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Item 8.1 CAFR & Annual Audit
~~~~ Off' nU~~~ /ii ~ 111 L~~ - ~ ~~~ DATE: TO: FROM: STAFF REPORT CITY COUNCIL CITY CLERK File #310-30 January 17, 2012 Honorable Mayor and City Councilmembers ~~ Joni Pattillo, City Manager ° ~' SUBJECT: Comprehensive Annual Financial Report (CAFR) and Annual Audit for the Fiscal Year Ending June 30, 2011 and Supplemental Reports Completed by the Auditors Prepared by Paul S. Rankin, Administrative Services Director EXECUTIVE SUMMARY: The City of Dublin has compiled and published its Comprehensive Annual Financial Report (CAFR) for the fiscal year ending June 30, 2011. This report includes financial statements prepared by City Staff along with the audit prepared by Caporicci and Larson (C&L), a subsidiary of Marcum, LLP, the independent auditors selected by the City Council. The CAFR is a report which encompasses information beyond minimum financial reporting requirements. The Auditors have provided a "clean opinion" based on their review. The report has also been reviewed by the City Council ad-hoc Audit Subcommittee. The Auditors have also completed supplemental reports related to: 1) A compliance audit of Alameda County Transportation Measure B Funds; and 2) A Review of the Annual Appropriations Limit Calculation. FINANCIAL IMPACT: Detailed financial information is summarized in this report as well as the Comprehensive Annual Financial Report (Attachment 1) and a summary of key information (Attachment 2). RECOMMENDATION: It is recommended that the it y ouncil receive and file the reports. ,...~m~ ~~~, ,~_ ~, .M..~.._ M µ~~ ~ f ~' ~~A,,~ .~ .... ..~~_ , Submitted By Reviewed By Administrative Services Director Assistant City Manager Page 1 of 4 ITEM NO. 8.1 DESCRIPTION: The City of Dublin has compiled and published its Comprehensive Annual Financial Report (CAFR) for the Fiscal Year ending June 30, 2011. This report, which is included as Attachment 1, includes audited financial statements reviewed by Caporicci and Larson, CPA's (C&L) a subsidiary of Marcum, LLP. This firm is the independent auditor selected by the City Council and the Fiscal Year 2010/2011 Audit was completed under a two year agreement approved by the City Council on February 2, 2010. The report includes financial information on revenues and expenditures for the entire Fiscal Year which started July 1, 2010 and ended June 30, 2011. AD-HOC AUDIT COMMITTEE REVIEW A meeting was scheduled with the Auditors and the City Council Ad Hoc Audit Committee (Vice Mayor Hart and Councilmember Swalwell) on January 9, 2012 to review the results of the audit. Due to a conflict Vice Mayor Hart was unable to attend. The interaction of the Auditors directly with representatives of the elected body is a key component to current audit standards. Council Member Swalwell received a summary presentation from Ms. Carmen Wilson, Partner at Caporicci & Larson and was provided with an opportunity to discuss the report and ask questions of the Auditor. It was recommended the report be forwarded to the City Council. Overall, based on their testing and review, the Auditors granted the City a "clean opinion" (see Attachment 1, pages 1 - 2). In order to receive this level of audit finding, there can be no matters of concern involving the City's internal controls and financial reporting that are considered to be a material weakness. FINANCIAL OVERVIEW The financial section of the CAFR includes an unqualified opinion issued by C&L. Attachment 2 provides a summary of key elements contained in the CAFR. Some of the important financial results are addressed below: Increase Total Assets -The total assets increased by $236,858 or less than one tenth of one percent. Given the economic pressures and the fact that some capital project expenditures were funded from reserves, any increase is considered a positive result. Governmental Activities June 30, Item June 30, 2011 2010, $ Change % Change Restated Current and other assets $116,392,834 $111,925,928 $4,466,906 4.0% Capital assets 433,779,703 436,857,107 (3,077,404) -0.7% Total assets 550,172,537 548,783,035 1,389,502 0.3% Current Liabilities 17,338,261 16,548,627 789,634 4.8% Noncurrent Liabilities 1,296,799 933,789 363,010 38.9% Total Liabilities 18,635,060 17,482,416 1,152,644 6.6% Invested in capital assets 433,779,703 436,857,107 (3,077,404) -0.7% Restricted 21,453,867 25,004,384 (3,550,517) -14.2% Unrestricted (See Note 8 to Financials 76,303,907 69,439,128 6,864,779 9.9% for Classification) Total net assets $531,537,477 $531,300,619 $236,858 0.04% Page 2 of 4 Total Assets - It is important to consider that not all elements of the reported Total Net Assets represent unrestricted assets. The amount reported as Total Net Assets includes $433.8 million (81.61 % of the total assets) which represents investments in capital assets (e.g. land, infrastructure, buildings, and equipment). These are not assets that are available for future spending. Further, $21.5 million (4% of the total assets) are assets subject to external restrictions on how they can be used. Included in the Management Discussion and Analysis section of the CAFR is additional detail discussing the Changes in Net Assets (see Attachment 1 pages 3 to 5). AUDIT RECOMMENDATIONS /DISCLOSURES The professional standards adhered to by the Auditors require them to record a formal process of communicating with the City Council. The new standards require that the Auditors communicate directly with those charged with governance. As noted the Auditors met with Councilmember Swalwell at the conclusion of the audit to review the final report. The Auditor Report to the City Council is included as Attachment 3. As part of the Audit Review the independent auditors can present recommendations for consideration by the City. These can be items that do not impact the overall "clean opinion". The process allows the Auditors to disclose their observations on certain practices and policies, and allow Management to respond to the input. The Auditors determined that there were no items identified that warranted additional recommendations. DESIGNATIONS OF FUND BALANCES On June 21, 2011, the City Council adopted Resolution No. 106-11 which established a policy for the establishment of reserves. The policy was required in response to changes in accounting standards have been enacted by the Governmental Accounting Standards Board (GASB). The listing of the reserves established in accordance with this policy are shown on page 70 of the CAFR (Attachment 1). The new format contains five categories of fund equity as summarized in the following Table: FUND EQUITY AS OF JUNE 30, 2011 Desi nation General Fund Other Funds TOTAL Non-Spendable $ 4,156,768 $ 4,156,768 Restricted $21,453,867 21,453,867 Committed 27,893,755 27,893,755 Assigned 18,841,475 18,841,475 Unassigned 13,251,263 (1,735,988) 11,515,275 Total $64,143,261 $19,717,879 $83,861,140 It is important to note that although the General Fund contains approximately $13.3 million in the Unassigned category, the City Policy includes in this amount an unrestricted amount for cash flow purposes. The policy states that this is a minimum amount equal to two months of operating expenditures, with a goal to reach a total of four months of operating expenditures. The current balance represents the equivalent of approximately 2.6 months of operating reserves. Page 3 of 4 ADDITIONAL REPORTS PREPARED BY THE AUDITORS In addition to the Audit of the Financial Statements, the Auditor engagement also included the completion of specialized reports. The supplemental reports include 1) A compliance audit of Alameda County Transportation Measure B Funds; and 2) A Review of the Annual Appropriations Limit Calculation. These reports are described below and included for informational purposes. Alameda County Transportation Authority - Measure B Funds Report (Attachment 4) The Alameda County Transportation Authority provides local funding through two local programs. One is related to Street Improvements and the other is Bicycle and Pedestrian Improvements. In addition the City began work on the Alamo Canal Trail project as a separate regional project funded with Measure B Funds. The report found that, based on the information reviewed and presented, the expenditures were materially in compliance with the program requirements. Appropriation Limit Schedule Report (Attachment 5) 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 $180,508,969 Limit as presented in the Fiscal Year 2010-2011 Budget. There were no exceptions noted in the findings. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of the report was sent to Carmen Wilson, Partner at Caporicci & Larson and a copy of the Measure B Report (Attachment 4) was submitted to the Alameda County Transportation Authority. ATTACHMENTS: 1. City of Dublin Comprehensive Annual Financial Report -Fiscal Year 2010-2011 2. Summary -Key Information Comprehensive Annual Financial Report for the Year Ended June 30, 2011. 3. Auditors Communication with Those Charged with Governance for the year ended June 30, 2011. 4. Measure B Funds Report 5. Appropriation Limit Schedule Report Page 4 of 4 City of Dublin C A L I F O R N I A Comprehensive Annual Financial Report Fiscal Year ended June 30, 2011 Dublin All-America Cily tl I/ 2011 City of Dublin Dublin, California Comprehensive Annual Financial Report For the year ended June 30, 2011 C~~~~~~L Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2011 Table of Contents Pale INTRODUCTORY SECTION Letter of Transnuttal .......................................................................................................................................................... i Government Fuzance Officers Association (GFOA) Award ...................................................................................... vii Principal Officers ............................................................................................................................................................ viii Organizational Chart ....................................................................................................................................................... ix FINANCIAL SECTION Independent Auditors' Report .......................................................................................................................................1 Management's Discussion and Analysis ......................................................................................................................3 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Assets .....................................................................................................................................23 Statement of Activities and Changes iiz Net Assets .......................................................................................24 Fund Financial Statements: Goz~ernniental Firnd Financial Statements: Balance Sheet .................................................................................................................................................28 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets ...........................................................................31 Statement of Revenues, Expenditures and Changes i11 Fund Balances ................................................32 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes i11 Net Assets ..........................................................................34 Propt~ieta}'y Fund Financial Statements: Statement of Net Assets ...............................................................................................................................35 Statement of Revenues, Expenses and Changes in Net Assets ..............................................................36 Statement of Cash Flows .............................................................................................................................37 Fic~uciar~ Ftinc~ Financial Statements: Statement of Fiduciary Net Assets .............................................................................................................39 Index to Notes to Basic Fuzancial Statements ........................................................................................................41 Notes to Basic Fuzancial Statements ........................................................................................................................43 City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2011 Table of Contents, Continued Pale FINANCIAL SECTION, Continued Required Supplementary Information: Budgets and Budgetary Accounting ................................................................................................................84 Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual: General Fund .................................................................................................................................................86 Affordable Housing Special Pevenue Fund .............................................................................................87 Schedule of FLmdillg in Progress: Miscellaneous Plan of the California Public Employee Retirement System ........................................89 Other Post Employment Benefit (OPEB) ...................................................................................................89 Supplementary Information: General Fund: Schedule of Budget Versus Actual Pevenues by Sources .............................................................................94 Schedule of Budget Versus Actual Departmental Expenditures .................................................................96 Major Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual: General Improvements Capital Project Fund ...........................................................................................97 Conununity hnprovements Capital Project Ftuu1 ...................................................................................98 Parks Improvements Capital Project Fund ...............................................................................................99 Streets Improvements Capital Project Fw1d ...........................................................................................100 Public Facilities Fees Capital Project Fund .............................................................................................101 Fire hnpact Fees Capital Project Fund .....................................................................................................102 Traffic hnpact Fees Capital Project FLmd ................................................................................................103 Non-Major Governmental Funds: Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual: Combining Balance Sheet ..........................................................................................................................108 Combining Statement of Revenues, Expenditures and Changes i11 Fund Balances .........................114 City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2011 Table of Contents, Continued Pale FINANCIAL SECTION, Continued Supplementary Information, Continued Non-Major Governmental Funds, Continued: Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual: Special Crimuzal Activity Special Revenue Fwzd .................................................................................. 119 Vehicle Abatement Special Revenue Fw1d ............................................................................................. 120 Supplemental Law Enforcement Special Revenue Fu~u1 ...................................................................... 121 Local Law Enforcement Block Grant ....................................................................................................... 122 Traffic Safety Special Revenue Fund ....................................................................................................... 123 Federal Asset Seizure Special Revenue Fund ......................................................................................... 124 EMS Special Revenue Fwzd ...................................................................................................................... 125 Enforcement Grants Special Revenue Ftmd ........................................................................................... 126 State Gas Tax Special Revenue Fund ....................................................................................................... 127 T.E.A. Special Revenue Fwu1 .................................................................................................................... 128 Measure B Sales Tax Transportation Special Revenue Fund ............................................................... 129 Measure B Sales Tax Bike and Pedestrian Special Revenue Fund ....................................................... 130 Congestion Management Agency Special Revenue Fwzd .................................................................... 131 Traffic Congestion Relief Special Revenue Fund ................................................................................... 132 Highway Safety Traffic Reduction Bond (Prop 1B) ............................................................................... 133 Measure D Recycling Special Revenue Fwzd ......................................................................................... 134 Garbage Service Special Revenue Fund .................................................................................................. 135 Local Recycling Program Special Revenue Fund ................................................................................... 136 American Recovery & Re-Investment Act Special Revenue Fund ...................................................... 137 Storm Water Management Special Revenue Fund ................................................................................ 138 Box Culvert Special Revenue Fund .......................................................................................................... 139 Dublin/Dougherty Storm Water Management Special Revenue Fund ............................................. 140 Village Parkway Special Revenue Fund .................................................................................................. 141 East Bay Regional Park District Special Revenue Fwzd ........................................................................ 142 Public Art Special Revenue Fund ............................................................................................................. 143 Noise Mitigation Special Revenue Fund ................................................................................................. 144 CDBG Special Revenue Fund ................................................................................................................... 145 Street Lighting Special Revenue Fund ..................................................................................................... 146 Stagecoach Landscape Special Revenue Fu~u1 ....................................................................................... 147 Dougherty Landscape and Lighting Special Revenue Fund ................................................................ 148 Santa Rita Assessment District 97-1 Special Revenue Fund ................................................................. 149 East Dublin Street Lighting Assessment Special Revenue Fund ......................................................... 150 Internal Service Funds: Combining Statement of Net Assets ..............................................................................................................152 Combining Statement of Revenues, Expenses and Changes u1 Net Assets .............................................154 Combining Statement of Cash Flows .............................................................................................................156 City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2011 Table of Contents, Continued Pale FINANCIAL SECTION, Continued Supplementary Information, Continued Agency Ftuzd: Statement of Changes in Net Assets ...............................................................................................................160 STATISTICAL SECTION General Governmental Activities Tax Revenues by Source and Governmental Activities Tax Pevenues by Source ...................................................................................... 163 Net Assets by Component ...................................................................................................................................... 164 Changes in Net Assets ............................................................................................................................................ 166 Fund Balances of Governmental Fwzds ............................................................................................................... 168 Changes in Fund Balances of Governmental Funds .......................................................................................... 170 Assessed Value and Estimated Actual Value of Taxable Property .................................................................. 172 Direct and Overlapping Property Tax Pates ....................................................................................................... 173 Pruuipal Property Taxpayers ................................................................................................................................ 174 Property Tax Levies and Collections .................................................................................................................... 175 Direct and Overlapping Dept ................................................................................................................................ 176 Legal Debt Margin hzformation ............................................................................................................................ 178 Demographic and Economic Statistics ................................................................................................................. 180 Property Value, Construction and Bank Deposits .............................................................................................. 181 Pruuipal Employers ................................................................................................................................................ 182 Full-time Equivalent City and Contact Government Employees by Function ............................................... 183 Operatuzg Indicators by Function ......................................................................................................................... 184 Capital Assets Statistics by Function .................................................................................................................... 185 Top 25 Sales Tax Producers .................................................................................................................................... 186 Miscellaneous Statistical Data ................................................................................................................................ 187 CITY OF DUBLIN 100 Civic Plaza Dtrhlrn, California 9-1568 iT ehszte: a ~i~u•.c~trUlirt_ca.gov January 10, 2012 Honorable Mayor and Members of the City Council Presented with this transmittal is the City of Dublin (City) Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2011. The information in this Comprehensive Annual Financial Report is prepared in accordance with Generally Accepted Accounting Principles (GAAP) as established by the Governmental Accounting Standards Board (GASB). The responsibility for the accuracy and fairness of this report rests with the City. Management Staff are responsible for preparing a complete report which is based upon reliable information. Caporicci and Larson, Inc. a Subsidiary of Marcum, LLP, a firm of licensed public accountants, has issued an unqualified ("clean") opinion on the City of Dublin's financial statements for the year ended June 30, 2011. 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 a separate narrative section called Management's Discussion and Analysis (MD&A) which provides financial highlights of the City and additional analysis of trends reported as part of the financial statements. The MD&A is located immediately following the report of the independent auditors. CITY PROFILE The City of Dublin was incorporated in 1982 and is located in Alameda County, a growing area in the eastern portion of the San Francisco Bay Area. In 2011, the City was named an "All-America City" by the National Civic League, one of the nation's oldest and most prestigious civic organizations. The City received this honor because of its efforts to preserve and sustain the community's history, provide affordable housing opportunities for our residents and the work to provide a school for developmentally disabled children. Dublin was one of 10 cities nationwide to receive this distinguished honor. The City has a permanent staffing level of approximately 86 full time equivalent City employees and serves an estimated population of 46,743, with estimated future population growth to 60,000 covering a land area of 14.62 square miles. The City's strategic location offers opportunities for employers, retail outlets, and high quality residential neighborhoods. The City operates under the Council-Manager form of government. Policy making and legislative authority are vested in the City Council, which consists of an elected Mayor, who serves atwo-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. area Code (9251 Cit1~ Manager 833-66.50 City Cottnczl833-6610 Pet^soratel 833-660 EcortontzcDevelo~ntertt 833-660 Frnanc•e 833-«,-10 Ptrhlrc TT or^bs Ertgrneer^irt~ 833-«IO Pc7r^ks d'- Contntttrtrt7 Ser~~rces 833-«-l ~ Polrce 833-C><70 Planning: Code Ertforcemettt 833-6610 Bttzlcling Irts~ectzort 833-6620 Fzre Preventzort Btrreat-r 833-6606 Current City services include: Administrative Services (Finance/Information Systems); City Manager and Central Services (Human Resources); City Attorney; City Clerk; Police; Fire; Animal Control; Crossing Guards; Community Development (Building/Planning/Housing); Economic Development/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 119 FTE contract employees are identified in the City budget. ECONOMIC CONDITION AND OUTLOOK The City of Dublin is located at the intersection of Interstates 580 and 680 approximately 35 miles east of San Francisco. The City has a wide range of housing types available to meet the demands of various employers throughout the region. Over the past several years residential builders and developers have constructed a variety of new housing options, which include a mix of transit-oriented development adjacent to a Bay Area Rapid Transit (BART) station, as well as single family homes and condominium / townhome developments. The relatively close proximity to additional job centers and colleges and universities in the Bay Area create an attractive environment. The City has a large retail base which serves local residents as well as those in surrounding communities. The largest employers include: government and public agencies such as the United States Government - Department of Justice, County of Alameda, and the Dublin Unified School District; corporate and technical production offices such as the headquarters of Sybase, an SAP Company, Taleo, Fluor Enterprises, Micro Dental Laboratories, and Carl Zeiss Meditec; retailers such as Best Buy, Toys R US, Lowes, and Target; and auto dealers with new car dealers in the City representing the following manufacturers: Chevrolet, Nissan, Honda, Toyota, Volkswagen, Chrysler, Dodge, Jeep, Buick, GMC, Cadillac, Kia, Mazda, and Hyundai. Retail Sales are an obvious indicator of the general economic climate. The General Fund Sales Tax in Fiscal Year 2010/2011 increased by 6.5% over the amount collected in the prior year. This increase was primarily due to the full year operation of new retail sales outlets, including Dublin Kia and Hyundai auto dealers; a regional sales office for Graybar, a distributor of electrical, communications and data networking products, as well as new retail outlets. Among the new outlets that opened were Dublin Mazda; Sprouts Farmers Market; as well as general merchandise retailers Half Price Books and DSW (Designer Shoe Warehouse). During the fiscal year, the economic conditions became more favorable, and throughout the State, automobile sales increased. The City has a significant proportion of sales tax generated from automobile sales, which also benefitted from new dealers opening in the City. The City also experienced a turnaround in the vacancies of sites previously occupied by national retailers including: Mervyns and Circuit City. The new Sprouts Farmers Market occupies the former Circuit City building and Sports Authority began improvements to occupy more than half of the former Mervyns site. Another positive gain in sales tax revenue resulted from higher gasoline prices and increased revenue from the "use tax" distributed through the State Sales Tax Allocation Pool. The City is proactive in monitoring retail sales activity and impacts on the general operating budget. For the second year in a row the City experienced a decrease in Property Tax Revenue. The amount of the decrease for the Fiscal Year ending June 30, 2010 was a decrease of approximately 1 % compared to the decrease of approximately 4% the previous year. The difference accounted for approximately $222,250 in reduced revenue. Despite a negative assessed value adjustment was applied to property values (based on the formula established under State law), there were new land sales and transactions which actually resulted in revenue from "current" property taxes being $115,531 more than the "current taxes" collected in the previous year. The decline in overall revenue was due to decreases in prior year tax collections. In the previous year, lenders which took possession of foreclosed properties paid off past due liens creating a spike in prior year tax collections. Despite the overall economy, developers continued to complete new units (349 final residential units added in Fiscal Year 2010/2011, compared to 248 in the previous fiscal year). In addition, developers continued to obtain permits for the construction of new residential units resulting in permits for 436 new residential units issued during the current year, compared to 300 the previous year. ~~ The City Council does not control property tax rates. These rates are an outgrowth of the 1978 voter approved Proposition 13. Although the City has experienced significant growth in Assessed Valuation of properties, in recent years, the current slowdown in sales, decreasing home prices, and increase in foreclosure activity are expected to result in slower property tax growth. Although there have been declines in property values and reassessments, the automatic adjustment factor used by the Assessor is a positive 0.753%, whereas the formula resulted in a negative adjustment last year. The City has also had vacant properties with approved parcel maps to create individual residential lots. During the past two years, developers delayed processing final maps. As they proceed with maps to create new residential lots, there should be a positive change in the assessed value of the property. The Fiscal Year 2011-2012 Budget was prepared based on continued positive growth of 1% in property tax revenue. An economic forecast, prepared by Beacon Economics, suggests that although East Bay home prices have not seen much appreciation, the regional real estate market is showing gradual improvement which is projected to continue into 2012. Nationwide unemployment rates reported by the United States Bureau of Labor Statistics have been a reflection of the drag on any type of economic recovery. From April through October 2011, the household unemployment rate for the United States remained in a narrow range of from 9% to 9.2%. The current Alameda County unemployment rate remains above 10%. Beacon Economics "October 2011 East Bay Outlook," notes that, although the unemployment rate is high, it is down to its lowest level in two years. The City of Dublin data published by the State of California Employment Development Department for calendar year 2010 shows a local rate of 6.9% which was below the countywide rate of 11.3% for Alameda County. The stability of the City's funding and expenditures is also significantly impacted by State of California budget impacts and retirement system trends. The most recent State Budget was adopted without containing significant negative impacts on City of Dublin revenues. However, the Budget did contain realignment changes between counties and the State for certain criminal justice activities, which may have indirect impacts at the local level. Further, the Budget contemplated a review of its adopted funding at mid-year if certain assumed State revenue targets were not reached. nth the short-term focus of the State Budget process, the City must continue to be prudent in committing to long term expenditures. The California Public Employees Retirement System (CaIPERS) pension costs have been increasing and are projected to continue to increase in the coming years. The timing of CaIPERS actuarial reports used to set rates result in a lag in the relationship to asset losses and when rates adjust. Retirement benefits and funding are a topic of discussion throughout the State as the costs begin to consume larger portions of funds available. The City Manager has engaged City Staff in discussions regarding options and opportunities to address the increased costs. This resulted in changes approved by the City Council for Fiscal Year 2011-2012, which eliminated the City payment of any of the designated Employee 8% contribution to PERS. In addition, the two largest contract service providers to the City (Alameda County Sheriffs Office and Alameda County Fire Department) successfully negotiated long term reductions to the growth in their employee benefit costs, which are paid by the City as part of the cost of service. The future economic outlook for the City follows the motto presented to the City Council as part of the Fiscal Year 2011-2012 budget deliberations - "Tempered Optimism." There are several positive signs in terms of new construction as well as retail sales. The expectation is that the changes will be slower and perhaps volatile in the short term. This environment requires the City to carefully plan for an alignment of General Fund expenditures with General Fund revenues. The City Council supported a realignment of services over the past two years to protect the City from expenditures that were increasing at rates in excess of revenue growth. Development is underway and new retail stores will open for business in the second quarter of 2011-2012, including Sports Authority at the former Mervyn's site, REI at the former Dublin Honda site in Downtown Dublin, and Target (the second location) in the new retail center, Fallon Gateway. Given the City's location adjacent to two freeways, excellent regional demographics and the continued development of residential housing in the area, growth will continue in the long term. ~~~ The City also has opportunities for expansion, in both the retail and office land uses. The City Council has also supported the development of long-term plans such as the Downtown Dublin Specific Plan, which was adopted in February 2011. The area is served by the City's second Bay Area Rapid Transit (BART) station which opened during the past year and there are 309 apartment units under construction adjacent to this location. Commercial development is also underway throughout the City, including the opening in October 2011 of Phase 1 of the Fallon Gateway Center which includes the City's second Target store. The City has also seen occupancy of vacant space in the Dublin Corporate Center and the Gateway Medical Complex with the expansion of Fluor Enterprises, Taleo and relocation of Epicor/Activant (Dublin Corporate) and the coming addition of Valley Care Health System's Urgent Care to Gateway Medical. All told, the net absorption of office space has been about 300,000 square feet in the second and third quarter of this fiscal year. FINANCIAL PLANNING AND POLICIES The City Council adopts a 10-Year Strategic Plan, which is updated every two years. The City Council undertook efforts during the past year to re-focus the plan on five strategies. These strategies set the stage to establish the framework and overarching policy focus for the delivery of public services to the community. The Budget document has a section containing the Strategic Plan and Goals and Objectives. Adjustments to programs presented by the City Manager in the Budget document were tied to the prioritization of elements within the Strategic Plan. The City of Dublin operates with balanced budgets each year and, as provided for in City policies, the City Manager presents a recommended budget and Financial Plan to the City Council annually. The City Council adopts a final budget in advance of the July 1St start of the new Fiscal Year. In terms of major capital investments, the City operates utilizing spay-as-you-go philosophy and has no outstanding City debt. The financial policies currently used for budgeting also provide for the use of Internal Service funds to assure resources are available to finance the replacement of public safety vehicles and apparatus, computer systems, and some building components. The importance of being prepared to address long term needs has always been a key principle supported by the City Council. The City has also proactively financed contributions to fund long-term retiree medical liabilities. The City of Dublin in recent years has experienced year-end results in which General Fund revenues were in excess of expenses. This has an impact on the General Fund reserves. 