~ Signed. , Title: /~ t~i~~n.s~ro.~;.te ~r~;ctS k~ irc~o~ Management Representation Letter December 13, 2010 Page 7 of 7 City of -Dublin Summary of Audit Differences Fiscal Year Ended June 30, 2009 Uncorrected Audit Differences: NONE Conected Audit Adjusting Journal Entries: ZL~ l~2Za-- NONE ~~.~ o~ oU~~ f ?, t l~ Z.~.~. ~,; ~'~ ;~ CITY MANAGERS OFFICE 1`~~-~~Z AUDIT AD-HOC SUBCOMMITTEE INFORMATION ~~ ~ ~ , ~~LlFOR~~~ MEETING OF DECfMBER 14, 2010 DATE: December 14, 2010 -TO: Ad-Hoc Audit Subcommittee: Mayor Sbranti and Councilmember Hildenbrand FROM: Joni Pattillo, City Manager SUBJECT: PROPOSED ALLOCATION OF RESERVES IN JUNE 30, 2010 CAFR (Prepared By: Paul S. Rankin, Administrative Services Director) , ..................................................................................... GASB 54 will become effective for the year ending June 30, 2011. In order to start preparing for the changes, Staff presented the City Council with conceptual designations for allocating General Fund balance at a meeting on April 20, 2010. Based on that input, attached is a revised breakdown accommodating the actual June 30, 2010 results. ~ Once GASB 54 becomes effective modifications will need to be in place prior to the close of the Fiscal Year and where appropriate must be approved by the City Council. Backqround The following outline describes the five new classifications which will be allowable for presentation of reserves in upcoming financial statements: 1) Nonspendable (Inherently nonspendable based on the form of the asset or a requirement to remain in tact) ^ Resources that by their very nature cannot be spent (e:g., prepaid rent, Inventory) . . • Resources that are not yet available for spending (e.g., long-term portion of loans receivable) ^ Resources externally restricted to a purpose narrower than the fund (Cemetery Endowment) 2) Restricted (Net fund resources subject to externallv enforceable leqal restrictions~ ^ Externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments. ^ Imposed by law through constitutional provisions or e.nabling legislation. ^ Note that there is no need for the limitation to be narrower than the purpose:of the fund. ATTACHMENT 4 G:\Audit\PY 09-10 A~uiual Audit~~enda Statements\Ad-Floc Committee\Meetin~\memo_CM_Desi~_Fund_Qa112_b.doc TO: Ad-Hoc Audit Subcommittee ~~ a_u ~~~ December 14, 2010 RE: PROPOSED ALLOCATION OF RESERVES IN JUNE 30, 2010 CAFR Page 2 ^ Examples would include special revenue funds which have a legal restriction imposed by external sources (e.g., grant funds, gas tax, etc.) 3) Committed (Self-imposed limitations based on formal action of qoverninq bodv) ^ Must occur before the end of fiscal year. ^ Can only be changed by action of Governing body. ^ Examples in this category would be similar to designations made in the past by the City Council (e.g. the establishment of a reserve to construct the Historic Park expansion, or Emerald Glen Aquatic Center scope change, etc.) 4) Assiqned (A limitation based on intended use authorization to assiqn may be dele_ atq ed by the City Council - similar to designations expressinq intent) ^ Intent would have to be established at either the highest level of decision making, or by a body (e.g., finance committee) or an official (i.e. City Manager) designated for that purpose. ^ Examples in this category would be somewhat of a change since the designations need to be made before the end of the Fiscal Year. In the past, the Staff could present recommendations for approval by the City Council after the close of the Fiscal Year. There may be appropriate items that could be delegated to Staff (City Manager or Administrative Services Director (e.g. accrued leave, carry-over appropriations, etc.) 5) Unassiqned (Available for anv purpose) ALLOCATIONS IN THE JUNE 30, 2010 CAFR Attached is an outline of the General Fund designations in the same order as the categories discussed above. General Fund balances do not carry a designation of "Restricted" unless there were external third party restrictions imposed. None of the current General Fund balances are subject to that level of restriction. The attached report includes a description of any special goals or targets for the identified reserves, along with the June 30, 2010 balance. KEY ITEMS The following are key items to note as you review the material with emphasis on changes that occurred since the preliminary presentation to the City Council April 20, 2010: a) Stormwater Fund Created - The City has previously retained balances in the General Fund that are required to be used for certain Stormwater