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HomeMy WebLinkAbout8.1 Comp Annual Fin Rpt CAFRor 19 82 /ii � 111 DATE: TO: FROM: STAFF REPORT CITY COUNCIL December 18, 2012 Honorable Mayor and City Councilmembers Joni Pattillo City Manager""' CITY CLERK File #310 -30 SUBJECT: Comprehensive Annual Financial Report (CAFR) and Annual Audit For The Fiscal Year Ending June 30, 2012 And Supplemental Reports Completed By The Auditors 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, 2012. This report includes financial statements prepared by City Staff along with the audit prepared by Maze and Associates Accountancy Corporation (Maze), 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 Auditors have also completed supplemental reports related to: 1) Federal Grant — Single Audit; 2) A compliance audit of Alameda County Transportation Measure B Funds; 3) Compliance with Alameda County Transportation Commission Vehicle Registration Fund (ACTC -VRF) Program; and 4) A Review of the Annual Appropriations Limit Calculation. 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: Staff recommends that the City Council receive and file the reports. Submitted By Reviewed By Administrative Services Director Assistant City Manager Page 1 of 5 ITEM NO. 8.1 DESCRIPTION: The City of Dublin has compiled and published its Comprehensive Annual Financial Report (CAFR) for the Fiscal Year ending June 30, 2012. This report, which is included as Attachment 1, includes audited financial statements reviewed by Maze and Associates Accountancy Corporation (Maze). This firm is the independent auditor selected by the City Council and the current report for the Fiscal Year 2011/2012 Audit is the first year of services completed under a five year agreement approved by the City Council on April 17, 2012. The report includes financial information on revenues and expenditures for the entire Fiscal Year which started July 1, 2011 and ended June 30, 2012. AD -HOC AUDIT COMMITTEE REVIEW The Auditors met with the City Council Ad Hoc Audit Committee (Mayor Sbranti and Councilmember Biddle) on October 16, 2012 to provide the elected officials with an overview of the audit plan. The ad -hoc subcommittee also met with the Auditor on November 26, 2012 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 Maze. 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 $24.8 million. As will be discussed later in this report, it is important to understand that this change is on an entity -wide basis. It includes both capital assets as well as restricted funds. Page 2 of 5 Governmental Activities Item June 30, 2012 June 30, 2011 $ Change % Change Current and other assets $132,804,075 $110,207,898 $22,596,177 20.5% Notes receivable (See $10,427,971 $6,184,936 $4,243,035 68.6% Notes) Capital assets 433,548,888 433,779,703 (230,815) -0.1% Total assets 576,780,934 550,172,537 26,608,397 4.8% Current Liabilities 19,646,421 17,338,261 2,308,160 13.3% Noncurrent Liabilities 807,642 1,296,799 (489,157) -37.7% Total Liabilities 20,454,063 18,635,060 1,819,003 9.8% Invested in capital assets 433,548,888 433,779,703 (230,815) -0.1% Restricted 36,714,724 21,453,867 15,260,857 71.1% Unrestricted (See Note 8 to Financials 86,063,259 76,303,907 9,759,352 12.8% for Classification) Total net assets $556,326,871 $531,537,477 $24,789,394 4.66% Page 2 of 5 Total Assets — It is important to consider that not all elements of the reported Total Assets represent unrestricted assets. The amount reported as Total Assets includes $433.5 million (78% of the total assets) which represents investments in capital assets (e.g. land, infrastructure, buildings, and equipment). These are not assets that are available for future spending. Further, $36.7 million (6.6% of the total assets) are assets subject to external restrictions on how they can be used. As shown in the Table above, the restricted net assets increased by approximately 71 % as compared to the balance reported as of June 30, 2011. A significant portion of this increase represents development impact fee funds which are restricted in how they can be used. Included in the Management Discussion and Analysis section of the CAFR is additional detail discussing the Changes in Net Assets (Attachment 1 pages 3 to 17). 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 start of their field testing as well as at the conclusion of the audit to review the final report. The Auditor Report to the City Council 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 was one item noted regarding the maintenance of regular schedules for completion of bank statement and accounts receivable reconciliation. At the time of the final audit, Staff was current with both activities. The delay in completing the reconcilements resulted from Staff turnover and training required on City banking and computer systems. Finance Staff have implemented internal deadlines and reviews to ensure this does not occur in the future. DESIGNATIONS OF FUND BALANCES On June 19, 2012, the City Council adopted Resolution No. 108 -12 which amended the policy for the establishment of reserves. This policy conforms to required standards enacted by the Governmental Accounting Standards Board (GASB). A listing of the reserves established in accordance with this policy is shown on page 60 of the CAFR (Attachment 1). The format contains five categories of fund equity as summarized in the following Table: FUND EQUITY AS OF JUNE 30, 2012 Designation General Fund Other Funds TOTAL Non - Spendable $ 3,433,886 $ 3,433,886 Restricted $38,073,638 38,073,638 Committed 24,176,650 24,176,650 Assigned 22,080,677 22,080,677 Unassigned (1,358,914) (1,358,914) Unassigned — Unrealized gain on investment 1,013,252 1,013,252 Unassigned — Cash Flow (Min. per policy is 2 months with a target of 4 months) Current is at 2.8 months. 14,059,283 14,059,283 Total $64,763,748 $36,714,724 $101,478,472 Page 3 of 5 As shown above, although the General Fund contains approximately $14.1 million in the "Unassigned" category for Cash Flow, this is in accordance with the City Policy and is considered prudent financial planning. The policy states that this a minimum amount equal to two months of operating expenditures, with a goal to reach a total of four months of operating expenditures. The current balance represents the equivalent of approximately 2.8 months of operating reserves, which is only slightly more than the 2.6 months reported one year ago. The City Council adopted policy has a goal to reach a target equivalent to 4 months of expenditures. The second component of the "Unassigned" general Fund amount is an unrealized gain on investments. The Accounting rules require the City to record investments at market value as of June 30, 2012. If the City had actually sold the investments, it would have had $1,013,252 in additional resources. Since the City did not sell its securities, it is prudent to record an entry that allows users of the financial statements to recognize that this portion of the Net Assets is not available and is presented for financial statement purposes only. The "Unassigned" component in the Other Funds, which is a negative $1,358,914, represents the General Fund advance to the Fire Impact Fee Fund. 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) Federal Grant — Single Audit; 2) A compliance audit of Alameda County Transportation Measure B Funds; 3) Compliance with Alameda County Transportation Commission Vehicle Registration Fee (ACTC- VRF) Program; and 4) A Review of the Annual Appropriations Limit Calculation. These reports are described below and included for informational purposes. Single Audit Report — Federal Grants (Attachment 4) The City is required to obtain a Single Audit if annual expenditures of Federal Funds exceed $500,000. The City had $878,722 in expenditures of Federal Funds for the Fiscal Year ending June 30, 2012. The report includes a Report on Internal Control as well as a Report on Compliance. The findings resulted in no audit findings relative to the federal programs reported by the City. Alameda County Transportation Commission — Measure B Funds Report (Attachment 5) The Alameda County Transportation Commission provides local funding under two local programs. One is related to Local Street Improvements and the other is Bicycle and Pedestrian Improvements. In addition the City was the lead agency for the construction of the Alamo Canal Trail project as a separate regional project funded with Measure B Funds. The report found that, based on the information reviewed and presented, that the expenditures were materially in compliance with the program requirements. A new element of the financial report submitted to ACTC for the period ending June 30, 2012 is an assignment of "Reserve" Program categories. The Funding Agreement with ACTC requires the allocation of the ending balances among program reserve categories, in order to track the timely expenditure of funds. Based on current appropriations, 100% of the Local Streets balance ($841,851) is assigned to a Capital Reserve for three projects: #960027 Golden Gate Drive; #969103 — Completion of the 2011/2012 Overlay; and #969104 Fiscal Year 2012/2013 Overlay. Based on current appropriations, $288,602 of the Bike / Pedestrian balance is assigned to the Capital Reserve Page 4 of 5 Category for #960027 Golden Gate Drive; and $79,359 is assigned to an Operations Fund Reserve. Alameda County Transportation Commission — Vehicle Registration Fee Report (Attachment 6) Fiscal Year 2011 -2012 was the first year that the Alameda County Transportation Commission distributed local funding under the Vehicle Registration Fee Program (VRF). The revenue was not received until the final month of the Fiscal Year and, due to the uncertainty of timing, no expenses were budgeted from this revenue source in Fiscal Year 2011 -2012. The financial report submitted to ACTC report for the period ending June 30, 2012 is required to include an assignment of the fund balance to "Reserve" Program categories. The Funding Agreement with ACTC intends to use the allocation of the ending balances among program reserve categories, to track the timely expenditure of funds. As this is the first year of the program Staff has assigned 100% of the VRF balance ($233,130) to an Operations Reserve. The Fiscal Year 2012/2013 Budget appropriated funds from this source to support a portion of the maintenance costs for Traffic Signals. As part of future Budget planning and the update to the Capital Improvement Program, Staff will be evaluating recommendations regarding the on -going appropriation of this revenue source. Appropriation Limit Schedule Report (Attachment 7) State law requires the adoption of an Appropriations Limit ( "Limit ") which must be included in the Budget document. The City Council adopts the Limit by resolution and it is adjusted annually based on factors establish in State Law. The Limit applies only to appropriations that are funded by "proceeds of taxes ". The Limit for the City of Dublin is substantially more than the amount of revenue generated from taxes. The Auditors reviewed the calculation used to develop the $200,919,750 Limit as presented in the Fiscal Year 2012 -2013 Budget. There were no exceptions noted in the findings. NOTICING REQUIREMENTS /PUBLIC OUTREACH: A copy of the report was sent to Katherine Yuen, Partner Maze and Associates. ATTACHMENTS: 1. City of Dublin Comprehensive Annual Financial Report — Fiscal Year 2011 -2012 2. Summary — Key Information Comprehensive Annual Financial Report For the Year Ended June 30, 2012 3. Memorandum On Internal Control and Required Communications For The Year Ended June 30, 2012 4. Single Audit Report (Federal Grants) 5. Alameda County Transportation Commission Measure B Funds (Street and Bicycle — Pedestrian) Report 6. Alameda County Transportation Vehicle Registration Funds (VRF) Report 7. Appropriation Limit Schedule Report Page 5 of 5 i�. 'A af .4 CITY OF DUBLIN, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2012 Prepared by FINANCE DEPARTMENT This Page Left Intentionally Blank INTRODUCTORY SECTION This Page Left Intentionally Blank CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2012 INTRODUCTORY SECTION: Table of Contents Letterof Transmittal ..................................................................................................................... ............................... i GFOACertificate of Achievement ............................................................... ............................... ............................vii Principal Officers ....................................................................................................................... .............................vw ... OrganizationalChart .................................................................................................................. ............................... ix FINANCIAL SECTION: IndependentAuditor's Report ................................................................................................... ............................... 1 Management's Discussion and Analysis .................................................................................. ............................... 3 Basic Financial Statements. Government -wide Financial Statements: Statementof Net Assets ............................................................................................. .............................21 Statementof Activities ............................................................................................. ............................... 22 Fund Financial Statements: Governmental Funds: BalanceSheet ......................................................................................................... .............................26 Reconciliation of the Governmental Funds - Balance Sheet with the Statement ofNet Assets ................................................................................................... ...:........................... 29 Statement of Revenues, Expenditures, and Changes in Fund Balances ............... .......:.....................30 Reconciliation of the Net Change in Fund Balances - Total Governmental Funds with the Statement of Activities ............................................................. .............................32 Statements of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual: GeneralFund .......................................:........................................................ .............................33 Affordable Housing Special Revenue Fund .................................................. .............................34 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2012 FINANCIAL SECTION (Continued): Proprietary Funds: Statementof Net Assets ..................................................................................... ............................... 36 Statement of Revenue, Expenses and Changes in Fund Net Assets ................... ............................... 37 Statementof Cash Flows .................................................................................. .............................38 Fiduciary Funds: Statement of Fiduciary Net Assets .................................................................... .............................40 Notes to Basic Financial Statements .......................................................................... .............................41 Supplemental Information: General Fund: Schedule of Budget Versus Actual Revenue by Sources.., .............. - ........................................... 76 Schedule of Budget Versus Actual Departmental Expenditures ...................... .............................79 Budgeted Major Governmental Funds Other than General Fund and Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual General Improvements Projects Capital Projects Fund .................................... .............................82 Community Improvements Projects Capital Project Fund ............................... .............................83 Parks Projects Capital Project Fund ................................................................................ .........._...84 Streets Projects Capital Project Fund ............................................................... .............................85 Public Facilities Projects Fees Capital Project Fund ......_ ....... ................... .... ........................ Fire Impact Fees Capital Projects Fund ........................................................... .............................87 Traffic Impact Fees Capital Projects Fund ....................................................... .............................88 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2012 FINANCIAL SECTION (Continued): Non -major Governmental Funds: CombiningBalance Sheets .................................................................................. .............................92 Combining Statements of Revenues, Expenditures, and Changes inFund Balances ............................................................................................ .............................98 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual ........................... ............................... ............................104 Internal Service Funds: Combining Statements of Net Assets ................................... ............................... ............................140 Combining Statements of Revenues, Expenses and Changes in Fund Net Assets .........................142 Combining Statements of Cash Flows ..................... ..............................: .............. ............................144 Fiduciary Funds: Statement of Changes in Assets and Liabilities — All Agency Funds ............. ............................148 STATISTICAL SECTION: General Governmental Activities Tax Revenues by Source and. Governmental Activities Tax Revenues by Source ............. ............................... ............................153 NetAssets by Component ........................................................... ............................... ............................154 Changesin Net Assets ............................................................... ............................... ............................156 Fund Balances of Governmental Funds ..................................... ............................... ............................158 Changes in Fund Balances of Governmental Funds .................. ............................... ............................160 Assessed Value and Estimated Actual Value of Taxable Property .......................... ............................162 Direct and Overlapping Property Tax Rates .............................. ............................... ............................163 Principal Property Taxpayers ............:....................................... ............................... ............................164 Property Tax Levies and Collections ......................................... ............................... ............................165 Directand Overlapping Dept ..................................................... ............................... ............................167 Legal Debt Margin Information ....:............................................ ............................... ............................168 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2012 STATISTICAL SECTION (Continued): Demographic and Economic Statistics ...................................... ............................... ............................170 Property Value, Construction and Bank Deposits ..................... ............................... ............................171 PrincipalEmployers ................................................................... ............................... ............................172 Full -time Equivalent City and Contract Government Employees by Function ........ ............................173 Operating Indicators by Function .............................................. ............................... ............................174 Capital Assets Statistics by Function ..... ............ ........................... ........ ....__...... ....._.._..._............... 175 Top25 Sales Tax Producers ...................................................... ............................... ............................176 Miscellaneous Statistical Data ................................................... ............................... ............................177 1 �i a ' October 26, 2012 DTCITY OFT Honorable Mayor and UBLIN BLI1V Members of the City Council Presented with this transmittal is the City of Dublin (City) Comprehensive 100 Civic Plaza Annual Financial Report (CAFR) for the year ended June 30, 2012. The Dublin, California 94568 Phone: (925) 833 -6650 information in this Comprehensive Annual Financial Report is prepared in P P P P Fax: (925) 833 -6651 accordance with Generally Accepted Accounting 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. Maze and Associates Accountancy Corporation, 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, 2012. The independent auditor's report has been included in this Comprehensive Annual Financial Report. 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 the separate Management's Discussion and Analysis (MD &A) narrative section, 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 City Council M oaso City y Managger er The City of Dublin was incorporated in 1982 and is located in Alameda County, (925) 833 -6650 a growing area in the eastern portion of the San Francisco Bay Area. In 2011, Community Development the City was named an "All- America City" by the National Civic League, one of (925) 833 -6610 Economic Development the nation's oldest and most prestigious civic organizations. In 2012, the City (925) 833 -6650 celebrated its 30'6 anniversary as an incorporated city. Finance /Admin Services (925) 83 Fire Prevention ntion The City has a permanent staffing level of approximately 86 full -time (925) 833 -6606 equivalent City employees and serves an estimated population of 46,785, with Human Resources (925) 833 -6605 estimated future population growth to 60,000 covering a land area of 14.62 P P 9 9 Parks& Community Services square miles. The City's strategic location offers opportunities for employers, (925) 556 -4500 retail outlets, and high quality residential neighborhoods. Police (925) 833 -6670 Public Works /Engineering The City operates under the Council- Manager form of government. Policy (925) 833 -6630 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 elected to a four -year term. The City Council is responsible for the City's ordinances, operating resolutions, adoption of the annual budget, hiring the Dublin City Manager and City Attorney and confirming the appointments made by the Mayor to commissions and committees. The City Manager is responsible for Ao- nwaeaary the following activities: implementing the policies, ordinances, and directives of 1 11,1 the City Council; overseeing the day -to -day operations of the City; and appointing the Directors of the City's departments. 2011 www.dubiin.ca.gov Current City services include: City Manager and Central Services (Human Resources), Administrative Services (Finance /Information Systems);; City Attorney; City Clerk; Police; Fire; Animal Control; Crossing Guards; Community Development (Building /Planning /Housing); Economic Development /Public Information; 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 121 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 options, which include 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 United States headquarters of Sybase (an SAP Company) and Carl Zeiss Meditec. In addition Oracle, Epicor Software, Fluor Enterprises, Micro Dental Laboratories, and others have corporate operations in the City; 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, Mazda, and Hyundai. Retail Sales are an obvious indicator of the general economic climate. The General Fund Sales Tax in Fiscal Year 2011/2012 increased by 15.6% over the amount collected in the prior year. This increase was primarily due to of new retailers including: Sports Authority; REI; and a second Target Store. The economic conditions statewide improved compared to the previous year. Throughout the State, automobile sales increased and because of the large number of new auto dealers located in the City, this trend had a positive impact on the revenue collected. Over 80% of the increased revenue was associated with the following three major sales tax classifications: Autos and Transportation, General Consumer Goods; and Business and Industry. Other positive gains in sales tax revenue resulted from higher gasoline prices and increased revenue from the "use tax" distributed through the State Sales Tax Allocation Pool. The City is proactive in monitoring retail sales activity and impacts on the general operating budget. After two consecutive years of decreased Property Tax Revenue, the City experienced an increase of approximately 1.3% for the Fiscal Year ending June 30, 2012 compared to the decrease of approximately 1% the previous year. If the revenue from Supplemental Taxes, Prior Year Taxes, and Penalties are excluded, the "Current' Property Taxes actually increased by 2.4% and added $509,003 in revenue over the previous year. As the real estate market adjusts and stabilizes, new sales will add value to the property tax roll. It Despite the overall economy, developers continued to complete new units (614 final residential units added in Fiscal Year 2011/2012, compared to 349 in the previous fiscal year). In addition, developers continued to obtain permits for the construction of new residential units resulting in permits for 932 new residential units issued during the Fiscal Year 2011/2012, compared to 313 the previous Fiscal Year. (Note the prior year number is net of demolition of 150 units at the Arroyo Vista project previously operated by the Housing Authority.) The City Council does not control property tax rates. These rates are an outgrowth of the 1978 voter approved Proposition 13. As new housing stock comes on line it is beginning to contribute to growth in the assessed valuation. Increased home prices are being helped by low interest rates that allow buyers to complete purchases. The growth in property values is expected to be less than at the peak of the real estate market. Based on State Law the County Assessor can apply an automatic adjustment to assessed values up to 2 %. The Actual rate applied has been 1 % or less including a negative adjustment in Fiscal 201012011. This has resulted in slower growth in assessed valuation than what was experienced in the past. The Fiscal Year 2012/2013 Budget was prepared based on continued positive growth including a 3.9% increase in property tax revenue, with the State Adjustment factors allowing for the full 2% automatic adjustment.. An economic forecast, prepared by Beacon Economics, suggests that, as the inventory of bank foreclosures is reduced there will continue to be a demand for housing options in the East Bay which has increased affordability compared to San Francisco and the South Bay. In terms of employment there is also positive news in economic forecasts for the region. A May 2012 report prepared for the East Bay Economic Development Alliance titled "Economic Outlook 2012" is available on their website www.eastbayeda.org. Among the information presented is the trend associated with job creation which is outpacing the State and national figures. The City of Dublin unemployment data, published by the State of California Employment Development Department for calendar year 2011, shows a local rate of 6.3% which was below the countywide rate of 10.4% for Alameda County. The stability of the City's funding and expenditures is also significantly impacted by State of California budget impacts and retirement system trends. The most recent State Budget was adopted without containing significant negative impacts on City of Dublin revenues. The City escaped any impacts of the decision by the State of California to dissolve Redevelopment Agencies, because the City of Dublin had not created an agency to enhance development. The City economic growth achieved in the City has been primarily market driven without the use of public debt. Further, at the November 2012 Statewide General Election, voters approved Proposition 30, which imposed certain tax increases in lieu of targeted budget cuts. The State legislature also took steps to begin addressing pension reform in an effort to address costs associated with retirement benefits. The new reforms take effect January 1, 2013 and the California Public Employees Retirement System (CaIPERS) plans for new employees will have a lower tier of benefits. In the long term this expected to provide savings compared to the cost of benefits of the current retirement plans that are in place. In the City of Dublin, the City Manager has engaged City Staff in discussions regarding options and opportunities to address the increased costs. This resulted in changes approved by the City Council for Fiscal Year 2011/2012, which eliminated the City payment of any of the designated Employee 8% contribution to PERS. In the upcoming year, employees will also begin contributing towards a portion of the Employer share. iii City of Dublin leadership has used on the longer -term view which is presented in the first two - year budget adopted for Fiscal Year 2012/2013 and 201312014. The approach used in this new initiative was to seek "Fiscal Sustainability" in addressing costs that will be incurred as a result of growth. Although slow and steady growth is assumed as part of the City's financial planning, the City must consider the increased cost of maintaining more facilities and infrastructure. The timing of one -time expenditures for new facilities must take into consideration whether on -going revenue also exists to maintain the additional inventory. Given the City's location adjacent to two freeways, excellent regional demographics and available development sites, it is expected that growth will continue in the long term. The City celebrated its 301" year as an incorporated City in 2012 and it has a long tradition of fiscal prudence. The challenge for the future is to balance accommodating new or expanded services for a growing population, with available resources. FINANCIAL PLANNING AND POLICIES The City Council adopted a 10 -Year Strategic Plan, which is updated every two years. The focus in 2011/2012 was on the plan on five strategies, identified by the City Council. These strategies set the stage to 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. Adjustments to programs presented by the City Manager in the Budget document were tied to the prioritization of elements within the Strategic Plan. The City of Dublin operates with balanced budgets, as provided for in City policies. For Fiscal Year 2011/2012, the City Manager presented a one -year recommended budget and Financial Plan to the City Council. Beginning with Fiscal Year 2012/2013, the City Council utilized a two - year budget format. The City Council adopts a final budget and appropriates funds in advance of the July 1st start of the new Fiscal Year. In terms of major capital investments, constructed with Impact Fees, the City has operated utilizing a pay -as- you -go philosophy. The City has no outstanding City debt as of the close of the Fiscal Year. The City Council had authorized an equipment lease transaction to finance solar panels and other energy saving improvements that are to be installed in Fiscal Year 2012/2013. Savings in energy costs over the life of the equipment are projected to fully offset the cost of the project. This project aligned with City Council strategy focused on supporting environmental sustainability. 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. The City has also proactively financed contributions to fund long -term retiree medical liabilities. The City Council adopted a policy in accordance with GASB Statement 54, which establishes the components of Fund Balance within the General Fund and how changes as the result of operations are to be administered. The policy continues to support the long -term philosophy to be prudent and maintain funds for future liabilities which may be both known as well as unknown. The City Council has also set -aside funds for specific projects and activities with the understanding that some goals require a long -term view and incremental funding over a number of years before the project is undertaken. IV While the City is still experiencing some growth, the City also faces the pressures to deliver and maintain public facilities, such as parks and other amenities. In Fiscal Year 2012/2013 the completion will occur on Positano Hills Park and a Developer constructed park at Schaefer Ranch. In addition, the Capital Improvement Project Plan provides for proceeding with design of a Recreation and Aquatic Center at Emerald Glen Park as well as work on a City / Alameda County Fire Maintenance facility and a Public Safety complex. Careful monitoring will be necessary to plan for anticipated increased cost in services which will need to be balanced with expected revenue trends. The Fiscal Year 2012/2013 and Fiscal Year 2013/2014 Budget plan developed by the City Manager demonstrates a commitment to cost containment and operational efficiency, while enhancing resources in areas aligned with the Strategic Plan and meeting core services. In order to support the achievement of Strategic Plan Initiatives and to also sustain service levels to a growing community, 4.55 Full -Time Equivalent (FTE) positions were added (1 position is City Staff and 3.55 positions are Contract Employees). This included the addition of one Police Officer — Patrol (contract position). The City is fortunate to have many new residents and a growing population. The use of "pay- as-you-go" financing requires a prioritization of facilities and phased delivery over several years to address the needs created by growth. There are plenty of examples where cities attempted to deliver facilities beyond what could be supported by the current operating tax base. Through fiscal discipline, the City of Dublin will continue to strive for the next 30 years and beyond, as a model for other local governments. 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, 2011. A copy of the award from this entity is included in this report. This award represents the 21st 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 It is important to recognize that the compilation of the information in this report, would not be possible without includes contributions made by Staff in several departments. A special thanks and acknowledgement goes to Vivian Gong, Finance Manager and the professional staff at Maze and Associates. Of course the ultimate thanks are afforded to the Mayor and City Council in their support and commitment to have the City's financial reporting strive for excellence. Sincerely, Joni Pattillo City Manager Paul S. Rankin Administrative Services Director This Page Left Intentionally Blank Certificate of Achievement for Excellence in Financial Reporting Presented to City of Dublin California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2011 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Govermnent Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. i President * �re 4,4 � 9 � Executive Director vtl CITY OF DUBLIN PRINCIPAL OFFICERS Fiscal Year 2011/2012 Mayor Tim Sbranti Vice Mayor Kevin Hart Councilmember Kasie Hildenbrand ADMINISTRATION PERSONNEL 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 Viii Councilmember Don Biddle Councilmember Eric Swalwell Joni Pattillo Chris Foss Paul Rankin John Bakker Caroline Soto Tom McCarthy Gary Huisingh Jeri Ram Paul McCreary Bonnie Terra Darrell Jones §r= &) )� \§ � kk }LA ix \ \)\ «a} r 377 \) /\{ kI - « . o \| �\ }/ CL >-2 �a 2 5/� \%J /2 : §r= &) )� \§ � kk }LA ix \ \)\ «a} r 377 \) /\{ kI - « . o \| �\ }/ CL >-2 �a 2 5/� \%J /2 \ ( ) c; : M £� .. \ r� 2> \ \ \ \\0- \ \ { \ J \} \2223E \ J I& §r= &) )� \§ � kk }LA ix \ \)\ «a} r 377 \) /\{ kI - « . LM 2! J \,\\ E 7u § ° °J f ° °» \� \\ }\ o \| �\ }/ CL >-2 �a 2 LM 2! J \,\\ E 7u § ° °J f ° °» \� \\ }\ o �\ }/ \%J /2 LM 2! J \,\\ E 7u § ° °J f ° °» \� \\ }\ o �\ }/ This Page Left Intentionally Blank INDEPENDENT AUDITOR'S 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, 2012, which collectively comprise the City's basic financial statements as listed in the Table of Contents. These financial statements are the responsibility of the City's management. Our responsibility, is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards for financial audit contained it 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 as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and 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 opinion. 