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HomeMy WebLinkAbout4.11 CAFR and Annual Audit Report or 19 82 STAFF REPORT CITY CLERK CITY COUNCIL File #310-30 DATE: December 16, 2014 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager " SUBJECT: Comprehensive Annual Financial Report (CAFR) and Annual Audit for Fiscal Year Ending June 30, 2014 and Supplemental Reports Completed by the Auditors Prepared by Colleen Tribby, Director of Administrative Services EXECUTIVE SUMMARY: The City of Dublin has compiled and published its Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2014. 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 the following three supplemental reports: 1) A compliance audit of Alameda County Transportation Measure B Funds; 2) A compliance audit of the Alameda County Transportation Commission Vehicle Registration Fund (ACTC-VRF) Program; and 3) A review of the Annual Appropriations Limit Calculation. FINANCIAL IMPACT: Detailed financial information is summarized in this staff report, and Attachment 1 provides a guide to key information found in the CAFR. The full CAFR is included as Attachment 2. RECOMMENDATION: Staff recommends that the City Council receive and file the reports. r Submitted By \ Reviewed By Administrative Services Director Assistant City Manager DESCRIPTION: The City of Dublin has compiled and published its CAFR for the Fiscal Year ending June 30, 2014. The CAFR (Attachment 2) includes audited financial statements reviewed by Maze and Associates Accountancy Corporation (Maze), the independent auditor selected by the City Council, and concludes the third year of audit services under a five-year agreement approved by the City Council on April 17, 2012. Page 1 of 5 ITEM NO. 4.11 On December 4, 2014, the auditors met with the City Council ad-hoc Audit Committee, (Vice Mayor Gupta and Councilmember Hart) to review the results of the audit. The interaction of the auditors directly with representatives of the elected body is a key component to audit standards, and provides committee members an opportunity to discuss the report and ask questions of the auditors. The Committee recommends 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 - 3), meaning that the City's financial statements present fairly, in all material respects, the financial position of the City. Financial Overview Attachment 1 provides a guide to key elements contained in the CAFR. Some of the important financial results include: Increased Total Net Assets - Net assets increased by $19.9 million, as shown in Table 1 below. This change is on an entity-wide basis, and includes both capital assets as well as restricted funds. Included in the Management Discussion and Analysis section of the CAFR is a discussion of the changes in Net Assets (See Attachment 1, CAFR pages 5 - 20). It is important to note that the amount reported as Total Net Assets includes: 1) $445.5 million (73.7% of total assets) in investments in capital assets (e.g. land, infrastructure, buildings, and equipment). These are not assets that are available for future spending. 2) $60.8 million (10.1% of the total assets) are assets subject to external restrictions on how they can be used, such as development impact fee funds. TABLE 1:SIJP' IMA tY OF NET POSITION June 30,2D14and 2013 Governmental Activities pi l �iL .o- 'S E;58. 72 :2.4 ',373 3,25 _C,9 a,u "Total assets 528,752,155 607,749,809 21,002,376 3.5?"1w 3"_L.1 1, L,n,. J;ill'...$I V.1 .S., ..7,,, '.. µ.Vi a.,d c.w' ..9, 1,",9 9,2 1C 0C 8j Total Liabilities 24,496,421 23,394,520 1,101,801 4.7 511, ."9'C[ '`C"":f ' c^;.I .e.9ll Ss�". "'S,;20 "x'1,6 43 .72. ,32' .- .�v��.^�-**'.*v' 3,Li ,. 9 7 9..8,35 3 9 9,03 ,.7 17.� (.. .�`5._".:_3 1assi'l 1«C',1'"u "Total net assets E04,25S,764 584,3SS,189 19,900,575 3.4$6 Page 2 of 5 Memorandum on Internal Control (MOIC) (Attachment 3) The professional standards adhered to by the Auditors require them to record a formal process of communicating directly with the City Council. As part of the FY 2013-14 CAFR process, the auditors met with the ad-hoc City Council Committee at the start of their field testing as well as at the conclusion of the audit to review the final report. The MOIC to the City Council is included as Attachment 3. The MOIC contains a description of new GASB requirements implemented by the City during the audit year, upcoming GASB requirements that are not yet effective, and discusses the status of prior-year audit recommendations. The report also contained recommendations on certain process improvements, which the City has addressed: 1) Timeliness of updating bank signature cards - the City has incorporated this item in its internal on-boarding and off-boarding procedures, to ensure all staff authorizations are current. 2) Standardization of payroll register review - the City has updated the payroll review process to include a standardized signature stamp which the payroll reviewer uses to indicate that a formal review has taken place. Designations of Fund Balances On June 4, 2013, the City Council adopted Resolution No. 92-13 which amended the policy for the establishment of reserves and created the Fund Balance and Reserves Policy. This policy conforms to required standards enacted by the Governmental Accounting Standards Board (GASB). A listing of the FY 2013-14 year-end reserves established in accordance with this policy is shown on CAFR page 62 (Attachment 2). The following table summarizes the fund balances for all City funds: TABLE 2:GOVERNMENTAL FUND BALANCE CHANGES June 30,2014 and 2013 June 30, 2014 June 30, 2013 $Change %Change General Fund 79,577,762 77,317,129 2,260,633 2.9% Affordable Housing Fund 10,064,299 7,013,816 3,050,483 43.5% Capital Improvement Funds 41,339,587 37,433,821 3,905,766 10.4% Other Governmental Funds 9,403,895 8,100,458 1,303,437 16.1% Total Governmental Funds 140,385,543 129,865,224 10,520,319 8.1% As shown above, General Fund Reserves totaled $79.6 million as of June 30, 2014. $13.3 million of that is available for cash flow purposes, equating to 2.7 months of budgeted operating expenditures in FY 2014-15. This is in accordance with the City policy, which sets the cash flow goal at between two and four months of the budget. The Unassigned fund balance of negative $923,409 represents the General Fund advance to the Fire Impact Fee Fund ($901,908) and a small remaining negative balance in the Streets Capital Improvement Fund ($21,501) related to the timing of fund transfers. Page 3 of 5 Additional Reports Prepared by Auditors In addition to the audit of the financial statements, the auditor engagement included the completion of specialized reports. The three supplemental reports include: 1) A compliance audit of Alameda County Transportation Measure B Funds; 2) A compliance audit for the Alameda County Transportation Commission Vehicle Registration Fee (ACTC-VRF) Program; and 3) A review of the Annual Appropriations Limit Calculation. The City did not meet the threshold of $500,000 in expenditures of federal funds in FY 2013-14, and therefore was not required to complete a Federal Grant— Single Audit Report. Alameda County Transportation Commission (ACTC) — Measure B Funds Report (Attachment 4): The Alameda County Transportation Commission provides local funding via two local programs: 1) Local Street Improvements; and 2) Bicycle and Pedestrian Improvements. During FY 2013- 14, the following projects were funded by Measure B- 1) Bicycle Master Plan Program Implementation and update of 2007 Bikeway and Pedestrian Master Plan; 2) Golden Gate (West Dublin BART Improvements); and 3) Street Overlay Program. The report found that, based on the information reviewed and presented, the expenditures were materially in compliance with the program requirements. As of the Fiscal Year end, the Local Streets fund balance of $816,319 is assigned to a Capital Reserve for the Golden Gate Drive Project and the Streets Overlay Projects, and the Bike / Pedestrian fund balance of$52,780 is restricted to the appropriate related improvements. Alameda County Transportation Commission — Vehicle Registration Fee Report (Attachment 5): The City of Dublin uses a Special Revenue Fund to account for the funds collected through the ACTC's Vehicle Registration Fee. The goal of the program is to sustain the County's transportation network through a distribution of the funds throughout the County on successive five-year cycles. As of June 30, 2014, the ACTC VRF fund had a balance of $94,086 in restricted funds. The FY 2013-14 Budget appropriated funds from this source to support a portion of the maintenance costs for citywide traffic signals upgrades. Appropriation Limit Schedule Report (Attachment 6): 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 $247,143,137 Limit as presented in the FY 2014-15 Budget. No exceptions were noted in the findings. Page 4 of 5 NOTICING REQUIREMENTS/PUBLIC OUTREACH: There are no special noticing requirements. A copy of the report was sent to Katherine Yuen, Partner at Maze and Associates. ATTACHMENTS: 1. Summary — Key Information Comprehensive Annual Financial Report for the Year Ended June 30, 2014. 2. City of Dublin Comprehensive Annual Financial Report— Fiscal Year 2013-14 3. Memorandum on Internal Control and Required Communications for the Year Ended June 30, 2014 4. Alameda County Transportation Commission Measure B Funds (Street and Bicycle — Pedestrian) Report 5. Alameda County Transportation Vehicle Registration Funds (VRF) Report 6. Appropriation Limit Schedule Report Page 5 of 5 SUMMARY— KEY INFORMATION COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2014 City Council Meeting December 16, 2014 1. Includes audited financial statements reviewed by Maze and Associates Accountancy Corporation (Maze). 2. The auditors issued a "Clean Opinion", which means that the City's financial statements fairly represent the City's financial position. 3. The 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 a transparent manner. 4. ORGANIZATION OF DRAFT REPORT: a. Transmittal letter (pages v - x): provides a general overview of economic and budgetary factors that impact the City. b. Opinion issued by the Independent Auditor (pages 1 - 3). c. Management Discussion and Analysis (MD&A) (pages 5 — 20): provides an 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 23-25 present a Government-Wide Statement of Net Position which is similar to financial statements presented by private corporations. e. Statistical Section (pages 149-179): the unaudited statistical section of the CAFR includes graphs of relevant historical data. 5. Fund Equity - A complete listing of both fund reserves and designations for all funds is shown on page 62 of the report. 6. 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 the Auditors also note the upcoming government accounting standard changes. This information is presented as a separate document "Memorandum on Internal Control and Required Communications for the year ended June 30, 2014". Page 1 of 1 Attachment 2 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS FOR THE YEAR ENDED JUNE 30,2014 This Page Left Intentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS For the Year Ended June 30,2014 Table of Contents P, age Memorandum on Internal Control....................................................................................................l Scheduleof Other Matters........................................................................................................3 RequiredCommunications................................................................................................................7 SignificantAudit Findings.......................................................................................................7 AccountingPolicies............................................................................................................7 Unusual Transactions, Controversial or Emerging Areas................................................7 Estimates.............................................................................................................................7 Disclosures.........................................................................................................................8 Difficulties Encountered in Performing the Audit.............................................................8 Corrected and Uncorrected Alisstatements.......................................................................8 Disagreements with Management......................................................................................8 Management Representations............................................................................................8 Management Consultations with Other Independent Accountants................................8 Other Audit Findings and Issues.......................................................................................8 Other Information Accompanying the Financial Statements................................................9 This Page Left Intentionally Blank F/ MAZE & ASSOCIATES MEMORANDUM ON INTERNAL CONTROL To the City Council of the City of Dublin, California In planning and performing our audit of the basic financial statements of the City of Dublin, 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 that are appropriate in the circumstances 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 City's financial statements will not be prevented, or detected and corrected on a timely basis. 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 material weaknesses. In addition, because of inherent limitations in internal control, including the possibility of management override of controls,misstatements due to error or fraud may occur and not be detected by such controls. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified. 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 Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties. 4 Mt4 Pleasant Hill,California November 21,2014 T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue,Suite 215 E maze @mazeassociates.com Pleasant Hill,CA 94523 1 w mazeassociates.com This Page Left Intentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS 2014-01: Bank Signature Cards Criteria: Signature cards for the bank and investment accounts should be updated immediately after there is a change in authorized signers. Condition: During our examination of the City's signature cards,we found that the former City Manager (departed in April 2014)was still listed as an authorized signer for the City's investments accounts as of June 24,2014. Effect: Keeping ex-employees as authorized signers on the City's investment accounts exposes the City to the risk of misappropriation of City's assets Cause: The City delayed the update of the signature cards until after the former Finance Manager left the City on June 12,2014 so that all changes would be reflected on the new signature cards. Recommendation: We recommend that the City review all of its signature cards immediately to ensure that all authorized signers are current. In addition, a step should be added to the employee departure checklist to ensure that outside parties (such as banks, investment advisors, bond trustees) are informed that the departed employee no longer represents the City immediately after the departure occurs. Management Response: The City has updated all signature cards with current and appropriate staffmg. Controlling signature cards has been added to the Administrative Services Department's portion of the City's internal on/off-boarding process to ensure that timely changes are made to signature cards in the future. 2014-02: Review of Payroll Registers Criteria: Monitoring is an important component for internal control structure as it involves evaluating the effectiveness of controls on an ongoing basis and taking remedial actions when necessary. Condition: As part of the City's internal control procedures, until her departure, the Finance Manager was responsible for reviewing the payroll registers after each payroll run. During our audit,we selected three payroll registers and found that two of them (for the pay periods ending January 10,2014 and May 16,2014)had no indication of review. Effect: Without physical evidence of the review, the City cannot monitor the effectiveness of such control procedure. Cause: We were unable to determine the cause of this issue as the Finance Manager has since departed the City. Recommendation: To demonstrate that good internal controls are in place in the City,the employee who reviews the payroll register should sign or initial on the face of the document to denote a review has taken place. Management Response: The Administrative Services Department has implemented a procedure by which the payroll reviewer stamps and signs, in the same location, the bi-weekly payroll report. This action now serves as the formal review and approval of payroll. 3 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in fiscal year 2014-15. We have cited them here to keep you abreast of developments: GASB 68-Accounting and Financial Reporting for Pensions (an amendment of GASB 27) This Statement will have material impact on the City's financial statements. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. This Statement establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources, and expense/expenditures. For defined benefit pensions,this Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. In financial statements prepared using the economic resources measurement focus and accrual basis of accounting, a single or agent employer that does not have a special funding situation is required to recognize a liability equal to the net pension liability. The net pension liability is required to be measured as of a date no earlier than the end of the employer's prior fiscal year(the measurement date), consistently applied from period to period. Note disclosure and required supplementary information requirements about pensions also are addressed. Distinctions are made regarding the particular requirements for employers based on the number of employers whose employees are provided with pensions through the pension plan and whether pension obligations and pension plan assets are shared. The following are the major impacts: • This Statement requires the liability of employers and nonemployer contributing entities to employees for defined benefit pensions net pension liability)to be measured as the portion of the present value of projected benefit payments to be provided through the pension plan to current active and inactive employees that is attributed to those employees' past periods of service total pension liability),less the amount of the pension plan's fiduciary net position. • Actuarial valuations of the total pension liability are required to be performed at least every two years, with more frequent valuations encouraged. If a valuation is not performed as of the measurement date,the total pension liability is required to be based on update procedures to roll forward amounts from an earlier actuarial valuation (performed as of a date no more than 30 months and 1 dayprior to the employer's most recent year-end). • The actuarial present value of projected benefit payments is required to be attributed to periods of employee service using the entry age actuarial cost method with each period's service cost determined as a level percentage of pay. The actuarial present value is required to be attributed for each employee individually, from the period when the employee first accrues pensions through the period when the employee retires. 4 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS GASB 69–Government Combinations and Disposals of Government Operations This Statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. As used in this Statement, the term government combinations includes a variety of transactions referred to as mergers, acquisitions, and transfers of operations. GASB 71 - Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68 The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or non-employer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. Statement 68 requires a state or local government employer (or non-employer contributing entity in a special funding situation) to recognize a net pension liability measured as of a date (the measurement date) no earlier than the end of its prior fiscal year. If a state or local government employer or non- employer contributing entity makes a contribution to a defined benefit pension plan between the measurement date of the reported net pension liability and the end of the government's reporting period, Statement 68 requires that the government recognize its contribution as a deferred outflow of resources. In addition, Statement 68 requires recognition of deferred outflows of resources and deferred inflows of resources for changes in the net pension liability of a state or local government employer or non-employer contributing entity that arise from other types of events.At transition to Statement 68,if it is not practical for an employer or non-employer contributing entity to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions, paragraph 137 of Statement 68 required that beginning balances for deferred outflows of resources and deferred inflows of resources not be reported. Consequently, if it is not practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions, contributions made after the measurement date of the beginning net pension liability could not have been reported as deferred outflows of resources at transition. This could have resulted in a significant understatement of an employer or non-employer contributing entity's beginning net position and expense in the initial period of implementation. This Statement amends paragraph 137 of Statement 68 to require that, at transition, a government recognize a beginning deferred outflow of resources for its pension contributions, if any,made subsequent to the measurement date of the beginning net pension liability. Statement 68, as amended, continues to require that beginning balances for other deferred outflows of resources and deferred inflows of resources related to pensions be reported at transition only if it is practical to determine all such amounts. The provisions of this Statement are required to be applied simultaneously with the provisions of Statement 68. 5 This Page Left Intentionally Blank MAZE & ASSOCIATES REQUIRED COMMUNICATIONS Honorable Mayor and Members of the City Council of City of Dublin, California We have audited the basic financial statements of the City of Dublin for the year ended June 30, 2014. Professional standards require that we communicate to you the following information related to our audit under generally accepted auditing standards and,Government Auditing Standards. Significant Audit Findings Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Dublin are described in Note 1 to the financial statements. The following pronouncements became effective, but did not have a material effect on the financial statements: GASB 66 — Technical Corrections-2012—an amendment of GASB Statements No. 10 and No. 62 GASB 70--Accounting and Financial Reporting for Nonexchange Financial Guarantees Unusual Transactions, Controversial or Emerging Areas We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus.All significant transactions have been recognized in the financial statements in the proper period. Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected.The most sensitive estimate(s) affecting the City's financial statements was: • 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 in determining that it is reasonable in relation to the financial statements taken as a whole. • Accrued compensated absences are 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. T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue,Suite 215 E maze @mazeassociates.com Pleasant Hill, CA 94523 7 «mmazeassodates..corn Disclosures The financial statement disclosures are neutral,consistent,and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all/certain such misstatements. 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. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in a management representation letter dated November 21,2014. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts.To our knowledge,there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 8 Other Information Accompanying the Financial Statements With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. With respect to the required supplementary information accompanying the financial statements, we 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 did not express an opinion nor 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. The Introductory and Statistical Sections included as part of the Comprehensive Annual Financial Report have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly,we did not express an opinion nor provide any assurance on them. This information is intended solely for the use of City Council and management and is not intended to be, and should not be,used by anyone other than these specified parties. P(�oy. 4 44 0(;A� Pleasant Hill,California November 21,2014 9 This Page Left Intentionally Blank >• ,,_ 10 { l'':- , 4 i i \ EMIL //ir-A01 ../.%1% 19 -'- 82 ....)1/.[Fo____) r City of Dublin C A L I F O I A Dublin All-nmercacnv l j r 2011 r Comprehensive Annual Financial Report ,, ,,,, I. * �� = Fiscal Year ended June 30 2014 ii i a ,. .. ,...,},. fr'�' I� lfTl 3�J�IL ICS] OMMM"""L This Page Left Intentionally Blank CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2014 INTRODUCTORY SECTION: Tableof Contents ......................................................................................................................... ............................... i Letterof Transmittal .................................................................................................................... ............................... v GFOA Certificate of Achievement ........................................................................................... ............................... xii PrincipalOfficers ......................................................................................................................... ...........................xiii OrganizationalChart ................................................................................................................ ............................... xiv FINANCIAL SECTION: IndependentAuditor's Report ................................................................................................... ............................... 1 Management's Discussion and Analysis .................................................................................. ............................... 5 Basic Financial Statements: Government -wide Financial Statements: Statementof Net Position ........................................................................................ ............................... 23 Statementof Activities ............................................................................................. ............................... 24 Fund Financial Statements: Governmental Funds: BalanceSheet ....................................................................................................... ............................... 28 Reconciliation of the Governmental Funds - Balance Sheet with the Statement ofNet Position ................................................................................................. ............................... 31 Statement of Revenues, Expenditures, and Changes in Fund Balances ............. .................0.000......... 32 Reconciliation of the Net Change in Fund Balances - Total Governmental Funds with the Statement of Activities ........................................................... ..........................0.... 34 Statement of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual: GeneralFund ............................................................................................... ..............................3 5 Affordable Housing Special Revenue Fund ................................................. .............................36 11 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2014 FINANCIAL SECTION (Continued): Proprietary Funds: Statementof Net Position ................................................................................... ............................... 38 Statement of Revenue, Expenses and Changes in Fund Net Position ................ ............................... 39 Statementof Cash Flows.,',,,, 11111111*06*908*94 00*90,11,11111, ....................................................................... 40 Fiduciary Funds: Statement of Fiduciary Net Position ............................................................... ............................... 42 Notes to Basic Financial Statements .......................................................................... .............................43 Supplemental Information: General Fund- Budget Versus Actual: 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: Schedules of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual: General Improvements Projects Capital Projects Fund ............................ .............................82 Community Improvements Projects Capital Projects Fund ...................... .............................83 Parks Projects Capital Projects Fund......,,,,,,,,, ..................... .................................. 84 Streets Projects Capital Projects Fund"..,,,,,,,,,,, ....................... I ... 11 ............................. I ......... 85 Public Facilities Impact Fees Capital Projects Fund ................................ .............................86 Fire Impact Fees Capital Projects Fund',',, ............................................................................ 87 Traffic Impact Fees Capital Projects Fund ............................................... .............................88 Dublin Crossing Contribution Capital Projects Fund ............................... .............................89 ii CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2014 FINANCIAL SECTION (Continued): Non -major Governmental Funds: CombiningBalance Sheets .................................................................................. .............................96 Combining Statements of Revenues, Expenditures, and Changes inFund Balances ............................................................ ............................... ............................102 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual ........................... ............................... ............................108 Internal Service Funds: Combining Statements of Net Position ............................ ............................... ............................138 Combining Statements of Revenues, Expenses and Changes in Fund Net Position .......................140 Combining Statements of Cash Flows ................................... ............................... ............................142 Fiduciary Funds: Statement of Changes in Assets and Liabilities — All Agency Funds ............. ............................146 STATISTICAL SECTION: NetPosition by Component ........................................................ ............................... ............................150 Changesin Net Position .............................................................. ............................... ............................152 Fund Balances of Governmental Funds ..................................... ............................... ............................154 Changes in Fund Balances of Governmental Funds .................. ............10.11.............. ............................156 Assessed Value and Estimated Actual Value of Taxable Property .......................... ............................159 Direct and Overlapping Property Tax Rates .............................. ............................... ............................160 Principal Property Taxpayers ..... ............................................... I. &.. & ......... I.,., ............................. . ......... 162 Property Tax Levies and Collections ......................................... ............................... ............................163 Ratioof Outstanding Debt by Type ............................................ ............................... ............................164 Directand Overlapping Debt ..................................................... ............................... ............................165 Legal Debt Margin Information ................................................. ............................... ............................166 iii CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2014 STATISTICAL SECTION (Continued): Demographic and Economic Statistics ...................................... ............................... ............................168 Property Value, Construction and Bank Deposits ..................... ............................... ............................169 PrincipalEmployers ................................................................... ............................... ............................171 Full -time Equivalent City and Contract Government Employees by Function ........ ............................172 Operating Indicators by Function ............................................... ............................... ...........................174 Capital Assets Statistics by Function ......................................... ............................... ............................176 Top25 Sales Tax. Producers ...................................................... ............................... ............................178 Miscellaneous Statistical Data ................................................... ............................... ............................179 Iv a CITY OF DUBLIN November 21, 2014 Honorable Mayor and Members of the City Council: 100 Civic Plaza Dublin, California 94568 Presented with this transmittal is the City of Dublin (City) Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2014. The Phone: (925) 833 -6650 information in this Comprehensive Annual Financial Report is prepared in accordance with Generally Accepted Accounting Principles (GAAP) as Fax: (925) 833 -6651 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, 2014. 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 Council (925) 833 -6650 CITY PROFILE City Manager The City of Dublin was incorporated in 1982 and is located in Alameda (925) 833 -6650 County, a growing area in the eastern portion of the San Francisco Bay Area. Community Development In 2011, the City was named an "All- America City" by the National Civic (925) 833 -6610 League, one of the nation's oldest and most prestigious civic organizations. In Economic Development 2012, the City celebrated its 30th anniversary as an incorporated city. (925) 833 -6650 The City has maintained a permanent staffing level of approximately 91.5 (925) 8333 -664 Finance 3 -664 0 Services full -time equivalent City employees as of June 30, 2014, and budgets for an additional 75 to 100 temporary employees during the summer recreational Fire Prevention season. The City serves an estimated population of 49,890 covering a land (925) 833 -6606 area of 14.62 square miles. The City's strategic location offers opportunities Human Resources for employers, retail outlets, and high quality residential neighborhoods. (925) 833 -6605 Parks & Community Services (925) 556 -4500 Police (925) 833 -6670 Public Works /Engineering v tees) R _( ;(;in The City operates under the Council- Manager form of government. Policy making and legislative authority are vested in the City Council, which consists of an elected Mayor, who serves a two -year term and four Council members each 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 City Manager and City Attorney and confirming the appointments made by the Mayor to commissions and committees. The City Manager is responsible for the following activities: implementing the policies, ordinances, and directives of the City Council; overseeing the day -to -day operations of the City; and appointing the Directors of the City's departments. Current City services include: City Manager, Human Resources, Administrative Services (Finance/Information Systems); City Attorney; City Clerk; Police; Fire; 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 125.24 FTE contract employees were included in the City budget in FY 2013 -140 HIGHLIGHTS The City of Dublin is located at the intersection of Interstates 580 and 680 approximately 35 miles east of San Francisco. The City delivers a broad range of community services and 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. During FY 2013 -14, Dublin was recognized as one of the fastest growing communities in California on a percentage basis. Much of this growth, which is now in its final phases of completion, was planned in the voter - approved 1994 Eastern Dublin Specific Plan. This vision has allowed a strong foundation and quality neighborhoods and public facilities to be built citywide. Equally exciting, new developments in the Downtown Dublin Specific Plan area and throughout the rest of the community have brought a wonderful range of new retail, office and transit - oriented residential development that will support a high quality of life in Dublin. The City remains committed to working to attract new quality investment and services to our community. New development over the past decade has had positive budgetary impacts, allowing the City to make significant investment in our community- serving facilities, such as our excellent parks. While careful financial stewardship has put Dublin in a strong fiscal position, it is important that we look to ensure the stability of the community's long -term fiscal condition so that we may continue to provide high- quality services. vi Key City accomplishments during FY 2013 -14 include the following: Parks & Community Services • Completed the Shannon Park Water Play Area renovation. • Acquired land and developed a Master Plan for the Iron Horse Nature Park. • Coordinated the "Live Healthy Dublin: Step 2 It Challenge" with over 350 participants. • Expanded hours at the Dublin Library, increasing the City- supported additional hours to 21 per week, for a total of 49 open hours per week. • Expanded funding for the Recreation Fee Assistance Program. Public Works • Improved pedestrian access at Golden Gate Drive and Dublin Boulevard by providing a separate phase for left -turning vehicles. • Developed the Street Tree Ordinance. • Produced a long -term Trash Reduction Plan to reduce litter by 70% within the City's storm drains, creeks and waterways by the end of 2017. • Converted eight street median irrigation systems from potable to recycled water. • Expanded a recycling contest within the Dublin Unified School District. Administrative Services • Implemented an online web tool that provides the City's budget data to the public. • Began implementation of an enhanced Geographic Information System (GIS) portal. • Implemented a new web -based financial reporting tool that allows more efficient use of the City's financial system. • Prepared the City's two -year Budget and Financial Plan. Economic Development • Provided assistance in the development of Persimmon Place (Whole Foods, Nordstrom Rack, and others) due to open Spring 2015 • Completed fagade remodel project along Village Parkway in Downtown Dublin. • Provided permitting assistance to a range of new businesses including Ross Corporate Headquarters and many new restaurants and shops. Community Development • Processed entitlements and issued permits for numerous major projects, including Ross Corporate Headquarters, Persimmon Place, and expansion of Fallon Gateway Center. • Prepared the Dublin Crossings Specific Plan for the conversion of 189 -acres of Camp Parks for residential, commercial, school, and parkland development. • Prepared the 2013 California Building Codes for City Council adoption, and enhanced customer service through online viewing of building permit plan check comments. • Prepared new procedures to streamline and clarify zoning regulations for certain land use, design, signage, and parking requirements for small businesses. • Instituted the City's first Human Services Commission, and provided over $200,000 in financial support to community groups serving Dublin residents. Vii General Government • Initiated a comprehensive Marketing and Branding Plan for the City. • Completed construction of the first phase of the City's new Public Safety Complex to accommodate projected growth in services. • Facilitated the "Inside Dublin" Leadership Academy • Completed the Energy Action Plan Project. • Initiated construction of both the City and Alameda County Fire Department's maintenance facilities. Police Services • Facilitated a Citizens Academy and a Youth Academy for community participants. • Hosted 10 bicycle rodeos and 15 safety seminars throughout Dublin. • Conducted the annual. Independence Day Special Operation with the goal of controlling the use of illegal fireworks and the protection of public safety with a reduction in calls from the previous year. • Purchased six new police patrol vehicles, two new K -9 vehicles, one new Mobile Command vehicle, and four unmarked detective vehicles. • Purchased new radios to improve interoperability with neighboring agencies. Fire • Relocated the Alameda County Fire offices to the new Public Safety Complex in Dublin. • Responded to 2,639 calls from July 1, 2013 to June 30, 2014. • Conducted 3,561 inspections during the fiscal year. • Completed 1,091 plan checks. • Continued to improve emergency responses throughout the Tri- Valley by formalizing an automatic aid agreement with Livermore - Pleasanton Fire Department. Also In FY 2013 -14, the City received numerous awards for its accomplishments in various areas of community services and improvements. These include the following: • 20th Annual Charles L. Edson Tax Credit Excellence Award for Best Public Housing (Renovation) for the Emerald Vista Project, in partnership with Eden Housing. • Award of Merit from the American Planning Association, for the Emerald Vista Project. • "Tree City USA" designation, by the National Arbor Day Foundation. • 2014 Project of the Year Award for Small Cities — Transportation, American Public Works Association, Northern CA Chapter, for the Golden Gate Drive Streetscape Enhancement Project. • Recognition by the Metropolitan Transportation Commission Regional Streets and Roads Program for achievement in pavement maintenance, with Alameda County's highest pavement condition index. • Honor Award from the Northern California Chapter of the American Society of Landscape Architects for the Iron Horse Nature Park Master Plan. • "A" Grade from the American Lung Association. • Red Tape to Red Carpet Award from the Silicon Valley Leadership Group. • California Association of Local Economic Development (CALED) Award for Toolkit for Business Retention and Expansion. viii FINANCIAL OUTLOOK As the real estate market has stabilized and development gains momentum, the local economy has experienced a steady and gradual recovery that is continuing into the current fiscal year. The City's property tax revenues, which made up 37% of total revenues in FY 2013 -14, have grown 1 %, 6 %, and 7% over the last three years, respectively. Since the recession, average assessed valuations in Dublin have been gradually rising, along with sales prices. As of November 2014, median sales prices in the City of Dublin increased 8.2% compared to the prior year, and sales prices have appreciated 56.7% over the last five years. The total assessed valuation in the City increased 15.3% to roughly $11.1 billion as of June 30, 2014. The growth is due primarily to new inventory, increased sales activity, and the partial recapture of assessed valuations that had been reduced during the recession. Sales tax revenue is also showing continued growth, with an increase of 16% over the prior year. While the City experienced growth in nearly all sectors, Autos and Transportation and General Consumer Goods remain the highest revenue generators. The City's sales base includes such retailers as Best Buy, Toys R US, Lowes, and Target; and auto dealers Chevrolet, Nissan, Honda, Toyota, Volkswagen, Chrysler, Dodge, Jeep, Buick, GMC, Cadillac, Kia, Mazda, and Hyundai. Ross Corporate headquarters is among the new businesses receiving permitting assistance during FY 2013 -14, and the Persimmon Place project (including Whole Foods, Nordstrom Rack and Home Goods) is on track to open early in 2015. The City's Sales Tax Reimbursement Program, which offers a temporary tax incentive to eligible companies, has been instrumental in bringing in new retailers, and has been extended to January 2015. Development - related revenue also has been increasing in the City of Dublin. Building permit revenue has increased 9% over FY 2012 -13, as has revenue from zoning services. As a high level of development continues, the City Council has recognized these funding sources as one -time sources, versus the ongoing revenues that sustain the fundamental City operations. It is also crucial to differentiate ongoing expenditures, which are linked to departmental activities, from total expenditures, which include transfers out to CIP projects. Those transfers are typically funded by the planned use of Committed Reserves, with one -time sources like Community Benefit Payments, or through the special designation of surplus reserves, as approved by the City Council. As ongoing costs rise, City operations will depend upon a similarly growing ongoing revenue stream, and one -time sources should continue to be used in funding the CIP, or to shore up contingency reserves for future needs. While FY 2013 44 finished with a General Fund surplus of roughly $10.5 million (before transfers to out to capital projects), it is long -term fiscal sustainability that remains at the forefront of budget discussions, particularly related to providing ongoing maintenance of the handful of new parks and facilities, and the planning for the eventual slowdown of development. M FINANCIAL PLANNING AND POLICIES The City Council adopted a 10 -Year Strategic Plan, which is updated every two years. Five specific strategies were identified 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 adopts a balanced operational budget in accordance with City policies. Beginning with FY 2012 -13, the City has 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 typically operated with no debt financing, though an equipment lease was initiated in FY 2012 -13 to fund various energy- efficient improvements, including solar panels at City facilities, which have reduced ongoing utility costs and will eventually 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. The Government Finance Officers' Association (GFOA) has recognized the City of Dublin for its Comprehensive Annual Financial Report covering the period ending June 30, 2013. A copy of the award from this entity is included in this report. This award represents the 23rd 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. x ACKNOWLEDGEMENTS The preparation of this report was made possible by the collaborative efforts of staff in the Administrative Services Department and other departments. A special thanks and acknowledgement goes to Yuliana Tjeng, Senior Accountant, and Lisa Hisatomi, Assistant Director of Administrative Services, as well as 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, Christopher L. Foss Colleen Tribby, Administrative Services Director X1 1 1 GD Government Finance Officers Association 1 Certificate of . 1 Achievement for Excellence 1 in Financial t Reporting Presented to City of Dublin California 1 For its Comprehensive Annual Financial Report for the Fiscal Year Ended 1 June 30, 2013 1 *fier 1 Executive Director/CEO I 1 xii 1 CITY OF DUBLIN PRINCIPAL OFFICERS Fiscal Year 2013/2014 Mayor Tim Sbranti Vice Mayor Councilmember Don Biddle Kevin Hart Councilmember Councilmember David Haubert Abe Gupta ADMINISTRATION PERSONNEL City Manager Chris Foss Assistant City Manager Linda Smith City Attorney John Bakker Administrative Services Director Colleen Tribby City Clerk Caroline Soto Chief of Police Tom McCarthy Community Development Director Luke Sims Economic Development Director Lori Taylor Fire Marshal Bonnie Terra Human Resources Director Julie Carter Park & Community Services Director Paul McCreary Public Work Director Gary Huisingh Xiii oraanizational Chart Citizens of Dublin City Council City Attorney I I City Manager Police Services Parks &� Community Services Human Resources Fire Services Non Departmental Assistant City Manager Public Works Economic Development City Clerk Administrative Services xiv 1 Community Development City Clerk Administrative Services xiv M AC T ZE INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Report on Financial Statements 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 (City), California, as of and for the year ended June 30, 2014, and the related notes to the financial statements which collectively comprise the City's basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions 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 applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of these financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 1 T 925.930.0902 F 925.930.0135 E maze@mazeassociates.com w mazeassociates.com Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2014, 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 accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements as a whole. The Introductory Section, Supplemental Information, and Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis and are not required parts 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 basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic 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. 2 f Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 21, 2014, 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 financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over fmancial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over fmancial reporting and compliance. iy( /1.4301.44gbei. ' Pleasant Hill,California November 21, 2014 1 I 1 1 1 I I I I 1 1 3 1 1 This Page Left Intentionally Blank I I I I I I I I 1 I I Management's Discussion and Analysis (MDA) June 30, 2014 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, 2014. 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 Position 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 major funds, including how services for financing future projects. • Notes to the Financial Statements — understanding of the information Statements. statements provide additional information about the City's were financed in the short term and fund balances available The notes provide additional detail that is essential to a full provided in the Government -wide and Fund Financial 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 position and changes to the net position during the fiscal year. Net position - the difference between assets and liabilities - are one way to measure the City's financial position. Over time, increases or decreases in the net position 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 nonfinancial 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. 5 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. TABLE 1: SUMMARY OF NET POSITION I June 30,2014 and 2013 Governmental Activities June 30,2014 June 30,2013 $Change %Change I Item Current and other assets 166,738,992 158,556,363 8,182,629 5.2% Notes receivable(See Note5) 10,320,132 10,774,156 (454,024) -4.2% OPEB asset(Note 12) 35,889 17,717 18,172 102.6% Capital assets 451,658,172 438,401,573 13,256,599 3.0% Total assets 628,753,185 607,749,809 21,003,376 3.5% I Current Liabilities 17,954,413 16,434,604 1,519,809 9.2% Noncurrent Liabilities 6,542,008 6,960,016 (418,008) -6.0% I Total Liabilities 24,496,421 23,394,620 1,101,801 4.7% Net investment in capital assets 445,529,366 432,722,323 12,807,043 3.0% I Restricted 60,808,540 52,548,095 8,260,445 15.7% Unrestricted (See Note 8 to Financials for 97,918,858 99,084,771 (1,165,913) -1.2% I Classification) Total net assets 604,256,764 584,355,189 19,901,575 3.4% As illustrated in the above table, the City's net position increased b y $19.9 million (3.4%)) during FY 2013-14. This is primarily due to the following: • Total assets increased approximately $21.0 million, due rimaril to increases in cash and P Y investments, which are part of current assets, and in capital assets. Cash and investments in the Community Benefit Fund (part of the General Fund) increased by $2.1 million, as a large one- time development payment was received, in addition to numerous smaller payments. Cash and investments in the Public Facility Impact Fees increased a combined total of$3.5 million, and Traffic Impact Fees increased approximately$3.6 million, both trending with the increased level I of development the City experienced during the fiscal year. Capital Assets increased by $13.3 million (3.0%)due primarily to significant progress on capital improvement projects, including a $4.6 million parkland acquisition(Iron Horse Trail),a combined total of$3.5 million spent on the Emerald Glen Aquatics Complex and Passatempo Park improvements, and $7.9 million on the Maintenance Facility and $4.2 million on the Public Facility Complex, both of which are near completion as of June 30, 2014. The City also purchased new safety vehicles, including a new Fire engine, totaling $972,000 during the year. Notes receivable decreased in the Affordable I Housing fund decreased,as the City received the first payments against the Emerald Vista loan. 1 1 ' 6 t • Total liabilities also increased, with a net difference of $1.1 million from the prior year. Current liabilities, representing primarily obligations outstanding for current operations (accounts payable), capital projects (such as retention payable), deposits held for development projects, and amounts recorded as deferred revenue, increased slightly during the year with routine contract obligations. Noncurrent liabilities, which as of FY 2012 -13 include the 2012 Chevron Energy Capital Lease, decreased slightly as the City made its first payment against the lease. (see Note 7). • The City's $445.5 million in capital assets represents 73.7% of the total reported net assets, staying relatively consistent with the prior year. Capital asset investments include the City's investments in land, infrastructure, buildings, and equipment. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. The change in annual capital assets reflects both the addition of capital assets (including construction in progress), less accumulated depreciation. As noted above, the City made significant contributions to capital assets during the year, including a new land acquisition, and significant expenses on the Maintenance Yard and Public Safety Complex. • Restricted assets, including impact fee funds and grant funds, are resources that have external restrictions on their use. In FY 2013 -14 the City's restricted assets increased by $8.3 million, due primarily to the collection of impact fees for specific development projects, notably Public Facility Fees and Traffic Impact Fees, as well as the Public Art Fund (Special Revenue), that accounts for funds also restricted to specific capital improvement use. Approximately $97.9 million of the City's total assets are unrestricted and may be used to meet the City's ongoing obligations to the community and to creditors. This is a decrease of $1.2 million from the prior year. The bulk of unrestricted assets are attributable to portions of the General Fund balance that are already committed and assigned for specific purposes, in accordance with the City's Fund Balance and Reserves Policy. 7 GOVERNMENTAL ACTIVITIES Table 2 below 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. The information presented here provides detail behind the numbers shown in the Summary of Net Position (Table 1). TABLE 2: SUMMARY OF CHANGES IN NET POSITION June 30, 2014 and 2013 General Revenues Property Taxes June 30, 2014 June 30, 2013 $ Change % Change Revenues 17,833,314 15,359,340 2,4739974 16.1% Program Revenues 55427,627 550543257 3739370 7.4% Charges For Services 195581,052 18,5209645 15060,407 53% Operating Contributions & Grants 1,674,815 1,135,050 539,765 47.6% Capital Grants & Contributions 20,914,994 28,6895753 (75774,759) -27.1% Sub -Total Program Revenue 425170,861 48,3455448 (6,1743587) -12.8% General Revenues Property Taxes 25,286,308 23,590,102 156969206 7.2% Sales Tax 17,833,314 15,359,340 2,4739974 16.1% Other Taxes 55427,627 550543257 3739370 7.4% Investment income, unrestricted 853,147 (3995590) 1252,737 - 313.5% Intergovernmental, unrestricted 191,574 208,904 (17,330) -83% Other general revenues 125211 457295261 (4,604,050) -97.4% Sub -Total General Revenue 49,7171181 4855425274 1,174,907 2.4% Total Revenues 1 9198889042 96,887,722 (49999,680) -5.2% Expenses Governmental activities: General government Public safety Highways and streets Health and welfare Culture and leisure services Community development 17,665221 27,770,111 45305,390 4,0573796 9,018,161 991695788 1032655476 26,846,045 7241263 35753,875 105772,868 95979,877 7,399,745 9245066 (239355873) 303,921 (1,754,707) (810,089) 72.1% 3.4% -40.5% 8.1% -163% -8.1% Sub -Total governmental activites 719986,467 68,8599404 391279063 4.5% Increase In Net Position 199901,575 2890289318 (891269743) -29.0% Net Position - Beginning of Year 58493559189 55693269871 2890289318 5.0% Net Position - End of Year 60492569764 58493559189 1999019575 3.4% As shown in Table 2, total revenues from all sources were $91.9 million and total expenses for all City programs were $72.0 million in FY 2013 -14. The City's net position increased $19.9 million, compared to $28.0 million in the prior year: that change is due predominantly to decreased revenue for capital projects and one -time revenues related to development projects, as well as increased in Property and Sales taxes, and a net increase of capital asset expenses. Revenues Overall revenues decreased $5.0 million, or 5.2 %, in FY 2013 -14 compared to the prior year. Changes included: • Charges for Services increased $1.1 million due mainly to the net change of increases in building permit activity and zoning revenue associated with the acceleration of development within the City, charges for recreation programs and residential garbage /recycling, and a decrease in Santa Rita charges for emergency services. • Operating Contributions and Grants increased $0.5 million due to the Affordable Housing Loan repayment. • Capital Grants and Contributions decreased $7.8 million due to the one -time Federal grant (SAFETEA LU) in FY 2012 -13 for street capital improvement projects, and decreased one -time revenues such as Community Benefit Payments, public facility fees, and public art in -lieu fees. • Property Taxes increased $1.7 million, resulting from an increase to overall assessed property valuations, and the incorporation of some recapture of previous values lost via Prop 8. • Sales Tax increased $2.5 million, due to strong growth in auto sales, consumer spending, and building and construction sectors. • Other Taxes increased $0.4 million, due to increases in franchise taxes and hotel taxes. • Investment Income increased by $1.3 million due to the booking of an unrealized gain to reflect the market value of investments as of June 30, 2014 — the first positive adjustment to fair market value in five consecutive years. • Other Revenues decreased by $4.6 million primarily due to a one -time payment of $3.5 million from the Alameda County Fire Department for the Public Safety Complex in FY 2012 -13 and the decrease in total Community Benefit Payments, which are also one -time revenue. Expenses Total expenses increased $3.1 million, or 4.5% in FY 2013 -14 compared to the prior year. As operating expenditures (General Fund) were offset by revenues, the increase is primarily due to the booking of capital asset expenses. The following factors contributed to the overall increase: • General Government expenses increase is due to the replacement of fire engine and police vehicles. • Public Safety expenses increase by $0.9 million is due to increases in police contract services cost. I • Highways and Streets expenses decreased by $3.0 million as a result of large expenses in the prior year that did not reoccur in FY 2013 -14. These largest of these included $1.8 million on the Golden Gate Drive improvements, and $1.1 million for the completion of the Alamo Canal Trail in FY 2012 -13. • Health and Welfare expenses increased by $0.3 million due to increased costs related to residential garbage services. • Cultural and Leisure Services expenses decreased by $1.8 million as a result of higher costs in the prior year, related to the maintenance of City facilities, and to various recreational services (offset by revenues) such as sports and childcare programs, and City- sponsored events. • Community Development expenses decreased by $0.9 million, a relatively slight change related to routine fluctuations of in services provided and housing and planning program costs. Revenues and Expenses by Category The following chart presents the Government -Wide FY 2013 -14 revenues in a pie chart format (in thousands). Approximately 91% of the total revenue is related to four sources: 1) Property taxes, 28 %; 2) Capital Grants and Contributions, 23 %; 3) Charges for Services, 21 %; and 4) Sales tax, 19 %. This is relatively consistent with the prior year. Investment income, Other Taxes, $5,42816% Sal es Tax. $17,833,19% Property Taxes, $25,286, 28% I ntergovernmenta I, 10 Other general revenues, $12510% Charges For Services, $19,581, 21% Operating _Contributions & Grants, $1,675 , 2% Capital Grants & Contributions, $20,915, 23% Government -Wide expenses in FY 2013 -14 are shown below in the same pie chart format (in thousands). Of the $72.0 million in total expenses, Public Safety is the largest program cost, at 38% of the total. General Government, Community Development, and Culture and Leisure Services follow at 25 %, 13 %, and 12 %, respectively. Community development , $9,170,13% Culture and leisure services, $9,018,12% Health andwelfare, , $4,05816% Highways and streets , $4,305; 6% FUND FINANCIAL STATEMENTS General Dvernment, 71665,24% Public safety, $27,770,39% 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 functionsreported 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. 11 The City maintains forty-four (46) 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 four Impact Fee Funds (Public Facilities Impact Fees, Fire Impact Fees, Traffic Impact Fees, and Dublin Crossings Contribution). 