activities. A new fund was G:\Audit\FY 09-10 Annual Audit~laenda S[atemcnts~Ad-Hoc Committee\Meetin~\memo_CM_Desi~_Fund_Bal l2_6.doc TO: Ad-Hoc Audit Subcommittee a~~~~~~' December 14, 2010 RE: PROPOSED ALLOCATION OF RESERVES IN JUNE 30, 2010 CAFR Page 3 established and $439,248 reported in the General Fund (2009 CAFR) was moved to the new fund. b) Internal Service Fund (ISF) Buildinqs Contribution - As part of the April report the need to account for additional buildings in an ISF was noted and a recommended $3 million contribution was proposed. This was one-time funds that were allocated to the Internal Service Fund to provide a funding source for building components over the long term. The $3 million was moved from the General Fund to the Building ISF. As of June 30, 2010 the Building ISF has $6.5 million in funding available. + c) Net Chanqe From 2010 Operations - The net change in operations for 2010 resulted in an additional $2.3 million to be allocated. ~ d) Additional Chanc~es - There are a number of other changes that required adjustments to the designations (i.e. the actual amount needed for the Fallon Park Advance was less than projected; Collection of repayments from the Fire Impact Fee and PERS Side Fund Advance reduced amounts reported in 2009; the unrealized market value adjustment on investments was less in 2010 than in 2009; etc.) e) PERS SIDE FUND - As. of June 30, 2010 our PERS Side Fund repayment to the General Fund is approximately $2.6 million owed. The City is contributing 4.31 % of PERS payroll annually towards repayment to the General Fund. fl Economic Stability Reserve - It was not necessary to tap this reserve and it remains in tact at $5.868 million. The 2011 Budget projected a potential need to tap this reserve for $1.66 million. g) Separation of Downtown & Open Space Reserves - For many years the City has had a reserve of $1,378,235 designated for powntown and Open Space. Staff has presented the report showing two reserves established at $1 million each. One is labeled Downtown Public Improvements and the other Open Space. h) Emerald Glen Recreation & Aquatic Center Increased Scope - The balance includes an additional of $500,000 to this reserve. i) Emerqency Communications Svstem - The balance was increased to $1 million as presented in the April 20, 2010 Staff Report. j) Increased Fire Retiree Medical - In addition to the $3.5 million recommended in the April 20t" report an additional $1 million was added. This brings the total reserve to $4.5 million and estimates of the obligation are $8.6 million. ~ k) Increased Catastrophic Loss - An additional $1.57 million was added to this designation beyond the $6.85 million presented in April. This establishes the reserve at $8.42 million. G:\AuditU~Y 09-10 Annual Audit~Agenda Statements~ld-Hoc Commi[tee\Meetin~a\memo_CM_Desi~_Fund_Ba112_6.doc TO: Ad-Hoc Audit Subcommittee °~ ~ ~~ ~' ~ ~"° December 14, 2010 RE: PROPOSED ALLOCATION OF RESERVES IN JUNE 30, 2010 CAFR Page 4 The targeted funding goal was increased from 10% to 15% of the book value of assets. At 15% the target for this reserve is approximately $10.29 million. I) Innovations / New Opportunities Increased -The April Report suggested a total of $10.125 million, which is what is presented. m) Fallon Sports Park Advance (Less) - The amount the General Fund was required to advance was less than the amount reported last year, due to lower construction costs and higher than expected revenue in the Public Facility Fee Fund. n) Historic Park Adjusted For July 2010 Appropriation - The existing Historic Park reserve was reduced based on expenditures in Fiscal Year 2010 and increased by $767,763 appropriated in July 2010 for a replacement contractor. o) TVTD Advance West BART Station - With the final $1,250,000 payment due to BART from Local Share TVTD funds, Staff expect a shortfall of approximately $1 million on the date the payment is due. A reserve of $1 million is established for this advance. This will be paid back with interest over time, based on the collection of TVTD funds. p) Civic Center Expansion (Added Funds For Generator) - In addition to reducing the reserve for design expenses incurred in Fiscal Year 2010, $400,000 was added to this reserve to allow the replacement Generator project to proceed. The current Civic Center CIP identifies that the Fiscal Year 2011 expenditures will be related to the security system and evaluating building systems in preparation for a future expansion. q) Accrued Leave = Annually the Finance Department examines existing balances for General Leave and Compensatory