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 of Dublin, California, as of June 30, 2012 and the respective changes in the financial position and cash flows, where applicable, thereof and the respective budgetary comparisons listed as part of the basic financial statements for the year then ended in conformity with generally accepted accounting principles in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 26, 2012; on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over fmancial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. T 925.930.0902 Accountancy Corporation r 925 930.0135 3478 Buskirk Avenue, Suite 215 a maze ®mazeassociates.com Pleasant Hill, CA 94523 w mazeassociates.eom Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's, financial statements as a whole. The Introductory Section, Supplemental Information, and Statistical Section listed in the Table of Contents are presented for purposes of additional analysis and are not a required part of the financial statements. The Supplemental Information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used . to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial 'statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplemental Information is fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. October 26 2012 2 Gay OF ^^DUB`y CITY OF DUBLIN rn �i'✓ ��t Management's Discussion and Analysis (MDA) June 30, 2012 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, 2012. 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 full understanding of the information provided in the Government-wide and Fund Financial Statements. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees. GOVERNMENT -WIDE FINANCIAL STATEMENTS - 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. 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. 3 oe Die CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2012 GOVERNMENT -WIDE FINANCIAL STATEMENTS — ANALYSIS Table 1, provides and analysis summarizing the year to year change in the Government -Wide net assets reported for the City of Dublin. By definition the "net assets' are represented as the difference between total assets and total liabilities. - Item Current and other assets Notes receivable (See Note5) Capital assets Total assets Current Liabilities Noncurrent Liabilities Total Liabilities Imested in capital assets Restricted Unrestricted (See Note 8 to Financials for Classification) Total net assets TABLE 1: SUMMARY OF NET ASSETS June 30, 2012 and 2011 $10,427,971 433,548,888 576,780,934 $110,207,898 $6,184,936 433, 779, 703 550,172,537 , mange is mange $22,596,177 20.5% $4,243,035 68.6% (230;815) -0.1% 26,608,397 4.8% 19, 646, 421 17, 338, 261 2,308,160 13.3% 807,642 1,296,799 (489,157) -37.7% 20,454,063 18,635,060 1,819,003 9.8% 433,548,888 433,779,703 (230,815) -0.1% 36,714,724 21,453,867 15,260,857 71.1% 86,063,259 76,303,907 9,759,352 12.8% $556,326,871 $531,537,477 $24,789,394 4.66% As shown above, during Fiscal Year 2011 -2012, the City's net assets increased by approximately $24.8 million, which was an increase of 4.66 percent. This change results from the following factors: The total Net Assets are approximately $556.3 million. Approximately $433 million (78% of the total net assets) are capital assets. Current assets total approximately $132.8 million and increased by approximately $22.6 million compared to the balance reported in the previous year. Notes receivable comprise the final component and account for approximately. $10.4 million. The two largest factors which contributed to the total increase in net assets .were: increased cash and investments of approximately $22.9 million; and an increase in notes receivable of approximately $4.2 million. The City completed funding of loans to Eden Housing as part of the Emerald Vista Affordable Family and Senior Housing projects. The City's total liabilities increased by approximately $1.8 million. Current liabilities represent primarily obligations outstanding for current operations (such as accounts payable), capital projects (such as retention payable), deposits held for development projects, and amounts recorded as deferred revenue. The increase in the current liabilities is due to a combination of factors including: increases in payables as well as deposits payable. The majority of the deposits are related to development processing accounts which have increased activity. CITY OF DUBLIN m ail✓ ,n Management's Discussion and Analysis (MDA) June 30, 2012 • There was a decrease in noncurrent liabilities is related to changes in a liability established for sales tax sharing as well as a decrease in the long -term portion of the liability for compensated absences. Approximately $433.5 million or 78.0% of the total reported net assets reflects the City's investment in capital assets (e.g. land, infrastructure, buildings, equipment, etc.). The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. The relatively small decrease in the amount shown as invested in capital reflects both the addition of capital assets (including construction in progress), less accumulated depreciation. Approximately $36.7 million or 6.6% of the reported assets, as of June 30, 2012, 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. Restricted assets increased by approximately $15.3 million. This was reflects a combination of factors including: collection of additional restricted funds primarily in the impact fee funds related to new development; receipt of a new funding source from Alameda County Transportation Commission; and other grant funds received. These additions were partially offset by the use of restricted funds. Approximately $86 million or 15.5% of the total assets are categorized as unrestricted and may be used to meet the City's ongoing obligations to citizens and creditors. Although the unrestricted net assets increased $9.7 million compared to the amount reported as of one year earlier, as discussed in the notes to the financial statements, much of the unrestricted net assets include the portions of the General Fund balance which has either been committed or assigned for uses in accordance with a policy adopted by the City Council. This includes the planned appropriation of funds to accomplish one -time projects and goals in future years. CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2012 r�clr a��O Governmental Activities: Table 2 provides a summary of major program expense categories, program revenues used to fund specific expenses, and general City revenues available for funding all City programs. Total revenues from all sources were $84.4 million and total expenses for all City programs were $59.6 million. For Fiscal Year 2011 -2012, the City had no long term debt outstanding at June 30, 2012. (As discussed in Note 7 in the Financial Statements the City did have an authorized but unissued Energy Equipment Lease at the close of the Fiscal Year). 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, 2012 and 2011 Revenues Program Revenues Charges For Services Operating Contributions & Grants Capital Grants & Contributions Sub -Total Program Revenues General Revenues Property Taxes Sales Tax Motor vehicle in lieu, unrestricted Other Taxes Investment income, unrestricted Other general revenues Sub -Total General Revenues Total Revenues Expenses: Governmental activities: General govemment Public safety Highways and streets Health and welfare Culture and leisure services Community development Sub -Total governmental activities Increase In Net Assets Net Assets - Beginning of Year Net Assets - End of Year, as restated Fiscal Year Ending June 30th 2012 2011 $ Change % Change $ 15,965,437 $ 13,133,226 $ 2,832,211 21.6% 1,008,318 2,220,247 (1,211,929) (54.6 %) 23,668,070 15,745,614 7,922,456 50.3% 40,641,825 31,099,087 9,542,738 30.7% 22,246,360 21,918,484 327,876 1.5% 14,996,932 12,969,119 2,027,813 15.6% 0 250,974 (250,974) (100.0 %) 4,295,675 3,798,515 497,160 13.1% 865,719 196,685 669,034 340.2% 1,389,349 1,418,781 (29,432) (2.1 %) 43,794,035 40,552,558 3,241,477 8.0% $ 84,435,860 $ 71,651,645 $ 12,784,215 17.8% $ 10,116,219 $ 9,322,322 $ 793,897 .8.5% 26,781,283 24,413,496 2,367,787 9.7% 6,709,217 10,142,946 (3,433,729) (33.9 %) 146,204 12,749,042 (12,602,838) (98.9 %) 9,804,128 9,304,429 499,699 5.4% 6,089,415 5,482,552 606,863 11.1% 59,646,466 71,414,787 (11,768,321) (16.5 %) $ 24,789,394 $ 236,858 531,537,477 531,300,619 $ 556,326,871 $ 531,537,477 $ 24,789,394 4.66% CITY OF DUBLIN m� Management's Discussion and Analysis (MDA) June 30, 2012 �LIFORN Overall there was a $24.8 million increase in net assets for Fiscal Year 2011 -2012 compared to the $236,858 change reported in the prior year. Factors which contributed to the current results include increases in program and general revenues, (particularly - charges for services; capital contributions and grants, and sales tax). In addition, overall expenses were less especially within the Health and Welfare programs. A discussion of key Revenue and Expense factors is presented below. Revenues Overall, total revenues decreased by $12.8 million or 17.9 %, for the period ending June 30, 2012 compared to the previous Fiscal Year. The following are the major factors which contributed to these results. • Charges for Services increased by approximately $2.8 million. This primarily reflects increased development processing activity, increased Internal Service Fund charges and increases in revenue collected for City programs and services. • Capital Contributions and Grants increased by $7.9 million. This was largely due to increased development activity and the collection of impact fees. The City also had Capital Projects funded by grant funds, which are received on a reimbursement basis after the expenditure has been made. Year to year fluctuations are common with grant funds. • Property Taxes increased by approximately $328,000. The current year collections represented increased assessed valuations and continued growth in property sales. • Sales Tax revenue increased by approximately $2 million, as a result of new retail outlets and increased sales at existing retail outlets operating in the City. New and used automobile sales were especially strong throughout the State. Due to the large number of auto dealers located in Dublin, this sector represents a significant portion of the local retail sales tax generated. • Other Taxes also increased by approximately $497,000. This increase primarily reflects increases in Transient Occupancy Tax (Hotel Tax) based on increased business at local hotels and the Garbage Franchise Tax. There were smaller increases in the electric, gas and cable television franchise taxes. These increases were partially offset by a decrease of approximately $34,000 in Real Estate Transfer Tax. • Investment income increased by approximately $669,000. The increase reflects higher balances of funds invested. The results also take into account an unrealized adjustment to reflect the market value of investments as of June 30, 2012. In the current Fiscal Year a negative adjustment of approximately $65,000 was recorded as an unrealized investment loss. This was smaller than the $463,120 negative adjustment posted in the previous year. Expenses Overall, total expenses decreased by approximately $11.8 million (a decrease of 16.5 %) as compared to Fiscal Year 2010 — 2011. The total expenses reported as of June 30, 2012 were $59.6 million. The following are the major factors which contributed to these results: General Government expenses increased by approximately $2.3 million. This was primarily related to expenses within the Internal Service Fund for contributions for Retiree Medical obligations depreciation as well as increased operating costs. CITY OF DUBLIN rn Yi✓ .a Management's Discussion and Analysis (MDA) June 30, 2012 GLiron�S Public Safety expenses increased by approximately $2.4 million. The most significant portion of the increased expense is attributable to Police Services. These services are provided under contract with the Alameda County Sheriff's Office. The increased costs include additional costs imposed by the County to address personnel benefit cost increases attributable to increased funding required for retirement and health benefits. In addition there are inflationary costs associated with contract personnel salaries and benefits as well as an adjustment to the City's share of dispatch costs compared to the previous year. These increases were partially offset by decreases in Disaster Preparedness, which incurred a one -time regional emergency radio system expense in the prior year. There was also a decrease in the cost of contracted Animal Control services. Highways and street expenses decreased by approximately $3.4 million. This was the result of a reduction in one -time capital project expenses that did not repeat in Fiscal Year 2011 -2012. • Health and Welfare expenses decreased by approximately $12.6 million. This was largely attributable to the fact that the previous year included City expenses supporting a public/private redevelopment of the Arroyo Vista public housing project site. These were one -time expenditures which were not repeated in Fiscal Year 2011 — 2012. • Culture & Leisure expenses increased by approximately $0.5 million. This was primarily related to the Park Maintenance activity as new parks were in full operation including the Dublin Heritage Park and Fallon Sports Park. • Community Development expenses were approximately $0.6 million more than the previous year. This was primarily related to an increase in consultant expenses associated with inspection and review of new development plans. The chart which follows displays the Government -Wide Fiscal Year 2011 -2012 Revenues in a pie chart format. More than 90% of the total revenue is related to four sources: 1) Property taxes which comprise 26.4 %; 2) Capital grants which comprise 29.3 %; 3) Charges for Services which comprise 18.9 %; and 4) Sales tax which comprises 17.8 %. Revenues By Source (in Millions) Total Revenue $843 Million Other Tun - S.I%TIJ Ch., . wr servke. . 189 %SIGO Saks Ter - 118 %$15.0 Op Cona16 / G,aste - 1.2 %51.0 Isveetmrot bee - ,.0%50.9 Other Reveeues -1]% 51.4 Cepltal /Costs -293% 5199 PmVM T.Tes -2&4%j 522.2 Gl��o�eo��y CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2012 In terms of expenses, the largest program expense is Public Safety representing 44.90 %, which is larger than the next three categories combined (General Government, Culture & Leisure Services, and Streets and Highways). EXPENSES BY PROGRAM (In Millions) Total Expenses -$59.6 Million Commwuty Development 10.21 %$6.1 16 96% 510.1 LWtme and Layne - 16.44 %$9,5 Health end W Ifine - 0.25 % 50.1 Highwrys and St,ecta 1125Yo E6.] Public Safety E26.8 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 government's near -term financing requirements. Because the focus of Governmental funds is narrower than that of the Government -wide financial statements, it is useful to compare the information presented for Governmental funds with similar information presented for governmental activities in the Government -wide financial statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the Governmental fund balance sheet and Governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between Governmental funds and governmental activities. CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2012 The City maintains forty -four (44) 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 -five (35) Governmental funds are combined into a single aggregated presentation, labeled as Non -Major Governmental Funds. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for each of its Governmental funds. A budgetary comparison statement has been provided for each Governmental fund to demonstrate compliance with this budget. Proprietary funds: The City maintains one type of Proprietary fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions and to build up reserves for future replacement of capital assets. These funds are also used to collect funds for future retiree medical costs, which are then transferred to a trust. In Fiscal Year 2006 -2007, the City established an internal service fund component related to the pre - payment of the Public Employees Retirement System side fund obligation. Charges are made to departments based on payroll to fully recover advanced retirement payment overtime. 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, 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 four 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 provides a similar role for two Geologic Hazard Abatement Districts. 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. The City served as the fiscal agent for Alameda County Associated Community Action Program (ACAP) beginning in 2011. The entity is a Joint Powers agency which the members have decided to proceed with closing out all activities. The City role-was limited to holding funds collected from members and issuing payments as part of the close -out process. These fiduciary activities are excluded from the City's fund financial statements because these assets cannot be used to finance City operations. The activity for these funds, however, is provided for in a separate combining statement contained elsewhere in this report. 10 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2012 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As of June 30, 2012, the City's governmental funds reported combined ending fund balances of $101.5 million, an increase of $17.6 million from the prior year. The City General Fund had an increase of $0.6 million; Capital Funds increased by $16.1 million; Affordable Housing Fund decreased by approximately $0.1 million and Non -Major Funds increased by approximately $1 million. The following sections provide a more detailed financial analysis by fund type. GENERALFUND The General Fund is the chief operating fund of the City. Approximately $3.4 million of the balance is non - spendable in the form of pre -paid expenses, advances to other funds, and an endowment fund related to a City owned historic cemetery. At the end of Fiscal Year 2011 -2012, the unassigned fund balance of the General Fund was $15.0 million and total fund balance of the General Fund was $64.7 million. The unassigned amount reflects an amount calculated for the unrealized gain on investments as well as an amount related to cash flow for on -going operations. The remaining balances are committed or assigned in accordance with a policy adopted by the City Council as discussed in Note 9 to the financial statements. During Fiscal Year 2011 -2012, the General Fund revenues exceeded its expenditures by $6.9 million. However, a total of $6.9 million was transferred out of the General Fund, primarily as a contribution to fund projects accounted for in a Capital Projects Fund. General Fund Revenue in Fiscal Year 2011- 2012 was approximately $4.3 million more than the previous year. Significant revenue sources which contributed to this included: increased tax revenue from retail sales; increased building permits and development processing fees and charges. Expenditures for Fiscal Year 2011 -2012 were approximately $3.2 million more than the previous year. Significant contributing factors included increased costs for Police and Fire; increased costs associated with Park Maintenance; and increased costs associated with community development servi9ces associated with development activities. 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 $5,155,894 at June 30, 2012 which was approximately $97,351 less than the balance the previous year. The change reflects program costs net of revenues collected in Fiscal Year 2011 — 2012. The balance is designated as restricted due to the fact that there are legal restrictions and it is not available for general purposes. 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. As of June 30, 2012 none of these funds carried a balance. 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 2011 -2012 was $10.0 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. Due to variations in project construction and c� of^ °racy CITY OF DUBLIN �i Management's Discussion and Analysis (MDA) June 30, 2012 o�rrroaN�D acquisition timelines expenditure patterns will fluctuate. There were expenses totaling approximately $0.5 million. The expenditures during the year were primarily for design and preparing for construction of new park facilities to serve the growing population. The balance is designated as restricted due to the fact that there are legal restrictions and it is not available for general purposes. 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 2011- 2012 was $392,627 which was $294,264 more than the amount collected in the prior year. In Fiscal Year 2011 -2012 the City collected an advance payment from the Jordan Ranch project. This will reduce fees collected as the property develops since the developers will have credits in -lieu of paying cash at the time of receiving a building permit. The 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 2011 -2012 the amount owed to the General Fund decreased by $377,074 after accounting for interest on the outstanding balance. The total balance owed to the General Fund, as of June 30, 2012 is $1,358,914. The balance is designated as restricted due to the fact that there are legal restrictions and it is not available for general purposes. 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 2011 -2012 was approximately $2.0 million, which was approximately $1.1 million more than collected in the prior year. The City expended approximately $262,000 in payments to reduce outstanding obligations. In addition approximately $460,000 was transferred to the Streets Capital Project Fund, primarily for future project design expenses. This resulted in a net increase of fund balance. The balance is designated as restricted due to the fact that there are legal restrictions and it is not available for general purposes. NON -MAJOR FUNDS The City's non -major funds are presented in the basic financial statements in the aggregate. At June 30, 2011, these funds had a total fund balance of approximately $5.5 million. One year later, as of June 30, 2012 the balance was approximately $6.5 million. 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 FUNCTION (Fiscal Year 2011 -2012 Compared To Fiscal Year 2010 -2011) Function Public Safety Transportation Environmental Parks, Culture, Arts Health & Welfare Maintenance Districts 2012 2011 $ Change % Change $491,307 $564,525 ($73,218) 3,863,540 2,585,892 1,277,648 819,443 1,113,240 (293,797) 376,348 364,638 11,710 70,259 66,789 3,470 922,011 856,276 65,735 TOTAL FUND BALANCE JUNE 30th $6,542,908 $5,551,360 $991,548 12 - 13.0% 49.4% -26.4% 3.2% 5.2% 7.7% 17.9% CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2012 c4�feovr�D The full amount has been restricted under the programs indicated in the Table above. The balances are subject to legal restrictions and not available for general purposes. The changes in Public Safety reflect primarily increased use of Traffic Safety funds for Traffic Signal Maintenance and expenditures of Federal Asset Seizure funds for one time capital needs. The Transportation function shows an increase as a result of collection Gas Tax Funds in excess of annual expenditures as well as special one -time Federal Transportation grant funds and the receipt of Alameda County Transportation Commission vehicle registration funds. The Environmental function decreased due to expenditures from both the County Measure D Recycling Funds and the Local Recycling Fund. 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, 2012) REVENUE: Taxes Licenses and permits Fines and forfeitures Use of Money & Property Intergovernmental Charges for service Other revenue Total Revenue EXPENDITURES: General government Public safety Highways and streets Health and welfare Culture and leisure Community development Total expenditures OTHER FINANCING SOURCES (USES): Transfer in Transfer out Budget Amounts Original Final $ 39,183,130 2,043,830 118,650 1,322,050 360,000 5,854,490 1,056,760 $ 39,832,100 3,024,080 118,650 1,122,870 180,000 7,040,699 1,255,090 Actual Variance with Amounts Final Budget - $ 41,538,967 $ 1,706,867 4,501,736 1,477,656 126,387 7,737 1,255,553 132,683 196,629 16,629 7,708,243 667,544 1,827,802 572,712 49,938,910 52,573,489 57,155,317 4,581,828 7,334,430 7,524,587 6,455,195 (1,069,392) 24,438,860 25,977,133 25,406,425 (570,708) 2,018,310 2,024,442 1,927293 (97,149) 213,250 360,654 307,508 (53,146) 7,987,320 8,322,425 - 8,212,869 (109,556) 7,018,620 8,078,840 7,314,969 (763,871) 49,010,790 52,288,081 49,624,259 (2,663,822) 27,770 27,760 27,760 (2,305,840) (6,938,331) (6,938,331) - Total other financing sources (uses) (2,278,070) (6,910,571) (6,910,571) - NET CHANGE IN FUND BALANCE (1,349,950) (6,625,163) 620,487 7,245,650 13 G� pe oUe CITY OF DUBLIN rr�0Management's Discussion and Analysis (MDA) June 30, 2012 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. • 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. In the General Fund total actual revenues exceeded the final budget by $7.5 million for the Fiscal Year ending June 30, 2012. However, during the year the City also had net transfers to other funds. of $6.9 million primarily for contributions to Capital Projects. Overall, Revenue was approximately 8.7% more than the final Budget. Expenditures were approximately 5.1 % less than the final Budget. General Fund Taxes consist of primarily Property Taxes ($22.2 million in Fiscal Year 2011 -2012) and Sales Taxes ($15.0 million in Fiscal Year 2011 - 2012). The final amount collected in property taxes was $310,170 more than the budget. This reflected continued growth in the sales prices and assessed values. The final result was 1.4% more property taxes than budgeted. The final amount collected in sales tax was approximately $1.3 million more than the budget, which did not anticipate additional growth in automobile sales and new retail outlets contributed more than the amount assumed as part of the Budget. Licenses and permit revenue a positive variance of approximately $1.5 million more than the budget. This reflected primarily Building permits that were sought by Developers in advance of the original projected construction dates. It is important to note that permit fees can be paid in one fiscal year with the inspection expenses incurred across multiple years. Use of money and property had a positive budget variance at year end of approximately $132,000. This was primarily attributable to increased balance invested during the year. The lease of City facilities actually contributed positively to this revenue source. The positive budgetary variance in Charges for Services primarily reflects development processing fees and inspection services. The projection in the budget estimate was more pessimistic than the final services performed. In some cases, development projects proceeded with construction of more residential units than the budget had estimated. With low residential mortgage rates demand for new homes remained strong. Culture & Leisure Services programs had greater participation than was assumed in the budget and this also contributed to this category. The Recreation programs which had the largest increase were Aquatics and Family Programs: General Fund Expenditures overall were $2.7 million less than the Budget for all of the operating programs, with all programs showing a budgetary savings. The General Government Program had a. budgetary savings of approximately $1.0 million, which occurred across all departments. In addition to operating savings, this program includes a budgeted contingency accounts. These contingency accounts were not fully needed and contributed approximately $379,000 of the budgetary savings. 14 G`� oe nOB'm CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2012 �atr�ve�9 Public Safety programs were less than the budget primarily due to expenditures less than the budget for contract Police, Fire Services, and Animal Control. The savings represented approximately 2% of the final budget for the Public Safety activities. Highways and Streets had a minor savings of $97,149 resulting primarily from lower expenditures than expected for Street Landscaping as well as Public Works Administration contract services. Health & Welfare had a budgetary savings of approximately $53,146. The primary contributing factor was related to appropriations for the City share of contributions to the Associated Community Action Program (ACAP) program, as part of the close -out activities. These contributions were not required by ACAP during the fiscal year. Culture and Leisure expenditures were approximately $109,556 less than the budget. This represents approximately 1.3% of the total budgeted for these activities. The two primary factors were lower expenditures required for Library repairs and improvements and lower contract services for cultural classes and activities. Community Development had a savings of approximately $763,871. This was primarily related to savings as a result of: Community Development staff vacancies-, less than anticipated demand for consultant services associated with special Planning Projects and initiatives,- and no expenditures made as part of a new economic development commercial fagade improvement grant program. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City's investment in capital assets for its governmental activities, as of June 30, 2012, amount to $433.5 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 decreased by approximately $230,815 (0.1 %). TABLE 6: SUMMARY OF INVESTMENT IM CAPITAL ASSETS - (For the Period Ending June 30, 2012) Land Streets right of way Construction in Progress Infrastructure Buildings and Improvements Machinery and Equipment Sub -Total Less Accumulated Depreciation Total Net of Depreciation Governmental Activities June 30, 2012 June 30, 2011 $ CHANGE CHANGE $166,506,225 $162,556,225 $3,950,000 2.40/6 35,425,288 35,425,288 0 0.0 %- 10,232,445 27,214,542 (16,982,097)_ (62.4 %) 373,765,547 353,890,794 19,874,753 5.6% 70,248,471 68,685,020 1,563,451 2.3% 8,529,813 7,237,390 1,292,423 17.9% 664,707,789 655,009,259 9,698,530 1.5% (231,158,901) (221,229,556) (9,929,345) 4.5 % $433,548,888 $433,779,703 ($230,815) (0.1 %) IN rn G�reoa�`D CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2012 The City had an active Capital Improvement Program with significant progress made on a variety of community assets. Selected major capital activities undertaken during the current fiscal year included the projects listed below: Capital Project Status of Project 2011 -2012 Expenditures Traffic Signal Improvements Completed $ 436,773 Annual Slurry Seal Program Completed $ 622,574 Annual Sidewalk Safet Re air Pro ram Completed $ 96,805 Energy Efficient Park Lighting Replacement Completed $ 215,789 Public Art Installation at East Dublin Transit Center Completed $ 100,470 Dougherty Road Improvements (Design) In Progress $ 375,549 Annual Street Overlay Project In —Progress $ 125,278 Golden Gate Drive Improvements In Progress $ 134,963 Alamo Canal Trail Under Interstate 580 In Progress $ 759,011 Positano Hills Park In Progress $ 456,855 Civic Center Generator Replacement In Progress $ 465,728 Acquisition and Preliminary Design — Public Safety Complex In Progress $ 5,793,064 Debt For Fiscal Year 2011 -2012, the City had no long term debt. State statutes limit the amount of general obligation debt a governmental entity may issue and the current debt limitation for the City is $318.1 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. As discussed in Note 7 in the Financial Statements, the City did have an authorized but unissued Energy Equipment Lease at the close of the Fiscal Year. The financing transaction was expected to be completed in the first quarter of Fiscal Year 2012 -2013. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS The economic conditions observed, as the two year budget for Fiscal Year 2012 -2013 and Fiscal Year 2013 -2014 was prepared, suggested that some key economic indicators were more positive than in the recent past. However, it does not appear that the rate of growth in revenues will return to what was experienced in the early part of this decade. The budget approach deployed is to focus on fiscal sustainability. Although the budget estimates General Fund revenue to be more than the projection for Fiscal Year 2011 -2012, significant revenue increases are one -time payments in the form of Community Benefit Payments and a Reimbursement from Alameda County Fire, which will help fund one -time capital expenses. The City is anticipating gains in property tax and sales tax as the economic pressures begin to lessen. As part of the Budget planning the City Council strived to align requested changes in expenditures to the Ten Year Strategic Plan. Undertaking a two year budget planning cycle was intended to focus on the longer term needs. The Operating Budget is balanced without the need for augmentation from Economic Stability reserves. The Budget projects that the General Fund revenues will exceed expenses by approximately $189,000. 16 G ^roe °Ua�y CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2012 It is important to acknowledge that the City must adjust to the impacts of serving a growing population. Balancing the timing of delivery of new City facilities will need to take into consideration whether there is adequate growth in revenues to sustain services and absorb the added amenities. Copies of the adopted Budget and Financial Plan are available online at www.dubiin.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 government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the following address: City of Dublin, Finance Department, 100 Civic Plaza, Dublin, CA 94568. A copy of this,financial report is also located at the City's website — www.dublin.ca.gov. 17 This Page Left Intentionally Blank CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2012 GOVERNMENT -WIDE FINANCIAL STATEMENTS STATEMENT OF NET ASSETS AND STATEMENT OF ACTIVITIES This Page Left Intentionally Blank CITY OF DUBLIN STATEMENT OF NET ASSETS JUNE 30, 2012 See accompanying notes to financial statements 21 Governments[- Activities ASSETS Current assets: Cash and investments (Note 3) $126,146,833 Prepaids 55,343 Accounts receivable 6,368,802 Accrued interest receivable - 233,097 Total current assets 132,804,075 Noncurrent assets: Notes receivable (Note 5) 10,427,971 Capital assets (non - depreciable): (Note 6) Land 166,506,225 Streets right of way 35 425,288 Construction in progress 10 232,435 Capital assets (depreciable): (Note 6) Infrastructure 373,765,547 Building and improvements 70,248,471 Vehicles and equipment 8,529,813 Less accumulated depreciation (231,158,901) . Total capital assets 433,548,888 Total noncurrent assets 443 976,859 Total Assets 576,780,934 LIABILITIES Current liabilities: Accounts payable 16,324,165 Accrued wages Sc other payroll liabilities 518,592 Deposits payable - 1,570,533 Contract retention payable 118,113 Other payables 224,046 Unearned revenue 286,607 Compensated absences - Due within I year (Note IG) 604,365 Total current liabilities 19,646,421 Noncurrent liabilities: Net OPEB olidmat ions - Dublin Regional Fire .Authority (Note 12B) 276,715 Other payables - 271,914 Compensated absence (Note IG) 259,013 Total noncurrent liabilities 807,642 Total Liabilities 20,454,063 NET ASSETS (Note 9) Invested in capital assets 433,548,888 Restricted for: Public safety 1,061,158 impact fee projects 25,288,863 l lighways and streets 4,769,979 Health and welfare _ 5,491,317 Culture and leisure 103,407 Total restricted 36,714,724 Unrestricted 86,063,259 Total Net Assets $556,326,871 See accompanying notes to financial statements 21 CITY OF DUBLIN STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2012 General revenues: "Faxes Property taxes Sales tax 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 financial statements 22 Program Revenues Operating Capital Charges for Grants and Contributions Expenses Services Contributions and Grants Governmental Activities: General government S10, 116,219 $140,418 $65,072 $1,107,851 Public safety 26,781,283 1,061,352 349,003 392,626 Highways and streets 6,709,217 738,662 186,700 5,888,103 Health and welfare 146,204 3,063,223 407,543 838,123 Culture and leisure 9,804,128 1,909,812 15,441,367 Community development 6.089,415 9,051,970 Total Governmental Activities 59,646,466 15,965,437 1.008.318 23,668,070 General revenues: "Faxes Property taxes Sales tax 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 financial statements 22 Net (Expense) Revenue and Changes in Net Assets Total Program Governmental Revenues Activities $1313,341 ($8,802,878) 1,802.981 (24,978,302) 6,813,465 104.248 4,308,889 4,161685 17,351,179 7,547,051 9.051,970 2.962.555 40.641.825 (19,004,641) 22,246,360 14,996,932 4295.675 41,538,967 196,629 1,192,720 865,719 43.794,035 24,789,394 53 1,537,477 5556.326,871 23 This Page Left Intentionally Blank CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2012 FUND FINANCIAL STATEMENTS The funds described below were determined to be Major Funds by the City in Fiscal Year 2011 -2012. Individual non -major funds may be found in the Supplemental. The General Fund - is the governments primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Affordable Housing Special Revenue Fund - is used to account for in -lieu fees received from developers of properties, which can only be used for the design, development, and construction of citywide affordable housing projects and /or support of affordable housing programs. The General Improvements Projects 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 Projects 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 would promote or enhance redevelopment, revitalization, beautification of the City's infrastructure and are not General Improvements, Streets or Parks related projects. The Parks Projects 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 would construct, improve, or enhance the City's parks and facilities. The Streets Projects 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 would construct, improve, or enhance the City's trails, highways, streets, roads, bridges, as well as street lighting, and storm drain systems. The Public Facilities Impact Fees Capital Projects 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 impact 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 impact fees received from developers of properties, which can only be used for the design, development and construction of street and highway projects which serve as part of the City's transportation network. 