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 (36) 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 FY 2006 -07, 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 over time. The City uses eight 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 eight 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 six 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 four 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. IN FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS At June 30, 2014, the City's governmental funds reported combined ending fund balances of $140.4 million, an increase of $10.5 million from the prior year. Table 3 below illustrates the net change in fund balances over the prior year for these funds. A discussion of the changes follows the table; individual and non -major funds may be found in the Supplemental. TABLE 3: GOVERNMENTAL FUND BALANCE CHANGES June 30, 2014 and 2013 GENERAL FUND The General Fund is the chief operating fund of the City. Approximately $2.5 million of the balance is non - spendable in the form of pre -paid expenses, advances to the Fire Impact Fee Fund and the PERS Side Fund, and an endowment fund related to a City owned historic cemetery. At the end of FY 2013 -14, the unassigned fund balance of the General Fund was $13.4 million, representing approximately three months of budgeted FY 2014 -15 expenditures, with total fund balance at $79.5 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 FY 2013 -14, General Fund revenues exceeded its expenditures by $12.6 million, before transfers out. Compared to the prior year, General Fund revenues came in $0.7 million higher, from $67.1 million in FY 2012 -13 to $67.9 million in FY 2013 -14. Excluding Community Benefit Payments, which are considered one -time in nature, Revenue in FY 2013 -14 came in approximately $6.7 million higher than the prior year. This is due mainly to gains in Property Taxes, Sales Taxes, which made up 37.3% and 34.3 %, respectively, of all General Fund revenues in FY 2013 -14. The adjustment to interest income, which is an annual reflection of the fair market value of City investments, also increased revenues by $1.6 million over the prior year, as the City's rebalanced portfolio experienced some gains as the market steadily recovered. Expenditures in General Fund departments totaled $55.3 million in FY 2013 -14, staying nearly $5.5 million under the final budget (not including transfers out), but coming in $2.9 million higher than actual expenditures in the prior year. This is primarily due to a $1.1 million increase in contracted services costs, and a nearly $1.1 million increase to personnel costs (salaries and benefits). 13 June 30, 2014 June 30, 2013 $ Change % Change General Fund 79,5779762 773317,129 2,260,633 2.9% Affordable Housing Fund 10,0649299 7,013,816 3,0505483 43.5% Capital Improvement Funds 41,339,587 37,433,821 3,905,766 10.4% Other Governmental Funds 9,4041895 8,100,458 133049437 16.1% Total Governmental Funds 14093869543 12998659224 1095219319 8.1% GENERAL FUND The General Fund is the chief operating fund of the City. Approximately $2.5 million of the balance is non - spendable in the form of pre -paid expenses, advances to the Fire Impact Fee Fund and the PERS Side Fund, and an endowment fund related to a City owned historic cemetery. At the end of FY 2013 -14, the unassigned fund balance of the General Fund was $13.4 million, representing approximately three months of budgeted FY 2014 -15 expenditures, with total fund balance at $79.5 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 FY 2013 -14, General Fund revenues exceeded its expenditures by $12.6 million, before transfers out. Compared to the prior year, General Fund revenues came in $0.7 million higher, from $67.1 million in FY 2012 -13 to $67.9 million in FY 2013 -14. Excluding Community Benefit Payments, which are considered one -time in nature, Revenue in FY 2013 -14 came in approximately $6.7 million higher than the prior year. This is due mainly to gains in Property Taxes, Sales Taxes, which made up 37.3% and 34.3 %, respectively, of all General Fund revenues in FY 2013 -14. The adjustment to interest income, which is an annual reflection of the fair market value of City investments, also increased revenues by $1.6 million over the prior year, as the City's rebalanced portfolio experienced some gains as the market steadily recovered. Expenditures in General Fund departments totaled $55.3 million in FY 2013 -14, staying nearly $5.5 million under the final budget (not including transfers out), but coming in $2.9 million higher than actual expenditures in the prior year. This is primarily due to a $1.1 million increase in contracted services costs, and a nearly $1.1 million increase to personnel costs (salaries and benefits). 13 Also in FY 2013 -14, The General Fund contributed $10.4 million towards capital project expenditures, via transfers out to Capital Improvement Project Funds. This is an increase of nearly $8.1 million over the prior year, and is due primarily to transfers of $4.9 million and $3.2 million for the Maintenance Yard and the Public Safety Complex, respectively. After transfers, total reserves increased nearly $2.3 million as of June 30, 2014. It is important to note that, of the total transferred out for capital projects, $10.4 million was covered by specific Committed Reserves, with the remainder coming from the Unassigned Reserves. 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 $10.0 million at June 30, 2014, an approximate increase of $3.0 million over the prior year. The change reflects $2.6 million developer fee revenue and loan principal of $0.8 million collected during the year. In addition, program expenditures were $0.5 million for the prior year, due to decreased loan activity in the fund. CAPITAL EWROVEMENTS 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 Improvement Projects; Community Improvement 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, 2014 as in the prior year, 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 FY 2012 -13 was $7.8 million, a decrease of $5.2 million from the prior year. This revenue is collected when developers process Final Maps, resulting in payments of park land dedication fees. Due to variations in project construction and acquisition timelines expenditure patterns will fluctuate. Expenses in FY 2013 -14 totaled $7.5 million in this fund, primarily for the continued design and preparation for construction of new park facilities. 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 accounts for fees collected from new development to pay for the capital cost associated with the provision of Fire Services. Total revenue collected in FY 2013 -14 was $0.2 million, approximately $0.1 million less than was collected in the prior year. In FY 2011 -12 the City collected an advance payment from the Jordan Ranch project, which 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. In addition, collections will fluctuate with the normal variations in development activity. The negative fund balance associated with this fund represents the repayment of a long term advance, including interest, made from the City General Fund. In FY 2013 -14 the amount owed to the General Fund decreased by $196,699 after accounting for interest on the outstanding balance. The total balance owed to the General Fund, as of June 30, 2014 is $0.9 million. The balance is designated as restricted due to the fact that there are legal restrictions and it is not available for general purposes. 1E11 Traffic Impact Fee Funds. These funds account for 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. Revenue collected in FY 2013 -14 totaled $4.8 million (including interest earned), approximately $2.0 million more than collected in the prior year. The City expended approximately $0.4 million in payments to reduce outstanding obligations. In addition approximately $0.9 million was transferred to the Streets Capital Project Fund, primarily for future project design expenses. This resulted in a net increase of fund balance by $3.3 million. 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, which are all Special Revenue Funds, are presented in the basic financial statements in the aggregate. Total fund balance increased $1.3 million, from $8.1 million in the prior year to $9.4 million in FY 2013 -14. 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 June 30, 2014 and 2013 June 30, 2014 June 30, 2013 $ Change % Change Function Public Safety 9025161 Transportation 4,197,427 Environmental 9609102 Parks, Culture, Arts 2,3149755 Health & Welfare 82,383 832,051 70,110 8.4% (101,245) 3,564,924 6329503 173% 891009457 8889814 719288 8.00/o 15689,450 625,305 37.0% 75,907 69476 8.5% Maintenance Districts 9489066 19049,311 (101,245) -9.6% TOTAL FUND BALANCE 994049895 891009457 193049438 1691% The full fund balances of these Special Revenue Funds are legally restricted to use under the programs indicated in the Table above, are not available for general purposes. The Transportation function shows an increase in fund balance due to Gas Tax and grant funds collected in the current year that were not fully spent, and to the collection of reimbursements for the Golden Gate Drive Streetscape project. Fund balance in the Parks, Culture and Arts function increased due to the collection of some large Public Arts In -Lieu fees, totaling $0.6 million, from various developers. The decrease in Maintenance District balances is largely due to capital expenditures for the Energy Efficiency Upgrade project. More information about these aggregated non -major funds can be found in the combining statements following the required supplementary information. 15 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 Period Ending June 30, 2014 REVENUE Taxes Licenses and permits Fines and forfeitures Use of money & property Intergovernmental Charges for service Budget Amounts Original 44,757,450 2,775,180 138,260 1,234,240 183,620 7,109,220 Final 46,698,839 4,534,883 13 8,260 934,240 183,620 7,911,841 Actual Amounts 48,534,887 5,944,985 111,715 1,496,503 191,574 9,227,796 Variance from Final Budget 1,836,048 1,410,102 (26,545) 562,263 7,954 1,315,955 Other revenue 15757,840 21154,340 213641661 2105321 Total Revenue 5799559810 6295569023 6798729121 593169098 Community development 8,076,140 9,584,011 8,983,029 600,982 EXPENDITURES General government Public safety Highways and streets 8,862,770 28,094,800 2,161,100 9,770,285 28,702,919 2,251,563 7,8885902 1,881,383 26,140,750 23562,169 21171,946 795617 Health and welfare 814,580 850,674 798,583 52,091 Culture and leisure 9,222,790 9,615,133 95306,037 309,096 Community development 8,076,140 9,584,011 8,983,029 600,982 Total expenditures 5792329180 6097749585 5592899247 594859338 OTHER FINANCING SOURCES (USES) Transfer in 30,880 30,880 46,212 155332 Transfer out (834225370) (13,042,298) (10,3685453) 25673,845 Total other financing sources (uses) (8,3919490) (1390119418) (1093229241) 29689,177 NET CHANGE IN FUND BALANCE (796679860) (1152299980) 292609633 13,4909613 Over the course of the year, revisions were made to the City budget with adjustments that generally fall into one of the following three categories: • Adjustments to carry over operating budgets from the prior year. • Adjustments to carry over capital expenditure budgets, typically in the form of transfers out to capital improvement funds, from the prior year. • Adjustments to revenue and expenditure budgets based on current economic conditions, new revenue sources, and/or operational spending needs after the original budget was adopted. 16 In the General Fund total actual revenues exceeded the final budget by $5.3 million as of June 30, 2014, due mainly to the following factors: • Sales Tax: $763,366 higher than budget. This increase was a result of overall growth across nearly all sectors. The Business and Industry sector and the Building and Construction sector (which typically trends with development activity) showed the highest gains, at 52.6% and 18.8 %, respectively. However, there were some large retroactive corrections in the first quarter of 2014, which may have continued into the second quarter. As this data is analyzed, Staff will continue to refine the FY 2014 -15 budget to take into account these one -time adjustments. • Other Taxes: $967,790 higher than budget. Property Transfer Tax came in $251,000 higher, linked to increased assessed valuations; high hotel occupancy and room rates brought Transient Occupancy Tax revenue in $237,128 over budget; and Garbage franchise fee revenue came in $480,960 above budget, due both to rate increases and expanded services. • Building Permits: $1,265,228 higher than budget. The increase is related to the acceleration of development activity that had been originally anticipated in FY 2014 -15. It is important to note that these revenues are not long -term in nature, and that long -term forecasts incorporate a significant reduction in such development - related income. Because there is a lag between the receipt of revenue and the expense of related funds to provide the services, the City continues to maintain a Service Continuity Reserve (currently at $2,410,000) to ensure that there are future funds to cover expenditures when development activity slows. • Interest Revenue: $434,545 higher than budget. This increase is due primarily to an accounting adjustment for Fair Market Value. Actual interest income increased moderately, coming in roughly $69,000 higher than budget. • Charges for Services: $1,331,531 higher than budget. More than half of the increase was due to higher Zoning fee revenue tied to the overall increase in development activity. Smaller gains occurred in revenue from Family and Sports Programs. • Community Benefit Payments: $262,648 higher than budget. The City does not typically budget for these on an ongoing basis, unless there are some large, known payments at the beginning of the year. With the accelerated development in FY 2013 -14, the City also received a number of smaller payments that were related to existing development agreements. General Fund expenditures came in $5.5 million lower than the final budget, primarily due to the following factors: • Salaries and Wages: $290,411 lower than budget. There was a high level of activity in FY 2013- 14 against capital project budgets, where Staff was allocated to sources other than the General Fund. Additionally, a number of development - related and recreational program expenditure budgets were adjusted upwards where there was a corresponding increase in revenue. • Services and Supplies: $225,894 lower than budget. This was the net result of a number of categories that were underspent during the fiscal year, including minor repairs and maintenance, trainings, printing and binding, and insurance premiums. 17 • Contracted Services: $3,499,497 lower than budget. This is primarily due to significant variances in the contracts with Alameda County for both Fire and Police services. The Fire contract included a cost of living adjustment that was ultimately considerably lower, and the budget also included a carryover of unused budget from the prior year. The Police Services contract included both a contingency amount and a prior year carryover: these two contracts combined came under budget by nearly $2,300,000. Other variances were related to development services, where budgets were adjusted upwards to match related revenue increases. It should be noted that roughly $923,000 in contracted service budgets have been carried over to FY 2014 -15, and the General Fund reserves reflect the setting aside of funds to cover these. • Contingency and Contributions: $914,470 lower than budget. This variance includes the budget carryover from the prior year of contingencies for marketing and branding, an additional Fire contingency, and the citywide contingency of $150,000. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City's investment in capital assets for its governmental activities, as of June 30, 2013, amount to $452 million (net of accumulated depreciation). These 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 Table 6 below. During FY 2013 -14, the City's investment in capital assets increased by approximately $13.3 million (3.0 %), due to primarily to additions to infrastructure and to project construction in progress. TABLE 6: SUMMARY OF INVESTMENT IN CAPITAL ASSETS June 30, 2014 and 2013 Governmental Activities June 30, 2014 June 30, 2013 $ Change % Change Land 171,301,925 166,506,225 4,795,700 2.9% Streets right of way 359425,288 35,4255288 - 0.0% Construction in Progress 32,5195388 14,9825025 17,5371363 117.1% Infrastructure 383,7005250 3835700,250 - 0.0% Buildings and Improvements 70,721,237 709721,237 - 0.0% Machinery and Equipment 89354,971 8,2265627 128,344 1.6% Sub -Total 70290239059 67995619652 2294619407 3.3% Less Accumulated Depreciation (250,364,887) (2415160,079) (9,2041808) 3.8% Total Net of Depreciation 45196589172 43894019573 13,2569599 3.0% The City continued its active Capital Improvement Program with significant progress made on a variety of community assets. A comprehensive list of all UP expenditures during FY 2013 -14 is presented in Table 7 below (this includes project costs that may not have any impact on changes to capital assets, such as repairs or planning costs). For more detailed information of capital assets balances, see Note 6 to the financial statements. TABLE 7: SUMMARY OF CAPITAL IMPROVEMENT PROJECT ACTIVITY As of June 30, 2014 PROJECT NAME FINAL BUDGET ACTUAL STATUS GENERAL IMPROVEMENTS $1596659759 $1393329394 Maintenance Yard Facility Improvements 9,027,950 7,894,349 In Progress Electronic Agenda System 308,950 64,945 In Progress Public Safety Complex 4,283,905 4,186,592 In Progress Telephone System $143,323 1209194 Complete Energy Upgrade 1,1471414 906,618 In Progress Network System Upgrade 326,332 12,539 In Progress Geographic Information System 132,656 14,665 In Progress Civic Center Modification Design & Construction 272,829 132,492 In Progress ADA Transition Plan 223400 - Annual COMMUNITY IMPROVEMENTS $869130 $229351 Tree Planting Project 1250 777 Complete Sidewalk Safety Repair Program 849880 21,574 Annual PARKS $1893839695 $993789797 Emerald Glen Recreation & Aquatic Complex 9,5203631 1,975,216 In Progress Passatempo Park 19726,586 1,534,947 In Progress Positano Neighborhood Park 2099104 13,613 In Progress Fallon Sports Park - Phase II 880,418 508,457 In Progress Jordan Ranch Neighborhood Park 386,542 135,367 In Progress Shannon Park Water Play Area 6349864 547,733 In Progress Iron Horse Parkland Acquisition and Master Plan 4,727,200 41629,000 Complete Tennis Court Resurfacing Project 298,350 34,464 In Progress STREETS $1190959322 $293829426 Accessible Pedestrian Signal Retrofit of Existing Traffic Signals 289000 23,462 In Progress Midblock Crosswalk Between Regional St. and Starwood Dr. 206,930 33,685 In Progress Citywide Signal Communications Upgrade 368,958 320,347 In Progress Citywide Street Storm Drain Condition Assessment 147,443 100,476 In Progress Dougherty Rd Improve. Sierra Lane to N. City Limit 438815215 760,826 In progress Dublin Blvd. Improve. - Sierra Court to Dublin Court 675,358 131,629 In Progress Dublin Ranch Street Light Pole Painting 29,911 Annual Slurry Seal Program 19338,899 430,480 Annual St. Patrick Way - Regional Street to Golden Gate Dr. 1,089,771 In Progress Storm Drain Bypass San Ramon Road 771,744 5,031 In Progress Storm Drain Trash Capture Project 1799019 583 In Progress Street Overlay Program 1,211,467 559,227 Annual West Dublin BART Golden Gate Drive Improvements 166,607 16,681 Com lete TOTAL $4592309906 $2591159968 1LI Debt In FY 2012 -13, the City entered into a lease financing arrangement to fund planned energy - efficient improvements through an Energy Services Performance Contract with Chevron Solutions. The total amount financed was $6.8 million, which was added to the City's long -term debt category, with an average repayment of $0.6 million annually for fourteen years. FY 2013 -14 was the first year the City began to repay this debt (see Note 7). For more detailed information of debt balances, see Note 7 to the financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The City is currently preparing its budget for FY 2015 -16, which is the second year in a two -year budget cycle. Although Property Tax and Sales Tax have shown significant gains in the last two years, contract costs and ongoing maintenance of new facilities remains a concern in the long -term perspective. As discussed in the Transmittal Letter, the current level of development revenue is not expected to continue as the City nears build -out. While that is not likely to occur in the next five years, the City is planning for that eventuality by shoring up funding now to fund future capital projects and bridge the eventual gaps related to declines in revenue. The FY 2015 -16 operational budget will likely remain largely unchanged from what was adopted in May 2014; however, increased property and sales taxes will allow the City to consider one -time contributions to capital projects, contingency reserves, or to other long -term liabilities. The next five -year forecast, which will be presented to the City Council in early 2015, will incorporate the gains experienced in FY 2014 -15, and will likely result in a balanced or surplus budget in the short term. With these things in mind, the City will continue to focus on the following primary goals: 1) Fully fund current City operations; 2) Continue funding future capital endeavors now, through the setting aside of specific reserves; and 3) Maintain adequate operating reserves over the long term. Copies of the adopted Budget and Financial Plan are available online at www.dublin.ca.gov. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the financial position of the City for all those with an interest in the 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. Pic CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2014 GOVERNMENT -WIDE FINANCIAL STATEMENTS STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES 21 This Page Left Intentionally Blank CITY OF DUBLIN STATEMENT OF NET POSITION JUNE 30, 2014 Current assets: Governmental Activities Cash and investments (Note 3) $161,1192599 Restricted cash (Note 3) 5462515 Prepaids 64,544 Accounts receivable 4,756,883 Accrued interest receivable 251,451 Total current assets 166,738,992 Noncurrent assets: Notes receivable (Note 5) 10,320,132 OPEB asset- City of Dublin (Note 11A) 35,889 Capital assets (non - depreciable) (Note 6): Land 171,301,925 Streets right of way 35,425,288 Construction in progress 32,519,388 Capital assets (depreciable) (Note 6): Infrastructure 383,7002250 Building and improvements 70,7211237 Vehicles and equipment 8,354,971 Less accumulated depreciation (250,364,887) Total capital assets 451,658,172 Total noncurrent assets 462,014,193 Total Assets 628,753,185 1_9/:`7NyyM Current liabilities: Accounts payable 12,537,672 Accrued wages and other payroll liabilities 671,121 Deposits payable 2,485,869 Contract retention payable 391,805 Other payables 307,851 Unearned revenue 495,626 Compensated absences - Due within one year (Note 1G) 685,474 Long term debt (Note 7): Due in one year 378,995 Total current liabilities 17,954,413 Noncurrent liabilities Net OPEB obligation - Dublin Regional Fire Authority (Note 11B) 303,366 Claims payables (Note 12) 195,057 Compensated absence (Note 1G) 293,774 Long -term debt (Note 7): Due in more than one year 53749,811 Total noncurrent liabilities 6,542,008 Total Liabilities 24,496,421 NET POSITION (Note 8) Net Investment in capital assets 445,529,366 Restricted for: Public safety 1,486,169 Impact fee projects 435479,012 Highways and streets 551323469 Health and welfare 102535,801 Culture and leisure 175,089 Total restricted 602808,540 Unrestricted 97,9185858 Total Net Position $604,256,764 See accompanying notes to financial statements 23 CITY OF DUBLIN STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2014 Governmental Activities: General government Public safety Highways and streets Health and welfare Culture and leisure Community development Total Governmental Activities General revenues: Taxes Property taxes Sales tax Other taxes Total Taxes Intergovernmental (unrestricted) Miscellaneous Unrestricted investment earnings (loss) Total general revenues Change in Net Position Net position: Beginning of year End of year Expenses $17,665,221 27,770,111 4,305,390 4,057,796 9,018,161 9,169,788 Program Revenues $715986,467 $199581,052 $1,674,815 $201914,994 See accompanying notes to financial statements 24 Operating Capital Charges for Grants and Contributions Services Contributions and Grants $1539544 $251089858 2,164,085 $390,532 201,663 4843801 7,397,352 3,631,344 1,179,691 2,6819731 2,753,911 104,592 8,5259390 10,393,367 $715986,467 $199581,052 $1,674,815 $201914,994 See accompanying notes to financial statements 24 Total Program Revenues Net (Expense) Revenue and Changes in Net Position Governmental Activities $2,262,402 ($1554025819) 2,756,280 (259013,831) 7,8825153 33576,763 7,492,766 3,434,970 11,383,893 2,365,732 10,393,367 152239579 $421170,861 (29,815,606) 25,286,308 17,833,314 5,427,627 48,547,249 191,574 125,211 853,147 49,717,181 19,901,575 584,355,189 $604,256,764 25 This Page Left Intentionally Blank CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2014 FUND FINANCIAL STATEMENTS The funds described below were determined to be Major Funds by the City in Fiscal Year 2013 -2014. 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. The Dublin Crossing Contribution Capital Projects Fund — accounts for community benefit payments specific to the Dublin Crossings Project, separate from any developer impact fees generated by the project. 27 ASSETS Cash and investments (Note 3) Prepaids Accounts receivable Accrued interest receivable Notes receivable (Note 5) Due from other funds (Note 413) Advances to ISF PERS Side Fund (Note 4C) Advances to other funds (Note 4C) Total Assets LIABILITIES Accounts payable Accrued wages and other payroll liabilities Deposits payable Contract retention payable Other payables Unearned revenue Due to other funds (Note 413) Advances from other funds (Note 4C) Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue - loans receivable Total Deferred Inflows of Resources FUND BALANCES (DEFICITS) (Note 8) Non Spendable Restricted Committed Assigned Unassigned Total Fund Balances (Deficits) CITY OF DUBLIN GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2014 $991509242 $12,305 671,121 294669209 11,808 307,851 495,626 $3815443 $13,929 $6355641 3,317 245033 13,091,049 24,113 381,443 17,246 659,674 2,465,678 500,000 34,124,267 29,259,333 13,228,484 10,320,131 10,320,131 10,064,299 15,922 79,577,762 10,064,299 155922 Wo 1 4,966 4,966 Total Liabilities, Deferred Inflows of Resources and Fund Balances $92,6685811 $2054085543 $3975365 $18,100 $664,640 See accompanying notes to financial statements Capital Projects Funds Special Revenue Fund General Community Affordable Improvements Improvements Parks General Housing Projects Projects Projects $8259735398 $10,087,661 $392,697 $18,100 $664,640 27,080 3,6323475 750 45668 251,451 10,320,132 3,601,464 1,281,035 901,908 $9256685811 $20,408,543 $397,365 $18,100 $664,640 $991509242 $12,305 671,121 294669209 11,808 307,851 495,626 $3815443 $13,929 $6355641 3,317 245033 13,091,049 24,113 381,443 17,246 659,674 2,465,678 500,000 34,124,267 29,259,333 13,228,484 10,320,131 10,320,131 10,064,299 15,922 79,577,762 10,064,299 155922 Wo 1 4,966 4,966 Total Liabilities, Deferred Inflows of Resources and Fund Balances $92,6685811 $2054085543 $3975365 $18,100 $664,640 See accompanying notes to financial statements Capital Projects Funds Public Fire Traffic Dublin Streets Facilities Impact Impact Crossing Projects hnpact Fees Fees Fees Contribution $304,950 $32,4565053 $304,950 $32,456,053 $1358849074 290,454 $50,075 Other Total Governmental Governmental Funds Funds $9,548,796 $150,380,444 27,080 7185885 456473232 251,451 10,320,132 3,601,464 1,281,035 901,908 $14,174,528 $50,075 $10,267,681 $171,410,746 $321,890 $5,449 $1,268,810 $405,038 $12,1943747 671,121 86 7,766 2,485,869 45561 13,575 45,486 307,851 495,626 3,1655057 436,407 3,601,464 $901,908 901,908 326,451 3,170,506 901,908 15268,896 862,786 20,704,072 10,320,131 10,320,131 29 2,465,678 29,285,547 1299055632 $50,075 9,404,895 62,210,448 34,146,009 29,259,333 (21,501) (901,908) 121305,075 (21,501) 29,2855547 (9015908) 12,9059632 50,075 954049895 140,386,543 $3049950 $32,4569053 $149174,528 $50,075 $10,26701 $17194109746 29 This Page Left Intentionally Blank CITY OF DUBLIN Reconciliation of the GOVERNMENTAL FUNDS -- BALANCE SHEET with the STATEMENT OF NET POSITION JUNE 30, 2014 Total fund balances reported on the governmental funds balance sheet Amounts reported for Governmental Activities in the Statement of Net Position 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. ALLOCATION OF INTERNAL SERVICE FUND NET POSITION 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 Position Cash and investments Restricted cash Prepaid items Accounts receivable Capital assets Accounts payable and accruals Contract retentions payable Interfund balance Capital lease $10,739,155 546,515 37,464 109,651 51,659,233 (342,925) (346,319) (1,281,035) (6,1289806) 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: OPEB asset - City of Dublin 35,889 OPEB obligation - Dublin Regional Fire Authority (303,366) Compensated absences (979,248) Non - current portion of general liability claims (1957057) NET POSITION OF GOVERNMENTAL ACTIVITIES See accompanying notes to financial statements 01 $140,386,543 39959985939 54,992,933 10,320,131 (1,441,782) $604,256,764 CITY OF DUBLIN GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2014 Special Revenue Fund Affordable General Housing REVENUES Property taxes $25,286,307 Sales tax 17,820,966 Other taxes 5,4275628 Intergovernmental 191,574 Licenses and permits 5,944,985 Charges for service 9,227,782 $49,972 Interest 788,413 60,982 Use of property 708,090 883,694 Fines and forfeitures 111,715 Developer fees 236225681 Other revenue 213645661 Special assessments Total Revenues 67,872,121 35617,329 EXPENDITURES Current: General Government 7,888,902 12,244 Public safety 269140,750 Highways and streets 2,1717946 Health and welfare 798,583 561,202 Cultural and leisure 9,306,037 Community development 85983,029 Capital outlay: General improvements Community improvements Culture and leisure Streets Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in (Note 4A) Transfers (out) (Note 4A) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES BEGINNING FUND BALANCES (DEFICIT) ENDING FUND BALANCES (DEFICIT) Capital Projects Funds General Community Improvements Improvements Parks Projects Projects Projects $13,316,472 $21,497 $9,373,830 559289,247 5735446 139316,472 219497 99373,830 12,5825874 3,0439883 (13,316,472) (21,497) (9,373,830) 46,212 69600 (109368,453) 13,332,394 225351 9,378,796 (10,322,241) 6,600 13,332,394 22,351 95378,796 252609633 3,050,483 775317,129 7,0133816 15,922 854 4,966 $799577,762 $10,064,299 $15,922 $854 $45966 See accompanying notes to financial statements 32 Streets Facilities Projects Impact Fees $2,403,926 Projects Funds Fire Traffic Dublin Impact Impact Crossing Fees Fees Contribution Other Governmental Funds Total Governmental Funds $161,947 $25,4489254 520,539 18,3419505 4,965 1,2359782 5,427,628 213825585 2,574,159 3,019,849 5,944,985 330495094 12,326,848 $1495426 $57,200 $76 45,537 1,101,634 1969699 1,591,784 211,886 323,601 736145380 $201,664 4,716,876 49,999 551,468 15,757,068 3489337 2,712,998 190259239 1,0255239 7,763,806 201,664 4,774,076 50,075 8,2965632 92,575,703 