Time hours and their value. Depending on employees who may have left the organization and the use of leave this reserve can fluctuate. The June 30, 2010 balance only increased by $10,730 (Reserve at June 30, 2010 $802,311). r) Investment Market Value Adjustment - The reserve is $817,492 less than the prior year. s) Interest Rate / Investment Volatilitv Protection - This reserve is new and is proposed to protect against service impacts as a result of underperForming investments. If General Fund Interest Revenue was less than 95% of the Budget a reduction would be made (provided the General Fund Expenses exceeded Revenues). The cost of City operations are also impacted by investment perFormance in terms of PERS contribution rates and OPEB Retiree Medical contributions. The reserve could be used to fund contributions when the increase is more than 1%. It is recommended that as part of the use of the reserve for that purpose, that a long term plan be prepared identifying how long the reserve will contribute towards retiree obligations. G:\Audit\~Y 09-10 Annu~l Audit~Qenda StatementsWd-Hoc Committee\Meetina\memo CNI Desia Pund Ba112 6.doc TO: Ad-Hoc Audit Subcommittee December 14, 2010 RE: PROPOSED ALLOCATION OF RESERVES IN JUNE 30, 2010 CAFR Page _5 ~~~~~.~ t) Cash Flow Reserve - As presented in April it was suggested that the City identify a minimum of two months of reserves with a goal to reach four months. As the City shifts to looking at grant opportunities and delays occur in some state payments (such as gas tax payments), having cash flow will be important. Based on Operating Expenses in the Fiscal Year 2011 Budget (All Funds) a 2 Month cushion is $$8.54 million and 4 Month cushion is $17.08 million. The reserve is proposed at $9,360,000. u) Service Continuity Obli_qation - This was. proposed in the April 20, 2010 City Council Report to be established at $1 million. Based on the actual year - end results it was increased by $350,000. This was calculated looking at the permits issued between April - June for tract housing (no large commercial or multifamily permits were issued). The $350,000 represents approximately 50% of the tract housing permit revenue in April and May and 100% for the month of June. It is proposed that long term the City continue to develop this reserve with a goal to have a balance which represents 125% of the budgeted Building and Safety cost. v) Unassigned - A small amount ($3,960) would be reported as unassigned as of June 30, 2010. In the attached policy.it is proposed to have any unassigned amounts be allocated to the cash flow reserve, provided the Target has not been met. How The Chanqes Will Appear In The June 30, 2011 CAFR The footnote section. of the report can still contain a detailed listing. An example of the difference in the presentation, using June 30, 2010 numbers is shown below: CURRENTFORMAT Fund Balance Reserved $ 5,922,446 Unreserved, designated reported in: General Fund $55,012,828 Total fund balance $61,012,828 NEW FORMAT Fund Balances Unspendable Restricted Committed Assigned Unassigned Total Fund Balances $94,160 $0 $38,307,935 $22,606,773 $3,960 $61,012,828 G:\Audit\PY 09-10 Annual Audit~A~endaSta[ementslAd-Hoc Committee\Meeting\memo_CM_Desig_Fund_Ba112_6.doc TO: Ad-Hoc Audit Subcommittee ~ ~~~~ a~ December 14, 2010 RE: PROPOSED ALLOCATION OF RESERVES IN JUNE 30, 2010 CAFR Page 6 Next Steps In preparing for the June 30, 2011 CAFR, Staff will make further refinements to the attached descriptions of the General Fund designation of reserves. Any input from the Committee will be helpful. The final document will be presented to the City Council along with the June 30, 2010 CAFR on December 21, 2010 to be formally adopted. Cc: Chris Foss, Assistant City Manager Paul Rankin, Administrative Services Director Vivian Gong, Finance Manager Attachment: General Fund Balance Analysis Narrative G:\Audit\FY 09-10 Annual Audit~~enda Statements~Ad-I-loc Commiriee\Meeting\memo_CM_Dcsia_Pund_Ba112_6.doc GENERAL FUND BALANCE ANALYSIS NARRATIVE - As presented in June 30, 2010 CAFR GENEARAL FUND RESERVE FRAMEWORK EXPENDITURE # ITEM CATEGORY DESCRIPTION AUTHORITY TO AUTHORIZATION SPECIAL NOTES / Goals, Balance ADJUST Adjustment priority, etc. 6/30/2010 REQUIRED 4 Prepaid Expenditures Nonspendable Prepaid items recorded in Accounting System City Manager - Annuall N/A N/A $34,160 Cemeter y 000 endowment interest earned from this $60 Interest only on Annual interest is offset by endowment Nonspendable , balance offsets maintenance cost. No change budgeted Cemetery Cemetery Maintenance .