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 along-term view and incremental funding over a number of years before they proceed. While the City is still experiencing some growth, the City also faces the pressures to deliver and maintain public facilities, such as parks and other amenities. In Fiscal Year 2011-2012 the City will be coordinating the design of two neighborhood parks (Passatempo Park and Positano Hills Park). In addition, the Schaefer Ranch park plans will be submitted for a developer constructed park. Although the initial construction of the new park sites is paid for by the new development, the City will need to plan to absorb the ongoing operating cost. This also occurs with other public improvements including roadways, street lights, and traffic signals. As population and business outlets expand, there will also be a need to carefully examine any necessary adjustments to the deployment of services including public safety. Careful monitoring will be necessary to align any increased cost in services with expected revenue trends. The City has proceeded with caution in terms of financial commitments to General Fund Capital projects. New discretionary capital projects in Fiscal Year 2010-2011 were extremely limited. The prioritization of new projects focused on areas where the work enhanced safety (i.e. sidewalk repairs) or where technology improvements offered a long term benefit (i.e. an automated agenda management system). ~~ In the Fiscal Year 2009-2010 Budget, the City Council approved a reorganization plan that included staffing cuts and the reassignment of personnel, where needed, to fill critical vacancies. The staffing for Fiscal Year 2010-2011 remained static. Although the Budget in Fiscal Year 2010-2011 Budget anticipated the requirement of approximately $1.6 million from the Economic Stability Reserve, revenues were adequate to eliminate the need to use reserves. The adopted Fiscal Year 2011-2012 Budget was balanced without any contribution from the Economic Stability Reserve. The Fiscal Year 2011-2012 Budget plan developed by the City Manager demonstrates a commitment to cost containment and operational efficiency, while enhancing resources in areas aligned with the Strategic Plan and meeting core services. In order to support the achievement of Strategic Plan Initiatives and to also sustain service levels to a growing community, 4.5 Full-Time Equivalent (FTE) positions were added to City Staff and a small reduction of 0.11 FTE was included for Contract personnel. The changes were part of the overall "Tempered Optimism" philosophy, in which the City proceeds in a measured fashion to address community priorities. The future steps continue to be based on guiding principles from our past which include striving to provide services on a "pay as you go basis," and saving resources where applicable for long-term needs. AWARDS The Government Finance Officers' Association (GFOA) has recognized the City of Dublin for its Comprehensive Annual Financial Report covering the period ending June 30, 2010. A copy of the award from this entity is included in this report. This award represents the 20th consecutive year that the City's report was recognized by the GFOA. In order to be recognized, the City was required to produce an easily readable and efficiently organized report. The report must also meet the standard for generally accepted accounting principles and legal requirements. ACKNOWLEDGEMENTS The preparation of this report would not have been possible without contributions from City Staff in several departments. The value placed by City Staff in assuring that the City finances are professionally administered is appreciated. The City is fortunate to have dedicated staff members who devote extensive time and energy in preparing such a comprehensive report. The City has had its financial reports recognized by GFOA for many years, which is a significant accomplishment. Staff also appreciates the professional effort and input provided by Ahmed Badawi and Carmen ~Ison, as well as their team of auditors from Caporicci & Larson. The City Council support of excellence in financial reporting is commendable. By ensuring the production of an annual financial report of this nature, they demonstrate their commitment to seeing that the City financial operations are conducted responsibly and in a prudent manner in the best interest of the Dublin community. Sincerely, ~ ~~ Joni Pattillo City Manager ~~ ~,~ Paul S. Rankin Administrative Services Director This page intentionally left blank. ~~ Certificate of Achievement for Excellence in Financial Reporting Presented to City of Dublin California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2010 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government T'inance Officers Association of the United Mates and Canada to government units and public employee retirement systems ~vliose comprehensive a~mual financial reports (CAFRs) achieve the highest standards in govermnent accounting and financial reporting. President 1~~i`~ % '~Y~'9.i~v E~ectztive Director ~~~ CITY OF DUBLIN PRINCIPAL OFFICERS Fiscal Year 2010/2011 Mayor Tim Sbranh Vice Mayor Kevin Hart Councilmember Kasie Hildenbrand ADMINISTRATION PERSONNEL City Manager Assistant City Manager Administrative Services Director City Attorney City Clerk Chief of Police Public Work Director Community Development Director Park & Community Services Director Fire Marshal Deputy Fire Marshal Councilmember Don Biddle Councilmember Eric Swalwell Joni Pattillo Chris Foss Paul Rankin Jolul Bakker Caroline Soto Tom McCarthy Gary Huisingh Jeri Ram Diane Lowart Bonnie Terra Darrell Jones ~ iii __ ^ ~a 0 V O ~ ,, a ~+ Z ^ O V ~ a N Z a O I O O N i~ __ ~A i W ^ N ~_ i V ~ a ~~ ~ ~~ a O V ~, ~ Q ~_ V ~ c E ~ o ~o ~~ w a V N C N ~ N _ C O ~n C O N C ~ ~ ~ ~ '~ ~ N ~ . N ~ O ~1 O + ~ a1 ~, ~ cB ~ a~ ~ a, ~, O ~ ~ w N ~ Q ~ V ~ V ~ ~ N ~ ~ O oC ~ °' C ~1 c6 ~ ~ U - ~ ~ ~ . m ~' ~ ~ N V v~ ~ V ~ ~ N ~ N ~ ~ ~c E c V _ V ~ co ~ ~ cB c~ ~ Q ~ V ~ _ ~ ~ O ~ V ~ ~ ~ w V i C ~ ~~ •~ O O a1 V ~ ~ =~ ~a ~ x ,, s ~ *.' }, o ~ .'_^ ~ ~ ~ o a ~ . .3 ~ • ~ O O V V 47 ~, i ~ ~ ~n G, GJ O ++ V ~ • ~n u ~ •i ~ ~ ~ ~ ~C 47 '~ Q V d N N a~ ~, ~ c ~ ~ a~ .~ ,~+ ~ ~ E ~ ~ ~ ~ ~ ~_ ~ ~ N . N ii ~ ~n ~ a ~_ ~ ~ ~, ~, ~~ ~Q. ~ o , ~, ~ ~~~ ~ c c~ O ~ ~ ~ ~ _ V p m ~, .~ ~ ~~~ ~ ~~~ ~ N J ~ N ~ ~ a v-~ Q c ~~,~~ ~, _ V ~ ~ +~ N CB ~ ~ ~ ~ ~ ~ {d ~ ~ C ~ cB .~ J ~1 ~ ~ ~ ~ '~ V c ~ ~ m ~"' ~ CB ~ 4J ~ ~' in v~ .x v1 V ~ ~"' ~, a~ u in Q Q i >, ~n ~' a~ - O ~ a~ ~ N ~ '; ~ ~ ~ ~ ~ ~ ~ D N1 f+ ~ ~ V ~ i C ~ ~ V ~ ~ ~C 7 a ~ cB ~ ~ a~ ~ O J . a=' 0.S V ~ ~ N _ ~ ~ V ~ ~ N ~ ~ u ~ ~ °~' L7 ~~ i ~~ ~ a a~ ~ ~~, N o V c ~ o ~ ,~ o O ~ ~ •~ O .u a~ ~ Q LL i ~ ~ O ~ O N a~ a~ ~ ~ This page intentionally left blank CJL Caporicci & Larson, Inc. tl Sarhsicfiary ofM~frczcrn LLP Certzfiecl Public tlccozint~fnts INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of City Council Of the City of Dublin Dublin, California We have audited tlne accompanying finnancial statements of the governmental activities, each major Rind, and the aggregate remaiiniing fwnd information of the City of Dublin, California (City), as of and for the year ended June 30, 2011, which collectively comprise the Citds basic financial statements as listed iln the table of contents. These financial statements are tlne responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit iln accordance with auditing standards generally accepted iin the United States of America and the standards applicable to financial audits contaiined in Gone}~nment Auditing Standards, issued by tlne 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 of material nnisstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes exanniniing, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessinng the accounting prinnciples used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the funancial 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, 2011, and the respective changes in financial position, and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in tlne United States of America. As described iln Note 1K to the basic financial statements, the City adopted the followiing Statements of the Governmental Accounting Standards Board: - GASB Statement No. 54, Fund Bnlance Reporting and Goz~ernmentnl Fund Type Definitions - GASB Statement No. 59, Financial Instrunu~nts Oumibus In accordance with Government Atufiting Standards, we have also issued our report dated January 10, 2012, on our consideration of the City's internal control over financial reportung 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 testiing of innternal control over finnancial reporting and compliance and the results of that testiing, and not to provide an opinion on innternal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. To the Honorable Mayor and Members of City Council Of tlne City of Dublin Dublin, California Page 2 Accounting principles generally accepted in the United States of America require that the nnanagennent's discussion and analysis and budgetary comparison information on pages 3 through 18 and 83 through 89 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 f>nnancial reporting for placing tlne basic f>lzancial statements in an appropriate operational, econonnic, or historical context. We have applied certain linnited procedures to the required supplementary innformation in accordance with auditinng standards generally accepted in the United States of America, which consisted of innquiries of management about the methods of prepar>ing the information and comparing the information for consistency with malnagement's responses to our )Inquiries, the basic financial statements, and other lanowledge we obtained during our audit of the basic financial statements. We do not express an opunion or provide any assurance on the innformation because the limited procedures do not provide us with sufficient evidence to express an opunion or provide any assurance. Our audit was conducted for the purpose of fornning opinions on the financial statements that collectively comprise the City's f>nnancial statements as a whole. Tlne introductory section, comb>lz>lzg and individual nonmajor funnd f>nnancial statements, and statistical section, are presented for purposes of additional analysis and are not a required part of the financial statements. The comb>lzing and individual nonnnajor fund finnancial statements are the responsibility of management and were derived from and relate directly to the tuzderlyiizg accounting and other records used to prepare the finnancial statements. The information has been subjected to the audit>nng procedures applied in tlne audit of tlne f>lzancial statements and certain additional procedures, including conlpar>Tng and reconciling such >lzformation directly to the underlying accounting and other records used to prepare the financial statements or to the f>nnancial statements themselves, and other additional procedures in accordance with audit>lzg standards generally accepted >lz the United States of America. In our op>lzion, the >lzformation is fairly stated in all material respects iIn relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied iIn the audit of the basic financial statements and, accorditngly, we do not express an opinion or provide any assurannce on it. C~,y~,.,w < , 8.~. Caporicci & Larson, hnc. A Subsidiary of Marcum LLP Certified Public Accountants San Francisco, California January 10, 2012 ~~~~ °F DUB~f~ CITY OF DUBLIN /U ~ ill il~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 ~~~r~°v~~b 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, 2011. Please read this overview in conjunction with the accompanying letter of transmittal and the accompanying basic financial statements. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which are comprised of three components: • Government-wide Financial Statements -These include the Statement of Net Assets and Statement of Activities. These statements provide information about the activities of the City as a whole and about the overall financial condition of the City in a manner similar to aprivate-sector business. Fund Financial Statements -These statements provide additional information about the City's major funds, including how services were financed in the short term and fund balances available for financing future projects. • Notes to the Financial Statements -The notes provide additional detail that is essential to a full understanding of the information provided in the Government-wide and Fund Financial Statements. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees. GOVERNMENT-WIDE FINANCIAL STATEMENTS -DESCRIPTION These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All current year's revenues and expenses are accounted for regardless of when the cash is paid or received. These statements report the City's net assets and changes to the net assets. Net assets -the difference between assets and liabilities -are one way to measure the City's financial position. Over time, increases or decreases in net assets are among indicators used to assess whether the financial condition of the City is improving or deteriorating. However, it is also important to consider other non- financial factors, such as: changes in the City's property tax values, sales tax outlets, and the condition of the City's infrastructure (i.e. parks and streets), to accurately assess the overall health of the City. The Government-wide statements present information about the City's activities, all of which are considered governmental in nature. These include services provided for police, fire, community development, streets, and culture and leisure. These services are funded from monies received from property, sales and other taxes, direct charges for services provided, grants, contributions from other agencies, and impact fees collected from new development. ~~~~ °F DUB~f~ CITY OF DUBLIN /U ~ ill il~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 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 ASSETS June 30, 2011 and 2010 Governmental Activities Item Current and other assets Capital assets Tota I assets Current Liabilities Noncurrent Liabilities Total Liabilities Invested in capital assets Restricted Unrestricted (See Note 8 to Financials for Classification) Total net assets June 30, 2011 $116, 392, 834 433, 779, 703 550,172, 537 June 30, 2010, $ Change % Change Restated $111,925,928 $4,466,906 4.0% 436,857,107 (3,077,404) -0.7% 548,783,035 1,389,502 0.3% 17, 338, 261 16, 548, 627 1, 296, 799 933, 789 18, 635, 060 433, 779, 703 21,453,867 76, 303, 907 17,482,416 436, 857,107 25, 004, 384 69, 439,128 789,634 4.8% 363, 010 38.9% 1,152, 644 6.6% (3,077,404) -0.7% (3, 550, 517) -14.2% 6,864,779 9.9% $531,537,477 $531,300,619 $236,858 0.04% As shown above, during Fiscal Year 2010-2011, the City's net assets increased by approximately $236,858, which was less than one-half of one percent. This change results from the following factors: • The total net Assets are approximately $531.5 million, and approximately 81.6% of the net assets are capital assets. The current assets increased by approximately $4.5 million compared to the balance reported in the previous year. The two largest factors which contributed to this increase were: increased cash and investments of approximately $900,000; and an increase in notes receivable of approximately $2.3 million. The City completed funding of loans to Eden Housing as part of the Arroyo Vista Affordable Housing project. • The City's total liabilities increase by approximately $1.2 million. Current liabilities represent primarily obligations outstanding for current operations (such as accounts payable), capital projects (such as retention payable), deposits held for development projects, and amounts recorded as deferred revenue. The increase in the current liabilities is due to a combination of factors including: decreases in payables including general accounts payable and contract retention payable, which were offset by increases in developer deposits payable, accrued wages, and unearned revenue. • The increase in noncurrent liabilities is related to recording an increased liability for the City share of the Dougherty Regional Fire Authority retiree medical obligation, and an increased liability for a sales tax sharing program. ~~~~ °F DUB~f~ CITY OF DUBLIN /U ~ ill il~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 Approximately $434 million or 81.6% of the total reported net assets reflects the City's investment in capital assets (e.g. land, infrastructure, buildings, equipment). The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. The $3.1 million decrease in the amount shown as invested in capital assets reflects the net impact of additional assets and construction in progress, less accumulated depreciation. Approximately $21.5 million or 4.0% of the reported assets as of June 30, 2011, represent resources that are subject to external restrictions on how they may be used. These restrictions may be imposed by outside agencies, state regulations, or legal restrictions which would limit the discretionary use of these assets. Restricted assets decreased by approximately $3.6 million. This was reflects a combination of factors including: funding commitments expended for the Arroyo Vista Affordable Housing project; and expenditure of gas tax funds on capital projects. These were offset by the collection of additional restricted funds primarily in the Public Facility Fees and Public Safety, including Federal Asset Seizure funds. Approximately $76 million or 14.4% of the total assets are categorized as unrestricted and may be used to meet the City's ongoing obligations to citizens and creditors. However, as discussed in the notes to the financial statements, much of the unrestricted net assets include the portions of the General Fund balance which has either been committed or assigned for uses in accordance with a policy adopted by the City Council. The unrestricted net assets show an increase of $6.9 million compared to the amount reported as of one year earlier. ~~~~ °F DUB~f~ CITY OF DUBLIN /tt ~ tll ll~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 ~~~r~°v~~b Governmental Activities: Table 2 provides a summary of major program expense categories, program revenues used to fund specific expenses, and general City revenues available for funding all City programs. Total revenues from all sources were $71.7 million and total expenses for all City programs were $71.4 million. For Fiscal Year 2010-2011, the City had no long term debt outstanding at June 30, 2011. The format of Table 2 provides additional detail showing factors that impacted the Net Asset figures presented earlier in Table 1. TABLE 2: SUMMARY OF CHANGES IN NET ASSETS For the Years Ended June 30, 2011 and 2010 Kevenues Program Kevenues Charges N'or Services Operating Contributions & Grants Capital Grants & Contributions Sub-total Program Kevenues General Kevenues Property 't'axes Sales lax Motor vehicle in lieu, unrestricted Otherlaxes Investment income, unrestricted Other general revenues Sub-'total General Kevenues total Kevenues Expenses: Governmental activities: General government Public safety Highways and streets Health and welfare Culture and leisure services Community development Sub-Total governmental activities Increase In Net Assets riscal Year landing June 30th 2011 ~ 2010 ~ Change % Change 13,133,226 ~ 10,926,835 ~ 2,206,391 20.2% 2,220,247 2,229,043 (8,796) (U.4%) 15,745,614 19,901,314 (4,155,700) (20.9%) r r r r r r (5.9Yo) 21,918,484 22,287,783 (369,299) (1.7Yo) "12,969,"1"19 "1Z,"183,26'/ /85,852 6.5 Yo 250,974 141,221 109,753 77.7% 3,'/98,5"15 3,ZU"l,Z"19 59'/,296 "l~.'/Yo 196,685 758,016 (561,331) (74.1%) 1,418,781 1,106,163 312,618 28.3% 2.2 `Yo (1.5"/0) $ 9,322,322 $ 8,396,199 $ 926,123 11.0% 24,413,496 23,797,696 615,800 2.6% 10,142,946 15,969,371 (5,826,425) (36.5%) 12,749,042 3,615,077 9,133,965 252.7% 9,304,429 10,757,355 (1,452,926) (13.5%) 5,482,552 5,112,469 370,083 7.2% 71,414,787 67,648,167 3,766,620 5.6% $ 236,858 $ 5,086,694 Net Assets -Beginning of Year 531,300,619 526,978,268 Prior Period Adjustment (Note 15) (764,343) Net Assets -End of Year, as restated 531,537,477 531,300,619 236,858 0.04% 6 ~~~~ °F DUB~f~ CITY OF DUBLIN /U ~ ill il~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 ~~~r~°v~~b Overall there was a $236,858 increase in net assets for fiscal year 2011-2012 compared to the $5.1 million in the prior year. Factors which contributed to the current results included a decrease in program revenue, particularly capital contributions and grants and an increase in expenses. A discussion of key Revenue and Expense factors is presented below. Revenues Overall, total revenues decreased by $1.1 million or 1.5%, for the period ending June 30, 2011 compared to the previous Fiscal Year. The following are the major factors which contributed to these results: • Charges for Services increased by approximately $2.2 million. This primarily reflects increased development processing activity and fewer development applications under review as well as increased fees and charges collected for residential garbage and recycling services. • Capital Contributions and Grants decreased by $4.2 million. There were fewer and smaller Capital Projects funded by grant funds in the year ending June 30, 2011 compared to the previous Fiscal Year. Year to year fluctuations are common with grant funds. • Property Taxes decreased by approximately $369,000. The current year collections were relatively flat and the decrease was primarily related to a decrease in penalties and prior year collections. • Sales Tax revenue increased by approximately $786,000, as a result of new retail outlets and increased sales at existing retail outlets operating in the City. • Other Taxes also increased by approximately $597,000. This increase primarily reflects an increase of approximately $344,300 in garbage franchise taxes, as well as increases in real estate transfers, transient occupancy taxes collected and utility franchise tax revenue. • Investment income decreased by approximately $560,000. The decrease reflects lower rates of interest earned. The results also take into account an unrealized adjustment to reflect the market value of investments as of June 30, 2011. In the current Fiscal Year a negative adjustment of approximately $463,000 was recorded as an unrealized investment loss, whereas the previous year revenue included an unrealized investment gain of approximately $800,000. Expenses Overall, total expenses increased by approximately $3.8 million (an increase of 5.6%) as compared to Fiscal Year 2009 - 2010. The total expenses reported as of June 30, 2011 were $71.4 million. The following are the major factors which contributed to these results: General Government expenses increased by approximately $0.9 million. This was primarily related to expenses within the Internal Service Fund for depreciation as well as increased maintenance expenses in various Internal Service Funds used for management of City equipment and major building system replacement. The increase also reflects the inclusion of tax collection fees as an expense. ~~~~ °F DUB~f~ CITY OF DUBLIN /U ~ ill il~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 Public Safety expenses increased by approximately $0.6 million. This is related to a combination of increases and decreases. The contract Police Services expenses increased by approximately $408,000 as a result of inflationary costs associated with contract personnel salaries and benefits as well as an adjustment to the City's share of dispatch costs compared to the previous year. These increases were partially offset by a decrease in contract Fire services as a result of changes in the City share of costs due to additional agencies being served by contracts with Alameda County Fire Department. Disaster Preparedness incurred increased expenses of approximately $236,000 as a result of one time expenditures supporting a new regional emergency radio system. • Highways and street expenses decreased by approximately $5.8 million. This was the result of a reduction in one-time capital project expenses that did not repeat in Fiscal Year 2010-2011. • Health and Welfare expenses increased by approximately $9.1 million. This was largely attributable to City expenses supporting apublic/private redevelopment of the Arroyo Vista public housing project site. The City made contributions both in the form of loans and grants. In addition there were increased expenses associated with residential garbage and recycling services, which are collected by the City as part of the residential property tax bill. • Culture & Leisure expenses decreased by approximately $1.5 million. This was primarily related to Capital project activities. The Dublin Heritage Park and Museums as well as Fallon Sports Park contributed to one-time expenses in Fiscal Year 2009-2010 that were not repeated in Fiscal Year 2010-2011. • Community Development expenses were approximately $370,000 more than the previous year. This was primarily related to an increase in Engineering consultant expenses associated with inspection and review of new development plans. The charts which follow display both the Revenue and Expenses by program in a pie chart format. This highlights the proportionate elements of the Government-Wide Fiscal Year 2010-2011 Revenues and Expenses. As shown in the Revenue Chart more than 96% of the total revenue is related to the top four sources: 1) Property taxes which comprise 30.6%; 2) Capital grants which comprise 29.3%; 3) Charges for Services which comprise 18.3%; and 4) Sales tax which comprises 18.1 %. ~~~~ OF DUBS f~ igf ~~~~sz h~/// CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2011 Rt+venues By Bourse {In Millions) Total Rerenue B71.6 Millions ocher Tasea - S.i4ii Sd.fl~ a Charges For Senlees - ]E.3°/.513.1 Sales lax -18.1 S'. $13.0, `M. nP fnntrih f Grants -_ 3.] °fr 523 ia-~tmcnt insomc -_se fl'36~o 50a __ Capftal#C:rann - 29.3?i 579.9 5]~+ t Prapert7• Tara - 3fl.S4i r: 52].9 In terms of expenses, the largest program expense is Public Safety representing 34.19%, which is larger than the next two categories combined. Health and Welfare accounted for 17.85% of the expenses which were higher than previous years due to one-time contributions towards the Arroyo Vista Housing Project. Highways and Streets accounted for 14.20% of the expenses, which included capital projects. y ~~~~ OF DUBS f~ igj~~~~sz h~/// CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2011 EXPENSES BY PRQGRAM ¢n Millions) Total Expenses - X71: E Millions Co~niunity Development - 7.68°~oS5.5 General GovemmeLt - 1 i a_DS°.~~ s4_3 Culture and Lei 1..0.°aS4 Health wind R{elT`at~ -_,__ 17.87 °;~ 512.7 Safety - 34.19"'u S?~1.~4 FUND FINANCIAL STATEMENTS These statements provide more detailed information about the City's major funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: Governmental funds, Proprietary funds, and Fiduciary funds. Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-wide financial statements. However, unlike the Government-wide financial statements, Governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of Governmental funds is narrower than that of the Government-wide financial statements, it is useful to compare the information presented for Governmental funds with similar information presented for governmental activities in the Government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the Governmental fund balance sheet and Governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between Governmental funds and governmental activities. 10 Ilighvrays aad Stets - 1 d.? 4°.~'n S 14.1 ~~~~ °F DUB~f~ CITY OF DUBLIN /U ~ ill il~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 The City maintains forty (40) individual Governmental funds. Information is presented separately in the Governmental fund balance sheet and in the Governmental fund statement of revenues, expenditures, and changes in fund balances for the following nine funds: General Fund; Affordable Housing Fund; four Capital Project Funds (General Improvement Projects; Community Improvement Projects; Parks Projects; Streets Projects); and three Impact Fee Funds (Public Facilities Impact Fees, Fire Impact Fees, and Traffic Impact Fees). These funds either qualify or the City requested them to be classified as major funds due to their significance in the financing of new capital assets. Data from the other thirty-one (31) Governmental funds are combined into a single aggregated presentation, labeled as Non-Major Governmental Funds. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for each of its Governmental funds. A budgetary comparison statement has been provided for each Governmental fund to demonstrate compliance with this budget. Proprietary funds The City maintains one type of Proprietary fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions and to build up reserves for future replacement of capital assets. These funds are also used to collect funds for future retiree medical costs, which are then transferred to a trust. In Fiscal Year 2006-2007, the City established a 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 six internal service funds to account for its fleet of vehicles, computer systems, other furniture and equipment, certain retiree costs and contributions, and improvements to City buildings. Because these services solely benefit the governmental function, they have been included within governmental activities in the Government-wide financial statements. Proprietary fund financial statements provide the same type of information as the Government-wide financial statements, only in more detail. All six internal service funds are combined into a single, aggregated presentation in the Proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Fiduciary funds The Fiduciary fund section consists of four Agency Funds. The Dublin Boulevard Extension Agency Fund is an improvement district with outstanding bonds. The City's role is that of a trustee, or fiduciary, in collecting assessments and remitting bond payments. The City has no legal, contingent or moral obligation for the repayment of this debt and merely ensures that the assets received are used for their intended purposes. The City also provided a similar role for two Geologic Hazard Abatement Districts. California Public Resources Code section 25670 establishes that these Districts are a political subdivision of the State and not an agency or instrumentality of a local agency. The City contractually provides support to collect funds in a fiduciary capacity and may also arrange for activities funded by the Districts. The City served as the fiscal agent for Alameda County Associated Community Action Program (ACAP) beginning in 2011. The entity is a Joint Powers agency which the members have decided to proceed with closing out all activities. The City role was limited to holding funds collected from members and issuing payments as part of the close-out process. These fiduciary activities are excluded from the City's fund financial statements because these assets cannot be used to finance operations. The activity for these funds, however, is provided for in a separate combining statement contained elsewhere in this report. 