77,827 510,361 8,4119507 4,965 1,2359782 275381,497 8705530 3,0429476 3,019,849 4,3793634 43,692 95349,729 8,181 111,524 99102,734 13,316,472 21,497 9,451,657 2,403,926 2,403,926 77,827 49965 518,542 592819377 86,8615129 (2,4035926) 7,685,979 1969699 4,255,534 50,075 3,015,255 59714,574 25382,425 23,490 25,1929268 (7,3909307) (892,455) (1,734,308) (20,3859523) 25382,425 (753905307) (8929455) (1,710,818) 4,806,745 (215501) 295,672 196,699 353639079 503075 1,304,437 1095219319 28,989,875 (1,0985607) 9,5429553 8,100,458 12938653224 ($21,501) $2992853547 ($901,908) $12,905,632 $503075 $9,404,895 $140,386,543 33 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, 2014 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 Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis. NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $10,521,319 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. Capitalized expenditures are therefore added back to fund balance 189327,702 Depreciation expense is deducted from the fund balance. The amount excludes the depreciation of $2,448,580 for Internal Service Funds (79463,325) 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): Unearned revenue (454,025) Compensated absences (825590) Claims liability 76,857 OPEB asset - City of Dublin 185172 OPEB obligation - Dublin Regional Fire Authority (13,067) 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 governmental activities, because they service those activities. Change in Net Assets - All Internal Service Funds (1,029,468) CHANGE IN NET POSITIONS OF GOVERNMENTAL ACTIVITIES $19,901,575 See accompanying notes to financial statements 011 CITY OF DUBLIN GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE REVENUES Property taxes Sales tax Other taxes Intergovernmental Licenses and permits Charges for services Interest Use of property Fines and forfeitures Other revenue Total Revenues 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 (Note 4A) Transfers (out) (Note 4A) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ►It I► 1►1� C ��f�� BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 305 2014 Budgeted Amounts Original $24,153,050 16,271,400 4,333,000 183,620 2,775,180 7,109,220 652,970 581,270 138,260 1,757,840 57,955,810 8,862,770 28,094,800 2,161,100 814,580 9,222,790 8,076,140 Final $25,169,054 17,069,948 4,459,837 183,620 4,534,883 7,911,841 352,970 581,270 138,260 2,154,340 62,556,023 9,770,285 28,702,919 2,251,563 850,674 9,615,133 9,584,011 Actual Amounts $25,286,307 17,820,966 5,427,628 191,574 5,944,985 9,227,782 788,413 708,090 111,715 2,364,661 67,872,121 7,888,902 26,140,750 2,171,946 798,583 9,306,037 8,983,029 Variance with Final Budget Positive (Negative) $117,253 751,018 967,791 7,954 1,410,102 1,315,941 435,443 126,820 (26,545) 210,321 5,316,098 1,881,383 2,562,169 79,617 52,091 309,096 600,982 57,232,180 60,774,585 55,289,247 5,485,338 7233630 19781,438 12,582,874 10, 801,436 30,880 (8,422,370) (8,391,490) 46,212 (139057,630) (139011,418) ($7,6675860) ($11,229,980) See accompanying notes to financial statements 35 46,212 (10,3683453) 2,689,177 (10,3225241) 256899177 2,260,633 77,317,129 $79,5775762 $13,4909613 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, 2014 REVENUES: Interest Loan repayment Charges for services Developer fees Total Revenues EXPENDITURES: Current: General government Health and welfare Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in (Note 4A) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Budgeted Amounts Original $90,750 47,600 787.750 Final $90,750 47,600 2,500,000 Actual Amounts $60,982 883,694 49,972 2,622,681 Variance with Final Budget Positive (Negative) ($29,768) 883,694 2,372 122,681 9263100 2,638,350 39617,329 978,979 2%550 29,550 129244 173306 643,590 822,893 5619202 261,691 673,140 852,443 5739446 278,997 252,960 1,785,907 390439883 152575976 600 6,600 600 63600 65600 6,600 $259,560 $1,7925507 See accompanying notes to financial statements 9T 35050,483 $1,2573976 7,013,816 $1030645299 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2014 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. UFA CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2014 Governmental Activities - lnternal Service Funds ASSETS Current Assets: Cash and investments (Note 3) $10,739,155 Restricted cash (Note 3) 546,515 Prepaid items 37,464 Accounts receivable 109,651 Total current assets 11,4325785 Noncurrent Assets: Capital assets (Note 6): Land 103774,792 Construction in progress 4,929,720 Building and improvements 62,115,075 Vehicles and equipment 63646,353 Less: accumulated depreciation (325806,707) Total noncurrent assets 51,659,233 Total Assets 63,092,018 LIABILITIES Current Liabilities: Accounts payable and accruals 3425925 Contract retentions payable 346,319 Capital lease (Note 7) 378,995 Total current liabilities 1,068,239 Non - Current Liabilities: Capital lease (Note 7) 59749,811 Advances from other funds (Note 4C) 1,2815035 Total Liabilities 8,099,085 NET POSITION (Note 8) Net investment in capital assets 51,659,233 Unrestricted 3,333,700 Total Net Position $549992,933 See accompanying notes to financial statements CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2014 Governmental Activities - Internal Service Funds OPERATING REVENUES Charges for services $4,193,153 Other revenue 511,696 Total Operating Revenues 4,704,849 OPERATING EXPENSES Supplies and services 986,027 OPEB expenses 1,741,256 Depreciation 2,448,580 Interest and fiscal charges 172,949 Total Operating Expenses 5,348,812 Operating Loss (643,963) NONOPERATING REVENUES Interest income 64,734 Gain from sales of property 28,489 Total Nonoperating Revenues 93,223 Loss Before Contributions and Transfers (5502740) Contributions 49328,017 Transfer out (Note 4A) (4,806,745) Change in net position (1,029,468) Net Position - Beginning of year 56,022,401 Net Position - Ending of year $54,992,933 See accompanying notes to financial statements 39 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2014 Governmental Activities - Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from other funds $4,220,317 Payments to suppliers and service providers (2,8059090) Otherrevenues 5115696 Net cash flows from operating activities 15926,923 CASH FLOWS FROM NONCAPTTAL FINANCING ACTIVITIES Contributions from other funds 493285017 Payments to other funds (591689478) Cash Flows from Noncapital Financing Activities (8409461) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest paid on capital lease (172,949) Capital lease repayment (6279018) Purchase of capital assets (458879396) Proceeds from sales of capital assets 285489 Cash Flows from Capital and Related Financing Activities (5,658,874) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 64,734 Cash Flows from Investing Activities 64,734 Net Cash Flows (4,507,678) Cash and investments at beginning of year 15,793,348 Cash and investments at end of year $115285,670 Reconciliation of operating loss to net cash provided by operating activities: Operating loss ($643 963) Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 2,448,580 Interest and fiscal charges 1725949 Change in assets and liabilities: Accounts receivable 8,421 Prepaid items 49401 Accounts payable and accruals (639465) Net cash flows from operating activities $1,926,923 See accompanying notes to financial statements .o CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2014 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. C11 CITY OF DUBLIN FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2014 Agency Fund ASSETS Cash and investments (Note 3) $256539168 Accounts receivable 7,825 Due from trustee 1,800 Total Assets $29662,793 LIABILITIES Accounts payable $29475 Due to City 1,800 Due to trustee 2,650,400 Due to bondholders 8,118 Total Liabilities $2,6625793 See accompanying notes to financial statements 42 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 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, 2014 was 49,890. This figure includes prisoners housed at the Alameda County Sheriffs Department Santa Rita Jail and at the Federal Correctional Institute. The City of Dublin was ranked based on total population at #164 out of 482 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, 2014, the City's staff was comprised of 91.5 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 125.4 contract employees provide a variety of municipal services from City facilities. As of June 30, 2014, the City had approximately 159 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 Position 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. ERR] CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 1 - 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 fund. 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 funds 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 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. CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 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 Dublin Crossing Contribution Capital Projects Fund — accounts for community benefit payments specific to the Dublin Crossings Project, separate from any developer impact fees generated by the project. The City also reports the following fund types: Internal Service Funds — Account for replacement of assets and internal charges collected for the purpose of funding retirement plan side -fund obligations, post- retirement healthcare activities, and the financing and funding for the energy efficiency capital lease project. 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 Assessment District is an Agency Fund, which is used 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 Agency 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, Schaefer Ranch, Fallon Village Annex/Jordan Ranch, and Fallon Crossing Geological Hazard Abatement Districts (GHAD) are Agency 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 respective Subdivisions. M CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis ofAccounting 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, equal value in exchange, inc taxes is recognized in the entitlements, and donations satisfied. in which the City gives or receives value without directly receiving or giving lude taxes, grants, entitlements, and donations. On the accrual basis, revenue from fiscal year for which the taxes are levied or assessed. Revenues from grants, are recognized in the fiscal year in which all eligibility requirements have been 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. Certain indirect costs are included in program expenses reported for individual functions and activities. 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. CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 1- 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 I, and become delinquent after December 10 and April 10, respectively. Taxes become a lien on the property effective January 1 of the preceding year. F. 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, 2014: Beginning Balance Additions Payments Ending Balance Current Portion Compensated General Leave heave Total $878,421 921,528 $18,237 39,515 $896,658 961,043 (854,775) (23,678) (8785453) $945,174 $34,074 $979,248 $661,622 $235852 $685,474 47 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid costs in both government -wide and fund financial statements, using the consumption method. Prepaid costs in governmental funds are equally offset with nonspendable fund balance to indicate they do not constitute resources available for appropriation. Prepaids in governmental funds are treated using the consumption method, where the prepaid expenditure is recognized in the period in which the service is provided or the item is put into use. L 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. J. New Funds and Closed Funds In fiscal year 2013 -2014, the City created the following new funds: The Dublin Crossing Contribution Capital Projects Fund — This fund accounts for community benefit payments specific to the Dublin Crossings Project, separate from any developer impact fees generated by the project. Citywide Events Fund (Customer Service) - Established to account for event ticket sales and donations, to be spent on special events citywide. In fiscal year 2013 -2014, the City consolidated some funds for financial statements presentation. The Measure D Recycling Fund, Garbage Service Fund, and Local Recycling Fund were combined to form the Garbage/Recycling Fund. The Storm Water Management Fund, Dublin/Dougherty Storm Water Management Fund and Village Parkway Storm Water Management Fund were combined to form the Storm Water Management Fund. The Cable TV Facilities Fund, Noise Mitigation Fund and the newly established Citywide Events (Customer Service) Fund were combined to form the Miscellaneous Revenue Fund. K. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position or balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense /expenditure) until then. In addition to liabilities, the statement of financial position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 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 1. The operating budget includes proposed expenditures and the means of financing them. ➢ The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution. ➢ The City Manager is authorized to transfer budgeted amounts between line items, provided that the transfer is within the same fund, regardless of the specific department activity. This include the authority to transfer from the General Fund budgeted contingency amounts that are approved by the City Council during the budget adoption. The City Manager is authorized to increase revenue and expenditure budget for various departmental functions, when the net budget impact is zero. ➢ 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. ➢ The City Manager is authorized to increase the appropriations for the following fiscal year in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to the year -end, but are expected to be expended in the next year consistent with the original purpose. ➢ 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. NOTE 3 — CASH AND INVESTMENTS 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 value 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. CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 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 $16191189701 Restricted cash and investments 5465515 Total City cash and investments 161,6659216 Fiduciary Funds (separate statement): Cash and investments 236545066 Total Fiduciary Funds cash and investments 29654,066 Total cash and investments $164,3195282 Cash and investments as of June 30, 2014, consist of the following: Cash on hand $35354 Deposits with financial institutions 253039025 Investments 1629012,903 Total cash and investments $16453195282 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. 50 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 3 - CASH AND INVESTMENTS (Continued) C. D. 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. Interest Rate Risk Maximum Investment In One Issuer 20% 20% of Portfolio No Limit 40% No Limit 20% of Portfolio No Limit No Limit 5% 5% 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 Asset- Backed Securities U.S. Treasury Notes Medium -Term Notes U.S. Government Agency Securities Local Agency Investment Fund California Asset Management Program Money Market Funds Total Investments $75031,761 Minimum Maximum 8,010,704 $5,993,203 Maximum Credit Percentage Authorized Investment Type Maturity Quality of Portfolio Negotiable Certificates of Deposit 5 years AA/A -1 30% Bankers' Acceptances 180 days A -1 40% U.S. Treasury Bills and Notes 5 years N/A No Limit U.S. Government Agency Securities 5 years N/A 25% for callable California Asset Management Program N/A N/A No Limit Commercial Paper 270 days A -1 25% Time Certificates of Deposit 1 year N/A 10% State Local Agency Investment Fund N/A N/A 75% Asset - Backed Securities N/A AA 20% Medium Term Notes 5 years A 30% Money Market Funds N/A AAA 20% Interest Rate Risk Maximum Investment In One Issuer 20% 20% of Portfolio No Limit 40% No Limit 20% of Portfolio No Limit No Limit 5% 5% 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 Asset- Backed Securities U.S. Treasury Notes Medium -Term Notes U.S. Government Agency Securities Local Agency Investment Fund California Asset Management Program Money Market Funds Total Investments $869303,595 $34,208,023 $41,501,285 $1629012,903 51 $75031,761 $7,031,761 $10,363,477 8,010,704 $5,993,203 2453673384 8,312,025 25044,584 109627,033 20,9833642 145041,261 1791205974 24,881,049 56,043,284 4997329909 4997323909 39500,510 39500,510 3539413 353,413 $869303,595 $34,208,023 $41,501,285 $1629012,903 51 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 3 - CASH AND INVESTMENTS (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 LAIF 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 LAY, 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, 2014, these investments matured in an average of 232 days. The City is a 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, 2014, the fair value approximated is the City's cost. At June 30, 2014, these investments have an average maturity of 41 days. The City's investments include Asset - Backed Securities in the amount of $7,031,761 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, 2014 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, 2014, Investment Type Asset - Backed Securities U.S. Treasury Notes Medium -Term Notes California Asset Management Program U.S. Government Agency Securities Money Market Funds Totals Not rated: State Local Agency Investment Fund Total Investments $7,031,761 $24,367,384 3,500,510 56,043,284 353,413 A+ $20,9835642 $10,885,684 $80,410,668 $20,983,642 52 Total $7,031,761 24,367,384 20,983,642 3,500,510 56,043,284 353,413 112,279,994 49,732,909 $1622012,903 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 3 - CASH AND INVESTMENTS (Continued) F. Concentration of Credit Risk Included 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 US Government agency securities $17,957,343 Federal Home Loan Bank US Government agency securities 175044,023 Federal Home Loan Mortgage Corporation US Government agency securities 14,9559178 NOTE 4 - INTERFUND TRANSACTIONS A. Transfers Between Funds Transfers between funds during the fiscal year ended June 30, 2014 were as follows: Amount Fund Making Transfer Fund Receiving Transfers Transferred General Fund General Improvements Projects Capital Projects Fund $822912019 (A) Community Improvements Projects Capital Projects Fund 22,351 (A) Parks Capital Projects Fund 199543025 (A) Streets Projects Capital Projects Fund 101,058 (A) 10,368,453 Capital Projects Funds: Public Facilities Impact Fees Parks Projects Capital Projects Fund 7,3902307 (A) Traffic Impact Fees Fund Streets Projects Capital Projects Fund 8922455 (A) 8,282,762 Special Revenue Funds: Non -Major Funds General Improvements Projects Capital Projects Fund 2715504 (B) Affordable Housing Special Revenue Fund 6,600 (C) Streets Projects Capital Projects Fund 052,038 (A) Parks Projects Capital Projects Fund 34,464 (A) Federal Transportation 23,490 (D) General Fund 469212 (E) (A) To fund capital project expenditures (B) To reimburse General Fund staffing/administrative costs for the project (C) To reimburse Affordable Housing Fund staffingladministrative costs for the project (D) To reimburse Alameda County Transportation Improvement Authority sales tax (E) To fund General Fund. Correction from incorrectly recording funds in ACTC Fund in prior year 53 1,734,308 Internal Service Funds: Building Replacement Internal Service Fund General Improvements Projects Capital Projects Fund 41298,673 (A) Equipment Replacement Internal Service Fund Streets Projects Capital Projects fund 369874 (A) Equipment Replacement Internal Service Fund General Improvements Projects Capital Projects Fund 134,859 (A) Energy Efficiency Fund General Improvements Projects Capital Projects Fund 336,339 (A) 4,806,745 25,192,268 (A) To fund capital project expenditures (B) To reimburse General Fund staffing/administrative costs for the project (C) To reimburse Affordable Housing Fund staffingladministrative costs for the project (D) To reimburse Alameda County Transportation Improvement Authority sales tax (E) To fund General Fund. Correction from incorrectly recording funds in ACTC Fund in prior year 53 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 4 - INTERFUND TRANSACTIONS (Continued) B. Current Interfund 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, 2014, the following funds have balances due to the General Fund: Due from other funds General Fund Due to other funds Public Facilities Impact Fees Capital Project Fund $391659057 Non -Major Special Revenue Funds 436,407 Total $35601,464 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 of 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 Ca1PERS for the City's Side Fund Obligation. The Side Fund was created in 2005 when Ca1PERS 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 CalPERS Employer Contribution Rate, the City was scheduled to pay 4.319% of payroll for the next 17 years to eliminate the current side fund obligation. The benefit of prepayment resulted in reduction of the Employer Contribution rate in fiscal year 2007 -2008 from 15.894% to 11.575 %. The advance from General Fund is 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, 2014: Advances from other funds General Fund Fire Impact Fees Capital Projects Fund $901,908 PERS Side Fund Internal Service Fund 1,281,035 Total $2,182,943 54 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 5 — NOTES RECEIVABLE The following table summarizes the notes receivable outstanding as of June 30, 2014: First Time Homebuyer Loan Program $1,809,383 Eden (Wicklow) Square Senior Affordable Housing 2,7545535 Eden (Emerald Vista) Construction Loan - Family Housing 4,1291598 Eden (Emerald Vista) Construction Loan - Senior Housing 1,626,616 Total $10,320,132 Revolving Home Loans - As part of the City of Dublin First Time Homebuyer Loan Program (FTHLP), the City provides financial assistance, in the form of a deferred loan. 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, 2014 was $1,809,383. As of June 30, 2014, there were no loans in default. M1 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 5 - NOTES RECEIVABLE (Continued) Details of the Revolving Home Loans as of June 30, 2014 were as follows: LOAN # #07 -01 #07 -03 #07 -04 #07 -07 #07 -09 #07 -10 #07 -11 #07 -12 #07 -14 #07 -15 #07 -16 #07 -18 #07 -20 #08 -01 #08 -03 #08 -05 #08 -06 #08 -07 #08 -08 #09 -01 #09 -02 #10 -02 #10 -03 #11 -01 #11 -02 #11 -03 #11 -04 # 11 -05 #11 -06 #11 -07 #11 -08 #11 -09 #11 -10 #11 -11 #11 -12 #12 -01 #12 -02 #12 -03 #12-04 #12 -05 #12-06 #12 -07 #12 -08 #12 -09 #13-01 #13 -02 #13 -03 #13 -04 #13 -05 TOTAL LOAN DATE 2/16/2007 3/30/2007 10/30/2007 9/28/2007 8/28/2007 8/28/2007 10/10/2007 2/16/2007 10/1/2007 12/3/2007 12/28/2007 2/29/2008 5/30/2008 8/15/2008 10/17/2008 1/29/2009 2/11/2009 4/9/2009 6/30/2009 8/3/2009 9/28/2009 1/24/2011 5/5/2011 7/7/2011 10/14/2011 11/21/2011 12/2/2011 12/28/2011 1/13/2012 1/13/2012 1/19/2012 1/30/2012 2/15/2012 4/3/2012 6/27/2012 10/30/2012 1/31/2013 3/22/2013 4/12/2013 4/26/2013 6/12/2013 5/15/2013 5/10/2013 4/25/2013 7/31/2013 8/30/2013 10/2/2013 12/9/2013 3/7/2014 ORIGINAL LOAN AMOUNT $39,915 60,039 50,000 42,886 26,036 49,536 38,141 33,051 19,610 24,536 8,000 24,170 19,175 25,377 33,750 22,619 55,404 27,425 39,576 33,000 36,595 40,000 26,700 30,000 29,999 30,839 26,025 35,249 29,999 36,415 36,682 35,249 36,671 38,586 29,999 29,999 40,000 36,749 36,749 35,249 31,499 35,249 35,249 36,749 40,000 40,000 40,000 40,000 36,888 ACCRUED INTEREST $10,296 15,245 11,670 8,640 6,234 11,861 8,975 8,525 4,632 5,647 1,822 5,359 4,084 5,217 6,735 4,288 10,434 5,015 6,930 4,512 6,088 4,802 2,947 3,130 2,845 2,812 2,346 3,093 2,586 3,139 3,141 2,978 3,045 3,030 2,112 1,752 1,979 1,642 1,568 1,457 1,160 1,393 1,409 1,522 1,285 1,170 1,043 782 410 REPAYMENT OF PRINCIPAL AND INTEREST ($51,526) (37,512) LOAN BALANCE $50,211 75,284 61,670 32,270 61,397 47,116 41,576 24,242 30,183 9,822 29,529 23,259 30,594 40,485 26,907 65,838 32,440 46,506 42,683 44,802 29,647 33,130 32,844 33,651 28,371 38,342 32,585 39,554 39,823 38,227 39,716 41,616 32,111 3 1,751 41,979 38,391 38,317 36,706 32,659 36,642 36,658 38,271 41,285 41,170 41,043 40,782 37,298 $13685,634 $212,787 ($89,038) $1,809,383 got CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 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, 2014 was $2,754,535. 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, 2014, the outstanding amounts are $4,129,598 or the Family Project and $1,626,616 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 $5,000 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. 57 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 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. Current Year Activities Capital asset activity during the fiscal year were as follows: Governmental activities Capital assets not being depreciated: Land Streets Right of Way Construction in Progress Total capital assets not being depreciated Capital assets being depreciated: hifrastructure 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 June 30, 2013 Additions $166,5062225 35,425,288 14,982,025 $222719,824 216,913,538 222719,824 3835700,250 70,721,237 Retirements Transfers $4,795,700 Balance at June 30, 2014 $171,3012925 35,425,288 (52182,461) 32,519,388 (3862761) 239,246,601 383,700,250 70,721,237 8,226,627 448,680 ($707,097) 386,761 8,354,971 4622648,114 448,680 (707,097) 386,761 462,776,458 (204,874,162) (29,979,673) (720577508) (2,382,165) (6,3062244) (4722232) 707,097 (2412160,079) (9,911,905) 707,097 221488,035 (9,463,225) $4381401,573 $13,256,599 , 386,761 (211,931,670) (32,361,838) (690712379) (250,364,887) 212,411,571 $451,658,172 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 6 — CAPITAL ASSETS (Continued) B. Project Commitments At June 30, 2014, the City had outstanding commitments with contractors for the following projects: Project Commitment Energy Efficient Upgrade $304,400 Facility Construction 675,451 Facility Modification 13,080 Park Construction 756,706 Park Improvements 99,954 Street Improvements 3693134 Street Repair/Maintenance 88,078 Street Signal Improvements 32,095 Technology Upgrade 2639591 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 General government Public safety Highways and streets Culture and leisure Community development Total depreciation expense NOTE 7 — LONG TERM DEBT A. Current Year Transactions and Balances GOVERNMENTAL ACTIVITY DEBT 2012 Chevron Energy Capital Lease Balance at July 1, 2013 ... 10,023 913,313 7,926 150,955 $9,911,905 Retirements $61755,824 ($627,018) Balance at June 30, 2014 $6,128,806 Total Governmental Activity Debt $6,755,824 ($6273018) $6,1283806 59 Due Within One Year $378,995 $378,995 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 7 — LONG TERM DEBT (Continued) B. 2012 Chevron Energy Capital Lease 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 was estimated to be $7,430,976. City expects the full cost of improvements including interest can be offset through estimated energy savings. The project was funded through a combination of Lease Financing and Internal Service Fund reserves. The total amount financed by the bank was approximately $6,755,824, with interest rate fixed at 2.56% which occurred on October 1, 2012. The first payment was made on September 28, 2013. 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 fully owned by the City. 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 $578,704 per year. The City anticipates that energy savings and incentives are projected to fully offset these costs. C. Debt Service Requirements Governmental Activities: Capital Lease Year ending June 30 Principal Interest 2015 $378,995 $1563897 2016 403,459 1479195 2017 429,110 136,867 2018 455,999 1255881 2019 396,728 1149208 2020 -2024 29376,768 4039881 2025 -2029 1,687,747 883157 Total $6,1289806 $1,1739086 NOTE 8 — NET POSITION AND FUND BALANCES A. Net Position Net Position is the excess of all the City's assets and deferred outflow of resources over all its liabilities and deferred inflow of resources, 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:. Net Investment in Capital Assets, describes the portion of Net Position which is represented by the current net book value of the City's capital assets. zu CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 8 — NET POSITION AND FUND BALANCES (Continued) Restricted describes the portion of Net Position 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 Position which is not restricted to use. Be 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 fund balances have constraints imposed by resolution of the City Council which may be altered only by formal action of the City Council to establish, modify, or rescind a fund balance commitment. 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. Through a council resolution, the City Council has designated the City Manager to determine the amount of assigned Fund balance. 