$60,000 Maintenance. ex enses. Use of this reserve shall be evaluated by Staff and presented based on a variance in revenues or expenditures which suggest severe financiai hardships resulting from unforeseen Economic Reserve established to ailow for a balanced changes in revenues and/or Stability Committed budget during in the event of economic City Council City Council expenditures. The City Council $5,868,847 uncertainty. may appropriate these reserves to fund operational costs and other non-emergency capital costs in order to facilitate the stable and efficient delivery of City services or facility maintenance. Expenditure from this Establish designation would occur as a Downtown Public Reserve established to fund pubiic City Council - Approve result of approved appropriation Imprvts Seed Committed improvements within the Downtown Specific City Council gud et / CIP 9 ~n the Operating Budget or as a $1,000,000 Funding Plan Area Capital Project. The appropriation will be at least $50,000. sewataw~~-~ O en P Local funds that can be used to acquire open City Council - Approve Any proposed use would be S ace p Committed space, which may be done in conjunction with City Council Budget / CIP presented to the City Councii for $1,000,000 other a encies. a ro riatibn. Prior to establishing the current Affordable Affordable Committed Housing Fee, the City Council established a City Council City Council - Approve $1 000 000 Housing reserve to be used for future Affordable Budget / CIP , , Housin activities. Emerald Glen Rec & Aquatic Reserve for features to be added to a new City Council - Approve Goal is $6.93 million based on Center Scope Committed aquatic center, beyond what was described in City Council Budget / CIP , 2007 estimate of cost. $1,500,000 Chan e the Master Plan and fee program. Attachment to 6/14/10 Audit Ad-Hoc Committee Report Page 1 of 6 X~ J ~ ~ P~ ~ GENERAL FUND BALANCE ANALYSIS NARRATIVE - As presented in June 30, 2010 CAFR GENEARAL FUND RESERVE FRAMEWORK EXPENDITURE AUTHORITY TO SPECIAL NOTES / Goals, Balance # ITEM CATEGORY DESCRIPTION AUTHORIZATION ADJUST Adjustment priority, etc. 6/30/2010 REQUIRED 10 11 12 13 Reserve for costs for radio replacements and . Backbone infrastructure costs Emergency backbone infrastructure required with the identified October 2010. Communications Committed development of an emergency . City Council City Council - Approve Replacement radios will occur in $~.000,000 System communications system (Police, Fire, Public gudget / CIP a future year and will include Works frequencies in a regional effort to contribution from ISF Equipment standardize). Replacement. Current Fire Dept (ACFD & DRFA) retiree Goal is the $8.6 million. Since Fire Retiree medical benefits are funded ion a pay as you City Council - Approve the obligation resides with Medical Committed go basis. As presented in a report to the City City Council Budget / CIP another agency, no expenditure $4,500,000 Council 7/20/10 estimates of the full cost $8.6 is planned until a long term million. fundin plan is established. The reserve is to be used to recover from Goal 15% of book value of Catastrophic catastrophic losses which are unexpected buildings prior to accumulated Facility / f I t t and more than $500,000 in costs, or when a L l di h l t b d d Thi City Council - Special depreciation. City self- insures o uake 100 / of the risk of earth n ras ruc ure Committed oca sas er as een ec are . s may City Council / Emergency q . o $$,420,000 Loss & City be used for short term recovery and Appropriation Also have infrastructure other Business continued business operations pending the than buildings vulnerable to Recovery reimbursement from insurance or grants - to catastrophic events. Current the extent insurance or grants exist. Target approx: $10.29 million. Established for potential needs that may have The presentation of any Innovations & an up-front cost , but would provide longer City Council - Approve proposed use of these funds New Committed term benefits and I or potential operating cost City Council Budget / CIP wouid address the long term cost $10,125,000 Opportunities reductions ~ benefit. Goai is to maintain at . least $5 million for this purpose. . As project expenses are incurred this will be reduced. The Historic Park C itt d Reserve for the development of the expanded Hi i k City Council - Approve Schaeffer Ranch Development f f i Development omm e stor c par including additional costs for a City Council Budget / CIP Agreement provides or und ng $1,784,229 replacement contractor. for future phases, which when collected will be added