11 ~~~~ °F DUB~f~ CITY OF DUBLIN /U ~ ill ~g ~~~ &2 Management's Discussion and Analysis (MDA) June 30, 2011 h_ ~ _/// FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As of June 30, 2011, the City's governmental funds reported combined ending fund balances of $83.9 million, an increase of $1.0 million from the prior year. The City General Fund had an increase of $3.1 million; Capital Funds increased by $5.8 million; Affordable Housing Fund decreased by approximately $7.6 million and Non-Major Funds decreased by approximately $342,000. The following sections provide a more detailed financial analysis by fund type. GENERAL FUND The General Fund is the chief operating fund of the City. Approximately $4.1 million of the balance is non-spendable in the form of pre-paid expenses, advances to other funds, and an endowment fund related to a City owned historic cemetery. At the end of Fiscal Year 2010-2011, the unassigned fund balance of the General Fund was $13.3 million and total fund balance of the General Fund was $64.1 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 8 to the financial statements. During Fiscal Year 2010-2011, the General Fund revenues exceeded its expenditures by $6.4 million. However, a total of $3.3 million was transferred out of the General Fund, primarily as a contribution to fund projects accounted for in a Capital Projects Fund. General Fund Revenue in Fiscal Year 2010- 2011 was approximately $4.3 million more than the previous year. Significant sources which contributed to this included: increased tax revenue from retail sales, real estate transfers, hotel / transient occupancy; increased recreation program participation; increased development activity; and a significant one-time Community Benefit payment. Expenditures for Fiscal Year 2010-2011 were approximately $406,000 more than the previous year, which represents a change of less than one percent. AFFORDABLE HOUSING FUND The Affordable Housing Fund is a special revenue fund which accounts for funds associated with the Affordable Housing programs. The fund balance totaled $5,253,245 at June 30, 2011 compared to $12,838,676 a year earlier. The change reflects disbursements as part of the Arroyo Vista Redevelopment project, which is a private -public partnership to replace affordable housing units. The balance is designated as restricted due to the fact that there are legal restrictions and it is not available for general purposes. CAPITAL PROJECT FUNDS As previously described the City has included seven specific capital funds in the information presented as part of the governmental funds. Four of the funds are used to capture expenditures related to active capital projects that are under way. The four funds are: General Projects; Community Projects; Parks Projects; and Streets Projects. The funding for the expenditures made in these funds is the result of transfers in from other funds. As of June 30, 2011 none of these funds carried a balance. The following Capital Impact Fee Funds are also reported: 12 ~~~~ °F DUB~f~ CITY OF DUBLIN /U ~ ill il~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 ~~~rr°~~~b Public Facilities Fee Fund -This fund includes fees collected to develop parks and other public facilities. Total revenue collected in Fiscal Year 2010-2011 was $2.4 million more than the amount collected in the prior year. This increase was the result of developers processing Final Maps which result in the collection of park land dedication fees. Due to variations in project construction and acquisition timelines expenditure patterns will fluctuate. There were expenses totaling approximately $338,747. During the year the deficit balance that existed at June 30, 2010 was repaid from fees collected and the fund had a balance of $3.6 million as of June 30, 2011. The balance is designated as restricted due to the fact that there are legal restrictions and it is not available for general purposes. Fire Impact Fees -This fund includes fees collected from new development to pay for the capital cost associated with the provision of Fire Services. Total revenue collected in Fiscal Year 2010- 2011 was only $98,363 which was $23,823 more than the amount collected in the prior year. In Fiscal Year 2010-2011 more development occurred on properties which did not hold credits from prior contributions. Therefore they were required to pay cash at the time of receiving a building permit. The expenses associated with these funds represent the repayment of a long term advance made from the City General Fund. Payments include interest. In Fiscal Year 2010-2011 the amount owed to the General Fund decreased by $72,898 after accounting for interest on the outstanding balance. The total balance owed to the General Fund as of June 30, 2011 is $1,735,988. The balance is designated as restricted due to the fact that there are legal restrictions and it is not available for general purposes. Traffic Impact Fee Fund -This fund includes fees collected to construct major traffic improvements necessary to facilitate development. Fees are levied and collected on development in proportion to its impact on the transportation needs. Total revenue collected in Fiscal Year 2010-2011 was $3.1 million, which was approximately $1.4 million more than collected in the prior year. The City expended approximately $345,145 in payments to reduce outstanding obligations. In addition approximately $1,969,161 was transferred to capital project construction funds during the year. This resulted in a net increase of fund balance of approximately $800,300. The balance is designated as restricted due to the fact that there are legal restrictions and it is not available for general purposes. NON-MAJOR FUNDS The City's non-major funds are presented in the basic financial statements in the aggregate. At June 30, 2010, these funds had a total fund balance of $5,893,509. Based on the designated use of the funds they can be arranged by function as shown in Table 4 below: 1s ~~~~ °F DUB~f~ CITY OF DUBLIN /U ~ ill il~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 TABLE 4: ANALYSIS OF FUND BALANCES -NON MAJOR GOVERNMENTAL FUNDS ARRANGED BY FUNCTION (Fiscal Year 2010-2011 Compared To Fiscal Year 2009-2010) Function 2011 2010 $ Change % Change Public Safety $564,525 $329,457 $235,068 71.4% Transportation 2,585,892 2,859,719 (273,827) -9.6% Environmental 1,113,240 1,463,965 (350,725) -24.0% Parks, Culture, Arts 364,638 375,002 (10,364) -2.8% Health & Welfare 66,789 61,662 5,127 8.3% Maintenance Districts 856,276 803,704 52,572 6.5% TOTAL FUND BALANCE JUNE 30th $5,551,360 $5,893,509 ($342,149) -5.8% The full amount has been restricted under the programs indicated in the Table above. The balances are subject to legal restrictions and not available for general purposes. The changes in Public Safety reflect primarily increases in the year-end balance for Federal Asset Seizure funds and Traffic Safety fund. The Transportation function shows a decrease as a result of the use of Traffic Congestion Relief reserves for current capital projects. The Environmental function decreased due to expenditures from the Local Recycling Fund and capital expenditures from the Storm Water Management Fund. The increase in Maintenance District balances is largely due to districts in the eastern portion of the City. More information about these aggregated non-major funds can be found in the combining statements following the required supplementary information. 1~ ~~~~ °F DUB~f~ CITY OF DUBLIN /tt ~ ill il~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 GENERAL FUND BUDGETARY HIGHLIGHTS A summary of the budgetary comparison schedule for the General Fund is shown in Table 5 below. The complete schedule as required is included in the supplementary information following the notes to the financial statements. TABLE 5: SUMMARY OF GENERAL FUND ORIGINAL AND FINAL BUDGET AND ACTUAL (For the Period Ending June 30, 2011) BudgetAmounts Actual Variance with REVENUE: Taxes Licenses and permits Fines and forfeitures Use of Money & Property Intergovernmental Charges forservice Other revenue Total Revenue EXPENDITURES: General government Public safety Highways and streets Health and welfare Culture and leisure Communitydevelopment Total expenditures OTHER FlNANCING SOURCES (USES): Transfer in Transfer out Total other financing sources (uses) NET CHANGE IN FUND BALANCE Original Final Amounts Final Budget- $ 36,204,180 $ 37,393,500 $ 38,686,1 18 $ 1 ,292,618 1 ,516,980 2,820,980 2,752,748 (68,232) 131 ,540 120,540 124,615 4,075 1 ,437,140 1 ,322,534 1 ,037,649 (284,885) 392,600 504,860 496,612 (8,248) 3,891 ,170 5,046,130 6,432,785 1 ,386,655 526,700 2,949,200 3,329,292 380,092 44,100,310 50,157,744 52,859,819 2,702,075 6,200,720 8,758,689 7,878,960 (879,729) 24,150,100 24,454,768 23,576,826 (877,942) 1 ,891 ,210 1 ,908,098 1 ,833,791 (74,307) 115,430 438,169 337,222 (100,947) 7,588,459 7,735,416 7,213,114 (522,302) 5,032,840 5,757,410 5,571 ,252 (186,158) 44,978,759 49,052,550 46,41 1 ,165 (2,641 ,385) - 29,730 29,728 (2) (2,527,710) (3,459,458) (3,347,947) 1 1 1 ,51 1 (2,527,710) (3,429,728) (3,318,219) 1 1 1 ,509 (3,406,159) (2,324,534) 3,130,435 5,454,969 Over the course of the year, revisions were made to the City budget with adjustments that generally fall into one of the following four categories: • Changes made to adjust appropriations for operating carryovers from the prior year. • Changes made to adjust appropriations for capital project carryovers from the prior year. • Changes made in the mid-year report to adjust revenues and augment current year appropriations. • Other revenue and expenditure adjustments approved after the original budget was adopted. 15 ~~~~ °F DUB~f~ CITY OF DUBLIN /U ~ ill il~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 In the General Fund total actual revenues exceeded the final budget by $2.7 million for the Fiscal Year ending June 30, 2011. However, during the year the City also had net transfers to other funds of $3.3 million primarily for contributions to Capital Projects. Overall, Revenue was approximately $2.7 million or 5.4% more than the final Budget and Expenditures were approximately $2.6 million or 5.4% less than the final Budget. Included in the General Fund Revenue was approximately $2.8 million in Community Benefit payments that were contributed in accordance with Development Agreements. General Fund Taxes consist of primarily Property Taxes ($21.9 million in Fiscal Year 2010-2011) and Sales Taxes ($13.0 million in Fiscal Year 2010-2011). The final amount collected in property taxes was $532,484 more than the budget which had anticipated more drastic reductions in assessed valuation. The final result was 2.5% more property taxes than budgeted. The final amount collected in sales tax was $569,119 more than the budget, which had anticipated additional declines in automobile sales and new retail outlets contributed more than the amount assumed as part of the Budget. Although the final collections for these revenues exceeded the final budget, the combination of Sales Tax and Property Tax was only 1.6% ($563,332) more than the actual revenue in the previous year. The combination of these revenues are projected to show modest growth in the coming year as property values are adjusted based on ownership changes and the City has new retail sales outlets. Licenses and permit revenue had a small negative variance from the final budget. This reflected primarily Building permits that were anticipated to occur that may be obtained early in Fiscal Year 2011- 2012. It is important to note that permit fees can be paid in one fiscal year with the inspection expenses incurred across multiple years. Use of money and property had a negative budget variance at year end. This was attributable to lower interest rates as well as the adjustment made to reflect the market value of investments. The lease of City facilities actually contributed positively to this revenue source. The positive budgetary variance in Charges for Services primarily reflects development processing fees and Culture & Leisure Services program participation charges. The projection in the budget estimate was more pessimistic than the final services performed. In some cases, development projects proceeded with entitlement services that were expected to be delayed longer based on the economy. The Recreation programs which had the largest increase were Youth Sports and Pre-School. General Fund Expenditures overall were $2.6 million less than the Budget for all of the operating programs, with all programs showing a budgetary savings. The General Government Program had a budgetary saving of $879,729 which occurred across all departments. In addition to operating savings, this program includes a budgeted contingency account. This contingency was not fully needed and contributed approximately $154,000 of the budgetary savings. Public Safety programs were less than the budget primarily due to expenditures less than the budget for contract Police and Fire Services. In the case of Fire Services, the savings were the result of reductions to shared costs as a result of Alameda County Fire Department serving additional agencies in Fiscal Year 2010-2011. Highways and Streets had a minor savings of $74,307 resulting primarily from lower expenditures than expected for Street Landscaping as well as Public Works Administration contract services. 1h ~~~~ °F DUB~f~ CITY OF DUBLIN /U ~ ill il~~~~~ Management's Discussion and Analysis (MDA) June 30, 2011 Health & Welfare had a budgetary savings of approximately $100,947. Approximately half of this amount was related to a delay in work performed as part of an energy audit. The other factor was related to authorized contributions to the Associated Community Action Program (ACAP) program. Provisions were made to fund these costs in the Fiscal Year 2011-2012. Culture and Leisure expenditures were approximately $522,302 less than the budget. The largest factor was the timing of park maintenance responsibilities at new park sites. This accounted for approximately $336,000 of the total savings. Recreation Programs also had contract savings and the Parks & Facilities Development Staff expended more time on capital projects than was anticipated when the Budget was developed. Community Development had a savings of approximately $186,158. This was primarily related to savings as a result of Planning staff vacancies, less than anticipated demand for contract Building & Safety services, and additional Engineering Staff time expended on capital projects and not funded by the General Fund. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City's investment in capital assets for its governmental activities as of June 30, 2011, amount to $433.8 million (net of accumulated depreciation). This investment in capital assets includes land and streets right of way, buildings, park and roadway improvements, vehicles and other equipment and construction in progress, as summarized in the schedule bellow. During the current fiscal year, the City's investment in capital assets decreased by approximately $3.1 million (0.7%). TABLE 6: SUMMARY OF INVESTMENT IM CAPITAL ASSETS (For the Period Ending June 30, 2011) Governmental Activities June 30, 2011 June 30, 2010 $ CHANGE CHANGE Land $162,556,225 $162,556,225 $0 0.0% Streets right of way 35,425,288 35,425,288 0 0.0% Construction in Progress 27,214,542 22,234,992 4,979,550 22.4% Infrastructure 353,890,794 352,902,022 988,772 0.3% Buildings and Improvements 68,685,020 68,612,214 72,806 0.1% Machinery and Equipment 7,237,390 6,890,941 346,449 5.0% Sub-Total 655,009,259 648,621,682 6,387,577 1.0% Less Accumulated Depreciation (221,229,556) (211,764,575) (9,464,981) 4.5% Total Net of Depreciation $433,779,703 $436,857,107 ($3,077,404) (0.7%) The City had an active Capital Improvement Program with significant progress made on a variety of community assets as well as interstate highway improvements which provided improved access. Selected major capital activities undertaken during the current fiscal year included the projects listed below: 1~ ~~~~ OF DUBS f~ igj~~~~sz h~/// CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2011 Ca ital Pro'ect Status of Pro'ect 2010-2011 Ex enditures St Patrick Way -Right of Way Acquisition Completed $ 410,477 Annual Slurry Seal Program Completed $ 488,619 Villa e Parkwa Storm Drain Treatment Com leted $ 396,058 Tri-Valle Trans ortation -West Dublin / Pleasanton BART Com leted $1,250,000 Dublin Boulevard Bart Corridor Improvements Completed $ 421,919 Dublin Swim Center Heater Repair Completed $ 72,805 Dublin Sports Grounds Renovation Completed $ 784,792 Historic Park Develo ment Com leted $2,600,958 Positano Hills Park (Design) In Progress $ 149,376 Street Rehabilitation and Overlay In Progress $1,051,902 Traffic Signal Improvements In Progress $ 86,034 Annual Sidewalk Safety Repair Program In Progress $ 180,845 Debt For Fiscal Year 2010-2011, the City had no long term debt. State statutes limit the amount of general obligation debt a governmental entity may issue and the current debt limitation for the City is $311.5 million. As noted previously the only debt which is administered is described in the Fiduciary fund section. The City has no legal obligation for the repayment of this debt and merely ensures that the assets received are used for their intended purposes. The City has intentionally strived to finance facilities and equipment needs without using borrowed funds and incurring additional costs. ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS The economic conditions observed as the Fiscal Year 2011-2012 Budget was prepared suggested that the best approach was one of "tempered optimism". The budget estimated General Fund revenue to be slightly less than the projection of Fiscal Year 2010-2011. This outlook accounted for the fact that Fiscal Year 2010-2011 included a Community Benefit Payment which is not an on-going revenue source. The City is anticipating modest gains in property tax and sales tax revenue which would offset the non-recurrence of the large Community Benefit Payment. As part of the Fiscal Year 2011-2012 Budget planning the City Council strived to align requested changes in expenditures to the Ten Year Strategic Plan. Key initiatives were identified in order to prioritize the any new programs or initiatives. The Operating Budget is balanced with current revenue and there is no planned augmentation from Economic Stability reserves. The Budget projects that the General Fund revenues will exceed expenses by approximately $320,000. It is important to acknowledge that the City does not control many of the conditions that may have a financial impact. This includes State Budget impacts that may develop after the City has adopted its local budget. A copy of the adopted Budget and Financial Plan for Fiscal Year 2009-2010 is available online at www.dublin.ca.gov. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the financial position of the City for all those with an interest in the 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. 1~ BASIC FINANCIAL STATEMENTS ~y Tlris page intentionally left blank. 20 GOVERNMENT-WIDE FINANCIAL STATEMENTS 21 Tlris page intentionally left blank. ~~ City of Dublin Statement of Net Assets Jane 30, 2011 ASSETS Current assets: Cash and ins estments Prepaids Accounts recei~ able Accrued interest recei~ able Total current assets Noncurrent assets: Notes recei~ able Capital assets (non-depreciable): Land Sheets right of ~~ ati Cons h•uction in progress Capital assets (depreciable): Inti•ashuchue Buildings and improt'ements Machinery and equipment Less accumulated depreciation Total capihtl assets Total noncurrent assets Total assets LIABILITIES Current liabilities: Accounts parable Accrued ia-ages & other pay roll liabilities Deposit payable Conhact retention pa5-able Otiter parables Unearned rem enue Compensated absences -Due ~~rithin 1 rear Total current liabilities Noncurrent liabilities: OPEB obligations -Dublin Regional Fire AuHtoriK (Note L.B) Otiter pa} ables Compensated absences Total noncurrent liabilities Total liabilities Ins ested in capihtl assets Resh•icted tor: Public safeK Impact fee projects Highta~a~-s and sheets Health and ~~relfare Total reshicted Unreshicted Total net assets NET ASSETS See accompcut~-nzg Notes to &~ is Fnr<utcial Statements. Primary Goy ernment Goy ernntenhtl Acti~`ities $ 103,259,862 5-1,699 6,56,535 329,202 ll0,2o7,s98 6,1s~,936 162,556,225 3s,~25,2s8 27,211,511 353,89Q79~ 68,685,019 7,2.',7,391 (221,229,555) X33,779,703 X39,964,639 550,172,537 12,789,812 498,568 646, 411 289,564 9,944 ~s7o,o22 233,942 17,335,263 270, 042 480,893 545,864 1, 296, 799 18,635,062 433,779,703 1,114,186 11,013,900 3,425,8E 5,899.966 21,453,867 76,303,907 $ 531,537,477 ~~ City of Dublin Statement of Activities and Changes in Net Assets For the year ended June 30, 2011 Governmental activities: General govenmlent Public safety Highways and streets Health and weltu~e Culture and leisure Conununity development Total governmental activities Expenses Progr~ml Pevenues Operating Charges for Conh~ibutions Services ~u1d Grants $ 9,322,32 $ 225,1119 $ 105,100 2~,~13,~96 1,82,~0~ X80,036 10,1~2,9~6 X50,937 X3,106 12,7~9,0~2 2,87,952 1,530,57 9,30~,~29 2,2~,~07 X2,195 5,82,552 5,5~6,~17 19,353 71,~1~,787 13,133,26 2,220,27 General revenues: Taxes: Property taxes S~~les tax Vehicle license taxes Other taxes Tot~~l taxes Intergovernmental (unrestricted) Miscellaneous Unresh~icted investment earnings Total general revenues Change in net assets Net assets: Beginning of year, as restated End of year ?~ Net (Expenses)/ Revenue ~u1d Changes in Net Assets Capital Tool Contributions Progr~ml Goverimlent~l and Grants Pevenues Activities $ 2,910,93 $ 3,2~1,1~3 $ (6,081,179) 98,3C,~ 2,399,80 (22,013,692) 5,633,977 6,128,020 0,01,926) 928,09 5,333,818 (7,~15,22~) 6,173,930 8,30,532 (873,89' - 5,565,770 83,218 15,7~5,61~ 31,099,087 00,315,700) 21,918,~8~ 12,969,119 250, 97~ 3, 798, 515 38,937,092 196, 685 882, 73~ 536,07 ~0, 552, 558 236, 858 531,300,619 $ 531, 537,77 25 Tlris page intentionally left blank. ~h FUND FINANCIAL STATEMENTS The City reports the following major governmental funds: The General Fund - is the government's primary operating fw1d. It accounts for all financial resources of the City, except those required to be accounted for i11 another fund. The Affordable Housing Special Revenue Fund- is used to accowlt for impact fees received fiom developers of properties, which can only be used for the design, development, and construction of citywide affordable housing projects. The General Iniproz~eme~rts Capital Projects Fund - is used to manage the programming of fwlds and activities associated with major Capital Improvements Projects. The Ftu1d acctunulates resources for capital expenditures and utilizes those resources to support projects that are general >11 nature and are not Streets, Parks, or Community hnprovements projects. The Conunurrit~ Improz~emcnrts Capital Projects Fund - is used to manage the programming of funds and activities associated with major the Capital hnprovements Projects. The Fund accumulates resources for capital expendihires and utilizes those resources to support projects that would promote or enhance redevelopment, revitalization, beautification of the City's community and are not General Improvements, Streets or Parks related projects. The Parks Capital Projects Fund - is used to manage the programming of funds and activities associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or er~ilance the City's parks and facilities. The Streets Capital Projects Fund - is used to manage the programring 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 Fees Capital Project Fund - is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of new public facilities within the City. The Fire Impact Fees Capital Projects Fund - is used to account for fees received fiom developers of properties, which can only be used for the design, development, and construction of fire capital expansion projects with>11 the City. The Traffic Ini~act Fees Capital Projects Fund - is used to accowlt for fees received from developers of properties, which can only be used for the design, development and construction of street projects within t11e City. ~~ City of Dublin Balance Sheet Goverrunental Funds June 30, 2011 ~titiETti Cash and mveshnents Resh'icted cash cold investments L'repaids ~ccotutts receit°able accrued interest reaeccab le Notes Recec~-ab le Long_ -term rececaab les Due from other ftutds ~dt-utces to ISE PERS Side Etutd -~dt-m1~'es to other ftmds Total assets LL~EILITIEti AND FUND B~L.~NCES Liabilities: Accotutts parable accrued wages curd other pa~-roll liabilities Deposits pad-able C rnth'act retention parable Other paj-ables Liabilities insurmtce claims paS able Deferred Re~-enue Due to other ftutds -~dt-<ulces from other ftulds Total liabilities Fund Balances: Non Spendable Restricted c~ntnutted assigned Unassigned Total ftmd b alutces Total liabilities and fiend balances Special Rem enne Capital Pr«ject Ftmds Allor3able ~ P1lPTa1 Conmltnntc' General Housnlg Iulpro~ ement Iulpro~ ement Parls Ftmd Ftmd Projects Projects Projects $ 65,029,009 $ 6,sOSSL $ 63,66s $ 91,635 $ 32~s51 19,s23 1,96 - - - 3,1s3,223 250 )30 - 301 329, 202 - - - - - 6,177,353 - - - x,022,107 - - - - ~,30Q955 - - - - 1, 7 35,9SS - - - - $ 7,660,307 $ 12,9ss,3(il $ 6~,59s $ 91,635 $ 325,192 $ ss90,267 $ 1,55,955 $ ~9s,sls - 633,so6 llsos 1),263 - 20$977 - 2(i(i,25s 6,177,353 10,517,OS6 7,735,116 0,156,76s - - 5,253,25 ~7,s93,7 55 - ls,s~1,~75 - 13,251,263 - 60,1~3,261 5, 253,25 35,19 $ 26,L9 61,595 75,397 $ 215,OS7 - 33 13,23s 11Q072 91,635 325,192 2S City of Dublin Balance Sheet Goverrunental Funds June 30, 2011 ASSETS Cash and investments Resh'ated sash cold investments f'repaids ?.ccotults recec~-able accrued interest recei~-ab le Notes Rececvable Long_ -term receivables Due from other ftulds ~dvcuzces to I8E PEPS Side ELU1d _~d~-culcec to other Rinds Total assets LL~EILITIES AND FUND B~L.~NCES Liabilities: ~ccotults parable accrued wages curd other pas roll hab ihtces Deposits paT-ab le C'rnzh'act retention parable Other parables Liabilities insurmlce claims paS able Deferred Revenue Due to other ftulds _~dv<ulces from other ftulds Total liabilities Fund Balances: Nrn1 Spendable Restricted Connrutted ?signed Unassigned Total Rind balulcas Total liabilities and fund balances Capital Project Fiords Capital Project Pubic Fue Trafric Streets Facilities Impact Impact Preajects IuipactFees Fees Fees Non-Major Goy enmieutal Fiords Total $ 1,121,172 $ 3,556,071 $ - $ 6,637,335 $ 5,113,519 $ 59,112,115 - - - - - 21,76) - - - 195,930 2,172,005 6,152,679 - - - - - 329,202 - - - 7,553 - 6,150,936 - - - - - x,022,107 - - - - - ~,31Q955 - - - - - 1,735,955 $ 1,121,172 $ 3,556,077 $ - $ 7,110,515 $ 7,915,550 $ 105,20Q051 $ 1,006,310 $ - $ - $ 369,253 $ 312,357 $ L,156,135 20 - - - - 195,565 - - - 797 - 606,011 120,512 - - - - 259,560 - - - - - zos,977 - - - 7,553 - 6,151,191 - - - - x,022,107 x,022,107 - - 1,735,955 - - 1,735,955 1,127,172 - 1,735,955 377,663 2,361,191 21,335,911 - - - - - 1,156,765 - 3,556,077 - 7,063,155 5,551,360 21,153,567 - - - - - 27,593,155 - - - - - 1S,S11,175 - - (1,735,955) - - 11,515,275 - 3,556,077 (1,735,955) 7,063,155 5,551,360 53,561,110 $ 1,127,172 $ 3,556,077 $ $ 7,110,515 $ 7,915,551 $ 105,200,051 x~ This pale iriteritioriallq left hhm1~. 3U City of Dublin Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets June 30, 2011 Fund Balances of Governmental Funds $ 83,861,10 Aiuounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not current fin~ulcial resources and therefore are not reported in the Govertmlent~l Funds Ba1~ulce Sheet. Non depreciable assets (L~uzd ~u1d coi~struction in progress) 21,191,875 Depreciable buildings, property, equipment and inh~astl~ucture, net 166,656,319 Total capital assets 380,8~8,19~ Compensated absences payable, are not due and payable in the current period and therefrn~e are not reported in the governmental fund financial statements. (779,806) OPEB obligations ~u~e not due ~u1d payable in the current period and therefore ~u~e not reported in the governmental liuld fin~ulcial statements. (270,02) Deferred revenues recorded in Governmental Fund Financial Statements resulting fi~om activities n1 which revenues were earned but funds were not available are reclassified as revenues in the Government-Wide Fin~ulcial Statements. 3,581,172 Provision for Incurred But Not Deported general liability is not due and payable in the current period and therefore are not reported in the governmental fund financial statements (271,910 Internal service funds are used by management to charge the cost of certain activities, such ~~s asset replacement and retiree health r<u~e to individual funds. The assets and liabilities of the internal service funds are included in the Govermnent-Wide Statement of Net Assets. 6,56$733 Net Assets of Governmental Activities $ 531,537,77 See ~lccomprul~ ing Notes to Basic Financial Statements. 31 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2011 Speccal Rey°enue Capital Project Fiords ~.lkt rdable GeIleTal 1lOll11171lllltT" Hotvanlg Iuipro~-ement Iulproeement Parrs General FtuZd Projects Projects Projects PEA"ENUES: Property dues $ 21,918,484 ~ - ~ - ~ - ~ - Sales hu~ L?,959,119 - - - - Other trues 3,%c~8,515 - - - - Intergo~-ernmentctl 496,aL - - - - Licenses curd permits 2,'52„'4S - - - - Charges for servcce 6,432,'85 57,Oi 1 - - - Interest 53ti,047 1t o,93°_ _ _ Use of property 501,aD1 47?,040 - - - Fuzes and torteitures L'4,615 - - - - Dei-elo per feet - 973?RO - - - ~ 1 Other revenue Speccal assessments Total re~~enues E\PENDITUPES: Current: General goy°ernment Pubhc safety Hiohwacs cold sheets Health and welfare Culture cold leisure Couuntulit~- dei-elopment C apctal outlac: General cmpro~-ements Couuntuut~ impro~=eurents Parks 5h'eetS Total expendihues P.EVENUES UPEP (UNDEP.) E\PENDITUPES OTHEP. FINANCING SOUP.CES (USES): Trculsfer in Trculsfer out Total other financing sources (uses) NET CH.~NGE IN FUND B.~L.~NCES FUND E.~L.~NCES: Pegmnmg of ~ ear End of rear 52,859,819 1,146, S 13 114, 83' ;',~^8,960 54,33 oq ^~ 8~l _ 1,53 ,°91 - __„_^_'? 9,684,611 ~L,114 - 5,571,ffi2 - 599,905 ~~A 11A _ 46,411,165 9,738,844 599,9x5 38,415 3,809,7^_3 v,4#8,65# (7,591,031) (485,183) (32S,41S) (3,509,72'0 '9,728 6,n00 485,1;3 328,418 3,509„`23 (3,347,947) - (3,318,119) 6,600 455,133 31S,41S 3,809,713 !i 1,01?,816 12,88$ 6 7b - - - ~; 64,143 161 `)' 145 $ - $ - `)' - 32 City of Dublin Statement of Revenues, Expenditures an Governmental Funds For the year ended June 30, 2011 PEA"ENUES: Property hues Sales teu Other taxes Intergoc-ernuiental Licenses and permits Charges For ser~'ice Interest Use of propert~- Fu1esand forfeitures De~-eloper fees Other rep°enue Special assessments Total revenues ESPENDITUP.ES: Current: General goy°ernment Pubhc safety` Hiohwacs cold sheets Health and welfare Culture auld leisure Couunculit~- dei-ek,pment C spiral outlan General cmpro~-ements Couuncuut~ impro~=eutents Parks Streets Total expendihues P.EVENUES UPEP (UNDEP.) E\PENDITUPES OTHEP. FINANCING SOUP.CES (USES): TrculsFer in Trculsfer out Total other financing sources (uses) NET CH.~NGE IN FUND B.~L.~NCES FUND E.~L.~NCES: Pegunnng of Sear End of rear C<ipikil Project Fiords Capital Project puhhc Fne TraFhc Non-hfalor Sheets Facilities Impact Impact Go~-ernmental Projects Fees Fees Fees Frulds Total `I: - ~ - `1! - `I: - `l: 148,590 `1! '''',06~,07~ - - - - 443,313 13,412,432 - - - - - 'x,798,515 - - - - 'x,449,159 3,94b,271 - - - - - ,748 _ _ _ _ ~,~_,3,014 S,?43,460 - 3,494 - 102,139 114,'07 95°_,819 - - - - - 978 042 - - - - 1'8,980 303,595 - 5,'_51,;/_, 9803 3,012,417 104,518 9,3)0,001 - - - - 118,407 4,135,091 - - - - 904.7;q 904,739 - ,284,51' 95,303 3,114,006 °60,08° X1,385,387 - - - - .,214 7,935,40.' - - 25,{05 - 944,115 24,540,450 - - - 3#5,145 851,10# 3,030,540 - - - - 2,553,7tY_3 L,775,53a - 10,094 - - - ,--3,808 - - - - '5,351 5,609,6(Y_~ - - - - - 599,905 - - - - - ~~5,418 _ _ _ _ _ 3,809,723 4,513,07°_ - - - - 4,513,0T_ 4SL,072 10,..,94 S,4~i5 315,145 45c!0,03° X0,3^2,528 (4,513,0°2) ,,2°4,173 72,S9S 2,769,401 ;,1°6,050 1,111?,859 4,503,755 - (325,053) 4,503,°5S (328,053) - - 9,163,300 (1,919,111) (3,518,199) (9,1x3 X00) (1.969,161) (3,518,199) - 9,314 (1,300,043) (1,5118,880) 6,202,885 5,893,509 S ,S4S,°81 `): - $ 5&,,07 $ (1,735,c!48) `):0(.3,185 `); 5,551,;60 $ 83,801,110 3 City of Dublin Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets For the year ended June 30, 2011 Net Change in Fund Balance -Total Governmental Funds $ 1,012,859 Amounts reported for goyernmenhll activities nl the Statement of Activities differs fiom the amounts reported nl the Shltement of Revenues, Expenditures, ~md Changes n1 Fund Balances because: Governmenhll funds report acquisition of capihil Assets as expenditures n1 various functions and n1 ripihil outlay. However, n1 the Government-Wide Shitement of Activities and Changes n1 Net Assets, Hie cost of those assets is allocated Dyer their estnnated useful lives as depreciation expense This is the amount of capital assets additions recorded n1 the current period. This amount excludes the nlternal service funds capihll asset additions of $255,992. 7,193,161 Depreciation expense on capital Assets is reported n1 the Goyenunent-Wide Shltement of Activities and Changes n1 Net Assets, but it does not requite the use of current fnlancial resources. Therefore, depreciation is not reported as an expenditure n1 goyernmenhll funds. This amount excludes the nlternal service funds depreciation of $3,022,339. (6,~~2,6~0) Goyernmenhll funds report acquisition of capital assets as expenditures n1 various functions and n1 capital outlay. However, n1 the Government-Wide Statement of Activities and Changes nl Net Assets, the cost of those assets i<s allocated Dyer their estnnated useful lives as depreciation expense. This is the amount of capital assets deletions recorded nl the current period. (1,061,578) Changes n1 long term compensated absences n1 govermnental acfiyities are not reported n1 governmental funds. ?x,506 Accrual of OPEB obligations does not require the use of current fnlancial resources and therefore is not recorded as expenditures on the governmental fund fnrulcial statements (58,777) Revenues that have not met the revenue recognition criteria n1 the Fund Fnlancial statements are recognized as revenue ul the Govenunent-Wide Financial Statements. This amount represents the change ul deferred revenue from prior year. (266,258) Provision for Incurred But Not Reported general liabffity is not due and payable n1 the current period and therefore are not reported n1 the govertunehlal fund fnlancial statements (271,910 Internal service liuufs are used by m~magement to charge the costs of cerhlnl activities to nufiyidual funds. The net change n1 assets of the nlternal service funds is reported ~a~ith goyenunenhil acHyities• 109,99 Change in Net Assets of Governmental Activities See accompemynlg Notes to Basic Fnlancial Shtements. 236,858 3~ City of Dublin Statement of Net Assets Proprietary Funds June 30, 2011 ASSETS Current assets: Cftsh dnd mVPStlnell tS Prepaid items Accounts receivable Total current assets Non Current assets: Capital Assets: Land Construction in progress Buildings and improvements Machinery and equipment Less: accumulated depreciation Total capital assets Total assets LIABILITIES Current liabilities: Accounts payable Other payable Due to other fund Total current liabilities Total liabilities NET ASSETS Invested n1 capital assets Unres h~ic ted Total net assets See ~iccomp~in~ ing Notes to B~isic Fn~~inci~il Shltements. Governmental Activities Internal Service Funds $ 1~,1~7,01~ 32,930 111,856 1-1,291,800 10, 77~, 792 229, 387 62,081,62 6, 3~~, 31~ (26,98,608) 52,931,509 67,223,309 303,677 9,9~~ 2,30,955 ~,65~,576 ~,65~,576 52,931,509 11,637,22 $ 6,568,733 35 City of Dublin Statement of Revenues, Expenses, and Changes in Net Assets Proprietary Funds For the year ended June 30, 2011 OPEPATING PEVENUES: Char}es for sere ices Other rem enue Total operating revenues OPEPATING EXPENSES: Supplies and sel~~iees OPEB eaT~enses Depreciation Total operating expenses OPEPATING INCOME,/(LOSS) NONOPEPATING PEVENUES: Interest llll'Ollle Transfer from the General Fund Sales of PropertS Total nonoperating revenues NONOPEPATING EXPENSES: Transfer to the General Impro~~ements C apical Projects Fund Total nonoperating expenses NON OPEPATING INCOME,/(LOSS) Change in net assets NET ASSETS: Begnuung of j ear, as restated End of rear See acconlpan~~in~ Noes to Basic Financial Stitenlents. Goy erlmienhll Actin hies Internal Service $ 1,706,579 360,856 615,000 3,022,337 3,998,19 176,799 x,000,000 13,206 x,190,005 11,832 ii~,s32 x,075,173 109,99 6~,~59,23~ $ 6,568,733 36 City of Dublin Statement of Cash Flows Proprietary Funds For the year ended June 30, 2011 CASH FLOWS FROM OPERATING ACTIVITIES: Peceipt h~om other funds Payments to suppliers and service providers Other revenues Net cash provided by operating activities CASH FLOWS FROM NON CAPITAL AND RELATED FINANCING ACTIVITIES: Payments h~om other funds Net cash provided by capital and related financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Sales of property Acquisition of capital assets Net cash used by capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Interest received Net cash provided Uy investing activities Net increase in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of year End of year RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating nuome (loss) to net cash provided (used) by operating activities: Depreciation Net effect of changes in: Accounts receivable Prepaid items Accounts payable OPEB Obligation Net cash provided Uy operating activities Governmental Activities Internal Service Funds $ 1,706,579 (818,239) 325,90 1,21-1,280 1,698,109 1,698,1119 13,206 (338,036) (32,830) 176, 799 176, 799 ~, 76~, 358 11,382,656 $ 1-1,1-17,01 $ (1,965,670 x,022,338 (1,2-10) (22,85) (10,00) 191,71 $ 1,21-1,280 37 Tlris page intentionally left blank. 3h City of Dublin Statement of Fiduciary Net Assets Fiduciary Fund June 30, 2011 Agency Fund ASSETS Cash and inveshnents $ 1,~27,63~ Pesh~icted cash and nlveshnents 16-I,500 Peceivable 75,385 Total assets $ 1,667,519 LIABILITIES Accounts Payable $ X0,813 Due to h~ustee 1,225,882 Due to bondholders ~00,82~ Total liabilities $ 1,667,519 See accompanvulg Notes to Basic Financial Shltements. 39 Tlris page intentionally left blank. ~l ) City of Dublin Index to Notes to Basic Financial Statements For the year ended June 30, 2011 Pale L Sununary of Significant AccoLmtitng Policies ....................................................................................................44 2. Cash, Cash Equivalents and hnvestments ..........................................................................................................53 3. Notes Peceivable ................................................................................................................................................... 61 4. Interfund Transactions ......................................................................................................................................... 64 5. Capital Assets ......................................................................................................................................................... 66 6. Special Assessment City Debt (Non-Obligatory) .............................................................................................. 68 7. Joint Powers Agreements ..................................................................................................................................... 69 8. Fund Equity ............................................................................................................................................................ 69 9. Pisk Management .................................................................................................................................................. 