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" negative fund balance represents $99,765 associated equivalent to the unrealized loss on investments and $13,328,249 based on goals to accommodate general cash flow. M CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE S - NET POSITION AND FUND BALANCES (Continued) Detailed classifications of the City's Fund Balances, as of June 30, 2014, are stated below: Non- Spendable: Prepaid Expenses $27,080 Cemetery Endowment 60,000 Long -Term Advance to Fire Impact Fee Fund 901,908 Long -Term Advance to PERS Side Fund 1,2815035 SubTotal Non - Spendable Fund Balance Restricted for: Public Safety Programs Street Maintenance and Construction Health and Welfare Programs Heritage Park Maintenance Recycling Programs Impact Fee Capital Projects Capital Improvement Projects Housing Sub Total Restricted Fund Balance Committed to: Economic Stability Downtown Public Improvements Open Space Funding Affordable Housing Emerald Glen Aquatic Center Additional Scope Emergency Communications Fire Services OPEB Innovations and New Opportunities Maintenance Facility Historic Park Schaefer Ranch Civic Center Expansion Shannon Center Parking Lot Advance to Public Facility Fee It City/School Projects Non - Streets CIP Commitments One Time Imitative Sub Total Committed Fund Balance Assigned to: Employees Accrued Leave Operating Carryovers CIP Carryovers Civic Center Renovation Contribution to Internal Service Fund Catastrophic Loss and Recovery Service Continuity Obligations Pension and Post Employment Benefits Fiscally Responsible Adjustment Sub Total Assigned Fund Balance Unassigned Fund Balance Fund Balance Deficits Unrealized Gain on Investments/(loss) Cash Flow Per City Policy Total Fund Balance (Deficit) 2,270,023 500,000 $10,064,299 500,000 10,064,299 6,000,000 1,000,000 45,975 1,000,000 3,000,000 741,000 8,196,000 1,372,785 1,133,601 2,391,538 259,076 775,000 3,500,000 235,873 3,132,011 1,341,408 34,124,267 979,247 1,486,299 1,083,752 2,000,000 500,000 10,608,185 2,410,000 9,866,848 325,002 29,259,333 (99,765) 13,328,249 $15,922 $854 $4,966 15,922 854 4,966 ($21,501) $295285,547 29,285,547 $27,080 60,000 901,908 1.281.035 2,270,023 $126159952 19615,952 4,968,221 4,9682221 291,975 291,975 500,000 3899081 389,081 $122905,632 $50,075 42,241,254 2,139,666 2,139,666 102064,299 12 905 632 50,075 9,404,895 62,210,448 6,000,000 1,021,742 45,975 1,00%000 3,00%000 741,000 8,196,000 1,372,785 1,133,601 2,391,538 259,076 775,000 3,50 %000 235,873 3,132,011 1,341,408 34,146,009 979,247 1,486,299 1,083,752 2,00 %000 50 %000 1 %608,185 2,410,000 9,866,848 325,002 29,259,333 ($901,908) (923,409) (99,765) 13,328,249 13,228,484 (21,501) Major Funds Affordable General Community Public Facilities Fire Impact Traffic Impact Dublin General Housing Improvement Improvement Parks Streets Impact Fees Fees Fees Crossing Non -Major Fund Fund Projects $29,285,547 $901908 $12,905,632 Projects $9,404,895 Projects Proiects Fund Fund Fund Contribution Funds Total Non- Spendable: Prepaid Expenses $27,080 Cemetery Endowment 60,000 Long -Term Advance to Fire Impact Fee Fund 901,908 Long -Term Advance to PERS Side Fund 1,2815035 SubTotal Non - Spendable Fund Balance Restricted for: Public Safety Programs Street Maintenance and Construction Health and Welfare Programs Heritage Park Maintenance Recycling Programs Impact Fee Capital Projects Capital Improvement Projects Housing Sub Total Restricted Fund Balance Committed to: Economic Stability Downtown Public Improvements Open Space Funding Affordable Housing Emerald Glen Aquatic Center Additional Scope Emergency Communications Fire Services OPEB Innovations and New Opportunities Maintenance Facility Historic Park Schaefer Ranch Civic Center Expansion Shannon Center Parking Lot Advance to Public Facility Fee It City/School Projects Non - Streets CIP Commitments One Time Imitative Sub Total Committed Fund Balance Assigned to: Employees Accrued Leave Operating Carryovers CIP Carryovers Civic Center Renovation Contribution to Internal Service Fund Catastrophic Loss and Recovery Service Continuity Obligations Pension and Post Employment Benefits Fiscally Responsible Adjustment Sub Total Assigned Fund Balance Unassigned Fund Balance Fund Balance Deficits Unrealized Gain on Investments/(loss) Cash Flow Per City Policy Total Fund Balance (Deficit) 2,270,023 500,000 $10,064,299 500,000 10,064,299 6,000,000 1,000,000 45,975 1,000,000 3,000,000 741,000 8,196,000 1,372,785 1,133,601 2,391,538 259,076 775,000 3,500,000 235,873 3,132,011 1,341,408 34,124,267 979,247 1,486,299 1,083,752 2,000,000 500,000 10,608,185 2,410,000 9,866,848 325,002 29,259,333 (99,765) 13,328,249 $15,922 $854 $4,966 15,922 854 4,966 ($21,501) $295285,547 29,285,547 $27,080 60,000 901,908 1.281.035 2,270,023 $126159952 19615,952 4,968,221 4,9682221 291,975 291,975 500,000 3899081 389,081 $122905,632 $50,075 42,241,254 2,139,666 2,139,666 102064,299 12 905 632 50,075 9,404,895 62,210,448 6,000,000 1,021,742 45,975 1,00%000 3,00%000 741,000 8,196,000 1,372,785 1,133,601 2,391,538 259,076 775,000 3,50 %000 235,873 3,132,011 1,341,408 34,146,009 979,247 1,486,299 1,083,752 2,00 %000 50 %000 1 %608,185 2,410,000 9,866,848 325,002 29,259,333 ($901,908) (923,409) (99,765) 13,328,249 13,228,484 (21,501) (901,908) 12,305,075 $79,382,107 $10,064,299 $15,922 $854 $4,966 $21501 $29,285,547 $901908 $12,905,632 $50,075 $9,404,895 $140,190,888 3% CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 8 — NET POSITION 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, 2014 the cash flow reserves, which are part of the Unassigned Fund Balance, were above the minimum at approximately 3 months, however they were below the desired target of 3 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, 2014. These deficits are expected to be eliminated by future revenues. Fund Streets Projects Capital Projects Fund Fire Impact Fees Capital Projects Fund Federal Transportation (TIGER) Special Revenue Fund TDA Special Revenue Fund East Bay Regional Park District Special Revenue Fund PERS Side Fund Internal Service Fund Energy Efficiency Internal Service Fund NOTE 9 — DEFERRED COMPENSATION PLAN Fund Deficit $21,501 901,908 579 57,146 34,464 1,281,035 5,912,808 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. 63 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 10- PENSION PLAN �W17M"41 y 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 (CalPERS), a cost sharing multiple - employer plan administered by CaIPERS, 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 CalPERS and adopts those benefits through local ordinance or resolution. CalPERS issues a separate comprehensive annual financial report. Copies of the CalPERS's annual financial report may be obtained from the CalPERS Executive Office, 400 P Street Sacramento, California 95814, Funding Policy — Active plan members in the Miscellaneous Plan are required to contribute 8 percent of their annual covered salary. In October 2012, the City and its employees agreed to implement the Employee Cost Sharing of Additional Benefits, which increase the employee contribution rate by 50% of each year's cost of living adjustment, up to 4.072 %. The required employer contribution rate for fiscal year 2013 -2014 was 15.685% for miscellaneous employees, the City's net contribution rates was lowered by 2.95% additional employee contribution to the employer's rate. The actuarial methods and assumptions used are adopted the Ca1PERS Board of Administration, the City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. Annual Pension Cost — For fiscal year 2013 -2014, the City's annual projected pension cost was $1,247,428. The City's actual contributions were $1,131,540. The required contribution for fiscal year 2013 -2014 was determined in the June 30, 2012, actuarial valuation using the entry age normal actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions included (a) 7.50 percent investment rate of return compounded annually net of administrative expenses; (b) projected salary increases that vary by duration of service ranging from 3.30 percent to 14.20 percent for miscellaneous members, depending on Age, Service, and type of employment; (c) Inflation component of 2.75 percent; d) Payroll Growth of 3.00 percent; and e) Individual Salary Growth based on a merit scale varying by duration of employment coupled with an assumed annual inflation growth of 2.75 percent and annual production growth of 0.25 percent. The actuarial value of Miscellaneous Plan's assets was determined using a technique that smooth's 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, 2012, the latest actuarial study available, was 20 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 of APC Pension Ending Cost (APC) Contributed Obligation June 30, 2012 $1,2983838 100% $0 June 30, 2013 19249,811 100% 0 June 30, 2014 1,247,428 100% 0 64 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 10 - PENSION PLAN (Continued) The City contributed 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. 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 2013 -2014, the employees contributed $45,248 or 6% of salary and the City contributed $11,313 or 1.5% of employee's pay towards PARS. NOTE 11— 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 (CalPERS) to set aside funds and deposit into the California Employer's Retiree Benefit Trust ( CERBT) fund to accumulate, and distribute assets for the exclusive benefit of retirees and their beneficiaries. Plan assets are irrevocable and may not be used for any purpose other than funding post - retirement health care. The CERBT fund is an agent multiple employer plan and in order to ensure that the CERBT fund remains compliant with all reporting requirements, the CALPERS is responsible for publishing aggregate GASB 43 compliance Financial Statements, Notes, and Required Supplementary Information (RSI). The information may be found on CalPERS web site at www.calpers,ca.gov. A. City of Dublin Retiree Health Plan Plan Description - City of Dublin (City) Retiree Health Plan is a single- employer defined benefit healthcare plan administered by the California Public Employees Retirement System (CalPERS). The plan provides medical insurance benefits to eligible retirees and their eligible dependents in accordance with Public Employee Retirement Law (Article 2). The Public Employees Retirement System Board of Administration has the responsibility to approve health benefit plans and may contract with carriers offering health benefit plans. The Board of Administration is responsible for adopting all rules and regulations, including the scope and content of basic health plans. The California Government Code also defines certain rules for contract agencies, such as the City of Dublin, to purchase health insurance benefits. RKI CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 11— OTHER POST EMPLOYMENT BENEFITS (Continued) Funding Policy - There is no requirement imposed by Ca1PERS, to contribute any amount beyond the pay -as- you-go contributions. The cost of monthly insurance premiums may be shared between the retiree and the City. The cost sharing varies depending on: date of hire (a vesting schedule is in place for employees hired after April 1, 2004); the dependent status; and plan selected. A minimum employer monthly contribution requirement is established and may be amended by the CalPERS Board of Administration and applicable laws. Within the parameters of the law, individual contracting agencies, such as the City, are allowed to establish and amend the level of contributions made by the employer towards the monthly cost of the plans. Changes to the employer contribution rate towards retiree benefits are recorded in a resolution adopted by the City Council. The City has 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 Ca1PERS 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, 2013 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 Ca1PERS to retain the OPEB assets to finance future Retiree Health Benefits. On June 29, 2007, the City transferred $5,468,611 from the Internal Service Fund into the California Employers' Retiree Benefit Trust Fund (CERBT). The City has elected a one -year amortization period for the OPEB plan assets deposited into the CERBT, as permitted under GASB Statement 45, paragraph 13F, amortization periods allow for a maximum of 30 years with no minimum years. 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 $006,000 Annual OPEB expense 006,000 Contributions made 024,172 Decrease (increase) in net OPEB asset 18,172 Net OPEB asset - beginning of year 17,717 Net OPEB asset - end of year $359889 M CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 11— OTHER POST EMPLOYMENT BENEFITS (Continued) 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 2013 -14, and the preceding years were as follows: Fiscal Annual Annual OPEB OPEB Year Ended OPEB Cost Cost Contributed Asset 6/30/2012 $191643000 100% $0 6/30/2013 191815000 100% 173717 6/30/2014 133069000 100% 35,889 Funded Status and Funding Progress - As of June 30, 2013, the most recent actuarial valuation date, the plan was 64.60% funded. The Actuarial Accrued Liability (AAL) for benefits was $14,823,000 and the Actuarial Value of Plan Asset was $9,574,000 resulting in an Unfunded Actuarial Accrued Liability (UAAL) of $5,249,000. The covered payroll (annual payroll of active employees covered by the plan) was $8,972,000, and the ratio of UAAL to the covered payroll was 58.5 percent. Annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2014 and the previous years were as follows: Actuarial Valuation Date Actuarial Value of Assets (A) Entry Age Actuarial Accrued Liability (B) Underfunded (Overfunded) Actuarial Accrued Funded Liability Ratio (B-A) (AB) Covered Payroll (C) UAAL as a Percentage of Covered Payroll [(B-A) /Cl 6/30/2004 $0 $4,973,780 $4,973,780 0.00% $6,320,280 78.7% 6/30/2007 53694,000 6,159,000 4659000 92.45% 6,6979747 6.9% 6/30/2009 5,326,000 6,990,000 1,664,000 76.19% 7,6189000 21.8% 6/30/2011 658239000 11,557,000 497349000 59.04% 79830,000 60.5% 6/30/2013 995749000 1498239000 592499000 64.59% 899725000 58.5% 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, 2013 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 15 year basis, as a level percent of payroll with a remaining amortization period at June 30, 2013 of 15 years. 67 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 ONEWHOMM NOTE 11— OTHER POST EMPLOYMENT BENEFITS (Continued) 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 CalPERS 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 CalPERS 1997 -2007 Experience Study. Retirement assumption was also based on CalPERS 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 2013 Actual Premiums Actual Premiums 2014 Actual Premiums Actual Premiums 2015 8.0% 8.3% 2016 8.0% 8.3% 2017 8.0% 8.3% 2021+ 1 5.0% 1 5.0% Be Dougherty Regional Fire Authority Health Plan Dougherty Regional Fire Authority Background - In 1988, the cities of Dublin and San Ramon formed Dougherty Regional Fire Authority (DRFA), a Joint Powers Agency (JPA). The JPA provided fire services to all of Dublin and the southern portion of San Ramon. In 1997, the two cities decided to change how Fire Services would be provided in each City. As a result, JPA personnel were absorbed by the two new service providers pursuant to a mutual agreement. The JPA has remained intact to conclude the financial affairs of the entity. This includes residual retiree obligations and workers compensation liabilities. 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. CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 11— OTHER POST EMPLOYMENT BENEFITS (Continued) Funding Policy - There is no requirement imposed by Ca1PERS, to contribute any amount beyond the pay -as- you -go contributions. The cost of monthly insurance premiums may be shared between the retiree and DRFA. The cost sharing varies depending on: the bargaining unit; dependent status; and plan selected. A minimum employer monthly contribution requirement is established and may be amended by the Ca1PERS Board of Administration and applicable laws. Within the parameters of the law, individual contracting agencies, such as the DRFA, are allowed to establish and amend the level of contributions made by the employer towards the monthly cost of the plans. Changes to the employer contribution rate towards retiree benefits are recorded in a resolution adopted by the DRFA Management Committee. For fiscal year 2013 -2014, the City contributed $40,228 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. The following table shows the components of the City of Dublin's 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 Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB expense Contributions made Increase (decrease) in net OPEB obligation Net OPEB obligation (asset) - beginning of year Net OPEB obligation (asset) - end of year $68,574 10,831 (26,110) 53,295 (40,228) 13,067 290,299 $303,366 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 2013 -2014 and the two previous years were as follows: Fiscal Annual Annual OPEB OPEB Year Ended OPEB Cost 6/30/2012 $59,273 6/30/2013 593273 6/30/2014 533295 Cost Contributed Obligation 88.74% 77.08% 75.48% 276,715 290,299 303,366 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 11— OTHER POST EMPLOYMENT BENEFITS (Continued) Funded Status and Funding Progress - As of June 30, 2013, the most recent actuarial valuation date, the plan was not funded. Therefore, both the actuarial accrued liability for benefits and the unfunded actuarial accrued liability (UAAL) equaled $762,433. 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 report ing purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. A sole or agent employer that meets any of the eligibility criteria in paragraph 11 of GASB 45 is permitted to apply the alternative measurement method set forth in paragraphs 33 through 35 of GASB45, which allows for certain simplifying modifications to the selection of assumptions for purposes of measuring the ARC (Annual Required Contribution) and the plan's actuarial accrued liabilities and funded status. In the June 30, 2013 actuarial valuation prepared by Bartel and Associates, LLP the actuarial used was Alternative Measurement Method with the Entry Age Normal (EAN) cost method. Under the EAN cost method, the plan's Normal Cost is developed as a level percent of payroll throughout the participants' working lifetime. The actuarial assumptions included a 4.0% 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 Ca1PERS 1997 -2011 Experience Study. The increases areas follows: Year Non - Medicare HMO & PPO Medicare HMO & PPO 2013 Actual Premiums Actual Premiums 2014 Actual Premiums Actual Premiums 2015 8.0% 8.3% 2016 7.5% 7.8% 2017 7.0% 7.2% 2021+ 5.0% 5.0% The Actuarial Accrued Liability (AAL) is the cumulative value, on the valuation date, of prior Normal Costs. For retirees, the AAL is the present value of all projected benefits. Although GASB45 allows an amortization period not to exceed 30 years, due to the closed status of the plan, the unfunded AAL is amortized over 20 years as a level of dollar amount. 70 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 12 - HEALTH, GENERAL LIABILITY AND WORKERS' COMPENSATION 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. 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. Be 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, 2014, the City paid Cities Group $6,998 in premiums. At June 30, 2014, the City of Dublin's share of equity in the Cities group amounted to $98,462. Financial Statements may be obtained from the Cities Group, PO Box 111, Burlingame, CA 94011 -0111. 71 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 12 - HEALTH, GENERAL LIABILITY AND WORKERS' COMPENSATION COVERAGE (Continued) C. Liability for Uninsured Claims The GASB requires municipalities to record their liability for uninsured claims and reflect the current portion of this liability as expenditures in their financial statements. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or the uninsured portion of these claims in the ABAG PLAN and the Cities Group plans. GASB Statement No. 10, "Financial Reporting for Risk Financing and Related Insurance Issues" require that this amount be separately identified and recorded as a liability. The City's liability for uninsured claims, limited to general liability and workers compensation claims as discussed above, includes a provision for incurred but not reported (IBNR) losses. This amount was estimated based on claims experience. The reserve recorded, $195,057, is adequate to cover 3.90 IBNR claims. Therefore no adjustment was made in fiscal year 2013 -2014 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, 2014, NOTE 13 — 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 year 2013 -2014 the City contributed $33,222 of the total annual debt service payment. In addition, the City contributed $176,710 or 11.60% toward the annual operating shelter services and $63,190 representing 5.33% of the animal field service expenditures. 72 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 13 — JOINT POWERS AGREEMENTS (Continued) 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. During fiscal year 2013 -2014 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 2013 -2014, the ACAP Board of Directors determined that no contributions would be made by member agencies, unless additional close -out funds are needed. The City will incur a pro -rata share of the on -going costs. Unaudited condensed financial information as of June 30, 2014 for ACAP is presented below: Total assets Total liabilities Total net assets Total revenues Total expenses Increase (decrease) net position 73 $115,291 2,370 112,921 (495) 65,008 (65,503) CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2014 NOTE 14 — OTHER COMMITMENTS 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, 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, 2014, was $4,007,313 which is net of the $226,449 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. Be 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, 2014, the balance was $285,529 which includes accrued interest. 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, 2014 was $117,295,091. The addition of $2,634,723 to the credit balance was mainly due to value appreciation by converting parkland acreage to a dollar value, and credit used for the fiscal years was $6,735,596,091. 74 SUPPLEMENTARY INFORMATION CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2014 Property taxes:. Current year secured Current year unsecured Supplemental property tax Prior year secured Prior year unsecured Property tax penalties In lieu property tax Sub -total Taxes other than property: Sales and use tax In lieu sales tax Real property transfer tax Hotel transient occupancy tax Franchise taxes Sub -total Licenses and permits: Animal licenses Building permits Business license Construction and demolition permits Encroachment permits Fire permits Grading permits Newspaper racks permits Planning permits Miscellaneous permits Sub -total Fines and forfeitures: Parking citations Business license penalties Other court fines Sub -total Budgeted Amounts Original $18,506,450 1,164,000 444,700 280,000 5,000 85,900 3,667,000 Final $195522,454 1,164,000 444,700 280,000 5,000 85,900 3,667,000 Actual Amounts $19,113,300 1,181,981 563,939 428,518 3,551 62,882 3,932,136 Variance with Final Budget Positive (Negative) ($409,154) 17,981 119,239 148,518 (1,449) (23,018) 265,136 24,1533050 25,169,054 259286,307 117,253 12,203,550 4,067,850 491,100 898,100 2,943,800 20,604,400 6,000 2,401,440 139,930 56,290 48,910 57,860 3,320 3,240 52,740 5,450 775,180 72,430 2,250 63,580 138,260 76 12,364,098 4,705,850 491,100 898,100 3,070,637 21,529,785 6,000 4,044,284 139,930 79,486 122,573 77,860 3,320 3,240 52,740 5,450 13,115,116 4,705,850 742,304 1,135,228 3,550,096 23,248,594 5,681 5,378,381 151,890 107,032 140,475 96,227 3,527 54,155 7,617 751,018 251,204 237,128 479,459 1,718,809 (319) 1,334,097 11,960 27,546 17,902 18,367 207 (3,240) 1,415 2,167 4,534,883 53944,985 1,4109102 72,430 2,250 63,580 138,260 75,132 3,980 32,603 111,715 2,702 1,730 (30,977) (26,545) CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2014 (Continued) Revenue from use of money and property: Interest Internal designated Change in fair market value of investments Rent and concession: Field and court rentals Facility rentals Picnic area rentals Leased property Sub -total Intergovernmental revenues: Motor vehicle in -lieu Mandated costs Homeowner's property tax relief Sub -total Charges for services: General government Building use insurance Sale of maps and documents Public safety Police charges for services Fire charges for services Santa Rita fire services Waste management Waste management admin fees Environmental Programs EV Charges Parks and community services Aquatics programs Cemetery Cultural arts Family programs Heritage Center Preschool programs Recreational activities Community events and festivals Senior programs Sports programs Teens programs Community Development Engineering plan checking Local share permit surcharge - SMIP Building plan checking Local share permit surcharge - Zone 7 drainage fees Zoning and subdivision fees Sub -total Budgeted Amounts Variance with Final Budget Positive Original Final Actual Amounts (Negative) $6523970 $352,970 $422,979 $709009 3,700 3,700 2,506 29506 71,640 71,640 362,928 362,928 193,550 193,550 225,048 319498 307,950 307,950 303,430 (49520) 15,740 15,740 199691 3,951 64,030 64,030 159,921 959891 81,150 81,150 1,2345240 934,240 1,4969503 5625263 7435227 164,525 222 222 37 37 1835620 183,620 191.537 7,917 1835620 183,620 191,574 7,954 16,000 16,000 23,068 79068 3,700 3,700 1,205 (2,495) 71,640 71,640 89,704 189064 149,660 291,760 412,143 1209383 820,000 525,000 5255152 152 670,000 670,000 738,195 68,195 71 71 176,170 176,170 2145351 38,181 3,180 3,180 920 (2,260) 275,300 311,111 340,412 299301 391,290 411,728 6385498 2265770 12,090 123090 9,020 (3,070) 479,260 4793260 4195208 (60,052) 285,790 285,790 2769951 (89839) 81,150 81,150 885034 65884 452,430 578,702 7435227 164,525 222 222 2,2333880 29231,280 231799623 (51,657) 19520 11520 2,159 639 23600 19194 (1,406) 103030 10,030 25,325 15,295 9769130 197499130 2,499,100 749,970 711099220 79911,841 9,227,782 193159941 77 CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2014 (Continued) Other revenues: 933080 Contributions (42,168) Sales of property 1059930 Miscellaneous (229976) Reimbursement - general Reimbursement - public damage Reimbursement - Community benefit assessment Sub -total Total Revenue by Sources Budgeted Amounts Original $78,250 Final $89,750 Actual Amounts Variance with Final Budget Positive (Negative) $111,092 $21,342 939080 933080 50,912 (42,168) 1059930 1059930 82,954 (229976) 199370 199370 10,845 (8,525) 1,4615210 1,8463210 23108,858 262,648 1,7579840 2,1549340 29364,661 210,321 $57,9555810 $62,5569023 $679872,121 $51316,098 ip CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL DEPARTMENTAL EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2014 General government: City Council City Manager Election Central services City Attorney Administrative services Building management Non - departmental Sub -total Public safety: Police Fire services Disaster preparedness Crossing guards Animal control Traffic signals and street lighting Sub -total Highways and streets: Public works administration Street maintenance Street landscape maintenance Sub -total Health and welfare: Environmental programs Social services Sub -total Culture and leisure: Community cable television Library services Heritage and Culture Arts Park maintenance Parks and community services Parks and facilities management Sub -total Community development Development services Engineering Economic development Sub -total Total Expenditures Budgeted Amounts Original $433,930 1,338,970 3,120 1,540,470 777,810 2,274,140 999,520 1,494,810 Final $433,930 1,338,970 3,120 1,562,727 852,810 2,384,505 1,018,420 2,175,803 Actual Amounts $308,596 1,303,239 1,644 1,511,274 807,955 2,220,322 1,009,070 726,802 Variance with Final Budget Positive (Negative) $125,334 35,731 1,476 51,453 44,855 164,183 9,350 1,449,001 802,770 93770,285 79888,902 1,881,383 15,993,950 11,405,510 168,810 111,890 389,580 25,060 28,094,800 884,940 141,180 1,134,980 2,161,100 490,890 323,690 814,580 109,150 696,410 1,237,870 2,759,550 4,188,810 231,000 9,222,790 4,629,830 2,475,860 970,450 8,076,140 $57,232,180 79 16,406,220 11,601,359 168,810 111,890 389,580 25,060 28,702,919 932,703 148,999 1,169,861 2,251,563 335,010 515,664 850,674 109,150 696,410 1,238,310 2,765,550 4,376,251 429,462 9,615,133 5,750,894 2,569,667 1,263,450 9,584,011 $6097749585 14,856,448 10,757,354 128,029 111,843 273,122 13,954 26,140,750 902,266 137,205 1,132,475 2,171,946 323,317 475,266 798,583 102,629 694,288 1,197,205 2,655,855 4,257,825 398,235 9,306,037 5,442,819 2,557,665 982,545 8,983,029 $5592895247 1,549,772 844,005 40,781 47 116,458 11,106 2,562,169 30,437 11,794 37,386 79,617 11,693 40,398 52,091 6,521 2,122 41,105 109,695 118,426 31,227 309,096 308,075 12,002 280,905 600,982 $5,485,338 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 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 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. The Dublin Crossing Contribution Capital Projects Fund — accounts for community benefit payments specific to the Dublin Crossings Project, separate from any developer impact fees generated by the project. 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 305 2014 EXPENDITURES: Capital outlay: General improvements 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 Actual Amounts Variance with Final Budget Positive (Negative) $95856,440 $15,6689497 $13,316,472 $2,352,025 9,856,440 153668,497 13,316,472 25352,025 (9,856,440) (153668,497) (13,3165472) 29352,025 9,856,440 1556655759 13,3323394 (253339365) 9,856,440 15,665,759 13,3329394 (2,333,365) ($2,738) 159922 $15,922 $18,660 CITY OF DUBLIN COMMUNITY IMPROVEMENTS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 EXPENDITURES: Capital outlay: 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 ME 1001 AID :3�V1_\I[�1�1 ENDING FUND BALANCE Budgeted Amounts Original Final Actual Amounts $86,130 $83,380 $21,497 130 83,380 21,497 (86,130) (83,380) (21,497) Variance with Final Budget Positive (Negative) 61.883 61,883 130 86,130 22,351 (63,779) 130 86,130 22,351 (63,779) $2,750 854 ($1,896) ME CITY OF DUBLIN PARKS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE EXPENDITURES: Capital outlay: Parks Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE ENDING FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 305 2014 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $16,602,440 $1893809714 $993739830 $9,006,884 16,6025440 1893809714 9,3739830 990069884 (16,6025440) (1833809714) (95373,830) 990069884 $4,966 163605,420 189383,695 95378,796 (990049899) 16,6059420 189383,695 9,378,796 (950049899) $29980 $2,981 4,966 $1,985 $4,966 CITY OF DUBLIN STREETS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE EXPENDITURES: Capital outlay: Streets Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE MCI ►1►II► s IJIM1111741W41 %x140 ENDING FUND BALANCE (DEFICIT) BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $11,771,900 $11,095,322 $2,403,926 $8,691,396 11,771,900 1190959322 2,403,926 8,691,396 (11,771,900) (1190959322) (2,403,926) 856915396 11,771,900 1190959322 2,382,425 (8,712,897) 11,771,900 1190959322 2,382,425 (8,712,897) (21,501) ($21,501) ($21,501) CITY OF DUBLIN PUBLIC FACILITIES MPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 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 CHANGE IN FUND BALANCE ENDING FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Final $205,140 $205,140 7,420,840 7,420,840 7,625,980 7,625,980 314.140 314.140 7.311.840 314.140 314.140 7.311.840 Actual Amounts $149,426 7,614,380 7.763.806 77.827 77.827 Variance with Final Budget Positive (Negative) ($55,714) 193,540 137,826 236,313 236,313 7055979 374,139 (14,152,490) (1539309765) (7,3905307) 8,540,458 (14,152,490) (15,9305765) (753905307) 8,5405458 ($6,840,650) ($8,6185925) 2955672 $8,914,597 Me 28,989,875 $29,285,547 CITY OF DUBLIN FIRE IMPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 305 2014 REVENUES: Developer fees Total Revenues EXPENDITURES: Current: Public safety Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE (DEFICIT) ENDING FUND BALANCE (DEFICIT) 191,120 $191,120 Ei1A 1919120 196,699 55579 $191,120 196,699 $5,579 (1,0985607) ($901,908) Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) $191,120 $191,120 $201,664 $105544 191,120 191,120 201,664 10,544 4,965 (45965) 45965 (45965) 191,120 $191,120 Ei1A 1919120 196,699 55579 $191,120 196,699 $5,579 (1,0985607) ($901,908) CITY OF DUBLIN TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE REVENUES: Interest Developer fees Otherrevenue Total Revenues EXPENDITURES: Current: General government Community development Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE FiT011AIR 1► 1►11 C : : ► ENDING FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original $70,310 1,952,480 90,530 Final $70,310 2,956,430 90.530 Actual Amounts $57,200 4,716,876 Variance with Final Budget Positive (Negative) ($13,110) 1,760,446 (90,530) 2,113,320 39117,270 4,774.076 1,656,806 5109362 510,361 1 000 1489336 M81 140,155 000 658,698 518,542 140,156 2,093,320 2,458,572 4,2555534 15796,962 (6,109,890) (4,661,252) (892,455) 3,768,797 (6,109,890) (45661,252) (892,455) 33768,797 ($4,016,570) ($21202,680) 39363,079 $5,565,759 9,542,553 S12,905,632 CITY OF DUBLIN DUBLIN CROSSING CONTRIBUTION CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE REVENUES: Interest Developer fees Total Revenues EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $76 $76 49,999 4%999 50,075 50,075 50,075 50,075 50,075 $50,075 $50,075 This Page Left Intentionally Blank NON -MAJOR GOVERNMENTAL FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. SPECIAL REVENUE FUND PUBLIC SAFETY: SPECIAL CRIMINAL ACTIVITY Established to account for receipt of funds derived from asset forfeitures. VEHICLE ABATEMENT Established to account for the use of funds received from vehicle registration of Dublin residents for the towing of abandoned vehicles in city limits. SUPPLEMENTAL LAW ENFORCEMENT (SLESJCOPS) Established to account for police expenditures funded by a State grant. TRAFFIC SAFETY Established to account for the receipt of traffic fines and traffic safety expenditures. FEDERAL ASSET SEIZURE Established to account for the receipts and expenditures of the Federal seizure funds. EMERGENCY MEDICAL SERVICES (EMS) Established to account for excise taxes received to fund the costs of providing Emergency Medical Services. ENFORCEMENT GRANTS Established to account for miscellaneous grants received for police expenditures not reported in the above funds. TRANSPORTATION: STATE GAS TAX Established to account for the receipt of state gasoline taxes and expenditures. SAFETEA -LU Established to account for the revenue received from the U.S. Department of Transportation under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legal for Users fund. 