to the reserve. Future Maintenance Committed Reserve to rehabilitate the 84 Lumber site for City Council City Council - Approve Reserve established based on costs to acquire and refurbish $664,602 Facilit use as a Maintenance Facility. gudget / CIP site. Attachment to 6/14/10 Audit Ad-Hoc Committee Report ~ OP ~ Page 2 of 6 ~ R- GENERAL FUND BALANCE ANALYSIS NARRATIVE - As presented in June 30, 2010 CAFR GENEARAL FUND RESERVE FRAMEWORK # ITEM CATEGORY DESCRIPTION AUTHORITY TO EXPENDITURE AUTHORIZATION SPECIAL NOTES / Goals, Balance ADJUST Adjustment priority, etc. 6/30/2010 REQUIRED 14 15 16 17 18 The City Council has studied plans to expand in order to accommodate the provision of services to a growing community. Costs to accommodate new growth may be added to Civic Center Committed impact fee programs, a designated General Fund reserve to fund design and an initial City Council City Council - Approve As project expenses are incurred $1 445 257 Ex ansion p phase of high priority improvements was Budget / CIP this will be reduced. , , established. This was increased by $400k (less $131,148 in 2010 expenses) to address the critical need to proceed with insuring the site has emergency power. Accounting standards require the financial statements to show all investments at market Annually adjusted based on Investment value as of the end of the fiscal year. Any City Manager - Market Value as of June 30th. Market Value Assigned difference in Market Value is also recorded on Annually N/A The form of this balance is an $1,516,569 Adjustment the statement of Net Assets. The City had a unrealized gain and therefore it gain which was never realized and therefore, cannot be spent. the funds are not available for expenditure. Annually interest accrued is Advance Fire ( Long term advance to fund Fire Station No. City Manager - added to the balance and Fire Im act Fees p ~ Assigned 17 and is repaid with interest based on Annually N/A Impact Fees collected in the Fire $1,808 886 ~ Impact Fees collected. Impact Fee Fund are used to reduce the balance•outstandin The current recovery is based on contributing 4.31 % of PERS The City elected to pre-pay its Cal-PERS side N/A - The reduction salaries. If the rate is proposed Advance (PERS Assigned fund obligation from reserves. An internal City Manager - each year results in a by Staff as part of the annual 642 846 $2 Side Fund) service charge is made each year to repay Annually change in the overall budget to be changed, the , , the Reserves. fund balance. impact will be described and approved by the City Council as part of the Budget adoption. Capital projects started in one Fiscal Year, The City Council would authorize CIP Carr overs y Assi ned 9 but not com leted. Chan es are based on p 9 City Manager - City Council Staff to administratively complete $203 507 project status at the end of the year. Annually authorizes the carry-over as part of the , annual bud et ado tion. Attachment to 6/14/10 Audit Ad-Hoc Committee Report ~ ~ ~ Page 3 of 6 ~p~ tv N ~ GENERAL FUND BALANCE ANALYSIS NARRATIVE - As presented in June 30, 2010 CAFR GENEARAL FUND RESERVE FRAMEWORK ~ AUTHORITY TO EXPENDITURE SPECIAL NOTES / Goals, Balance # ITEM Ci4TEGORY DESCRIPTION ADJUST AUTHORIZATION Adjustment priority, etc. 6/30/2010 REQUIRED 19 20 21 22 Provided that at year end an activity has budgetary savings in non-personnel accounts, and Key program expenditures that were unable provided that the total Fund Operating Carry- Assigned to be completed in the previous fiscal year. City Manager - City Manager Revenue exceeded $171,100 overs The carry-over eliminates the need to fund Annually Approval Expenditures, the City Manager the expenditures from current revenue. may authorize a carry-over, which will be reported to the City Council for informational purposes. Annually interest accrued is Fallon Sports N/A - The reduction added to the balance and Public Park Public Assigned Advance to the Public Facility Fee Fund to be City Manager - each year results in a Facility Fees collected in the $1,376,554 Facility Fee repaid as fees are coilected with interest. Annually change in the overall Public Facility Fee Fund are Advance fund balance. used to reduce the balance outstandin . Advance for A payment is due in 2010/11 of BART West The City will owe $1.25 million when the West $1.25 million. To the extent that Contribution (To Assigned Dublin / Pleasanton station opens. Until City Manager - N/A MD funds are unavailable the $1,000,000 Be Repaid from sufficient TVTD fees are collected it will be Annually City will advance funds