25 ASSETS Cash and investments (Note 3) Prepaids Accounts receivable Accrued interest receivable Notes receivable (Note 5) Due from other funds (Note 4) Advances to ISF PERS Side Fund (Note 4) Advances to other funds (Note 4) Total Assets LIABILITIES Accounts payable Accrued wages and other payroll liabilities Deposits payable Contract retention payable Other payables Deferred Revenue Due to other funds (Note 4) Advances from other funds (Note 4) Total Liabilities FWD BALANCES (Note 9) Non Spendable Restricted Committed Assigned Unassigned Total Fund Balances (Deficit) Total Liabilities and Fund Balances CITY OF DUBLIN GOVERNMENTAL FUNDS BALANCESHEET JUNE 30, 2012 $71,127,108 $5,176,892 $242,339 $28,593 $321,590 20,145 3,989,861 500 233,097 10,427,971 1,517,018 1,994,826 1,358,914 $80,240.969 $15,605,363 $242,339 $28,593 $321,590 $12,899,857 $9,690 $221,191 $24,648 $313,461 518,592 1,541,928 11,808 23,788 21,148 3,945 8,129 224,046 269,010 10,427,971 15,477,221 10,449,469 242,339 28,593 321,590 3,433,886 5,155,894 24,176,650 22,080,677 15,072,535 64,763,748 5,155,894 $80.240,969 $15,605,363 $242,339 528,593 $321,590 See accompanying notes to financial statements 26 Capital Project Funds Special Revenue Fund General Community Affordable Improvement Improvement Parks General Housing Projects Projects Projects $71,127,108 $5,176,892 $242,339 $28,593 $321,590 20,145 3,989,861 500 233,097 10,427,971 1,517,018 1,994,826 1,358,914 $80,240.969 $15,605,363 $242,339 $28,593 $321,590 $12,899,857 $9,690 $221,191 $24,648 $313,461 518,592 1,541,928 11,808 23,788 21,148 3,945 8,129 224,046 269,010 10,427,971 15,477,221 10,449,469 242,339 28,593 321,590 3,433,886 5,155,894 24,176,650 22,080,677 15,072,535 64,763,748 5,155,894 $80.240,969 $15,605,363 $242,339 528,593 $321,590 See accompanying notes to financial statements 26 Capital Project Funds $16,253,245 Public Fire Traffic Streets Facilities Impact Impact Projects Impact Fees Fees Fees Other Govemmental Funds Total Governmental Funds $720,322 $18,340,075 59,483,325 56,449,154 $111,889,398 20,145 3 54, 184 1,653,768 5,998,313 233.097 10,427,971 1,517,018 1,994,826 1,358.914 $720,322 518,340,075 $9,837,509 $8,102,922 $133,439,682 $661,690 $1,801,777 $320,931 $16,253,245 $3,433,886 518,592 971 15,826 1,570,533 58,632 2,471 118,113 24,176,650 224,046 17,597 10,714,578 1,203,189 1,203,189 $1.358.914 1,358,914 720,322 1,358,914 1,802,748 1.560.0 14 31,961210 27 $3,433,886 $18,34U75 $8,034,761 6,542,908 38,073,638 24,176,650 22,080,677 (1358,914) 13,711621 18,340,075 (1,358914) 8,034,761 6,5,12,908 101.478,472 5720.322 518.340,075 $9,837509 58,102,922 5133,439,682 27 This Page Left Intentionally Blank CITY OF DUBLIN Reconciliation of the GOVERNMENTAL FUNDS -- BALANCE SHEET with the STATEMENT OF NET ASSETS June 30, 2012 Total fund balances reported on the governmental funds balance sheet Amounts reported for Governmental Activities in the Statement of Net Assets are different from those reported in the Governmental Funds above because of the following: CAPITAL .ASSETS Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. $1 01,478,472 ALLOCATION OF INTERNAL SERVICE FUND NET ASSETS Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Assets. Cash and investments S 14,257,435 Prepaid items 35198 Accounts receivable 370,489 Capital assets 50,974,428 Accounts payable and accruals (70,920) Interfund balance (2,308,655) ACCRUAL OF NON- CURRENT REVENUES AND EXPENSES Revenues which are deferred on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities. LONG -TERM ASSETS AND LIABILITIES The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds: Net OPEB liability Non- current portion of compensated absences Non-current portion of general liability claims NET ASSETS OF GOVERNMENTAL ACTIVITIES See accompanying notes to financial statements 29 382,574,460 63,257,975 10,427,971 (276,715) (863,378) (271,914) $556,326,871 CITY OF DUBLIN GOVERNMENTALFUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Sales tax Other taxes Intergovernmental Licenses and permits Charges for service Interest Use of property Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General Government Public safety Highways and streets Health and welfare Cultural and leisure Community development Capital outlay General improvements Community improvements Culture and leisure Streets Total Expenditures EXCESS (DEFICIENCY) OF REVENUES 57,155,317 1.080,745 6,455,195 15,462 25,406,425 1,927,293 307,508 1,169,234 8,212,869 7,314,969 $6,641,674 $213.777 $996,669 49,624,259 1,184,696 6,641,674 213,777 996,669 OVER EXPENDITURES - Special Revenue Fund Capital Project Funds (213,777) (996,669) OTHER FINANCING SOURCES (USES) General Community Affordable Improvement Improvement Parks General Housing Projects Projects Projects Transfers (out) (Note 4) (6,938,331) (2,484) $22,246,360 Total Other Financing Sources (Uses) (6,910,571) 14,996,932 213.777 996,669 4,295,675 196,629 4,501,736 7,708,243 $79,060 707,144 55,583 548,409 111,448 126,387 819,440 1,827,802 15,214 57,155,317 1.080,745 6,455,195 15,462 25,406,425 1,927,293 307,508 1,169,234 8,212,869 7,314,969 $6,641,674 $213.777 $996,669 49,624,259 1,184,696 6,641,674 213,777 996,669 OVER EXPENDITURES - 7,531,058 (103,951) (6,641,674) (213,777) (996,669) OTHER FINANCING SOURCES (USES) Transfers in (Note 4) 27,760 6,600 6,644,158 213,777 1,021,414 Transfers (out) (Note 4) (6,938,331) (2,484) (24,745) Total Other Financing Sources (Uses) (6,910,571) 6,600 6,641,674 213.777 996,669 NET CHANGE IN FUND BALANCES 620,487 (97,351) BEGINNING FUND BALANCES (DEFICIT) 64,143,261 5,253,245 ENDING FUND BALANCES (DEFICIT) $64,763,748 $5,155,894 See accompanying notes to financial statements 30 Capital Project Funds Public Fire Streets Facilities impact Protects Impact Fees Fees 'Traffic Other Total Impact Governmental Governmental Fees Funds Funds $152,487 $22,398,847 468,408 15,465,340 840,775 4,295,675 - - 3,765,943 3,962,572 35,360 4,501,736 2,544,198 10,331,501 $155,537 $87,145 62,729 1,068,138 2.959,555 (539,637) 659,857 158,606 284,993 15,138,098 7,791 15,965,329 $392,627 2,076,676 197,443 4,509,762 944,455 944.455 15293,635 392,627 2,163.&21 8,302,060 84,388,205 260,738 270,455 7,001,850 15,553 876,984 26,298,962 840,775 2,768,068 2,945,726 4,422,468 35,360 8,24829 1,041 46,722 7,362,732 6.641,674 2.959,555 (539,637) 213,777 (930.466) 996,669 $2.959.555 2,959,555 2,959,555 15.553 261,779 5,016.022 66,913,984 (2,952555) 15,293,635 377.074 1,902,042 3.286,038 17,474,221 2,959,555 24,745 10,898,009 (539,637) (930,466) (2.319,235) (10,754,898) 2.959,555 (539,637) (930.466) (2,294,490) 143,111 14,753,998 377,074 971,576 991,548 17,617,332 ' 3,586,077 (1,735,988) 7,063,185 5,551,360 83,861,140 $18,340,075 ($1,358,914) $8,034,761 $6,542,908 $101,478,472 31 CITY OF DUBLIN Reconciliation of the NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS with the STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2012 The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Assets of Govemmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis. NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS $17,617,332 Amounts reported for governmental activities in the Statement of Activities are different because of the following: CAPITAL ASSET TRANSACTIONS Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense. The capital outlay and other expenditures are therefore added back to fund balance 9,172,317 Depreciation expense is deducted from the fund balance. The amount excludes the depreciation of $2,483,295 (7,446,051) ACCRUAL OF NON- CURRENT ITEMS The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change): Deferred revenue 6,846,799 Compensated absences (83,572) Net OPEB Liabilities (6,673) ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds. The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with govemmental activities, because they service those activities. Change in Net Assets - All Internal Service Funds (1,310,758) CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $24,789.394 See accompanying notes to financial statements ' 32 CITY OF DUBLIN GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 EXPENDITURES Current General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE 7,334,430 7,524,587 24,438,860 25,977,133 Variance with 2,024,442 Budgeted Amounts 7,987,320 Final Budget 7,018,620 9,078,840 Positive Original Final Actual Amounts (Negative) REVENUES Property taxes - $22,066,000 $21,936,190 $22,246,360 $310,170 Sales tax 13,245,000 13,745,000 14,996,932 1,251,932 Other taxes 3,872,130 4,150,910 4,295,675 144,765 Intergovernmental 360,000 180,000 196,629 16,629 Licenses and permits 2,043,830 3,024,080 4,501,736 1,477,656 Charges for service 5,854,490 7,040,699 7,708,243 667,544 Interest 853,040 628,040 707,144 79,104 Use ofpropeny 469,010 494,830 548,409 53,579 Fines and forfeitures 118,650 118,650 126,387 7,737 Other revenue 1,056,760 1,255,090 1,827,802 572,712 Total Revenues _ 49,938,910 52,573 489 57,155,317 4,581,828 EXPENDITURES Current General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE 7,334,430 7,524,587 24,438,860 25,977,133 2,018,310 2,024,442 213,250 360,654 7,987,320 8,322,425 7,018,620 9,078,840 6,455,195 1,069,392 25,406,425 570,708 1,927,293 97,149 307,508 53,146 8,212,869 109,556 7,314,969 763,871 49,010,790 52 288.081 49,624,259 2,663,822 928,120 285,408 7,531,058 7,245,650 27,760 27,760 27,760 (6,938,331) (6,938,331) (6,938,331) (6910,571) (6,910,571) (6,910,571) ($5,982,451) ($6,625,163) See accompanying notes to financial statements 33 $620,487 $7,245,650 64,143,261 $64,763,748 CITY OF DUBLIN AFFORDABLE HOUSING SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES: Interest Loan repayment Charges for services Other Revenue Developer fees Total Revenues EXPENDITURES: Current: General government Health and welfare Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Budgeted Amounts Original Final Variance with Final Budget Positive Actual Amounts (Negative) $58,650 $58,650 $55,583 (3,067) 500 500 111,448 110,948 41,600 41,600 79,060 37,460 15,214 15,214 300,000 819,440 519.440 100,750 400,750 1,080,745 679,995 46,200 46,200 15,462 30,738 1,822,180 1,853,360 1,169,234 684,126 1,868,380 1,899,560 1,184,696 714,864 (1.767.630) (1,498,810) (103.951) 1,394,859 6,600 6.600 6,600 600 6,600 6,600 ($1,761,030) ($1,492,210) (97,351) $1,394.859 See accompanying notes to financial statements 34 5,253,245 $5,155,894 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2012 MAJOR PROPRIETARY FUNDS Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. 35 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF NET ASSETS JUNE 30, 2012 ASSETS Current Assets: Cash and investments (Note 2) Prepaid items Accounts receivable Total current assets Noncurrent assets: Capital Assets (Note 6): Land Construction in progress Building and improvements Machinery and equipment Less: accumulated depreciation Total noncurrent assets Total Assets LIABILITIES Current Liabilities: Accounts payable and accruals Due to other funds (Note 4) Total current liabilities Non - current Liabilities: .Advances from other funds (Note 4) Total Liabilities NET ASSETS (Note 9) Invested in capital assets Unrestricted Total Net Assets Governmental Activities - Internal Service Funds $14,257,435 35,198 370,489 14,663,122 10,774,792 229;387 62,115,076 6,837,074 (28,981.901) 50,974,428 65,637,550 70,920 313.829 384,749 1,994.826 2,379,575 50,974,428 12,283,547 $63,257,975 See accompanying notes to financial statements 36 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2012 Net Assets - Beginning of year 64,568.733 Net Assets- Ending of year S63,257,975 See accompanying notes to financial statements 37 Governmental Activities - intemal Service Funds OPERATING REVENUES - Charges for services 52,785,435 Other 375,654 Total Operating Revenues 3,161,089 OPERATING EXPENSES Supplies and services 496,484 OPEB Expenses 1,514,1 12 Depreciation 2,483,295 Total Operating Expenses 4,493,891 Operating Income (Loss) (1,332,802) NONOPERATNG REVENUES Interest income - 158,853 Sales of property 6302 Total Nonoperating Revenues 165.155 Income (Loss) Before Transfers (1,167,647) Transfer from the General Improvement Capital Projects Fund (Note 4) 2,484 Transfer to the General Improvement Capital Projects Fund (Note 4) (145,595) Change in net assets (1,310,758) Net Assets - Beginning of year 64,568.733 Net Assets- Ending of year S63,257,975 See accompanying notes to financial statements 37 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2012 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from other funds Payments to suppliers and service providers Other revenues Net cash provided (used) by operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Receipts from other funds Payments to other funds Cash Flows from Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Sales of capital assets Cash Flows from Capital and Related Financing Activities CASH FLOWS FROM INVESTING ACTIVITIES Interest received Cash Flows from Investing Activities Net Cash Flows Cash and investments at beginning of year Cash and investments at end of year Reconciliation of operating income (loss) to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation Change in assets and liabilities: Accounts receivable Prepaid expenses Accounts payable and accruals Net cash provided (used) by operating activities See accompanying notes to financial statements 38 Governmental Activities - Internal Service Funds $2,526,802 (2,255,565) 375,654 646,891 2,484 (177,895) (175,411) (526,214) 6,302 (519,912) 158,853 158.853 110,421 14,147,014 $ 14.257,435 ($1,332,802) 2.483,295 (258,633) (2,268) (242,701) $646,891 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2012 FIDUCIARY FUNDS Agency funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Entity- wide financial statements, but are presented in separate Fiduciary Fund financial statements. 39 CITY OF DUBLIN FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET ASSETS. JUNE 30, 2012 Agency Fund ASSETS Cash and investments (Note 3) $1,001,191 Restricted cash and investments (Note 3) 164,508 Total Assets $1,165,699 LIABILITIES Accounts payable $3,044 Due to trustee 964,771 Due to bondholders 197,884 Total Liabilities $1,165,699 See accompanying notes to financial statements :ili CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard- setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below: A. Reporting Entity The City is a residential community with a significant regional, commercial base, located in the TriValley 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 total population estimate published by the California Department of Finance for January 1, 2012 was 46,785. This figure includes prisoners housed at the Alanieda County Sheriffs Department Santa Rita Jail and at the Federal Correctional Institute. The City of Dublin was ranked based on total population at #182 out of 480 cities within California. 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, 2012, the City's staff was comprised of 86 authorized 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 121 contract employees provide a variety of municipal services from City facilities. As of June 30, 2012, the City had approximately 150 temporary and seasonal personnel that were on active payroll status. B. Basis of Presentation The City's Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S,A. These Standards require that the financial statements described below be presented. Government -wide Statements: The Statement of Net Assets and the Statement of Activities display information about the primary government (the City). These statements include the financial activities of the overall City government, except for fiduciary activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 41 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds. Separate statements for each fund category — governmental; proprietary, and fiduciary — are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the find. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. C. Major Funds Major finds are defined as funds that have either assets, liabilities, revenues or expenditures /expenses equal to ten percent of their fund -type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds. The City reported the following major governmental funds in the accompanying financial statements The General Fund - is the governments primary operating find. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Affordable Housing Special Revenue Fund - is used to account for in -lieu fees received from developers of properties, which can only be used for the design, development, and construction of citywide affordable housing projects and /or support of affordable housing programs. The General Improvements Projects 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 Comnutni(v Improvements Projects 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 would promote or enhance redevelopment, revitalization, beautification of the City's infrastructure and are not General Improvements, Streets or Parks related projects. The Parks Projects 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 would construct, improve, or enhance the City's parks and facilities. The Streets Projects 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 would construct, improve, or enhance the City's trails, highways, streets, roads, bridges, as well as street lighting, and storm drain systems. 1% CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Public Facilities Impact Fees Capital Projects 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 impact 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 impact fees received from developers of properties, which can only be used for the design, development and construction of street and highway projects which serve as part of the City's transportation network. The City also reports the following fund types: Internal Service Funds — Account for assets replacement of assets and internal charges collected for the purpose of funding retirement plan side -fund obligations and post- retirement healthcare activities. All of these activities are provided to City departments on a cost - reimbursement basis. Fiduciary Funds — The City maintains one type of Fiduciary Funds - Agency Funds. The financial activities of these funds are excluded from the Government -wide financial statement, but are presented in separate Fiduciary Fund financial statements. Agency Funds are used to account for assets held by the City as an agent for the following purposes: 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 Associated Community Action Program (ACAP) is an expendable trust fund. The City acts as the fiscal agent to collect and account for the contributions received and to coordinate administrative services leading to the agency ceasing its operation. ACAP is a Joint Powers Authority (JPA), whose members include the Alameda County and eleven of the thirteen incorporated cities in the County. (The cities of Berkeley and Oakland are not members). The JPA was formed to provide and administer social service related programs. The Agency fund is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of operations. The Fallon Village and Schaefer Ranch Geological Hazard Abatement Districts (GRAD) _are expendable trust funds. Each fiscal year, the District Engineer prepares an Engineer's Report which includes the budget for the GHADs 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. 43 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis of Accounting The government -wide and proprietary financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long -term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long -term debt and acquisitions under capital leases are reported as other financing sources. Those revenues susceptible to accrual at both the City -wide and Fund level are property, sales and franchise taxes, current service charges, and interest revenue. Fines and licenses and permits are, not susceptible to accrual because they are not measurable until received in cash. Non - exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost - reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net assets may be available to finance program expenditures. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary. Certain indirect costs are included in program expenses reported for individual functions and activities The City follows Statements and Interpretations of the Financial Accounting Standards Board and its predecessors that were issued on or before November 30, 1989, in accounting for its business -type activities, unless they conflict with Govemment Accounting Standards Board pronouncements. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are payments -in -lieu of taxes and other charges between the government's business -type activities and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 44 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's internal service funds are charges to customers for sales and services. Operating expenses for internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. E. Property Tax Revenues 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 preceding year. R Use of Restricted Resources When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as needed. G. 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 liability will be paid from future resources primarily from the general fund. Compensated absences activities were as follows for the year ended June 30, 2012: Beginning Balance Additions Payments Ending Balance Current Portion H. Prepaid Items Total Compensated. Govemmental General Leave Leave Activities $764,206 $15,600 $779,806 798,766 42,462 841,228 (716,710) (4M46) (757,656) $846,262 $17,116. $863,378 $592,383 $11,981 $604,365 Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial statements. M61 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Z New Funds In fiscal year 2011 -2012, the City created the following funds Federal Transportation (TIGER) Special Revenue Fund to account for the receipts of Federal grants for approved street and trail improvements funded by a one -time Federal grants. ACTC Vehicle Registration Fee Special Revenue Fund to account for an Alameda County Transportation Commission (ACTC) voter approved increase in vehicle registration fee that is distributed by ACTC to be used for street and road system maintenance. Cable TV Facilities Special Revenue Fund to account for Cable TV Facilities fees collected from Cable Television providers and passed through to the City for local cable television as allowed under State and Federal franchising laws. Park Replacement Internal Service Fund to account for the financing of future major maintenance and repairs of City's parks. NOTE 2 — 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 I. 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. 46 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 2 — BUDGETS AND BUDGETARY ACCOUNTING (Continued) ➢ Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. ➢ Budgets for the general, special revenue and capital projects funds are adopted on a basis' consistent with generally accepted accounting principles in the United States. ➢ All unexpended operating budget appropriations lapse at the end of the fiscal year, and the City Council may approve a Budget'Chan'ge 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, ➢ The funds below ineurred expenditures in excess of their budgets in the amounts below. Sufficient resources were available within each department to finance these overages. Capital Projects Fund Fire Impact Fees Fund Public Safety $15,553 Special Revenue Funds: Supplemental Law Enforcement Fund Public Safety 242 Local Law Enforcement Block Grant Fund Public Safety 170 Measure D Recycling Fund Health and Welfare 13,191 NOTE 3 — CASH AND V4VESTMENTS The City's dependence on property tax receipts, which are received semi - annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash as described under the policy section below. A. Policies California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City's cash on deposit, or first trust deed mortgage notes with a market valise of 150% of the deposit, as collateral for these deposits. Under California law, this collateral is held in a separate investment pool by another institution in the City's name and places the City ahead of general creditors of the institution. The City pools cash from all sources and all funds, except certain specific investments within funds and cash with fiscal agents, so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time. 47 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 3 - CASH AND INVESTMENTS (Continued) The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called security instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Individual investments are generally made by the City's fiscal agents as required under its debt issues. In order to maximize security, the City employs the Trust Department of a bank as the custodian of all City managed investments, regardless of their form. The City's investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year. B. Classification Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City agreements. City: Cash and investments $126,146,833 Total City cash and investments 126,146,833 Fiduciary Funds (separate statement): 550,405 Cash and investments 1,001,191 Restricted cash and investments 164,508 Total Fiduciary Funds cash and investments 1,165,699 Total cash and investments $127,312,532 Cash and investments as of June 30, 2012, consist of the following: Cash on hand $3222 Deposits with financial institutions 550,405 Investments 126,758,905 Total cash and investments $127,312,532 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. 48 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30,2012 NOTE 3 - CASH AND INVESTMENTS (Continued) C. Investments Authorized by the California Government Code and the City's Investment Policy The City's Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City, and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City's Investment Policy where the City's Investment Policy is more restrictive. Authorized Investment Negotiable Certificates of Deposit Bankers' Acceptances U.S. Treasury Bills and Notes U.S. Government Agency Securities California Asset Management Program Commercial Paper Time Certificates of Deposit State Local Agency Investment Fund Money Market Funds D. Interest Rate Risk Maximum Credit Percentage Investment Maturity Quality of Portfolio In One Issuer 5 years AA/A -1 30% 20% 180 days A -1 40% 20% of Portfolio 5 years N/A No Limit No Limit 5 years N/A 25% for callable 40% N/A N/A No Limit No Limit 270 days A -1 25% 20% of Portfolio I year N/A 10% No Limit N/A N/A 75% No Limit N/A AAA 20% No Limit Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity or earliest call date: 12 Months 13 to 24 25 to 60 Investment Type - or less Months Months Total California Local Agency Investment Fund California Asset Management Program Money Market Funds U.S. Government Agencies $50,023,711 _$50,023,711- 8,566,386 8,566,386 164,508 164,508 16.250,100 $14,250,600 $37,503,600 68,004,300 Total Investments $75,004,705 $14,250,600 $37,503,600 $126,758,905 - Z Z CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 3 - CASH AND INVES'T'MENTS (Continued) The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAW at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage- backed securities, other asset - backed securities, loans to certain state funds, United States Treasury Notes and Bills, and floating rate securities issued by federal agencies, government- sponsored enterprises, and corporations. At June 30, 2012, these investments matured in an average of 242 days. The City is a voluntary participant in the California Asset Management Program (CAMP). CAMP is an investment .pool offered by the California Asset Management Trust (the Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act (California Government Code Sections 6500 et seq., or the "Act ") for the purpose of exercising the common power of its Participants to invest certain proceeds of debt issues and surplus funds. The Pool's investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code. The City reports its investments in CAMP at the fair value amounts provided by CAMP, which is the same as the value of the pool share. At June 30, 2012, the fair value approximated is the City's cost. At June 30, 2012, these investments have an average maturity of 54 days. The City's investments include Government Mortgage — Backed Securities in the amount of $27,338,390 that are highly sensitive to interest rate fluctuations to a greater degree than already indicated above. E. Credit Risk Credit risk is the _risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The actual ratings as of June 30, 2012 were provided by Standard and Poor's investment rating system except as noted. The Local Agency Investment Fund was not rated as of June 30, 2012. Investment Type California Asset Management Program Money Market Funds U.S. Government Agency Issues Totals Not rated. California Local Agency Investment Fund Total Investments 50 AAA/AAAm AA +- Total $8,566,386 $8,566,386 164,508 164,508 $68,004,300 68,004,300 $8,730,894 $68,004,300 76,735,194 50,023,711 $126,758,905 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 3 - CASH AND INVESTMENTS (Continued) F. Concentration of Credit Risk lncluded.in the table at Note D above are the following significant investments in any one issuer other than U.S. Treasury securities, mutual funds, and external investment pools. Reporting Reported Unit Issuer Investment Type - Amount Entity-wide Federal Farm Credit Bank Federal Home Loan Bank Federal Home loan Mortgage Corporation Federal National Mortgage Association NOTE 4 - INTERFUND TRANSACTIONS A. Transfers Between Funds US Government agency securities $8,058,360 US Government agency securities 32,607,550 US Government agency securities 10,134,120 US Government agency securities 17,204,270 Transfers between funds during the fiscal year ended June 30, 2012 were as foll6ws: Fund Making Transfer Fund Receiving Transfers General Fund General Improvements Capital Projects Fund Community Improvements Capital Projects Fund Parks Projects Capital Projects Fund Streets Projects Capital Projects Fund Capita Projects Funds: General Improvement Capital Projects Fund Parks Capital Projects Fund Public Facilities Impact Fees Capital Projects Fund Traffic Impact Fees Capital Projects Fund Special Revenue Funds: Non -Major Special Revenue Funds Internal Service Funds: Buildings Replacement Internal Service Fund Equipment Replacement Internal Service Fund Non -Major Special Revenue Funds Parks Projects Capital Projects Streets Projects Capital Projects Fund General Fund General Improvements Capital Projects Fund Affordable Housing Special Revenue Fund Community Improvements Capital Projects Fund Parks Projects Capital Projects Fund Streets Projects Capital Projects Fund General Improvements Capital Projects Fund (A) To fund Capital project expenditures (B) To reimburse General Fund staffing and admin costs for the project (C) 'to reimburse Affordable Housing Fund staffing and admin costs for the project (D) Correction to retention payable for project in May 2011. Payment for retention payable did not get debited to the correct account. Instead it got charged against the project expense account. 51 Amount Transferred $6,450,982 (A) 119,119 (A) 308,583 (A) 59,647 (A) $6,938,331 2,484 (A) 24,745 (D) 539,637 (A) 930,466 (A) 1,497,332 27,760 (B) 47,581 (A) 6,600 (C) 94,658 (A) 173,194 (A) 1,969,442 (A) 2,319,235 145,595 (A) 145,595 $10,900,493 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 4 - INTERFUND TRANSACTIONS (Continued) B. Current /nterfund Balances Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2012, the following funds have balances due to the General Fund: Due from other funds General Fund Due to other funds Non -Major Special Revenue Funds $1,203,189 Internal Service Funds 313,829 Total $1,517,018 C. Advances Between Funds 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 PERS 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 City had a negative unfunded liability at the time the City was assigned to the pool. As part of Ca1PERS 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 fiscal year 2007 -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. The following interfund balances existed at June 30, 2012: Advances from other funds General Fund Fire Impact Fees Capital Project Fund $,1,358,914 Internal Service Funds - 1,994,826 Total $3,353,740 52 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 5 — NOTES RECEIVABLE The following table summarizes the notes receivable outstanding as of June 30, 2012: First Time Homebuyer Loan Program S1,286,136 Eden (Wicklow Square) Senior Affordable Housing 2,641,835 Eden (Emerald Vista) Construction Loan - Family Housing 4,680,000 Eden (Emerald Vista) Construction Loan - Senior Housing 1,820,000 Total $10,427,971 Revolving Horne 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. The program targets first time homebuyers within a certain income range purchasing their first home in Dublin. Monthly payments of principal and interest are generally deferred until the homes are sold, or are in default. In certain situations the loan may also be due when the homeowners refinance their primary mortgage. The total outstanding amount due, including accrued simple interest at 3.5% per annum, as of June 30, 2012 was $1,286,136. During fiscal year 2011 -2012, $36,500 principal plus $4,144 of interest were accrued as uncol lectable. 53 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 5 - NOTES RECEIVABLE Details of the Revolving Home Loans as of June 30, 2012 were as follows LOAN # LOAN DATE ORIGINAL LOAN AMOUNT ACCRUED INTEREST REPAYMENT OF PRINCIPAL AND INTEREST LOAN BALANCE #07 -01 2/16/2007 $39,915 $7,502 $47,417 #07 -02 4/3/2007 36,500 (36,500) - 907 -03 3/30/2007 60,039 11,042 - 71,081 #07 -04 10/30/2007 50,000 8,170 58,170 #07 -06 9/28/2007 35,640 (35,640) _ #07 -07 9/28/2007 42,886 7,139 50,025 407 -08 7/24/2007 35,596 (35,596) #07 -09 8128/2007 26,036 4,412 30,448 #07 -10 8/28/2007 49,536 8,393 57,929 #07 -11 - 10/10/2007 38,141 6,305 44,446 407 -12 2/16/2007 33,051 6,212 39,263 #07 -13 10/11/2007 40,253 (40,253) #07 -14 10/1/2007 19,610 3,259 22,869 #07 -15 12/3/2007 24,536 3,929 28,465 #07 -16 12/28/2007 8,000 1,262 9,262 #07 -17 2/4/2008 22,826 (22,826) 907 -18 2/29/2008 24,170 3,667 27,837 #07 -20 5/30/2008 19,175 2,742 21,917 408 -01 8/15/2008 25,377 3,441 28,818 408 -02 10 120 /2008 47,200 (47,200) #08 -03 10/17/2008 33,750 4,372 38,122 #08 -04 11/14/2008 41,500 (41,500) _ 408 -05 1/29/2009 22,619 2,705 25,324 908 -06 2/11/2009 55,404 6,556 61,960 #08 -07 4/9/2009 27,425 3,095 30,520 #08 -08 6/30/2009 39,576 4,159 43,735 #09 -01 8/3/2009 33,000 3,357 , _ 36,357 #09 -02 9/28/2009 36,595 3,527 - 4.0,122 #10 -01 12/24/2010 37,500 (37,500) - 410 -02 1/24/2011 40,000 2,002 42,002 #10 -03 5/5/2011 26,700 1,078 27,778 411 -01 7/7/2011 30,000 1,030 31,030 911 -02 10/14/2011 29,999 745 30,744 #11 -03 11/21/2011 30,839 654 31,493 #11 -04 12/2/2011 26,025 524 26,549 411 -05 12/28/2011 35,249 625 35,874 #11 -06 1/13/2012 29,999 486 .30,485 #11 -07 1/13/2012 36,415 590 37,005 911 -08 1/19/2012 36,682 573 37,255 #11 -09 1/3012012 35,249 510 35,759 411 -10 2/15/2012 36,671 478 _ 37,149 #11 -11 4/3/2012 38,586 329 38,915 #11 -12 6/27/2012 29,999 12 30,011 TOTAL $1.468,269 $78,382 ($260,515) $1,286,136 54 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 5 —NOTES RECEIVABLE (Continued) Eden Senior Affordable Housing Loan - (Wicklow Square) — 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 Boulevard. This site also houses a senior center that the City constructed during fiscal year 2003 -2004. On February 1, 2004, the City entered into an agreement and provided a loan in the amount of $2,248,248 to the Dublin Senior Limited Partnership to support the senior housing project. The interest on the outstanding principal balance of the loan is accrued at the rate of 3% simple interest per annum. The entire outstanding principal balance of the loan, together with the interest accrued, shall be payable in full on February 8, 2059, the 55th anniversary of the Initial Disbursement Date of February 18, 2004. Repayments commenced on June 1, 2006, and on the first day of each June, 60% of the Surplus Cash generated by the project during the previous calendar year are remitted to reduce the outstanding indebtedness. Any payment not paid when due shall bear interest at a rate equal to 10% annum from the due date until it is paid in full. The outstanding amount as of June 30, 2012 was $2,641,835. Arroyo Vista Predevelopment /Construction Loan — Family and Senior Projects — (Emerald Vista) - On June 1, 2011, the City entered into an agreement to provide a loan to Eden Dougherty, L.P., a California nonprofit public benefit corporation, with a not -to- exceed $7,600,000 principal amount in accordance to the Arroyo Vista Disposition and Development Agreement dated July 25, 2007 concerning the redevelopment of the real property located at 6700 Dougherty Road in the City of Dublin. The City agreed to provide a loan to Eden to assist in financing the development of the Family Project and Senior Project. The City determined that the development of the project is in the interests of health, safety and welfare of the residents of the City, and that the City financing is necessary to make the project affordable to low and very low income households for a term of not less than fifty-five years. The note will not bear interest until the earlier of (i) the date that the project's construction financing is either converted to a permanent loan or repaid in full, or (ii) twelve months following the date of issuance of the final certificate of occupancy or, equivalent for the project, thereafter, the outstanding principal balance of the loan shall bear interest at a rate equal to three percent simple annual interest. Annual payments shall be due and payable on a residual receipts basis in accordance with the formula set forth in the note. The entire outstanding principal balance and accrued interest shall be paid in full on the earlier of (i) the fifty fifth anniversary of the date of issuance of the final certificate of occupancy or (ii) the fifty- seventh anniversary of the loan origination date. The City has the right to accelerate maturity date and declare all sums immediately due and payable to the City upon the occurrence of an event of developer default, including developer's failure to commence or complete construction of the project within times period specified in the note. At June 30, 2012, the outstanding amounts are $4,680,000 for the Family Project and $1,820,000 for the Senior Project. NOTE 6 — 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. 