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 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 funds received from the Alameda County Congestion Management Agency, 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. ENVIl20NMENTAL0 GARBAGE/RECYCLING Established to account for the following activities: 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. 92 NON -MAJOR GOVERNMENTAL FUNDS (Continued) AVI ECONOMIC BENEFIT/BUSINESS ASSISTANCE PROGRAM Established to account for the grant received from Amador Valley Industry and to provide business owners funding for eligible environmental related improvements. STORM WATER MANAGEMENT Established to account for the following 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. DublinlDougherty 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. BOX CULVERT Established to account for the funds designated for the maintenance and repairs of box culvert in the East Dublin area. 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. MISCELLANEOUS REVENUE Established to account for the following activities: 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. 93 NON -MAJOR GOVERNMENTAL FUNDS (Continued) Noise Mitigation Establish to account for the fees received from developers of properties, which can only be used for the noise mitigation measures. Citywide Events (Customer Service) Fund Establish to account for event ticket sales and donations, to be spent on special events citywide. 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. E This Page Left Intentionally Blank CITY OF DUBLIN NON -MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEETS ASSETS Cash and investments Accounts receivable Total Assets LIABILITIES Accounts payable Deposits payable Contract retention payable Due to other funds Total Liabilities FUND BALANCE (DEFICIT) Fund balance (Deficit): Restricted Public safety programs Street maintenance and construction Health and welfare programs Recycling programs Capital improvement projects Total Fund Balances (Deficits) Total Liabilities and Fund Balances (Deficits) JUNE 303 2014 Special Criminal Activity $77,317 Special Revenue Funds Supplemental Vehicle Law Abatement Enforcement $246,327 7,965 $27,800 Traffic Safety $246,704 40,652 $77,317 $254,292 $2700 $287,356 $38 5,930 5,968 71,349 $254,292 $25,300 $49,243 25,300 4%243 23500 238,113 71,349 254,292 2,500 2389113 $77,317 $2543292 $27,800 $287,356 =01 Federal Asset Seizure $315,118 Emergency Medical Services Special Revenue Funds Enforcement Grants State Gas Tax $90,309 $55559 $3,232,746 30,834 435860 SAFETEA -LU Measure B Sales Tax Local Streets $355862 $754,115 62,204 $315,118 $121,143 $5,559 $3,276,606 $35,862 $816,319 $3,136 $935007 $1,161 $24,801 35136 9307 1,161 24,801 311,982 28,136 4,398 3,251,805 $35,862 $816,319 3119982 28,136 4,398 39251,805 35,862 816,319 $315,118 $121,143 $5,559 $332763606 $35,862 $816,319 (Continued) 97 ASSETS Cash and investments Accounts receivable Total Assets LIABILITIES Accounts payable Deposits payable Contract retention payable Due to other funds Total Liabilities FUND BALANCE (DEFICIT) Fund balance (Deficit): Restricted Public safety programs Street maintenance and construction Health and welfare programs Recycling programs Capital improvement projects Total Fund Balances (Deficits) CITY OF DUBLIN NON -MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEETS JUNE 30, 2014 Measure B Sales Tax Bike/Pedestrian $45,633 12,503 Special Revenue Funds Congestion Management Agency $290,981 Highway Safety Traffic Reduction Bond $4,299 Federal Transportation (TIGER) $22,917 $585136 $290,981 $4,299 $223917 $5,356 $290,981 5,356 2905981 52,780 52,780 1h� •� $23,496 23,496 (579) 4,299 (579) Total Liabilities and Fund Balances (Deficits) $58,136 $290,981 $45299 $22,917 •• ACTC Vehicle Registration Fee TDA $102,417 42.373 Special Revenue Funds AVI Economic Storm Garbage/ Benefit/Business Water Recycling Assistance Program Management $344,352 $38 $2103223 70,573 2,912 Box Culvert $357,847 $1445790 $414,925 $38 $2135135 $3579847 $59,312 $57,146 $25,844 5%312 57,146 25,844 85,478 (57,146) 0169%119611 85,478 (575146) 389,081 M4 $55,289 1573846 $3579847 213,135 357,847 $144,790 $414,925 $38 $213,135 $357,847 (Continued) WO CITY OF DUBLIN NON MAJOR GOVERNMENTAL FUNDS COMBESUNG BALANCE SHEETS ASSETS Cash and investments Accounts receivable Total Assets LIABILITIES Accounts payable Deposits payable Contract retention payable Due to other funds Total Liabilities FUND BALANCE (DEFICIT) Fund balance (Deficit): Restricted Public safety programs Street maintenance and construction Health and welfare programs Recycling programs Capital improvement projects Total Fund Balances (Deficits) Total Liabilities and Fund Balances (Deficits) JUNE 30, 2014 East Bay Regional Park District $34,464 Special Revenue Funds Public Art $2,144,482 Miscellaneous Special Revenue Community Development Block Grant $252,828 409945 $35,756 $211445482 $2935773 $353756 $4,816 $1,836 $5,437 30,320 345464 45816 1,836 35,757 (34,464) 2,139,666 291,937 (1) (34,464) 2,1393666 291,937 (1) 100 $29144,482 $2933773 $35,756 Special Revenue Funds Maintenance Districts 1983 -1 1983 -2 1986 -1 1997 -1 1999 7 Street Stagecoach Dougherty Santa Rita East Dublin Lighting Landscape Landscape Landscape Street Lighting Total Non -Major Governmental Funds $2165895 $47,577 $1123614 $265,386 $412,348 $995483796 5,916 533 51 6,572 038 718,885 $222,811 $48,110 $112,665 $2713958 $4135686 $10,267,681 $22,181 $5,262 $17,552 $37,250 $251342 13,575 $405,038 7,766 13,575 436,407 225181 5,262 171552 37,250 38,917 862,786 200,630 42,848 95,113 234,708 374,769 1,574,907 5,009,266 291,975 389,081 2,139,666 200,630 42,848 959113 234,708 3749769 9,4049895 $222,811 $48,110 $1123665 $271,958 $413,686 $10,267,681 101 CITY OF DUBLIN NON -MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2014 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: 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) �I .: ► h 1� I : � �II.`7 FUND BALANCES (DEFICITS): Beginning of year End of year Special Revenue Funds Special Supplemental Criminal Vehicle Law Activity Abatement Enforcement Traffic Safety $305331 $1023218 $32,380 $359 1,160 133 833 211,886 31,525 82608 319884 315491 102,351 2539707 1,543 652 1,543 652 30,341 305839 302341 303839 100,000 114,785 32,380 100,000 147,165 51 106,542 2,351 106,542 415008 2239453 149 1319571 $71,349 $254,292 $2,500 $238,113 102 Federal Asset Seizure $1,829 Emergency Medical Services $161,947 Special Revenue Funds Enforcement Grants State Gas Tax SAFETEA -LU 177,337 $5,906 $1,511,326 $423132 Measure B Sales Tax Local Streets $385,015 294 19 14,548 4,044 1879126 355862 715206 1,829 339,578 5,925 1,713,000 77,994 460,265 98,751 333,992 5,945 61,663 345,805 6,000 98,751 3339992 51945 413,468 (96,922) 5,586 (20) 192999532 77,994 4603265 (96,922) 5,586 (20) (3919360) (42,132) (518,107) (391,360) (425132) (518,107) 908,172 408,904 22,550 4,418 2,343,633 351862 (57,842) 874,161 $311,982 $28,136 $4,398 $3,251,805 $35,862 $816,319 (Continued) 103 CITY OF DUBLIN NON -MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 305 2014 Measure B Sales Tax Bike/Pedestrian REVENUES Property taxes Taxes other than property $135,524 Intergovernmental Charges for service Interest 91 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 135,615 EXPENDITURES Current: Public safety Highways and streets 9,438 Health and welfare Cultural and leisure Community development 48,611 Total Expenditures 581049 REVENUES OVER (UNDER) EXPENDITURES 775566 OTHER FINANCING SOURCES (USES) Transfer in 23,490 Transfer out (54,789) Total Other Financing Sources (Uses) (31,299) NET CHANGE IN FUND BALANCES 469267 FUND BALANCES (DEFICITS): Beginning of year 6,513 End of year $52,780 104 Special Revenue Funds Highway Congestion Safety Federal Management Traffic Transportation Agency Reduction Bond (TIGER) 17 17 $7,831 7,831 $22,911 22,911 (7,814) 22,911 (7,814) 12,113 (23,490) (23,490) (579) $4,299 ($579) Special Revenue Funds ACTC Vehicle AVI Economic Storm Registration Garbage/ Benefit/Business Water Fee TDA Recycling Assistance Program Management Box Culvert $236,324 $169,146 2,893,149 1,109 2,412 561 13,449 237,994 151,334 151,334 86,660 (3295685) ($573146) (3295685) (575146) (243,025) (57,146) 3,078,156 8,720 2,966,043 2,974,763 103,393 103,393 328,503 285,688 $853478 ($57,146) $389,081 105 $38 1,070 38 1,070 29,942 29,942 $1,758 758 38 (28,872) 1,758 (5,031) (5,031) 38 (33,903) 1,758 247,038 3563089 $38 $213,135 $357,847 (Continued) CITY OF DUBLIN NON -MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2014 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: 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 (DEFICITS): Beginning of year East Bay Regional Park District ($34,464) (34,464) (34,464) Special Revenue Funds Public Art $9,633 545,380 Miscellaneous Special Revenue $155,945 939 . 1:: Community Development Block Grant $52,574 555,013 162,972 523574 8,047 43,692 45,975 85047 43,692 45,975 5465966 119,280 65599 546,966 119,280 1,5923700 1723657 (6,600) (6,600) (1) End of year ($34,464) $2,139,666 $291,937 ($1) l: Special Revenue Funds Maintenance Districts 1983 -1 1983 -2 1986 -1 1997 -1 1999 -1 Street Stagecoach Dougherty Santa Rita East Dublin Lighting Landscape Landscape Landscape Street Lighting M M $445 $1,276 $2,435 2883085 78,518 121,981 282,377 2545278 Total Nonmajor Governmental Funds $161,947 520,539 2,373,977 3,049,094 45,537 211,886 551,468 348,337 1,025,239 2889972 78,726 122,426 283,653 256,713 852883024 263,778 75,995 100,254 2929329 103,339 7,254 3,211 33573 53017 5,478 1,227,174 870,530 3,019,849 43,692 111,524 271,032 79,206 1039827 2973346 1085817 592729769 17,940 (480) 18,599 (135693) 147,896 390155255 17,940 -m 182,690 43,328 $200,630 23,490 (271,504) (15734,308) (271,504) (11710,818) 182599 (13,693) (123,608) 1,3041437 14 248,401 498,377 891002458 $42,848 $95,113 $234,708 107 $374,769 $9,4045895 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year SPECIAL CRIMINAL ACTIVITY Budgeted Amounts Original Final $1,280 $1,280 Actual Elm 31,525 Variance Positive (Negative) ($921) 31,525 1,280 1,280 3104 30,604 M:1 m 1,543 2,937 45480 45480 1,543 2,937 (3,200) (3,200) 30,341 33,541 ($3,200) ($33200) 303341 1' 41,008 $71.349 $33,541 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year VEHICLE ABATEMENT Budgeted Amounts Original Final 109 $30,460 3,060 $30,460 3,060 Variance Positive Actual (Negative) $30,331 ($129) 13160 (1,900) 33,520 335520 31,491 (2,029) 1,000 1,000 1,000 13000 652 652 MUO 32,520 323520 303839 (1,681) (20,910) (209910) (20,910) (209910) $11,610 $11,610 305839 223,453 $254,292 20,910 20,910 $19,229 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year SUPPLEMENTAL LAW ENFORCEMENT Variance Budgeted Amounts Positive Original Final Actual (Negative) $100,000 11111 $100,000 $102,218 $2,218 133 133 10 0, 00 0 100, 000 102,351 21351 100,000 10 0, 000 100,000 100, 000 100.000 1005000 2.351 2,351 2.351 $2,351 149 $2.500 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year TRAFFIC SAFETY Budgeted Amounts Original Final $32,350 $1483280 148,280 Actual $32,380 833 211,886 OWO Variance Positive (Negative) $30 833 63,606 :.1: 148,280 18030 253,707 73,077 120,030 12000 114,785 32,380 32,380 5,215 120,030 152,380 1475165 5,215 28,250 28,250 106,542 78,292 $28,250 $28,250 106,542 111 131 $238,113 $78,292 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year FEDERAL ASSET SEIZURE Budgeted Amounts Original Final 1910], $19360 $1,360 Actual $1,829 1,360 13360 19829 100,000 989751 Variance Positive (Negative) 1,249 100,000 98,751 11249 1,360 (98,640) (96,922) 13718 $15360 ($98,640) (96,922) $1,718 408,904 $311,982 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 100110Z0c11rAZI070ATeft FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year EMERGENCY MEDICAL SERVICES Budgeted Amounts Original Final $159,000 113 177,630 $159,000 177,630 Variance Positive Actual (Negative) $161,947 $21947 177.337 (293) 294 294 336,630 336,630 339.578 2,948 33700 351,231 333,992 17,239 3375080 3515231 333,992 17,239 (450) (14,601) 5,586 ($450) ($14,601) 5,586 22,550 $28,136 187 $20,187 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year ENFORCEMENT GRANT Budgeted Amounts Original Final 114 $1,230 $6,130 Variance Positive Actual (Negative) $5,906 ($224) 19 19 1,230 6330 5,925 (205) 1,230 6,130 5,945 1,230 6,130 5,945 185 185 (20) (20) (20) ($20) 4,418 $4,398 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year ll :11►� l i7_ X O 1 1Ml- FOR i l THE YEAR ENDED JUNE 305 2014 STATE GAS TAX Budgeted Amounts Original Final $1,420,640 21,050 $1,420,640 21,050 Variance Positive Actual (Negative) $1,5113326 $909686 14,548 (6,502) 187,126 1873126 1,44100 13441,690 1,7133000 271,310 42,000 61,663 61,663 477,310 533,647 345.805 187,842 63000 6,000 6,000 5253310 601,310 4133468 187,842 916,380 8403380 1,299,532 459,152 (1,2209910) (1,531,202) (391.360) 1,139,842 (1,220,910) (19531,202) (391,360) 1,139,842 ($304,530) ($690,822) 908,172 $1,598,994 115 2,343,633 $3,251,805 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 SAFETEA -LU Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $5243427 $42,132 ($482,295) Charges for service Interest Fines and forfeitures Developer fees Other revenue 3502 35,862 Special assessments Total Revenues 524,427 773994 (446,433) EXPENDITURES Current: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year 116 524,427 779994 (446,433) (43,132) (429132) 1,000 (43,132) (42,132) 1,000 $4811295 359862 ($445,433) $35,862 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) I►�I � 1��1/:�C�7� 1�1�i�I X7:1\ 11_ \�[y DT.`l FUND BALANCE (DEFICITS): Beginning of year End of year MEASURE B SALES TAX LOCAL STREETS Variance Budgeted Amounts Positive Original Final Actual (Negative) $366,370 $366,370 $385,015 $18,645 7,270 79270 4,044 (3,226) 2,0001000 21000,000 71,206 (1,9285794) 2,3735640 2.3735640 4603265 (1,913,375) 23373,640 2,373,640 4603265 (15913,375) (330665020) (3,0953089) (5183107) 2,5769982 (35066,020) (3,095,089) (5183107) 295769982 ($692,380) ($721,449) 117 (575842) $663,607 874,161 $816,319 CITY OF DUBLIN I BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2014 II I MEASURE B SALES TAX BIKE/PEDESTRIAN Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES I Property taxes Taxes other than property $130,570 $130,570 $135,524 $4,954 Intergovernmental Charges for service Interest 2,200 2,200 91 (2,109) Il Fines and forfeitures Developer fees Other revenue I Special assessments Total Revenues 132,770 132,770 135,615 2,845 EXPENDITURES Current: Public safety Highways and streets 20,110 20,110 9,438 10,672 Health and welfare Cultural and leisure Community development 66,350 48,611 17,739 I Total Expenditures 20,110 86,460 58,049 28,411 REVENUES OVER (UNDER)EXPENDITURES 112,660 46,310 77,566 31,256 OTHER FINANCING SOURCES(USES) I Transfers in 23,490 23,490 Transfers(out) (60,300) (60,300) (54,789) 5,511 Total Other Financing Sources(Uses) (60,300) (60,300) (31,299) 29,001 NET CHANGE IN FUND BALANCES $52,360 ($13,990) 46,267 $60,257 FUND BALANCE(DEFICITS): I Beginning of year 6,513 End of year $52,780 I I I 118 1 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year CONGESTION MANAGEMENT AGENCY Budgeted Amounts Original Final I Actual Variance Positive (Negative) CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 3 0, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year HIGHWAY SAFETY TRAFFIC REDUCTION BOND Budgeted Amounts Original Final ($24,300) ($24,300) (24,300) (24,300) ($24,300) ($245300) 120 Variance Positive Actual (Negative) $17 17 7,831 $17 17 (7,831) 7,831 (75831) (75814) (79814) 24,300 24,300 (7,814) $165486 12,113 $4,299 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) FUND BALANCE (DEFICITS): Beginning of year End of year FEDERAL TRANSPORTATION (TIGER) Variance Budgeted Amounts Positive Original Final Actual (Negative) 121 $22,911 $22,911 22,911 22,911 22,911 ($233490) (23,490) (239490) (23,490) ($23,490) 911 (579) $22,911 ($579) CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year ACTC VEHICLE REGISTRATION FEE Budgeted Amounts Original Final $217,160 Actual $2173160 $236,324 217,160 217,160 1725080 17200 1,109 $561 Variance Positive (Negative) $19,164 1,109 561 237,994 20,834 151,334 20,746 1729080 172,080 151,334 20,746 45,080 45,080 86.660 41,580 (459250) (326,531) (329,685) (3,154) (45,250) (326,531) (3299685) (3,154) 122 ($170) ($281,451) (243,025) $38,426 328,503 $85,478 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year 1: Budgeted Amounts Original Final $163,100 163,100 $163,100 163.100 1633100 163,100 Actual Variance Positive (Negative) ($163,100) (163.100) (163,100) (1633100) (207,396) ($57,146) 150,250 (1635100) (207,396) (57,146) 1503250 123 ($44,296) (57,146) ($12,850) ($57,146) CITY OF DUBLIN *viol 1Ze1:l10 al Is) zaUy GOM:11INLI SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year GARBAGE/RECYCLING Budgeted Amounts Original Final $163,480 2,638,210 1,750 $163,787 2,851,980 1,750 3,962 Variance Positive Actual (Negative) $1693146 $5,359 2,8933149 41,169 2,412 662 135449 %487 2,803,440 350211479 3,0785156 56,677 65680 8,720 8,720 25755.560 3,016,147 2,9665043 50,104 2,762,240 3,024,867 2,974,763 50,104 41,200 (3,388) 103,393 106,781 $415200 ($35388) 103,393 124 285.688 $389,081 $ 106,781 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year AVI ECONOMIC BENEFITBUSINESS ASSISTANCE PROGRAM Budgeted Amounts Original Final 125 Variance Positive Actual (Negative) M 38 W6 0:3 $38 M 38 38 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year STORM WATER MANAGEMENT Budgeted Amounts Original Final $756,770 2,280 $756,770 2,280 Actual $1,070 Variance Positive (Negative) ($756,770) (1,210) 7599050 759,050 13070 (757,980) 10,000 10,426 10,000 10,426 29,942 (195516) 942 (195516) 749,050 748,624 (28,872) (777,496) (764,380) (771,748) (5,031) 766,717 (7649380) (771,748) (51031) 7663717 ($15,330) ($23,124) (33,903) ($10,779) 126 247.038 $213,135 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Otherrevenue Special assessments Total Revenues EXPENDITURES Current: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year BOX CULVERT Budgeted Amounts Original Final $4,050 $4,050 Actual $1,758 Variance Positive (Negative) ($2,292) 49050 4,050 1,758 (23292) 4,050 49050 1,758 (2,292) $4,050 $4,050 15758 ($2,292) 127 356,089 $357,847 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year EAST BAY REGIONAL PARK DISTRICT Budgeted Amounts Original Final $15500 $1555000 155,000 1555000 1553000 155,000 Actual Variance Positive (Negative) ($155,000) (155,000) (155,000) (155,000) (155,000) ($34,464) 1209536 (155,000) (155,000) (34,464) 1209536 128 (34,464) ($349464) ($34,464) CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year PUBLIC ART Budgeted Amounts Original Final $3,290 $3,290 129 500,835 Variance Positive Actual (Negative) $9,633 $6,343 5455380 445545 3,290 504,125 555,013 505888 2,500 85047 8,047 2,500 8,047 8,047 790 496,078 546,966 50,888 $790 $4965078 5463966 $505888 1,592,700 $2,139,666 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): ITEM End of year FOR THE YEAR ENDED JUNE 30, 2014 130 MISCELLANEOUS SPECIAL REVENUE Variance Budgeted Amounts Positive Original Final Actual (Negative) $135,000 3,730 3,310 $135,000 3,730 3,310 $155,945 939 ME $20,945 (2,791) 2,778 142,040 142,040 162,972 20,932 35,340 56,840 43,692 13,148 35,340 56,840 43,692 13,148 106,700 853200 119,280 $106,700 $85,200 119,280 172,657 $291,937 9:I $34,080 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Begin mi g of year End of year 131 CONOAUNITY DEVELOPMENT BLOCK GRANT Variance Budgeted Amounts Positive Original Final Actual (Negative) $51,780 $56,780 $52,574 ($43206) 51,780 56,780 52,574 (4,206) 513780 50,180 45,975 4,205 512780 50,180 455975 4,205 6,600 6,599 (61600) (65600) (61600) (65600) (1) ($1) ($1) CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Otherrevenue Special assessments Total Revenues EXPENDITURES Current: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year 132 1983 -1 STREET LIGHTING MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) $1,880 $1,880 $887 ($993) 29500 25500 (2,500) 2851590 285,590 288,085 2,495 289,970 289,970 288,972 (998) 3505370 2657050 263,778 9,440 9440 7,254 1,272 :. 359,810 274,490 271,032 3,458 (699840) 152480 17,940 2,460 (2,820) (2,820) (2,820) (2,820) ($7200) $12,660 17,940 182,690 $200,630 2,820 2,820 $5,280 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 133 1983 -2 STAGECOACH LANDSCAPE MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) $650 $650 $208 ($442) 81,980 813980 78,518 (3,462) 82,630 82,630 785726 (3,904) 735960 75,995 75,995 4,010 4,010 3,211 799 77,970 809005 79,206 799 4,660 21625 (480) (3,105) (750) (750) (750) (750) $35910 $1,875 750 750 (480) ($2,355) 43,328 $42,848 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 309 2014 134 1986 -1 DOUGHERTY LANDSCAPE MAINTENANCE DISTRICT Budgeted Amounts Original Final $1,110 $1,110 Variance Positive Actual (Negative) $445 ($665) 121,830 121,830 121,981 151 122,940 122,940 1223426 (514) 125,370 125,370 1001254 25,116 400 400 3,573 11117 130,060 130,060 103,827 26,233 (7,120) (7,120) 18,599 1:1 $0 (100) (1,080) ($8,200) ($8,200) 18,599 76,514 $95,113 25,719 1,080 1,080 $26,799 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Otherrevenue Special assessments Total Revenues EXPENDITURES Current: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): :�� End of year BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 135 1997 -1 SANTA RITA LANDSCAPE MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) $35500 $3,500 $1,276 ($2,224) 2962790 296,790 2825377 (14,413) 3002290 300,290 2833653 (16,637) 316,340 316,340 292,329 24,011 7,940 71940 5,017 2,923 324,280 324,280 297,346 26,934 (23,990) (23,990) (13,693) 101297 (32130) (33130) (39130) (32130) ($27120) ($273120) 3,130 130 (133693) $13,427 248,401 $234,708 CITY OF DUBLIN BUDGETED NON -MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE 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: Public safety Highways and streets Health and welfare Cultural and leisure Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2014 1999 -1 EAST DUBLIN STREET LIGHTING MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) $5,950 $5,950 $2435 ($3,515) 238,770 238,770 2545278 151508 720 244,720 2565713 11,993 2545620 124,286 1033339 205947 6,890 6,890 5,478 1,412 2619510 131,176 108,817 22,359 136 - 16,790 113,544 147,896 34,352 (32,080) (315,881) (2713504) 44,377 (32,080) (3155881) (2713504) 44,377 ($481870) ($2022337) (123,608) $785729 498,377 $374,769 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. JA 1IZ "11,11"W41101 JO 1' 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 FUND This fund was established to account for the repayment to the general fund for the advance made in fiscal year 2007 -2008 to pay CalPERS for the City's Side Fund obligation. The Side Fund was created in 2005 when Ca1PERS assigned agencies with less than 100 participants to a risk sharing pool. The City elected to pre -pay its obligation from the General Fund reserves and an internal service charge is made each year to repay the reserve. PARK REPLACEMENT This fund was established to finance future major maintenance and repairs of City's parks. ENERGY EFFICIENCY This fund was established to account for the financing and construction of the Energy Efficiency Upgrade Capital Project. 137 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF NET POSITION June 30, 2014 Vehicle Building Equipment Maintenance Replacement Replacement Replacement and Repair ASSETS Current Assets: Cash and investments $2,7179577 $4,487,289 $23652,655 $348,749 Restricted cash Prepaid items 371464 Accounts receivable Total current assets 257175577 41487,289 256529655 3869213 Noncurrent Assets: Land 10,774,792 Construction in progress 4,5409594 389,126 Building and improvements 62,1159075 Vehicles and equipment 35841,714 428,100 23376,539 Less: accumulated depreciation (25688,198) (289183,275) (15935,234) Total non - current assets 1,1539516 49,6759286 830,431 Total Assets 358719093 549162,575 35483,086 386,213 LIABILITIES Current Liabilities: Accounts payable and accruals 22,990 23,233 Contract retentions payable 133174 Capital lease Total current liabilities 225990 13,174 23,233 Noncurrent Liabilities: Capital lease Advances from other funds Total non - current liabilities Total Liabilities 22,990 13,174 23,233 NET POSITION (DEFICIT) Net Investment in capital assets 1,1535516 49,6759286 830,431 Restricted Unrestricted 256945587 4,4741115 2,6525655 3625980 Total Net Position $3,848,103 138 $5451493401 $354833086 $362,980 Retiree PERS Park Energy Health Care Side Fund Replacement Efficiency Total $2125905 $317,352 $2,628 $10,7399155 546,515 5469515 37,464 1095651 109,651 3223556 317,352 549,143 11,432,785 10,774,792 4,929,720 62,115,075 6,646,353 (329806,707) 51,659,233 322,556 317,352 549,143 6390929018 2969702 342,925 333,145 346,319 378,995 378,995 2963702 712,140 150689239 5,749,811 5,749,811 $1,2819035 19281,035 1,2819035 5,749,811 790309846 2969702 132819035 63461,951 890999085 259854 (192819035) 317,352 (5,9123808) $259854 ($1,281,035) $3179352 ($5,9125808) IRM 51,659,233 3,333,700 $54,992,933 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2014 OPERATING REVENUES Charges for services Other revenue Total Operating Revenues OPERATING EXPENSES Supplies and services OPEB expenses Depreciation Interest and fiscal charges Total Operating Expenses Operating Income (Loss) NONOPERATING REVENUES (EXPENSES) Interest income Gain from sale of property Total Nonoperating Revenues (Expenses) Income (Loss) Before Contributions and Transfers Contributions Transfer (out) Net transfers Change in Net Position BEGINNING NET POSITION (DEFICIT) ENDING NET POSITION (DEFICIT) Vehicle Building Equipment Maintenance Replacement Replacement Replacement and Repair $366,427 39,537 $164,916 $625,455 $497,036 3,781 405,964 164,916 6255455 500,817 611,232 3741795 278,167 2,114,297 56,116 8899399 2,114,297 56,116 374,795 (4839435) (19949,381) 569,339 126,022 149730 34,041 125418 1,515 28,489 43,219 343041 12,418 1,515 (440,216) (199153340) 581,757 127,537 3,988,232 339,785 (4,298,673) (171J33) (310,441) 168,052 (440,216) (2,225,781) 7499809 127,537 4,288,319 56,375,182 2,7335277 235,443 $3,848,103 $54,149,401 $3,483,086 $362,980 140 Retiree PERS Park Energy Health Care Side Fund Replacement Efficiency Total $1,272,957 468,298 1,741,255 1,741,256 1,741,256 (1) $361,733 $104,663 $7993966 80 $4,193,153 511,696 361,733 10403 800,046 4,704,849 986,027 1,741,256 2,448,580 172,949 172,949 172,949 5,348,812 361,733 104,663 627,097 (643,963) 691 1,339 64,734 28,489 691 1,339 93,223 690 361,733 10602 627,097 (550,740) 4,328,017 (336,339) (4,806,745) (336,339) (478,728) 690 361,733 10602 290,758 (1,029,468) 25,164 (1,642,768) 211,350 (6,203,566) 56,0225401 $25,854 ($15281,035) $317,352 ($5,912,808) $545992,933 141 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2014 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 Contributions 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 Interest paid on capital lease Capital lease repayment 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 Interest and fiscal charges Change in assets and liabilities: Accounts receivable Prepaid expenses Accounts payable and accruals Vehicle Replacement $366,427 (588,242) 39,537 Building Replacement $178,090 Equipment Replacement $631,024 Maintenance and Repair $497,036 (365,700) 3,781 (182,278) 178,090 6315024 135,117 (407,272) 28,489 3,988,232 3393785 (4,298,673) (1713733) (310,441) 1689052 (430009000) (480,124) (378,783) (4,000,000) (480,124) 14,730 341041 12,418 1,515 14,730 345041 12,418 1,515 (546,331) (4,098,310) 331,370 136,632 3,263,908 8,585,599 2,3211285 212,117 $2,717,577 $4,487,289 $256523655 $348,749 ($483,435) 278,167 ($1,949,381) 2,114,297 22,990 13,174 $569,339 56,116 5,569 $126,022 (1,168) 10,263 Cash Flows from Operating Activities ($1829278) $1785090 $6315024 $1359117 142 Retiree PERS Park Energy Health Care Side Fund Replacement Efficiency Total $1,281,378 $361,733 (1,537,462) 468,298 $104,663 $799,966 (313,686) 80 $4,220,317 (2,805,090) 511,696 212,214 361,733 104,663 4865360 15926,923 691 691 212,905 $212,905 ($1) 8,421 203,794 (361,733) (361,733) 1,339 1,339 4,328,017 (336,339) (5,168,478) (336,339) (8403461) (172,949) (627,018) (43887,396) (172,949) (627,018) 28,489 (7995967) (556585874) 64,734 64,734 1065002 (649,946) (4,507,678) 2115350 1,199,089 153793,348 $317,352 $5495143 $11,285,670 $361,733 $104,663 $627,097 ($643,963) 2,448,580 172,949 172,949 8,421 4,401 (313,686) (63,465) $212,214 $361,733 $1045663 $4865360 $159265923 143 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 section 25670 that a District is a political subdivision of the Sta local agency. The City acts as a trustee of the funds collected services paid for by the District. Fiscal Year 2008 -2009 was levied by the Districts. Fallon Village Geologic Hazard Abatement District Public Resource Code, which establishes in to and is not an agency or instrumentality of a and may contractually provide or arrange for the first year that tax roll assessments were 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 Geologic 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. Fallon Village Annex/Jordan Ranch Geologic Hazard Abatement District This assessment district was established to account for the maintenance of open space areas within the Jordan Ranch development. On May 3, 2011 the City Council approved Resolution No. 52-11 which modified the boundaries of the Fallon Village District. The Jordan Ranch property was annexed into the Fallon Village Geologic Hazard Abatement District subject to a separate Engineers report. Fallon Crossing (North Tassajara) Geologic Hazard Abatement District This assessment district was established to account for the maintenance of open space areas in accordance with a condition of approval for the Fallon Crossings development project. The boundary of the District encompasses 68 acres of land located on the northeast side of Tassajara Road, about 2 1/4 miles north of Interstate Highway 580, Tassajara Road and Moller Creek, a tributary of Tassajara Creek, border the western and northeastern limits of the site. 145 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2014 Dublin Boulevard Extension Assessment District Assets Cash and investments Liabilities Due to bondholders Associated Community Action Program Assets Cash and investments Accounts receivable Liabilities Accounts payable Due to trustee Fallon Village Geologic Hazardous Abatement District Assets Cash and investments Accounts receivable Liabilities Accounts Payable Due to trustee Balance $499,322 $1803 Balance June 30, 2013 Additions Deductions June 30, 2014 $7,237 $882 $1 $85118 $7,237 $882 $1 $85118 $7,237 $882 $1 $89118 $73237 $882 $1 $89118 $194,085 $78,794 $115,291 184 184 $1945269 $78,978 $115,291 $15,845 $13,475 $25370 178,424 65,503 112,921 $194,269 $785978 $1155291 $663,203 $499,322 $1803 $1,1449462 19191 5,923 1,191 51923 $664,394 $505,245 $19,254 $1,150,385 $69362 $6,362 658,032 $505,245 12,892 $1,150,385 $664,394 $505,245 $12,892 $15150,385 IEArol CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 309 2014 (Continued) Schaefer Ranch Geologic Hazardous Abatement District Assets Cash and investments Accounts receivable Liabilities Accounts Payable Due to trustee Fallon Village Annex/Jordan Ranch Geologic Hazardous Abatement District Assets Due from trustee Liabilities Due to City Fallon Crossing (North Tassajara) Geologic Hazardous Abatement District Assets Cash and investments Accounts receivable Liabilities Accounts Payable Due to trustee Balance June 30, 2013 $897,207 Additions Deductions $443,876 1,902 $12,356 Balance June 30, 2014 $1,328,727 1,902 $897,207 $4453778 $12,356 $1.330,629 $105 $105 $897,207 445,673 $125356 1,330,524 $8975207 $445,778 $125356 $1,330,629 147 ','11 $1,800 911 911 K800 $900 $900 $4,665 1,492 M $1,800 $900 1,800 $51,946 $63157 $51,946 $63157 $51,946 $41 $56,570 1,492 $15533 $565570 $1,533 $565570 $63157 $51,946 $1,533 $563570 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 309 2013 (Continued) UM Balance Balance June 30, 2013 Additions Deductions June 30, 2014 Totals - All Agency Funds Assets Cash and investments $1,7669397 $996,026 $1095255 $2,6539168 Accounts receivable 2,867 7,825 2,867 7,825 Due from trustee 900 900 19800 $1,7705164 $104,751 $112,122 $2,6625793 Liabilities Accounts payable $229207 $105 $199837 $2,475 Due to City 900 900 1,800 Due to trustee 137399820 1,002,864 929284 2,6505400 Due to bondholders 73237 882 1 8,118 $1,770,164 $1,004,751 $1129122 $256625793 UM 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 Position by Component 2. Changes in Net Position 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. Ratio of Outstanding Debt by Type 2. Direct and Overlapping Debt 3. 