71 10. Compensated Absences ........................................................................................................................................ 72 11. Pension Plan ...........................................................................................................................................................72 12. Post Employment Health Care Plan ...................................................................................................................74 13. Conunitment and Contingent Liabilities ........................................................................................................... 80 14. Deficit Fwnd Balance ............................................................................................................................................. 81 15. Prior Period Adjustments ..................................................................................................................................... 81 16. Termitnation Benefits .............................................................................................................................................82 ~1 T1iie pn~e intentionalli~ left blank. ~2 NOTES TO BASIC FINANCIAL STATEMENTS ~~ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Dublin, California, (City) have been prepared in confornuty with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Govenunental Accoumting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting pr>lzciples. The more sib ificant of the City's accounting policies are described below. A. Reporting Errtit~ T11e City is a residential community with a significant regional conmlercial base, located in t11e Tri- Valley area of Alameda County, California at the crossroads of hlterstate Freeways 580 and 680. The City was incorporated as a municipal corporation on February 1, 1982. The total population published by the California Department of Finance based on the 2010 Census was 46,036 including prisoners housed at the Alameda County Sheriff's Departrnent Santa Rita Jail and at the Federal Correctional Institute. The 1/1/2011 Population Estimate adjusted by the State Department of Finance based on the 2010 Census data was 46,473. The City of Dublin was ranked at #181 out of 480 cities within California. T11e 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, 2011, the City's staff was comprised of 82 City's permanent employees who were responsible for City-provided services. The City provides many traditional municipal services through contracts with both public and private agencies. Approximately 120 contract employees whom provided a variety of nmicipal services from City facilities. At of June 30, 2011, the City had approximately 168 temporary and seasonal personnel that were on active payroll status. B. Basis of Accourrtiyig acid Measurernerrt Foots The accowlts of the City are organized on the basis of funds, each of which is considered a separate accowltuzg entity. The operations of each fund are accounted for with a separate set of self-balancing accowlts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Govenunent resources are allocated to and accounted for in individual fwlds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government-wide Financial Statements The City's Government-wide Financial Statements include a Statement of Net Assets and a Statement of Activities and Changes i11 Net Assets. These statements present summaries of Governmental Activities for the City. Fiduciary activities of the City are not uzcluded u1 these statements. ~~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accourrting acid Measureruent Focus, Corztiuued Government-wide Financial Statements, Continued These statements are presented on an "economic ~~esoin~ces° measurement focus and the accrual basis of accowlt>lzg. Accordingly, all of t11e City's assets and liabilities, including capital assets and infrastructure as well as long-term debt, are included i11 the accoznpany>lzg Statement of Net Assets. The Statement of Activities presents changes i11 net assets. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded in the period >lz which t11e liability is incurred, regardless of the timuzg of the related cash flows. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. The types of programs revenues for the City are reported iiz three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Charges for services >1lchide revenues from customers or applicants wllo purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grants and contributions include revenues restricted to meeting the operational or capital requirements of a particular fuunction. Taxes and other items not properly >luhided among program revenue are reported instead as general revenue. Certauz elimuzations have been made as prescribed by GASB Statement No. 34 in regards to uzterfund activities, payables, and receivables. All internal balances in the Statement of Net Assets Have been elimuzated. Governmental Fund Financial Statements Governmental Fw1d Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fw1d Balances for all major governmental funds and aggregated non- major funds. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to t11e net assets presented in the Government-Wide Financial Statements. The City has presented the General Fund and the Affordable Hous>lzg Special Revenue Fund as major funds because they met the qualifications of GASB Statement No. 34. In addition, the City has elected to present the following funds as major funds because of their significance to the City as a whole: the Public Facilities Fees Capital Projects Fund, Traffic Impact Fees Capital Projects Fund, Fire hnpact Fees Capital Projects Fund, General Improvements Capital Projects Fund, and Community Improvements Capital Projects Fw1d, Parks Capital Projects Fund, and Streets Capital Projects Fund. All governmental funds are accounted for on a spending or "ciat~rent fin~ncinl resources° measurement focus and the modified accrual basis of accoLUltiizg. Accordingly, only current assets and current liabilities are generally included on the balance sheets. Tl1e reported fund balance is the net current assets, which is considered only to be a measure of available spendable resources. Governmental fwzd operating statements present a summary of sources and uses of available spendable resources during a period by presenting increases and decreases >lz net current assets. Under modified accrual basis of accotmting, revenues are recognized in the accounting period >lz which they both become measurable and available to finance expenditures of the current period. ~5 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accouyitiyig acid Measuremeyit Focus, Coritirn~ed Governmental Fund Financial Statements, Continued Accordiingly, revenues are recorded when received iln cash, except that revenues subject to accrual (generally 60 days after year-end) such as Transient Occupancy Taxes, hnterest Income, Charges For Services, and Courts Fines. Accruals for tlne Property Taxes and Sales Tax revenues are made to accownt for actual revenues earned during the fiscal year, notwithstanding tinnitng of receipt. Licenses, Use of Property, and Permit revenues are not susceptible to accrual because they generally are not measurable until received iln cash. Expenditures are generally recob sized under the modified accrual basis of accountiing when the related fund liability is incurred, except for prilncipal and interest on general long term obligations which are recognized when due. Because of their current financial resources focus, expenditures recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund expenditures or fund liabilities. Tlne City reports the following major governmental funds: The General Fund - is tlne governments primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The A{_{ordable Horsing Special Pevenue Fund - is used to accownt for in-lieu housing fees received from developers of properties, which can only be used for the design, development, and construction of citywide affordable housing projects. The Public Facilities Fees Capital Project Fund - is used to account for the impact fees received from developers of properties, which can only be used for the design, development, and construction of new public facilities withers the City. The Traffic Impact Fees Capital Projects Fiend - is used to account for fees received from developers of properties, which can only be used for the design, development and construction of street projects within the City. The Fire Impact Fees Capital Projects Fund - is used to account for fees received from developers of properties, which can only be used for the design, development, and construction of fire capital expansion projects wiflnitn the City. The General Improvements Capital Projects Fund - is used to manage the programnning of funds and activities associated with major Capital Improvements Projects. The Fwnd accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets, Parks, or Community hmprovements projects. ~E~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accouyitiyig acid Measuremeyit Focus, Coritirn~ed The Communitii Improvements Capital Projects Fund - is used to manage the programming of funds and activities associated with major the Capital hnprovements Projects. Tl1e Fw1d accumulates resources for capital expenditures and utilizes those resources to support projects that would promote or enhance redevelopment, revitalization, beautification of the City's conmltulity and are not Streets or Parks related projects. The Parks Capital Projects Fund - is used to manage the programming of fiords 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 ei~ilance the City's parks and facilities. The Streets Capital Projects Fund - is used to manage the programming of funds and activities associated with major the Capital hnprovements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's 1lighways, streets, roads, bridges, lighting, or the storm drain systems. Proprietary Fund Financial Statements Proprietary Fund Financial Statements iulude a Statement of Net Assets, a Statement of Pevenues, Expenses, and Changes iz Net Assets, and a Statement of Cash Flows. All proprietary funds are accowzted for using t11e accrual basis of accounting and t11e "economic resources" measurement focus. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. All liabilities associated with their activity are also iuluded on the Statement of Net Assets. The City's proprietary funds are the Internal Service Funds which are used to account for the financing of goods or services provided by department or agency to other department or agencies of the City on a cost-reimbursement basis. The City uses internal service fwlds to account for asset replacement and internal charges collected for the purpose of funding post-retirement health care activities. Because t11e principal users of t11e internal services are the City's govermnental activities, the financial information of the internal services funds are consolidated into the governmental activities column when presented in the government-wide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity. Proprietary fwlds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providilg services i1 connection with a proprietary fiend's principal ongoing operations. The principal operatilg revenues of the City's proprietary funds are charges to customers for services. Operating expenses include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this defilition are reported as nonoperatilg revenues and expenses. ~7 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Fiduciary Fund Financial Statements, Continued Fiduciary Fund Financial Statements unclude a Statement of Net Assets. The fiduciary fwnds are used to report assets held iIn a trustee or agency capacity for others and therefore are not available to support City programs. Since these assets are being held for the benefit of a third party, these funds are not incorporated into the government-wide statements. The City's fiduciary fund consists of one agency fund. The Dubliin Boulevard Extension Special Assessment District is an agency funnd, which uses the accrual basis of accounting to account for annownts held for debt service on the Dubl>ln Boulevard Extension Project. The Agency fund is custodial iin nature (assets equal liabilities) and therefore does not involve measurement of results of operations. The City is not responsible for payment of the bonds and acts only as an agent to collect assessments, pay bondholders, and initiate foreclosure proceedings. The Associated Community Action Program (ACAP) is an expendable trust fund which was established for the City to act as fiscal agent to collect and account for the contributions received and to coordiinate adninistrative services in the operation leading to the agency ceasirng its operation. ACAP is a Joint Powers Authority, whose members unclude the Alameda County and twelve incorporated cities in the Cownty (except Berkeley and Oakland), formed to provide and admiinister social service related prob ams. The Agency fund is custodial iln nature (assets equal liabilities) and therefore does not innvolve measurement of results of operations. Tlne Fallon Village and Schaefer Ranch Geological Hazard Abatement District (CHAD) are expendable trust funds. Each fiscal year, the District Engineer prepares an Eng>lneer's Report which includes the budget for the CHAD for that year. The annual budget consists of regular site nnonitor>ing, annual ilnspections, contract services for annual nnitigation and repairs, and administrative costs. The fwnds collected through special assessment are placed unto a dedicated reserve fLmd. Tlne reserve fund is set aside to be used to mitigate and repair large, geologic hazards, such as landsides iln the Fallon Village and the Schaefer Ranch Subdivisions. C. Capital Assets Capital assets, which include buildings, maclnilnery and equipment, and infrastructure assets (roads, bridges, curbs and b hers, streets and sidewalks, drainage systems, lighting systems, and park improvements), are reported in the Governmental Activities cohmuns of the Government-Wide Financial Statements. Capital assets are def>lned by the City as assets with an initial, individual cost of more than $2,500 for general capital assets and $100,000 for infrastructure capital assets. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair market value on the date donated. Capital assets are depreciated over their estimated useful lives usung the straight-laze method. This means the cost of the asset is divided by its expected useful life un years and the result is charged to expense each year Lentil 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. ~H City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Capital Assets, Corrtirrued Depreciation of capital assets is charged as an expense against operations each year and t11e total amount of depreciation taken over the years, called accumulated depreciation, is reported on the Statement of Net Assets of the government-wide fiizancial statements as a reduction i11 the book value of the capital assets. The City has assigned the useful lives listed below to capital assets. Building and Improvements 20-38 Years Machinery and Equipment 3-15 Years Infrastructure 20-75 Years D. Use of Restricted Resources When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as needed. E. Cask acrd Irrvest~uerrts GASB Statement No. 31, "Accounting and Financial Repotting fot~ Ceu~tain Im~estnients anti External Pools", requires governmental entities to report certaiiz investments at fair value iiz the balance sheet and recognize the corresponding change in the fair value of investments iiz the year in which the change occurred. In accordance wifll GASB Statement No. 31, the City has adjusted iilvestinents to fair market value. Proprietary fund type cash and investments are used i11 the preparation of the statement of cash flows as investrnents are not allocated to specific funds. Each of these funds' allocation of pooled cash and illveshnents is considered cash and cash equivalents. In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Aniendnent of GASB No. 3), certain disclosure requirements for Deposits and Investment P`isks were made i11 the following areas: ' Interest Pate Pisk ' Foreign Currency Pisk ' Credit Pisk ^ Overall ^ Custodial Credit Pisk ^ Concentrations of Credit Pisk In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. ~y City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Defen^eci Crnnpensation Plan Tlne City participates iln an ilnvestrnent pool managed by tlne State of California titled Local Agency Investment Fwnd (LAIF), which has >lnvested a portion of the pool funds in Structured Notes and Asset- Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizung these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates. City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with hnternal Revenue Code Section 457. Under this plan, participants are not taxed on tlne deferred portion of their compensation until it is distributed to them; distributions may be made only at ternnunation of employment, retirement, death, or un an emergency as defined by the Plan. In accordance with GASB Statement No. 32, tlne funds leave been placed in a trust administered by ICMA Retirement Corporation and are not available to the City's general creditors. Accordingly, the City does not report the assets in the financial statements. G. Property Tax Alameda County assesses properties and bills, collects, and distributes property taxes to the City. The County rennits the entire annount paid and handles the collection of all delilnquencies. The City receives proportionate shares of prior year collections uncluding unterest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. The property tax assessments are formally due on November 1 and February 1, and become delinquent after December 10 and April 10, respectively. Taxes become a lien on the property effective January 1 of the preceding year. H. Post Ernplo~fnent Healtk Care Benefits The City provides certaun health care benefits for retirees, as required under a contract signed with PEPS. All former employees who retire with the City Linder PERS are eligible for these benefits. GASB 45 requires public agencies to estinnate their Other Post Employment Benefits (OPEBs) and accownt 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 accownt for the expenses as benefits are accrued for the employees. The City engaged in an Actuarial Study Update with Bartel Associates, LLC and based on the 2007 actuarial result, the use of the CALPERS trust fund was foLmded to have the benefits of reducing the City's contribution towards Retiree Medical in the future. Ole 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 lnealtln care. The CERBT fund is an agent multiple employer plan and lln order to ensure that the CERBT fund remains compliant with all reportung requirements, the CALPERS is responsible for publishung aggregate GASB 43 compliance Financial Statements, Notes, and Required Supplementary hnfonnation (RSI). The information maybe foLmd on CALPERS web site at www.calpers.ca.gov. 50 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Post-Ernplo~rnent Healtk Care Benefits, Continued Tlne City also provides health care benefits for certain former employees who retired from the Dougherty Regional Fire Authority (DRFA). The DRFA is a closed Jo>lnt Power Authority. The cost of those retiree health care benefits is recognized as expenditures in the general fund as premiums are paid. The Cost is recognized on the full accrual basis in the government-wide statements. The City of Dublin and the City of San Ramon share the costs, with Dublin paying 57.51% and San Ramon paying 42.49% on a "pay as you go" basis. I. Net Assets Government-Wide Financial Statements h1 the Government-Wide Financial Statements, net assets are classified in the following categories: Invested in Glpital Assets, Net of Related Debt -This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. Restricted Net Assets - Tlnis amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Unrestricted Net Assets -This amount is all net assets that do not meet the def>lnition of "invested in capital assets, net of related debt" or "restricted net assets." Fund Financial Statements Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund's cash and receivables, less its liabilities. Previously the fund balances were grouped as Reserved and Unreserved Fwnd Balances. Effective July 1, 2010, Fund balance reclassifications were made to conform to the provisions of GASB No. 54. GASB No. 54 establishes criteria for classifying fund balances alto specifically defined classifications to provide clearer hierarchy of fund balance based on constraints and to achieve consistency in reporting between Fund Financial Statements and Government-Wide Financial Statements. It applies to government reporting to government fund, therefore, it excludes proprietary funds and business-type special purposes governments. GASB 54 details five components of fund balance: Non-Spendable; Pestricted; Conunitted; Assib ned; and Unassigned. The City reported all five components on the Balance Slneet of the Governmental Funds. Refer to Note 8 for more >lnformation. Non-Spendable Fiord Balance is the portion of fwnd balance set aside to >lndicate that these items do not represent available and spendable resources or they are legally or contractually required to maintain intact, even though they are a component of assets. Examples of these items are inventories, Prepaid Items, or Loeb Term Peceivables. 51 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Net Assets, coyrtifrued Pestrictecl Furu~ B«Innce is the portion of fund balance constrained for specific purposes imposed by external parties, by law, or by enabling legislation legally enforceable by external parties. Comniittec~ Ftmc~ Balance is the portion of fund balance constrained for specific purposes imposed by formal action of the 1lighest decision making authority (City Council) and can only be removed by the same formal authority. Assigned Fiend Balance is the portion of fund balance set aside by to be used for specific purposes. This category has no formal constraint however the governing body delegates authority to Management and/ or to Budget Conu7uttee. All residual fund balances outside the general fund are assigned. Unassi~nec~ Fund Balance is the portion of fund balance that 11as no specific restrictions, comnutlilents, assigiunents, and has not been assigned to other funds and is reported only i11 the General Fund. This is essential the "leftover" classification for the General Ftuzd. j. Use of Estimates The preparation of financial statements uz confornuty with generally accepted accounting pruzciples requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. IC New Prorioufreenie~rts In 2011, t11e City adopted new accounting standards in order to conform to t11e follow>11g Governmental Accounting Standards Board (GASB) Statement: - GASB Statement No. 54 -Fund Balance Reporting and Governmental Fund Type Definitions (Issued 02/09). The objective of the GASB 54 Statement is to enhance the usefulness of fund balance uzformation by providing clearer fund balance classifications that can be more consistently applied and is comprised of a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. There are 5 dist>lzctions >11 the new fund balances that can be categorized as Non-Spendable, Restricted, Comnutted, Assigned and Unassigned. 52 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K New Proriouxcemerrts, cofrtirrued - GASB Statement No. 59 -Financial Instruments Omnibus. The Statement updates several existing standards regarding financial reporting of certa>zn financial instrtmlents and external investment pools. It emphasizes the applicability of the U.S. Securities and Exchange Commission requirements to external investment pools -known as 2a7-like pools - to provide users more consistent information on qualifying pools. The Statement addresses the applicability of GASB #53, Accountiing and Financial Reportinng for Derivative hnstruments, to further clarify which financial unstrunnents are withun the scope and to provide greater consistency un funancial reporting. Further it applies the reportnng provisions for interest-earning investment contracts of GASB #31, AccoLmting and Finnancial Reporting for Certain Investments and for External Investment Pools, to unallocated >lnsurance contracts to improve the consistency of reporting by pension and OPEB plans. 2. CASH, CASH EQUIVALENTS AND INVESTMENTS The City mailntains a cash and >lnvestment pool, which itncludes cash balances and authorized investments of all funds, which the City Treasurer invests to enhance interest earniings. The pooled hnterest earned is allocated to the fwnds based on average monthly cash and >lnvestment balances iln these funds. A. Cask Deposits At Jwne 30, 2011, the carrying amotunt of the City's cash deposits was $2,113,559. Deposits iln transit were $120,690. The total outstandirng checks were $1,067,967. Bank balances before reconcil>Ing items were $3,057,836 at that date, the total amoLmt of which was insured or collateralized with securities held by the pledgung funancial iinstitutions iln tlne City's name as discussed below. The California Government Code requires California banks and savungs and loan associations to secure tlne City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security >lnterest iln such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held iln the City's name. The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledgung first trust deed mortgage notes having a value of 150% of the City's total cash deposits. Tlne City may waive collateral requirements for cash deposits, which are fiilly insured through December 31, 2012, for non>lnterest beariing accounts by tlne Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements. The City follows tlne practice of pooliing cash and unvestrnents of all fwnds, except for fwnds required to be held by fiscal agents vender the provisions of bond indentures. hnterest inncome earned on pooled cash and innvestments is allocated on an accowntung period basis to tlne various fiords based on tlne period-end cash and investment balances. hnterest income fronn cash and investments with fiscal agents is credited directly to tlne related fwnd. 5~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued B. Ifrvest~yiesrts Under the provisions of the City's investment policy, and in accordance with Section 53601 of the California Government Code, the City is authorized to invest or deposit u1 the following investments: • United States Treasury Issues • Federal Agency Obligations • Bankers' Acceptances • Connnnercial Paper. • Time Certificates of Deposit • Money Market Funds • State of Cahfonnia Local Agency Investment Fwnd (LAIF) • California Asset Management Prob am (CAMP) In accordance with GASB Statement No. 31, Accounting anc~ Financial Reporting for Certain Investments anc~ for External Inz~estntents Pools, investnents should be stated at fair value. The City reported its investments at fair value. For the year ended Jtme 30, 2011, tlne unrealized gain (or mark-to-market value at 6/ 30/ 11) on investnents amoLmted to $1,053,448. Interest and investrnent earnings before recognition of Lmrealized gain were $1,591,172 as of Jwne 30, 2011. The following is a summary of pooled cash and investments, including restricted cash and investments ar June 30, 2011: Government-Wide Fiduciary Funds Statement of Statement of Net Assets Net Assets Governmental Trust/ Activities Agency Total Cash and investments $ 103,259,462 $ 1,427,634 $ 104,687,096 Restricted cash and investments - 164,500 164,500 Total $ 103,259,462 $ 1,592,134 $ 104,851,596 C. Risks Disclosures Interest Rate Risk. Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. As a means of linniting its exposure to fair value losses arising from rising interest rates, the City's investment policy provides that final maturities of securities cannot exceed five years. Specific maturities of investments depend on liquidity needs. At June 30, 2011, the City's pooled cash and investments had the following maturities: 54 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued C. Risks Disclosures, coyrti~rued Maturity Less than one year One to three years Three to five years Percentage of Investment 36% 19% 46% The average maturity of the total portfolio was 1.78 years and the average life of the federal security portfolio was 2.76 years. Deposits and iizveshnents held by the City at Jtuze 30, 2011 are summarized below: Investment Maturities (in years) Investment Type City Treasury Deposits: Cash on hand Deposits with banks Total deposits hlvestments: California Asset Management Program Fund Local Agency Investment Fund Federal Home Loan Bank Federal Home Loan Mortgage Corpar~ation Federal National Mortgage Association Money Market~Mutual Funds Total hlvestments Total Citv Treasury Cash with fiscal agents Total City and fiscal agents cash and investments Fair Market Value 1 year or less 1-5 years $ x,816 $ 2,816 $ - 1,974,721 1,974,721 - 1,977,537 1,977,537 - 63,449 63,449 - 36,142,628 36,142,628 - 48,335,575 3,066,150 45,269,425 7,187,840 - 7,187,840 10,973,230 - 10,973,230 6,837 6,837 - 102,709,559 3,072,987 99,636,572 104,687,096 5,050,524 99,E~36,572 164, 500 - 164, 500 $ 104,851,596 $ 5,050,524 $ 99,801,072 Credit Risk. Credit risk is the risk that an issuer of an >IZVestment will not fulfill its obligation to the holder of the >1lvestment. The City's policy requires an appropriate risk level be ma>1ltained by primarily purchasing securities that are of high quality, liquid, and marketable. The City's investment policy relating to credit risk of investments is as follows: 55 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued C. Risks Disclosures, Corrtimred - United States Treasury Issues. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of prncipal and interest. There is no lintation as to the percentage of the portfolio that may be invested in this category. - Federal Agenc~gations. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There is no limitation as to t11e percentage of the portfolio that may be invested in this category. However, the Treasurer should strive to limit the portfolio's exposure to any one federal agency issuer to 40 percent of the overall portfolio and limit the portfolio's exposure to callable federal agency securities to 25 percent of the overall portfolio. - Bankers Acceptances. Bankers' acceptances, otherwise known as bills of exchange or time drafts that are drawn on and accepted by a conmlercial bank. Bankers' acceptances must be secured by the irrevocable primary obligation of the accepting domestic bank. Purchasers are limited to issuers whose short-term debt is rated "A-1" or higher, or the equivalent, by a Nationally Recognized Statistical-Rating Organization (NRSPO). Bankers' acceptances cannot exceed a maturity of 180 days. A maximum of 40 percent of the portfolio may be invested in this category. The amount invested in bankers' acceptances with any one financial institution in combination with any other debt from that financial ilstitution shall not exceed 20 percent of the portfolio. - Commercial Paper. Commercial paper of "prime" quality of the 11igl1est rankilg or of the highest letter and number rating as provided for by a NPSPO. The entity that issues the commercial paper shall meet all of the following conditions iz either paragraph (A) or paragraph (B): (A) The entity meets the following criteria: (i) Is organized and operating in the United States as a general corporation. (ii) Has total assets i1 excess of five hundred million dollars ($500,000,000). (iii) Has debt other than commercial paper, if any, that is rated "A" or higher by a nationally recognized statistical-rating organization. (B) The entity meets the following criteria: (i) Is organized within the United States as a special purpose corporation, trust, or linuted liability company. (ii) Has program wide credit enhancements including, but not linuted to, over collateralization, letters of credit, or surety bond. (iii) Has conunercial paper that is rated "A-1" or higher, or the equivalent, by a nationally recognized statistical-rating organization. 5c, City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued C: Risks Disclosu~•es, Continued Eligible conmlercial paper shall have a maximum maturity of 270 days or less and not represent more than 10 percent of the outstanding paper of an issuing corporation. A maximum of 25 percent of the portfolio may be invested iz this category. The amount invested in commercial paper of any one issuer in combination with any other debt from that issuer shall not exceed 20 percent of the portfolio. - Negotiable Certificates of Deposit. Negotiable certificates of deposit (NCDs) issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by astate-licensed branch of a foreign bank. Purchases are linuted to ilstitutions whic1111ave long-term debt rated "AA" or better and/ or Have short-term debt rated at least "A-1" or 1ligher, or the equivalent by a NRSRO. A maximum of 30 percent of the portfolio may be invested in this category. The amount invested in NCDs with any one financial institution in combnation wit11 any other debt from that filancial institution shall not exceed 20 percent of the portfolio. - Time Certificates of Deposit. Time Certificates of Deposit (TCDs) placed with conunercial banks and savings and loans. The purchase of TCDs from out-of-state banks or savings and loans is prohibited. The amount on deposit caiulot exceed the shareholder's equity i1 the financial ilstitution. To be eligible for purchase, the filancial ilstitution must have received a nunimum overall satisfactory rating for meeting the credit needs of California Communities in its most recent evaluation, as provided by Government Code Section 53635.2. TCDs are required to be collateralized as specified under Government Code Section 53630 et. seq. The Treasurer, at his discretion, may waive the collateralization requirements for any portion that is covered by federal insurance. The City must have a signed agreement with the depository per Government Code Section 53649. TCDs may not exceed one (1) year in maturity. A maximum of 10 percent of the portfolio may be invested in this category. - Money Market Funds. Shares of beneficial interest issued by diversified management companies t11at are money market funds registered with the Securities and Exchange Comnssion under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 and following). The company must have met either of the following criteria: (A) Attained the highest rankilg or the highest letter and numerical rating provided by not less than two NRSROs. (B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management i1 excess of five htuzdred nullion dollars ($500,000,000). A maximum of 20 percent of the portfolio may be invested iz this category. For due diligence, the Treasurer maintains on file a copy of the current Prospectus for any mutual fund i1 which the City has fLmds invested. 5~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued C. Risks Disclosr-Tres, Corrtirn-red - State of California Local Agency Investment Fund (LAIF~ A maximum of 75 percent of the portfolio may be invested in this category. For due diligence, tlne Treasurer nnaintains on file a copy of LAIF's current Answer Book. - California Asset Management Program (CAMPS Shares of beneficial interest issued by a joint powers authority organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (n), inclusive of to Government Code Section 53601. For due diligence, the Treasurer maintains on file a copy of CAMP's current hnformation Statement. At June 30, 2011, the City had the following investrinents credit risk ratings: The Credit Risk Ratings listed below meet or exceed the acceptable credit risk ratings established in tlne City's investment policy and required, where applicable, by the California Government Code. Credit duality Ratings Moody's S&P Investments: Federal Home Loan Banl: AAA AAA Federal Home Loan Mortgage Corporation AAA AAA Federal National Mortgage Association AAA AAA Mutual Funds AAA AAA California Asset Management Program Fund Not Rated AAA Local Agency Investment Fund Not Rated Not Rated Cash wiHl fiscal Agents Not Rated Not Rated Concentr«tiori of Credit Pisk. Within the investments pernnitted by the Government Code, the City's investment policy seeks to further restrict elib ble innvestments to the ilnveshnents listed below. 