55 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 6 —CAPITAL ASSETS (Continued) 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, and is reported on the Statement of Net Assets of the government -wide financial statements as a reduction in the book value of the capital assets. The City has assigned the useful lives listed below to capital assets. Infrastructure 20 -75 Years Building and Improvements 20 -38 Years Vehicles and Equipment 3 -15 Years 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. A. Capital Asset activity during the fiscal year were as follows Capital assces being depreciated: Infrastructure Buildings and Improvements Vehicles and Equipment Total capital assets being depreciated Less accumulated depreciation for Infrastructure Buildings and Improvements Vehicles and Equipment Total Accumulated Depreciation Net governmental fund program Capital assets being depreciated Governmental activity capital assets, net Balance at Transfers June 30, 2012 $166,506,225 35,425,288 ($22,062,139) 10,232,445 (22,062,139) 212,163,958 353,890,794 19,874,753 373,765,547 68,685,019 1,563,452 70,748,471 7,237,390 668,489 623,934 - 8,529,813 429,813,203 668,489 22,062,139 452,543,831 (191,681,945) (6,244,600) (197,926,545) (23,690,399) (3,272,660) . (26,963,059) (5,857,211) (412,086) (6,269,297) (221,229,555) (9,929,346) (231,158,901) 208,583,648 (9,260,857) $433,779,703 ($230,815) 56 22,062,139 221,384,930 $433,548,888 Balance at June 30, 2011 Additions Retirements Gavernmeatal activities Capital assets not being depreciated. Land $162,556,225 $3,950,000 Streets Right of Way 35,425,288 . Construction in Progress 27,214 542 5,080,042 Total capital assets not being depreciated 225,196,055 9,030,042 Capital assces being depreciated: Infrastructure Buildings and Improvements Vehicles and Equipment Total capital assets being depreciated Less accumulated depreciation for Infrastructure Buildings and Improvements Vehicles and Equipment Total Accumulated Depreciation Net governmental fund program Capital assets being depreciated Governmental activity capital assets, net Balance at Transfers June 30, 2012 $166,506,225 35,425,288 ($22,062,139) 10,232,445 (22,062,139) 212,163,958 353,890,794 19,874,753 373,765,547 68,685,019 1,563,452 70,748,471 7,237,390 668,489 623,934 - 8,529,813 429,813,203 668,489 22,062,139 452,543,831 (191,681,945) (6,244,600) (197,926,545) (23,690,399) (3,272,660) . (26,963,059) (5,857,211) (412,086) (6,269,297) (221,229,555) (9,929,346) (231,158,901) 208,583,648 (9,260,857) $433,779,703 ($230,815) 56 22,062,139 221,384,930 $433,548,888 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 6 — CAPITAL ASSETS (Continued) B. Project Commitments At June 30, 2012, the City had outstanding commitments with contractors for the following projects: Commitment Sidewalk construction /repair 51,146 Park construction 1,252,623 Construction testing 29,110 Construction management 53,760 Street resurfacing 636,621 Construction management 256,225 Trail construction 831,651 C. Capital Asset Contributions Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. GASB Statement 34 requires that these contributions be accounted for as revenues at the time the capital assets are contributed. D. Depreciation Allocation Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or programs are as follows: Governmental Activities Amount General govemment 51,742,907 Public safety 563,871 Highways and streets 5,264,757 Culture and leisure 2,350,556 Community development 7,255 Total depreciation expense $9,929,346 NOTE 7 — AUTHORIZED BUT UNISSUED DEBT On June 12, 2012, City entered into an Energy Services Performance Contract with Chevron Energy Solutions to implement the recommended efficiency improvements in the City's ongoing efforts to reduce energy consumption and develop long -term cost savings through increased energy efficiency. The total project cost is estimated to be $7,430,976. City expects the full cost of improvements including interest can be offset through estimated energy savings. The project is to be funded through a combination of Lease Financing and Internal Service Fund reserves. The total amount to be financed through a bank lease is approximately $7,023,268, with interest rate fixed at 2.56 %. The financing is a lease arrangement with Bank of America holding title to the improvements being installed. Once all lease payments are made, improvements are filly owned by the City. 57 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 7 — AUTHORIZED BUT UNISSUED DEBT (Continued) According to the payment schedule the City will not make payments during the construction period which is estimated to take up to twelve months. Thereafter, the payments will be made over a fourteen -year period. The amount of annual lease payments is intended to produce consistent savings each year. Therefore, for payments in the initial years, when certain rebates and incentives are received, the payments will be higher. The average annual lease payment over the repayment period is estimated to be approximately $614,093 per year. The City anticipates that energy savings and incentives are projected to fully offset these costs. The actual funding of the lease was scheduled to occur in the first quarter of Fiscal Year 2012/2013. . NOTE 8 — SPECIAL ASSESSMENT CITY DEBT (NON- OBLIGATORY) The Dublin Boulevard Extension Special Assessment District, formed within City limits, had outstanding debt with a balance of $182,000 at June 30, 2012. 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. NOTE 9 — NET ASSETS AND FUND BALANCES A. Net Assets Net Assets is the excess of all the City's assets over all its liabilities, regardless of fund. Net Assets are divided into three captions. These captions apply only to Net Assets, which is determined only for proprietary funds and at the Government -wide level, and are described below: Invested in Capital Assets, describes the portion of Net Assets which is represented by the current net book value of the City's capital assets. Restricted describes the portion of Net Assets which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects and debt service requirements. Unrestricted describes the portion of Net Assets which is not restricted to use. 58 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 9 — NET ASSETS AND FUND BALANCES (Continued) B. Fund Balances Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund's cash and receivables, less its liabilities. The City's fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint: Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and long -term interfund loans are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category. Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources. Committed find balances have constraints imposed by formal action of the City Council which may be altered only by formal action of the City Council. Encumbrances and nonspendable amounts subject to council commitments are included along with spendable resources. Assigned fund balances are amounts constrained by the City's intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. This category includes encumbrances, Nonspendable, when it is the City's intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed. 59 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30 2012 NOTE 9 — NET ASSETS AND FUND BALANCES (Continued) Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds. In accordance with policies adopted by the City Council, the "Unassigned" fund balance represents $1,013,252 associated equivalent to the unrealized gain on investments and $14,059,283 based on goals to accommodate general cash flow. Detailed classifications of the City's Fund Balances, as of June 30, 2012, are stated below: Major Funds Affordable Public Facilities Fire Impact Traffic Impact General Housing Impact Fees Fees Fees Non- Nlajor Fwd Fund Fund Fund Fund Funds Total NmSpendable: Prepaid Eapermes $20,146 $20,146 Cemetery Endowment 60,000 60,000 Long'1'erm Advance to Fire Impact Fee Fund 1,358,914 1,358,914 Long Term Advances to PERS Side Fund 1994,826 1,994,826 SubTotal Non-Spendable, Fund Balance 3,433.886 3.433.886 Restrieted For: Public Safety $1,061,158 1,061,158 IBghways and Streets 4,769,979 4,769,979 Health and Welfare 335,423 335,423 Recycling Pmgr:ms 107,407 103,407 Impact FCC Capital Projects $18340,075 $S,034,761 272,941 26,647,777 Housing $5.155,894 5,155,894 Sub Total Committed Fund Balance 5,155,894 18,340,075 8,034,761 6,542,908 38,073,638 Committed ne Economic Stability 5,868,847 5,868,847 Downtown Public Improvements 1000,000 1,000,000 Open Space Funding 1,000,000 1,()0()000 Affordable Housing 1,000,000 1,000,000 Enumld clear Aquatic Center Additional Scope 1,500,000 1,500,000 Emergency Commsmicwons 741,000 741000 Fire Services OPEB 5,148 021 5,148,021 Innovators and New Opportunities 3,372,785 3,372,785 Maintenance Facility 1083,989 1,083,989 Civic Center Expauiou 767,722 767,922 Emergency Generator 79,867 79,867 Public Safety Complex 1,272,811 1272,811 0. Time Imitative 1,341,408 1.341,408 Sub Toted Committed Fund Balance 24,176,650 24,176650 Aen-ned to: Employees Accrued! Leavc 863379 863,379 Operating Cmryovers 652,585 652,585 CUP Carryovers 215,587 215,587 Catastrophic loss and Recovery 10,537,271 10,537,271 Service Continuity Obligations - 2,410,000 2,410,000 Pension and Post Employment Benefits 7,073,816 7,073,816 Fiscally Responsible Adjustment 328,039 328,039 Sub Total Assigned Found Balance 22,080,677 22,080,677 Unassigmdl Fund B.I. ($1,358,914) (1,358,914) Unrealized gain on investments 1,013,252 1,013,252 Cash Flow Per City Policy 14,059,283 14,059,283 15 ,071,535 ($1,358,914) 13,713,621 Total Fund Balance(Deficin $64,763,748 $5,155,894 $18,340,075 ($1,358,914) $8,034,761 $6,542,908 $101478,472 M. CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 9 — NET ASSFTS AND FUND BALANCES (Continued) C. Minimum Fund Balance Policies The City's Reserve Policy requires the City to maintain an Unrestricted General Funds, for cash flow purposes, of minimum equal to two months of budgeted operating expenditures with a goal to achieve a maximum of four months. As of June 30, 2012 the cash flow reserves, which are part of the Unassigned Fund Balance, were above the minimum at approximately 2.8 months, however they were below the desired target of 4 months. Funds may be appropriated as to Undesignated Capital Contribution by designation from City Council only for high priority one time capital expenditures provided the minimum fund balance would remain. D. Fund Equity Deficits The funds listed in the table below had fund balance deficits at June 30, 2012. These deficits are expected to be eliminated by future revenues. Fund Fund Deficit Fire Impact Fees Capital Projects Fund $1,358,914 PERS Side Fund Internal Service Fund 1,994,826 NOTE 10 — DEFERRED COMPENSATION PLAN City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination of employment, retirement, death,-or in an emergency as defined by the Plan. In accordance with GASB Statement No. 32, the funds have been placed in a trust administered by ICMA Retirement Corporation and are not available to the City's general creditors. Accordingly, the City does not report the assets in the financial statements. NOTE 11 - PENSION PLAN A. CaIPEBS 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 CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements is established by State statutes within the Public Employees' Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with CaIPERS and adopts those benefits through local ordinance or resolution. CalPERS issues a separate comprehensive annual financial report. Copies of the CaIPERS's annual financial report may be obtained from the CalPERS Executive Office, 400 P Street Sacramento, California 95814. 61 . CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 11 - PENSION PLAN (Continued) Funding Policy — Active plan members in the Miscellaneous Plan are required to contribute 8 percent of their annual covered salary. Prior to July 1, 2012 the City paid 7% of the Employee required contribution. The change to employees paying the full share reduced the Annual Pension Cost for the period ending June 30 2012. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CaIPERS Board of Administration. The required employer contribution rate for fiscal year 2011 -2012 was 14.762% 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 2011 -2012, the City's annual pension cost was $1,298,838 and was equal to the City's required and actual contributions. The required contribution for fiscal year 2011 -2012 was determined in the June 30, 2010, 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 3.55 percent to 14.45 percent for miscellaneous members, depending on Age, Service, and type of employment; (c) Inflation component of 3.0 percent; d) Payroll Growth of 3.25 percent; and e) Individual Salary Growth based on a merit scale varying by duration of employment coupled with an assumed annual inflation growth of 3 percent and annual production growth of 0.25 percent. The actuarial value of Miscellaneous Plan's assets was determined using a technique that smoothes the effect of short-term volatility in the market value of investments over a two to five year period depending on the size of investment gains and /or losses. Miscellaneous Plan's unfunded actuarial accrued liability (or excess assets) is being amortized as a level percentage of projected payroll on a closed basis. The average remaining amortization period at June 30, 2010, the latest actuarial study available, was 19 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 Net Fiscal Year Pension ofAPC Pension Ending Cost (APC) Contributed Obligation June 30, 2010 $1,728,667 100% $0 June 30, 2011 - 1,715,082 100% 0 June 30, 2012 1,298,838 100% 0 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 postemployment benefits. It also provides enhancement in the information disclosed in the notes to the financial statements or presented as required supplementary. information. The City contributes to the California Public Employee's Retirement System (CalPERS), 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 CalPERS Risk Pool for employers with less than 100 active plan members. As part of a cost sharing, multiple - employer defined benefit plan, disclosure of the Schedule of Funding progress is not required. 62 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30, 2012 NOTE 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 are not covered under Social Security. The City entered into an agreement with the PARS to provide an alternative retirement system for the part -time employees. The PARS plan was effective December 25, 2005, and replaced Social Security. In fiscal year 2011 -2012, the employees contributed $50,610 or 6% of salary and the City contributed $12,653 or 1.5% of employee's pay towards PARS. NOTE 12 — OTHER POST EMPLOYMENT 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. On June 29, 2007, the City established an agreement with the California Public Employees' Retirement System (CaIPERS) to set aside finds 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 finding 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 Information (RSf). The information may be found on CaIPERS web site at www.calpers.ca.cov. 63 CITY OF DUBLIN Notes to Basic Financial Statements For the Year Ended June 30,2012' NOTE 12 — OTHER POST EMPLOYMENT BENEFITS (Continued) 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 (CaIPERS). The plan provides medical insurance benefits to eligible retirees and their eligible dependents in accordance with Public Employee Retirement Law (Article 2). The Public Employees Retirement System Board of Administration has the responsibility to approve health benefit plans and may contract with carriers offering health benefit plans. The Board of Administration is responsible for adopting all rules and regulations, including the scope and content of basic health plans. The California Government Code also defines certain rules for contract agencies, such as the City of Dublin, to purchase health insurance benefits. Funding Policy - There is no requirement imposed by CaIPERS, 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 CaIPERS Board of Administration and applicable laws. Within the parameters of the law, individual contracting agencies, such as the City, are allowed to establish and amend the level of contributions made by the employer towards the monthly cost of the plans. Changes to the employer contribution rate towards retiree benefits are recorded in a resolution adopted by the City Council. The City has 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, 2011 Actuarial Study completed by Bartel and Associates, LLC in accordance with GASB Statement 45, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. During fiscal year 2006 -2007, the City made arrangements with CalPERS to retain the OPEB assets to finance future Retiree Health Benefits. On June 29, 2007, the City transferred $5,468,611 from the Internal Service Fund into the California Employers' Retiree Benefit Trust Fund (CERBT). The City has elected a one -year amortization period for the OPEB plan assets deposited into the CERBT, as permitted under GASB Statement 45, paragraph 13F, amortization periods allow for a maximum of 30 years with no minimum years. M CITY OF DUBLIN F Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 NOTE 12 — OTHER POST EMPLOYMENT BENEFITS (Continued) Annual OPEB Cost and Net OPEB Obligation - The City's annual Other Post Employment Benefit (OPEB) cost (expense) is calculated based on the Annual Required Contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City of Dublin annual OPEB costs for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation to the City Retiree Health Plan: Annual required contribution $ 1,164,000 Interest on net OPEB obligation - Adjustment to annual required contribution - Annual OPEB expense (income) 1,164,000 Contributions made (1,164,000) Increase (decrease) in net OPEB obligation Net OPEB obligation (asset) - beginning of year Net OPEB obligation (asset) - end of year $ - The City Retiree Health annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2011 -12, and the preceding years were as follows: Fiscal Annual Annual OPEB OPEB Year Ended OPEB Cost Cost Contributed Obligation (Asset) 6/30/2010 $616,000 97.84% ($32,506) 6/30/2011 615,000 94.71% 0 6/30/2012 1,164,000 100% 0 Funded Status and Funding Progress - As of June 30, 2011, the most recent actuarial valuation date, the plan was 59% funded. The Actuarial Accrued Liability (AAL) for benefits was $11,557,000, and the Actuarial Value of Plan Asset was $6,823,000, resulting in an Unfunded Actuarial Accrued Liability (UAAL) of $4,734,000. The covered payroll (annual payroll of active employees covered by the plan) was $7,830,000, and the ratio of UAAL to the covered payroll was 60 percent. Annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2012 and the previous years.were as follows: Underfunded 65 Entry Age (Overfunded) - Actuarial Actuarial _ Actuarial UAAL as a Actuarial Value of Accrued Accrued Funded Covered Percentage of Valuation Assets Liability Liability Ratio Payroll Covered Payroll Date (A) (B) (B -A) (AB) (C) [(T3-ANCI " 6/30/2004 $0 $4,973,780 $4,973,780 0.00% �- $6,320,280 (78.7 %) 6/30/2007 _ 5,694,000 6,159,000 465,000 92.45% 6,697,747 (6.9 %) 6/30/2009 5,326,000 6,990,000 1,664,000 76.19% 7,618,000 (21.8 %) 6/30/2011 6,823,000 11,557,000 4,734,000 59.04% 7,830,000 - (60.5 %) 65 CITY OF DUBLIN Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 NOTE 12 — OTHER POST EMPLOYMENT BENEFITS (Continued) 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, 2011 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, 2011 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 6.75 percent interest rate, representing the long term expected rate of return on the CaMFRS Trust Fund including a margin for adverse earnings. Annual inflation assumed to increase at one half of the Kaiser family premium increase and Aggregate Payroll assumed to increase at 3.25 percent per annum. The study also used assumptions for the salary merit and longevity increases, and demographic assumptions such as mortality, withdrawal, and disability based on Ca1PERS 1997 -2007 Experience Study. Retirement assumption was also based on Ca1PERS 1997 -2007 Experience Study of the Miscellaneous Plan 2.7% at 55 years, with expected retirement age of approximate 58 for both females and males. The health care cost trend rate is the rate of change in per capita health claims costs over time as a result of factors such as medical inflation, utilization of healthcare services, plan design, and technological developments. The following table includes the annual healthcare cost trend rate used in the Actuarial Valuation: Year Non ,Medicare HMO & PPO Medicare HMO & PPO 2010 Actual Premiums Actual Premiums 2011 Actual Premiums Actual Premium 2012 - 9.5% 10,0% 2013 9.0% 9A% 2014 8&5% 8.9% 2020+ 5.0% 5.0% to CITY OF DUBLIN Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 NOTE 12 — OTHER POST EMPLOYMENT BENEFITS (Continued) B. Dougherty Regional Fire Ataltority 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. Dublin'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 (CalPERS). The Plan provides medical insurance benefits *to eligible retirees and their eligible dependents. In accordance with Public Employee Retirement Law (Article 2), the Public Employees Retirement System Board of Administration has the responsibility to approve health benefit plans and may contract with carriers offering health benefit plans. The Board of Administration is responsible for adopting all rules and regulations, including the scope and content of basic health plans. The California Government Code also defines certain rules for contract agencies, such as DRFA, to purchase health insurance benefits. Funding Policy - There is no requirement imposed by CalPERS, to contribute any amount beyond the pay -as- you -go contributions. The cost of monthly insurance premiums may be shared between the retiree and 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 CAPERS 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 2011 -2012, the City contributed $52,600 to the plan, all of which was for current premiums. No other contributions were made. Annual OPEB Cost and Net OPEB Obligation - The City of Dublin'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 Benefits Other 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. 67 CITY OF DUBLIN Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 NOTE 12 — OTHER POST EMPLOYMENT BENEFITS (Continued) 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: Annual required contribution $ 64,727 Interest on net OPEB obligation 9,300 Adjustment to annual required contribution (14,754) Annual OPEB expense (income) 59,273 Contributions made (52,600) Increase (decrease) in net OPEB obligation 6,673 Net OPEB obligation (asset) - beginning of year 270,042 Net OPEB obligation (asset) - end of year $ 276,715 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 fiscal year 2011 -2012 and the two previous years were as follows: Fiscal Annual Annual OPEB OPEB Year Ended OPEB Cost Cost Contributed Obligation 6/30/2010 $110,000 45.27% $211,265 6/30/2011 110,000 46.57% 270,042 6/30/2012 59,273 95% 276,715 Funded Status and Funding Progress -As of June 30, 2010, the most recent actuarial valuation date, the plan was not funded. Therefore, both the actuarial accrued liability for benefits and the unfunded actuarial accred 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 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. M CITY OF DUBLIN Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 NOTE 12 — OTHER POST EMPLOYMENT BENEFITS (Continued) 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 GAS1345, which allows for certain simplifying modifications to the selection of assumptions for purposes of measuring the ARC (Annual Required Contribution) and the plan's actuarial accrued liabilities and funded status. To the June 30, 2010 actuarial valuation prepared by Vavrinek, Trine, Day & Co., LLP the actuarial used was Alternative Measurement Method with the Entry Age Normal (EAN) cost method. Under the FAN 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 -20t9, Table 3. The increases are as follows: FY 6130 RATE 2011 4.00% 2012 3.70% 2013 5.40% 2014 6.70% 2015 7A0% 2016 6.80% 2017 & Later 6 20 % The Actuarial Accrued Liability (AAL) is the cumulative value, on the valuation dale, 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. NOTE, 13 -HEALTH, GENERAL LIABILITY AND WORKERS' COMPF,NSATION COVERAGE A. Risk Pool The City participates in the ABAG PLAN Corporation, a non - profit public benefit corporation established to provide liability insurance coverage, claims administration and risk management services, and legal defense to its participating members. The liability insurance coverage is provided by a combination self- insurance collectively funded by ABAG PLAN Corporation and the purchase of commercial insurance for large losses. ABAG PLAN provides the first $5 million of coverage as self - funded general liability and automobile liability coverage per occurrence. ABAG PLAN purchases commercial excess liability insurance in two layers of $10 million each to provide total coverage of claims up to $25 million per occurrence. The City has a deductible of $50,000 per occurrence. ABAG PLAN also provides $1 million of employee bonds (theft coverage) in excess of a $5,000 deductible. ABAG PLAN also provides property insurance coverage. This coverage is also comprised of a self - insured layer combined with commercial insurance. The first $100,000 of losses are self - funded by ABAG PLAN form premiums collected from the participants in the program. ABAG PLAN purchases an insurance policy to cover losses above $100,000 per occurrence and the annual aggregate losses of the pool are insured above $250,000. The insurance provides coverage for property damage among all participants to $1 billion. The City deductible for property and vehicle losses is $5,000. For any single loss in excess of $25,000 the deductible is waived. 69 CITY OF DUBLIN Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 NOTE 13 - HEALTH, GENERAL LIABILITY AND WORKERS' COMPENSATION COVERAGE (Continued) 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. Worker's 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, 2012, the City paid Cities Group $11,228 in premiums. At June 30, 2012, the City of Dublin's share of equity in the Cities group amounted to $174,964. Financial Statements may be obtained from the Cities Group, PO Box 111, Burlingame, CA 9401 1 -0111. 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 reserve recorded is adequate to cover 5.44 IBNR claims or $271,914. Therefore no adjustment was made in fiscal year 2011 -2012 as the City's exposure is for the $50,000 deductible per General Liability claim. The City has no actual liabilities that are due and payable at June 30, 2012. 70 CITY OF DUBLIN Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 NOTE 14 —JOINT POWERS AGREEMENTS The City participates in joint ventures discussed below through separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each -joint venture is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint venture, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of these joint ventures are not the City's responsibility and the City does not have an equity interest in the assets of each joint venture except upon dissolution of the joint venture. A. Animal Control Services The Cities of Dublin, Pleasanton, and Livermore and the County of Alameda have entered a joint powers agreement, dated September 15, 1992, under which Alameda County constructed an animal shelter facility on County's property. The agreement provided that the County would retain ownership of the land and that each participating agencies would receive an equity interest in the facility. Certificates of Participation were issued to construct the facility. Under the agreement the entities will share in the debt service costs of the project based upon their use of the animal shelter. The original total principal portion of the scheduled debt is $4,523,877. The City's share for the annual debt service requirements are based upon the statistics of live animals handled in the shelter. In fiscal 2012 the City contributed $8,384 of the total annual debt service payment. In addition, the City contributed $84,383 or 12.53% toward the annual operating shelter services and $130,586 representing 4.53% 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. B. Associated Community Action Program (ACAP) The City is a member of ACAP, a Joint Powers Authority established in July 12, 1994, with a governing board comprised of elected officials from its 13 member agencies. The members include Alameda County and the Cities of Alameda, Albany, Dublin, Emeryville, Fremont, Hayward, Livermore, Newark, Piedmont, Pleasanton, San Leandro, and Union City. The purpose of the ACAP was to plan, develop, and administer social services programs under the federal Community Services Block Grant Program. These programs included housing assistance, jobs training and education, and youth development services. Due to significant financial issues, the Board of Directors of ACAP in February 2011 chose to terminate its participation in various state and federal program and to effectively cease its operations. Management Partners, Inc. was engaged to manage and implement the close of ACAP. The representatives of the members and the ACAP Board of Directors have determined that the original JPA that created ACAP should be amended to reflect the current status of ACAP. On October 18, 2011, the City Council approved an Amended and Restated Joint Powers Agreement to restructure ACAP's and delegate oversight powers to allow the County and the City Managers, rather than the elected officials, to continue its obligations such as records retention, legal and claims, and audit compliance and to limit future exposure for member agencies. 71 CITY OF DUBLIN Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 NOTE 14 — JOINT POWERS AGREEMENTS (Continued) During fiscal year 2011 -2012 the City of Dublin has also acted as a fiscal agent, which was comprised of collecting contributions from the members, processing payments on behalf of ACAP, and issuing financial reports. In fiscal year 2011 -2012 the City Council authorized a contribution up to $146,539 of which the City has contributed $100,385. The remaining $25,398 is available for appropriation in fiscal year 2012 -2013 if required as part of the close -out activities. The City will incur a pro -rata share of the on -going costs. Condensed financial information as of June 30, 2011 for ACAP is presented below: Total assets $833,615 Total liabilities 40,354 Total net assets 793,261 Total revenues 1,280,808 Total expenses 487,547 Increase (decrease) net assets 793,261 NOTE 15 — OTHER COMbHTMENTS AND CONTINGENT LIABILITIES The City participates in several Federal and State grant programs. These programs have been audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act of 1984 as amended in 1996, and applicable State requirements. No cost disallowances were proposed as a result of these audits. 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. The City is a defendant in a number of lawsuits that have arisen in the normal course of business, the outcome of which cannot be predicted with certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a material adverse effect on the financial position of the City. A. 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, 2012, was $4,440,186 which is net of the $112,878 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. 72 CITY OF DUBLIN Notes to Basic Financial Statements Fiscal Year Ended June 30, 2012 NOTE 15 — OTHER CONMTMENTS AND CONTINGENT LIABILITIES (Continued) B. Alameda County Surplus Property Authority The City entered into an agreement with the Alameda County Surplus Property Authority for the repayment of the City's Short Term BART Advance by the Authority. Under the terms of the agreement, interest on the advance shall accrue at a rate based on the Alameda County Treasurers return on investments. As of June 30, 2012, the balance was $1,490,426, which includes accrued interest of $6,499 at 0.41 % 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 shall not be obligated to repay this obligation. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for repayment of the advance. C. 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, 2012 was $134,889,292. For the current year, additions to the credits amounted to $6,470,273 and credits used and transferred amounted to $49,451,364. The accounting for the amounts due are not recorded as indebtedness since the payments (the uses of credits) are contingent upon the collection of development fees from building growth that has not yet occurred. 