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: 1. 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. I_' 2 City of Dublin Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) 2005 2006 2007 2008 2009 Primary government: Governmental activities: Invested in capital assets, net of related debt $ 383,667,187 $ 387,888,143 $ 399,631,407 $ 411,619,671 $ 423,474,384 Restricted 45,288,468 48,480,463 45,647,928 48,572,719 36,906,687 Unrestricted 52,176,440 57,766,785 61,789,687 68,456,077 661597,197 Total primary government $ 481,132,095 $ 494,135,391 $ 507,069,022 $ 528,648,467 $ 526,978,268 Data Source: City of Dublin Administrative Services Department Notes: The City of Dublin implemented GASB34 for the fiscal year ended June 30, 2002. Information prior to the implementation of GASB34 is not available. The significant increase in Capital Assets in Fiscal Year 2004 -2005 is due to a retroactive valuation recorded for the City's existing infrastructure in accordance with GASB 34. 150 2010 2011 2012 2013 2014 $ 436,857,107 $ 433,779,703 $ 433,548,888 $ 432,722,323 $ 445,529,366 25,004,384 21,453,867 36,7141724 52,548,095 60,808,540 70,203,471 761303,907 86,063,259 99,084,771 97,918,858 $ 532,064,962 $ 531,537,477 $ 556,326,871 $ 584,355,189 $ 604,256,764 151 City of Dublin Changes in Net Position M Last Ten Fiscal Years „ , (accrual basis of accounting) le 2005 2006 2007 2008 2009 MI Expenses: WO Governmental activities: General government $ 3,081,581 $ 4,940,586 $ 8,866,758 $ 7,790,286 $ 8,721,545 IP Public safety 19,047,262 20,314,535 22,306,240 23,282,634 23,880,635 1 Highways and streets 19,810,590 13,894,865 17,182,208 20,196,496 20,368,655 ila Health and welfare 1,722,224 1,887,417 1,816,800 1,689,353 1,869,428 Culture and leisure services 8,954,495 10,074,239 14,080,040 12,200,759 11,563,136 Community development 7,210,558 8,553,887 11,157,417 8,276,993 7,175,272 Total governmental activities 59,826,710 59,665,529 75,409,463 73,436,521 73,578,671 Program revenues: Governmental activities: Charges for services: General government 5,198 4,011 208,247 216,334 215,711 Public safety 1,197,925 1,270,233 2,284,955 1,301,328 1,545,935 Highways and streets 2,451,377 2,167,740 745,727 13,794 598,542 Health and welfare 1,541,361 2,092,566 2,483,619 3,301,877 3,050,719 Culture and leisure services 1,617,013 1,751,965 1,508,752 1,722,627 1,719,501 Community development 6,969,366 6,629,383 9,432,854 5,599,417 4,720,221 Operating grants and contributions 169,906 238,053 2,813,079 2,747,497 2,245,945 Capital grants and contributions 42,585,906 18,900,426 25,973,730 37,393,930 14,599,068 Total governmental activities 56,538,052 33,054,377 45,450,963 52,296,804 28,695,642 Net revenues(expenses): $(3,288,658) $ (26,611,152) $(29,958,500) $ (21,139,717) $(44,883,029) General revenues and other changes in net assets: Governmental activities: Taxes: Property taxes 14,167,079 16,891,670 20,266,216 22,229,039 23,311,587 Sales tax 14,152,987 14,363,863 14,025,869 14,225,661 12,832,417 Other taxes 3,181,939 3,343,943 3,508,587 3,504,501 2,180,846 Motor vehide tax,unrestricted 413,075 856,766 261,276 197,245 160,242 Investment income,unrestricted 2,704,647 2,505,911 4,053,187 4,399,908 4,266,601 Other general revenues 199,233 280,386 1,109,734 1,202,074 461,137 Total governmental activities 34,818,960 38,242,539 43,224,869 45,758,428 43,212,830 Changes in net assets $31,530,302 $ 11,631,387 $ 13,266,369 $ 24,618,711 $ (1,670,199) Data Source:City of Dublin Administrative Services Department I Notes: The City of Dublin implemented GASB34 for the fiscal year ended June 30,2002. Information prior to the implementation of I GASB34 is not available. I I P f 152 1 1 2010 2011 2012 2013 2014 $ 81396,199 $ 91322,322 $ 10,1161219 $10,265,476 $ 17,665,221 23,797,696 24,413,496 26,781,283 26,846,045 27,770,111 15,969,371 101142,946 6,7091217 71241,263 4,3051390 31615,077 12,749,042 146,204 31753,875 41057,796 10,757,355 91304,429 91804,128 10,772,868 9,0181161 5,1121469 51482,552 61089,415 91979,877 9,169,788 67,6487167 71,414,787 59,646,466 68,859,404 71,986,467 219,386 225,109 14Q418 142,353 153,544 11600,890 1,821,404 11061,352 21482,060 21164,085 81078,369 450,937 738,662 470,063 484,801 2,798,092 2,8741952 31063,223 31422,782 3,631,344 2,101,867 21214,407 1,909,812 2,463,146 2,753,911 31775,102 51546,417 91051,970 91540,241 1Q393,367 2,229,043 2,220,247 1,008,318 1,135,050 1,674,815 12,254,443 15,745,614 23,668,070 28,689,753 20,914,994 33,057,192 31,099,087 40,641,825 48,345,448 42,170,861 $(34,590,975) $ (40,315,700) $ (19,004,641) $(20513,956) $ (29,815,606) 22,287,783 21,918,484 22,246,360 23,590,102 25,286,308 12,183,267 12,969,119 14,9961932 15,359,340 171833,314 31201,219 3,798,515 4,295,675 51054,257 51427,627 141,221 250,974 758,016 536,047 865,719 (399,590) 853,147 11106,163 11079,419 11389,349 41938,165 316,785 39,677,669 40,552,558 43,794,035 48,542,274 49,717,181 $ 51086,694 $ 236,858 $ 24,789,394 $ 28,028,318 $ 19,901,575 153 City of Dublin Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Total general fund $ 80,456,475 $ 50,8961877 $ 58,299,753 $ 63,4121309 $ 62,123,358 All Other Governmental Funds Reserved 2005 2006 2007 2008 2009 General Fund Reserved $ 21275,433 $ 2,0801678 $ 51741,942 $ 51623,014 $ 51343,610 Unreserved, designated for: Advance to TVTD W. BART station contribution - - - - - Affordable Housing 11000,000 1,0001000 11000,000 11000,000 1,0001000 Authorized expenditures 321971,221 38,860,039 44,328,550 42,181,292 341474,209 Capital improvements 41,2391100 5,985,440 41258,539 81884,334 11,049,175 Cash Flow & Operation Stability - - - - - Catastrophic Loss & Business Recovery - - - - - Capital Improvements Projects Carryover - - - - - Compensated Absences - - - 744,041 791,582 Economic Uncertainty 21970,721 2,970,720 21970,722 2,970,722 51868,847 Emergency Communication System - - - - 210,000 Fire Retiree Medical - - - 500,000 750,000 Innovation & New Opportunities - - - - - Investment Market Value Adjustment - - - 1,5081906 21334,061 Operation Carryover - - - - 301,874 Service Continuity Obligation - - - - - Unreserved, undesignated - - - - - Non - Spendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - - - Total general fund $ 80,456,475 $ 50,8961877 $ 58,299,753 $ 63,4121309 $ 62,123,358 All Other Governmental Funds Reserved $ 44,948,468 $ 481140,467 $ 43,485,046 $ 50,7897419 $ 34,570,414 Unreserved, designated, reported in: Special revenue funds Capital projects funds Undesignated (21202,289) (11893,598) (11791,762) (1,837,021) (1,8411336) Non - Spendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - - - Total all other governmental funds $ 42,7461179 $ 4612461869 $ 41,6931284 $ 4819521398 $ 32,729,078 Total All Governmental Funds $123,2021654 $ 97,143,746 $ 99,993,037 $ 112,364,707 $ 94,852,436 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 categories for 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. IGY! 1 I I I2010 2011 2012 2013 2014 $ 5,922,446 $ - $ - $ - $ - 1,000,000 - - - - - 1,000,000 - - 3,960 - - - - 7,394,088 - - - - ' 8,860,000 - - - 8,420,000 - - 203,507 - - - - I 802,311 - - -- 5,868,847 1,000,000 - - 4,500,000 - - - - 13,000,000 - - - -- - - - 1,516,569 - - - 171,100 1,350,000 - - - - I - 4,096,768 3,433,886 2836,130 2,465,678 - - - 500,000 500,000 - 27,893,755 24,176,650 36,020,171 34,124,267 17,407,053 22,080,677 23,912 896 29,259,333 - 14,745,685 15,072,535 14,047,932 13,228,484 I $ 61,012,828 $ 64,143,261 $ 64,763,748 $ 77,317,129 $ 79,577,762 1 $ 25,004,384 $ - $ - $ - $ - I (3,168,929) - - - - - 21,453,867 38,073,638 53,646,702 61,710,448 I - (1,735,988) (1,358,914) (1,098,607) (923,409) $ 21,835,455 $ 19,717,879 $ 36,714,724 $ 52,548,095 $ 60,787,039 $ 82,848,283 $ 83,861,140 $101,478,472 $129,865,224 $ 140,364,801 1 I I I 155 City of Dublin Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Revenues: Property taxes Taxes other than property Intergovernmental licenses and permits Charges for services Investment income Use of property Fines and forfeitures Developer fees Special assessments Other revenues Total revenues Expenditures Current: General government Public safety Highways and streets Health and welfare Culture and leisure services Community development Capital outlay: General Health and welfare Community improvements Culture and leisure Parks Streets Debt service: Principal Total expenditures 2005 2006 2007 2008 2009 $14,167,079 16,891,670 20,266,213 22,229,039 23,306,302 17,572,000 18,014,431 17,967,499 18,1881593 15,436,466 3,312,079 21593,336 21845,936 31431,314 21393,153 3,520,141 31142,223 21572,069 1,784,644 1,623,029 6,623,303 7,090,105 91476,984 81101,935 7,759,628 21948,612 21859,433 51840,949 61101,736 51597,303 125,835 123,154 203,240 335,151 989,081 292,658 340,336 342,098 360,496 318,737 14,361,337 17,018,274 8,618,271 18,226,041 11875,841 744,100 645,230 716,144 797,520 826,717 954,949 826,715 960,534 2,497,249 31312,774 64,622,093 69,544,907 69,809,937 82,053,718 63,439,031 6,535,408 41983,006 51619,088 5,590,247 6,047,115 19,163,929 20, 542, 375 22 ,148,312 23,629,954 23,951,223 21272,310 2,536,127 21726,599 2,7191532 3,1681513 11734,787 11906,950 11626,197 11706,918 11888,631 5,377,134 5,948,563 6,874,596 71207,896 71621,663 7,4041619 81199,933 81173,711 81335,105 71364,651 11250,772 666,160 377,026 411,293 4,221,956 - - 75,526 - - 462,751 838,618 95,672 218,058 68,236 91237,426 10,1891487 101711,807 81820,229 91409,692 21828,616 7,1021450 5,532,110 111042,816 13,742,919 56,267,752 62,913,669 63,960,644 69,682,048 77,484,599 Excess (deficiency of revenues over (under) expenditures 81354,341 Other financing sources (uses): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures 1,336,275 (1,336,275) 61631,238 5,849,293 12,371,670 21,789 90,399 77,528 (21,789) (90,399) (77,528) $ 8,354,341 $ 6,631,238 $ 51849,293 0.0% 0.0% Data Source: City of Dublin Administrative Services Department Total expenditures 56,267,752 62,913,669 156 0.0% 63,960,644 $ 12,371,670 0.0% 69,682,048 (14,045,568) 26,232 (26,232) $ (14,045,568) 0.0% 77,484,599 2010 2011 2012 2013 2014 22, 286, 209 22, 067, 074 22 ,398,847 23,742,336 25,448,254 15,783,099 17,210,947 19,761,015 20,915,025 23,769,133 71951,237 31946,271 31962,572 4,534,748 21574,159 2,2601364 21752,748 41501,736 5,224,932 51944,985 71100,403 81743,460 10,331,501 11,979,079 12,326,848 11475,308 952,819 11068,138 (185,467) 1,101,634 1,491,413 978,642 659,857 580,507 1,591,784 312,778 303,595 284,993 326,027 323,601 41387,339 9,390,001 15,965,329 19,545,692 15,757,068 868,348 904,739 944,455 980,775 1,025,239 11778,477 4,135,091 41509,762 91134,201 21712,998 65,694,975 71,385,387 841388,205 96,777,855 92,575,703 8,957,744 71935,407 71001,850 71600,102 81411,507 24,241,160 24,546,456 26,298,962 26,643,549 27,381,497 2,985,311 31030,540 21768,068 31096,498 3,042,476 3,653,297 12,775536 41422,468 4,149,599 4,379,634 7,267,805 71223,808 8,248,229 81919,816 91349,729 51300,211 51609,603 7,362,732 81586,129 91102,734 742,754 599,965 61641,674 81866,096 13,316,472 82,333 328,418 213,777 81,234 21,497 - - 996,669 21324,586 9,451,657 10,706,350 31809,723 - - - 13,762,167 41513,072 2,959,555 41946,527 2,4031926 77,699,132 70,3721528 66,913,984 75,214,136 (12,004,157) 11012,859 17,474,221 21,5631719 25,777,410 91163,360 10,898,009 161338,838 (25,777,410) (91163,360) (10,754,898) (91515,805) 86,861,129 5,714,574 25,192,268 (20,3851523) 143,111 61823,033 41806,745 $ (12,004,157) $ 11012,859 $17,617,332 $28,386,752 $ 101521,319 0.0% 0.0% 0.0% 0.0% 0.0% 77,699,132 70,372,528 66,913,984 75,214,136 86,861,129 157 This Page Left Intentionally Blank CITY OF DUBLIN, CALIFORNIA Assessed Value of Taxable Property Last Ten Fiscal Years (Dollars in Thousands) Fiscal Year Real Property Ended Residential Commercial Industrial Unsecured/ Less: June 30 Property Property Property Other Property Exemptions Total Taxable Assessed Value City Wide Avg. Total Direct Tax Rate 2005 $3,730,424,115 $1,032,5525391 $154,758,385 $662,659,500 ($72,612,237) $5,507,782,154 0.2397% 2006 4252052225157 12052,701,438 162,1823398 65232792788 (77,0855570) 6,310,3002211 0.2390% 2007 52345,9375692 1,068,813,294 161,909,866 873,737,282 (80,274,178) 7337031232956 0.2387% 2008 5287095265565 12112,8373055 171,673,012 1,072,7342321 (78,1882899) 8,149,582,054 0.2385% 2009 6,203,330,781 1,241,301,664 1981082,746 1,032,449,487 (36,478,516) 8,638,686,162 0.2385% 2010 5286854885395 11326,4813267 212,939,326 983,4261713 (4928732361) 8,341,462,340 0.2386% 2011 51967,980,343 1,285,382,821 209,573,141 84306,092 (115,875,189) 8,1909747,208 0.2386% 2012 6,114,540,497 1,263,2071583 246,434,460 859,683,607 - 12022253737 8,363,640,410 0.2386% 2013 61378,930,469 1,330,1475064 245,481,519 948,5252966 - 112,296,063 8,79057882955 0.2380% 2014 721359260,308 1,336,760,537 246,334,563 15035,9902618 - 11120673996 9,643,278,030 0.2373% Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls, 2004 /05 through 2013/14 Note: Actual property value data not available in California. (1) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount by an annual calculation, to all the taxing entities within a tax rate area. (2) 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 Educaiton and net of Admin fees. 159 Fiscal Year 2004 -05 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 Source CITY OF DUBLIN, CALIFORNIA Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate per $100 of assessed value) City Direct Rates Overlapping Rates (1) Castro Valley Chabot -Las Positas Dublin Basic Total Bay Area Unified Community Unified Levy Direct Rapid Tansit School Bonds College Boards Bonds IA & B 1.00000 1.00000 1.00000 0.23970 0.23900 0.23870 f �IIIIIIIII =II�G�YiYI 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 0.23850 0.23860 0.23860 0.23860 0.23796 0.23730 0.00000 0.00480 0.00500 0.00760 0.00900 0.00570 0.00310 0.00410 0.00430 0.00750 0.05320 0.07180 0.08110 0.09720 0.09690 0.10230 0.10040 0.09890 0.09240 0.08510 0.01860 0.01580 0.01590 0.01640 0.01830 0.01950 0.02110 0.02140 0.02190 0.02140 0.03990 0.08170 0.08850 0.08500 0.07320 0.08160 0.10110 0.09700 0.09930 0.11470 HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls, 2004/05 through 2013/14 (1) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. These are voter approved levies in addition to the 1% State levy. (2) The City's share of the 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. 160 East Bay Flood Zone 7 Livermore Valley Total City's Share Regional State Water Joint Unified Direct & Overlapping of 1% Levy per Park Bonds School Board Tax Rate Proposition 13 0.00570 0.01140 0.07930 1.20810 0.2818 0.00570 0.01300 0.08300 1.27580 0.2818 0.00850 0.01510 0.06920 1.28330 0.2818 0.00800 0.01500 0.06260 1.29180 0.2818 0.01000 0.01690 0.06160 1.28590 0.2818 0.01080 0.02030 0.06740 1.30760 0.2818 0.00840 0.02500 0.06350 1.32260 0.2818 0.00710 0.03070 0.06270 1.32190 0.2818 0.00510 0.02280 0.06070 1.30650 0.2818 0.00780 0.02570 0.05960 1.32180 0.2818 161 Taxpayer Turst NOIP Dublin LP 4800 Tassajara Road Apartments Investors Dublin Station Owner, LLC Bere Island Properties I, LLC Tishman Speyer Archstone Smith Emerald BIT Holdings Sixty - Three, Inc KB Home South Bay, Inc Dublin Corporate Center Kaiser Foundation Hospitals Ross Dress for Less, Inc. Toll California II / Toll Dublin LLC Shops at Waterford LLC BIT Holdings Fixty Six Inc. Acre Dublin LLC Chang S. Lin, Et Al. Bere Island Properties I LLC Et. Al. Bit Investment Eleven Limited Partnership Capital Pacific Security Trust Cisco Systems Inc. Wells Reit II - Emerald Point Subtotal CITY OF DUBLIN, CALIFORNIA Principal Property Tax Payers Current year and Nine Years Ago (Dollars in thousands) $ 871,164,717 Source: HDL Coren & Cone and Alameda County Assessor Comined Tax Rolls 162 2004 -05 Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value 165,032,205 2013 -14 2.96% 117,592,744 Percentage 2.11% of Total City Taxable 2.05% Taxable Assessed 5 Assessed Value Rank Value $ 15231085352 1 1.61% 113,981,488 2 1.21% 8836405918 3 0.94% 87,1965783 4 0.92% 81,24504 5 0.86% 74,641,655 6 0.79% 73,9553233 7 0.78% 7250005000 8 0.76% 655811,994 9 0.70% 61,5825600 10 0.65% $ 871,164,717 Source: HDL Coren & Cone and Alameda County Assessor Comined Tax Rolls 162 2004 -05 Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value 165,032,205 1 2.96% 117,592,744 2 2.11% 11454925789 3 2.05% 105,376,216 5 1.89% 995325,001 6 1.78% 76,351,399 7 1.37% 6456509000 9 1.16% 63,2235524 10 1.13% 565069,435 1.00% 49,3879612 0.89% 9.22% 91155005925 16.34% CITY OF DUBLIN, CALIFORNIA Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Total Taxable Collections within Fiscal Year of Levy: Ended Assessed Total Gross Less Prior Year Less Net Percent June 30 Value Tax rate Tax Levy (1) Collections (2) and Penalties In -Lieu Collection (3) of Levy 2005 $5,5075782,154 0.2397 $13,202,154 $14,054,547 ($298,320) ($252785846) $11,477,381 87% 2006 6,3105300,211 0.2390 15,081,618 163775,906 (3783910) (25599,432) 13,797,564 91% 2007 7,370,123,956 0.2387 17,592,486 21,199,390 (368,414) (350343577) 17,7965399 101% 2008 81149,582,054 0.2385 19,436,753 233229,544 (619,886) (353529904) 19,256,754 99% 2009 8,638,686,162 0.2385 2003,266 24,388,892 (1,0505294) (355245237) 19,814,361 96% 2010 8,341,462,340 0.2386 19,902,729 23517,751 (1,073,440) (334015946) 19,042,366 96% 2011 8,190,747,208 0.2386 19,5437123 23,503540 (729,274) (33340,371) 19,4333895 99% 2012 8,363,640,410 0.2386 19,955,646 23,805,376 (571,013) (33410,185) 19,824,178 99% 2013 8,790,788,955 0.2380 20,918561 25,420,484 (598,163) (33584,445) 21,237,877 102% 2014 9,643,278,030 0.2373 22,883,947 27,459,463 (511,177) (3,932,136) 23,016,150 101% Source: Alameda County Office of the Auditor - Controller, HDL Coren & Cone, and City of Dublin Administrative Services Department (1) Total Taxable Assessed Value at Citywide Average Total Direct Tax Rate: this is the levy after the ERAF deduction (2) Gross Collection includes Secured, Unsecured, Unitary /Supplemental, Penalties, and In -Lieu Property Tax (3) Net Collection removes Prior Year Collections, Penalties, and In -Lieu Property Taxes 163 CITY OF DUBLIN. CALIFORNIA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Fiscal Year Ended June 30 Governmental Activities Business -Type Notes, Capital General Certificates Lease and Total Obligation of Mortgage Governmental Bonds ?articipatioi Payable Activities Bonds Activities Total Primary Other Governments Percentage of Personal income Debt Per Capita 2005 2006 2007 2008 2009 2010 2011 2012 2013 $69755,824 $6,755,824 $6,7555824 $156 2014 69128,806 6,128,806 691285806 N/A Sources: (1) United States Census Bureau, most recent data available November 2014. Personal Income at June 30, 2014 not available. (2) City of Dublin Administrative Services Department. I.� CITY OF DUBLIN Direct and Overlapping Debt June 30, 2014 Total Property Tax Assessed Value of Taxable Property DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: Bay Area Rapid Transit District Chabot -Las Positas Community College District Dublin Joint Unified School District East Bay Regional Park District City of Dublin 1915 Act Bonds California Statewide Communities Development Authority 1915 Act Bonds • • 1: • VIII:. •Z•1i103K111U2Q •111FAM .i.LW.Ycf*&Wj,5jIQIIs0);I:b OVERLAPPING OTHER DEBT Alameda County General Fund Obligations Alameda County Pension Obligations Alameda- Contra Costa Transit District Certificates of Participation TOTAL OVERLAPPING GENERAL FUND DEBT COMBINED TOTAL DEBT (2) RATIOS TO ASSESSED VALUATION: DirectDebt ........... ............................... ..........................0.00% Total Direct and Overlapping Tax and Assessment Debt......... 3.14% Combined Total Debt ............................. ..........................3.61% Source: California Municipal Statistics, Inc. $ 9,643,278,030 Percentage Outstanding Debt Applicable to Estimated Share of 6/30/2014 City of Dublin Overlapping Debt $ 648,275,000 1.8350% $ 1105,846 432,3373431 10.543% 45,5813335 238,7781143 99.977% 238,723,224 202,2101000 2.805% 5,671,991 100.0% 1,015,935 100.0% 1,015,935 302,888,331 893,799,500 4.635% 41,427,607 87,787,424 4.635% 43068,947 28,155,000 0.126% 355475 45,532,029 348,420,360 Notes: (1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non - bonded capital lease obligations. 165 Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit My Walla DIU a iwwm eniwIaxN►1 /_1 Legal Debt Margin Information Last Ten Fiscal Years (Dollars in Thousands) Fiscal Year 2004 -05 2005 -06 2006 -07 2007 -08 $ 209,264,790 $ 2393526,967 $ 2799389,930 $ 2091264,790 $ 239,526,967 $ 27993895930 0.0% (1) Source: City of Dublin Administrative Services Department 0.0% 0.0% $ 308,541,411 $ 308,541,411 (2) The legal debt margin for the City of Dublin, California, is calculated using a debt limit of 15 percent of the assessed value of property within the City limits. (Gov Code of State of California) (3) The government code provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981 -82 fiscal year, each parcel in now assessed at 100% of market value (as of the most recent change in ownership parcel). in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from 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. .: 0.0% 2008 -09 $ 325,3185675 Legal Debt Margin Calculation for Fiscal Year 2013 -14 Assessed value (net) - June 30, 2014 (1) Debt limit: 15% of assessed value Less total bonded debt, general obligation Legal debt margin (2) Conversion Percentage for Calculation of Debt Limit (3) $ 95643,2783030 1,44634913705 $ 1,446,491,705 25% $ 3619622,926 Fiscal Year 2009 -10 2010 -11 2011 -2012 2012 -13 2013 -14 $ 314,675,089 $ 311,498,340 $ 3183144,981 $ 333,8653688 $ 361,622,926 $ 3253318,675 $ 314,675,089 $ 311,4987340 $ 318,144,981 $ 333,865,688 $ 361,622,926 0.0% 0.0% 0.0% 167 0.0% ,1 1 ' 0.0% CITY OF DUBLIN, CALIFORNIA Demographic And Economic Statistics Last Ten Calendar Years (Dollars in Thousands) 2004 Per Capita $ 1,3195087 Rank in Size Fiscal City Personal Personal Unemployment of Year Population (1) Income, in thousands (1) Income (1) Rate (2) California Cities (1) 2004 38,263 $ 1,3195087 $ 34,474 3.5% 193 2005 39,774 154775082 37,137 3.1% 192 2006 413848 157199669 41,093 2.6% 190 2007 43,563 1,904,687 43,723 2.8% 184 2008 46,869 2,0775720 441330 3.7% 180 2009 47,953 2,0343463 421426 6.5% 179 2010 45,672 19700,094 34,823 6.9% 179 2011 465785 1,6775944 351865 6.3% 182 2012 49,890 158199688 361474 4.2% 175 2013 53,462 253213908 43,431 3.5% 181 Sources: (1) United States Census Bureau, most recent data available November 2014 (2) Bureau of Labor Statistics - Unemployement Rate as of June 30, 2014 •M Fiscal Year Ended 30-Jun 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 CITY OF DUBLIN, CALIFORNIA Property Value, Construction, and Bank Deposits Last Ten Fiscal Years Total Number of Commercial Residential Building Permits Construction Value Construction Value Issued (1) (1) (1) 1275 $ 563481,612 $ 283,8171542 1199 96,389,754 2071862,999 1214 561832,941 1783094,884 1333 18,256,381 59,647,886 1101 23,968,805 63,2421418 1345 17,4079699 124,9305163 1471 40,0051124 1655324,045 2110 285775,536 344,927,791 2425 215139,964 3861984,935 2443 57,8125261 32215113777 Bank Deposits (2) $ 566,4415000 9155006,000 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 thru Dec. 169 985,8355000 981168500 1,094,8693000 1,0513570,000 1,28111833000 N/A N/A N/A This Page Left Intentionally Blank CITY OF DUBLIN, CALIFORNIA Principal Employers Current Year and Prior Year (Dollars in thousands) 2013 Estimated Number of Employer Employees United States Government & Federal Correction Institute 25100 Ross Stores Headquarters N/A Zeiss Meditec 535 SAP (Formerly: Sybase Corporation) 604 Dublin Unified School District 755 Micro Dental Laboratories 242 County of Alameda 465 Safeway 284 Taleo N/A City of Dublin 208 Franklin Templeton Investments 200 Target Stores N/A Subtotal 5,393 Total City Day Population Source: City of Dublin Economic Development Department 171 2014 Estimated Number of Rank Employees Rank 1 2,100 1 N/A 15200 2 4 535 5 3 604 4 2 733 3 8 242 8 5 465 6 7 284 9 N/A N/A N/A 9 221 10 10 N/A N/A N/A 412 7 6,796 CITY OF DUBLIN CALIFORNIA Full -Time Equivalent City and Contract Government Employees by Function Last Ten Fiscal Years Public Safety Police 54.00 57.00 59.00 61.00 Fire 40.89 40.25 40.25 40.75 Disaster Preparedness 0.33 0.33 0.33 0.50 Transportation Public Works 6.50 6.50 7.50 8.50 Streets Maintenance 9.46 10.14 10.57 10.73 Health and welfare Environmental Housing Adopted for Fiscal Year Ended June 30, 1.75 2005 2006 2007 2008 Function 0.33 2.00 2.00 2.00 General government 0.51 0.51 0.48 0.45 City Manager 6.00 7.17 6.25 6.50 Administrative Services 11.50 11.50 11.50 12.00 Central Services & Building Management 3.40 3.43 3.75 3.51 Public Safety Police 54.00 57.00 59.00 61.00 Fire 40.89 40.25 40.25 40.75 Disaster Preparedness 0.33 0.33 0.33 0.50 Transportation Public Works 6.50 6.50 7.50 8.50 Streets Maintenance 9.46 10.14 10.57 10.73 Health and welfare Environmental Housing 1.75 14.00 1.75 1.75 1.75 Waste Management 0.33 9.53 0.33 0.33 0.33 Culture and leisure services Parks Community Services 14.00 14.00 14.00 15.50 Park Maintenance 8.70 9.10 9.53 9.55 Parks/ Facilities Management 2.00 2.00 2.00 2.00 Library Services 0.51 0.51 0.48 0.45 Heritage & Cultural Arts 2.31 2.30 2.32 2.53 Community Development Planning & Building 32.00 34.50 33.90 32.50 Economic Development 1.00 1.00 1.00 1.00 Engineering 13.35 13.35 13.35 13.35 Total 208.03 215.16 217.81 222.45 Source: City of Dublin Administrative Services Department Note: Include Full Time, Part Time, Temporary, and Contract Employees 172 for Fiscal Year Ended June 6.50 6.00 6.00 6.50 6.50 6.50 12.00 11.50 11.50 11.50 11.50 11.75 3.52 3.18 3.32 3.57 3.09 3.45 61.00 61.00 59.00 59.00 59.00 60.00 40.78 39.77 39.74 39.64 39.64 39.64 0.50 0.50 0.46 0.46 0.59 0.59 8.50 6.45 5.45 5.45 5.45 5.48 9.93 9.18 9.85 9.85 10.08 10.32 2.50 2.50 3.00 2.59 2.59 2.90 3.20 3.00 2.25 2.25 2.50 1.33 0.33 0.33 0.33 1.08 1.08 16.00 16.60 15.60 15.55 16.25 15.50 9.92 9.65 8.94 9.36 10.10 11.65 2.00 2.00 2.00 2.25 2.25 3.45 0.43 0.39 0.42 0.42 0.37 0.37 2.49 2.47 3.59 3.26 3.70 5.92 27.10 19.05 19.25 20.95 22.45 23.45 1.50 1.50 1.50 2.50 2.50 3.50 12.35 9.00 8.00 9.00 9.00 9.00 218.75 204.27 200.45 204.84 208.39 216.74 173 CITY OF DUBLIN CALIFORNIA Operating Indicators by Function/Program Last Ten Fiscal Years Fire: Emergency calls 1,742 Fiscal Year 1,978 Function/Program 2005 2006 2007 2008 Police: 858 15006 1,049 922 Calls for Service 48,388 465197 41,306 41,652 Citations Issued 10,911 105595 11,676 11,768 Arrests 1,631 2,020 1,668 2,021 Fire: Emergency calls 1,742 15771 13780 1,978 Inspections 35249 45122 4,048 2,213 Building Plan Reviews and Consultations 858 15006 1,049 922 Public Works: Bike Path Maintenance (hours) 783 726 810 775 Street Sign Maintenance (number of signs) 353 435 427 135 Curb Painting (linear feet) 1,404 3,991 45006 2,468 Replace Street Asphalt (square feet) 7,500 7,950 13,800 33,000 Street Sweeping (curb miles) 506 5,730 5,927 6,075 Parks and Community Services: Museum Visistors 800 13350 2,140 2,225 Afterschool Recreation (participants /day) 129 138 153 180 Preschool Classes Participants 224 285 254 399 Youth Basketball League Participants 547 580 588 570 Senior Center Average Daily Attendance 110 149 180 185 Community Development: Planning Applications 73 59 55 55 Building Permits 1,837 1,855 1,910 1,333 Building Inspections 339534 34,244 36,071 25,602 Source: City of Dublin 174 Fiscal Year 2009 2010 2011 2012 2013 2014 383983 381125 39,474 385580 345966 345567 75086 10,101 93023 93229 83699 8,530 15620 11556 1,624 1,542 13419 1,934 15969 11999 2,244 25323 25688 2,859 1,952 3,576 2,833 33308 33538 3,664 511 474 498 1,319 15492 1,561 775 697 603 625 668 749 74 325 258 313 205 426 25395 6,607 5,464 6,523 6,400 55808 29,000 30,000 57,000 26,000 375000 18,112 6,341 51083 55294 5,519 5,901 5,931 25040 35530 35680 4,415 8,612 85256 167 176 240 27 228 322 402 690 628 610 571 430 591 772 710 729 812 911 190 198 206 217 211 220 64 62 66 62 77 59 1,101 1,345 1,471 21110 25425 2,443 121302 83933 11,308 15,961 26,045 223345 175 CITY OF DUBLIN, CALIFORNIA Capital Asset Statistics by Function/Program Last Ten Fiscal Years Function/Program Public safety: Police stations Fire stations Public works: Street Lights Miles of Streets Miles of curbs Traffic Signals City Street Trees City Landscape (acres) Parks and recreation: Number of Community Facilities Number of City Parks Acres of City Parks Acres of Open Space Fiscal Year 2005 2006 2007 2008 1 1 1 1 3 3 3 3 3,469 35752 35972 45193 81 81 104 93 202 202 217 217 62 67 75 79 55955 6,084 61084 604 43 45 45 45 7 7 7 7 11 11 11 16 109 109 109 122 122 126 126 122 Source: City of Dublin *The Street Lights count for FY2011 is the same as reported in FY2010. Comparable data is not available at the time the report is prepared. 