111 the event a1n apparent discrepalncy is fouled between the City's policy and the Government Code, the more restrictive parameters will take precedence. Tlne portfolio is diversified by security type and institution to avoid incurring wnreasonable and avoidable risks regarding specific security types or individual financial institutions. The primary objectives, in order of priority, of the City's investment activities is based on: 1) Safety; 2) Liquidity; 3) Yield; 4) Diversification. The table below identifies the investment types that are authorized by the City's investment policy or stipulated by the California Government Code. 58 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued C. Risks Disclosures, Cofiti~iued Maximum Authorized Investment Type Maturity United States Treasury None Federal Agency Obligations None Bankers Acceptances 180 days Commercial Paper 270 days Negotiable Certificates of Deposit None Time Certificates of Deposit 365 days Money Market Mutual Funds None State of CA Local Agency Investment Fund (LAIF) None California Asset Management Program (CAMP) None Maximum Maximum Percentage of Investment in Portfolio One Issuer None None None 40%* 40 % 20 25% 10%** 30% 20% 10% CA only 20% None 75% None None None *There is no limitation as to the percentage of the portfolio that may be invested in this category. However, the Treasurer strives to linut the portfolio's exposure to any one federal agency issuer to 40% of the total portfolio and limit the portfolio's exposure to callable securities to 25% of the overall portfolio.**The amount invested in commercial paper of any one issuer in combination with any other debt from that issuer will not exceed 20 percent of the portfolio. Citstoc~ial Credit Risk. For an investment, custodial credit risk is the risk that, >11 the event of the failure of the counterparty, t11e City will not be able to recover the value of its >IZVestinents or collateral securities that are in the possession of an outside party. Of the City's uzvestments, $310,700 of securities is held by the fiscal agents not in the name of the City. As of June, 2011, there were $164,500 on deposit at US Bank for the Dublin Boulevard Extension Special Assessment District and $146,200 on deposit with State Condenulation Fund. D. Investnaerrts irr Locnl Agenci~ Invest~a~ent Fund The Local Agency Investment Fund (LAIF) is a voluntary investment program created by statute. It began >11 1977 as an investment alternative for California's local governments and special districts and continues today under the State Treasurer administration. The LAIF is part of the Pooled Money Investrilent Account (PMIA). The PMIA began in 1955 and oversight is provided by the Pooled Investment Board (PMIB) and an in-house Investment Conlnuttee. The PMIB members are the State Treasurer, Director of F>lzance, and State Controller. The Local Investment Advisory Board (LIAB) provides oversight for LAIF. The Board consists of five members as designated by statute. The Chairman is the State Treasurer or his designated representative. Two of the members are appointed based on their train>TZg and experience i11 the field of investment of finance, and t11e State Treasurer appoints two members who are treasurers, f>1lance or fiscal officers or business managers employed by any cotmty, city or local district, or municipal corporation of the State of California. The term of each appointment is two years or at the pleasure of the appointing authority. 5y City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued D. Iuvestnierrts iri Local Ageric~ Investft~ent Fufid, coritifiued The City valued its investments in LAIF as of Jtune 30, 2011, at amortized cost which approximates the fair value. If the fair value was to be calculated it would be calculated by multiplying the accownt balance with LAIF times a fair value factor of 100.0015%, which is determined by LAIF. This fair value factor was deternined by dividing all LAIF participants' total aggregate amortized cost by total aggregate fair value. The City's investments with Local Agency Investment Funds (LAIF) at June 30, 2011, included a portion of the pooled fwnds invested in Strucfiired Notes and Asset-Backed Securities. These investments included the following: • Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have enbedded forwards or options. Typical Structured Notes are issued by most corporations and government sponsored, for example, the Federal National Mortgage Association and the Federal Home Loan Bank. • Asset-Backed Securities, the bulls of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages, small business loans, or credit card receivables. As of June 30, 2011, the City had a balance of $36,142,628 of market vahie invested in LAIF, which had invested 5.01% of flee total pooled investments funds of $66,352,783,816 in Structured Notes ($1,100.000 nnillion) and in Asset-Backed Securities ($2,221.706 nnillion). The fair value of the City's position in the pool is materially equivalent to the value of flee pool share. Structured notes are debt securities (other than asset-backed securities) whose cash flow characteristics depend upon one or more indices and/or that leave embedded forwards or options. These securities are issued by corporations and by government-sponsored enterprises such as the Federal National Mortgage Association and the Federal Home Loan Bank System or an international agency such as the World Bank. Asset-Backed Securities entitle the purchaser to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages, small business loans, or credit card receivables. Ho City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 3. NOTES RECEIVABLE T11e following table sununarizes the notes receivable outstanding as of June 30, 2011: First Time Homebuver Loan Program Eden Senior Affordable Housing Loan West Dublin Bart Station Loan Arroyo Vista Predevelopment/Construction Loan -Family Housing Arroyo Vista Predevelopment/Consh~uction Lo~u1- Senor Housing Total 935, 399 ~,606,~30 7, 583 ~, 098, 402 537,1?? 6,18,936 Pez~olz~ing Home Lonns - As part of the City of Dublin First Time Homebuyer Loan Program (FTHLP), the City provides financial assistance, in the form of a deferred loan, for first time homebuyers within a certain income range to buy their first home >IZ Dublin. Monthly payments of principal and interest are generally deferred until the homes are sold, >IZ default, and in Market Rate homes, when the home owners ref>1lance their primary mortgage. The total outstanding amowzt due including accrued simple iizterest at 3.5% per annum due to the City as of June 30, 2011 was $935,399. During Fiscal Year 2010-2011 loan #07-02 dated April 3, 2007 was written-off u1 the amowlt of $36,500 pruzcipal plus $4,144 of interest accrued as uncollectable. 61 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 3. NOTES RECEIVABLE, Continued OAN # OAN DATE ORIGINAL LOAN AMOUNT CCRUED INTEREST REPAYMENT OF PRINCIPAL AND INTEREST OAN BALANCE #07-01 02/16/07 39,915 6,105 - 46,020 #07-02 04/03/07 36,500 4,144 (40,644) - #07-03 03/30/07 60,039 8,941 - 68,980 #07-04 10/30/07 50,000 6,420 - 56,420 #07-06 09/28/07 35,640 2,522 (38,162) - #07-07 09/28/07 42,886 5,638 - 48,524 #07-08 07/24/07 35,596 4,905 - 40,501 #07-09 08/28/07 26,036 3,500 - 29,536 #07-10 08/28/07 49,536 6,660 - 56,196 #07-11 10/10/07 38,141 4,970 - 43,111 #07-12 02/16/07 33,051 5,055 - 38,106 #07-13 10/11/07 40,253 4,806 (45,059) - #07-14 10/01/07 19,610 2,572 - 22,182 #07-15 12/03/07 24,536 3,070 - 27,606 #07-16 12/28/07 8,000 982 - 8,982 #07-17 02/04/08 22,826 1,534 (24,360) - #07-18 02/29/08 24,170 2,821 - 26,991 #07-20 05/30/08 19,175 2,070 - 21,245 #08-01 08/15/08 25,377 2,553 - 27,930 #08-02 10/20/08 47,200 3,277 (50,477) - #08-03 10/17/08 33,750 3,191 - 36,941 #08-04 11/14/08 41,500 3,390 (44,890) - #08-05 01/29/09 22,619 1,913 - 24,532 #08-06 02/11/09 55,404 4,617 - 60,021 #08-07 04/09/09 27,425 2,135 - 29,560 #08-08 06/30/09 39,576 2,774 - 42,350 #09-01 08/03/09 33,000 2,202 - 35,202 #09-02 09/28/09 36,595 2,246 - 38,841 #10-01 12/24/10 37,500 676 - 38,176 #10-02 01 / 24/ 11 40,000 602 - 40,602 #10-03 05/05/11 26,700 143 - 26,843 TOTAL 1,072,556 106,435 (243,592) 935,399 H2 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 3. NOTES RECEIVABLE, Continued Eden Senio~~ A{{o~~d~zble Housing Loan - On September 23, 2002 the City selected Eden Housing, h1c. as the developer for the affordable senior housing at the site of the former library located at 7606 Amador Valley Blvd. This site also houses a senior center that flee 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 Linnited Partnership to support the senior lnous>ing project. The interest on the outstanding pr>nncipal 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, is payable iln full on February 8, 2059, the 55ti~ anniversary of the hnitial Disbursement Date of February, l8 2004. Repayments commenced on Jtune 1, 2006, and on the first day of each Jwne, 60% of the Surplus Casln generated by the project dur>ing the previous calendar year are remitted to reduce the outstanding indebtedness. Any payment not paid when due bears interest at a rate equal to 10% annum from the due date until it is paid in full. Tlne outstanding amount as of June 30, 2011 was $2,606,430. West Dl~blin/Plec~snnton BART Lonn - On December 20, 2005, the City approved a funding agreement between the City of Dublin, the City of Pleasanton, and the San Francisco Bay Area Rapid Transit District (BART) established pursuant to Public Utilities Code Section 28500 for the construction of the West Dubl>ln/Pleasanton BART Station with park>ing and other facilities. BART issued bonds to f>lnance all or a portion of the construction of flee West Station. hn order to issue and sell tlne bonds, BART established certain debt service reserve. The agreement required the City of Dublin to contribute $2.5 million to a Reserve Fund which could be utilized by BART in the event that Operating Revenues were insufficient to cover Debt Service and Operating Expenses for the West Dublin/Pleasanton BART Station. The City comnnitted 50% of the obligations at the time that BART issued bonds for tlne construction. Tlne second itnstallment was contributed iln February 2011 when BART passenger service began. The fwnd>ing agreement also calls for flee return of any unused portion of cash contribution at the end of the fifth year of Revenue Operations. An accounting of the funding used by BART, at June 30, 2011, reflected the majority of the funds contributed leave been expended on debt service and will not be repaid. The outstanding amount as of June 30, 2011, was determined to be $7,583 unspent and may be used to cover future operating shortfalls. h,~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 3. NOTES RECEIVABLE, Continued Arrolio Vista P~~ec~ez~elopment/Const~~uction Loan - Famihi and Senior P~~ojects On June 1, 2011, the City entered >TZto agreement to provide a loan to Eden Dougherty, L.P., a California nonprofit public benefit corporation, with anot-to-exceed $7,600,000 principal amount i11 accordance with the Arroyo Vista Disposition and Development Agreement dated July 25, 2007 concerning the redevelopment of the real property located at 6700 Dougherty Road iiz the City of Dublin. The City agreed to provide a loan to Eden to assist i11 fiizancillg the development of the Fanuly Project and Senior Project. The City determined that the development of the project is in t11e interest of health, safety and welfare of the residents of t11e City, and t11at t11e 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 iiz full, or (ii) twelve months follow>11g the date of issuance of the final certificate of occupancy or equivalent for the project; thereafter, the outstanding principal balance of the loan will bear interest at a rate equal to three percent simple aiulual interest. Aiulual payments will 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 will 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) fl1e fifty seventh anniversary of t11e loan origination date. The City 11as t11e 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, 2011, the outstanding amounts are $2,098,402 for the Family Project and $537,122 for the Senior Project. 4. INTERFUND TRANSACTIONS Dire To/Front During the normal course of business the General Fund may advance to other ftulds to cover deficit cash balances caused by expenditures for reimbursement type grants and other reimbursements. During the fiscal year advances were made to t11e SAFETEA-LU (Safe, Accowltable, Flexible, Efficient Transportation Equity Act: A Legacy for Users) Special Revenue Fund ($423,362) the Congestion Management Agency Special Revenue Fund ($261,095), the Highway Safety Traffic Reduction Bond Special Revenue Fw1d ($7,831), the America Recovery and Reinvestment Act Special Revenue Fund ($13,506), the Storm Water Management Special Revenue Ftu1d ($212,211), the East bay Regional Park District Special Revenue Ftmd ($1,089,491) and the Conmlunity Development Block Grant Special Revenue Fund ($14,608). When the reimbursement is received, normally shortly after year-end, the interfund liability is liquidated. The following interfund balances existed at June 30, 2011: Due from other funds IVFljor Ftn1d Due to other fiords C,ener<~l Fund Non IVFijor Funds $ 2,022,107 6~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 4. INTERFUND TRANSACTIONS Adz~nnces To/From During the 2004-2005 and 2005-2006 Fiscal Years, the General Fund advanced funds to the Fire Impact Fees Capital Projects Fund to aid in the financing of fire station construction projects. The advance will be repaid through future revenues to the Fire Impact Fees Ftu1d. 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 - CALPEPS Side Fund to prepay CALPEPS for the City's Side Fund Obligation. The Side Fwzd was created i11 2005 when CALPERS assigned agencies with less t11an 100 participants to a risk sharing pool. The Side Fund was the City's negative Lulfunded liability at the time the City was assigned to the pool. As part of CALPERS Employer Contribution Pate, the City was scheduled to pay 4.319% of payroll for the next 17 years to eliminate the current side fund obligation. The benefit of prepayment resulted in reduction of the Employer Contribution rate in FY2007/2008 from 15.894% to 11.575%. The advance from General Fund will be repaid annually, calculated at the rate of 4.319% of the total salary and be recorded as an Internal Service Fwzd retirement benefit expenditure with an offset to reduce the General Fwzd long term advance. The folio«-ing intelfund balances eiisted at June 30, 2011: Advances from other funds General Fund Fire Impact Fees Capital Project Fund $ 1,735,988 Internal Service Fund 2,340,955 Total $ 4,076,943 Trnnsfe~~s In/Oi~t hlterfund transfers for the year ended June 30, 2011 were as follows: T x a n s f e x s- I n T a Major Funds n f General Community e Affordable Improvements Improvements s Housing Capital Project Capital Project Parks Capital Streets Capital - Fund Descriptions: General Fund Fund Fund Fund Project Fund Project Funds Total 0 u I General Fund - - 485,133 138,964 2,685,210 38,640 3,347,947 Public Facility Capital Project Fund - - - - 328,053 - 328,053 Traffic Impact Fee Capital Project Fund - - - - - 1,969,161 1,969,161 Non Major Funds 29,726 6,600 - 189,357 796,461 2,496,055 3,518,199 Total $ 29,726 $ 6,600 $ 485,133 $ 328,321 $ 3,809,724 $ 4,503,856 $ 9,163,360 H5 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 4. INTERFUND TRANSACTIONS, Continued Transfer-In to the General Fund consists of reimbursement of staff adnnunistration costs - $18,953 from the Vehicle Abatement Special Revenue Fund and $10,773 from the Lighting and Landscaping Maintenance Assessment District Special Revenue Funds. Transfer-hn to the Affordable Housing Fund in the amount of $6,600 was a reimbursement from the CDBG Special Revenue Fund for staff adnninistrative costs. Transfer-In to the General Improvements Capital Project Fund to fund capital project expenditures - $485,133 from the General Fund. Transfer-In to the Conununity Improvements Capital Project Fund to ftmd capital project expenditures - $138,964 from the General fund, $72,884 from flue Measure B Sales Tax Bike/Pedestrian Special Revenue Fund, and $116,473 from the Public Art Special Revenue Fund. Transfer-In to the Parks Capital Project Fund to fund capital project expenditures - $2,685,210 from the General Fwnd, $13,506 from the America Recovery and Reinvestment Act Special Pevenue Fund, $782,955 from the East Bay Regional Park District Special Revenue Fund, and $328,053 from the Public Facility Fees Capital Project Fwnd. Transfer-In to the Streets Capital Project Fwnd to fund capital project expenditures - $38,639 from the General Fund, $584,538 from the Gas Tax Special Revenue Fund, $347,824 from SAFETE-LU (Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users) Special Revenue Fund, $340,565 from the Measure B Sales Tax Local Streets and Roads Special Revenue Fimd, $72,876 from the Measure B Sales Tax Bike and Pedestrian Special Revenue Fwnd, $261,098 from the Congestion Management Special Revenue Fund, $451,800 from the Traffic Congestion Relief Special Revenue Fund, $7,831 from the Highway Traffic Deduction Bond Special Pevenue Fwnd, $396,058 from the Storm Water Management Special Revenue Fund, and $1,969,161 from the Traffic Impact Fees Capital Project Fwnd. 5. CAPITAL ASSETS A. Goverri~riefrt-Wide Fifinxcial Stc~teriierrts Capital assets unclude land, buildungs, and equipment used un City operations. hnfrastructure includes roads, bridges, curbs, sidewalks, drainage systems, street and traffic lights, park improvements and other improvements used by all citizens. Tlne following is a sunnnnary of capital assets for governmental activities: H6 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 5. CAPITAL ASSETS, Continued Balance July 1, 2010 Additions Deletions Balance June 30, 2011 Capital assets, not being depreciated: Land $ 162,556,225 $ - $ - $ 162,556,225 Streets rigth of way 35,425,288 - - 35,425,288 Construction in progress 22,234,992 6,041,127 (1,061,578) 27,214,541 Total capital assets, not being depreciated 220,216,505 6,041,127 (1,061,578) 225,196,055 Capital assets, being depreciated: Infrastructure 352,902,022 988,772 - 353,890,794 Buildings and improvements 68,612,214 72,805 - 68,685,019 Vehicles and equipment 6,890,941 346,449 - 7,237,390 Total capital assets, being depreciated 428,405,177 1,408,026 - 429,813,203 Less Accumulated depcreciation for Infrastructure (185,524,308) (6,157,637) - (191,681,945) Buildings and improvemetns (20,780,943) (2,909,456) - (23,690,399) Vehicles and equipment (5,459,325) (397,886) - (5,857,211) Total accumulated depreciation (211,764,576) (9,464,979) - (221,229,555) Total capital assets being depreciated, net 216,640,601 (8,056,953) - 208,583,648 Governmental activities capital assets, net $ 436,857,106 $ (2,015,826) $ (1,061,578) $ 433,779,703 Depreciation expense was charged to functions/programs of the primary government as follows: General government $ 2,678,179 Public Safety 507,369 Highways and streets 5,269,682 Health and welfare 3,812 Culture and leisure 958,324 Community development 47,613 Total depreciation expense -governmental activities $ 9,464,979 B. Fund Fiuayicial State~uerrts The fund governmental financial statements do not present general government capital assets but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets. h7 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 6. SPECIAL ASSESSMENT CITY DEBT (NON-OBLIGATORY) Tlne Dubliln Boulevard Extension Special Assessment District, formed within City linnits, had outstanding debt with a balance of $385,000 at June 30, 2011. Proceeds of the debt, which was issued in 1991, were used to filnance improvements within City boundaries. The City has no legal, contingent or moral obligation for the repayment of this debt and acts solely as the collecting and paying agent for the District. Activities of the District are reported in the Dubliin Boulevard Extension Assessment District Agency Fund. 7. JOINT POWERS AGREEMENTS Tlne City participates in joint ventures with other municipal entities through Joint Powers Agreements (JPAs) established trader the Joinnt Exercise of Powers Act of the State of California. 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 Cownty's property. The agreement provided that the County would retain ownership of the land and that each participating agencies would receive aln equity innterest lIn the facility. Certificates of Participation were issued to construct the facility. Under tlne agreement tlne entities share iIn the debt service costs of the project based upon their use of tlne animal shelter. The origunal total pruncipal 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 iln tlne shelter. In Fiscal Year 2010/2011 the City contributed $63,570 representing 20.05%of the total annual debt service payment. In addition, the City contributed $167,549 or 12.53% toward the annual operating shelter services and $70,353 of the animal field service expenditures. Tlne City has not recorded an equity interest for the animal shelter agreement. As noted above the ongoing financial interest is linnited 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. Associated Community Action Program (ACAP) Tlne City is a member of ACAP, a Joint Powers Authority established in July 12, 1994, with a governing board comprised of elected officials fronn its 13 mennber agencies. The nnembers include Alanneda 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 ConnmLmity Services Block Grant Program. These programs inchided 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 prob am and to effectively cease its operations. Management Partiners, Inc. was engaged to manage and implement a close of ACAP. hH City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 7. JOINT POWERS AGREEMENTS, Continued Tlne representatives of the nnembers and the ACAP Board of Directors have deternnined that the orig>lnal JPA that created ACAP should be amended to reflect the current statistics 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 contiinue its obligations such as records retention, legal and claims, and audit compliance and to linnit future exposure for member agencies. During Fiscal Year 2010-2011 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 2010/2011 the City Council authorized a contribution up to $146,539 of which the City has contributed $100,385. The remaining $46,154 is available for appropriation lIn Fiscal Year 2011/2012 if required as part of the close-out activities. The City will incur apro-rata share of the on-go>Ing costs. Condensed f>nnancial >lnformation as of June 30, 2011 for ACAP is presented below: Total assets $ 833,615 Total liabilities 40,354 Total equity/net assets 793,261 Total revenues 1,280,808 Total expenses/expenditures 487,547 Increase (decrease) inequity/net assets 793,261 8. FUND EQUITY There are five classifications which detail the components of the fwnd balances in the Fund Financial Statements as required by the Governmental Accounting Standard Board (GASB) Statement No. 54 Fwnd Balance Reporting and Governmental Fund Type Def>lnitions. The various desib nations are established by either actions of the City Council and Management and can be )Increased, reduced or elinninated by similar actions. • Non-Spendable fund balances are resources >lnherentlyvon-spendable on the form of the asset, not yet available for spendiing, or externally restricted to a purpose narrower than the fwnd and required to renla>ln intact. • Restricted fund balances are resources subject to externally enforceable legal restrictions through constitutional provisions or enabl>ing legislation or resources imposed by creditors. • Connnnitted fund balances are resources that were self-imposed based on a formal action of the highest level of the Govern>nng Body. The action to coconut Rinds must occur before the end of the fiscal year end and can only be changed by action of the Governing Body. • Assigned fwnd balances are resources that were established based on an intended use. The authorization to assib would be either at the highest level of decision making, or by a body such as a fitnance conunittee, or an official such as tlne City Manager. • Unassigned fund balances are resources available for any purpose and have not been restricted, committed, or assigned to specific purposes. h9 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 8. FUND EQUITY, Continued Major Funds Affordable Public Facilities Fire Impact Traffic Impact General Housing Capital Capital Capital Non-Major Fund Fund Project Fund Project Fund Project Fund Funds Total Non-Spendable: Prepaid Expenses $ 19,825 $ - $ - $ - $ - $ - $ 19,825 Cemetery Endowment 60,000 - - - - - 60,000 Long Term Advance to Fire Impact Fee Fund 1,735,988 - - - - - 1,735,988 Long Term Advances to PERS Side Fund 2,340,955 - - - - - 2,340,955 SubTotal Non-Spendable Fund Balance 4,156,768 - - - - - 4,156,768 Restricted for: Public Safety - - - - - 1,114,188 1,114,188 Highways and Streets - - - - - 3,425,813 3,425,813 Health and Welfare - - - - - 66,789 66,789 Recycling Programs - - - - - 579,932 579,932 Impact Fee Capital Projects - - 3,586,077 - 7,063,185 364,638 11,013,900 Housing - 5,253,245 - - - - 5,253,245 Sub Total Committed Fund Balance - 5,253,245 3,586,077 - 7,063,185 5,551,360 21,453,867 Committed to: Economic Stability 5,868,847 - - - - - 5,868,847 Downtown Public Improvements 1,000,000 - - - - - 1,000,000 Open Space Funding 1,000,000 - - - - - 1,000,000 Affordable Housing 1,000,000 - - - - - 1,000,000 Emerald Glen Aquatic Center Additional Scope 1,500,000 - - - - - 1,500,000 Emergency Communications 741,000 - - - - - 741,000 Fire Services OPEB 4,801,891 - - - - - 4,801,891 Innovations and New Opportunities 10,070,000 - - - - - 10,070,000 Maintenance Facility 660,603 - - - - - 660,603 Civic Center Expansion 851,414 - - - - - 851,414 Emergency Generator 400,000 - - - - - 400,000 Sub Total Committed Fund Balance 27,893,755 - - - - - 27,893,755 Assigned to: Employees Accrued Leave 779,806 - - - - - 779,806 Operating Carryovers 275,955 - - - - - 275,955 CIP Carryovers 470,146 - - - - - 470,146 Catastrophic Loss and Recovery 10,302,753 - - - - - 10,302,753 Service Continuity Obligations 1,800,000 - - - - - 1,800,000 Pension and Post Employment Benefits 5,212,815 - - - - - 5,212,815 Sub Total Assigned Fund Balance 18,841,475 - - - - - 18,841,475 Unassigned Fund Balance 13,251,263 - - (1,735,988) - - 11,515,275 Total Fund Balance $ 64,143,261 $ 5,253,245 $ 3,586,077 $ (1,735,988) $ 7,063,185 $ 5,551,360 $ 83,861,140 70 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 9. RISK MANAGEMENT A. Risk Pool The City participates >ln the ABAG PLAN Corporation, which covers general liability claims >ln an amount up to $10,000,000 and property insurance coverage for members up to $500,000,000. The City has a deductible or uninsured liability for general liability of up to $50,000 per claim. The deductible for property claims is $5,000 per occurrence. The deductible for property claims for automobiles is $5,000 for claims under $25,000 and no deductible for claims over $25,000. Once the City's deductible is met ABAG PLAN becomes responsible for payment of all claims up to tlne linnit. Dur>Ing tlne fiscal year ended June 30, 2011, the City contributed $200,500 toward current year General Liability Coverage, Excess Liability Coverage, Public Official Bond, Administrative PrenniLUn, and Property Prenuum. The ABAG PLAN is governed by a board consisting of representatives from member municipalities. Tlne board controls the operations of the ABAG PLAN >lnclud>ing selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board. The City's contributions to the ABAG PLAN for liability coverage are based on a formula which considers the ratio of the City's payroll to the total payrolls of all entities participating u1 the same layer of each program, iIn 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 iln any of tlne City's areas of insurance coverage and no settlennent amounts have exceeded coverage in the past three years. Audited f>lnancial iinformation for the ABAG PLAN can be obtained from ABAG PLAN, P.O. Box 2050, Oakland, California 94604-2050. B. Workers Conipensatioyi 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 >ln excess of $1 million is covered up to $10 nnillion 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 lln the Cities Group. During the year ended Jwne 30, 2011, the City paid Cities Group $15,017 in premiums. At Jwne 30, 2011, the City of Dublun's share of equity lIn the Cities group amounted to $190,974. 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, Continued For the year ended June 30, 2011 9. RISK MANAGEMENT, Continued C. Linbilit~ for Llni~isured Clairris The GASB requires municipalities to record their liability for tminsured claims and reflect the current portion of this liability as expenditures uz their fuzaiuial statements. As discussed above, the City has coverage for suc11 claims, but it 11as retained the risk for the deductible or the unilzsured 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, linuted to general liability and workers compensation claims as discussed above, includes a provision for incurred but not reported (IBNR) losses. This amount was estimated based on claims experience. The reserve recorded is adequate to cover 5.43 IBNR claims or $271,916. Therefore no adjustment was made i11 fiscal year 2010-2011 as t11e 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, 2011. 10. COMPENSATED ABSENCES The City records a long term compensated absences liability to recognize the financial effect of unused general leave and other accrued compensated leave. The total of vacation and other compensated leave is $779,806. The liability will be paid from future resources primarily from t11e general ftuld. Accrued General Leave Accrued Compensated Leave 11. PENSION PLAN A. PERS July 1, 2010 Additions Deletions $ 771,604 $ 594,609 $ (602,007) 30,708 28,575 (43,683) $ 802,312 $ 623,184 $ (645,690) June 30, 2011 $ 764,206 15,600 Due within one year $ 229,262 4,680 ~i 779.8()h ~i 2~~.942 Plan Desc~~iption -The City's defined benefit pension plan, (Miscellaneous Plan), provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The Miscellaneous Plan is part of the Public Agency portion of the California Public Employees Retirement System (CaIPERS), 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 wit11 Ca1PERS and adopts those benefits through local ordinance or resolution. CaIPERS issues a separate comprehensive annual financial report. Copies of the Ca1PERS's annual financial report may be obtained from the Ca1PER5 Executive Office, 400 P Street Sacramento, California 95814. 72 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 11. PENSION PLAN, Continued A. PERS, Cofrtirztsed Funding Policli -Active plan members >IZ the Miscellaneous Plan are required to contribute 8 percent of their annual covered salary, 7 percent of which the City pays on behalf of the employees in the amount of $489,284. T11e City is required to contribute the actuarially deternuned remaining amowlts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the Cal PERS Board of Adnunistration. The required employer contribution rate for fiscal year 2010- 2011 was 11.83% for miscellaneous employees. (The City has only miscellaneous employees.) The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by Ca1PERS. Annual Pension Cost -For fiscal year 2010-2011, the City's annual pension cost was $1,715,082 and was equal to the City's required and actual contributions. The required contribution for fiscal year 2010- 2011 was deternuned in the Jwze 30, 2008, actuarial vahiation using the entry age normal actuarial cost method with the contributions determined as a percent of pay. Tl1e actuarial assumptions included (a) 7.75 percent >1lvestinent rate of return compounded annually net of administrative expenses; (b) projected salary increases that vary by duration of service rang>11g from 3.25 percent to 14.45 percent for nscellaneous members, depending on Age, Service, and type of employment; (c) Inflation component of 3.0 percent; d) Payroll Growth of 3.25 percent; and e) hldividual Salary Growth based on a merit scale varying by duration of employment coupled with an assumed annual >1flation growth of 3 percent and annual production growth of 025 percent. T11e actuarial value of Miscellaneous Plari s assets was deternuned using a technique that smoothes the effect of short-term volatility in the market value of uzvestments over a two to five year period depending on the size of investment gauzs 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 rema>11>11g amortization period at Jtu1e 30, 2008 was 17 years for miscellaneous employees for prior and current service unfunded liabilities. The Asset Valuation Method was 15 Year Smoothed Market. Three Year Trend Information for the Miscellaneous Plan Annual Percentage Pension Cost of APC Fiscal Year (APC) Conrl~ibuted 6/ 30/ 2009 1, 808, 535 100% 6/ 30/ 2010 1, 728,667 100 6/ 30/ 2011 1, 715,082 100 Net Pension Obligation The City adopted GASB Statement No. 50, Pension Disclosure, an amendment of GASB Statement No. 25 and 27. This Statement aligns the financial reporting for pensions with those for other postemployment benefits. It also provides enhancement in the information disclosed in the notes to the financial statements or presented as required supplementary information. 73 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 11. PENSION PLAN, Continued B. Social Security/Public Agency Retirement Systems (PARS) The Omnibus Budget Reconciliation Act of 1990 COBRA) mandates that public sector employees who are not members of their employer's exist>lzg retirement system as of January 1, 1992, be covered by either Social Security or an alternate plan. The City's part-time, seasonal and temporary employees are covered under Social Security, which requires these employees and the City to each contribute 6.2 percent of the employees' pay. The City entered alto an agreement with the PAPS to provide an alternative retirement system for the part-time employees. The PAPS plan was effective December 25, 2005, and replaced Social Security. The employees contributed $42,885 or 6% of salary and the City contributed $10,712 or 1.5% of employee's pay towards PAPS. 12. POSTEMPLOYMENT HEALTHCARE PLAN A. City of Dublin Retiree Healtk Plarr PI«n Description. City of Dublin (City) Retiree Health Plan is asingle-employer def>lzed benefit healthcare plan adm>IUStered by the California Public Employees Retirement System (CaIPERS). The plan provides medical >1lsurance benefits to eligible retirees and their eligible dependents in accordance with Public Employee Rehrement Law (Article 2). The Public Employees Retirement System Board of Administration 11as the responsibility to approve health benefit plans and may contract with carriers offering health benefit plans. The Board of Admuzistration is responsible for adoptuzg all rules and reb lations, including the scope and content of basic health plans. The California Government Code also defines certa>11 rules for contract agencies, such as the City of Dublin, to purchase health >1lsurance benefits. Funding Polio. There is no requirement imposed by CalPERS, to contribute any amowzt beyond the pay-as- you-go contributions. The cost of monthly insurance prenuums may be shared between t11e retiree and the City. The cost sharing varies depending on: date of hire (a vesting schedule is >11 place for employees hired after April 1, 2004); the dependent status; and plan selected. A mulimLUn employer monthly contribution requirement is established and may be amended by the CaIPERS Board of Adn~zistration and applicable laws. Within the parameters of the law, individual contractuzg 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 t11e employer contribution rate towards retiree benefits are recorded >11 a resolution adopted by the City Cotuzcil. 