73 This Page Left Intentionally Blank SUPPLEMENTARY INFORMATION CITY OF DUBLIN GENERALFUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2012 ' Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) Property taxes: Current year secured $16,500,000 $16,500,000 $16,919,594 $419,594 Current year unsecured 1,065,000 1,050,000 1,099,263 49,263 Supplemental property tax 300,000 300,000 265,195 (34,805) Prior year secured 500,000 500,000 396,783 (103,217) Prior year unsecured 11,000 11,000 36,108 25,108 Property tax penalties 250,000 165,000 119,232 (45;768) In lieu property tax 3,440,000 3,410,190 3,410,185 (5) Sub -total 22,066,000 21,936,190 22,246,360 310,170 Taxes other than property: Sales and use tax 9,933,750 10,308,750 11,451,818 1,143,068 In lieu sales tax 3,31 1,250 3,436,250 3,545,114 108,864 Real property transfer tae 400,000 400,000 441,575 41,575 Flotel transient occupancy tae 670;000 850,000 879;733 29,733 Franchise tares 2,802,130 2,900,910 2,974,367 73,457 Sub -total 17.117,130 17,895,910 19292,607 1,396,697 Licenses and permits: Animal licenses 6,000 6,000 5,204 (796) Building permits 1,646,720 2,646,720 4,075,222 1,428,502 Business license 139,000 139,000 137,920 (1,080) Construction and demolition permits 68,550 68,550 116,918 48,368 Encroachment permits 59,750 59,750 46,068 (13,682) Fire permits 46,510 40,180 48,729 8,549 Grading permits 600 600 5,508 4,908 Newspaper racks permits _ 3,240 3,240 (3,240) Planning permits 53,710 53,710 58,142 4,432 Police permits 19,750 6,330 8,025 1,695 Sub -total 2.043,830 3,024,080 4,501,736 1,477.656 Fines and forfeitures: Parking citations 58,400 58,400 56,620 (1,780) Business license penalties 3,250 3,250 2,238 (1,012) Other court fines 57,000 57,000 67,509 10,509 Other fines and penalties 20 20 Sub -total 118.650 118,650 126,387 7,737 M CITY OF DUBLIN GENERALFUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2012 (Continued) 77 Variance with Budgeted Amounts _ Final Budget Positive - - Original Final Actual Amounts (Negative) Revenue from use of money and property: Interest 853,040 628,040 763,560 - 135,520 Internal designated 8,286 8,286 Change in fair market value of investments (64,702) (64,702) Rent and concession: - Field and court rentals 133,900 143,760 176,522 32.762 Facility rentals 273,600 289,560 314,092 - 24,532 Leased property 61.510 61,510 57,795 (3.715) Sub -total 1,322,050 1,122,870 1.255,553 132.683 Intergovernmental revenues: Motor vehicle in -lieu 180 -000 Mandated costs 15,853 15,853 Homeowner's property tax relief 180-000 180,000 180,776 776 Sub -total 360,000 180,000 196.629 16,629 Charges for services: General government Building use insurance 17,860 17,860 20,560 2,700 Sale of maps and documents 3,220 3,220 8,485 5,265 Public safety Police charges for services 54,880 74,630 71,173 (3,457) Fire charges for services 84,870 207,470 279,151 71,681 Santa Rita fire services 650,000 650,000 689,510 39,510 Waste management - Waste management admin fees 610,000 645,720 668,372 22,652 Parks and community services Aquatics programs 137,230 144,189 194,926 50,737 Cemetery 3,590 3,590 3,405 (185) Cultural arts 137,525 137,530 137,884 354 Family programs 329,190 329,190 393,803 64,618 Heritage Center 12,635 12,640 16 -088 3,448 Preschool programs - 467,060 467,060 432,939 (34,121) Recreational activities 246.270 265,530 265.533 3 Community events and festivals 78,840 78,840 93,769 14,929 Senior programs - 86,010 - 86,010 71,448 (14,562) Sports programs 421,880 445,125 470,380 25,255 Teens programs 5,450 5,450 2,421 (3,029) Community Development Engineering plan checking 1,410,980 - 1,988,365 2,261,371 273,006 Local share permit surchange - SMIP 720 880 2,028 1,148 Building plan checking 2,600 2,600 3,890 1,290 Local share permit surcharge - Zone 7 drainage fees 7,300 6,420 31,126 24,706 Zoning and subdivision fees 1,086,380 1,468,380 1,589,976 121,596 Sub -total 5,854,490 7,040,699 7,708,243 667,544 77 CITY OF DUBLIN GENERALFUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2012 (Continued) rF3 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) Other revenues: Contributions 54;510 62,510 65,072 2,562 Sales of property 166,670 166,670 166,667 (3) Miscellaneous 35,000 81,000 166,352 85,352 Reimbursement - general 27,980 172,310 242,065 69,755 Reimbursement - public damage 16,760 16,760 79,795 63,035 Reimbursement - Community benefit assessment 755,840 755,840 1,107,851 352,011 Sub -total 1,056,760 1,255,090 1,827,802 572,712 Total Revenue by Sources $49.938,910 $52,573,489 $57,155.317 $4,581,828 rF3 CITY OF DUBLIN GENERALFUND SCHEDULE OF BUDGET VERSUS ACTUAL DEPARTMENTAL EXPENDITURES FOR THE YEAR ENDED NNE 30, 2012 Budgeted Amounts Original Final Variance with Final Budget Positive Actual Amounts (Negative) General government City Council $425,680 $465,680 $349,649 $116,031 City Manager 1,253,480 1,281,352 1,277,736 3,616 Election 1,870 1,870 1,686 184 Central services 1,382,850 1,427,894 1,110,500 317,394 City Attorney 687,540 798,540 716,959 81,581 Administrative services 2,026,790 2.104,687 1,948,072 156,615 Building management 729,470 790,785 759,440 31,345 Non - departmental 826.750 653,779 291L53 362.626 Sub -total 7334.430 7,524,587 6,455,195 1,069,392 Public safety: Police 13,316,700 $14,795,121 $14,660.752 $134,369 Fire services 10,534,240 10,534,240 10,287,780 246,460 Disaster preparedness 94,650 101,432 92,395 9,037 Crossing guards 122,960 122,960 1 1 1,843 11.117 Animal control 370,310 370,310 223,353 146,957 Traffic signals and street lighting 53.070 30,302 22,768 Sub -total 24,438,860 25,977.133 25,406,425 570.708 Highways and streets: - Public works administration 875,610 876,742 832,897 43,845 Street maintenance 145,930 150,930 140,453 10,477 Street landscape maintenance 996,770 996.770 953,943 42,827 Sub -total 2,018,310 2.024442 1.927,293 97,149 Health and welfare: - Environmental programs 6,000 92,250 85,717 6,533 Social services 207,250 268.404 221.791 46,613 Sub -total 213,250 360,654 307,508 53,146 Culture and leisure: ' Community cable television 32,840 32,840 23,244 9,596 Library services 564,530 593,875 573,873 20,002 Heritage and Culture Arts 821,390 846,891 792,242 54,649 Park maintenance 2,461,470 2,487,971 2,472,491 15,480 Parks and community services 3,819,440 3,925,119 3,925,235 (116) Parks and facilities management 287.650 435,729 425,784 9,945 Sub -total 7,987,320 8,322,425 8,212,869 109,556 Community development Development services 4,491,990 4,737,613 4,167,820 - 569,793 Engineering 1,825,480 2,551,585 2,551,584 1 Economic development 701,150 789,642 595,565 194.077 Sub -total 7,018,620 8,078,840 7,314,969 763,871 Total Expenditures $49,010,790 $52,288,081 $49,624,259 $2,663,822 79 This Page Left Intentionally Blank BUDGETED MAJOR GOVERNMENTAL FUNDS OTHER THAN GENERAL FUND AND SPECIAL REVENUE FUNDS The General Improvements Projects 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 Projects 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 Projects 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 Projects 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. The Public Facilities Projects Fees Capital Project Fuld - 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. 81 CITY OF DUBLIN GENERAL IMPROVEMENTS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 EXPENDITURES: Capital outlay: General improvements Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTI LER FINANCNG SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE N FUND BALANCE BEGINNNG FUND BALANCE ENDNG FUND BALANCE Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative; $2,195,168 $8.834,910 $6,641,674 $2,193,236 82 2,195,168 8,834.910 6,641,674 2,193,236 (2,195,168) (8,834,910) (6,641,674) 2,193,236 2,195,168 8,927,669 6,644,158 (2,283,511) (2,484) (2,484) 2,195,168 8,927,669 6,641,674 (2,285,995) $92,759 ($92,759) CITY OF DUBLIN COMMUNITY IMPROVEMENTS PROJECTS CAPITAL PROJECT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 EXPENDITURES: Community improvements Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE - BEGINNING FUND BALANCE ENDING FUND BALANCE Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) 83 $89,574 $252,783 $213,777 $39,006 89,574 252,783 213,777 39.006 (89,574) (252.783) (213,777) 39,006 89,574 139.915 213.777 73,862 89,574 139,915 213,777 73,862 ($112.868) $112.868 CITY OF DUBLIN PARKS PROJECTS CAPITAL PROJECT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 EXPENDITURES: Capital outlay: Parks Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE LV FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Variance wiih Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) $3.959,554 $2,043,516 $996,669 $1.046,847 3,959554 2,043,516 996,669 1,046,847 (3,959,554) (2,043,516) (996,669) 1,046,847 3,959,554 3,550,312 1,021,414 (2,528,898) (24,745) (24,745) 3.959,554 3,550,312 996,669 (2,553,643) $1,506,796 ($1,506,796) 84 CITY OF DUBLIN STREETS PROJECTS CAPITAL PROJECT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 EXPENDITURES: Capital outlay: Streets Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Total Other Financing Sources (Uses) NET Cl IANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) $7,611,037 $7.462,318 $2,959,555 $4,502,763 7.611,037 7,462,318 2,959,555 4502.763 (7,611,03 (7,462,318) (1959,555) 4,502,763 85 7,611,037 7,424,254 2,959,555 (4A64.699) 7,611,037 7,424,254 2,959,555 (4,464,699) ($38,064) $38.064 CITY OF DUBLIN PUBLIC FACILITIES PROJECTS FEES CAPITAL PROJECT FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES: Interest Developer fees Total Revenues EXPENDITURES: Capital outlay Culture and leisure Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out Total Other Financing Sources (Uses) NET CI -IANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) $123,150 $123,150 $155,537 532,387 8,379,560 8,379,560 15,138,098 6,758,538 8,502,710 8.502,710 15,293,635 6.790,925 26,650 26,650 26,650 26,650 26,650 26,650 8,476,060 8,476,060 15,293,635 6,817,575 (3,195,830) (3,195,830) (539,637) 2,656,193 (3,195,830) (3,195,830) (539,637) 2.656,193 $5,280,230 $5,280,230 14,753,998 $9,473,768 m 3,586,077 $18,340,075 CITY OF DUBLIN FIRE IMPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF RFVRNUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES: Other revenue Total Revenues EXPENDITURES: Current: Public safety Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES NET CHANGE IN FUND BALANCE BEGINNING FIND BALANCE (DEFICIT) ENDING FUND BALANCE (DEFICIT) Budgeted Amounts Original Final 87 Variance with Final Budget Positive Actual Amounts (Negative) $202,900 $202,900 5392,627 $189.727 202,900 202,900 392.627 189,727 15.553 (15,553) 15,553 (15,553) 202,900 202,900 377.074 174,174 $201900 $202,900 377,074 $174,174 (1,735,988) ($1,358,914) CITY OF DUBLIN TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 88 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) REVENUES: Interest $23,490 $23,490 $87,145 $63,655 Other revenue 918.120 918,120 2,076,676 1.158,556 Total Revenues 941,610 941,610 2,163,821 1,222,211 EXPENDITURES: Current: General government 300,000 260,738 39,262 Community development 43.940 43,940 1,041 42,899 Total Expenditures 43,940 343,940 26L779 82,161 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 897,670 597,670 1,902,042 1,304,372 OTHER FINANCING SOURCES (USES) Transfers out (3,318,393) (3,318,393) (930,466) 2,387,927 Total Other Financing Sources (Uses) (3,318,393) (3,318,393) (930,466) 2,387,927 NET CHANGE IN FUND BALANCE ($2,420,723) ($2,720,723) 971,576 $3,692,299 BEGINNING FUND BALANCE 7,063,185 ENDING FUND BALANCE $8,034,761 88 NON -MAJOR GOVERNMENTAL FUNDS (Continued) AMERICAN RECOVERY ANTI) REINVESTMENT ACT Established to account for the use of funds received from the Federal governments related to environmental activities. STORM WATER MANAGEMENT Established to account for the funds received from the State and designated specifically for the use of storm water related activities. BOX CULVERT Established to account for the funds designated for the maintenance and repairs of box culvert in the East Dublin area. DUBLIN/DOUGIIERTY STORM WATER MANAGEMENT Established to account for funds designated for the management of the Dublin /Dougherty area storm water units. VILLAGE PARKWAY STORM WATER MANAGEMENT Established to account for funds designated for 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. PUBLIC ART 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. CABLE TV FACILITIES Established to account for Cable TV Facilities fees collected from Cable Television providers and passed through to the City for local cable television as allowed under State and Federal franchisine laws. HEALTH AND WELFARE: NOISE MITIGATION Establish to account for the fees received from developers of properties, which can only be used for the noise mitigation measures. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) Used to account for grants and expenditures related to Community Development Block Grants received. MAINTENANCE DISTRICTS: Established to account for revenue and related expenditures of lighting and landscape districts. 89 NON -MAJOR GOVERNMENTAL FUNDS (Continued) MEASURE B SALES TAX Local Streets - Established to account for an Alameda County voter sales tax used for improvements on streets and roads. MEASURE B SALES TAX Bike and Pedestrian - Established to account for an Alameda County voter approved increase in sales tax used for bike and pedestrian related projects. CONGESTION MANAGEMENT AGENCY Established to account for Rinds received from the Alameda County Congestion Management Agency. TRAFFIC CONGESTION RELIEF (TCRF) Established to account for traffic congestion relief expenditures funded by a State grant. HIGHWAY SAFETY TRAFFIC REDUCTION BOND Established to account for the receipts of funds for local streets and road improvements. FEDERAL TRANSPORTATION (TIGER) Established to account for the receipts of Federal grants for approved street and trail improvements funded by a one -time Federal grants. ACTC VEHICLE REGISTRATION FEE Established to account for an Alameda County Transportation Commission (ACTC) voter approved increase in vehicle registration fee that is distributed by ACTC to be used for street and road system maintenance. ENVIRONMENTAL: MEASURE D RECYCLING 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 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 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. all NON -MAJOR GOVERNMENTAL FUNDS (Continued) AMERICAN RECOVERY AND REINVESTME NT ACT Established to account for the use of funds received from the Federal governments related to environmental activities. - STORM WATER MANAGEMENT Established to account for the funds received from the State and designated specifically for the use of storm water related activities. BOX CULVERT Established to account for the funds designated for the maintenance and repairs of box culvert in the East Dublin area. DUBLIN/DOUGHERTY STORM WATER MANAGEMENT Established to account for funds designated for the management of the Dublin/Dougherty area storm water units. VIELLAGE PARKWAY STORM WATER MANAGEMENT Established to account for funds designated for 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 Tai Rate approved by voters on November 4, 2008. PUBLIC ART 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. CABLE TV FACILITIES Established to account for Cable TV Facilities fees collected from Cable Television providers and passed through to the City for local cable television as allowed under State and Federal franchising laws. HEALTH AND WELFARE: NOISE MITIGATION Establish to account for the fees received from developers of properties, which can only be used for the noise mitigation measures. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) Used to account for grants and expenditures related to Community Development Block Grants received. MAINTENANCE DISTRICTS: Established to account for revenue and related expenditures of lighting and landscape districts. 91 CITY OF DUBLIN NON -MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEETS JUNE 30, 2012 Special Revenue Funds ' Special Supplemental Local Law Criminal Vehicle Law Enforcement Activitv Abatement Enforcement Block Grant Traffic Safety ASSETS Cash and investments $124,998 $215,314 $50,562 Accounts receivable 15,072 Total Assets $124,998 $215.314 $65,634 LIABILITIES Accounts payable Deposits payable Contract retention payable Deferred revenue Due to other funds Total Liabilities FUND BALANCE Fund balance: Restricted Public safety programs Street maintenance and construction Health and welfare programs Recycling programs Capital improvement projects Total Fund Balances Total Liabilities and Fund Balances $165 $15,826 $28.003 1 5,826 165 28,003 109,172 215,149 109,172 215,149 $124,998 $215,314 92 I 37,631 37,631 $65,634 Special Revenue Funds Emergency Measure B Measure B Congestion Federal Asset Medical Enforcement Sales Tax Sales Tax Management Seizure Services Grants State Gas Tax SAFETEA -LU Local Streets Bike/Pedestrian Agcncy $109,157 $24,420 S5,035 $1,983,817 $792,041 $189.629 71.489 5651,460 51,810 - 178.355 $290,981 $109,157 $95,909 $5.035 $1,983,817 $651,460 $843,851 S367.984 5290,981 $457 $79,198 51,091 S78,369 $23 2,471 457 79.198 1.091 108,700 16,711 3,944 S651.460 $290.981 651.460 23 290.981 1,902.977 $843.851 367,961 108,700 16,711 3,944 1,902.977 843,851 367.961 S109.157 $95,909 S5,035 $1983,817 $651,460 $843,851 $367.984 $290,981 (Continued) 93 CITY OF DUBLIN NON -MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEETS JUNE 30, 2012 Revenue Funds Highway $507,790 ACTC Traffic Safety Federal Vehicle Congestion Traffic Transportation Registration Measure D Relief Reduction Bond (TIGER) Fee Recycling ASSETS Cash and investments - $507,790 $210,181 $4.377 Accounts receivable 7,831 $73,164 40,546 34,685 Total Assets $515.621 $73,164 $250,727 $39,062 LIABILITIES Accounts payable $2,878 Deposits payable Contract retention payable Deferred revenue $17,597 Due to other ftmds $73.164 Total Liabilities 73.164 17.597 2,878 FUND BALANCE Fund balance: Restricted Public safety programs $515.621 233,130 _ Street maintenance and construction Health and welfare programs Recycling programs 36,184 Capital improvement projects Total Fund Balances 5 15,62 1 233, t30 36.184 Total Liabilities and Fund Balances 55 15.62 1 $73.164 $250.727 $39,062 di Revenue $48,046 $189,597 $25,127 $353,098 $98,785 $77,269 $186,700 $48,046 $189597 $186.700 525,127 $353,098 $98.785 $77,269 $8.663 $186,700 186.700 $48,046 180,934 $25.127 $353,098 $98,785 $77,269 48,046 180.934 25,127 353,098 98,785 77,269 $48,046 $189.597 $186,700 525.127 S353,098 $95785 $77,269 (Continued) 95 Dublin/ Village American Storm Dougherty Parkway Garbage Local Recovery and Water Storm Water Storm Water Service Recvclino Reinvestment Act Management Box Culvert Management Management $48,046 $189,597 $25,127 $353,098 $98,785 $77,269 $186,700 $48,046 $189597 $186.700 525,127 $353,098 $98.785 $77,269 $8.663 $186,700 186.700 $48,046 180,934 $25.127 $353,098 $98,785 $77,269 48,046 180.934 25,127 353,098 98,785 77,269 $48,046 $189.597 $186,700 525.127 S353,098 $95785 $77,269 (Continued) 95 CITY OF DUBLIN NON -MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEETS JUNE A 2012 Revenue Funds M East Bay Cable Community Regional TV Noise Development Park District Public Art Facilities Mitigation Block Grant ASSETS Cash and investments $272,941 $67,612 $70,259 Accounts receivable 35,795 $6,213 Total Assets 5272.941 $103,407 $70,259 $6,213 LIABILITIES Accounts payable $5,329 Deposits payable Contract retention payable Deferred revenue Due to other funds 884 Total Liabilities 6,213 FUND BALANCE Fund balance: Restricted Public safety programs Street maintenance and construction Health and welfare programs $103.407 $70,259 Recycling programs Capital improvement projects $272,941 Total Fund Balances 272,941 103,407 70,259 Total Liabilities and Fund Balances $272,941 $103,407 570.259 $6,213 M Revenue Funds $178,890 $37,945 583,732 $291,495 $437,037 $6,449,154 7,629 2,038 1,653.768 $186519 537.945 $83,732 $291,495 5439,075. S8.102.922 SX109 $5,007 $8,412 547.593 $25,634 $320,931 15,826 2,471 17,597 1,203,189 30,109 5.007 8A 12 47,593 25,634 1,560.014 156,410 413,441 1,835,036 32,938 75,320 243,902 3,996,101 173,666 265,164 272,941 156,410 32,938 75.320 243,902 413,441 6.542,908 $186519 $37,945 S83,732 S291.495 5439.075 $8.102.922 97 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 Lighting Funds $178,890 $37,945 583,732 $291,495 $437,037 $6,449,154 7,629 2,038 1,653.768 $186519 537.945 $83,732 $291,495 5439,075. S8.102.922 SX109 $5,007 $8,412 547.593 $25,634 $320,931 15,826 2,471 17,597 1,203,189 30,109 5.007 8A 12 47,593 25,634 1,560.014 156,410 413,441 1,835,036 32,938 75,320 243,902 3,996,101 173,666 265,164 272,941 156,410 32,938 75.320 243,902 413,441 6.542,908 $186519 $37,945 S83,732 S291.495 5439.075 $8.102.922 97 1 CITY OF DUBLIN NON -MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CFIANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUESOVER (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 Revenue Funds Special 567 Supplemental Local Law 235,502 Criminal Vehicle Law Enforcement Activity Abatement Enforcement Block Grant Traffic Safety $30,784 $100,000 $1,144 2,404 242 $25 $1,028 158,606 25.723 199 26,867 33,188 100.242 25 159,833 1,334 567 100,242 7,718 235,502 1,334 567 100,242 7,718 235,502 25,533 32.621 (19,330) (19,330) 25,533 13,291 (7,693) (75,669) (7,693) (75,669) 83,639 201,858 7,693 113,300 $109,172 $215,149 $37,631 Revenue Funds 12,114 153,733 1,274 324,079 11,886 1,402,330 688.316 353,081 279,953 29.884 33,417 321,670 10,832 18,064 412.899 12,732 6,000 33,417 321,670 10.832 436.963 12,732 (32,143) 2A09 1,054 965,367 688,316 353,081 267,221 29,884 (482,804) (698,316) (186,447) (387,521) (29,884) (482,804) (688,316) (186,447) (387,521) (29,884) (32,143) 2,409 1,054 482,563 166,634 (120,300) 140,843 14.302 2,890 1,420,414 677,217 488,261 $104700 $16,711 $3.944 $1,902,977 $843,851 $367,961 (Continued) 99 Emergency Measure B Measure B Congestion Federal Asset Medical Enforcement Sales Tax Sales Tax Management Seizure Services Grants State Gas Tax $AFETEA -LU Local Streets Bike/Pedestrian Agency $152,487 $345,525 $122,883 171,573 $11,882 $1,372,482 $688.316 $29,884 $1,274 19 4 17,734 7,556 3,337 12,114 153,733 1,274 324,079 11,886 1,402,330 688.316 353,081 279,953 29.884 33,417 321,670 10,832 18,064 412.899 12,732 6,000 33,417 321,670 10.832 436.963 12,732 (32,143) 2A09 1,054 965,367 688,316 353,081 267,221 29,884 (482,804) (698,316) (186,447) (387,521) (29,884) (482,804) (688,316) (186,447) (387,521) (29,884) (32,143) 2,409 1,054 482,563 166,634 (120,300) 140,843 14.302 2,890 1,420,414 677,217 488,261 $104700 $16,711 $3.944 $1,902,977 $843,851 $367,961 (Continued) 99 CITY OF DUBLIN NON -MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Revenue Funds $648,617 $73,164 1,967 $232,634 $161,790 496 2,750 Total Revenues Highway I ACfC Traffic Safety Federal Vehicle Congestion Traffic Transportation Registration Measure D Relief Reduction Bond (TIGER) Fee Recycling $648,617 $73,164 1,967 $232,634 $161,790 496 2,750 Total Revenues 650,584 73,164 233,130 164,540 EXPENDITURES (UNDER) EXPENDITURES Current: 73,164 233,130 (176,960) General government Public safety Transfer in Highways and streets 5,809 Health and welfare 335,691 Cultural and leisure Total Other Financing Sources (Uses) Community development (73,164) (3,000) Total Expenditures - 341,500 REVENUES OVER (UNDER) EXPENDITURES 650,584 73,164 233,130 (176,960) OTHER FINANCING SOURCES (USES) _ Transfer in Transfer out (134,963) (73,164) (3,000) Total Other Financing Sources (Uses) (134,963) (73,164) (3,000) NET CHANGE IN FUND BALANCES 515,621 233,130 (179,960) FUND BALANCES: Beginning of year 216,144 End ofyear - $515,621 $233,130 $36,184 100 Soecial Revenue Funds Dublin/ Village American Storm Dou&crty Parkway Garbage Local Recovery and Water Storm Water Storm Water Service Recycling Reinvestment Act Management Box Culvert Management Management $18,100 $2,405,851 1,869 3,010 $173,194 2,407,720 21,110 173,194 2,397,815 165,823 $526 (144) $3,876 $1,104 $864 382 3,876 1,104 864 5,000 5,000 2,397,815 165,823 5,000 5,000 9,905 (144.713) 173,194 382 3,876 (3,896) (4,136) 24,745 (173,194) (173,194) 24,745 9,905 (144,713) 25,127 3,876 (3,896) (4,136) 38,141 325,647 349,222 102,681 81,405 $48,046 $180,934 $25,127 $353,098 $98,785 •$77,269 (Continued) 11111 CITY OF DUBLIN NON -MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE -30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government. 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 East Bay Cable Community Regional TV Noise Development Park District Public Art Facilities Ytitigation Block Grant $52,997 $138,347 53.696 420 $757 5,078 2,713 8,774 138.767 3,470 52.997 35,360 35,360 $46,397 46,397 8,774 103,407 3,470 6,600 (100,471) (6.600) (100,471) (600) (91,697) 103,407 3,470 364,638 66,789 5272,941 $103,407 $70,259 102 Revenue Funds $152,487 468,408 3,765,943 2,544,198 $1,862 $275 $766 $2,554 $4,590 62,729 158,606 7,791 2,924 - 197,443 269,653 74,434 105,136 285,841 209,391 944,455 274,439 74,709 105,902 288,395 213,981 8.302,060 270,455 270,455 147,638 876,984 64,668 100,295 234,372 840,775 2,945,726 35,360 11.679 5,364 5.899 8,661 9,119 46,722 282.134 70,032 106,194 243,033 156,757 5.016,022 (7,695) 4.677 (292) 45,362 57,224 3.286.038 24,745 (2,390) (630) (920) (1650) (26,951) (2,319,235) (2,390) (630) (920) (2,650) (26,951) (2,294.490) (10,085) 4,047 . (1,212) 42,712 30,273 991,548 166,495 28,891 76,532 201,190 383,168 5,551,360 $156,410 $32,938 $75,320 $243,902 $413,441 $6,542,908 103 Maintenance Districts Total 1983 -1 1983 -2 1986 -1 1997 -1 1999 -1 Nonmajor Street Stagecoach Dougherty Santa Rita East Dublin Governmental Lighting Landscape Landscape Landscape Street Lighting- Funds $152,487 468,408 3,765,943 2,544,198 $1,862 $275 $766 $2,554 $4,590 62,729 158,606 7,791 2,924 - 197,443 269,653 74,434 105,136 285,841 209,391 944,455 274,439 74,709 105,902 288,395 213,981 8.302,060 270,455 270,455 147,638 876,984 64,668 100,295 234,372 840,775 2,945,726 35,360 11.679 5,364 5.899 8,661 9,119 46,722 282.134 70,032 106,194 243,033 156,757 5.016,022 (7,695) 4.677 (292) 45,362 57,224 3.286.038 24,745 (2,390) (630) (920) (1650) (26,951) (2,319,235) (2,390) (630) (920) (2,650) (26,951) (2,294.490) (10,085) 4,047 . (1,212) 42,712 30,273 991,548 166,495 28,891 76,532 201,190 383,168 5,551,360 $156,410 $32,938 $75,320 $243,902 $413,441 $6,542,908 103 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets I ealth and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Tianster in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 104 SPECIAL CRIMINAL ACTIVITY Budgeted Amounts Original Final $1,300 $1,300 Positive Actual (Negative) $1,144 ($156) 25,723 25,723 1.300 .1,300 26,867 25,567 3,740 3,740 1,334 2,406 3.740 3,740 1,334 2,406 (2.440) (2,440) 25533 27,973 ($2,440) ($2,440) 25,533 $27,973 83,639 $109,172 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 105 VEHICLE ABATEMENT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental 532,000 $30,784 (1,216) Charges for service Interest $31000 3,670 2,404 (1,266) Fines and forfeitures Developer fees 3,670 Other revenue Special assessments Total Revenues 35.670 35,670 33,188 (2,482) EXPENDITURES Current: General government _ Public safety 660 660 567 93 Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures 660 660 567 93 REVENUESOVER (UNDER) EXPENDITURES 35,010 35,010 3 2,62 1 (2,389) OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) (19,330) (19,330) Total Other Financing Sources (Uses) (19,330) (19.330) NET CHANGE IN FUND BALANCES $35.010 $15,680 13,291 ($2,389) FUND BALANCE. Beginning of year 201.858 End of year $215.149 105 CITY OF DUBLIN BUDGETED NON -MAJOR FINDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets Health mid welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET Cl 1ANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 106 SUPPLEMENTAL LAW ENFORCEMENT Variance Budgeted Amounts Positive Original Final Actual - (Negative) $61,620 $t00,000 538380 242 242 i 61,620 100,242 38,622 100,000 100,242 (242) 100,000 100,242 (242) (38,380) ($38,380) 38,380 538,380 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government 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 Transfers (out) Total Other Financing Sources (Uses) NET CHANGE N FUND BALANCES FUND BALANCE: Beginning of year End of year 107 LOCAL LAW ENFORCEMENT BLOCK GRANT Variance Budgeted Amounts Positive Original Final Actual (Negative) S25 $25 25 25 $7,548 7,718 (170) $7,548 2718 (170) (7,548) (7,693) (145) (S7,548) (7,693) ($145) 7,693 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES FN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Tares other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government 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 Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FIND BALANCES FUND BALANCE: Beginning of year End of year 108 TRAFFIC SAFETY Variance Budgeted Amounts _ Positive Original Final Actual (Negative) $38,380 $38,380 - ($38,380) 910 910 $1,028 118 173,500 158,606 (14,894) 173,500 $199 199 212,790 212,790 159,833 (52,957) 276,690 276,690 235,502 41,188 276.690 276,690 235,502 ' 41J88 (63,900) (63,900) (75,669) (11,769) (38380) (38,380) ($102,280) ($63,900) (75,669) ($11,769) 113,300 $37,631 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES N FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service _ Interest fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Can ent General government Public safety Ilighways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES O'lHER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 109 FEDERAL ASSET SEIZURE Variance Budoeted Amounts Positive Original Final Actual (Negative) $1,920 S1,920 $L274 (5646) 1,920 1.920 1,274 (646) 40,220 140,736 33,417 107,319 40320 140,736 33,417 107,319 (38,300) (138,816) (32,143) 106,673 ($38,300) (5138,816) (32,143) - $106,673 140,843 $108,700 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Hi.ghways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES O'I'I-IER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 110 EMERGENCY MEDICAL SERVICES Variance Budgeted Amounts Positive Original Final Actual (Negative) $150,100 $150,100 $152,487 $2,387 171,570 171,570 171,573 3 110 110 19 (91) 321,780 321,780 324,079 2,299 321,670 321,670 321,670 321,670 321,670 321,670 110 110 2.409 2,299 $110 $110 2,409 $2,299 14.302 $16,711 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTI IER FINANCING SOURCES (USES) Transfer in "fransfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year ENFORCEtSIENT GRANT Variance Budgeted .Amounts Positive Original Final Actual (Negative) $4,560 $14,240 $11,882 ($2,358) 4 4 4,560 14,240 11,886 (2,354) 4,560 14,240 10,832 3,408 4,560 14,240 10,832 3,408 1,054 1.054 1,054" $1,054 2,890 $3.944 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets I lealth and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCENG SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 112 STATE GAS TAX Variance Budgeted Amounts Positive Original Final Actual (Negative) $1,280.500 $1,229,500 $1,372,482 5141982 21,340 21,340 17,734 (3,606) 12,114 12,114 1301,840 1,250,840 1,402,330 151,490 42,000 42,000 18,064 23,936 419,550 481,826 412,899 68,927 6.000 6,000 6,000 467,550 529,826 436.963 92,863 834,290 721.014 965,367 244,353 (694,620) (726,663) (482,804) 243,859 (694,620) (726,663) (482,804) 243,859 $139,670 ($5,649) 482,563 $488,212 1,420,414 $1,902,977 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovemmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government 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 Transfers (out) , Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 113 SAFETEA -LU Variance Budgeted Amounts Positive Original Final Actual (Negative) $2,359,000 52,062,000 $688,316 ($1,373,684) 2.359.000 2,062,000 688,316 (1,373,684) 2,359.000 2,062,000 688,316 (1,373.684) (2.39.000) (2,0623000) (688.316) 1.373,684 (2,359,000) (2,062,000) (688,316) 1,373,684 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 EXPENDITURES Current: General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER MEASURE B SALES TAX LOCAL STREETS Variance 333,370 Budgeted Amounts 353,081 Positive OTHER FINANCING SOURCES (USES) Original Final Actual (Negative) Transfer in REVENUES Property taxes - (92,430) (174,843) (186,447) Taxes other than property $322,790 $322,790 $345,525 $22,735 Intergovernmental (11,604) NET CHANGE IN FUND BALANCES $240,940 Charges for service 166,634 $8,107 FUND BALANCE: Interest 10,580 10,580 7,556 (3,024) Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 333.370 333,370 353,08t 19.711 EXPENDITURES Current: General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 333,370 333,370 353,081 19,711 OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) - (92,430) (174,843) (186,447) (11,604) Total Other Financing Sources (Uses) (92,430) (174,843) (186,447) (11,604) NET CHANGE IN FUND BALANCES $240,940 $158,527 166,634 $8,107 FUND BALANCE: Beginning of year 677,217 End of year $843,851 114 r CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government 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 Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 115 MEASURE B SALES TAX BIKE/PEDESTRIAN Variance Budgeted Amounts _ Positive Original Final .Actual (Negative) $114,660 $114,660 5122,883 $8,223 5,770 5,770 3,337 230,140 230,140 $153,733 (2,433) (76,407) 350,570 350,570 279,953 (70,617) 4,430 15,120 12,732 2,388 4,430 15,120 12,732 2388 346.140 335.450 267.221 (68,29) (455,580) (447,580) (387,521) 60.059 (455,580) (447.580) (387,521) 60,059 ($109,440) ($112,130) (120,300) ($8,170) 488,261 $367,961 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Cunent General government 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 Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 116 CONGESTION MANAGEMENT AGENCY Variance Budgeted Amounts Positive Original Final Actual (Negative) $522,000 $522,000 4,170 4,170 $29,884 ($492,116) (4,170) 526,170 526,170 29,884 (496,286) 526,170 526,170 29,884 (496.286) (30,000) (29,884) 116 (30,000) (29,884) 116 $526,170 $496,170 - ($496,170) CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 _ REVENUES Property tares Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety I lighways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVFR (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of yew 117 TRAFFIC CONGESTION RELIEF Variance Budgeted Amounts Positive Original Final Actual (Negative) CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTIIER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other. Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 118 HIGHWAY SAFETY TRAFFIC REDUCTION BOND Variance Budgeted Amounts Positive Original Final Actual (Negative) $600,210 $600,210 $648,617 1,967 $48,407 1,967 600,210 600,210 650,584 50,374 600,210 600,210 650,584 50,374 (600,210) (600210) (134,963) 465,247 (600,210) (600,210) (134,963) 465,247 515,621 $515,621 $515,621 CITY OF DUBLIN BUDGETED NON -MAJOR FUN IDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and Forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDHURES OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 119 FEDERAL TRANSPORTATION (TIGER) Variance Budgeted Amounts Positive Original Final Actual (Negative) $73.164 $73.164 73,164 73,164 73,164 73.164 (73.164) (73,164) (73,164) (73,164) CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUESOVER (UNDER) EXPENDITURES 011IER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year Find of year ifPIq ACTC VEHICLE REGISTRATION FEE Variance Budgeted Amounts Positive Original Final Actual (Negative) $232,634 $232,634 496 496 233,130 233,130 233,130 233,130 233,130 $233.130 $233,130 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 121 MEASURE D RECYCLING Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $156,470 $156,470 $161,790 $5,320 Charges for service Interest 1,440 1,440 (1,440) Fines and forfeitures Developer fees Other revenue 2,750 1750 Special assessments Total Revenues 157,910 157,910 164,540 6,630 EXPENDITURES Current: General government 3,966 3,966 Public safety Highways and streets 2,880 5,810 5,809 1 Health and welfare 323,500 323,500 335,691 (12,191) Cultural and leisure Community development Total Expenditures 326,380 333,276 341,500 (8,224) REVENUES OVER ' (UNDER) EXPENDITURES (168,470) (175.366) (176,960) (1.594) OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) (3,000) (3,000) Total Other Financing Sources (Uses) (3.000) (3,000) NET CHANGE IN FUND BALANCES ($168,470) (5175,366) (179,960) (S4,594) FUND BALANCE: Beginning of year 216.144 End of year $36,184 121 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current General government 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 Transfers (out) Total Other Financing Sources (Uses) NET CHANGE Bd FUND BALANCES FUND BALANCE: Beginning of year End of year - 122 GARBAGE SERVICE Vat iance Budgeted Amounts Positive Original Final Actual (Negative) $2,380,010 $1380,010 $2,405,851 $25,841 350 350 1,869 1,519 2,380,360 2.380,360 2.407,720 27,360 2,399,330 2,399,330 2,397,815 1,515 2,399.330 2.399,330 2,397,815 1,515 (18,970) (18,970) 9,905 28,875 ($18,970) ($18,970) 9,905 $28,875 38,141 $48,046 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 123 LOCAL RECYCLING Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Properly tares _ Taxes other than property Intergovernmental $37,600 $37,600 $18,100 (S19,500) Charges for service Interest 2,870 2,870 3,010 140 Fines and forfeitures Developer fees Other revenue _ Special assessments Total Revenues 40,470 40,470 21,110 (19,360) EXPENDITURES Current General government ' Public safety Highways and streets . Health and welfare 272,800 292,800 165,823 126,977 Cultural and leisure Community development Total Expenditures 272,800 292.800 165,823 126.977 REVENUES OVER (UNDER) EXPENDITURES (232,330) (252.330) (144,713) 107.617 OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES ($232,330) ($252,330) (144,713) $107,617 FUND BALANCE: Beginning of year 325,647 End of year $180,934 123 CITY OF DUBLIN - BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property tares Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets Health and welfare Cultural and leisure Community development 'I otal Fxpenditures REVENUES OVER (UNDER) EXPENDI IURES OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE. IN FUND BALANCES FUND BALANCE: Beginning of year End of year 124 AMERICAN RECOVERY AND REINVESTMENT ACT Variance Budgeted Amounts Positive Original Final Actual (Negative) $167,340, $167,340 $173,194 $5,854 167,340 167,340 171194 5,854 167,340 167,340 173,194 5,854 (167,340) (168,340) (173194) (4,854) (167,340) (168,340) (173,194) (4,854) ($1,000) $1,000 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest . Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUESOVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 125 STORM WATER MANAGEMENT Variance Budgeted Amounts Positive Orig inal Final Actual (Negative) .5489,300 489.300 $526 $526 (144) .(144) 382 382 489,300 382 24.745 (489,300) (489,300) 24.745 25,127 $25,127 382 24,745 24,745 $25,127 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property takes "faxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government 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 Transfers (out) Total Other Financing Sources (Uses) NE I' CHANGE IN 17UND BALANCES FUND BALANCE: Beginning of year End of year 126 BOX CULVERT Budgeted Amounts Original Final $4,930 $4,930 Positive Actual (Negative) $3,876 ($1,054) 4,930 4,930 3,876 (1,054) 80,000 80,000 80,000 80,000 80,000 80,000 (75,070) (75,070) 3,876 78,946 ($75,070) ($75.070) 3,876 $78,946 349,222 $353,098 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property tares Tares other that property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safely Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) 'I ransfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 127 DUBLIN/DOUGHERTY STORM WATER MANAGEMENT Variance Budgeted Amounts Positive Original Final Actual (Negative) $1,600 51,104 ($496) $1,600 1,600 1,104 (496) 1,600 5,000 5,000 5.000 5,000 5,000 5,000 (3,400) (3,400) (3.896) (496) ($3,400) ($3,400) (3,896) ($496) 02,681 $98,785 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government 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 Transfers (out) Total Other Financing Sources (Uses) N13T CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 128 VILLAGE PARKWAY STORM WATER MANAGEMENT Variance Budgeted Amounts Positive Original Final Actual (Negative) $1,260 $1,260 $864 ($396) 1,260 1,260 864 (396) 5,000 5,000 5,000 5,000 5,000 5,000 (3,740) (3,740) (4,136) (396) ($3,740) ($3,740) (4,136) ($396) 81,405 $77,269 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property tares Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety 1- lighways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER .(UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer in 77ansters (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year IIIrQ EAST BAY REGIONAL PARK DISTRICT Budgeted Amounts Original Final Variance Positive Actual (Negative) CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property tares Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Otherrevenue Special assessments Total Revenues EXPENDITURES Current: General government 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 Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 130 PUBLIC ART Variance Budgeted Amounts Positive Original Final Actual (Negative) $3,680 $3,680 $3,696 $16 5,078 5,078 3,680 3,680 8,774 5,094 2,500 2,500 2,500 2500 2,500 2,500 1.180 1,180 8.774 7,594 (100.471) (100,471) (100,471) (100,471) $1,180 $1,180 (91,697) ($92,877) 364,638 $272,941 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 RFV F N U FS Property taxes Taxes other than property Intergovern mental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government 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 Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year CABLE TV FACILITIES Variance Budgeted Amounts Positive Original Final Actual (Negative) 5122,700 5122,700 5138,347 $15,647 980 980 420 (560) 123,680 123.680 135,767 15.087 35.650 35,360 290 35,650 35,360 290 123,680 88,030 103,407 15,377 $123,680 $88,030 103,407 $15.377 End of year $103,407 131 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets Hcalth and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (_USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) Nl F CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 132 NOISE MITIGATION Variance Budgeted Amounts Positive Original Final Actual (Negative) $1.070 $1,070 $757 ($313) 890 890 2,713 1,823 1,960 1.960 3,470 1,510 1,960 1,960 3,470 1,510 $1,960 S1,960 3,470 $1,510 66,789 $70,259 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES TN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30. 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current General government Public safety ' Ilighways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 133 CONMIUNITY DEVELOPNIENT BLOCK GRANT Variance Budgeted Amounts Positive Original Final Actual (Negative) $60,430 560,430 $52,997 ($7,433) 60.430 60,430 52,997 (7,433) 53,830 53,830 46397 7,433 53,830 51830 46,397 7.433 6.600 6.600 6,600 (6.600) (6.600) (6.600) (6,600) (6,600) (6,600) CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Tares other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets I- lealth and welfare Cultural and leisure Community development Total Expenditures REVENUESOVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 134 1983 -1 STREET LIGHTING MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) $1,920 $1,920 $1,862 ($58) 2,500 2,500 2,924 424 270,970 270.970 269,653 (1,317) ($35.429) (10,085) $25344 275,390 275390 274,439 (951) 296,750 296,750 270,455 26,295 8,860 11,679 1 1.679 305,610 308,429 282,134 26,295 (30 -220) (33,039) (7.695) 25.344 (2,390) (2,390) (2.390) (2,390) (2,390) (2,390) ($32,610) ($35.429) (10,085) $25344 166,495 $156,410 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL, FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (1-TINDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CI -IANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 135 1983 -2 STAGECOACH LANDSCAPE MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) $550 5550 5275 ($275) 72,140 72,140 74,434 2,294 72,690 72,690 74,709 2.019 68,990 68,990 64,668 4,322 4.070 5,364 5364 73.060 74,354 70.032 4.322 (370) (1.664) 4,677 6.341 (630) (630) (630) (630) (630) (630) ($1,000) ($2,294) 4,047 $6,341 28,891 $32,938 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES N FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments, Total Revenues EXPENDITURES Current: General government Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER PNANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE N FUND BALANCES FUND BALANCE: Beginning of year End of year 136 1986 -1 DOUGHERTY LANDSCAPE MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) $1,130 $1,130 $766 ($364) 104,250 104,250 105.136 886 105380 105,380 105,902 522 1 16,700 116,700 100,295 16,405 4,590 5.900 5.899 1 121.290 122,600 106.194 16,406 (15,910) (17,220) 292) 16,928 (920) (920) (920) (920 ) (920) (920) ($16,830 ($18.140) (1,212) $16,928 76,532 $75,320 F REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Otherrevenue Special assessments Total Revenues CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCI- IEDUL.E OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 EXPENDITURES Current: General government 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 Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning ofyear End of year 137 1997 -1 SANTA RITA LANDSCAPE MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) $3,060 $3,060 S2,554 ($506) 301,080 301,080 285,841 (15.239) 304,140 304,140 288,395 (15.745) 301,610 301,610 234,372 67,238 7.990 8,662 8,661 1 309.600 i 310,272 243.033 67,239 (5,460) (6332) 45.362 51 -,494 (2.650) (2.650) (2.650) (2.650) (2,650) (2,650) ($8,110) ($8.782) 42,712 $51.494 201,190 $243,902 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2012 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current General government Public safety Highways and streets Health and welfare Cultural and leisure Community devclopment Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE: Beginning of year End of year 138 1999 -1 EAST DUBLIN STREET LIGHTING - KAINTENANCE DISTRICT .t Variance Budgeted Amounts Positive Original Final Actual (Negative) $4,670 $4,670 $4,590 ($80) 208,760 208,760 209,391 631 213,430 213,430 213,981 551 134,280 147,638 147,638 7,370 9,120 9,119 1 141,650 136,758 156.757 t 71,780 56.672 57,224 552 80,980) .(80,980) (26,95t) 54,029 (80,980 ) (80,980) (26,951) 54,029 (59,200) ($24,308) 30,273 $54,581 383,168 $413,441 INTERNAL SERVICE FUND 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: VEHICLE REPLACEMENT This fund is an interest bearing Internal Service Fund established to finance necessary vehicle replacements. BUILDING REPLACEMENT This fund is an interest bearing Internal Service Fund established to finance future major building component repair expenditures. EQUIPMENT REPLACEMENT This fund is an interest bearing Internal Service Fund established to finance necessary equipment replacements. MAINTENANCE AND REPAIR This fund is an interest bearing Internal Service Fund established to account for the on -going maintenance and repairs of vehicle and office equipment. RETIREE HEALTH CARE 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 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 1.00 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. PARK REPLACEMENT This fund was established to finance future major maintenance and repairs of City's parks. 139 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF NET ASSETS JUNE 30, 2012 Noncurrent Assets Land Vehicle Building Equipment Maintenance Nonew rent Liabilities: Replacement Replacement Replacement and Repair ASSETS Machinery and equipment 3,755,480 461,552 Current Assets: Less: accumulated depreciation (2,593,213) (23,968,967) (2,419,721) Cash and investments $3,033,760 $8,648,422 $2,416,212 $53,673 Accounts receivable 58,260,262 2,616,533 88,871 Prepaid items 1,162,267 49,611,840 200,321 35,198 Total current assets 3,033,760 8,648,422 2,416,212 88,871 Noncurrent Assets Land 10,774,792 196 Construction in progress Nonew rent Liabilities: 229,387 Building and improvements 62,115,076 Machinery and equipment 3,755,480 461,552 2,620,042 Less: accumulated depreciation (2,593,213) (23,968,967) (2,419,721) Total non - current assets 1,162,267 49,611,840 200,321 Total Assets 4,196,027 58,260,262 2,616,533 88,871 LIABILITIES Current Liabilities: _ Accounts payable and accruals 196 28,499 Due to other funds Total current liabilities 196 28,499 Nonew rent Liabilities: Advances from other fiords Total non - current liabilities Total Liabilities 196 28,499 NET ASSE75 Invested in capital assets 1,162,267 49,611,840 200,321 Unrestricted 3,033,760 8.648,422 2,416,016 60,372 Total Net Assets $4,196,027 $58,260,262 $2,616,337 $60372 140 Retiree PERS Park I lealth Caic Side Fund Replacement Total $105,368 $14,257,435 $370,489 370,489 35.198 370,489 105,368 14,663,122 10,774,792 229,387 62,115,076 6,837,074 (28,981,901) 50.974 428 370.489 105,368 65,637550 42,225 70,920 313,829 313,829 356,054 384,749 $1,994,826 1,994,826 1,994,826 1,994,826 356,054 1,994,826 2,379,575 50,974,428 14,435 (1,994,826) 105,368 12,283,547 $14,435 ($1,994,826) $105,368 563,257,975 141 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2012 OPERATING REVENUES Charges for services Other revenue Total Operating Revenues OPERATING EXPENSES Supplies and services OPEB expenses Depreciation Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Interest income Gain from sale of property Total Nonoperating Revenues (Expenses) Income (Loss) Before Transfers Transfer from the General Improvement Capital Funds Transfer to the General Improvement Capital Projects Fund Net transfers Change in Net Assets BEGINNING NET ASSETS (DEFICIT) ENDING NET ASSETS (DEFICIT) Vehicle Building Equipment Maintenance Replacement Replacement Replacement and Repair $346,176 $143,268 $286,228 $405,041 2,578 346.176 143,268 286228 407,619 19,764 30,073 76,447 370,200 256,044 2,118,823 108,428 275,808 2,148,896 184,875 370.200 70,368 (2,005,628) 101,353 37,419 34,259 96,103 26,055 392 6.302 40,561 96,103 26,055 392 110,929 (1,909,525) 127,408 37,811 2,484 (145595) (145,595) 2,484 110,929 (2,055,120) 129,892 37,811 4.085.098 60,315,382 2,486,445 22,561 $4,196,027 $58,260.262 $2,616,337 $60,372 142 Retiree PLRS Park Health Care Side Fund Replacement Total $1,153,929 $346,129 $104,664 $2,785,435 373,076 375,654 L527,005 346,129 104.664 3,161.089 496,484 1,514,112 - 1,514,112 2,483,295 1,514,112 4,493,891 12,893 346,129 104,664 (1,332,802) 1,340 704 158,853 6,302 1.340 704 165,155 14,233 346,129 105,368 (1,167,647) 2,484 (145,595) (143,111) 14,233 346,129 105,368 (1,310,758) 202 (2,340,955) 64,568.733 $14,435 ($1,994,826) $105,368 $63.257,975 143 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBNNG STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2012 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from other funds Payments to suppliers and service providers Other revenues Cash Flows from (used for) Operating Activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Receipts from other funds Payments to other funds Cash Flows (used for) Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets Sales of capital assets Cash Flows from Capital and Related Financing Activities CASH FLOWS FROM INVESTING ACTIVITIES Interest received Cash Flows from Investing Activities Net Cash Flows Cash and investments at beginning of year Cash and investments at end of year Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation Change in assets and liabilities: Accounts receivable Prepaid expenses Accounts payable and accruals Cash Flows from Operating Activities Vehicle Building Equipment Maintenance Replacement Replacement Replacement and Repair $348,348 $143,268 $286,228 $406,281 (22,746) (30,073) (77,681) (364,384) 2,578 325.602 113,195 208,547 44,475 2,484 (145,595) (145.595) 2.484 (424,158) (16,345) (85,711) 6,302 (417,856) (16,345) (85,711) 34.259 96,103 26,055 392 34,259 96.103 26.055 392 (57.995) 3.091,755 47,358 8,601,064 151,375 2,264,837 44,867 8,806 $3.033,760 $8,648,422 S2 416,212 $53,673 144 $70,368 ($2,005,628) $101,353 $37,419 256,044 2,118,823 108,428 2,172 1,240 ,(2,268) (2,982) (1,234) 8,084 $325,602 $113,195 $208.547 $44,475 Retiree PERS Park Health Care Side Fund Replacement Total 5891,884 $346,129 $104,664 $2,526,802 (1,760,681) (2,255,565) 371076 375.654 (495,721) 346,129 104.664 646,891 2.484 313,829 (346,129) (177,895) 313,829 (346,129) (175,411) (526,214) 6.302 (519,912) 1,340 704 158,853 1340 704 158.853 (180,552) 105,368 110.421 180.552 $14,147.014 5105.368 $14,257,435 $12,893 $346,129 $104.664 ($1,332,802) 2,483,295 (262,045) (253,633) (2,268) (246,569) (242,701) ($495,721) $346,129 $104,664 5646,891 145 This Page Left Intentionally Blank AGENCY FUNDS 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 To account for the special assessment established to fund the improvements to Dublin Boulevard. ASSOCIATED COMMUNITY ACTION PROGRAM This fund was established for the City to act as the fiscal agent to collect and account for the contributions received from twelve cities in Alameda County and to coordinate administrative service for the closing of the ACAP, a Joint Powers Agency, in social services related programs serving Alameda County communities. GEOLOGIC HAZARD ABATEMENT DISTRICTS Two districts were formed under provisions in the California Public Resource Code, which establishes in section 25670 that a District is a political 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 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 Fallon Road. Schaefer Ranch Geologie Hazardous 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 boundary of the City limits north of Interstate 580, and south of the unincorporated area of Alameda County. 147 Associated Community Action Program Assets Cash and investments Accounts receivable Liabilities Accounts payable Due to trustee Fallon Village Geological Hazardous Abatement District Assets Cash and investments Liabilities Accounts Payable Due to trustee $753,230 $192,328 5849,748 $100,810 75,385 75,385 $833,615 $192,328 - $925,133 5100,810 $40,354 CITY OF DUBLIN $40,354 $3,044 793,261 189,284 AGENCYFUNDS 97,766 $833,615 $192,328 5925,133 STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2012 Balance Balance June 30, 2011 Additions Deductions June 30, 2012 Dublin Boulevard Extension Assessment District Assets Cash and investments $236,367 $23,390 $226381 $33,376 Restricted cash and investments 164,500 8 164,508 $400,867 $23,398 $226,381 $197,884 Liabilities Accounts payable - S43 S43 Due to bondholders 400,824 $23,398 226,338 $197,884 $400,867 $23,398 $226,381 $197,884 Associated Community Action Program Assets Cash and investments Accounts receivable Liabilities Accounts payable Due to trustee Fallon Village Geological Hazardous Abatement District Assets Cash and investments Liabilities Accounts Payable Due to trustee $753,230 $192,328 5849,748 $100,810 75,385 75,385 $833,615 $192,328 - $925,133 5100,810 $40,354 $3,044 $40,354 $3,044 793,261 189,284 884,779 97,766 $833,615 $192,328 5925,133 5100,810 $154,585 $187,157 $5.722 $336,020 $154,585 $187,157 $5.722 5336.020 5208 5208 154,377 5187,157 5,514 $336,020 $154585 $187,157 $5.514 $336,020 148 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2012 (Continued) Schaefer Ranch Geological Hazardous Abatement District Assets Cash and investments Liabilities Accounts Payable Due to trustee Totals - All Agenev Funds Assets Cash and investments Restricted cash and investments Accounts Receivable Liabilities Accounts Pavable Due to trustee Due to bondholders Balance June 30, 2011 Additions Deductions Balance June 30, 2012 $278,452 5259,223 $6,690 $530.985 $278,452 $259,223 $6,690 $530,985 $208 $208 278,244 $259,223 6,482 $530,985 $278.452 $259,223 $6,482 $530,985 $1,427,634 $662,098 $1,08$541 $1,001,191 164,500 8 164,508 75,385 75385 $1,667519 $662.106 $1,163,926 51,165,699 540,813 $3,044 $40,813 $3,044 1,225,882 635,664 896,775 964,771 400,824 23,398 226,338 197.884 $1,667,519 5662,106 $1,163.926 $1.165,699 149 This Page Left Intentionally Blank STATISTICAL SECTION This part of the City'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 City's overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit. Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well being have changed over time: 1. Net Assets by Component 2. Changes in Net Assets 3. Fund Balances of Governmental Funds 4. Changes in Fund Balance of Governmental Funds Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax: 1. Assessed Value and Estimated Actuarial of Taxable Property 2. Direct and Overlapping Property Tax Rates 3. Principal Property Taxpayers 4. Property Tax Levies and Collections Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future: 1. Direct and Overlapping Debt 2. Legal Debt Margin Information' Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place: 1. Demographic and Economic Statistics 2. Property Value, Construction and Bank Deposits 3. Principal Employers Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs: I. Full -Time Equivalent City and Contract Government Employees by Function 2. Operating Indicators by Function 3. Capital Asset Statistics by Function 4. Top 25 Sales Tax Producers 5. Miscellaneous Statistical Data Sources Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. The City implemented GASB Statement 34 in fiscal year 2011 -2012; schedules presenting' government -wide information include information beginning in that year- 151 z: This Page Left Intentionally Blank 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 Property Tax Sales Tax Franchise Tax Property Transfer Tax Transient Occupancy Tax Total 2003 $10,142,650 $13,573,607 $1,394,953 $379,089 $717,083 $26,207,382 2004 11,422,308 14,297,705 1,505,435 571,361 664,309 28,461,118 2005 14,167,079 14,517,465 1,559,900 831,003 663,632 31,739,079 2006 16,891,670 14,807,059 1,789,356 690,404 727,612 34,906,101 2007 20,266,216 14,458,912 2,111,281 596,533 800,773 38,233,715 2008 2-9,229,039 14,684,091 2,221,930 493,175 789,396 40,417,631 2009 23,306,302 12,424,541 2,180,846 254,022 577,057 38,742,768 2010 22,286,209 12,581,879 2,271,574 372,646 557,000 38,069,308 2011 21,918,484 12,969,119 2,639,584 475,199 683,732 38,686,118 2012 22,398,847 15,465,340 3,004,367 411,575 879,733 42,159,862 Data Source: City of Dublin Administrative Services Department Notes: The City experienced a dramatic decline in Transient Occupancy'I'axes 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. 153 City of Dublin Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting) Primary government: Governmental activities: Invested in capital assets, net of related debt Restricted Unrestricted Total primary government 2003 2004 $ 61,016,642 $ 80,050,710 34,110,132 37,455,125 50,413,267 50,943,803 2005 2006 2007 $ 383,667,187 $ 387,888,143 $ 399,631,407 45,288,468 48,480,463 45,647,928 52,176,440 57,766,785 61,789,687 $ 145,540,041 $ 168,449,638 $ 481,132,095 $ 494,135,391 $ 507,069,022 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 20042005 is due to a retroactive valuation recorded for the City's existing infrastructure in accordance with GASB 34. 154 2008 2009 2010 2011 2012 $ 411,619,671 $ 423,474,384 $ 436,857,107 $ 433,9,703 $ 433,548,888 48,572,719 36,906,687 25,004,384 21,453,867 36,714,724 68,456,077 66,597,197 70,203,471 76,303,907 86,063,259 $ 528,648,467 $ 526,978,268 $ 532,064,962 $ 531537,477 $ 556,326,871 155 City of Dublin Changes in Net Assets Last Ten Fiscal Years (accrual basis of accounting) Expenses: Govemmental 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: Govemencetal acdvides: Taxes: Property taxes Sales tax Other taxes Motor vehicle tax, unrestricted Investment income, unrestricted Other general revenues Total governmental activities 2003 2004 2005 2006 2007 $ 6,135,341 $ 6,288,645 $ 3,081481 $ 4,940,586 $ 8,866,758 14,026,216 17,135,716 19,047,262 20,314,535 22,306,240 15,187,872 939,260 19,810,590 13,894,865 17,182,208 1,319,228 3,755,564 1,722,224 1,887,417 1,816,800 4,730,430 1,603,494 8,954,495 10,074,239 14,080,040 5,334,616 6,113,171 7.210,558 8,553,887 11,157,417 46,763,736 351835,850 59,826,710 59,665,529 75,409,463 202,330 2,603 5,198 4,011 208,247 1,073,145 851,864 1,197,925 1,270,233 2,284,955 75,609 2,321,473 2,451,377 2,167,740 745,727 1,033,317 1,558,930 1,541,361 2,092,566 2,483,619 1,009,572 1,252,866 1,617,013 1,751,965 1,508,752 5,182,361 6,135,027 6,969,366 6,629,383 9,432,851 1,824,368 239,094 169,906 238,053 2,813,079 19,424,093 15,364,732 42,585,906 18,900,426 25,973,730 29,774,815 27,726,589 56,538,052 33,054,377 45,450,963 $ 06,988,921) 5 (8,109,261) $ (3,288,658) $ (26,611,152) $ (29,958,500) 10,783,414 11,422,308 14,167,079 16,891,670 20,266,216 13,193,407 13,940,263 14,152,987 14,363,863 14,025,869 2,491,125 2,865,226 3,181,939 3,343,943 3,508,587 2,072,4411 1,682,152 413,075 856,766 261,276 1,710,903 799,0118 2,704,647 2,505,911 4,053,187 398,413 309,901 199,233 280.386 1,1U9,734 30,639,702 31,018,858 34,818,960 38,242,539 43,224,869 Changes in net assets $ 13,660.781 $ 22,909,597 $ 31.5311,302 $ 11,631,387 $ 13,266.369 Data Source: City of Dublin Administrative Services Department Notes: The City of Dublin implemented CASB34 for the fiscal year ended June 30, 2002 Information prior to the implementation of GASB34 is not available. 156 2008 2009 2010 2011 2012 $ 7,790,286 $ 8,721,545 $ 8,396,199 $ 9,322,322 $ 10,116,219 23,282,634 23,880,635 23,797,696 24,413,496 26,7812M 20,196,496 20,368,655 15,969,371 10,142,946 6,709,217 1,669,353 1,869,428 3,615,077 12,749,042 146,204 12,200,759 11,563,136 10,757,355 9,304,429 9,804,128 8,276,993 7.175,272 5,112.469 5.482,552 6.089,415 73,436,521 73,578,671 67,648,167 71,414,787 59,646,466 216,334 215,711 219,386 225,109 140,418 1,301,328 1,545,935 1,600,890 1,821,404 1,061,352 13,794 598,542 8,078,369 450,937 738,662 3,301,877 3,050,719 2,798,092 2,874,952 3,063,223 1,722,627 1,719,501 2,101,867 2,214,407 1,909,812 5,599,417 4,720,2211 3,775,102 5,546,417 9,051,970 2,747,497 2,245,945 2,29,043 2,220,247 1,008,318 37,393,930 14.599,068 12.254,443 15.745,614 23.668,070 52,296,804 28,695,642 33,057,192 31,099,087 40,641,825 $ (21,139,717) S (44,883,029) $ (34,590,975) $ (40,315,700) $ (19,004,641) 22,29,039 23,311,587 22,287,783 21,918,484 22,246,360 - 14,225,661 12,832,417 12,183,267 12,969,119 14,996,932 3504,501 2,180,816 3,201,219 3,798,515 4,295,675 197,245 160,242 141,21 250,974 4,399,908 4,266,601 758,016 536,047 865,719 1,202,074 461,137 1,106,163 1,079.419 1384349 45,758,428 43,212 ,830 39,677,669 40,552,558 43,794,035 S 24.618.711 5 (1,670,199) S 5,086,694 $ 236,858 S 24.789394 157 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 Non - Spendable Restricted Committed Assigned Unassigned Total general fund All Other Governmental Funds Reserved Unreserved, designated, reported in Special revenue funds Capital projects funds Undesignated Non - Spendable Restricted Committed Assigned Unassigned Total all other governmental funds 2003 2004 2005 2006 2007 $ 529,811 $ 1,896575 $ 2,275,433 $ 2,080,678 $ 5,741,942 - 110001000 1,000,000 1,000,000 1,000,000 33,665,113 32.581,785 32,971,221 38,860,039 44,328,550 8,089,385 8,222,723 41,239,100 5,985,440 4,258,539 1,651,965- 2,719,008 2970,721 2,970,720 2970,722 $ 43,936,274 $ 46,420,091 $ 80,456,475 $ 50,896,877 $ 58,299,753 $ 34,665,390 $ 37,395,125 $ 44,948,468 $ 48,140,467 $ 43,485,046 (1,075,338) (1,810,979) (2,202,289) (1,893,598) (1.791,762) 7 33,590,052 7 35,584,146 $ 42,746,179 $ 46,246,869 $ 41,693,284 Total All Governmental Funds $ 77,526,326 $ 82004,237 $ 123,202,654 $ 97,143,746 $ 99,993,037 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 the General Fund. In FY2011 the City implemented GASB No. 54 - the new Fund Balance Reporting and Governmental Fund Type Definitions. This Statement establishes the definitions for new categorlesfor reporting fund balance and revises the definitions for governmental fund types. As a result five new components of fund balance were established: Non - Spendable, Restricted, Committed, Assigned, and Unassigned.Prior to FY2011, the Fund Balances were reported as Reserved and Unreserved Fund Balances. Post FY2010, the Reserved Fund Balances were further categorized as Non -Spendable, Restricted and Committed and the Unreserved Fund Balances were classified as Assigned and Unassigned. 158 2008 2009 2010 2011 2012 $ 5,623,014 $ 5,343,610 $ 5,922446 $ 1,000,000 1,000,000 1,000,000 11000,000 - - - 42,181,292 34,474,209 3,960 - - 8,884,334 11,049,175 7,394,088 - - - - 8,860,000 - - - - 8,420,000 - - - - 203,507 744,041 791,582 802,311 - - 2,970,722 5,868,847 5,868,847 - - - 210,000 1,000,000 - - 500,000 750,000 4500,000 - - - - 13,000,000 - - 1,508,906 2,334,061 1,516,569 - - - 301,874 171,100 - - - - 11350,000 - - - 4,096,768 3,433,886 - - - 27,893,755 24,176,650 17,407,053 22080,677 - - - 14,745,685 15,072,535 $ 63,412,309 $ 62123,358 S 6'1,012,828 $ 64,143,261 5 64,763,748 $ 50,789,419 $ 34,570,414 $ 25,004,384 $ - $ (1,837,021) (1,841,336) (3,168,929) - - - - - 21,453,867 38,073,638 - (1,735,988) (1,358,414) $ 48,952398 $ 32,729,078 $ 21,835,455 $ 19,717,879 $ 36,714,724 $ 112,364,707 $ 94,852436 $ 82,848,283 $ 83,861,140 $ 101,478,472 159 City of Dublin Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Data Source: City of Dublin Administrative Services Department 160 2003 2004 2005 Revenues: Property taxes $ 10,142,650 $ 11,422,308 14,167,079 Taxes other than property 16,064,732 17,038,810 17,572,000 Intergovernmental 11,412,577 4,942,167 3,312,079 Licenses and permits 2,421,885 3,090,992 3,520,141 Charges for services 5,680,902 5,789,970 6,623,303 Investment income 2,709,459 857,734 2,948,612 Use of property 139,019 130,741 125,835 Fines and forfeitures 274,284 272,153 292,658 Developer fees 10,195,565 13,455,274 14,361,337 Special assessments 501,424 593,201 744,100 Other revenues 672,895 1,152,096 954,949 Total revenues 60,215,392 58,745,446 64,622,093 Expenditures Current: General government 4,363,241 6,193,881 6,535,408 Public safety 13,948,110 17,222,501 19,163,929 Highways and streets 1,850,944 2,072,806 2,272,310 Health and welfare 1,352,083 3,762,260 1,734,787 Culture and leisure services 4,611,564 5,098,102 5,377,134 Community development 5,399,648 6,363,727 7,404,619 Capital outlay: General - 12,574,726 2,170,910 1,250,772 Health and welfare - - - Community improvements, 478,309 734,113 462,751 Culture and leisure - - - Parks 2,370,369 5,425,790 9,237,426 Streets - 18,345,206 7,045,878 2,828,616 Debt service: Principal - Total expenditures 65,294,200 56,089,968 56,267,752 Excess (deficiency of revenues over (under) expenditures (5,078,808) 2,655,478 8,354,341 Other financing sources (uses): Transfers in 18,580 21,905 1,336,275 Transfers out (18,580) (21,905) (1,336,2.75) Total other financing sources (uses) - - - Net change in fund balances $ (5,078,808) $ 2,655,478 $ 8,354,341 Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.0% Data Source: City of Dublin Administrative Services Department 160 4,983,006 Fiscal Year 5,590,247 6,047,115 8,957,744 7,935,407 2006 2007 2008 2009 2010 2011 2012 16,891,670 20,266,213 22,229,039 23,306,302 22,286,209 22,067,074 22,398,347 18,014,431 17,967,499 18,188,593 15,436,466 15,783,099 17,210,947 19,761,015 2,593,336 2,845,936 3,431,314 2,393,153 7,951,237 3,946,271 3,962,572 3,142,223 2,572,069 1,784,644 1,623,029 2,260,364 2,752,748 4,501,736 7,090,105 9,476,984 8,101,935 7,759,628 7,100,403 8,743,460 10,331,501 2,859,433 5,840,949 6,101,736 5,597,303 1,475,308 952,819 1,068,138 123,154 203,240 335,151 989,081 1,491,413 978,642 659,857 340,336 342,098 360,496 318,737 312,778 303,595 284,993 17,018,274 8,618,271 18,226,041 1,875,841 4,387,339 9,390,001 15,965,329 645,230 716,144 797,520 826,717 868,348 904,739 944,455 826,715 960,534 2,497,249 3,312,774 1,778,477 4,135,091 4,509,762 69,544,907 69,809,937 82,053,718 63,439,031 65,694,975 71,385,387 84,388,205 4,983,006 5,619,088 5,590,247 6,047,115 8,957,744 7,935,407 7,001,850 20,542,375 22,148,312 23,629,954 23,951,223 24,241,160 24,546,456 26,298,962 2,536,127 - 2,726,599 2,719,532 3,168,513 2,985,311 3,030,540 2,768,068 1,906,950 1,626,197 1,706,918 1,888,631 3,653,297 12,775,536 4,422,468 5,948,563 6,874,596 7,207,896 7,621,663 7,267,805 7,223,808 8,248,229 8,199,933 8,173,711 8,335,105 7,364,651 5,300,211 5,609,603 7,362,732 666,160 377,026 411,293 4,221,956 742,754 599,965 6,641,674 - 75,526 - - - - - 838,618 95,672 218,058 68,236 82,333 328,418 213,777 - - - - - - 996,669 10,189,487 10,711,807 8,820,229 9,409,692 10,706,350 3,809,723 - 7,102,450 5,532,110 11,042,816 13,742,919 13,762,167 4,513,072 2,959,555 77,699,132 70,372,528 63,960,644 77,484,599 66,913,984 62,913,669 69,682,048 6,631,238 5,849,293 12,371,670 (14,045,568) (12,004,157) 1,012,859 17,474,221 21,789 90,399 77,528 26,232 25,777,410 9,163,360 10,898,009 (21,789) (90,399) (77,528) (26,232) (25,777,410) (9,163,360) (10,754,898) - - - - - - 143,111' $ 6,631,238 $ 5,849,293 $ 12,371,670 $ (14,045,568) $ (12,004,157) $ 1,012,859 $ 17,617,332 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 161 City of Dublin Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years Fiscal City Wide Year Taxable Avg Total Ended Residential Commercial Industrial Unsecured/ Less: Assessed Direct Tax June 30 Property Property Property Other Property Exemptions Value Rate 2003 $2,825,719,751 $877,069,998 $140,636,627 $534,477,740 ($69,498,931) $4,308,405,185 0.23997% 2004 3,233,586,490 998,908,661 147 ,997,335 561,725,805 (70,891,008) 4,871,327,283 0.23965% 2005 3,730,424,115 1,032,552,391 154,758,385 662,659,500 (72,612,237) 5,507,782,154 0.23964% 2006 4,520,222,157 1,052,701,438 162,182,398 652,279,788 (77,085,570) 6,310,30 ,211 0.23895% 2007 5,345,937,692 1,068,813,294 161,909,866 873,737,282 (80,274,178) 7,370,123,956 0.23868% 2008 5,870,526,565 1,112,837,055 171,673,012 1,072,734,321 (78,188,899) 8,149,582,054 0.23849% 2009 6,203,330,781 1,241,301,664 198,082,746 1,032,449,487 (36,478,516) 8,638,686,162 0.23842% 2010 5,868,488,395 1,326,481,767 212,939,326 983,426,713 (49,873,361) 8,341,462,340 0.23855% 2011 5,967,980,343 1, 285382 ,821 209,573,141 843,686,092 (115,875,189) 8,190,747,208 0.23859% 2012 6,114,540,497 1,263,207,583 246,434,460 859,683,607 (120,225,737) 8,363,640,410 0.23856% Assessed Value of Taxable Property $10.0 $9.0 $8.0 - 'a C $7.0 m $6.0 c $5.0 $4.0 - c $3.0 $2.0 $1.0 $0.0 SOD'S ryOQh ryOOh 6 Opt 000 000 Oq0 O ^. O ^(L ti ti ti ti ti ti Fiscal Years Data Source: 14DL Conan & Cone and Alameda County Assessor Combined Tau Rolls 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. 162 City of Dublin Direct and Overlapping Property Tax Rates (Rate per $100 of assessed value) Last Ten Fiscal Years 2002/03 2003/04 2W4105 2005/06 2006/07 2007 09 2006/09 7009/10 2010/11 2011/12 Basic Levy (1) 1.00000 1.00000 1.OW00 lam 1.00000 1.00000 1.00000 1.00000 1.0000D 1.00000 Bay Area Rapid Transit 0 .00WO 0.00000 0.00000 0.OD480 0.00500 0.00760 0.00900 0.00570 080310 0.00410 Castro Valley Unified School Bonds 0.04980 0.05610 0.05370 0.07180 (108110 0.09770 0.09690 0.10230 0.10040 0.09890 Chabot - Ias Poaitas Community College Bonds 0.00000 0.00000 0.01860 0.01580 0.01590 0.01640 0.01830 0.01950 0.02110 002140 Dublin Unified Bonds IA @ B 0.03760 0.04290 0.0399D 0.08170 0.08850 0.08500 0.07320 0.08160 0.10110 0.09700 East Bay Regional Park 0.00650 0.00570 0.00570 0.00570 8006.50 0.00800 0.01000 0.01080 0.00840 0.00710 Flood Zone 7 State Water Bonds 0.01580 0.01450 0.01140 0.01300 0.01510 0.01500 0.01690 0.02030 0.07500 0.03070 Livermore Valley joint Unified School Bond 0.09550 0.07930 0.07930 O.OM 0.06920 0.06260 0.06160 0.06740 0.06350 0.06770 Total Direct k Overlapping Tax Rare 120520 1.19850 1211810 127580 128330 129180 128590 130760 137160 132190 Total Direct Rare (2) 0.23997 023965 023964 023895 0.23868 0.93849 023842 023855 023859 023856 City's Share of 1% levy par proposition 13 (3) 028177 028177 028177 028177 028177 028177 028177 028171 028177 028177 Source: IfDL Coren k Cane and Alameda County Assessor Tax Rate Table Notes: (1) In 1978, California voters passed proposition 13 which sets the properly tax rate at a 1% fixed amount This 1% is shared by all teAng agencies for which to subject property resides witdrt In addition to the 1.00% fixed amount property owners are charged taxes as a percentage of assessed properly values for the payment of voter approved bonds from variaas agencies. (2) Total Direct Rate re the weighted average of all Individual d ed rates. (3) Qtyb Share of 1% levy is based on the Qty's share of the general hod tax rate area with the largest rattuable value within the Qty. (4) Overlapping rates are those of local and county goveramenb that apply to property owns witdn the Qty. Not all overlapping rates apply m all city property owrare. (5) Total Direct Rare is the weighted average of all individual direct rates applied by the government preparing the statistical section informs0on. 163 City of Dublin Principal Property Taxpayers Current, And Nine Years Ago Trust LP 2002/03 2011/12 1.75% Holding Company 106,449,062 Percent of Total Percent of Total Taxpayer (Number of Parcels) Assessed Value Assessed Value Assessed Value Assessed Value Toll California II, LP $136,199,036 3.13% DCA Corporate Center, LLC 108,265,000 2.49% Bere Island Properties I, LLC 73,528,320 1.69% Acre Dublin, LLC 72,755,822 1.67% Chang S. Lin 61,210,633 1.41% Security Capital Pacific Trust 61,056,814 1.41% RREEF American REIT Corporation 50,022,952 1.15% Phoenix Mutual Life Insurance 48,148,478 1.11% SHEA Homes, LP 47,921,718 1.10% California State Teachers Retirement System 47,532,000 1.09% Trust LP $146,201,800 1.75% Holding Company 106,449,062 1.27% Avalon Station LP 85,502,183 1.02% Corporate Center II, LP 85,500,000 1.02% 4800 Tassajara Road Apartments 80,897,916 0.97% Barath Koneti 74,336,735 0.89% BIT Holdings Sixty-Three INC 71,744,041 0.86% Ross Dress for Less 67,681,230 0.81% Island Properties I 66,428,352 0.79% Tishman Speyer Archstone Smith 66,377,136 0.79% Top Ten Total $706,640,773 16.25% $851,118,455 10.17% Source: HDL Corer & Cone and Alameda County Assessor Combined Tax Rolls 164 This Page Left Intentionally Blank City of Dublin Direct and Overlapping Debt June 30, 2012 Total Property Tax Assessed Value of Taxable Property $ 8,363,640,410 Percentage Outstanding Debt Applicable to Estimated Share of 6/30/12 City of Dublin Overlapping Debt OVERLAPPING DEBT REPAID MTH PROPERTY TAXES Bay Area Rapid Transit District $ 412,540,000 1.9180% $ 7,912,517 Chabot -Las Positas Community College District $ 445,918,869 10.8300% $ 48,293,014 Dublin Joint Unified School District $ 191,968,132 99.9750% $ 191,920,140 East Bay Regional Park District $ 129,525,000 2.9110% $ 3,848,188 City of Dublin 1915 Act Bonds $ 182,000 100.0000% $ 182,000 California Statewide Communities Development Authority 1915 Act Bonds $ 1,059,545 100.0000% $ 1,059,545 Total overlapping debt repaid with property taxes $ 253,215,404 OVERLAPPING OTHER DEBT Alameda County General Fund Obligations $ 669,510,500 4.9530% $ 33,160,855 Alameda County Pension Obligations $ 131,540,555 4.9530% $ 6,515,204 Alameda - Contra Costa Transit District Certificates of Participation $ 34,485,000 0.0990% $ 34,140 Chabot -Las Positas Community College District General Fund Obligations $ 4,320,000 10.8300% $ 467,856 Total Overlapping Other Debt $ 40,178,055 COMBINED TOTAL DEBT $ 293,393,459 RATIOS TO ASSESSED VALUATION: DirectDebt .................. ............................... .........................0.0(% Total Direct and Overlapping Tax and Assessment Debt- ........... 3.03% Combined Total Debt . ............................... ..........................3.51% Source: California Municipal Statistics, Inc 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 govemments are those that coincide, generally, within the geographic boundaries of the City. 3) This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long -term debt, the entire debt burden home 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. 167 City of Dublin Legal Debt Margin Information Last Ten Fiscal Years Assessed valuation Add back exempted real property Total assessed valuation Conversion Ratio Converted assessed valuation Debt limit percentage Debt limit Total net debt applicable to limit. General obligation bonds Legal debt margin 2003 2004 2005 2006 $ 4,308,405,185 $ 4,871,327,283 $ 5,507,782,154 $ 6,310,300,211 70,891,008 70,891,008 72,612,237 77,085,570 $ 4,379,296,193 $ 4,942,218,291 $ 5,580,394,391 $ 6,387,385,781 250% 25% 25% 25% $ 1,094,824,048 $ 1,235,554,573 $ 1,395,098,598 $ 1,596,846,445 15% 15% 15% 15% $ 164,223,607. $ 185,333,186 $ 209,264,790 $ 239,526,967 $ 164,223,607 $ 185,333,186 $ 209,264,790 $ 239,526,967 Total debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% Source: City of Dublin Administrative Services Department Notes: 1. The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 1981 -82 fiscal year, each parcel is now assessed at "100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from5% of market value. Effective with the 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 168 0.0% Fiscal Year 2007 - 2008 2009 2010 2011 2012 $ 7,370,123,956 $ 8,149,582,054 $ 8,638,686,162 $ 8,341,462,340 $ 8,190,747,208 $ 8,363,640,410 80,274,178 78,188,899 36,478,516 49,873,361 115,875,189 120,225,737 $ 7,450,398,134 . $ 8,227,770,953 $ 8,675,164,678 $ 8,391,335,701 $ 8,306,622,397 $ 8,483,866,147 25% 25% 25% 25% 25% 25% $ 1,8621599,534 $ 2,056,942,738 $ 2,168,791,170 $ 2,097,833,925 $ 2,076,655,599 $ 2,120,966,537 15% 15% 15% 15% 15% 15% $ 279,389,930 $ 308,541,411 $ 325,318,675 $ 314,675,089 $ 311,498,340 $ 318,144,981 $ 279,389,930 $ 308,541,411 $ 325,318,675 $ 314,675,089 $ 311,498,340 $ 318,144,981 0.0% 0.0% 0.01/ 0.0% 0.0% 0.0% 169 City of Dublin Demographic And Economic Statistics Last Ten Calendar Years Calendar Year Personal Income (in Per Capita Personal Unemployment Rate Rank in Size of January 1 City Population (1) Thousands) (2) h.. (2) (3) California Cities (1) 2002 34,155 §1,037,889 $301388 4.00% 209 2003 36,194 1,147,826 31,713 4.10% 204 2004 38,263 1,319,087 34,474 3.50% 193 2005 39,774 1,477,082 37,137 310% 192 2006 41,848 1,719,669 41,093 260% 190 20(17 43,563 1,904,687 43,723 280% 184 2008 46,869 2,077,720 44,330 3.70% 180 2009 47,953 2,034,463 42,426 6,50% 179 2010 45,672 1,700,094 34,823 6.90% 179 2011 46,785 1,677,944 35,865 6.30% 182 Sources: 1) I-IDL Caren & Cone /State of California Department of Finance: 2001 -2009 populations are estimated based on Census 2000. 