176 2009 2010 1 1 3 3 4,479 4,526 103 105 218 222 81 85 6,499 75054 45 57 Fiscal Year 2011 2012 2013 2014 1 1 1 1 3 3 3 3 31780 4,281 45354 45513 113 115 116 120 223 237 242 248 85 89 91 93 75418 75268 7,408 71477 57 65 67 69 7 7 7 7 7 7 16 16 18 18 18 20 201 201 209 209 209 220 125 125 125 125 125 125 177 CITY OF DUBLIN, CALIFORNIA Top 25 Sales Tax Producers 2013 -2014 Business Name Alcosta Shell Arco AM PM Mini Mart Bed Bath & Beyond Best Buy Calpine Operating Services Carl Zeiss Opthalmic Systems Dicks Sporting Goods Dublin Buick /Cadillac /Chevrolet/GMC/KIA Dublin Honda Dublin Hyundai Dublin Mazda Dublin Nissan Dublin Toyota Dublin Volkswagen Epicor Software Graybar Electric Lowes Safeway Safeway Gas Shell Service Sky River RV Stoneridge Chrysler /Jeep/Dodge Target TJ Maxx Toys R Us Business Category Service Stations Service Stations Home Furnishings Electronics /Appliance Stores Power Producers Medical/Biotech Specialty Stores Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Office Supplies/Furniture Electrical Equipment Lumber/Building Materials Grocery/Liquor Store Service Stations Service Stations Trailers/RVs Motor Vehicle Dealer Discount Department Store Family Apparel Specialty Stores Source: Hinderliter, de Llamas & Associates, State Board of Equalization 178 CITY OF DUBLIN, CALIFORNIA Miscellaneous Statistical Data June 30, 2014 General Date of Incorporation February 1, 1982 Form of Government Council/ Manager Total Population (Estimated per the California Department of Finance, 2013) 49,890 Number of Registered Voters 208.39 Employees, City, and Contract (Full Time Equivalent) 216.74 Area (Square Miles) 14.62 Parks and Recreation Parks 20 Acres in Parks 220 Acres in Open Space 125 Public Education Elementary Schools 6 Middle Schools 2 High School 1 Continuation High School 1 Education Center 1 School Enrollment 8,296 Police Protection Number of Stations 1 Police Personnel (Full Time Equivalent) 60 Fire Protection Number of Stations 3 Fire Personnel (Full Time Equivalent) 39.64 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 179 This Page Left Intentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS FOR THE YEAR ENDED JUNE 30,2014 This Page Left Intentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS For the Year Ended June 30,2014 Table of Contents P, age Memorandum on Internal Control....................................................................................................l Scheduleof Other Matters........................................................................................................3 RequiredCommunications................................................................................................................7 SignificantAudit Findings.......................................................................................................7 AccountingPolicies............................................................................................................7 Unusual Transactions, Controversial or Emerging Areas................................................7 Estimates.............................................................................................................................7 Disclosures.........................................................................................................................8 Difficulties Encountered in Performing the Audit.............................................................8 Corrected and Uncorrected Alisstatements.......................................................................8 Disagreements with Management......................................................................................8 Management Representations............................................................................................8 Management Consultations with Other Independent Accountants................................8 Other Audit Findings and Issues.......................................................................................8 Other Information Accompanying the Financial Statements................................................9 This Page Left Intentionally Blank F/ MAZE & ASSOCIATES MEMORANDUM ON INTERNAL CONTROL To the City Council of the City of Dublin, California In planning and performing our audit of the basic financial statements of the City of Dublin, 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 that are appropriate in the circumstances 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 City's financial statements will not be prevented, or detected and corrected on a timely basis. 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 material weaknesses. In addition, because of inherent limitations in internal control, including the possibility of management override of controls,misstatements due to error or fraud may occur and not be detected by such controls. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified. 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 Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties. 4 Mt4 Pleasant Hill,California November 21,2014 T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue,Suite 215 E maze @mazeassociates.com Pleasant Hill,CA 94523 1 w mazeassociates.com This Page Left Intentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS 2014-01: Bank Signature Cards Criteria: Signature cards for the bank and investment accounts should be updated immediately after there is a change in authorized signers. Condition: During our examination of the City's signature cards,we found that the former City Manager (departed in April 2014)was still listed as an authorized signer for the City's investments accounts as of June 24,2014. Effect: Keeping ex-employees as authorized signers on the City's investment accounts exposes the City to the risk of misappropriation of City's assets Cause: The City delayed the update of the signature cards until after the former Finance Manager left the City on June 12,2014 so that all changes would be reflected on the new signature cards. Recommendation: We recommend that the City review all of its signature cards immediately to ensure that all authorized signers are current. In addition, a step should be added to the employee departure checklist to ensure that outside parties (such as banks, investment advisors, bond trustees) are informed that the departed employee no longer represents the City immediately after the departure occurs. Management Response: The City has updated all signature cards with current and appropriate staffmg. Controlling signature cards has been added to the Administrative Services Department's portion of the City's internal on/off-boarding process to ensure that timely changes are made to signature cards in the future. 2014-02: Review of Payroll Registers Criteria: Monitoring is an important component for internal control structure as it involves evaluating the effectiveness of controls on an ongoing basis and taking remedial actions when necessary. Condition: As part of the City's internal control procedures, until her departure, the Finance Manager was responsible for reviewing the payroll registers after each payroll run. During our audit,we selected three payroll registers and found that two of them (for the pay periods ending January 10,2014 and May 16,2014)had no indication of review. Effect: Without physical evidence of the review, the City cannot monitor the effectiveness of such control procedure. Cause: We were unable to determine the cause of this issue as the Finance Manager has since departed the City. Recommendation: To demonstrate that good internal controls are in place in the City,the employee who reviews the payroll register should sign or initial on the face of the document to denote a review has taken place. Management Response: The Administrative Services Department has implemented a procedure by which the payroll reviewer stamps and signs, in the same location, the bi-weekly payroll report. This action now serves as the formal review and approval of payroll. 3 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in fiscal year 2014-15. We have cited them here to keep you abreast of developments: GASB 68-Accounting and Financial Reporting for Pensions (an amendment of GASB 27) This Statement will have material impact on the City's financial statements. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. This Statement establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources, and expense/expenditures. For defined benefit pensions,this Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. In financial statements prepared using the economic resources measurement focus and accrual basis of accounting, a single or agent employer that does not have a special funding situation is required to recognize a liability equal to the net pension liability. The net pension liability is required to be measured as of a date no earlier than the end of the employer's prior fiscal year(the measurement date), consistently applied from period to period. Note disclosure and required supplementary information requirements about pensions also are addressed. Distinctions are made regarding the particular requirements for employers based on the number of employers whose employees are provided with pensions through the pension plan and whether pension obligations and pension plan assets are shared. The following are the major impacts: • This Statement requires the liability of employers and nonemployer contributing entities to employees for defined benefit pensions net pension liability)to be measured as the portion of the present value of projected benefit payments to be provided through the pension plan to current active and inactive employees that is attributed to those employees' past periods of service total pension liability),less the amount of the pension plan's fiduciary net position. • Actuarial valuations of the total pension liability are required to be performed at least every two years, with more frequent valuations encouraged. If a valuation is not performed as of the measurement date,the total pension liability is required to be based on update procedures to roll forward amounts from an earlier actuarial valuation (performed as of a date no more than 30 months and 1 dayprior to the employer's most recent year-end). • The actuarial present value of projected benefit payments is required to be attributed to periods of employee service using the entry age actuarial cost method with each period's service cost determined as a level percentage of pay. The actuarial present value is required to be attributed for each employee individually, from the period when the employee first accrues pensions through the period when the employee retires. 4 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS GASB 69–Government Combinations and Disposals of Government Operations This Statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. As used in this Statement, the term government combinations includes a variety of transactions referred to as mergers, acquisitions, and transfers of operations. GASB 71 - Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68 The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or non-employer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. Statement 68 requires a state or local government employer (or non-employer contributing entity in a special funding situation) to recognize a net pension liability measured as of a date (the measurement date) no earlier than the end of its prior fiscal year. If a state or local government employer or non- employer contributing entity makes a contribution to a defined benefit pension plan between the measurement date of the reported net pension liability and the end of the government's reporting period, Statement 68 requires that the government recognize its contribution as a deferred outflow of resources. In addition, Statement 68 requires recognition of deferred outflows of resources and deferred inflows of resources for changes in the net pension liability of a state or local government employer or non-employer contributing entity that arise from other types of events.At transition to Statement 68,if it is not practical for an employer or non-employer contributing entity to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions, paragraph 137 of Statement 68 required that beginning balances for deferred outflows of resources and deferred inflows of resources not be reported. Consequently, if it is not practical to determine the amounts of all deferred outflows of resources and deferred inflows of resources related to pensions, contributions made after the measurement date of the beginning net pension liability could not have been reported as deferred outflows of resources at transition. This could have resulted in a significant understatement of an employer or non-employer contributing entity's beginning net position and expense in the initial period of implementation. This Statement amends paragraph 137 of Statement 68 to require that, at transition, a government recognize a beginning deferred outflow of resources for its pension contributions, if any,made subsequent to the measurement date of the beginning net pension liability. Statement 68, as amended, continues to require that beginning balances for other deferred outflows of resources and deferred inflows of resources related to pensions be reported at transition only if it is practical to determine all such amounts. The provisions of this Statement are required to be applied simultaneously with the provisions of Statement 68. 5 This Page Left Intentionally Blank MAZE & ASSOCIATES REQUIRED COMMUNICATIONS Honorable Mayor and Members of the City Council of City of Dublin, California We have audited the basic financial statements of the City of Dublin for the year ended June 30, 2014. Professional standards require that we communicate to you the following information related to our audit under generally accepted auditing standards and,Government Auditing Standards. Significant Audit Findings Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Dublin are described in Note 1 to the financial statements. The following pronouncements became effective, but did not have a material effect on the financial statements: GASB 66 — Technical Corrections-2012—an amendment of GASB Statements No. 10 and No. 62 GASB 70--Accounting and Financial Reporting for Nonexchange Financial Guarantees Unusual Transactions, Controversial or Emerging Areas We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus.All significant transactions have been recognized in the financial statements in the proper period. Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected.The most sensitive estimate(s) affecting the City's financial statements was: • 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 in determining that it is reasonable in relation to the financial statements taken as a whole. • Accrued compensated absences are 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. T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue,Suite 215 E maze @mazeassociates.com Pleasant Hill, CA 94523 7 «mmazeassodates..corn Disclosures The financial statement disclosures are neutral,consistent,and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all/certain such misstatements. 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. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in a management representation letter dated November 21,2014. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts.To our knowledge,there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 8 Other Information Accompanying the Financial Statements With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. With respect to the required supplementary information accompanying the financial statements, we 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 did not express an opinion nor 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. The Introductory and Statistical Sections included as part of the Comprehensive Annual Financial Report have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly,we did not express an opinion nor provide any assurance on them. This information is intended solely for the use of City Council and management and is not intended to be, and should not be,used by anyone other than these specified parties. P(�oy. 4 44 0(;A� Pleasant Hill,California November 21,2014 9 This Page Left Intentionally Blank CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION- MEASURE B FUNDS FOR THE YEAR ENDED JUNE 30,2014 This Page Left Intentionally Blank CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS For the Year Ended June 30,2014 Table of Contents Page Independent Auditor's Report............................................................................................................. 1 Financial Statements CombinedBalance Sheet..................................................................................................................3 Combined Statement of Revenues,Expenditures and Changes in Fund Balance..........................4 Notes to Financial Statements..........................................................................................................5 Independent Auditor's Report On Measure B Compliance.............................................................9 This Page Left Intentionally Blank t & ASMAZE S OCiA 1 EJ INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council of the City of Dublin City of Dublin, California Report on Financial Statements We have audited the accompanying 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, 2014, and the related notes to the financial statements, which collectively comprise the Measure B Funds' basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions 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 applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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 positions of the City and the results of its operations in conformity with generally accepted accounting principles. T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue,Suite 215 e maze@mazeassociates.com Pleasant Hill, CA 94523 1 w mazeassociates.com Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure B Funds of the City as of June 30, 2014, and the change in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 21, 2014, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. IlAt6ty, I IAo " Pleasant Hill, California November 21,2014 2 City of Dublin Alameda County Transportation Commission-Measure B Funds Combined Balance Sheet June 30,2014 Special Revenue Funds Measure B Measure B Local Bike and Streets Pedestrian Total ASSETS Cash and investments $ 754,115 $ 36,240 $ 790,355 Direct Local Distribution Program Receivable 62,204 21,896 84,100 Total assets 816,319 58,136 874,455 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 5,356 $ 5,356 Total liabilities - 5,356 5,356 Fund Balances: Restricted 816,319 52,780 869,099 Total fund balances 816,319 52,780 869,099 Total liabilities and fund balances $ 816,319 $ 58,136 $ 874,455 See accompanying Notes to Financial Statements 3 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 30,2014 Special Revenue Funds Measure B Measure B Local Bike and Streets Pedestrian Total REVENUES: Direct Local Program Distribution Allocation $ 385,015 $ 135,524 $ 520,539 Interest 4,044 91 4,135 Total revenues 389,059 135,615 524,674 EXPENDITURES: Current: Highway and Streets - 58,049 58,049 Capital outlay: Street Overlay Program 445,889 - 445,889 Street Slurry Seal Programs - 54,789 - W.Dublin Bart Station/Golden Gate Dr. 1,012 - 1,012 Total expenditures 446,901 112,838 504,950 CHANGE IN FUND BALANCES (57,842) 22,777 19,724 FUND BALANCES: Beginning of year,as restated(Note 1D) 874,161 30,003 904,164 End of year $ 816,319 $ 52,780 $ 923,888 See accompanying Notes to Financial Statements 4 CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS NOTES TO FINANCIAL STATEMENTS For the year ended June 30,2014 NOTE 1-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 Funds 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 Funds 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. D. Restatement of Beginning Fund Balance Beginning fund balance has been adjusted for$23,490 due to reimbursement of fiscal year 2012-13 project expenditures from other agency, not direct distribution from Alameda County Transportation Commission. 5 CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS NOTES TO FINANCIAL STATEMENTS For the year ended June 30,2014 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. NOTE 3—RECEIVABLES 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 30,2014. INOTE 4—MEASURE B FUNDS 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: • Highway and Streets (Public Work Admin) - Bicycle Master Plan Program Implementation and update of 2007 Bikeway and Pedestrian Mater Plan. • W. Dublin BART Station/Golden Gate Drive - Measure B provided funding associated with improvements and enhancements along Golden Gate Drive from Dublin Boulevard to the West Dublin/Pleasanton BART station. • Street Overlay Program-Measure B provided funding for the replacement of asphalt overlay on streets throughout the City and prolongs the useful life of the pavement. The scope of work includes removing and replacing failed pavement,placing asphalt concrete overlay and restriping the street. From a pool of funds held by the County, Certain additional portion 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. 6 CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS NOTES TO FINANCIAL STATEMENTS For the year ended June 30,2014 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. 7 This Page Left Intentionally Blank MAZE & ASSOCIATES INDEPENDENT AUDITOR'S REPORT ON MEASURE B COMPLIANCE To the Honorable Members of the City Council City of Dublin, California Report on Compliance for Measure B Funds We have audited, in accordance with the 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, the basic financial statements of the Measure B Funds of the City of Dublin(City), California, as of and for the year ended June 30, 2014 and the related notes to the financial statements, and have issued our report thereon date November 21,2014. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the Measure B funds based on our audit of the types of compliance requirements referred to above. 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 requirements specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Those standards and requirements 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 Measure B Funds 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 on compliance for the Measure B Funds. However, our audit does not provide a legal determination of the City's compliance. Opinion on Measure B Funds In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on Measure B Funds for the year ended June 30,2014. T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue,Suite 215 E maze @mazeassociates.com Pleasant Hill,CA 94523 9 w mazeassociates.com Report on Internal Control Over Compliance Management is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on Measure B Funds to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the Measure B Funds and to test and report on internal control over compliance, 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. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of Measure B Funds on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of Measure B Funds will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of Measure B Funds that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance 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 compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements, specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission.Accordingly,this report is not suitable for any other purpose. *Se 4L � .VtLA Pleasant Hill,California November 21,2014 10 CITY OF DUBLIN,CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE(VRF) MEASURE F PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2014 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 30,2014 Table of Contents Page Independent Auditor's Report 1 Financial Statements: Balance Sheet 3 Statement of Revenues,Expenditures and Changes in Fund Balance 4 Notes to Financial Statements 5 Independent Auditor's Report on Vehicle Registration Fee(VRF)Measure F Compliance 7 This Page Left Intentionally Blank W\ MAZE T INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Dublin,California Report on Financial Statements We have audited the accompanying financial statements of the Alameda 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, 2014, and the related notes to the financial statements,which collectively comprise the Measure F Program's basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements hi accordance with accounting principles generally accepted in the United States of America;this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement,whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions 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 applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements hi order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly,we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. As discussed in Note 2 to the financial statements,the financial statements referred to above present only the Measure F Program and are not intended to present fairly the financial positions of the City and the results of its operations in conformity with generally accepted accounting principles. T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue,Suite 215 e maze@mazeassociates.com Pleasant Hill,CA 94523 1 w mazeassociates.com Opinions In our opinion,the financial statements referred to above present fairly,in all material respects,the financial position of the Measure F Program of the City as of June 30,2014,and the change in financial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated November 21, 2014, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. *Vie- i i34o 1,t3 Pleasantilill,California November 21,2014 2 City of Dublin Alameda County Transportation Improvement Authority-Vehicle Registration Fee Balance Sheet June 30,2014 Vehicle Registration Fee Special Revenue Fund ASSETS Cash and investments $ 102,417 Direct Local Distribution Program Receivable 42,373 Total assets $ 144,790 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 59,312 Total liabilities 59,312 Fund Balances: Restricted 85,478 Total fund balances 85,478 Total liabilities and fund balances $ 144,790 See accompanying Notes to Financial Statements 3 City of Dublin Alameda County Transportation Improvement Authority -Vehicle Registration Fee Statement of Revenues, Expenditures and Changes In Fund Balance For the year ended June 30,2014 Vehicle Registration Fee Special Revenue Fund REVENUES: Direct Local Distributions $ 236,324 Interest 1,109 Total revenues 237,433 EXPENDITURES: Current Highway and Streets 150,773 Capital Outlay: Traffic Signal Improvements 283,492 Total expenditures 434,265 NET CHANGE IN FUND BALANCE (196,832) FUND BALANCE Beginning of year 282,310 End of year $ 85,478 See accompanying Notes to Financial Statements 4 CITY OF DUBLIN,CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE(VRF)MEASURE F PROGRAM Notes to the Financial Statements for the Year Ended June 30,2014 NOTE 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 n lministers 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. I NOTE 2-SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES I Reporting Entity — All transactions of the Measure F Program of the 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. 5 CITY OF DUBLIN,CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE(VRF)MEASURE F PROGRAM Notes to the Financial Statements for the Year Ended June 30,2014 NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES(Continued) I 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. NOTE 3-CASH AND INVESTMENTS I 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. 6 WMAZE CT INDEPENDENT AUDITOR'S REPORT ON VEHICLES REGISTRATION FEE(VRF) MEASURE F COMPLIANCE { To the Honorable Members of the City Council City of Dublin,California Report on Compliance for Measure FProgram • We have audited, in accordance with the 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, the basic financial statements of Measure F Program of the City of Dublin(City),California,as of and for the year ended June 30,2014 and the related notes to the financial statements,and have issued our report thereon date November 21,2014. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants specified in the Master Programs Funding Agreement,between the City and the Alameda County Transportation Commission. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the Measure F Program based on our audit of the types of compliance requirements referred to above. 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 requirements specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission.Those standards and requirements 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 Measure F Program. 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 on compliance for the Measure F Program.However,our audit does not provide a legal determination of the City's compliance. r 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue,Suite 215 E maze @mazeassociates.com Pleasant Hill,CA 94523 7 w mazeassociates.cam Opinion on Measure FPrograms In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on Measure F Program for the year ended June 30,2014. Report on Internal Control Over Compliance Management is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance,we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on Measure F Program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the Measure F Program and to test and report on internal control over compliance,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. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of Measure F Program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of Measure F Program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of Measure F Program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance 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 compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission.Accordingly,this report is not suitable for any other purpose. * €- 4 sa& Pleasant Hill,California November 21,2014 8 W\ MAZTE IN DEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED UPON PROCEDURES FOR COMPLIANCE WITH THE PROPOSITION 111 2014-2015 APPROPRIATIONS LIMIT INCREMENT • • 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, 2015. These procedures, which were suggested by the League of California Cities and presented in their Article XAIB Appropriations Limitation Uniform Guidelines were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB 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 purpose. The procedures you requested us to perform and our findings were as follows: A. We obtained the Appropriations Limit Worksheet and determined that the 2014-2015 Appropriations Limit of$247,143,137 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. B. We recomputed the 2014-2015 Appropriations Limit by multiplying the 2013-2014 Prior Year Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by multiplying the inflation option by the population option. C. For the Appropriations Limit Worksheet, we agreed the Per Capita Income, City Population and County Population Factors to California State Department of Finance Worksheets. We also agreed the Local Non-Resident Construction Factor to the Contra Costa County's "Assessor Office PROP 111 New Construction 2014-2015"Report. 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. a ifY19c4f14 November 21,2014 r 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