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 tune, with the intent the fimds will be transferred to CALPERS periodically at which tinge the transfers will be recorded as Cash with Fiscal Agent >11 a Tnist Fw1d. The amow~t necessary to ftmd future benefits is based on projections from the Jtme 30 2009 Actuarial Study completed by Bartel and Associates, LLC >11 accordance with GASB Statement 45, Accounting and Firuancial Pepou~ting for Postemploynuent Benefits Other than Pensions. 7~ City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued A. City of Dublin Retiree Henltk Plnn, Coyrtiyiued During Fiscal Year 2006-2007, the City made arrangements with CaIPERS to retain the OPEB assets to finance future Retiree Health Benefits. On June 29, 2007 the City transferred $5,465,611 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 alto the CERBT, as permitted Linder GASB Statement 45, paragraph 13F, amortization periods allow for a maximum of 30 years with no minimum years. For Fiscal Year 2010-2011, the City made a total of $269,259 in contributions to set aside funds for future benefits and $313,234 represented amotults made for current 1lealth insurance premiums. The retirees pay any additional premiums that exceeded the monthly contribution established by the City. As of June 30, 2011, the Internal Service Fund held a remaililg total of $9,944 to be transferred to CaIPEP~,S. Anniual OPEB Cost anc~ Net OPEB Obligation. The City's annual Other Post Employment Benefit (OPEB) cost (expense) is calculated based on t11e Arulual Required Contribution of the employer (ARC), an amount actuarially determiled 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 wlfiulded actuarial liabilities (or fwldizg excess) over a period not to exceed thirty years. Tl1e following table shows the components of the City of Dublin arulual OPEB costs for the year, the amount actually contributed to the plan, and changes i1 t11e City's net OPEB obligation to the City Retiree Health Plan: Annual required contribution $ 610,000 Interest on net OPEB obligation (19,000) Adjustment to annual required contribution 24,000 Annual OPEB expense (income) 615,000 Contributions made (582,493) Increase (decrease) in net OPEB obligation 32,506 Net OPEB obligation (asset)-beginning of year (32,506) Net OPEB obligation (asset)-end of year $ - The City Retiree Health annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2011, and the preceding years were as follows:. Fiscal Year Ended OPEB Cost Cost Contributed 6/30/2009 $ 511,000 107.85% 6/30/2010 $ 615,000 97.84% 6/30/2011 $ 615,000 94.71% Obligation (Asset) (45,788) (32,506) 75 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued A. Citi~ of Dublin Retiree Henltk Plan, Coyrti~rued Funded Status and Funding Progress. As of Jwne 30, 2009, the most recent actuarial valuation date, the plan was 76% ftmded. The Actuarial Accrued Liability (AAL) for benefits was $6,990,000, and the Actuarial value of Plan Asset was $5,326,000, resulting in an Unfunded Actuarial Accrued Liability (UAAL) of $1,664,000. The covered payroll (annual payroll of active employees covered by the plan) was $7,618,000, and the ratio of UAAL to the covered payroll was 21 percent. Actuarial vahiations of an ongoing plan involve estimates of tlne value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and tlne healthcare cost trend. AnnOLmtS deternnitned regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Schedule of Funding Progress, presented as Required Supplementary Information following the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Since this is the first year of including this information in the financial report, the data presented is limited. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. Tlne actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and tlne actuarial value of assets, consistent with the long-term perspective of the calculations. hn the June 30, 2009 actuarial valuation, the actuarial cost method used is Entry Age Normal (EAN) cost method. Under the EAN cost method, the plan's Normal Cost is developed as a level percent of payroll throughout the participants' working lifetime. Entry age is based on current age minus years of service. Actuarial Accrued Liability (AAL) is tlne cumulative value on the valuation date, of prior Normal Cost. For tlne retirees, the AAL is the present value of all projected benefit. The Unfunded AAL is being amortized as a level dollar closed 30 year basis, as a level percent of payroll with a remaining amortization period at Jtme 30, 2009 of 30 years. GASB 45 requires the interest rate to represent the underlying expected return for the source of funds used to pay benefits. The actuarial methods and assumptions included 7.75 percent interest rate, representing the long term expected rate of return on the CaIPERS Trust Fund. Annual inflation assumed to increase at 3 percent per annum and Aggregate Payroll assumed to increase at 3.25 percent per annum. The study also used assumptions for the salary merit and longevity increases, and demographic assumptions such as mortality, withdrawal, and disability based on CaIPERS 1997-2002 Experience Study. Retirement assumption was also based on CaIPERS 1997-2002 Experience Study of tlne Miscellaneous Plan 2.7% at 55 years, with expected retirement age of approximate 59 for females and 60 for males. 7c, City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued A. Citi~ of Dublin Retiree Henltk Plan, Coyrti~rued The following table includes the annual healthcare cost trend rate used in the Actuarial Valuation: Year Non-Medicare Medicare HMO PPO HMO PPO 2009 Actual Premiums Actual Premiums 2010 9.1% 9.b% 9.~% 10.1% 2011 8.~% 9.0% 8.7% 9.3% 2017 + 4.5% ~.5% 4.5% ~.5% B. Dougkert~ Regional Fire Authority Henltk Plarr Doiaghet~t~ Regional Fite Atithorit~ Backgroimc~. In 1988, the cities of Dublin and San Ramon formed Dougherty Pegional Fire Authority (DPFA), a Joint Powers Agency (JPA). The JPA Provided fire services to all of Dublin and the southern Portion of San Ramon. h1 1997, the two cities decided to change how Fire Services would be provided in each City. As a result JPA persownel were absorbed by the two new service Providers pursuant to a mutual agreement. The JPA has rennained 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 Desc~~iption. City of Dublin share of DRFA Retiree Health Plan is asingle-employer defined benefit healthcare plan adnninistered by the California Public Employees Retirement System (CaIPERS). The Plan provides medical insurance benefits to eligible retirees and their eligible dependents. In accordance with Public Employee Retirement Law (Article 2), the Public Employees Retirement System Board of Adninistration has the responsibility to approve health benefit plans and may contract with carriers offering health benefit plans. Tlne Board of Administration is responsible for adopting all rules and regulations, including tlne 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. Fune~ing Policy. There is no requirement imposed by CaIPERS, to contribute any amount beyond the pay-as-you-go contributions. The cost of monthly insurance prenniums may be shared between tine retiree and DRFA. The cost sharing varies depending on: the bargaining wait; dependent status; and plan selected. A nninimum employer monthly contribution requirement is established and may be amended by the CaIPERS Board of Administration and applicable laws. Within the parameters of the law, individual contracting agencies, such as the 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 fine DPFA Management Connnnittee. For fiscal year 2010-2011, the City contributed $51,223 to the plan, all of which was for current prenniums. No other contributions were made. 77 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued B. Dougherty Regional Fire Authority Health Plan, Corrtinued Anneal OPEB Cost and Net OPEB Obligation. T11e City of Dubl>lz's share of t11e 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 amoLmt actuarially deternuned in accordance with the parameters of GASB Statement 45, Accounting anti Financial Reporting for Postemployment Benefits Othe}~ 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 slue there are no active members and no "normal" cost component. Therefore, 100% of the calculated ARC relates to the amortization of tmfunded actuarial liabilities (or funding excess) over a Period not to exceed thirty years. The following table shows the components of the City of Dubl>lz share of DPFA annual OPEB cost for the year, the amowlt actually contributed to the Plan and changes >IZ the Dublin Share of DRFA net OPEB and the City of Dublin share of the obligation to DRFA Retiree Health Plan: Annual required contribution $ 111,000 Interest on net OPEB obligation 2,000 Adjustment to annual required contribution (3,000) Annual OPEB expense (income) 110,000 Contributions made (51,223) Increase (decrease) in net OPEB obligation 58,777 Net OPEB obligation (asset) -beginning of year 211,265 Net OPEB obligation (asset)-end of year $ 270,042 The DRFA Retiree Health (City of Dubliiz Share) annual OPEB cost, the Percentage of annual OPEB cost contributed to the Plan, and the net OPEB obligation for 2011 and the previous years were as follows: Year Annual AnnuaIOPEB Ended OPEB Cost Cost Contributed 6/30/2009 $ 110,000 6/30/2010 110,000 6/30/2011 110,000 OPEB Obligation 42.44% $ 151,065 45.27% 211,265 46.57% 270,042 Funded Status anc~ Firnc~ing Prog~~ess. As of June 30, 2009, the most recent actuarial valuation date, the plan was not funded. Therefore, both t11e actuarial accrued liability for benefits and the wzfunded actuarial accrued liability (UAAL) equaled $867,658. Since there are no active employees, it is not possible to calculate a comparison of t11e liability to the payroll. 7H City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 12. POSTEMPLOYMENT HEALTHCARE PLAN, Continued B. Dougherty Regioxal Fire Ai~tharit~ Healtk Plan, Coxtiriued Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The Schedule of Funding Progress, presented as Required Supplementary Information following tlne notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Silnce this is the first year of >lncluding this information in tlne finnancial report, the data presented is linnited. Actuarial Methods and Assi{mptions. 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 tlne 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 iln paragraph 11 of GASB 45 is pernnitted to apply the alternative measurement method set forth in paragraphs 33 through 35 of GASB45, which allows for certain simplifyung modifications to the selection of assumptions for purposes of nleasur>ing the ARC (Annual Required Contribution) and tlne plan's actuarial accrued liabilities and funded status. In the Jwne 30, 2009 actuarial valuation prepared by Vavinek, Trilne, Day & Co., LLP the actuarial used was Alternative Measurement Method with the Entry Age Normal (EAN) cost method. Under the EAN cost method, the plans Normal Cost is developed as a level percent of payroll throughout tlne participants' working lifetime. The actuarial assumptions included a 4.5% investment rate of return (net of adm>lnistrative expenses), calculated based on tlne funded level of the plan at the valuation date. Tlne expected rate of >lncrease in healthcare >lnsurance prenniums is based on projections of the Office of the Actuary at the Centers for Medicare and Medicaid Services, as published iin National Health Expenditure Projections: 2009-2019, Table 3. Tlne )Increases are as follows: F1'E 6/30 RATE 2011 x.00% 201 3.70% 2013 5.~0% 201 6.70% 2015 7.10% 2016 6.80% 2017 c~ Later 6.20% The Actuarial Accrued Liability (AAL) is the cumulative value, on the valuation date, of prior Normal Costs. For retirees, the AAL is the present value of all projected benefits. Although GASB45 allows an amortization period not to exceed 30 years, due to the closed status of the plan, the unftunded AAL is amortized over 20 years as a level of dollar amount. 7y City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 13. COMMITMENT AND CONTINGENT LIABILITIES A. Grarrt Programs The City participates in several Federal and State grant programs. No cost allowances were proposed as a result of the City's financial audit; however, these programs are still subject to further exannination by the grantors and the amount, if any, of expenditures, which maybe disallowed by the granting agencies cannot be deternnined at this tinge. The City expects such amotunts, if any, to be immaterial. B. Litigation The City is subject to litigation arising in the normal course of business. h1 the opinion of the City Attorney there is no pending litigation, which is likely to have a material adverse effect on the financial position of the City. C. Rei~aburserue~its to tare City of Pleasa~iton Oln 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 amownt of the fee assessed to developers based upon the LAIF interest rate and to repay the City of Pleasanton. The amownt of the contingent liability outstanding at June 30, 2011, was $4,553,064 which is net of the $138,549 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 reinnbursement of these improvements. D. Alameda County Surplus PropertyAutkority The City entered into an agreement with the Alameda County Surplus Property Authority for the repayment of tlne City's Short Term BAPT Advance by the Authority. Under tlne terms of the agreement, interest on the advance shall accrue at a rate based on tlne Alameda County Treasurers return on investrinents. As of June 30, 2011, the balance was $2,250,645, which includes accrued interest of $12,625 at .55% for tlne current year. The advance is to be repaid from developer fees, charges, and other non-tax revenues from the benefiting areas and has no specific due date. The City's General Fund shall not be obligated to repay this obligation. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the fiiture collection of development fees assessed for repayment of the advance. Ho City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 13. COMMITMENT AND CONTINGENT LIABILITIES, Continued E. Otker Developnieytt Agree~yiefrts The City entered into several agreements with various developers and merchant builders who are developilzg 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 with>lz the Traffic Impact Fee area. The value of the credits as of June 30, 2011 was $91,908,201. For the current year, additions to the credits amounted to $334,249 and credits used and transferred amounted to $669,894. The accotulting for the amounts due are not recorded as indebtedness since the payments (the uses of credits) are contingent upon t11e collection of development fees from building growth that has not vet occurred. 14. DEFICIT FUND BALANCE The Fire Impact Fee Capital Project Fund and the PERS Side Fund Payoff hlternal Service ended the fiscal year with deficit fund balances of $1,735,988 and $2,340,955, respectively. The General Fund has advanced money to cover current cash flow needs. Repayment of the advance is expected to come from future revenues to these fw~ds. Duruzg Fiscal Year 2010-2011 the Public Facility Fee Capital Project Fund repaid the General Fund for the advance made >lz t11e amotuzt of $1,376,554. 15. PRIOR PERIOD ADJUSTMENTS Prior period adjushment was recorded in the Government-Wide Financial Statements to properly reflect the Net OPEB obligation (assets) balance in prior year. This adjustment does not alter the beg>1lning fund balances as reported >lz the Fund F>1lancial Statements. Net Assets as Previously Prior Period Net Assets, Reported Adjustments as Restated Government-Wide AcHviHes Net Assets $ 532,064,962 $ (764,343) $ 531,300,619 Fund Balance, as Previously Prior Period Fund Balance, Reported Adjustments as Restated Proprietary Funds Net Assets $ 65,223,577 $ (764,343) $ 64,459,234 81 City of Dublin Notes to Basic Financial Statements, Continued For the year ended June 30, 2011 15. PRIOR PERIOD ADJUSTMENTS, Continued The City uses an Internal Service Fund to facilitate the recording of the bi-weekly contribution from employee payroll to the California Employers' Retiree Benefit (CERBT) Trust to fund Other Post- Employment Benefits (OPEB) as well as the quarterly withdrawals from the CERBT Trust to pay for health prenuums. For GASB 45 reporting purposes an OPEB Net Obligation or Assets is required to be calculated each year and reported on the Government-Wide Financial Statements. During FY2011 an adjustment was made to the beginning ftuzd balance of OPEB Net Assets to include the funds withdrawn uz 2009 and earlier years from CEPBT trust fund thus reflectuzg a corrected value reported as available on the Government-Wide Financial Statements. 16. TERMINATION BENEFITS There were no Tern~zation Benefits to be recorded. H2 REQUIRED SUPPLEMENTARY INFORMATION ~~ City of Dublin Required Supplementary Information For the year ended June 30, 2011 1. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures lln establislnitng the budgetary data reflected iIn tlne basic financial statements: - Prior to June 30 the City Manager subnnits to the City Council a proposed operating budget for the fiscal year commencing the following July L The operating budget includes proposed expenditures and the means of financ>ing them. - The public is given an opportunity to comment on the budget at a noticed City Cowncil meetung. Prior to July 1, the budget is legally enacted through passage of a resolution. - The City Manager is authorized to transfer budgeted amounts between line items, provided that the transfer is within the same department and fund. Any revisions, which alter total deparhnental expenditures of the City must be approved by City Council except as follows: The City Manager will be allowed to transfer funds from the contingent reserve to operating departments salary and benefits accounts when required due to employee turnover or change un status, City Council approved fund>ing for >Tncreases in employees salaries and benefits, and City Council approved funding for increase >ln contract or labor rates. Also, the City Manager can transfer from the Contingent Reserve to address General Fwnd utility expenditures which exceed the budget. Expenditures may not exceed budgeted appropriations by fund at the departmental level, without City Council approval. - Formal budgetary integration is employed as a management control device during the year for tlne general fund, special revenue fwnds and capital projects funds. - Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent with generally accepted account>Ing pritnciples in the United States. - All unexpended operating budget appropriations lapse at the end of the fiscal year, and tlne City Council may approve a Budget Change reflect>ing carry-over items. - As part of the annual Budget adoption the City Cotmcil authorizes Staff to carry-over unexpended capital project appropriations, for those projects where work and expenditures will contitnue in the subsequent year. H~ City of Dublin Required Supplementary Information For the year ended June 30, 2011 1. BUDGETS AND BUDGETARY ACCOUNTING, Continued Excess of Expenditures over Appropriation: - The Public Facilities Impact Fees Capital Project Fund shows $10,694 of interest expense for the repayment to the General Ftmd for the Advance that was made in FY2009-2010 for the construction of the Fallon Sports Park. Repayments are required only when resources were deemed available at year end. - The Fire Impact Fees Capital Project Fund shows $25,465 of interest expense for the repayment to the General Fund for the Advance that was made >11 FY2004-2005 for the fire station construction project. Repayments are required only when resources were deemed available at year end. - The Traffic Impact Fees Capital Project Fund shows $15,930 of hnpact Fee Obligation for the repayment of impact fee collected from the developers. Repayments are required only when resources were deemed available per development agreements. - The Supplemental Law Enforcement Special Revenue Fund shows an additional $319 over appropriation to expend all residual resources (interest earning from prior year) from the fund. 85 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Required Supplementary Information, Continued For the year ended June 30, 2011 Geuernl Fined REVENUES: Property taxes Sales tax Other taxes Intergovernmental Licenses and permits Charges for service Interest Use of property Fn1es and forfeitures Other revenue Total revenues EXPENDITURES: Current: General government Public safety Highways and streets Health and welfare Culture and leisure Community development Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfer n1 Transfer out Total other financing sources (uses) NET CHANGE IN FUND BALANCES FUND BALANCES: Beginning of year End of year Variance with Fn1a1 Budget- BudgetAmounts Actual Positive Original Fn1a1 Amounts (Negative) $ 21,386,000 $ 21,386,000 $ 21,918,~8~ $ 532,-18~ 11,885,680 12,00,000 12,969,119 569,119 x,932,500 3,607,500 3,798,515 191,015 392,600 50-1,860 -196,61? (8,28) 1,516,980 2,820,980 2,752,78 (68,232) 3,891,170 5,06,130 6,-132,785 1,386,655 1,058,660 867,610 536,07 (331,563) 378,80 ~5~,92~ 501,602 X6,678 131,50 L0,5~0 L~,615 -1,075 526,700 2,9-1y,200 3,329,292 380,092 i i i nn ~~ n ~n ~ ~n n i i ~~ ~~~~ ~~ ~ ~ nn~ nn~ 6,200,720 8,758,689 7,878,960 879,729 2-1,150,100 2~,~5~,768 23,576,826 877,92 1,891,210 1,908,098 1,833,791 7,307 ll5,~30 -138,169 337,222 100,97 7,588,59 7,735,16 7,213,11 522,302 5,032,80 5,757,10 5,571,252 186,158 ~-1,978,759 X9,052,550 ~6,-111,165 ? 61,385 (878,~~9) 1,105,19 6,~~8,65~ 5,3~3,~60 - 29,730 29,728 (2) (2,527,710) (3,~59,~58) (3,37,9-17) 111,511 (2,527,710) (3,29,728) (3,318,219) 111,509 $ (3,-106,159) $ (2,32~,53~) 3,130,35 $ 5,~5-1,969 61,012,826 $ 6-1,1-13,261 86 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Required Supplementary Information, Continued For the year ended June 30, 2011 Affordnble Honsifrg Special Revexne Fnxd Budgeted Amounts REVENUES: Interest Loan Repayment Charges for services Other Revenue Developer tees Total revenues EXPENDITURES: Current. General Govenunent Health and welfzu~e Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Total financing sources (uses) Net change in fund Valance FUND BALANCE: Begiiuling of year End of year Original Fi1a1 $ 211,510 $ 211,510 1,000 371,000 17,600 17,600 500,000 500,000 Variance `vith Final Budget- Actual Positive Amounts (Negative) 166,952 $ (-11,608) 177,010 106,010 57,061 9,161 522,500 22,500 51,250 51,235 51,233 2 1,855,790 13,283,010 9,681,611 3,598,129 1,907,010 13,337,275 9,738,811 3,598,131 (1,116,900) (11,131,635) (7,592,031) 3,839,601 6,600 6,600 6,600 - $ (1,110,300) $ (11,125,035) (7,585,131) $ 3,839,601 12,83x,676 87 Tlris page intentionally left blank. 8S City of Dublin Required Supplementary Information, Continued For the year ended June 30, 2011 Schedl~le of Firndin~ in Progress Miscellaneol~s Pl«n o{the G~li{ornin Public Emploiiee Retirement Siistem Tl1e City contributes to the California Public Employee's Retirement System (CaIPERS), as an agent multiple -employer public employee defused benefit pension plan. As part of the actuarial valuation date of June 30, 2003, the City's nuscellaneous plan became part of a CaIPERS Risk Pool for employers with less than 100 active plan members. As part of a cost sharing, multiple-employer defused benefit plan, disclosure of the Schedule of Ftmding prob ess is not required. Information on the fundilg schedule for the pool may be obtained with CaIPERS. Schedule of Funding in Progress Other Post Emplol~rnent Benefit (OPEB) Actuarial Accrued Unfunded UAAL as a Actuarial Liability (Overfunded) Percentage of Actuarial Value of (AAL) - AAL Funded Covered Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date (A) (B) (B-A) (A/B) (C) ((B-A)/C) 6/30/2004 - 4,973,780 4,973,780 0.0% 6,320,280 78.7% 6/30/2007 5,694,000 6,159,000 465,000 92.5% 6,697,747 6.9% 6/30/2009 5,326,000 6,990,000 1,664,000 76.2% 7,618,000 21.8% 89 Tliie pnge intentic~na7li~ Ic~{t F~lr~i~7c. 90 SUPPLEMENTARY INFORMATION ~~~ Tlris page intentionally left blank. 92 GENERAL FUND The General Fund is used to accowlt for all financial resources except those required to be accounted for i11 another ftuld. 93 City of Dublin Schedule of Budget Versus Actual Revenues by Sources General Fund For the year ended June 30, 2011 Property T~ixes: Current ~ ear secured Current rear tmsecured Supplemental propertj- tar Prior ~ ear secured Prior rear ruzeecured Propert- tad penalties In lieu propertj- tar Hotvsnlg ~uthoritS- F ilot tas Sub-total T~ixes Other Than Property: Sales & use tac In lieu sales hn~ Peal propertS- ti'eulsfer tau Hotel transient occupeulc~ teu Frfulchise trues Sub-total License and Permits: _~nunal licensee Suildulg permite Business license Construction ~u1d demolition permits Encroachment pernuts Fire permits Grading pernuts Newspaper racks permits F1EUU1mg peruute Police permits sub-total Fines and Forfeitures: Parking citations Business license penalties Other court lines Other fines & penalties Sub-total Pei*enue From Use of Money and Property: Interest Interest designated Chaulge in Fair hfarket Value of Inaeshnents Feast & Concession: Field uul court rentals Facility rentals Leased Propert~- Sub-total ~'arr<ulce with Final Budget - Budgeted ~1n~,Llll te ~.~tual F~,slti~'e Orlgmal Fll1a1 ~nlotult$ (NegatiPe) 15,950,000 $ 15,950,000 $ 16,500,123 9; 55,123 1,OS0,000 1,080,000 1.0"5,505 (0,{55) 3511,11011 ;50,11110 ;00,}20 ({4,5511) soo,oo0 5no,ooo s~s,lob ~s,lnb ll,ouo ll,oou u~,s5s1 ~2s,sss> 250,000 _50,000 160,"x' (85,°^~) 3,205A00 ,^_05,000 ,300,3°1 n5,3~1 S. ti73,3n0 4,300,000 4, °6 San X26,834 3,012,290 3,100,000 ,202,280 12,280 '90,000 _90,000 0"5,199 155,199 5011,11011 650,000 t.83,~3'' °3? ?,1~°,500 2,66°,500 2,139,58# (2,916) 5,0011 5,0110 5,80 8°0 1,113,350 213,350 ~,~~4,00~ (19,36) 139,D00 139,000 1~{°_,653 5,653 29,350 4.},350 ,;'.,0~0 (1`,2311) 56,530 °6, ,'~0 #4,;'0~ (26,86) 6',030 62,030 59,509 (2,521) 2,000 ',000 1,950 (90) - - ~,°00 ,,2}0 _ ~,8S0 56,880 52,08 11,832) usotl 21,xot1 16,00 15,1no> 1,516,980 2,520,950 _,'52,"8 (68,232) 75,_ou 6,200 6u,~~o 13,~6u> 0,500 x,500 2,095 (2,005) 51,80 51,810 61,6°;' 9,53° 131,50 120,500 120,615 x,0'5 1,1158,6111 81°,610 491,348 123,58 - - °,'64 j,~bq - - (063,1_'0) (063,L'U) ~~,0111 111~,30~ 1#x,118 36,81{ °_5%,{611 ;18,611) ?4;,h00 (111,060) 03,960 03,960 63,850 19,9^_0 (Crnltinued) 9~ City of Dublin Schedule of Budget Versus Actual Revenues by Sources General Fund, Continued For the year ended June 30, 2011 ~'arr<ince with Fu1a1 Budget - Budgeted ~1n~~Llllt3 ~.etUal P~~sltl~'e Orlgmal F inal ~.11lC~LmtS (NegatlcP) Intergovernmental Pevenues: I~fotor ~'elncle In Lieu ~ L0,000 ~; 175,000 ~ 250,9,'4 ~ 75,9°~ I~fuldated Costs - 19,6x0 19,x61 1 Homeowners property- tuc relief 15;,000 153,000 177,024 (5,9"6) Federal grmlt (0,000 97,6011 19,35; (75,''47) Other state grults 29,600 29,600 ^_9,600 - Sub-total 392,x00 509,360 996,6E (5,243) Charges for SerZ~ices: General BuIlding ttse msuruzce L',9x0 L,9x0 16,321 3,361 Cable support fees 7x,500 76,800 79,959 x,159 Sale of snaps u1d documents 3,520 3520 ',863 (657) Public Safety Police charge for sereices 46,790 46,790 63,355 16,565 Fne charge for services 97,940 97,940 118,445 °0,505 Sutra Kira hre sere°aes 710,000 639,9x0 x39,960 - ~4aste Dlulagement 1Faste management admen fees L 9,500 6°_4,500 564,2'n (60,224) Parr and Connntunn-Services ~quahcs programs 153,610 153,610 160,131 6,521 Cemetery 6,260 6,260 4,465 (1,795) Culturalu~ts L3,710 13;,710 163,967 38257 Famih-Program 341,'60 341,760 303,x22 (35,138) Heritage Center 7,080 7,080 5,04" (°_,033) Preschool programs 40;.530 403.530 454,278 5(1,743 Pecreational ?.chi°ihes 131,830 131,830 22S,98n 9,',156 Senior programs 51,480 51,450 71,23x 19,756 Special events 70,4511 70,450 8#,535 14,088 Sports programs ;97,5811 397580 444579 46,99q Teens programs 15,620 15,620 4,141 (11,479) Connntunt~- Development ~iuzeaahon - - °_8,130 28,130 Engmeermg plan checking 803,570 933,870 1,608,D53 x74.183 Green Building fees 350 350 869 519 Local share pernnt surcharge - ShfIP - 280 1,205 925 Building plot checking - 1,000 3,033 2,033 Local share pernut surcharge -Zone 7 drainage tees 1,940 11,660 16,643 4,983 zoning Rc subdi~°ision tees 254,590 553,590 1,334,680 461,090 Sub-total 3,591,170 5,04x,L0 6,4;2,7$5 1,386,x55 Other Pecenues: Crnlhibutions x1,000 161,000 152,295 (5,705) Sales of Property- 1x6,670 16x,670 166,933 hfisce11u1eous °,500 42,200 95,247 56,0#' peimbursement-general °_8,2;0 36,030 61,627 ?5,597 Peimbursement-publiadamage 22,360 ^_°_, ;x0 5#,083 31,723 Feimbursement-C'ommtinit~-Benefit~ssessment 2#0,940 2520,940 2,796,107 275,167 Sub-total 52x,700 2,949,200 33?9,'9' '79,8°q Tot-al revenues by sources ~ 44,100,310 $ 50,157,744 $ 52,559,519 ~; 2„'0°_,075 (Concluded) 95 City of Dublin Schedule of Budget Versus Actual Departmental Expenditures General Fund For the year ended June 30, 2011 variance ~arith Fn~al Budge t - Budgeted Amounts Actual Positi~•e Original Final Amom~ts (Negati~°e) General Goventment: Cin- Council $ 331,~~0 $ 398,90 $ 335,090 $ 60,850 Cin Manager 1,L6,650 1,10,650 1,L0,~92 20,155 Election 79,570 79,870 2,359 55,51 C enhal sei-~Tices 1,39,160 1,350,160 1,017,851 362,309 Cin Attorney 520,000 688,060 652,766 35,29-1 Adittiiushatiee sei-~'ices 1,579,290 1,96,790 1,757,579 158,911 Buzldmg management 716,830 716,830 65,517 32,313 Non-departmental 197,80 2,07,389 2,252,977 15~,~12 Sub-total 6,200,720 8,758,689 7,578,961 879,728 Public Safety: Police 1?,867,710 1?,559,260 L,51~,13~ 3~5,1?6 Firesei~ices 10,51,170 10,51,170 10,069,956 381?1~ Disaster preparedness 103,80 X16,535 36,66-1 69,871 Crossing guards 100,530 100,593 100,593 - Aiuuial conhol ~1~,~20 ~1~,~20 ~1~,-120 - Traffic signals and sheet lighting 212,90 212,90 130,159 81,731 Sub-total 2,150,100 2-1,-15-1,768 23,516,526 877,92 Highways and Streets: Public work admnushation 571,660 876,660 533733 X2,927 Street maintenance 131,280 136,343 13,967 1,376 Sheetlandsaipemamtenance 555,270 595,095 5(15,091 30,00 Sub-total 1,591,210 1,905,095 1,533,791 7,307 Health and Welfare: Cluld care - - - - En~°iroiunenhil programs - 55,000 - 55,000 Socialsei~°ices 115,30 383,169 337,222 ~5,9~7 Sub-total 115,30 X38,169 337,222 100,97 Culture and Leisure: C Ollllllmlltj`Cable tele~'1SlOn 56,790 152,067 15,326 6,71 Librai-~ SeP~ 1CPS 522,90 522,9-10 515,077 -1,5(13 Heritage and Culture Arts 71?,~00 7-12,130 739,661 2,-169 Parkmamtenance x,309,330 x,309,330 1,973,357 335,973 Parlsandcommmun sei-~ices 3,703,579 3,732,119 3,625,01 107,105 Park and facilities management 253,20 276,830 211,679 65,151 Sub-total 7555.59 7.735.16 7?13.11~ 515.561 Conununity Development: De~elopmentsei-~-ices $ 3,09,360 $ 3,587,570 $ 3,~~7,767 $ 139,893 Engnreeiing 1,330,590 1,533,350 1,50,759 25,591 Economic deeelopment 292,890 336,90 315,726 17,76 Sub-total 5,032,50 5,757,10 5,571,252 186,158 Total expendihires $ ~~,978,759 $ X9,052,550 $ ~6,~11,166 $ 2,6~1,35~ 96 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual General Irnprovernents Capital Projects Fund For the year ended June 30, 2011 REVENUES: Other revenue Total revenues Budgeted Amounts Orlgmal Final 82,856 131,856 x,020,117 1,183,212 111,882 (20,021) EXPENDITURES: Capital outlay: General improvements Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Total financing sources (uses) Net change in fund Valance FUND BALANCE: Begimling of year End of year Variance lvith Final Budget- Actual Positive Amounts (Negative) 599,965 583,217 (1,937,561) (998,356) (185,133) 513,223 1,791,922 1,779,952 -185,133 (1,291,819) 1,791,922 1,779,952 185,133 (1,291,819) ~ (112,639> ~ 781,596 - ~ (781,596) ,,, - 97 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Community Irnprovernents Capital Project Fund For the year ended June 30, 2011 REVENUES: Total revenues EXPENDITURES: Capital outlay: Commtmiry improvements Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Total financing sources (uses) Net change in fund Valance FUND BALANCE: Begimling of year End of year Budgeted Amounts Orlgmal Final Variance lvitll Final Budget- Actual Positive Amounts (Negative) 229,810 ~~1?86 328,18 11?,868 ~229,~0~ 22?,197 222,197 (~~1,286) (328,18) 112,868 1~9,~97 328,18 (121,079) 119,197 32s,~1s ~121,0~9> ~ (7,613) ~ s,211 - ~ 0,211) ,a, - 98 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Parks Improvements Capital Project Fund For the year ended June 30, 2011 REVENUES: Total revenues EXPENDITURES: Capital outlay: Parks Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Total financing sources (uses) Net change in fund Valance FUND BALANCE: Begimling of year End of year Budgeted Amounts Orlgmal Final Variance lvitll Final Budget- Actual Positive Amounts (Negative) x,188,376 x,278,158 3,809,723 ~68,~35 0,188,376) (-1,278,158) (3,809,723) ~68,~35 ~,759,903 3,507,322 3,809,723 302,-101 ~,759,903 3,507,322 3,809,723 302,111 $ (1,-128,73) $ (770,836) - $ 770,836 ,a, - 99 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Streets Improvements Capital Project Fund For the year ended June 30, 2011 REVENUES: Other revenue Total revenues EXPENDITURES: Capital outlay: Streets Total expendihires REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Total financing sources (uses) Net change in fund balance FUND BALANCE: Begimling of year End of year Budgeted Amounts Orlgmal Final 9,589,265 9,206,818 9,589,265 9,206,818 (9,53~9,2E5) (9?06,818) 9,538,510 9,553,221 9,538,510 9,553,221 Variance lvith Final Budget- Actual Positive Amounts (Negative) x,518,072 -1,693,76 1,513,072 1,693,716 (1,513,072) 1,698,716 1,508,758 (5,019,168) $ (50,725) $ 316,1113 (9,311) $ (355,717) 9, 311 100 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Public Facilties Impact Fees Capital Project Fund For the year ended June 30, 2011 REVENUES: Interest Developer tees Other revenue Total revenues EXPENDITURES: Current: Parks Total expendihires REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total financing sources (uses) Net change in fund Valance FUND BALANCE: Beg11u1mg OY year End of year Budgeted Amounts Orlgmal Final $ 51,900 $ 51,900 $ 1,607,500 10,316,650 1,659,100 10,398,550 Vffi'lanCe lVlth Final Budget- ctual Positive bunts (Negative) 33,191 $ (18,106) 5,251,373 (5,095,277) 5,281,867 (5,118,683) - - 10,691 (10,691) - - 10,691 (10,691) 1,659,100 10,398,550 5,271,173 (5,121,377) (361,966) (561,966) (328,053) 56,913 (361,966) (361,966) (328,053) 36,913 $ 1,291,131 $ 10,033,581 1,916,120 $ (5,087,161) (1,360,013) 101 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Fire Impact Fees Capital Project Fund For the year ended June 30, 2011 REVENUES: Developer fees Total revenues EXPENDITURES: Current. Public safety Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total financing sources (uses) Net change in fund balance FUND BALANCE: Begimling of year End of year Budgeted Amounts Original Fi1a1 $ 72,160 $ 309,-180 $ 72,160 309,180 72,160 309,180 Variance `vith Final Budget- Actual Positive Amounts (Negative) 98,363 $ (211,11 25,65 (25,165) 25,65 (25,65) 72,898 (236,582) $ 72,160 $ 309,180 72,898 $ (236,582) (1,808,886) $ (1,735,988) 102 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual Traffic Impact Fees Capital Project Fund For the year ended June 30, 2011 REVENUES: Interest Developer fees Other revenue Total revemies EXPENDITURES: Current: General Goverlmlent Highways and streets Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out Total financing sources (uses) Net change in fund balance FUND BALANCE: FieglIlnmg OY year End of year Budgeted Amounts Actual Original Fi1a1 Amounts $ 91,800 $ 9,800 $ 102,189 1,05,880 2?-13,-170 3,01?,~67 1,19,680 2,388,270 3,111,606 variance with Final Budget- Positive (Negative) $ 7,339 768,997 776, 336 x,050 2,050 - x,050 21,10 329,215 315,115 (15,930) 23,160 331,265 35,1-15 (13,880) 1,126,220 2,007,0115 2,769,161 762,156 (5,760,552) (6,108,926) (1,969,161) 1,39,765 (5,760,552) (6,108,926) (1,969,161) -1,39,765 $ (1,631,332) $ (-1,-101,921) 800,300 $ 5,202,221 6,262,885 103 Tlris page intentionally left blank. 