2010 data was adjusted based on Census 2(110. 2)HDL Caren & Cone /Bureau of Economic Analysis, Personal hlcome and Per Capita Personal Income, Akineda County. 3) HDL Coren & Cone /State of California Employateat Development Department, City's Annual Average. 50,000 48,000 46,000 N 44,000 rn 42,000 c 0 40,000 A 38,000 Q 36,000 0 34,000 32,000 30,000 City Population (1) tioo� ryoo3 ryoo° tioo� tioo6 tioo� tioo� ti000 �o,�o tio�N Calendar Year 170 City of Dublin Property Value, Construction And Bank Deposits Last Ten Fiscal Years Source: 1) City of Dublin Community Development Department 2) Findley Reports, Inc Bank Deposits represents the amount of cash deposits held by financial institutions within the City annually, Jan dma Dec. $300 $250 c $200 g $150 $100 a $50 $0 New Construction Value - Commercial vs Residential • Commercial -�- Residential t ...... ... .:..t.... • `L °'65 Oa`L ° °�'`L ° °6`L °°A `L °°�'`L ° °g`L °NQ1 NN`L ° °� Fiscal Year 171 Total Number of Commercial Residential Fiscal Year Ended Building Permits Construction Value Construction Value June 30 Issued (1) (1) (1) Bank Deposits (2) 2003 1157 $46,448,163 $178,361,169 $980,220,300 2004 1154 18575,621 242,563,776 488,343,000 2005 1275 56 ,481,612 283,817,542 566,441,000 2006 1199 96,389,754 207,862,999 915,006,000 2007 1214 56,832,041 178,094,884 985,835,000 2008 1333 18,156,381 59,647,886 981,685,000 2009 1101 23,968,805 63,242,418 1,094,869,000 2010 1345 17,407,699 124,930,163 1,051570,000 2011 1471 40,005,124 165,324,045 1,281,183,000 2012 2110 28,775,536 344,927,791 N/A Source: 1) City of Dublin Community Development Department 2) Findley Reports, Inc Bank Deposits represents the amount of cash deposits held by financial institutions within the City annually, Jan dma Dec. $300 $250 c $200 g $150 $100 a $50 $0 New Construction Value - Commercial vs Residential • Commercial -�- Residential t ...... ... .:..t.... • `L °'65 Oa`L ° °�'`L ° °6`L °°A `L °°�'`L ° °g`L °NQ1 NN`L ° °� Fiscal Year 171 City of Dublin Principal Employers Current and prior Source: City of Dublin Economic Development Department. 172 Percentage of Number of Number of Total 2011 Employees Ranking 2012 Employees Ranlang Employment United States Government United States Government & Federal Correction Institute 2100 1 & Federal Correction Institute 2100 1 11.05% Zeiss Meditec 975 2 Zeiss Meditec 973 2 5.12% Sybase Corporation 710 3 Sybase Corporation 725 3 3.82% Dublin Unified School District 675 4 Dublin Unified School District 675 4 3.55% Miov Dental laboratories 550 5 Micio Dental laboratories 550 5 289% County of Alameda 465 6 County of Alameda 465 6 245% Safeway 400 7 Safeway 400 7 211% Taleo 275 8 Taleo 250 8 1.32% City of Dublin 201 9 City of Dublin 205 9 1.08% Fra ddin Templeton Investments 200 10 Franklin Templeton Investments 200 10 1.05% Source: City of Dublin Economic Development Department. 172 City of Dublin Full-time Equivalent City and Contract Government Employees by Function Last Ten Fiscal Years Source: City of Dublin Administrative Services Department Note: Include Full Time, Part Time, Temporary and Contract Employees 173 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 General government City Manager 5.50 5.75 6.00 7.17 6.25 6.50 6.50 6.00 6.00 6.50 Administrative Services 10.00 11.00 11.50 11.50 1150 1200 1200 11.50 11.50 11.50 Central Services & Building Management 3.60 3.65 3.40 3.43 3.75 3.51 3.52 3.18 3.32 3.57 Public Safety: Police 55.00 54.00 54.00 57.00 59.00 61.00 61.00 61.00 59.00 59.00 Fire 40.00 39.89 40.89 4025 40.25 40.75 40.78 39.77 39.74 39.64 Disaster Preparedness 0.50 0.50 0.33 0.33 0.33 0.50 0.50 0.50 0.46 0.46 Transportation Public Works 6.50 6.50 6.50 6.50 7.50 8.50 8.50 6.45 5.45 5.45 Street Maintenance 7.60 9.00 9.46 10.14 10.57 10.73 9.93 9.18 9.85 9.85 Health and welfare Environmental - - - - - - - 250 250 3.00 Housing 1.00 1.00 1.75 1.75 1.75 1.75 290 3.20 3.00 225 Waste Management - - 0.33 0.33 0.33 033 1.33 0.33 0.33 0.33 Culture and leisure services Parks Community Services 1250 13.00 14.00 14.00 14.00 15.50 16.00 16.60 15.60 15.55 Park Maintenance 7.79 8.48 8.70 9.10 9.53 9.55 9.92 9.65 8.94 9.36 Parks /Facilities Management 200 200 200 200 200 200 200 200 200 2.25 library Services 0.20 0.60 0.51 0.51 0.48 0.45 0.43 0.39 0.42 0.42 Heritage & Cultural Arts 1.93 1.93 231 2.30 232 253 249 247 3.59 3.26 Community development Planting & Building 25.00 76.00 3200 34.50 33.90 3250 27.10 19.05 19.25 20.95 Economic Development 1.00 1.00 1.00 1.00 1.00 1.00 1.50 150 1.50 250 Engineering 14.00 13.00 13.35 1335 1135 13.35 1235 9.00 8.00 9.00 Total 19412 197.30 208.03 215.16 217.81 22245 218.75 204.27 200.45 204.84 Source: City of Dublin Administrative Services Department Note: Include Full Time, Part Time, Temporary and Contract Employees 173 City of Dublin Operating Indicators by Function Last Ten Fiscal Years Function Police: Calls for Service Citations Issued Arrests Fire: Emergency calls Inspections Building Plan Reviews and Consultations Public Works: Bice Path Maintenance (hours) Street Sign Maintenance (number of signs) Curb Painting (linear feet) Replace Street Aspbalt (square feet) Street Sweeping (curb miles) Parks and Comunnity Services: Museum Visitors Afterwhool Recreation (participants /day) Pmachool Classes Participants Youth Basketball league Participants Senior Center Average Daily Attendance Community Development Planning Applications Building Permits Building Inspections Source: City of Dublin 2003 2004 2005 2006 2007 2006 2009 2010 2011 2012 52,708 49,379 48,388 46,197 41,306 41,652 38,983 38,125 397174 38,580 10,501 11,081 10,911 10,595 11,676 11,768 7,066 10,101 9,023 9,729 1,376 1,614 1,631 2,020 108 2,021 1,620 1,556 1,624 1,542 1,872 1,724 1,742 1,771 1,780 1,978 1,969 1,999 2,244 2,323 5,021 4,951 3,249 4,122 CM 2,213 1,952 3,576 2,833 3,308 1,381 1,249 858 1,006 1,049 922 511 474 498 1,319 230 478 763 726 810 775 775 697 603 625 643 308 353 435 427 135 74 325 258 313 2,993 1,607 1,404 3,991 4,006 2A68 2,395 6,607 5,464 6.523 5,500 3,000 7,500 7,950 13, 800 33 ,000 29,000 30,000 57,000 26,000 5,116 5,371 5,686 5,730 5,927 6,075 6,341 5,083 5,294 5 ,519 300 900 800 1350 2140 2,225 2,040 3,530 3,680 47115 140 128 129 138 153 180 167 176 240 277 214 768 224 285 754 399 402 690 628 610 476 536 547 580 588 570 591 772 710 729 111 110 110 149 180 185 190 198 206 217 78 71 73 59 55 55 64 62 66 62 1,617 1,639 1,837 1,655 1,910 1,333 1,101 1,345 1,471 2,110 2402 31,571 33,534 34,244 36,071 25,602 12,302 8,933 71,308 15,%1 174 City of Dublin Capital Assets Statistics by Function Last Ten Fiscal Years Function Public Safety Police Stations Fire Stations Public works: Miles of Streets Miles of Curbs Traffic Signals City Street Trees City Landscape (acres) Street Lights Parks and recreation: Number of Community Facilities Number of City Parks Acres of City Parks Acres of Open Space Source: City of Dublin 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3 3 3 3 81 81 81 81 104 93 103 105 113 115 202 202 202 202 217 217 218 222 223 237 55 60 62 67 75 79 81 85 85 89 5,148 5,401 5,955 6,084 604 6,084 6,499 7,054 7,148 7,268 38 38 43 45 45 45 45 57 57 65 2,872 2,958 3,469 3,752 3,972 4,193 4,479 4,526 3,780 4,281 7 7 7 7 7 7 7 7 7 7 11 11 11 11 11 16 16 16 18 18 109 109 109 109 121 122 201 201 209 209 122 122 126 126 126 122 125 125 125 125 175 City of Dublin Top 25 Sales Tax Producers 2011 -2012 BUSINESS NAME BUSINESS CATEGORY Alameda County Auction Used Motor Vehicle Dealer Alcosta Shell Service Stations Arco AM /PM Mini Mart Service Stations Barnes & Noble Stationery/Book Store Bed Bath & Beyond Home Furnishings Best Buy Electronics /Appliance Stores California Automotive Retailing Group New Motor Vehicle Dealers Carl Zeiss Ophthalmic System Medical /Biotech Dublin Chevron Service Stations Dublin Honda Motor Vehicle Dealer Dublin Hyndai Motor Vehicle Dealer Dublin Mazda Motor Vehicle Dealer Dublin Nissan Motor Vehicle Dealer Dublin Toyota Motor Vehicle Dealer Dublin Volkswagen Motor Vehicle Dealer Graybar Electric Co Electrical Equipment Lowes Lumber /Building Materials Marshall Family Apparel Safeway Grocery / Liquor Store Safeway Gas Sales Service Stations Santa Rita Jail Food Service Food Service Stoneridge Chrysler /Jeep /Dodge Motor Vehicle Dealer Target Discount Department Store T 1 Maxx Family Apparel Toys R Us Specialty Stores a c 0 c A O D Sales Taxes $20 $15 $10 $5 '1 oh 6 A pO 9 No h^ \ti tioo�ry� ti°o�� � tiooyry� ,yoo �oo1,yo ry�gyoo ,yo ryo ^��o ryo� ^,yo Fiscal Year Source: Hinderfiter, 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. 176 City of Dublin Miscellaneous Statistical Data June 30, 2012 General Date of Incorporation February 1, 1982 Form of Government Council /Manager Total Population (Estimated 1/1/2011 by State Department of Finance based on Census 2010 46,785 and included group quarters) Number of Registered Voters 21,002 Employees, City and Contract (Full Time Equivalent) 204.84 Area (Square Miles) 14.62 Parks and Recreation Parks 18.00 Acres in Parks 209.00 Acres in Open Space 125.00 Public Education Elementary Schools 6 Middle Schools 2 High School 1 Continuation High School 1 Education Center 1 School Enrollment 6275 Police Protection Number of Stations 1 Police Personnel (Full Time Equivalent) 56 Fire Protection Number of Stations 3 Fire Personnel (Full Time Equivalent) 38 Community Facilities Dublin Civic Center 1 Dublin Senior Center 1 Dublin Swim Center 1 Dublin Heritage Center 3 Dublin Public Library 1 Shannon Community Center 1 Emerald Glen Activity Center 1 Source: City of Dublin 177 SUMMARY — KEY INFORMATION COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2012 City Council Meeting December 18, 2012 1. Includes audited financial statements reviewed by Maze and Associates Accountancy Corporation (Maze). 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 (GFOA). The goal is to provide financial information of the highest quality. In order to submit the report Staff obtained from GFOA a one month extension to the period for filing for recognition. 5. ORGANIZATION OF DRAFT REPORT a. Transmittal letter (pages i - v). (Provides a general overview of the components which make up the report. b. Opinion issued by the Independent Auditor (pages 1 -2). c. Management Discussion and Analysis (MD &A) Page 3 and continuing to page 17, 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). d. 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. e. Statistical Section Pages 151 — 177 comprise the unaudited statistical section of the CAFR includes graphs of relevant historical data. 6. Fund Equity - A complete listing of both fund reserves and designations for all funds is shown on page 60 of the report. These designations are based on actions taken by the City Council prior to June 30, 2012. 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. As part of the recommendations government accounting standard changes. separate document "Memorandum On Internal for the year ended June 30, 2012 ". Page 1 of 1 the Auditors also note the upcoming This information is presented as a Control and Required Communications Attachment 2 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS FOR THE YEAR ENDED JUNE 30, 2012 This Page Left Intentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS For the Year Ended June 30, 2012 Table of Contents Page Memorandum on Internal Control ..................................................................... ............................... l Schedule of Other Matters .......................................................................... ..............................3 Required Communications .................................................................. ............................... Financial Statement Audit Assurance ....................................................... ..............................9 Other Information Included with the Audited Financial Statements ...... ..............................9 AccountingPolicies .................................................................................. ............................... 9 Unusual Transactions, Controversial or Emerging Areas ...................... .............................10 Estimates.................................................................................................... .............................10 Disagreements with Management ............................................................ .............................10 Retention Issues ..................................... ............................... .................11 . ............................... Difficulties................................................................................................. .............................11 AuditAdjustments .................................................................................... .............................11 Uncorrected Misstatements ...................................................................... .............................11 This Page Left Intentionally Blank October 26, 2012 Honorable Mayor and Members of the City Council of the City of Dublin, Dublin, California In planning and performing our audit of the financial statements of the City of Dublin (the City) as of and for the year ended June 30, 2012, in accordance with auditing standards generally accepted in the United States of America, we considered the City's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited. purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to errors or fraud may occur and not be detected by such controls. We did not identify any deficiencies in internal control that we consider to be material weaknesses. Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe to be of potential benefit to the City. The City's written responses included in this report have not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass-through entities requiring compliance with generally accepted government auditing standards, and is not intended to be and should not be used by anyone other than these specified parties. Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 T 925.930,0902 F 925.930.0135 E maze@mazeassociates.corn w mazeassociates.com This Page Left Intentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS 2012 -01 Areas Affected by Staff Turnover During the Year During the interim audit in June 2012, we noted that the City had fallen behind in procedures below due to staff turnover: • The City's March 31, 2012 bank reconciliation was not completed as of June 28, 2012. • The City had not reviewed the accounts receivable aging report for uncollectable accounts or reconciled the detailed accounts receivable ledger to the City's general ledger in the current year. The City's normal practice is to conduct the review and reconciliation quarterly. As a result of the interim audit, we made a recommendation to the City that all bank reconciliations be prepared and reviewed within thirty days of the bank statement date or soon thereafter. In addition, unreconciled items should be addressed immediately. We further recommended that the City resume its practice to reconcile the detailed accounts receivable ledger to the City's general ledger and identify uncollectible items on a regular basis. During the final phase of the audit, we reviewed the City's bank reconciliation for the month ended June 30, 2012, and noted that the City had incorporated our recommendation for the bank reconciliation process. We recommend that the City continue its timely bank reconciliation procedures in fiscal year 2012 -2013. Also, the City should reconcile its detail accounts receivable ledger and review the accounts receivable aging report for uncollectable receivables on a more regular basis. Management Response: As noted by the audit team due to the retirement of two long tenure staff members in the Finance Department, there were delays in the bank account and the accounts receivable reconciliations. As a result of the turnover and training of new staff positions, this delayed the regular schedule for completion. The City recognizes the importance of timely and accurate bank and accounts receivable reconciliation. It is the goal of the Finance Department to complete the monthly bank reconciliation within 30 days of the bank statement date and the quarterly accounts receivable reconciliation within 30 days after each quarter ends. Both processes have been brought to a current status. CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS New GASB Pronouncements The following pronouncements issued by the Governmental Accounting Standard Board (GASB) will be effective in fiscal year 2012 -2013. GASB 60 - Accountinz and Financial Reportinz for Service Concession Arranzements The objective of this proposed Statement is to establish accounting and financial reporting requirements for service concession arrangements (SCAB), which are a type of public - private or public - public partnership arrangement. As used in this proposed Statement, an SCA is an arrangement between a transferor (a government) and an operator (governmental or nongovernmental) in which: a. The transferor conveys to the operator the right and related obligation to provide public services through the operation of a capital asset (referred to in this standard as "facility "). b. The operator collects and is compensated with fees from third parties. C. The transferor is entitled to significant residual interest in the service utility of the facility at the end of the arrangement. d. The transferor determines or has the ability to modify or approve what services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services. Service Concession Arrangements include, but are not limited to: a. Arrangements in which the operator will design and build a facility and will obtain the right to collect fees from third parties (for example, construction of a municipal complex for the right to lease a portion of the facility to third parties) b. Arrangements in which the operator will provide an up -front payment or a series of payments in exchange for the right to access an existing facility (for example, a parking garage) and collect fees from third parties for its usage c. Arrangements in which the operator will design and build a facility (for example, a new tollway), finance the construction costs, provide the associated services, collect the associated fees, and convey the facility to the government at the end of the arrangement. The following information should be disclosed in the notes to financial statements of transferors and governmental operators for SCAB: a. A general description of the arrangement in effect during the reporting period, including management's objectives for entering into it and, if applicable, the status of the project during the construction period b. The nature and amounts of assets liabilities and deferred inflows of resources related to an SCA that are recognized in the financial statements c. The nature and extent of rights retained by the transferor or granted to the governmental operator under the arrangement. 4 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS GASB 61 - The Financial Reportinff Entity — Omnibus — An Amendment for GASB Statement No. 14 and No. 34 — Component Unit Focus This Statement modifies certain requirements for inclusion of component units in the financial reporting entity. For organizations that previously were required to be included as component units by meeting the fiscal dependency criterion, a financial benefit or burden relationship also would need to be present between the primary government and that organization for it to be included in the reporting entity as a component unit. Further, for organizations that do not meet the financial accountability criteria for inclusion as component units but that, nevertheless, should be included because the primary government's management determines that it would be misleading to exclude them, this Statement clarifies the manner in which that determination should be made and the types of relationships that generally should be considered in making the determination. This Statement also amends the criteria for reporting component units as if they were part of the primary government (that is, blending) in certain circumstances. For component units that currently are blended based on the "substantively the same governing body" criterion, it additionally requires that (1) the primary government and the component unit have a financial benefit or burden relationship or (2) management (below the level of the elected officials) of the primary government have operational responsibility (as defined in paragraph 8a) for the activities of the component unit. New criteria also are added to require blending of component units whose total debt outstanding is expected to be repaid entirely or almost entirely with resources of the primary government. GASB 62 - Codification of Accounting and Financial Reportin,- Guidance Contained in Pre - November 30 1989 FASB and AICPA Pronouncements The objective of this Statement is to incorporate into the GASB's authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements: 1. Financial Accounting Standards Board (FASB) Statements and Interpretations 2. Accounting Principles Board Opinions 3. Accounting Research Bulletins of the American Institute of Certified Public Accountants' ( AICPA) Committee on Accounting Procedure. This Statement also supersedes Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, thereby eliminating the election provided in paragraph 7 of that Statement for enterprise funds and business -type activities to apply post- November 30, 1989 FASB Statements and Interpretations that do not conflict with or contradict GASB pronouncements. However, those entities can continue to apply, as other accounting literature, post- November 30, 1989 FASB pronouncements that do not conflict with or contradict GASB pronouncements, including this Statement. The provisions of this Statement are organized by topic. Each topic contains provisions derived from FASB and AICPA pronouncements that address the subject matter. The order in which the topics are presented corresponds to the order of the primary locations within the GASB Codification of Governmental Accounting and Financial Reporting Standards, where the topics are codified. CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS GASB 62 - Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30,1989 FASB andAICPA Pronouncements (Continued) The requirements in this Statement will improve financial reporting by contributing to the GASB's efforts to codify all sources of generally accepted accounting principles for state and local governments so that they derive from a single source. This effort brings the authoritative accounting and financial reporting literature together in one place, with that guidance modified as necessary to appropriately recognize the governmental environment and the needs of governmental financial statement users. It will eliminate the need for financial statement preparers and auditors to determine which FASB and AICPA pronouncement provisions apply to state and local governments, thereby resulting in a more consistent application of applicable guidance in financial statements of state and local governments. GASB 63 - Financial Reportin- of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. Concerts Statement No. 4, Elements of Financial Statements, introduced and defined those elements as a consumption of net assets by the government that is applicable to a future reporting period, and an acquisition of net assets by the government that is applicable to a future reporting period, respectively. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. Concepts Statement 4 also identifies net position as the residual of all other elements presented in a statement of financial position. This Statement amends the net asset reporting requirements in Statement No. 34, Basic Financial Statements —and Management's Discussion and Analysis— or State and Local Governments, and other pronouncements by incorporating deferred outflows of resources and deferred inflows of resources into the definitions of the required components of the residual measure and by renaming that measure as net position, rather than net assets. The objective of this Statement is to provide guidance for reporting deferred outflows of resources, deferred inflows of resources, and net position in a statement of financial position and related disclosures. State and local governments enter into transactions that result in the consumption or acquisition of net assets in one period that are applicable to future periods. Concepts Statement No. 4, Elements of Financial Statements, identifies those consumptions or acquisitions as deferred outflows of resources and deferred inflows of resources, respectively, and distinguishes them from assets and liabilities. This Statement provides guidance for reporting deferred outflows of resources and deferred inflows of resources balances. Concepts Statement 4 identifies net position as the residual of all other elements presented in a statement of financial position. It is the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources. This Statement provides guidance for reporting net position within a framework that includes deferred outflows of resources and deferred inflows of resources, in addition to assets and liabilities. 2 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS GASB 63 - Financial Reportinz of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position (continued) SUMMARY Statement of Net Position The statement of net position should report all assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net position. Governments are encouraged to present the statement of net position in a format that displays assets, plus deferred outflows of resources, less liabilities, less deferred inflows of resources, equals net position, although a balance sheet format (assets plus deferred outflows of resources equals liabilities plus deferred inflows of resources, plus net position) may be used. Regardless of the format used, the statement of net position should report the residual amount as net position, rather than net assets, proprietary or fiduciary fund balance, or equity. Net position represents the difference between all other elements in a statement of financial position and should be displayed in three components — net investment in capital assets; restricted (distinguishing between major categories of restrictions); and unrestricted. • Net Investment in Capital Assets Component of Net Position The net investment in capital assets component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also should be included in this component of net position. If there are significant unspent related debt proceeds or deferred inflows of resources at the end of the reporting period, the portion of the debt or deferred inflows of resources attributable to the unspent amount should not be included in the calculation of net investment in capital assets. Instead, that portion of the debt or deferred inflows of resources should be included in the same net position component (restricted or unrestricted) as the unspent amount. Restricted Component of Net Position The restricted component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Generally, a liability relates to restricted assets if the asset results from a resource flow that also results in the recognition of a liability or if the liability will be liquidated with the restricted assets reported. • Unrestricted Component of Net Position The unrestricted component of net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. • Financial Reporting for Governmental Funds Deferred outflows of resources and deferred inflows of resources that are required to be reported in a governmental fund balance sheet should be presented in a format that displays assets plus deferred outflows of resources, equals liabilities plus deferred inflows of resources, plus fund balance. 0 This Page Left Intentionally Blank MIXIIIIII-104-21y"K, October 26, 2012 Honorable Mayor and Members of the City Council of the City of Dublin, Dublin, California We have audited the financial statements of the City of Dublin (the City) as of and for the year ended June 30, 2012 and have issued our report thereon dated October 26, 2012. Professional standards require that we advise you of the following matters relating to our audit. Accounting Policies: Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note I to the financial statements. During fiscal year 2011-2012, there were no initial selections of accounting policies and no changes in significant accounting policies or their application. The following pronouncement became effective but did not have a material effect on the financial statements: T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 E rTiaze@mazeassociates.com Pleasant Hill, CA 94523 9 w mazeassociates.com GASB 64 - Derivative Instruments. Application of Hedge Accounting Termination Provisions, an amendment of GASB Statement No. 53 Some governments have entered into interest rate swap agreements and commodity swap agreements in which a swap counterparty, or the swap counterparty's credit support provider, commits or experiences either an act of default or a termination event as both are described in the swap agreement. Many of those governments have replaced their swap counterparty, or swap counterparty's credit support providers, either by amending existing swap agreements or by entering into new swap agreements. When these swap agreements have been reported as hedging instruments, questions have arisen regarding the application of the termination of hedge accounting provisions in Statement No. 53, Accounting and Financial Reporting for Derivative Instruments. Those provisions require a government to cease hedge accounting upon the termination of the hedging derivative instrument, resulting in the immediate recognition of the deferred outflows of resources or deferred inflows of resources as a component of investment income. The objective of this Statement is to clarify whether an effective hedging relationship continues after the replacement of a swap counterparty or a swap counterparty's credit support provider. This Statement sets forth criteria that establish when the effective hedging relationship continues and hedge accounting should continue to be applied. Unusual Transactions, Controversial or Emerging Areas: No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. There have been no initial selections of accounting policies and no changes in significant accounting policies or their application. during 2012. Estimates: Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. The most sensitive accounting estimates affecting the financial statements are depreciation and compensated absences. Management's estimate of depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 6. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole. Accrued compensated absences is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole. Disagreements with Management: For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the City's financial statements or the auditor's report. No such disagreements arose during the course of the audit. 10 Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Retention Issues: We did not discuss any major issues with management regarding the application of accounting principles and auditing standards that resulted in a condition to our retention as the City's auditors. Difficulties: We encountered no serious difficulties in dealing with management relating to the performance of the audit. Audit Adjustments: For purposes of this communication, professional standards define an audit adjustment, whether or not recorded by the City, as a proposed correction of the financial statements that, in our judgment, may not have been detected except through the audit procedures performed. These adjustments may include those proposed by us but not recorded by the City that could potentially cause future financial statements to be materially misstated, even though we have concluded that the adjustments are not material to the current financial statements. We did not propose any audit adjustments that, in our judgment, could have a significant effect, either individually or in the aggregate, on the entity's financial reporting process. Uncorrected Misstatements: 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. We have no such misstatements to report to the audit committee. This report is intended solely for the information and use of the audit committee, City Council, and management and is not intended to be and should not be used by anyone other than these specified parties. r 11 This Page Left Intentionally Blank CITY OF DUBLIN SINGLE AUDIT REPORT FOR THE YEAR ENDED JUNE 30, 2012 This Page Left Intentionally Blank CITY OF DUBLIN SINGLE AUDIT REPORT For The Year Ended June 30, 2012 TABLE OF CONTENTS Page Schedule of Findings and Questioned Costs ............................................... ............................... 1 Section I - Summary of Auditor's Results ............................................ ............................... 1 Section II — Financial Statement Findings ............................................ ............................... 3 Section III — Federal Award Findings and Questioned Costs .............. ............................... 3 Section IV - Status of Prior Year Findings andQuestioned Costs ..................................................................... ............................... 4 Schedule of Expenditures of Federal Awards ............................................. ............................... 5 Notes to Schedule of Expenditures of Federal Awards .............................. ............................... 6 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...................... 7 Independent Auditor's Report on Compliance with Requirements that Could Have a Direct and Material Effect on Each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A -133 .... ............................... 9 This Page Left Intentionally Blank CITY OF DUBLIN SCHEDULE OF FINDINGS AND QUESTIONED COSTS For The Year Ended June 30, 2012 SECTION I— SUMMARY OF AUDITOR'S RESULTS Financial Statements Type of auditor's report issued: Unqualified Internal control over financial reporting: • Material weakness(es) identified? Yes X • Significant deficiency(ies) identified? Yes X Noncompliance material to financial statements noted? Yes X Federal Awards Type of auditor's report issued on compliance for major programs: Internal control over major programs: • Material weakness(es) identified? • Significant deficiency(ies) identified? Any audit findings disclosed that are required to be reported in accordance with section 510(a) of OMB Circular A -133? Identification of major programs: Unqualified No None Reported No Yes X No None Yes X Reported Yes X No CFDA #(s) Name of Federal Program or Cluster 20.205 Highway Planning and Construction Program Dollar threshold used to distinguish between type A and type B programs: $300,000 Auditee qualified as low -risk auditee? Yes X No 1 SECTION II — FINANCIAL STATEMENT FINDINGS Our audit did not disclose any significant deficiencies, or material weaknesses or instances of noncompliance material to the basic financial statements. We have also issued a separate Memorandum on Internal Control dated October 26, 2012 which is an integral part of our audits and should be read in conjunction with this report. SECTION III — FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Our audit did not disclose any findings or questioned costs required to be reported in accordance with section 510(a) of OMB Circular A -133. SECTION IV - STATUS OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS — Prepared by Management Financial Statement Prior Year Findings • There were no prior year Financial Statement Findings reported. Federal Award Prior Year Findings and Questioned Costs • There were no prior year Federal Award Findings and Questioned Costs reported. 