with local share necessary to advance funds. interest TVTD) . - ~ Annually at year end a The represents the value of the obligation for City Manager - calculation is done based on the Accrued Leave Assigned accrued leave benefits. Annually N/A current value of 100% of General $802,311 Leave and Compensatory Time Off. AJ ~ ~ Attachment to 6/14/10 Audit Ad-Hoc Committee Report Page 4 of 6 ~ ~ GENERAL FUND BALANCE ANALYSIS NARRATIVE - As presented in June 30, 2010 CAFR GENEARAL FUND RESERVE FRAMEWORK EXPENDITURE # ITEM CATEGORY DESCRIPTION AUTHORITY TO AUTHORIZATION SPECIAL NOTES / Goals, Balance ADJUST Adjustment priority, etc. 6/30/2010 REQUIRED 23 24 " Minimum of two months operating expenditures with a ~ goal to build up to 4 months. [ 20ll Operating Budget = $51,253,540 Divided by 12 months = $4,271,128 per mo. The receipt of City revenue is not evenly 2 Months = approximately Unrestricted For distributed throughout the year. In addition, City Manager - ~ $8,54 inillion and 4 months = Cash Flow Assigned the use of grant funding is often treated on a Annually N~ A approximately $17.08 tnillion $9.360,000 Purposes reimbursement basis making it prudent to have a cash flow reserve. ]. City Manager shall be authorized to designate amounts due to net changes in operation that would otherwise appear as Unassigned, provided the target is not reached. Goal will be to ultimately have 125% Building & Safety Operating Cost in Reserve. Additions will be made when In any year in which General Fund revenue exceeds the General Fund expenses, then Staff will Due to timing differences Permit Revenue Expenses exceed examine permits issued for tract Service may be collected in one year with a majority City Manager- revenue, this fund housing, large commercial, or Continuity Assigned of the expense occurring in a future year. Annually may be used to the multi-family residential. Assume $1,350,000 Obligations This reserve may be used in cases where extent that Building 50% of April and May revenue Building Division expenses exceed revenue. Permit Revenue does from these activities and 100% o not off-set Building June revenue will be related to Division Expenses expense in subsequent year. Reductions will be calculated by Staff when Building Department Revenue does not meet 90% of Division expenses. Attachment to 6/14/10 Audit Ad-Hoc Committee Report Page 5 of 6 Xl 7/ •-- ~ ~ P~ ~ GENERAL FUND BALANCE ANALYSIS NARRATIVE - As presented in June 30, 2010 CAFR GENEARAL FUND RESERVE FRAMEWORK EXPENDITURE # ITEM CATEGORY DESCRIPTION AUTHORITY TO AUTHORIZATION SPECIAL NOTES / Goals, Balance ADJUST Adjustment priority, etc. 6/30/2010 REQUIRED 25 26 Interest rates.and investments impact City If the General Fund resources both in terms of revenue and Expenses exceed Use of reserve for Interest rate expenditures. Revenue from reserves is used Revenue and the fluctuations on the general fund to offset operating costs. Investment results interest received is investments are based on by CaIPERS impact the City contributions to more than 5°/o below investment performance Interest Rate / Retirement and Retiree Medical funding. This the Budget, the compared to Budget. Using the investment reserve can be used to bridge the impact of City Manager - reserve will contribute reserve to fund PERS or OPEB Volatility Assi ned 9 lar e swin s in the market. g 9 Annually to the current ear y obligations shall be budgeted. $2,375,000 Protection financing. Only proposed when the rate Appropriations increase is more than 1°/o. Shall towards OPEB or inciude a long term plan PERS expenses shall identifying the term in which the be budgeted and reserve is expected to contribute approved by the City towards the operating budget. Council. For June 30, 2010 an amount is - recorded as Authorized Per GASB 54 Expenditures. For June 30, 2011 Unassi ned 9 Residual amount not Available for an y purpose. N/A N/A the intent will be to report 960 $3 in another category. residual amounts under the , Unrestricted for Cash Flow purposes provided the target is not reached. Reconcilliation To June 30, 2009 Balance Balance June 30, 2009 62,123,358 Less : Transfei fo new Stormwater Fund (439,248) Transfer to Internal Service Fund (3,000,000) Add: Net Change In Operations 2,328,718 (Funding Less Expenses) Ending Balance June 30, 2010 61,012,828 Attachment to 6/14/10 Audit Ad-Hoc Committee Report Sub-Totals Bv Cateqorv Reauired In 2011 CAFR Unspendable Restricted Committed Assigned Unassigned BALANCE 6/30/2010 General Fund $94,160 $0 $38,307,935 $22,606,773 $3,960 $61,012,828 ~ ~ ~ Page 6 of 6 ~ ~ ~l ~