10~ 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 reshicted to expenditures for specific purposes. PUBLIC SAFETY: Special Criminal Activity Fund -Established to account for receipt of funds derived fiom asset forfeihires. Vehicle Abatement Fund -Established to Account for the use of funds received from vehicle registration of Dublin residents For the tow>11g of abandoned vehicles >11 city 1>Inits. Supplemental Lain Enforcement (SEES/COPS) - Established to account for police expenditures horded by a State ~nant. Local Lain Enforcement Block Grant - Established to account for police expendihires fiinded by a Federal grant. Traffic Safety Fuud - Established to account for the receipt of haffic fines and haffic safety expenditures. Federal Asset Seizure Fund - Established to account for the receipts and expenditures of the Federal seizure Rinds. EMS Fund - Established to account for excise taxes received to fiend the costs of providing Emergency Medic~~l Services. Enforcement Grant Fund - Established to account For miscellaneous grants received for police expendittues not reported in the above hinds. TRANSPORTATION: Sterte Gas Tax Fund - Established to account For the receipt of state gasoline taxes and expenditures. SAFETEA-LU Fund - Established to account for the revenue received from the U.S. Department of Transportation under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legal for Users fund. Measure B Sales Tax Fund -Local Streets -Established to account for Sul Alameda County voter approved sales tax used for improvements on sheets and roads. Measure B Sales Tax Fund -Bike czrtd Pedestrian - Established to account for an Alameda County voter approved increase in sales tax used For bike and pedeshian related projects. 105 NON-MAJOR GOVERNMENTAL FUNDS TRANSPORTATION, Continued: Congestion Management Agency Fund - Established to account For funds received fiom the A1~mleda County Congestion Management Agency. Traffic Congestion Relief Fund -Established to account For traffic congestion relief expenditures funded by a State ~nant. Highzi~ay Safety Traffic Reduction Bond Fund - Established to account For fl1e receipts of fiends For local streets and road improvements. ENVIRONMENTAL: Measure D Recycling Fund -Established to account for the use of Rinds 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 recycl>11g related activities Garbnge Service Fund - Established to account for fl1e use of funds received which are levied by the county on behalf of the City For garbage pick-up and removal and recycling services. Local Recycling Fund -Established to account for locally derived funds collected for a commercial organic and recycling program and activities retained by the City at the end of the franchise held by Waste Management Inc. These fiends are independent of the Rinds distributed by Stop Waste pursuant to the Alameda County Recycling Measure. American Recoz~erf~ and Reinz~est~nent Act Fund - Established to account For the use of fiends received fiom the Federal governments related to environmental activities. Storm Water Management Fund -Established to account for the hinds received from the State and desi~mated specifically For the use of storm water related activities. Box Culvert Fund - Established to account for the funds designated for the ma>1ltenance Auld repairs of box culvert in the East Dubl>11 area. Duhli~i/Doughe~-ty Storm Water Mamigement Fund - Established to account for funds designated for the management of the Dublin/ Dougherty area storm water traits. Village Parkzt~ay Storm Water Managerrtent Fund - Established to accotmt For funds designated For the management of fl1e Village Parkway area storm water units. PARKS, CULTURAL, AND ARTS: East Bay Regional Park District - Establish to account For the Rinds 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 Pate approved by voters on November ~, 2008. 106 NON-MAJOR GOVERNMENTAL FUNDS PARKS, CULTURAL, AND ARTS, Continued: Public A~-t Fund -Establish to account for the fees received fiom developers of properties, which can only be used For the purchase desi~m, development, and consh~ution of Public Art projects within the City of Dublin. HEALTH AND WELFARE: Corrirruiriity Development Block Graut (CDBG) Fund -Used to account for grants and expenditures related to Community Development Block Gr~ults received. Noise Mitigation Fund -Establish to account For the fees received from developers of properties, which can only be used for the noise mitigation measures. MAINTENANCE DISTRICTS: Established to account for revenue and related expenditures of lighting and landscape dishicts. 107 City of Dublin Combining Balance Sheet Non-Major Goverrunental Funds June 30, 2011 Special peg enue Fiords SpeClal Sllpplemelltal LOl'al Lc7W Criutuuil Velucle La~n~ Enforcement Actin if<' Abatement Enforcement Blocl: Grant Traffic Safetc .ASSETS Cash rind investments $ 83,(139 $ 201,599 $ - $ - $ 109,236 ?.aotults receivable - - 11,316 1,693 13,557 Total assets $ 53,639 $ 201,899 $ 11,316 $ 7,693 $ 1?2,793 LI~RILITIES AND FUND B ~L ~NCES Liab ilities: ~caotmts pad ab le $ - $ ~1 $ 11,31(1 $ - $ 9,93 Due to other huZds - - - - - TOtaI Ilab1I1t1~3 - Yl 11,316 - 9~~93 Fund Eal uices: Festncted Pub he safetS programs 53,639 201,S5S - 7,693 113,300 Street mainten~ulce rued construction - - - - - Health and ~»elFare programs - - - - - Pec~-cling programs - - - - - Capital unpro~°ement pro~ecte - - - - - TorII hmd balances 83,(139 201,S5R - 7,693 113,300 Total liabilities and fend balances $ S3,(i39 $ 201,599 $ 11,31(1 $ 7,(193 $ 1?2,7 93 1os Special Rey enne Fmxls Emergem~ Measure B Measuue B Congestion Fed eral Asset Median En forcement Sales Tax Sales Tax Management Seizrue Fmtd Seri ices Grants State Gas Tax SAFETEA-LU Local Sheets Bike~Pedeshian Agem-~ $ 10,503 $ ~0,~30 $ 3,SS9 $ 1,05,730 $ - $ 591,215 $ ~3~,239 $ - - X3,909 0,25 - X23,362 56,002 5~,0~0 261,095 $ 1~0,5~3 $ 5,339 $ 5,13 $ 1,05,730 $ 023,362 $ 671,217 $ ~SS,279 $ 261,095 $ - $ 70,037 $ 5,200 $ 6,316 $ - $ - $ 1S $ - - - - - X23,362 - - 261,095 - 7Q037 5,2~~ 6,316 X23,362 - 15 261,095 1~0,5~3 1,302 2,590 - - - - - - - - 1,~2Q~1~ - 677,217 X55,261 - 1~O,S~3 1,302 2,590 1,~20,~1~ - 671,217 ~SS,261 - $ 1~O,S~3 $ S~,S39 $ 5,13 $ 1,05,730 $ 025,362 $ (177,217 $ ~SS,279 $ 2(i1,09S (Continued) 109 City of Dublin Combining Balance Sheet Non-Major Goverrunental Funds, Continued June 30, 2011 Special Rey enue Fim3s ASSETS Cash and u1~ estuients Accotmts recei~ able Tot tl assets LIABILITIES AND FUND BALANCES Liabilities: Accotmts parable Due to other fiords Total liabilities Fund Balances: Res hic ted Public safet< progranvs Sheet maintenance and construction Health and welfare prograntis Rec~ cling prograntis Capital iuiproeement projects Total fund balances Total liabilities uid fiord balances Highwcg (TCRF) Traffic SaFet~ American Congestion Trn,ffic Measure D Garbage Local Recoeer~ & $ - $ - $ 35,100 $ 15,13 $ 325,7SS $ - 7,£31 - 200,725 20,130 - 13,506 $ 7,531 $ - $ 235,S2S $ 35,53 $ 325,7SS $ 13,50(1 ~ - `6 - ~ 1~,~s~ ~; X02 ~ 1~1 `6 - 7,531 - - - - 13,506 - - 216,10 38,11 325,607 - - - 216,1~~ 35,11 325,67 - ~; 7,x31 ~; - ~ 23s,s2s y; 3s,s~3 ~; 32s,7ss ~ 13,soi, 110 Special Rey enue Fiords Storm Dnblut/ Village East Bay Noise CoumuuuK Water DonaherK Parhn~a~ Retiirntal Public Art Mifi~aHon Dec elopment $ - S 309,222 $ 107,651 $ 81,005 $ - S 36,635 $ 66,759 $ - $ - $ - $ 5,000 $ - $ - $ - $ - $ 0,376 212,211 - 5,000 - 1,059,091 - - 15,951 - 39,222 102,651 81,05 - - - - - - - - - - 66,759 - - - - - - 360,635 - - - 309,222 102,651 81,005 - 361,635 66,759 - S 212,211 $ 39,222 $ 107,651 $ 51,05 $ 1,059,91 $ 36,635 $ 66,759 $ 1S,9S0 (Continued) 111 City of Dublin Combining Balance Sheet Non-Major Goverrunental Funds, Continued June 30, 2011 Special Rey enue Fiords Mahttenan ce Dishicts Total 1953-1 1953-2 1956-1 1991-1 19)9-1 Non-1v,fa~or Street Stagecoach Dougherty SantaP~ita East Dublin Go~-ernmentnl Lighting Landscape Landscape Landscape Sheet Lighting FLU1ds ASSETS Cash and h1~ estrnents $ 222,969 $ X0,275 $ 9,275 $ 21,090 $ ~06,OS~ ~ 5,113,519 Accomlts recei~ able 1,356 - 32S 6d3 1,55 2,152,005 Total assets $ 22,355 $ X0,275 $ 9,603 $ 21,733 $ X07,629 8 5,9r5,S51 LIABILITIES AND FUND BALANCES Liabilities: Accounts pay able $ 57,560 $ 11,35 $ 15,071 $ 50,53 $ 2~,~61 8 812 ~S7 Due to other limds - - - - - 2,022,10" Tohlliabilities 57,560 11,35 18,0'71 50,543 2,561 2,3x1.191 Fund Balances: Restricted Public safety progranvs 166,95 - - - 353,165 r,rr1,1S8 Sheet maintenance and construction - 28,591 76,532 201,1911 - 3,1'_5,813 Health and welfare prograntis - - - - - xt,589 Rec~ cling prograntis - - - - - 559.032 Capltalm7pT0~'emelltpTOIPCtS - - - - - 361,638 Tohl fiord balances 166,95 28,591 76,532 201,190 353,1(18 5,551 3n0 Total liabilities and fund balances $ 22,355 $ X0,275 $ 95,603 $ 21,733 $ X07,629 8 S,nr5,S51 (Concluded) l i? Tlris page intentionally left blank. 113 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Goverrunental Funds For the year ended June 30, 2011 PEA"ENUES: Property trues Trues other th<uz propern- Intergovernmental Charges for sei~°cce Interest Fines and forfeitures Developer Fees Other rep°enue Special assessments Total revenues ESPENDITUP.ES: Current General Government L'uhlic safety Hi~h~vavs mid streets Health and welfare Cultural cold Leisure Connntuliti- development Totalexpendihues PEV-ENUES O~"EP. (UNDEP) E\PENDITUPES OTHEP FINANCING SOUPCES (USES): Trrulsfer in Tr<ulsfer out Total other financing sources (uses) NET CH.~NGE IN FUND B.~L.~NCES FUND BALANCES: Begnming of ~-ear End of ~ ear Special Fevenue Ftiulds Special Supplemental Local Law - '~?,097 100,000 - 1,28' 3,109 319 L?0 $ 1,2h8 - - - - 1'8,980 3,085 - - - - x,372 35,20a 100,319 120 180,25 2.s8~ S1T loo,sl9 1,05 lus,~~h - (18,953) - - - - (18,953) - - - 1,586 15,739 - (937) 70,502 `~ S3,639 $ 201.855 `~ - `~ ';,693 $ 113,3011 11~ rep ent~e Ftu,d. Federal Emergency Dleasure B b,feasure B Congestion - ~ 15,590 ~ - ~ - ~ - ~ - ~ - ~ - - - - - - 3^_x,11? 116,191 - - L1,573 21,25{ 1,1~8,~19 3#',52~ - - 2x1,09 1,952 X20 - 15,73: - 3{,316 ;,SSl - L {,357 - - - - - _3,91 - liti,;;q ;20,653 21,5 l,lb°,156 ;~^,S°_# ;11,#;3 1~~, 2~iS °_u1,U9S - 315,'3 15,3a~ 36,11' ^5,~2~{ 12,6#? 6, 000 - 315, °.q# 15,36 #20,536 - - L',6~{2 - 13~i4;9 },9}9 2,590 7~~i,620 ;.}^,g°-# ,11,#;; 13,6°_.i °_~i 1,09S - - - (53,538) (3~~,ti2#) (3#0,515) (1~5,°6U) (°~i1,0~!S) - - - (SS~,538) (3#',52~) (30,565) (1~5, 760) (261A9S) 131,;;9 },9}9 ? S90 162,082 - 2Q,S6S (11,130 - (Continued) 11S City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Goverrunental Funds For the year ended June 30, 2011 PEA"ENUES: Property trues Trues other th<uz propern- Intei,~oaernmenhrl Charges for sei~°cce Interest Fines and forfeitures Developer Fees Other rep°enue Special assessments Total revenues ESPENDITUP.ES: Current General Government L'uhlic safety Hi~h~vavs mid streets Health and welfare Cultural cold Leisure Connntuliti- development Totalexpendihues PEV-ENUES O~"EP. (UNDEP) E\PENDITUPES OTHEP FINANCING SOUPCES (USES): Trrulsfer in Tr<ulsfer out Total other financing sources (uses) NET CH.~NGE IN FUND B.~L.~NCES FUND BALANCES: BegnZnmg of ~-ear End of ~-ear Special Pevenue Ftulds Highway _~menrul Traffic Sate tt- Peaover~- - 7,531 215,903 - 55,n25 13,506 - - - -,'-5;,a1~ - - 6,157 - °_,500 1,365 5,979 - - - ?,950 - - - 6,157 7,5;1 2°_T,65; 2,25.},ci79 61,9U~{ 13,SU6 ',~1# 391 2~','UO v,^7~,2~9 6,15,' 7,531 (#61,800) (7,t?31) 051,500) (7,831) (~~5,6~3) - 19,9n1 157, 290 (35,655) (19,270) (115,3~}7j 13,506 - - (13,506) - - - (13,5Uo) (35,655) (19,270) (115,3~}7j - $ - `~ - `~ 2hi, 1~~ $ 38,1#1 $ ?''S,bT7 `~ - 116 ~~ e~~ni Pe~~ enue Btu,ds Enst Bn~ Sri„ ~,,, nut hn/ ~°mn~e Pegionnl r ut t~~ a,,,,n,tu,~r~ tFater Boa DotiBhert~- Pnrkwa~- Park ~1rt Noise Deaelopment Nlcuingement Culaert Storm 1Fater Storm ~ti~nter District Biuzd I~fingntion Block Grxint 21^_,210 - - - 782,955 - - 7o,Oti0 lb; 5,300 l,a~{7 1,205 - 5,729 9S9 - - - - - - 101!,380 #,L8 - 2L,373 5,;}il 1,6{7 1,215 752,955 1116,109 5, L'7 7o,0(i~{ 5,1100 69,0b0 - - F,000 - - - - 69,#6# 2L,373 5,;00 (;,;5;) 1,215 782,955 1116,109 5, L'7 6,601! (;g6,05B) - (782,955) (116,073) (0,600) (386,058) _ _ _ (782,955) (116,073) - (0,600) (183,tiS5) 5,3#0 (3,353) 1,205 - (10,36#) 5,127 - 153,685 3~3,H82 lOb,f13# SO,1h0 - 375,00^_ 61,062 - `~ - `~ 3~19,~~, ~; 102,h81 `~ 81,05 $ - `b 3h~,r;8 ~ 66,789 $ - (Continued) 117 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Goverrunental Funds For the year ended June 30, 2011 P.E~"ENUES: ProperK hues Trues other th<uz propern- Intergoc~ernmental Charges for sei~°cce Interest Fu1es and forfeitures Developer Fees Other rep°enue Spe iil vssessments Total revenues ESPENDITUP.ES: Current General Goy°ernment I'uhlic safety Hi~h~vacs mid streets Health and welfare Cultural cold Leisure Connntuliti- de~-elopment Totalexpendihues PEV"ENUES O~"EP. (UNDEP) E\PENDITUPES OTHEP FINANCING SOUPCES (USES): Trculsfer in Tr<ulsfer out Total other financing sources (uses) NET CH.~NGE IN FUND B.~L.~NCES FUND BALANCES: BegnZnmg of ~-ear End of ~-ear Special Pe~-enue Ftu,ds hfaultenculce Districts Total 1)53-1 1953-2 1986-1 1)97-1 1999-1 Non-1v,fajor Sheet Stagecoach Dougherty SanhaP~ita EastDublin Goi=ernmental Lighting Landscape Landscape Landscape Sheet Lighting Fiuzds I - I - $ - $ - I - ~ 1TS,590 - - - - - #3,313 - - - - - 3,~1}9,659 _ _ _ _ _ 2,253,a1T _,791 ~.'1 1,35T 8,031 5,90,' 11,207 - - - - - 17S,9S0 - - - - - 10~,512~ T,5ST - - - - lo8.Ta? 2°0,552 69,657 10"?,025 27,367 155,105 901,'39 _,°,927 70,15S 111;, ;S2 ?°°, ;9S 19T,OL 7,766,Oti7 - 2,?1~ 250,619 11°_ ~11T 9~{~{,165 - 65,610 106,607 57,9x6 551,60T ',753,703 1S, °_~{5 phi (7,SS11) L7, 112 ;,S$7 ;,17x,0511 (3,#23) (Sg5) (1,°991 (' 0371 (35,69T1 C3,S1S,19g1 (3,T23) (S35) (1,299) (2,9;°) (35,a9T) (3,S1S,199) 1T,822 (~69) (9,179) 9,205 38,193 (3#2, 1~{9) 151,6"3 29,310 55,711 191,935 3T~ 975 5,593,509 I 166,95 I 2S,S91 $ 6,532 $ 201,190 I :;53,165 I ,551,310 (Concluded) 11S City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Special Criminal Activity Special Revenue Fund For the year ended June 30, 2011 REVENUES: Interest Other revenue Total revenues EXPENDITURES: Current: Public sarety Total expenditures Net change in fund balance FUND BALANCE: Begimling of year End of year Budgeted Amounts Original Final $ 650 $ 650 $ Variance with Fn1a1 Budget - Actual Positive Amounts (Negative) 1,287 $ 687 650 650 x,372 3,722 5,170 5,170 2,786 2,38 5,170 5,170 2,786 2,38 $ 0,520) $ 0,520) 1,586 $ 6,106 82,053 119 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Vehicle Abatement Special Revenue Fund For the year ended June 30, 2011 REVENUES: Intergovernmental Interest Total revenues EXPENDITURES: Current: Public safety Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING (USES): Transfers out Total other financing Net change in fund Valance FUND BALANCE: Begllllllllg OY yeflr End of year Budgeted Amounts Original Final $ 32,180 $ 32,180 $ 35,390 35,390 Variance with Fn1a1 Budget - Actual Positive Amounts (Negative) 32,097 $ (83) 8,109 (101) 630 630 51~ 116 630 630 51~ 116 3,760 3,760 3,692 (68) (18,950) (18,950) (18,953) (3) (18,950) (18,950) (18,953) (3) $ 15,810 $ 15,810 15,739 $ (71) 186,119 120 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Supplemental Law Enforcement Special Revenue Fund For the year ended June 30, 2011 REVENUES: Intergovernmental Interest Total revenues EXPENDITURES: Current: Public sarety Total expenditures REVENUES OVER (UNDER) EXPENDITURES Net change in fund balance FUND BALANCE: BPglmllllg OY year End of year Budgeted Amounts Actual Original Fu1a1 Amounts $ 100,000 $ 100,000 $ 100,000 - - 319 100, 000 100, 000 100, 319 Variance with Fn1a1 Budget - Posifive (Negative) $ - 319 319 100,000 1011,000 100,319 (319) 100,000 100,000 100,319 (319) $ - `~ - - $ - L1 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Local Law Enforcement Block Grant For the year ended June 30, 2011 REVENUES: Intergovernmental Interest Total revenues EXPENDITURES: Current: Public safety Total expenditures REVENUES OVER (UNDER) EXPENDITURES Net change in fund Valance FUND BALANCE: BPg1llYllllg Or year End of year Budgeted Amounts Orlglllal Final $ - `~ - $ Variance with Fn1a1 Budget - Actual Positive Amounts (Negative) - $ - - - 120 LO 8,630 8,630 1,057 7,573 8,630 8,630 1,057 7,573 (8,630) (8,630) (937) 7,693 ($630) (8,630) (937) 7,693 8,630 122 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Traffic Safety Special Revenue Fund For the year ended June 30, 2011 Variance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) REVENUES: Interest $ 510 $ 510 $ 1,268 $ 758 Fn1es and forfeitures 170,000 170,000 178,980 8,980 Other revenues - - - - Total revenues 170,510 170,510 180,28 9,738 EXPENDITURES: Current: Public safety 11,580 11,580 105,76 8,83 Total expenditures 11-I,580 11,580 105,7-I6 8,83 OTHER FINANCING (USES): Transfers out (38,380) (38,380) - 38,380 Total other financing (38,380) (38,380) - 38,380 Net change in fund balance $ 17,550 $ 17,550 7-I,502 $ 56,952 FUND BALANCE: BPglnnmg OY yedr 38, 798 End of year $ 113,300 123 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Federal Asset Seizure Fund For the year ended June 30, 2011 REVENUES: Interest Other revenues Total revenues EXPENDITURES: Current: Total expenditures Net change in fund balance FUND BALANCE: Beginning of year End of year Budgeted Amounts Orlglllal Fll1al $ -10 $ ~0 $ Variance with Fn1a1 Budget - Actual Positive Amounts (Negative) 1,982 $ 1,92 ~0 ~0 136,339 136,299 $ ~0 $ ~0 136,339 $ 136,299 ~, 50~ L~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -EMS Special Revenue Fund For the year ended June 30, 2011 REVENUES: Property taxes Intergovernmental Interest Total revenues EXPENDITURES: Current: Public sarety Total expenditures Net change in fund balance FUND BALANCE: BeglIlnmg OY year End of year Budgeted Amounts Orlglllal Final $ 1~~,300 $ 171,570 316,700 318,860 318,860 318,860 315,73 3,L6 818,860 315,78-1 3,1?6 $ (2,160) $ (2,160) ~,9~9 $ 7,109 9 353 ,,, _ L5 1~~,300 $ 171,570 Variance with Fn1a1 Budget - Actual Positive Amounts (Negative) 18,590 $ x,290 171,573 3 520 (310) 316, 7(10 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Enforcement Grants For the year ended June 30, 2011 Variance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) REVENUES: Intergovernmental $ 22,030 $ 22,030 $ 21,25 $ (776) Total revenues 22,030 22,030 21,25 (776) EXPENDITURES: Current: Public safety 18,365 18,365 18,36 1 Total expendihires 18,365 18,365 18,36 1 Net change in fund balance $ 3,665 $ 3,665 2,890 $ (775) FUND BALANCE: Begiiululg of year - End of year $ 2,890 126 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -State Gas Tax Special Revenue Fund For the year ended June 30, 2011 REVENUES: Intergovernmental Interest Total revenues EXPENDITURES: Current: Public safety Highways and streets Community development Total expenditures OTHER FINANCING (USES): Transfers out Total other financing Net change in fund balance FUND BALANCE: BPglnnmg OY year End of year Variance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) $ 1,259,500 $ 1,259,500 $ 1,1~8,~19 $ (111,081) 27,980 27,980 18,787 (9,28) -11,820 X1,820 36,112 5,708 X61,890 X61,890 378,~2~ (372,~2~) 6,000 6,000 6,000 X55,890 509, 710 509, 710 -120,536 89,17 (76,973) (76-1,973) (58,538) 180,35 (76-1,973) (76,973) (58,538) 180,35 $ 12,797 $ 12,797 162,082 $ 19,285 1,258,332 ~ ~,-~_~,f~f L7 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - T.E.A Special Revenue Fund For the year ended June 30, 2011 Variance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) REVENUES: Intergovernmental $ 57,50 $ 57,50 $ 3-17,82-1 $ 290,28 Total revenues 57,50 57,50 3~7,82~ 290,28 EXPENDITURES: Current: - - - - Total expenditures - - - - OTHER FINANCING (USES): Transfers out (3.46,759) (36,759) (3~7,82~) (1,065) Total other financing (36,759) (36,759) (3~7,82~) (1,065) Net ch2nge in fund balance $ (289,219) $ (289,219) $ - $ 289,219 FUND BALANCE: BPglnnlllg 04 year - End of year $ - L8 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Measure B Sales Tax Transportation Special Revenue Fund For the year ended June 30, 2011 REVENUES: Sales tax Interest Intel~governmentll Total revenues EXPENDITURES: Current: Total expenditures OTHER FINANCING (USES): Transfers out Total other financing Net change in fund Valance FUND BALANCE: Begiluling of year End of year Budgeted Amounts Orlgmal Final $ 812,880 $ 12,650 31?,880 $ 12,650 325,530 variance with Fn1a1 Budget - Actual Positive Amounts (Negative) 327,117 $ 11,237 81,316 21,666 (~5-1,050) (151,050) (310,565) 113,185 (~5-1,050) (-151,050) (310,565) 113,185 $ (128,520) $ (128,520) $ 20,868 $ 19,388 656,39 129 ,,, ._, City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Measure B Bike and Pedestrian Special Revenue Fund For the year ended June 30, 2011 Variance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) REVENUES: Sales tax $ 110,00 $ ll0,0~0 $ 116,196 $ 6,156 Other revenue - - 23,91 23,91 Interest 8,370 8,370 7,581 (789) Total revenues 118,10 118,-I10 17,268 28,858 EXPENDITURES: Capital Outlay Highways and streets 15,571 15,571 L,6-I2 2,929 Total expenditures 15,571 15,571 12,62 2,929 OTHER FINANCING (USES): Transfers out (229,219) (229,219) (15,760) 83,59 Total other financing (229,219) (229,219) (15,760) 83,59 Net change in fund balance $ (126,380) $ (L6,380) $ (11,130 $ 115,2-I6 FUND BALANCE: Beginnnlg of year X99,395 End of year $ -I88,261 130 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Congestion Management Agency Fund For the year ended June 30, 2011 Variance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) REVENUES: Intergovernmental - 261,098 $ 261,098 Total revenues - - 261,098 261,098 EXPENDITURES: Current: - - - - Total expenditures - - - - OTHER FINANCING (USES): Transfers out (307,760) (307,760) (261,098) X6,662 Total other financing (307,760) (307,760) (261,098) X6,662 Net change in fund balance $ (307,760) $ (307,760) $ - $ 307,760 FUND BALANCE: BPglnnmg OY yedr - End of year $ - ~~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Traffic Congestion Relief Special Revenue Fund For the year ended June 30, 2011 REVENUES: Intei~governnlentll Interest Total revenues EXPENDITURES: Current: Total expenditures OTHER FINANCING (USES): Transfers out Total other financing Net change in fund Valance FUND BALANCE: BPg111Yllllg Or yetll' End of year Budgeted Amounts ~l'lglllal Flllal Actual Amounts 6,157 6,157 Vari<lnce with Fnlal Budget- Positive (Negaflve) `~ 051,150) 051,150) (-151,800) (650) 051,150) 051,150) 051,800) (650) $ 051,150) $ 051,150) $ 0~5,6~3) $ 5,507 -1~5,b~ 132 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Highway Traffic Reduction Bond Special Revenue Fund For the year ended June 30, 2011 REVENUES: Intei~governnlentll Interest Total revenues EXPENDITURES: Current: Total expenditures OTHER FINANCING (USES): Transfers out Total other financing Net change in fund balance FUND BALANCE: BPglnnlllg OY yedr End of year Budgeted Amounts ~l'lglllal Flllal $ - `~ - $ Variance with Fnlal Budget- Actual Positive Amounts (Negative) 7,831 $ 7,831 - - 7,831 7,831 - - (7,831) (7,831) - - (7,831) (7,831) $ - $ - $ - $ - 133 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Measure D Recycling Special Revenue Fund For the year ended June 30, 2011 variance with Final Budget- Budgeted Amounts Actual Positive Original Fir1a1 Amounts (Negative) REVENUES: Intergovernmental $ 191,520 $ 19-I,520 $ 218,903 $ 2-I,383 Interest 3,720 3,720 2,800 (920) Other revenue 5,000 5,000 2,950 (2,050) Total revenues 200,20 203,20 22,653 21,13 EXPENDITURES: Current: General government 6,180 6,180 2,21 3,966 Highways and streets 5,395 5,395 5,39-I 1 Health and welfare 281,010 27$010 252,700 25,310 Total expenditures 292,585 289,585 260,308 29,277 OTHER FINANCING (USES): Transfers out - (3,000) - 3,000 Total other financing - (3,000) - 3,000 Net change in fund balance $ (92,35) $ (89,3-I5) (35,655) $ 53,690 FUND BALANCE: Beg11u1mg OY year 251, 799 End of year $ 216,1~~ 13~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Garbage Service Special Revenue Fund For the year ended June 30, 2011 Variance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) REVENUES: Charges for services $ 1,851,270 $ 2,211,270 $ 2,253,61 $ ~2,3~-I Interest 2,120 2,120 1,365 (755) Total revenues 1.883.390 2?13.390 2?5~.979 X1.589 EXPENDITURES: Current: Health and welfare 1,923,250 2,27,250 2,27~,2~9 1 Total expenditures 1,923,250 2,27,250 2,27-I,2~9 1 Net change in fund balance $ (39,860) $ (60,860) (19,270) $ -I1,590 FUND BALANCE: Beginnnlg of year 57,~ll End of year $ 38,1-I1 1 ~5 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Local Recycling Program Special Revenue Fund For the year ended June 30, 2011 REVENUES: Intergovernmental Interest Total revenues Budgeted Amounts Orlglllal Final $ 55,925 $ 55,925 $ 8,350 8,350 6,275 6-1,275 Variance with Fn1a1 Budget - Actual Positive Amounts (Negative) 55,925 $ - 5,979 (2,871) EXPENDITURES: Current: Highway and sheets Health and welfare Total expenditures Net change in fund balance FUND BALANCE: BPglnnmg OY yeflr End of year 21,555 21,555 19,961 1,59 173,6611 173,660 157,290 16,370 195,215 195,215 177,251 17,96 $ (130,90) $ (1311,90) $ (ll5,3~7) $ 15,593 ~~O,99~ 136 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -American Recovery & Re-Investment Act For the year ended June 30, 2011 Variance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) REVENUES: Intergovernmental $ 156,700 $ 186,700 $ 13,506 $ (173,190 Total revenues 186,700 186,700 13,506 (173,190 EXPENDITURES: Current: Highways ~ streets - - - Total expenditures - - - - OTHER FINANCING (USES): Transfers out (186,700) (186,700) (13,506) 173,19 Total other financing (186,700) (186,700) (13,506) 173,19 Net change in fund Valance ~ - $ - $ - $ - FUND BALANCE: BPg1llYllllg Or year - End of year $ - 137 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Storm Water Management Fund For the year ended June 30, 2011 Variance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) REVENUES: Intergovernmental $ 19-1,700 $ 19,700 $ 212,210 $ 17,510 Interest 1,810 1,810 163 (1,67) Total revenues 196.510 196.510 2L.373 15.863 EXPENDITURES: Current: Total expenditures - - - - OTHER FINANCING (USES): Transfers out (996,530 (996,530 (396,058) 600,76 Total other financing (996,530 (996,530 (396,058) 600,76 Net change in fund balance $ (80Q02-1) $ (800,020 $ (183,685) $ 616,339 FUND BALANCE: Begiiuznlg of year 183,685 End of year $ - 138 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Box Culvert For the year ended June 30, 2011 REVENUES: Interest Total revenues EXPENDITURES: Current: Highways ~ streets Total expenditures OTHER FINANCING (USES): Transfers in Total other financing Net change in fund Valance FUND BALANCE: BPg1llYllllg Ot year End of year Budgeted Amounts Orlglllal Fll1al $ 5,860 $ 5,860 $ 5,860 5,860 Variance with Fn1a1 Budget - Actual Positive Amounts (Negative) 5,310 $ (520) 80,000 80,000 - 80,000 80,000 8Q000 - 80,000 $ (7~,1~0) $ (7~,1~0) 5,30 (80,520) ~~?,882 139 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Dublin/Dougherty For the year ended June 30, 2011 Variance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) REVENUES: Interest $ - $ - $ 1,67 $ 1,67 Total revenues - - 1,67 1,67 EXPENDITURES: Current: Highways ~ streets 5,000 5,000 5,000 - Total expendihires 5,000 5,000 5,000 - OTHER FINANCING (USES): Transfers in - - - Total other financing - - - - Net change in fund balance $ (5,000) $ (5,000) (3,353) 1,6-17 FUND BALANCE: Begiiuling of year 106,03 End of year $ 102,6£1 1-10 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Village Parkway For the year ended June 30, 2011 REVENUES: Intergovernmental Interest Total revenues EXPENDITURES: Current: Total expenditures Net change in fund balance FUND BALANCE: Begiiuling of year End of year Budgeted Amounts Orlglllal Final $ - `~ - $ Variance with Fn1a1 Budget - Actual Positive Amounts (Negative) - $ - - - 1,25 1,25 $ - $ - 1,25 1,25 80,160 1-11 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -East Bay Regional Park District Special Revenue Fund For the year ended June 30, 2011 Valiance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) REVENUES: Intergovernmental $ 611,379 $ 611,379 $ 782,955 $ 171,576 Total revenues $ 611,379 $ 611,379 782,955 $ 171,576 EXPENDITURES: Current: Culture ~ leisure - - - - Total expenditures - - - - OTHER FINANCING (USES): Transfers out (90,360) (90,360) (782,955) 157,05 Total other financing (90,360) (90,360) (782,955) 157,05 Net change in fund balance $ (328,981) $ (328,981) $ - $ 328,981 FUND BALANCE: Beglllnmg OI ~7ea1' - End of year $ - 112 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Public Art Fund For the year ended June 30, 2011 variance with Fn1a1 Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Developer fees $ - $ 83,620 $ 100,380 $ 16,760 Interest 3,830 3,830 5,729 1,899 Total revenues 3,830 87,-I50 106,109 18,659 EXPENDITURES: Current: Culture & leisure 2,500 2,500 2,500 Total expenditures 2,500 2,500 - 2,500 OTHER FINANCING (USES): Transfers out (22,607) (22,607) (ll6,~73) 108,13 Total other financing lases) (22-I,607) (22,607) (116,73) 108,13-I Net change in fund balance $ (223,277) $ (139,657) $ (10,360 $ 12,293 FUND BALANCE: BPglmllllg OY ~7ear 375,002 End of year $ 36,638 1-I3 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -Noise Mitigation Fund For the year ended June 30, 2011 REVENUES: Interest Developer tees Total revenues EXPENDITURES: Current: Total expenditures Net change in fund Valance FUND BALANCE: BPglnnlllg Of yeal' End of year Budgeted Amounts Orlgmal Final $ 1,030 $ 1,030 $ variance with Fn1a1 Budget - Actual Positive Amounts (Negative) 989 $ (-11) 1,550 1,550 5,127 3,577 $ 1,550 $ 1,550 5,127 $ 3,577 61,662 $ 66, 789 1-1~ City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - CDBG Special Revenue Fund For the year ended June 30, 2011 REVENUES: Intergovernmental Total revenues EXPENDITURES: Current: Health and welfare Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund Valance FUND BALANCE: Beglllnmg OI ~7ea1' End of year Variance with Fnlal Budget - Budgeted Amounts Actual Positive Original Fn1a1 Amounts (Negative) $ 93,170 $ 93,170 $ 76,06 $ (17,106) 93,170 93,170 76,06 (17,106) 69,70 69,-170 69,~6~ 6 69,70 69,-170 69,~6~ 6 ?3,700 ?3,700 6,600 (17,100) (6,600) (6,600) (6,600) - (6,600) (6,600) (6,600) - $ 17,100 $ 17,100 - $ (17,100) ,,, - 115 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -1983-1 Street Lighting Special Revenue Fund For the year ended June 30, 2011 REVENUES: Interest Other revenue SpeciAl Assessments Total revenues EXPENDITURES: Current: Public safety Community development Total expenditures OTHER FINANCING (USES): TrAnsfers out Total other financing (uses) Net change in fund Valance FUND BALANCE: BPglnnmg OY yPAl' End of year Budgeted Amounts Orlgmal Final $ 2,100 $ 2,100 $ x,500 x,500 variance with Fn1a1 Budget - ActuAl Positive Amounts (Negative) x,791 $ 691 -1,58 2,08 269,360 269,360 277,927 8,567 287,570 287,570 250,619 36,951 9,065 9,065 9,063 2 296,635 296,635 259,682 36,953 (3,20) (3,-120) (3,23) ~3) (3,20) (3,-120) (3,23) (3) $ (3Q695) $ (311,695) $ 1-1,822 $ (28,389) 151,673 $ 166,95 1-16 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -1983-2 Stagecoach Landscape Special Revenue Fund For the year ended June 30, 2011 REVENUES: Interest Special assessments Total revenues EXPENDITURES: Current: Highways and streets Commtulity development Total expenditures OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund Valance FUND BALANCE: BPglllnmg OI yeal' End of year Budgeted Amounts Ol'lglllal Final $ 280 $ 280 $ 69,910 69,910 70,220 70,220 71,110 71,110 Variance with Fn1a1 Budget - Actual Positive Amounts (Negative) 171 $ 191 69,687 (253) 65,610 5,530 75,275 75,275 69,712 5,533 (890) (890) (885) 5 (890) (890) (885) 5 $ (5,915) $ (5,915) $ (169) $ (5,595) 29, 360 117 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -1986-1 Dougherty Landscape Special Revenue Fund For the year ended June 30, 2011 REVENUES: Interest Special assessments Total revenues EXPENDITURES: Current: Highways and streets Commtulity development Total expenditures OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund Valance FUND BALANCE: BPglllnmg OI yeal' End of year Budgeted Amounts Ol'lglllal Final $ 1,210 $ 1,210 $ Variance with Fn1a1 Budget - Actual Positive Amounts (Negative) 1,35 $ 1-1-1 101,680 101,680 103,382 1,702 107,160 107,160 106,607 553 x,655 x,655 x,655 - 111,815 111,815 111,262 553 (1,300) (1,300) (1,299) 1 ~1,300> ~1,300> ~1,2y9> i ~ (1i,~35> ~ (ii,-135> ~ (9,i~a> ~ i,15o 85, 711 1-18 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -1997-1 Santa Rita Landscape Special Revenue Fund For the year ended June 30, 2011 REVENUES: Interest Special assessments Total revenues EXPENDITURES: Current: Highways and streets Commtmity development Total expenditures OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund Valance FUND BALANCE: BPglnnmg Ol yPal' End of year Budgeted Amounts Orlgmal Final $ 1,830 $ 1,830 $ variance with Fn1a1 Budget - Actual Positive Amounts (Negative) 3,031 $ 1,201 266,70 266,70 277,398 1Q658 295,930 295,930 257,966 37,96 7,290 7,290 7,290 - 303,220 303,220 265,256 37,96 (2,911) (2,90) (2,937) 3 (2,90) (? 9~0) (2,937) 3 $ (39,20) $ (39,20) $ 9,205 $ (27,303) 191, 9c~' CJ $ 201,190 1-19 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual -1999-1 East Dublin Street Lighting Special Revenue Fund For the year ended June 30, 2011 REVENUES: Interest Other revenue SpeciAl Assessments Total revenues EXPENDITURES: Current: Public Safety Conununity development Total expenditures OTHER FINANCING (USES): Transfers out Total other financing (uses) Net change in fund Valance FUND BALANCE: BPglnnmg OY yPAr End of year Budgeted Amounts ActuAl Original Final Amounts $ 5,250 $ 5,250 $ 5,907 186, 730 186, 730 188,10 5 191,980 191,980 19,012 VAriance with Fi1a1 Budget - Posifive (Negative) $ 657 1, 375 x,032 L1,320 121,320 1L,911 8,106 7,215 7,215 7,211 -1 128,535 128,535 120,125 8,110 (115,380) (115,380) (35,691) 79,686 (115,380) (115,380) (35,691) 79,686 $ (51,935) $ (51,935) $ 38,193 $ 73,308 3-1,975 $ 383,168 150 INTERNAL SERVICE FUNDS Inter71a1 Service Funds are used to account for the fiilanc>11g 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 Fund -this fwld is an interest bearing Internal Service Fw1d established to finance necessary vehicle replacements. BuildingReplace~nent Fund -this fund is an interest bearing Internal Service Fw1d established to finance future major building component repair expenditures. Equipm~rt Replacement Fund -this fund is an interest bearing hlternal Service Fw1d established to finance necessary equipment replacements. Maintenance and Repair Fnnd -this fwld is an interest bearing hltei7lal Service Fund established to account for the on-go>11g maintenance and repairs of vehicle and office equipment. Retiree Health Care Fund -this fund is an >1lterest bear>11g Internal Service Fw1d established to account for the contribution made to the California Employers' Retiree Benefit Trust Fund for future retiree health care benefits. PERS Side Fnnd - this fund was established to account for the repayment to the general fund for the advance made i11 fiscal year 2007-2008 to pay CALPERS for the City's Side Fw1d obligation. The Side Fund was created in 2005 when CALPERS assigned agencies with less than 100 participants to a risk shar>11g 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. 151 City of Dublin Combining Statement of Net Assets Internal Service Funds June 30, 2011 Vehicle Euildulg Equipulent nlainten uxe Replacement Replacement Replacement and Repair Ftmd Ftmd Ftu1d Ftmd ASSETti Current assets: Cash and m~-eshnents ~ 3,091,555 ~ S,x01,0x4 g 2,2x4,335 ~ $30x Receivables: ~ccotmts 2,172 1,240 Prepaid items - 02,930 Total ~'llrrent aSSPIS 3,093,925 3,601,0x4 2,?64,25 42,956 Noncurrent assets: Lmnl - 111,E°~{ X92 - C C1llstru~tlClll m pro L,rPSS - 2~9, 335 - ALi11dll1gs .llld 11nprC~~'enlentS - 62,03 1,U'_4 - S-elncles, maclnner~-u1d equipment ;,;31,32; 4x1,552 ^_,551,439 - Le~ s: accumulated depreciation (2,335,170) (21,3.3,5°) (_,3'_5,401) - Total noncurrent assets 994,153 51,714,;13 '2,035 - Total assets 4,tIS3,030 60;315, 332 2,435,355 42,956 LIAEILITIES Current hab ihhes: ~ccotults paS-able 2,93'_ - L430 ^_0,415 Other paS-able - - - - L)ue to other hued - - - Total current liabilities 2,95°_ - 1,4;0 ^_0,415 Noncurrent liabilities: ?,dv~ulces from other fiulds - - - - Total noncurrent liab ihhes - - - - Total liabilities 2,932 - 1,430 ^_0,415 NET .ASSETS In~-ested m capital assets 99#,153 51,51 313 ^_23,17.33 - Unrestricted 3,090,945 8,x01,064 2,26;,405 22,561 Total net assets ~ 4,035,093 $ 60,315,352 ~; °_,4&,,445 $ °_2,5x1 152 Petn~ee PEPS Henlth Ceue Side FLU1d Tohil 150,552 ~ - ~ 1T,1T°,01T lOS,#~T - 111,556 - ,2,930 2S$9~6 - 1~,2'~1,800 111 ~.,~ ^u~ ~?9 ;5° - - 62,051,62 6,;}.},31T - - (0_6,#98,bU5) 52,cg1,50~ 255,~)gc - n~,o0",~Ilq ~°5,8511 - '~0; h°~ 9,94 - 9,94 2,3T0,955 0_,30,955 255,°9T 0,3T0,9~5 ,n5~{,5°6 255,?9} 2,30,955 2,65,5'0 - - 52,231,509 20^_ (2,30,955) 11,63;',00.