2 CITY OF DUBLIN SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For the Fiscal Year Ended June 30, 2012 Federal Pass - Through Federal Grantor/ CFDA Identifying Federal Pass - Through Grantor/Program or Cluster Title Number Number Expenditures US Department of Housing and Urban Development, Pass - Through Program From: Alameda County of Department of Housing & Community Development Community Development Block Grants/Entitlement Grants 14.218 $46,397 Total Department of Housing and Urban Development 46,397 US Department of Justice, Direct Programs Edward Byrne Memorial Justice Assistance Grant (JAG) Program/Grants to Units of Local Government 16.804 7,723 Equitable Sharing Program -Asset Forfeiture 16.922 33,416 Total Department of Justice 41,139 U.S. Department of Transportation, Pass - Through Programs From: State of California, Department of Transportation Highway Planning and Construction (Federal Aid Highway Program) Alamo Canal Train Under I -580 20.205 CML 5432(013) 532,114 National Infrastructure Investments TIGER Discretionary Grants 20.933 73,164 Program Total 605,278 State of California, Office of Traffic Safety State and Community Highway Safety Program Avoid the 21 20.600 12,714 Program Total 12,714 Total Department of Transportation 617,992 U.S. Department of Energy, Direct Program ARRA - Energy Efficiency and Conservation Block Grant Program (EECBG) Energy Block Grant 81.128 173,194 Total Department of Energy 173,194 Total Expenditures of Federal Awards $878,722 See Accompanying Notes to Schedule of Expenditures of Federal Awards tj This Page Left Intentionally Blank CITY OF DUBLIN NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended June 30, 2012 NOTE 1- REPORTING ENTITY The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City of Dublin, California, and its component units as disclosed in the notes to the Comprehensive Annual Financial Statements. NOTE 2 -BASIS OF ACCOUNTING Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. All governmental funds and agency funds are accounted for using the modified accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred. NOTE 3- DIRECT AND INDIRECT (PASS- THROUGH) FEDERAL AWARDS Federal awards may be granted directly to the City by a federal granting agency or may be granted to other government agencies which pass- through federal awards to the City. The Schedule includes both of these types of Federal award programs when they occur. M This Page Left Intentionally Blank i0 G% � �2e. �(llair aroarvn 1lummmi Honorable Mayor and City Council of the City of Dublin, California We have audited the financial statements of the City of Dublin as of and for the year ended June 30, 2012, and have issued our report thereon dated October 26, 2012. We conducted our audit in accordance with generally accepted auditing standards in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Management of the City of Dublin is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance and other matters that are required to be reported under Government Auditing Standards. Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill. CA 94523 0 T 925.930.0902 F 925.930.0135 E maze @mazeassociates.com w rnazeassociates.com We have also issued a separate Memorandum on Internal Control dated October 26, 2012 which is an integral part of our audits and should be read in conjunction with this report. This report is intended solely for the information and use of City Council, management, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. October 26, 2012 u �f1 irmx,,�f�m I 1 Y rnuuuw l�i�f rill Iari��t!!,. ifi�irmrwono �llivaurdiu Z � • I'll 111 N ME Nt, i Honorable Mayor and City Council of the City of Dublin, California MY=, We have audited City of Dublin's compliance with the types of compliance requirements described in the OMB Circular A -133 Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2012. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City's compliance with those requirements. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2012. r i Management of the City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the 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, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 e maze @mazeassociates.com Pleasant Hill, CA 94523 w mazeassociates.com A deficiency in internal control over compliance cxiats when the design m operation ofu control over compliance does not allow management or employees, in the normal course of performing their assigned fbood000, to prevent, or detect and correct, noncompliance with u type of compliance requirement of federal program on u tiooc\v huoia. /\ ooatodul `veukocau in io1cruo} control over compliance is u deficiency, or combination of deficiencies, in iutc000i control over compliance, such that there is u reasonable possibility that material noncompliance with a type of compliance requirement of federal program will not be prevented, or detected and corrected, on adnou|v basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this mccdoo and was not designed to identify all deficiencies in internal control over compliance that might be deGolenuiom` significant deficiencies, or znu1ocul vvoubucoaom. We did not identify any deficiencies in internal control over compliance that we consider to be /no/er/o/vvuoknoxxox, au defined above. Schedule of Expenditures m' Federal Awards We have audited the Duaocbd statements of the governmental activities, each major hzud and the aggregate remaining fund information of the City uuof and for the year ended June 30,2Ol2, and have issued our report thereon dated 0u1ubcr 26, 2012 which contained an unqualified opinion on those financial statements. Our audit was performed for the purpose of forming our opinions on the [lnuucio\ statements that collectively comprise the City's financial nbde000utu. The accompanying schedule of expenditures of federal uv/urdo is presented for purposes of additional ona|vaio as required by O%48 Circular /\-133, ,4xmYCx of States, Local Governments, and Non-Profit Organizations, and is not a required part ofthe fiuuuciu| m{u1eoueo1m. Such information ia the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial otatoouoo1s. The information has been subjected to the auditing procedures applied in the audit of the financial nbdeoocnta and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial o1a1conento or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States ofAmerica. In our opinion, the schedule of expenditure of federal awards is fairly stated in all material respects in relation to the financial statements uyuwhole. This report is intended solely for the information and use ofmanagement, City Council, federal agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these upouificdparties. � �� �� October 26'20l2 w �� CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION - MEASURE B FUNDS FOR THE YEAR ENDED JUNE 30, 2012 This Page Left Intentionally Blank CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMNUSSION MEASURE B FUNDS For the Year Ended June 30, 2012 Table of Contents Page INDEPENDENT AUDITOR'S REPORT ........................................................... ............................... 1 FINANCIAL STATEMENTS CombinedBalance Sheet ................................................................................... ............................... 2 Combined Statement of Revenues, Expenditures and Changes in Fund Balances ......................... 3 Notesto Financial Statements ........................................................................... ............................... 5 INDEPENDENT AUDITOR'S REPORT ON MEASURE B COMPLIANCE ............................ 9 This Page Left Intentionally Blank S f • a Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California We have audited the financial statements of the Alameda County Transportation Commission - Measure B funds (Measure B Funds) of the City of Dublin, California, as of and for the year ended June 30, 2012, as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards in the United States of America and the standards for 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 audits to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and 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 opinion. As discussed in Note 1 to the financial statements, the financial statements referred to above present only the Measure B Funds and are not intended to present fairly the financial position of the City and the results of its operations in conformity with generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities of the Measure B Funds as of June 30, 2012, and the respective changes in fund balances 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 October 26, 2012, on our consideration of the City of Dublin'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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. A Y-1 P,,-b C;atw October 26, 2012 T 925,930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 e maze@rnazeassociates.com Pleasant Hill, CA 94523 w mazeassociates.com City of Dublin Alameda County Transportation Commission - Measure B Funds Combined Balance Sheet For the year ended June 30, 2012 Special Revenue Funds Measure B Measure B Local Bike and ASSETS Cash and investments $ 792,041 $ 189,629 $ Accounts receivable 51,810 178,355 Alamo Canal Trail Under I580 Total $ 981,670 230,165 Total assets 843,851 367,984 - 1,211,835 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable - 23 - 23 Total expenditures - 23 - 23 Fund Balances: Restricted 843,851 367,961 - 1,211,812 Total fund balances 843,851 367,961 - 1,211,812 Total Liabilities and fund balances $ 843,851 $ 367,984 $ - $ 1,211,835 See accompanying Notes to Financial Statements 2 City of Dublin Alameda County Transportation Commission - Measure B Funds Combined Statement of Revenues, Expenditures and Changes In Fund Balance For the year ended June 30, 2012 Special Revenue Funds Measure B Measure B Alamo Local Bike and Canal Trail Streets Pedestrian Under I580 Total REVENUES: Measure B Pass - through Revenue $ 345,525 $ 122,883 $ - $ 468,408 Interest 7,556 3,337 - 10,893 Measure B Grants - - 153,733 153,733 Total revenues 353,081 126,220 153,733 633,034 EXPENDITURES: Current: Highway and Streets - 12,732 - 12,732 Capital Outlay: Street Overlay Program 186,447 - - 186,447 Sidewalk Safety Program - 8,884 - 8,884 Slurry Seal Program - - - - Traffic Signal Improvements - 224,904 - 224,904 Alamo Canal Trail Under 1580 - - 153,733 153,733 Total expenditures 186,447 246,520 153,733 586,700 OTHER FINANCING (USES) Transfers out - - - - REVENUES OVER (UNDER) $ 166,634 $ (120,300) $ - $ 46,334 EXPENDITURES FUND BALANCES: Beginning of year 677,217 488,261 - 1,165,478 End of year $ 843,851 $ 367,961 $ - $ 1,211,812 See accompanying Notes to Financial Statements 3 This Page Left Intentionally Blank CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS Notes to Financial Statements For the year ended June 30, 2012 NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity All transactions of the Alameda County Transportation Commission - Measure B Funds (Measure B Funds) of the City of Dublin, California (City), are included as a separate special revenue fund in the basic financial statements of the City. Measure B Program is used to account for the City's share of revenues earned and expenditures incurred under the City's local streets, bikes and pedestrians and capital projects programs. The accompanying financial statements are for Measure B Program only and are not intended to fairly present the financial position of the City and the results of its operations and cash flows of its proprietary fund type. B. Basis of Accounting The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a "current financial resources" measurement focus, wherein only current assets and current liabilities generally are included on the balance sheets. Operating statements of governmental funds present increased (revenues and other financing sources) and decreased (expenditures and other financing uses) in net current assets. C. Description of Funds The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self - balancing set of accounts. The following funds are used: Special Revenue Funds - To account for the proceeds of specific revenues that are legally restricted to be expended for specified purposes. NOTE 2 — CASH AND INVESTMENTS Cash and investments are maintained on a pooled basis with those of other funds of the City. Pooled cash and investments consist of U.S. government securities, deposits with banks, mutual funds and participation in the California Local Agency Investment Fund. All investments are stated at fair value. Pooled investment earnings are allocated monthly based on the average monthly cash and investment balances of the various funds and related entities of the City. See the City's Comprehensive Annual Financial Report for disclosures related to cash and investments and the related custodial risk categorization. This may be obtained from the City of Dublin, 100 Civic Plaza, Dublin, California 94568. CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS Notes to Financial Statements For the year ended June 30, 2012 The receivables represent the Measure B sales tax revenues and project reimbursements for the fiscal year received from the Alameda County Transportation Commission after June 30, 2012. NOTE 4 — MEASURE B PROGRAM Under Measure B, approved by the voters of Alameda County in 1986 (Old Measure B) and in 2000, Alameda CTC Measure B, the City receives a portion of the proceeds of an additional one-half cent sales tax to be used for transportation-related expenditures. This measure was adopted with the intention that the funds generated by the additional sales tax will not fund expenditures previously paid for by property taxes but, rather, would be used for additional projects and programs. Local projects funded by Measure B were as follows: Street Resurfacing Projects -To place overlays on various streets throughout the City. Bicycle and Pedestrian Safe -To fund various bicycle and pedestrian safety projects throughout the City. Highways & Streets (Public Works Admin) Bicycle Master Plan Program Implementation Sidewalk Safety Repair Project 4949102 - A portion of a larger project was partially funded with Measure B funds. The improvements were adjacent to Dublin High School and adjacent bus stops. These improvements were also partially funded by General Fund sources. Slurry Seal Program Project #969202 (Bicycle Master Plan Striping Component). Measure B provided funding associated with replacement and installation of pavement markings in conformance with the adopted Bicycle Master Plan. Traffic Signal Improvements Project #96022 (Shannon Avenue / San Ramon Road School Crossing Component). Measure B provided funding associated with the implementation of a controlled left turn signal at a major intersection which is a primary pedestrian route to two schools. The control of the left turn movement eliminated conflicts with pedestrians and turning vehicles. From a pool of funds held by the County, 26.88 percent of the pool is allocated among the cities in the County, based on the cities' populations and the number of roads within their city limits for other transportation-related projects. Funds allocated for streets and roads; bike lanes and pedestrian lanes are recorded as a special revenue funds. Regional capital projects not using Local Funds, being constructed under contract administered by the City of Dublin were as follows: Alamo Canal Trail Under 1-580 - This project is a multi-agency partnership including Measure B as well as funding provided by the East Bay Regional Park, District and the Cities of Dublin and Pleasanton. The project is independent of local funds provided as part of the Local Bike and Pedestrian funding. 0 CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS Notes to Financial Statements For the year ended June 30, 2012 NOTE 5 - COMMITMENTS AND CONTINGENCIES The City participates in several grant programs. These programs have been audited by the City's independent accountants in accordance with the provisions of applicable State requirements. No cost disallowances were proposed as a result of these audits; 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. NOTE 6 - RESERVES Measure B Reserves - Pursuant to its agreement with the Alameda County Transportation Commission, the City is to expend Measure B funds expeditiously. For the purposes of the Funding Agreement, no unexpended funds beyond those included in reserves as defined in the Agreement are allowed to be retained by the City. Specific reserves are described as follows: Capital Fund Reserve — The City may establish a specific capital fund reserve to fund specific large capital projects that could otherwise not be funded with a single year worth of Measure B funds. The City may collect capital funds during not more than three fiscal years and shall expend all reserve funds prior to the end of the third fiscal year immediately following the fiscal year during which the reserve was established. As of June 30, 2012, the City's Capital Fund Reserve retained to fund capital projects was allocated as follows: Measure B Local Measure B Project Streets Bike/Ped Total #960027 - Golden Gate Drive $165,836 $288,602 $454,438 #969103 - Fiscal Year 2012 Overlay (carryover) 112,953 112,953 #969104 - FY 2012 Overlay (portion) 565,062 565,062 Total Capital Reserve $843,851 $288,602 $1,132,453 Operations Fund Reserve - The City may establish and maintain a specific reserve to address operational issues including fluctuations in revenues and to help maintain transportation operations. The total amount retained may not exceed 50 percent of anticipated annual combined revenues from Measure B and VRF funds. This fund may be a revolving fund and is not subject to an expenditure timeframe. As of June 30, 2012, the City of Dublin classified the Measure B — Bike Ped Operations Fund Reserve to be $79,359 and no funds were designated as part of the Measure B — Local Streets Program. CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS Notes to Financial Statements For the year ended June 30, 2012 NOTE 6 — RESERVES (Continued) This maximum Operations Fund Reserve is to be based on 50% of the combined total of anticipated revenue. Combined revenue budgeted in Fiscal Year 2012/2013 for Measure B — Local Streets; Measure B — Bike/Ped; ACTC VRF totals $656,920. Therefore, 50% of this amount or $328,460 is the maximum Operations Fund Reserve. Actual allocations made by the City total $312,489 is comprised of $233,130 VRF and $79,359 in the Measure B — Bike/Ped. Undesignated Fund Reserve - The City may establish and maintain a specific reserve for transportation needs over a fiscal year such as matching funds for grants project development work studies for transportation purposes or contingency funds for a project or program. This fund may not contain more than 10 percent of annual pass- through revenues. As of June 30, 2012, the City did not allocate any funds to an Undesignated Fund Reserve Capital Reserve. 8 1, ff ''IT Honorable Mayor, and Members of the City Council of the City of Dublin Dublin, California We have audited the financial statements of the Alameda County Transportation Conimission Measure B Funds (Measure B Funds) of the City of Dublin (City) as of and for the year ended June 30, 2012, and have issued our report thereon dated October 26, 2012. We conducted our audit in accordance with generally accepted auditing standards in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have audited the City's compliance with the laws, regulations, contracts and grant requirements, as specified in the Master Programs Funding Agreement, between the City and Alameda County Transportation Commission, for the year ended June 30, 2012. Compliance with the Measure B Requirements referred to above is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and Measure B Requirements. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with Measure B Requirements could have a material effect on the Measure B Program. An audit includes examining, on a test basis, evidence about the City's compliance with Measure B Requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City's compliance with Measure B Requirements. In our opinion, the City complied, in all material respects, with the laws, regulations, contracts and grant requirements, as specified in the Master Programs Funding Agreement, that are applicable to the City's Measure B Program for the year ended June 30, 2012. T 925.930.0902 Accountancy Corporation r 925.930.0135 3478 Buskirk Avenue, Suite 215 E rnaze@rnazeassociates,corn Pleasant Hill, CA 94523 w mazeassociates.com Management u[ the City isresponsible for establishing and maintaining effective internal control over compliance with Measure B Requirements. In planning and performing our audit, we considered the City's internal control over com9/kmou to determine the auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the cOeodvcueuo of internal cou1n`| over compliance. Accordingly, we do not ergxeao an opinion on the uDfec1h/eoeeo of the City's internal control over compliance. /\ deficiency in internal control over compliance exists when the design or operation ofucontrol does not allow management or employees, in the normal onurmo of performing their assigned functions, to prevent, or detect and correct, oonuonp|ioouu on udooulv basis. /\ material weakness in intcnouJ control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is u reasonable possibility that material noncompliance with uoommp|iunce requirement will not bu prevented, nr detected and corrected, unu timely basis. Our consideration of internal control over compliance was for the limited purpose described inthe first paragraph of this section and was not designed to identify all deficiencies in bdenzud unnNzo| that might be do5uimmoiva` significant deficiencies, or material weaknesses in internal control over compliance. We did not identify any deficiencies in bmtonnu| control over compliance that we owuaidor to he oom1urio) weaknesses, xa defined above. This report is intended solely for the information and use of City Council, Management, the Alameda County Transportation its Board and Committees, others within the entity, and members of the public that will examine compliance information and is not intended to be and should not be used by anyone other than these specified parties. October 26, 2012 � IN CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012 This Page Left Intentionally Blank CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM FINANCIAL STATEMENTS For The Year Ended June 30, 2012 Table of Contents Page IndependentAuditor's Report .............................................................................................. ............................... 1 Financial Statements: BalanceSheet ................................................................................................... ............................... 2 Statement of Revenues, Expenditures and Changes in Fund Balances ........... ............................... 3 Notes to Financial Statements ........................................................................... ............................... 5 Independent Auditor's Report on on Vehicle Registration Fee (VRF) Measure F Compliance ................... 9 This Page Left Intentionally Blank Honorable Mayor and Members of the City Council of the City of Dublin, Dublin, California We have audited the financial statements of the Alameda County Vehicle Registration Fee (VRF) Measure F Program (Measure F Program) of the City of Dublin, California, as of and for the year ended June 30, 2012 as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in the United States of America and the standards for 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 as to whether the financial statements are free of material misstatement. An audit *includes examining on test basis evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and 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 opinion. As discussed in Note I to the financial statements, the financial statements referred to above present only the VRF Program and are not intended to present fairly the financial position of the City and the results of its operations in conformity with generally accepted accounting principles. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities of the Measure F Program as of June 30, 2012, and the respective changes in fund balance 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 October 26, 2012, on our consideration of the City of Dublin'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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. October 26, 2012 Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 T 925.930.0902 r 925.930.0135 E maze0mazeassociates.c3m w mazeassociates.com City of Dublin Alameda County Transportation Commission - Vehicle Registration Fee Balance Sheet For the year ended June 30, 2012 See accompanying Notes to Financial Statements 2 Special Revenue Fund Vehicle Registration Fee Total ASSETS Cash and investments $ 210,181 $ 210,181 Accounts receivable 40,546 40,546 Total assets 250,727 250,727 LIABILITIES AND FUND BALANCES Liabilities: Deferred Revenue $ 17,597 $ 17,597 Total expenditures 17,597 17,597 Fund Balances: Restricted 233,130 233,130 Total fund balances 233,130 233,130 Total Liabilities and fund balances $ 250,727 $ 250,727 See accompanying Notes to Financial Statements 2 City of Dublin Alameda County Transportation Commission - Vehicle Registration Fee Statement of Revenues, Expenditures and Changes In Fund Balance For the year ended June 30, 2012 REVENUES: VRF Pass - through Allocation Interest Reimbursement Total revenues EXPENDITURES: Current: Highway and Streets Capital Outlay: Street Overlay Program Sidewalk Safety Program Slurry Seal Program Traffic Signal Improvements Alamo Canal Trail Under I580 Total expenditures OTHER FINANCING (USES) Transfers out REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES: Beginning of year End of year Special Revenue Fund Vehicle Registration Fee Total $ 232,634 $ 232,634 496 496 233,130 233,130 $ 233,130 $ 233,130 $ 233,130 $ 233,130 See accompanying Notes to Financial Statements 3 This Page Left Intentionally Blank CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM Notes to the Financial Statements For The Year Ended June 30, 2012 OTE 1— BACKGROUND Measure F Program - Alameda County Vehicle Registration Fee Measure F (Measure F Program) was approved by the voters in November 2010, with 63 percent of the vote. The fee will generate about $10.7 million per year by a $10 per year vehicle registration fee. The collection of the $10 per year vehicle registration fee started in the first week of May 2011. The goal of the VRF Program is to sustain the County's transportation network and reduce traffic congestion and vehicle related pollution. The program includes four categories of projects: • Local Road Improvement and Repair Program (60 percent) • Transit for Congestion Relief (25 percent) • Local Transportation Technology (10 percent) • Pedestrian and Bicyclist Access and Safety Program (5 percent) The Alameda County Transportation Commission administers the program and distributes an equitable share of the funds among the four planning areas of the county over successive five year cycles. Geographic equity will be measured by a formula, weighted 50 percent by population of the planning area and 50 percent of registered vehicles of the planning area. OTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES Reporting Entity — All transactions of the Measure F Program of the City of Dublin, California (City) are included as a separate special revenue fund in the basic financial statements of the City. The accompanying financial statements include the Measure F Program only and are not intended to fairly present the financial position, results of operations and cash flows of the City in conformity with accounting principles generally accepted in the United States of America. Basis of Accounting — The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a "current financial resources" measurement focus, wherein only current assets and current liabilities generally are included on the balance sheets. Operating statements of governmental funds presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Description of Funds — The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self - balancing set of accounts. CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM Notes to the Financial Statements For The Year Ended June 30, 2012 OTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES Continued The following funds are used: Special Revenue Funds - To account for the proceeds of specific revenues that are legally restricted to be expended for specified purposes. Use of Estimates - Management uses estimates and assumptions in preparing the financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. OTE 3 - CASH AND INVESTMENTS Cash and investments are maintained on a pooled basis with those of other funds of the City. Pooled cash and investments consist of U.S. government securities, deposits with banks, mutual funds and participation in the California Local Agency Investment Fund. All investments are stated at fair value. Pooled investment earnings are allocated monthly based on the average monthly cash and investment balances of the various funds and related entities of the City. See the City's Comprehensive Annual Financial Report for disclosures related to cash and investments and the related custodial risk categorization. This may be obtained from the City of Dublin, 100 Civic Plaza, Dublin, California 94568. OTE 4 — RESERVES Measure F Program Reserves - Pursuant to its agreement with the Alameda County Transportation Commission, the City is to expend Measure F Program funds expeditiously. For the purposes of the Funding Agreement, no unexpended funds beyond those included in reserves as defined in the Agreement are allowed to be retained by the City. Specific reserves are described as follows: Capital Fund Reserve — The City may establish a specific capital fund reserve to fund specific large capital projects that could otherwise not be funded with a single year worth of Measure F Program funds. The City may collect capital funds during not more than three fiscal years and shall expend all reserve funds prior to the end of the third fiscal year immediately following the fiscal year during which the reserve was established. As of June 30, 2012, the City did not allocate any funds to a Capital Fund Reserve. 51 CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM Notes to the Financial Statements For The Year Ended June 30, 2012 [NOTE 4 — RESERVES Continued Operations Fund Reserve - The City may establish and maintain a specific reserve to address operational issues including fluctuations in revenues and to help maintain transportation operations. The total amount retained may not exceed 50 percent of anticipated annual combined revenues from Measure B and VRF funds. This fund may be a revolving fund and is not subject to an expenditure timeframe. As of June 30, 2012, the City of Dublin classified the VRF Operations Fund Reserve to be $233,130. This maximum Operations Fund Reserve is to based on 50% of the combined total of anticipated revenue. Combined revenue budgeted in Fiscal Year 2012/2013 for Measure B — Local Streets; Measure B — Bike /Ped; ACTC VRF totals $656,920. Therefore, 50% of this amount or $328,460 is the maximum Operations Fund Reserve. Actual allocations made by the City total $312,489 and are below the maximum allowed and for the period ending June 30, 2012. The $312,489 is comprised of $233,130 VRF and $79,359 in Measure B — Bike/Ped. Undesignated Fund Reserve - The City may establish and maintain a specific reserve for transportation needs over a fiscal year such as matching funds for grants project development work studies for transportation purposes or contingency funds for a project or program. This fund may not contain more than 10 percent of annual pass- through revenues. As of June 30, 2012, the City did not allocate any funds to and Undesignated Fund Reserve Capital Fund Reserve. 7 This Page Left Intentionally Blank W-11110 . 11110011i *& , 11 "s 1, , , . , Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California We have audited the financial statements of the Alaineda County Vehicle Registration Fee (VRF) Measure F Program (Measure F Program) of the City of Dublin (City), California, as of and for the year ended June 30, 2012, and have issued our report thereon dated October 26, 2012. We conducted our audit in accordance with generally accepted auditing standards in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We have audited the City's compliance with the laws, regulations, contracts and grant requirements, as specified in the Master Programs Funding Agreement, between the City and Alameda County Transportation Commission, for the year ended June 30, 2012. Compliance with the Measure F Requirements referred to above is the responsibility of the City's management, Our responsibility is to express an opinion on City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States and Measure F Requirements. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with Measure F Requirements could have a material effect on the Measure F Program. An audit includes examining, on a test basis, evidence about the City's compliance with Measure F Requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City's compliance with Measure F Requirements. In our opinion, the City complied, in all material respects, with the laws, regulations, contracts and grant requirements, as specified in the Master Programs Funding Agreement, that are applicable to the City's Measure F Program for the year ended June 30, 2012. T 925.930,0902 Accountancy Corporation F 925.930,0135 3478 Buskirk Avenue, Suite 215 E rnaze@mazeassociates,corn Pleasant Hill, CA 94523 vv mazeassociates.com Management of the City is responsible for establishing and maintaining effective internal control over compliance with Measure FKeouirementm. In planning and performing our audit, we considered the City's internal control over compliance to determine the auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of im1uronl ouzdro| over compliance. Accordingly, we do not exFn:mu an opinion on the o0eutivcwemm of the Cbv`m internal ooubo| over compliance. A deficiency in /n&on,u/ control over compliance exists when the design or operation of control does not allow management or employees, in the oomuu| uoormo of performing their assigned [budimoy, to prevent, or detect and 000eoL uononozp|iooce 000 timely basis. /l material weakness in internal ounbo| over compliance is adeficieuoy` or combination of deficiencies in internal control over compliance, such that there is u,euumoah|e possibility that material noncompliance with u compliance requirement niU not be prevented, or detected and corrected, oux timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first pu/uQ7upb of this section and was not designed <o identify all deficiencies in internal control that might be deficiencies, significant deficiencies, or material weaknesses in internal control over compliance. We did not identify any deficiencies in internal control over compliance that we omu*idor to be material weaknesses, aa defined above. This report is intended solely for the information and use of the City Council, management, the Alameda County Transportation Commission, its Board and Committees, others within the entity, and members of the public that will examine compliance information and in not intended hzbe and should not be used 6v anyone other than these specified parties. � October 26, 2012 01C Vol no elf Honorable Mayor and Members of the City Council City of Dublin, California We have performed the procedures below to the Appropriations Limit Worksheet which were agreed to by the City of Dublin for the year ended June 30, 2013. These procedures, which were suggested by the League of California Cities and presented in their Article YdELB Appropriations Limitation Uniform Guidelines were performed solely to assist you in meeting the requirements of Section 1.5 of Article of the California Constitution. Management is responsible for the Appropriations Limit Worksheet. This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified. Public Accountants. The sufficiency of the procedures is solely the responsibility of the City. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other 11 - The procedures you requested us to perform and our findings were as follows: A. We obtained the Appropriations Limit Worksheet and determined that the 2012 -2013 Appropriations Limit of $200,919,750 and annual adjustment factors were adopted by Resolution of the City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council. D. We recomputed the 2012 -2013 Appropriations Limit by multiplying the 2011 -2012 Prior Year Appropriations Limit by the Total Growth Factor. C. For the Appropriations Limit Worksheet, we agreed the Per Capita Income and City and County Population Factors to California State Department of Finance Worksheets. We were not engaged to, and did not, conduct an audit, the objective of which would.be the expression of an opinion on the Appropriations Limit Worksheet. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information of management and the City Council; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record. i4 July 3, 2012 T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 e maze @mazeassociates.com Pleasant Hill, CA 94523 w mazeassociates.com