} $ 202 $ (2,3T0,955) `~ 6T,x8,~33 153 City of Dublin Combining Statement of Revenues, Expenses and Changes in Net Assets Internal Service Funds For the year ended June 30, 2011 OPEPATING P.E~'ENUES: Charges for services Other rei-enue Total operating reeenue,s OPEPATING E\PENSES: Supplies cold servaes OPEB e.~penses Uepreciatx~n Total operating expenses Operating income (loss) NONOPEP STING PEVENUES: Interest income Trazlsfer from the General Etu1d Sale of propert~- Total NON operating revenues NONOPEP STING E\PENSES: Trculsfer to the General Improremeiit Capctal Protects ELU1d Total NON operating expenses Non operating income (loss) Change in net assets NET ASSETS: Pegnnnng of rear, as restated End of ~ ear ~'elncle Pucldm~ Equipment IVlamtenaulae 12,5°0 (2s3s,s1~> 1;-1,m~ p~5,oe2) 06,395 96?O_S 33,00? 66S - ^_,000,OOfI 13,206 - 59,601 °_,09U,T_S 33,00) tib? - S'_,S5ti ;1 Jib - - S2,S56 31076 - 59,601 ?,1L,5~2 1,1133 ti6 232,~~1 (521,9=11) 1°5,95' (6', ~15) 3,552,r,^;' b0,S3i,_,5'' ?,310,4SS 59,95b 0,055,095 60,315,352 2,#56,005 22,561 15 Petiree PEF9 i-i.. ~1 t1. ~~.,,... C,.a.. F,,,..a T..F~1 ?SUr93`} 301,591 1,706,5'S -3,51 325,9{0 Fn~Frq ~nl col on,o ,Ie - 360,255 615,000 - 615,000 nl,ili lil _ 4QlA Ih (11,5) 301,591 (1,965,0"0 li 0,^9q ?,000,Oi10 13,206 ~,19Q,005 11{, 532 11,532 i1~S I^~ 1111~S1 ';ill A01 lilC11 )Cl 11,027 (2,6~2,i~0) c~{,#59,23 202 (2,;}U,955) 6~,SIiti„';; 1SS City of Dublin Combining Statement of Cash Flows Internal Service Funds For the year ended June 30, 2011 CASH FLOWS FP.Obf OPEP.ATING ACTIN"ITIES: peceipts from other ftu,ds Pa~-n,ents to suppliers and seri-ice pro~-iders O Cher reaenues Net cash provided (used) by operating activities G-1SH FLOWS FP.Ob4 NONCAPITAL FINANCING ACTIVITIES Pa~-ments from other ftu,ds Net cash provided (used) for noncapital financing activities CASH FLOWS FP.OM CAPITAL AND PELATED FINANCING ACTIVITIES: Sales of propert3- Cap~r,l assets Netcash provided(used)forcapital and related financing activities CASH FLOWS FP.OM INVESTING ACTI\'ITIES: Interest recei~-ed Net cash provided (used)for investing activities Net increase (decrease) in cash and cash equivalents CASH AND EQUIP"ALENTS: Pe~ll,1,11,iP~ of Leta End of i-ear FECONCILIATION OF OPEFATING INCOIv1E (LOSS) TO NET CASH PP.OV"IDED EY OPEP STING ACTI\"ITIES: Operating income (loss) =ldjustntents to recrn,cile operating income (loss) to cash flows from operahn~ achy°ihes: Depreciation Net effect of cl,m,~es in: Aacotu,ts recei~-ahle Frepaid items ~a'otll,ts pa~-aUle OPEP Ohllgation Net cash provided (used) by operating activities V'ehi,,le Ruildn,a Roun~ment l~fan,tenarn,e (3,5#6) - (11,082) (350,352) _ _ _ ~ 499 3(9,120 13_,721 315,091 (S5,1S5) _,000,OOti 13, 200 - - (159,90') (32,850) (95,_S3) (1#0,701) (8_,556) (95,_;'3) X6,395 96,°'_8 ._3,009 66 X6,395 96,28 ;;,1109 66' _65,820 ~,1~6,59^ __3,~1_~ (8~,~98) 2,8?',935 6,~5~,~?1 ^_,011,10 93,6U~ `~ 3,U91„'55 $ S,6U1,U6~ $ '',20~{,83~ `~ 8,806 '~ 1°?,8°0 `~ (°-,5. S,S~{2) `~ 1'~{,92~ '~ (n8,09°) lrh,^56 ? 608,563 15',519 - - - - ll, °2~0) _ _ l12 ^CIFI !CI i1 ~i 11 156 Retiree PEPS Health Care Side FtuZd Total $ 280,034 ~ 301,~91 ~ 1,:06,5°n (#°_3,259) - (815,239) 323,541 - 3'5,940 18U,31i 301,891 1,21#, 2SU - (301,591) 1,b9S, 109 - (301,891) 1,698,109 - - L,2U6 - - (324,S3U) - - 176,'99 156, ^~~~~ 18016 - ,°n4,35S 236 - 11,38° ti56 ~; 180,55°_ ~; - ~ 14,14;`,014 (ii,42s> ~ 3ois9i ~ ~i,9cs,6'4> - 3,00,338 - - U,24iq - - ~io,o4u> 191,'41 - 191,°41 $ 180,316 $ 301,891 '~ 1,'?14,280 15i Tlris page intentionally left blank. 158 AGENCY FUND Agency Funds are used to account for assets held by the City in a fiduciary capacity for individuals, governmental entities and others. These fronds carry out the specifications of trust indentures, ordinance or other regulations. Dublin Bonlez~ard Extension Assessment District Fund - To account for the special assessment established to fund the improvements to Dublin Boulevard. Associated Community Action Program Fnnd -This frond 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, u1 social services related programs serving Alameda County commwnities. Geologic Hazard Abatement Districts Fund -Two districts were formed vender provisions in the California Public Resource Code, which establishes in section 25670 that a District is a political subdivision of the State and is not an agency or instrumentality of a local agency. The City acts as a trustee of the funds collected and may contractually provide or arrange for services paid for by the District. Fiscal Year 2008-2009 was the first vear that tax roll assessments were levied by the Districts. Fallon Village Geologic Hazard Abatement District -This assessment district was established in 2007, in accordance with a condition of approval for the Fallon Village development project. The District was formed to provide a mechanism for ongoing maintenance of open space areas within the development. Tlne boundary of this assessment district encompasses approximately 175 acres of land, located generally east of Fallon Road. Schaefer Ranch Geologic Hazard Abatement District -This assessment district was established in 2006, in accordance with a condition of approval for the Fallon Village development project. Tlne 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 bowndary of the City limits north of Interstate 580, and south of the unincorporated area of Alameda County. 15y City of Dublin Statement of Changes in Net Assets Agency Fund For the fiscal year ended June 30, 2011 Dublin Boulevard Extension Assessment District Assets: Cash zmd ulvestuients Pestricted cash and investments Interest Receivable Total assets Liabilities: Accotults Payable Due to bondholders Total liabilities Associated Conununitp Action Program Assets: Cash aril elves tuients Interest Peceivable Total assets Liabilities: Accotmts Parable Due to trustee Total liabilities Fallon ~'illaee Geoloeical Hazardous Abatement District Assets: Cash zmdulvestuients Total assets Liabilities: Accomlts Payable Due to trustee Total liabilities Schaefer Ranch Geological Hazardous Abatement District assets: Cash zmd ulvestuients Interest Peceivable Total assets Liabilities: Accomlts Parable Due to trustee Total liabilities Balance Balance Jt,1~ 1, 2010 Additions Deletions Jtme 30, 2011 $ 215,;25 $ 2~9,~29 $ (225,390) $ ?;6,367 16,500 - - 161,500 $ 379,828 $ 219,129 $ (228,390) $ X00,867 $ - $ 226,721 $ (226,651) $ ~3 Balance Balance Jt,1~ 1, 2010 Additions Deletions Jtue 30, 2011 $ - $ 1,205,906 $ (150,676) $ 755,230 - 1,U55,000 (1,579,615) 75,355 $ - $ 2,863,906 $ (2,030,291) $ 533,615 ~ - ~ 193,932 ~ (153,575) ~ 10351 - 2,369,97 (1,576,713) 79 ;261 $ 2,863,906 $ (2,030,291) $ 533,615 Balance Balance June 30, 2010 Additions Deletions Jtme 30, 2011 13,222 113,919 (2,556) 151,555 ~ - ~ x,791 ~ (2,556) ~ 205 X3,222 111,155 - 151,377 $ 113,99 $ (2,586) $ 151,555 Balance Balance Jtme 30, '2010 Additions Deletions Jtme 30, 2011 110,111 1'0,505 (2,500) 275,152 $ - $ 2,79 ~; (2,556) $ 2os 111,033 165,011 (803) 278,21 ~ 17o,sos ~ (3,3s9) ~ 27s,~s2 160 STATISTICAL SECTION (Unaudited) This part of tlne City of Dublin's comprehensive annual financial report presents detailed information as a context for understandung what the unformation un the financial statements, note disclosures and required supplementary information says about the government's overall financial health. Contents Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well being have changed over time. Revenue Capacity These schedules contain innformation to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity These schedules present itnfornnation to help the reader assess the affordability of the government's current levels of outstanditng debt and the government's ability to issue additional debt in the future. Demographic and Econonnic hnfornnation These schedules offer demographic and economic >lndicators to help the reader understand the environment within which the government's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader wnderstand how the information iln tlne government's f>nnancial report relates to the services the government provides and the activities it performs. Zh1 Tlris page intentionally left blank. 162 City of Dublin General Governmental Activities Tax Revenues by Source and Governmental Activities Tax Revenues by Source Last Ten Fiscal Years Fiscal Year Property Transient Ended Property Sales Franchise Transfer Occupancy June 30 Tax Tax Tax Tax Tax Total 2002 8,885,812 13,093,676 1,385,816 ~3~,832 810,220 $2,610,356 2003 10,12,650 13,573,607 1,39,953 379,089 717,083 $26,207,382 2011 11,22,308 1,297,705 1,505,35 571,361 66-1,309 $28,61,118 2005 1,167,079 1~,517,~65 1,559,900 831,003 663,632 $31,739,079 2006 16,891,670 1,807,1159 1,789,356 690,~0~ 727,612 `~3~,906,101 2007 20,266,216 1~,~58,912 2,111,281 596,533 800,773 $38,233,715 2008 22,229,039 1~,68~,091 2,221,930 X93,175 789,396 $~0,~17,631 20119 23,306,302 12,~2~,5~1 2,180,86 25,022 577,057 $38,72,768 2010 22,286,2119 12,581,879 2,271,57 372,66 557,000 $38,069,308 2011 21,918,~8~ 12,969,119 2,639,58 X75,199 683,732 $38,686,118 Date Source: City of Dublin Administrative Services Department Notes: The City experienced a dramatic decline in Transient Occupancy Taxes following the September 11, 2001 national tragedy and the economy down turn that occurred in the San Francisco Bav Area during 2001-2005. The City has experienced significnlt growth in other types of hues due to significant residential and conunerci<~1 growth that had oa,urred during 2006-2007, and 2007-2008. 163 City of Dublin Net Assets by Component Last Ten Fiscal Years (accrual basis of accounting) 2002 Zoos 200 2005 2006 hTll17k1T1' ~O~'eT1uIlPn t: C,O~'eTnlIlental aCt1C1t1eS: Ins ested in capital assets, net of related dept S X2,960,899 $ 61,016,62 $ 80,050,710 $ 383,667,187 $ 387,888,13 Restricted ~~ 339,073 3,110,132 37,55,125 ~5,288,~68 ~8,~8Q~63 Unrestricted X5,579,288 50,13,267 5Q9~3,803 52,176,~~0 57,766,785 Total prhnarS~ government $ 131,879,260 $ 1~5,5~0,0~1 $ 168,~~9,638 $ X81,132,095 $ ~9~,135,391 Datl Source: City of Dublin Administrative Services Department Notes: The City of Dutlnl nnplemented GASB3~ for the fiscal rear ended Tune 30, 2002. Information prior to the implementation of GASB3~ is not available. The signific~mt nlcrease hi Capital Assets hi Fiscal Year 200-2005 is due to a retroactive valuation recorded for the Citz's existing nlfrastructure hi accordance ln~ith GASB 3-l. 16~ 2007 2008 2009 2010 2011 $ 399,631,07 $ X11,619,671 $ ~23,~7~,38~ $ X36,857,107 ~ X33,779,703 ~5,6~7,928 ~8,572,719 36,906,687 25,00~,38~ 21,53,867 61,789,687 68,56,077 66,597,197 70,203,71 76,303,907 $ 507,069,022 $ 528,6~8,~67 $ 526,978,268 $ 532,06,962 $ 531,537,77 165 City of Dublin Changes in Net Assets Last Ten Fiscal Years (accrual basis of accounting) Fiscal Ye u 2002 2003 200 2005 2006 Expenses: Governmenhil acfieihes: General government $ -I,658,653 $ 6,135,3 $ 6,258,65 $ 3,031,581 $ -I,9-I0,586 PublicsafeK 12,~~9,573 1,026,216 17,135,716 19,07,262 20,31,535 Highwa~-s and streets 5,277,778 15,187,872 939,260 19,810,590 13,89,865 HealHrandi~-elfare 1,193,52 1,39,228 3,755,56 1,722,2 1,887,17 Culhu~e and leisure sei~-ices 3,901,126 x,730,-Ei0 1,603,~9~ 8,95~,~95 10,07,29 ConununiK deg elopment ~,557,63~ 5,33~,6~6 6,113,171 7,210,558 8,553,887 Total governmental acH~-ides 32,038,306 -16,763,736 35,835,850 59,826,710 59,665,529 Progr~mt revenues: Goy ernuientrl actin hies: C17argeS IOT SeT\7l'eS: General government 202,732 202,330 2,603 5,198 ~,Oll Publicsafety- 913,612 1,073,15 851,86 1,197,925 1,270,233 Hi~h~a-a}sand sheets 28,021 25,609 2,321,73 2,51,377 2,167,70 Health and i~relfare 978,99 1,033,317 1,558,930 1,51,361 ? 092,566 Culhu~e and leisure services 88,701 1,009,572 1,252,866 1,617,013 1,751,965 Conununit5-de~elopment x,80.3,099 5,182,361 6,135,027 6,969,366 6,629,383 Operating grants and conhibuhons 1,503,109 1,82,388 239,09-1 169,906 238,053 Capital grants and conhibuhons 23,150,710 19,~2~,093 15,36-1,732 X2,585,906 18,900,-126 Total goy ernmental achrities 39 ~28,~83 29,77,815 27,726,589 56,538,052 33,05,377 Net revenues (expenses): $ 390,177 $ (16,988,921) $ (8,109,261) $ (3 288,658) $ (26,611,152) General rep enues and ohrer changes in net assets: Goy-ernnrental achy-ihes: Taxes: Propertc- Nixes 9,~~7,5-1~ 10,783,-11~ 11,22,308 1,167,079 16,891,670 Sales tax L,813,111 13,193,-107 13,90,263 1,152,987 1,363,863 Other taxes 2,630,868 2,~91,L5 2,865,226 3,181,939 3,3~3,9~3 Motors elude htix, unreshicted 1,9-10,31 2,072,~~0 1,682,152 X13,075 856,766 In~eshnentinconre,nnreshicted 2,127,156 1,71Q903 799,008 2,70~,6~7 2,505,911 Ohher general rem enues 511,652 398,13 309,901 199,2 3 280,386 Total governmental acH~-ides 29,70,672 30,(x19,702 31,018,858 3,818,960 38,2-12,539 Ckmges in net assets $ 29,860,89 $ 13,660,781 $ 22,909,597 $ 31,530,302 $ 11,631,387 Data Source: CiK of Dublin Adnrinishati~ e Sei~ ices Deparhnent Notes: The CiK of Dublin implemented GASB3~ for Hre fiscal year ended June 30, 2002. Informafion prior to the implenrenhafion of GASB3~ is not availab le. 166 Fiscal Year 2007 2008 2009 2010 2011 $ 8,866,758 $ 7,790,286 $ 8,721,545 $ 8,396,199 $ 9,322,322 X2,306,240 23,282,634 23,88QO35 23,797,696 24,413,496 17,18?,208 20,196,496 20,368,655 15,969,371 10,142,946 1,816,800 1,689,353 1,869,428 3,615,077 12,749,042 14,080,040 12,200,759 11,50,136 10,757,355 9,304,429 11,157,417 8,276,993 7,175,272 5,1L,469 5,482,552 75,409,463 73,436,521 73,578,671 67,645,167 71,414,787 208,247 216,334 215,711 219,386 225,109 x,284,955 1,301,328 1,545,935 1,600,890 1,821,404 745,727 13,794 598,542 8,078,369 450,937 x,483,619 3,301,877 3,050,719 2,79$092 x,874,952 1,508,752 1,722,627 1,719,501 2,101,867 2,214,407 9,432,854 5,599,417 4,720,21 3,775,102 5,546,417 x,813,079 x,747,497 2,245,945 2,229,043 x,220,247 25,973,730 37,3y3,430 14,599,068 L,254,443 15,745,614 45,45Q963 52,296,804 28,695,642 33,057,192 31,099,087 $ (29,958,500) $ (21,139,717) $ (44,883,029) $ (34,590,975) $ (40,315,700) 20,266,216 22,229,039 23,311,587 22,287,783 21,918,484 14,025,869 14,225,661 12, 832,417 12,183,267 12,969,119 3,508,587 3,504,501 2,180,846 3,201,219 3,798,515 261,276 197,245 160,242 141,221 250,974 4,053,187 4,399,908 4,266,601 75$016 536,047 1,109,734 1,20? 074 461,137 1,106,103 1,079,419 x,24,869 45,758,428 43,212,830 39,677,669 40,552,558 $ 13,266,369 $ 24,618,711 $ (1,670,199) $ 5,086,694 $ 236,858 167 City of Dublin Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2002 2003 2004 2005 2006 General Flmd Resel~c ed $ 75,221 $ 529,511 $ 1,896,575 $ 2,275,433 $ 2,050,675 Unresel~ ed, desiglnted tor: Add"anl'e t0 TVTD w. BART Statloll l'Oll trlbllhOn - - - - - Affordable Hrnising 626,360 - 1,000,000 1,000,000 1,000,000 Authorized expendihaes 27,545,240 33,665,113 32,581,755 32,971,221 3R,S60,039 Capihlliulpro~ements 39,175,619 5,059,385 5,222,723 41,239,100 5,955,440 Cash Flow & Operation Smbilit< - - - - - Cahlshophic Loss & Business Recovery - - - - - Capital Iuipro, ements Projects Carp o,°er - - - - - ~'Olllpellsated AbsenCPS - - - - - Econouuc UncertainK 1,369,133 1,651,965 2,719,008 ? 970,721 2,970,720 Emergency Coumuulicahrnt Sestem - - - - - Fire Retiree Medical - - - - - hux~yahrnt & New C>l,porhulities - - - - - hlvestuient Marlcet Value Adjustment - - - - - Operahon Carllroyer - - - - - Sel~-ice ContimuK Obligation - - - - - Unresel~ ed, tmdesi~tated - - - - - Non-Spendable - - - - - Reshicted - - - - - COllmatted - - - - - ASSlglled - - - - - Uuasslgued - - - - - Totalgeneralhmd $ 65,791,573 $ 43,936,274 $ 46,420,091 $ 50,456,475 $ 50,896,877 All Other Governmental Flmds Resel~c ed 4.1,279,073 34,665,390 37,395,1?5 44,94$465 45,140,461 IJllreserC"ed, de5lglla ted, TepOT ted lll: SpeClal Teyelllle ILllldS Capital projects hinds Undesignated - (1,075,338) (1,510,979) (2,202,259) (1,893,598) Non-Spendable - - - - - Reshicted - - - - - COllmatted - - - - - ASSlglled - - - - - IJ1laSSlglled - - - - - Total all other governmental hinds $ 43,279,073 $ 33,590,052 $ 35,554,146 $ 42,746,179 $ 46,246,569 Total All Goyenmiental Flmds $ 11?,070,646 $ 77,526,326 $ £2,004,237 $ 123,202,654 $ 97,143,146 Data Solace: Cit< of Dublin Aduuzlishahye Services Department Note: All Other Goyernmenhll Fmxls includes the Cit_<'s Major and Non Major Capital Project and Special Revenue Flmds, excluding the General Flmd. hi FY2011 the Cite- implemented GASB No. 54 -the new Flmd Balance Reportitlg and Goyerlmlenhll Flmd Type Defiluhons. This Statement establishes the definifions for new cltegoriesfor reporting hind balance and revises the defilufions for goyernmenhll hind tc pes. As a result rive new comprntents of hind balance were established: Non-Spendable, Reshicted, Conmutted, Assigned ,and Unassigned. Plior to F12011, the Fmtd Balances were reported as Resel~ ed and Umesel~c ed Flmd Balances. Post FY2010, the Rese1~ ed Fund Balances jnrere ha ther categorized as Nrnt-Spendable, Reshicted and Conmutted and the Unresel~ ed Fmxl Balances were classified as Assi~nted and Unassigned. 16s 2007 2003 2009 2010 2011 $ 5,711,912 $ 5,623,011 $ 5,313,610 $ 5,922,116 $ - - - - 1,000,000 - 1,000,000 1,000,000 1,000,000 1,000,000 - 11,325,550 12,151,292 31,171,209 3,960 - 1,255,539 S,S51,331 11,019,175 7,391,OSS - - - - 3,560,000 - - - - s,12o,000 - - - - 203,501 - - 711,011 791,552 502,311 - 2,970,722 2,970,722 5,865,517 5,SCiS,517 - - - 210,000 1,000,000 - - 500,000 750,000 1,500,000 - - - - 13,000,000 - - 1,505,90(1 2,331,061 1,516,569 - - - 301,571 171,100 - - - - 1,35Q000 - - - - - 1,096,765 - - - - 27,593,755 - - - - 17,107,053 - - - - 11,715,655 $ 55,299,753 $ 63,112,309 $ 62,123,355 $ 61,012,525 $ 61,113,261 13,155,016 50,759,119 31,570,111 25,001,351 - (1,791,762) (1,537,021) (1,511,336) (3,165,929) - - - - - 21,153,5(17 - - - - (1,735,955) $ 11,693,251 $ 13,952,395 $ 32,729,075 $ 21,335,15ri $ 19,717,579 $ 99,993,037 $ 1L,3(i1,707 $ 91,552,136 $ 52,515,253 $ 53,5(11,110 169 City of Dublin Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Pevenues: Property taxes Taxes other than property hltergovernment~l Licenses and permits Chtu'ges for services hlvestment income Use of property Fines and forfeitures Developer tees Special assessments Other revenues Total revenues Expenditures Current: General government Public safety Highways and sheets Health and welfare Culture and leisure services Community development Capital outlay: General Health and welfare Community improvements Pzu'ks S h'ee is Debt service: Principal Total expenditures Excess (delicience of re~~enues o~~er (under) expenditures Other fin~ZCing sources (uses): Transfers in Transfers out To tal o ther financing sources (uses) Net change in fund balances Debt service as a percentage of noncapitel expenditures Piscal Year 2002 2003 2001 2005 $ 8,885,812 $ 10,112,6511 $ 11,122,308 11,167,079 15, 650, 789 16, 061, 732 17, 038, 810 17, 572, 000 1,702,126 11,112,577 1,912,167 3,312,079 x,327,251 2,121,885 3,090,992 8,520,111 5,3311,051 5,680,902 5,789,970 6,623,303 3,713,115 2,709,159 857,731 2,918,612 85,937 139,019 130,711 125,835 267,211 271,281 272,153 292,658 19, 685,682 10,195, 565 13,155,271 11, 361, 337 131,561 501,121 593,201 711,100 526,716 672,895 1,152,096 951,919 61,636,557 60,215,392 58,715,116 61,622,093 3,929, 919 1, 363,211 6,193,881 6,535,108 12,523,197 13,918,110 17,222,501 19,163,929 1,516,317 1,850,911 2,072,806 2,272,810 1,196,157 1,352,083 3,762,260 1,731,787 1,012,730 1,611,561 5,098,102 5,377,131 1,678,311 5,399,618 6,363,727 7,101,619 8,900,230 12,571,726 2,170,910 1,250,772 353,531 178,309 731,113 162,751 226,110 2,370,369 5,125,790 9,237,126 6,925,150 18,315,206 7,015,878 2,828,616 251,001 - - - 11, 513, 319 65, 291, 200 56, 089, 968 56, 267, 752 17,093,238 (5,078,808) 2,655,178 8,351,311 16,785 18,580 21,905 1,336,275 (16,785) (18,580) (21,905) (1,336,275) $ 17,093,238 $ (5,078,808) $ 2,655,178 $ 8,351,311 0.9% 0.0% 0.0% 0.0% Date Source: City of Dublin Adminish'ative Services Deparhnent 170 Fi5ca1 Year 2006 2007 2008 2009 2010 2011 16,891,670 20,266,213 22,229,039 23,306,302 22,286,209 22,067,07 18, 01~, X31 17, 967,99 18,188, 593 15, ~36,~66 15, 783,099 17, 210,97 x,593,336 2,85,936 3,~31,31~ 2,393,153 7,951,237 3,96,271 3,12,223 2,572,069 1,78~,6~ 1,623,029 2,260,36-~ 2,752,78 7,090,105 9,~76,98~ 8,101,935 7,759,628 7,100,03 8,7~3,~60 ~,859,~33 5,8~0,9~9 6,101,736 5,597,303 1,75,308 952,819 123,15 203,20 335,151 989,081 1,~91,~13 978,62 30,336 32,098 360,96 318,737 312,778 303,595 17,018,27 8,618,271 18,226,01 1,875,81 x,387,339 9,390,001 65,230 716,1~~ 797,520 826,717 868,38 90,739 826,715 960,53 2,~97,2~9 3,312,77 1,778,77 x,135,091 69,5,907 69,809,937 82,053,718 63,39,031 65,69,975 71,385,387 x,983,006 5,619,088 5,590,27 6,07,115 8,957,7~~ 7,935,07 20,52,375 22,18,312 23,629,95 23,951,223 2~,2~1,160 2~,5~6,~56 x,536,127 2,726,599 2,719,532 3,168,513 2,985,311 3,030,50 1, 906, 950 1, 626,197 1, 706, 918 1, 888,631 3, 653,297 12, 775, 536 5,98,563 6,87,596 7,207,896 7,621,663 7,267,805 7,223,808 8,199,933 8,173,711 8,335,105 7,36,651 5,300,211 5,609,603 666,160 377,026 X11,293 x,221,956 7~2,75~ 599,965 - 75, 526 - - - - 838,618 95,672 218,058 68,236 82,333 328,18 10,189,87 10,711,807 8,820,229 9,09,692 10,706,350 3,809,723 7,102,50 5,532,110 11,02,816 13,72,919 13,762,167 x,513,072 62,913,669 63,960,6~~ 69,682,08 77,8-x,599 77,699,132 70,372,528 6,631,238 5,89,293 12,371,670 (1~,0~5,568) (12,00,157) 1,012,859 21,789 90,399 77,528 26,232 25,777,10 9,163,360 (21,789) (90,399) (77,528) (26,232) (25,777,10) (9,163,360) $ 6,631,238 $ 5,89,293 $ 12,371,670 $ (1~,0~5,568) $ (12,00,157) $ 1,012,859 0.0°% 0.0% 0.0% 0.0% 0.0% 0.0% 171 City of Dublin Assessed Value and Estirnated Actual Value of Taxable Property Last Ten Fiscal Years Fiscal Cit< Wide Year Taxable Avg Total Ended Residential Conmiercial hxlnstiial Unseciued/ Less: Assessed Direct Tax Jiute 30 Property Properti Property Other Property Exemptirnls Value Pate 2002 2,T37,~35,709 653,52S,S07 1~1,~35,75~ 556,965,26 (6,396,516) 3,72,977,715 0?39S% 2003 2,525,71),751 577,06),998 10,636,627 53~,~77,7~0 (69,95,931) ~,305,~05,155 0.239Sgo 200 3,233,556,90 )9$908,661 17,997,335 561,725,805 (70,S91,OOS) x,571,327,253 0.2397% 2005 3,730,-12,115 1,032,552,391 15,755,385 (162,(159,500 (72,612,237) 5,507,752,15 0.2397°0 2006 x,520,222,157 1,052,701,35 162,152,395 652,279,7SS (77,055,570) 6,510,300,211 0?390% 2007 5,3-15,937,692 1,0(15,813,29-1 1(11,909,56(1 873,737,252 (50,27,175) 7,370,123,956 0.2387°0 2005 5,570,526,565 1,112,537,055 171,673,012 1,072,73,321 (7S,1SS,S99) 5,1~9,552,05~ 0.2385% 2009 6,203,330,781 1,2~1,301,66~ 198,OS2,7~6 1,032,~~9,~57 (36,75,516) 5,635,656,162 0.2355 0 2010 5,S6S,~SS,395 1,326,51,267 212,939,326 953,26,713 09,573,361) 5,3~1,~62,3~0 0.2386 0 2011 5,967,980,343 1285,352,521 209,573,11 8~3,(i56,092 (115,575,189) 8,190,77,205 0.2356 0 Assessed Value of Taxable Property $10.0 $9.0 $8.0 o $7.0 _ $6.0 m c $5.0 m o $3.0 ~~ Q k;. $2.0 ti\ $1.0 $0.0 ti~~~ ti~~~ ti~~~ ti~~~ ti~~6 ti~~~ ti~~~ ti~~~ ti~^o ti~^^ Fiscal Years Data Soiuce: HDL Coren & Cone and Alameda Comin Assessor 2009 10 Combined Tax Rolls Notes: 1) hi 1978 the ~roters of the State of Califonua passed Proposition 13 which linuted properK taxes to a total maxinumi rate of 1 0 based upon the assessed value of the properK behl~ assessed. Each ~ ear, the assessed ~-slue of propertc may be increased by an "inflation factor" (liuuted to a maxinumi nlcrease of 24~). With few exceptions, properK is rntly reassessed at the time fltatitis sold to a new owner. At that point, the new assessed valve is reassessed at the piuchase price of the propertc sold. 2) The assessed aaluation data shown above represents the only data ciurenth avaflable ~~~ith respect to the actiial market valve of taxable proper K. 3) The CiK-Tnride Direct Tax Rate is an average, the actiial to rate for each properK varies accordu1g to its tax rate area. Tlus av erage tax rate is net of State Shifts of local properK tax revenue to Education and net of adritin fees. 172 City of Dublin Direct and Overlapping Property Tax Rates (Rate per $100 of assessed value) Last Ten Fiscal Years 2001 02 2002 03 2003 0~ 200 O5 2005 O6 2006 07 20117 03 2008 09 2009 10 2010 11 Basic Le~-s- (1) L00000 1.00000 L00000 L00000 1.00000 1.00000 L00000 1.00000 1.00000 1.00000 B~} Area RNpid Transit 0.00000 0.00000 0.00000 0.00000 O.OO~SO 0.00500 0.00760 0.00900 0.00570 0.00310 Castro Valles- Unified School Bonds 0.03550 0.0980 0.05610 0.05320 0.07180 0.08110 0.09720 0.09690 0.10230 0.1000 Chabot -Las Positas ConununiK College Bonds 0.00000 000000 0.00000 0.01360 0.01580 0.01590 0.0160 0.01830 0.01950 0.02110 Dublin Uiuried Bonds lA & B 0.01510 0.03760 00290 0.03990 0.08170 0.08850 008500 0.07320 0.08160 0.10110 East Bag Regional Park 0.00720 0.00650 0.00570 0.00570 0.00570 0.00850 0.00800 0.01000 0.01080 0.00890 Flood Zone 7 State Water Bonds 0.01570 001580 0.01-150 0.0110 001300 0.01510 0.01500 0.01690 0.02030 0.02500 Lip-ermore vane- Joinr u~uriea School Bona 0.08200 0.09550 0.07930 o.m9ao 0.08~~00 0.06920 0.06260 0.06160 0.0670 0.06350 Tonal Direct & Ch erlapping Tax Rare 1.185511 1.211520 1.19850 1.208111 1.27580 1.28330 1.29180 1.28590 1.30760 1.32260 Total nirecr Rate (2) 0.23978 x2;997 0.23965 0.2;9(x1 0.23895 0.23865 0.2389 0.23592 0.23855 0.23859 C ih-'s Share of 140 Le~~- per Proposition 13 (3) 0?8177 0?8177 0?8177 0?8177 0?8177 0?8177 0?8177 0?8177 0?8177 0?8177 Source: HDL Corers Rc Cone and Alameda Counts- Assessor 200102 - 2010 11 Tax Rate Table Notes: (1) In 197$ California ~ oters passed Proposition 13 ss-hich sets tite properK tax rate at a 140 fixed amount This 140 is shared bs all taxing agencies for ss~hich the subject properK resides Hititin. In addition to Hte 1.00?o fired amount, properK oss-ners are charged taxes as a percenhage of assessed properK values for the pas went of ~roter appro~ ea bonds from ~ arious agencies. (2) Total Direct Rate is the s~-eighted a~ erage of all indi~ ideal direct rates. (3) Cits 's Share of 190 Lei t- is based on tite CiK's share of tite general liuxl tax rate area ss itit the largest net taxable ~ aloe ss ithin tite CiK. (~) Ch erlapping rates are titose of local and counK goy ernments that apply to properK oxsnters ssrititin tite CiK. Not all o~ erlapping rates apply to all city- properK ors°ners. (5) Total Direct Rate is the ssreighted a~ erage of all indite ideal direct rates applied by tite goy ernment preparing tixe stltistical section infornntion. (6) The CiK has different Tax Rate Areas (TRA) administered bs tite Counts- Tax Collector. The Cits's share of Properts Teix can ~ ars bs each TRA. 17~ City of Dublin Principal Property Taxpayers Current, And Nine Years Ago Zorn/oz Taxpayer (NumUer of Parcels) Hong Y. Lin c~ L. Hong & S. Chang Toll Califonua II LP DR Har~ton Bay Inc Bere Island Properhes I LLC Security Capital Pacific Trust RREEF American REIT Corporation California State Teachers Retirement System SHEA Homes P<u~k Sierra LLC Koll Dublin Corporate Center LP Trust NOIP Dublin LP Dublin Corporate Center LP Avalon at Dublin Station LP Bere Island Properties I LLC X800 Tassajara Road Aparhnents Tislun~ul Speyer Arcl~stone Smith Emerald DR Horton Bay h1c BIT Holdings Sixty-Three INC Kaiser Foundation Hospitals BTP ROF Jordan Ranch LLC 201011 Percent of Total Percent of Total Assessed Value Assessed Value Assessed Value Assessed Value 93,307,79 2.~8% 8,172,988 2.2~% 79,801,280 2.12% 72,000,000 1.91% 59, 9~8, ~8~ 1.59 °~ X9,0-(2,110 1.30% ~Ci,600,000 1.2~% ~5,192,O~Ci 120% X5,177, 756 1.20 X0,187,052 1.07% 103,000,000 1.26% 85,500, 000 1.0~ 8~,~06, 681 1.03 83,22~,1~2 1.02% 78,150,770 0.9590 77,368,29 0.9~% 73,781,83-~ 0.90% 71,208,09 0.87% 62,78~,~87 0.77% X9,352,629 0.60% $615,429,465 16.35% $768,776,386 9.38% Source: HDL Corers & Cone ~u1d Alameda County Assessor Combined T~uc Rolls 17~ City of Dublin Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Total Tax Ended Levy for June 30 Fiscal Year Total Collections to Date Percentane Anxnuit of Levy 2002 2003 200 2005 2006 2007 2005 2009 2010 2011 0 R O D 9,25,361 8,655,572 9~.9% 215,950 5,871,552 96.0?0 10,570,955 10,1~?650 91.2% ~li?,595 10,555,25 97.1% 11,571,969 11,526,609 9~.5% 31,556 11,855,95 99.9?0 12,7~1,d31 12,35,655 97.0% 25,157 12,599,52 95.9% 1,775,266 13,530,50 9L6'~b 25,535 13,78,955 933% 15,255,733 16,690,262 91.3% X12,151 17,1112,73 93.5% 20,279,567 15,100,067 59.3'~b 775,595 15,575,962 93.1% 2Q,6~7,610 18,58~,~96 90.0% 50,530 19,389,026 93.9% 19,516,650 17,66$557 59.2'~b 533,25 15,202,105 91.9% 19,355,329 17,SSQ057 92.2?o Not Available 17,550,057 92? % Collected within the Fiscal Year of the Levy Collected in Penentage Subsequent Anxnint of Levy Yeats Property Tax Collection - _ _. VOO~ VOO~ VOO~ VOO•J VOO~ VOO` VOO~ VOO~ VO^O /O~~ Fiscal Year Soiuce: Alameda Com1K Oftice of flte Auditor-Couholler Notes: 1) Total Lear includes Seciued, Unseciued, and Estimated Uiutai~ ProperK Taxes 2) Prior to FY2011 Total Collection includes Seciued, Unseciued, and Estiuate Uiutai~ ~Supplenmetal Propert_<- Taxes (less Com1K's adutiiushatiae cost) and Education Reaenue Augmentation Fiord (tales shifted to school dishicts) 3) Post FY2010 Total Collection ntcludes Seciued, Unseciued, and Estimate Unitai~ /Supplenmehil Propert_c Taxes (prior to adjusting for Crnmn 's adutiiushatiae cost) and Education Peaenue Augmentation Fiord (taxes shifted to school dishicts) 175 City of Dublin Direct and Overlapping Debt June 30, 2011 Total Property Tax Assessed Value of Taxable Property OVERLAPPING DEBT PEPAID WITH PROPERTY TAXES Bav Area Rapid Transit District Chabot-Las Positas Conununit~ College District Dubinl Ton1t Unified School District East Bav Regirnlal Parl: District C itv of Dubinl 1915 Act Bonds California Shltewide Conununities Deaelopment Authority 1915 Act Bonds To hl overlappnlg debt repaid ~~~ith properly taxes OVERLAPPING OTHER DEBT Alameda County- General Fund Obligations Alameda County Pension Obligations Alameda -Contra Costs Transit Dishict Certificates of Participation C habot-Las Positas Conununitt College District General Fund Obligations Total Overlappnlg Other Debt COMBINED TOTAL DEBT $ 8,190,77,208 Percenhlge Ou tS'hmdmg Debt Apphc able t0 ESt llIlated Share OI 6/30/ 11 Crty OI Dublin Overlapping Debt $ X13,865,000 1.8820°io ~ 7,788,939 $ ~5~,819,320 10.6020% $ ~8,219,9~~ $ 195,200,908 99.9-19090 $ 195,101,356 $ 153,99Q000 2.9110% $ ~,~82,6~9 $ 385,000 100.000090 $ 385,000 $ 1,080,015 100.000090 $ 1,08Q015 $ 257,057,903 $ 711,512,000 -1.8560% $ 3,551,023 $ 15~,58~,7~1 x.8560°io ~ 7,506,635 $ 37,65,000 0.0670% $ 25,102 $ -1,95,000 10.602090 $ X76,560 $ X2,559,319 $ 299,617,222 RATIOS TO ASSESSED VALUATION: Direct Debt .........................................................................0.00% Total Drivel ~md Overlappnlg Tas and Assessment Debt...........3.1~% Combnled Tot11 Debt ..........................................................3.669b Source: California Municipal Statistics, Inc. Notes: 1) For debt repaid with property- Mixes, the percentage of overlappnlg debt applicable is estnnated usnlg taxable Assessed propertt- values. Applicable percentages were estnnated by determnlnlg the portion of another governmental unit's tlxable Assessed value that is withal the cit<-'s boundaries and dividnlg it by each unit's tot11 tlxable assessed value. 2) Overlappnlg govenunents are those that conlcide, genera115 , ~a~ithnl the geographic boundaries of the Cit~- 3) This schedule estnnates the portion of the outstandnlg debt of those overlappnlg govermnents that is borne by the residents and busnlesses of the City. This process recognizes that, when crnlsidernlg the City's abffity to issue and repay long-term debt, the entire debt burden borne by the residents rind busnlesses should be then alto Account However, this does not nnply that every tlxpa~-er is a resident, and therefore responsible for repavnlg the debt, of each overlappnlg govenunent. ~) Combnled Total Debt excludes tlx and revenue anticipation notes, enterprise revenue, mortgage revenue, tax allocation bonds, and non-bonded capital lease obligations. 176 T1iie }gage iuteutionnll i~ lift b1~u1~. 177 City of Dublin Legal Debt Margin Information Last Ten Fiscal Years 2002 Zoos 200 2005 Assessed valuation $ 3,72,977,718 $ ~,308,~05,185 $ x,871,327,283 $ 5,507,782,15 Add back exempted real property 6~,39Ci,81Ci 70,891,008 70,891,008 72,612,237 Totrl ~~ssessed valuation Conversion Patio Converted assessed valuation Debt limit percentage Deb t limi t Totrl net debt applicable to limit: General obligation bonds $ 3,789,37~,53~ $ x,379,296,193 $ ~,9~2,218,291 $ 5,580,39,391 25 `'~ 25 `'~ 25% 25 `'~ $ 9~7,3~3,63~ $ 1,09~,82~,0~8 $ 1,235,55,573 $ 1,395,098,598 15`'~ 15`'~ 15% 15`'~ $ 1~2,101,5~5 $ 16,223,607 $ 185,333,186 $ 209,26,790 Leg~~l debt margin $ 12,101,5-f5 $ 16,223,607 $ 185,333,186 $ 209,26,790 Tot~~l debt applicable to the limit ~~s a percentage of debt limit 0.0% 0.0% 0.0% 0.0% Source: City of Dublin Administrative Services Department Notes: 1. The Government Code of the State of California provides for a legal debt limit of 15% of gross ~~ssessed valuation. However, this provision was enacted when assessed valuation was based upon 1981-82 fiscal vear, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above retlect a conversion of ~~ssessed valuation data for each fiscal year li~om5% of market value. Effective with the current full valuation perspective to the 25°% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. 2. Excludes 1915 Act Bonds since they are not General Obligation Debt of the City of Dublin. 178 Fisrll Year 2006 2007 2008 2009 2010 2011 $ 6,310,300,211 $ 7,370,123,956 $ 8,1~9,582,05~ $ 8,638,686,162 $ 8,3~1,~62,3~0 $ 8,190,77,208 77,085,570 80,27,178 78,188,899 36,78,516 X9,873,361 115,875,189 $ 6,387,385,781 $ 7,~50,398,13~ $ 8,227,770,953 $ 8,675,16,678 $ 8,391,335,701 $ 8,306,622,397 25% 25% 25% 25% 25% 25% $ 1,596,8~6,~~5 $ 1,862,599,53 $ 2,056,92,738 $ 2,168,791,170 $ 2,097,833,925 $ 2,076,655,599 15% 15% 15% 15% 15% 159b $ 239,52Ci,9Ci7 $ 279,389,930 $ 308,5~1,~11 $ 325,318,675 $ 31,675,089 $ 311,~98,3~0 $ 239,52Ci,9Ci7 $ 279,389,930 $ 308,5~1,~11 $ 325,318,675 $ 31,675,089 $ 311,~9$3~0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 179 City of Dublin Demographic And Economic Statistics Last Ten Calendar Years Calendar Year Januart 1 2001 2002 2003 200 2005 2006 2007 2008 2009 2010 Litt- Population (1) 32,710 3,155 36,19 38,263 39,77 ~1,8~8 X3,563 X6,869 X7,953 X5,672 Personal Income (u1 Thousands) (?) 988,100 1,037,889 1,17,826 1,319,087 1,77,082 1,719,669 1,90,687 x,077,720 x,03-1,63 1,700,09 Per C apita Personal Income (2) ;0,189 3o,38s x1,713 3~,~7~ 37,L 7 X1,093 X3,723 ~-1,330 ~2,~26 3,823 Unemplo~ went Rate (') 2.80 ao ~.ooao ~.lo° 3.50 3.10° 60° 2.80 °o 3.70 qo 6.50 % 6.90 l~anl: lll S1Ze Of California Cities (1) 205 209 20~ 193 192 190 18~ 180 179 179 Sources: 1) HDL Coren & Cone~State of California Deparhnent of Fnlance: 2001-2009 populations are estnnated based on Census 2000. 2010 dare was adjusted teased on Census 2010. 2)HDL Coren & Cone~Bureau of Economic Anal xis, Personal Income and Per Capita Personal Income, Alameda County. 3) HDL Coren & Cone~Shlte of California Emplot-ment Deaelopment Deparhnent, Cit~-'s Annual Aeerage. City Population (1) a~ N_ C O c~ a 0 a 50, 000 45, 000 40, 000 35, 000 30, 000 25, 000 20, 000 ti~~~ ti~~~ ti~~~ ~~~~ ~~~~ ~~~~ ti~~~ Calendar Year 180 ti~~~ ti~~~ ti~~o City of Dublin Property Value, Construction And Banlc Deposits Last Ten Fiscal Years Tot~~l Number of Commercial Pesidenti<ll Fiscal Year Ended Building Permits Construction Value Consh~uction Value June 30 Issued (1) (1) (1) Bank Deposits (2) 2002 1015 63,76,079 123,19,627 900,670,000 2003 1157 ~6,~~8,163 178,361,169 980,20,300 200-f 115 18,575,621 22,563,776 ~88,3~3,000 21105 1275 56,81,612 283,817,52 566,~~1,000 2006 1199 96,389,75 207,862,999 915,006,000 2007 121 56,832,01 178,09~,88~ 985,835,000 2008 1333 18,256,381 59,6-X7,886 981,685,000 2009 1101 23,968,805 63,2~2,~18 1,09,869,000 21110 135 17,07,699 12,930,163 1,051,570,000 2011 171 ~0,005,12~ 165,32~,0~5 1,281,183,000 Source: 1) City of Dublin Community Development Deparhnent 2) Findley Reports, Inc B~u1k Deposits represents the amount of cash deposits held by financial institutions within the Citv ~uznually, Tan tlu~u Dec. $300 $250 c $200 ~ $150 ._. L `~ $100 O D $50 New Construction Value - Commercial vs Residential $0 O ~ 00 O ~ O~ LO ` LO ` LO ` LO 181 OcO O~ O`b 00 ~O '~~ ~O ~O ~O ~O ~O ~O Fiscal Year City of Dublin Principal Employers Current and prior Percentage of Nrmiber of Number of Total 2010 Employees Rutl~ina 21111 Employees Ranla~tg Employment 111nted Sta teS ~~OyeTlmlent LTmted StN teS C~OyeTlmrellt & Federal Correction htstitiite 2100 1 & Federal Correction htstitiite 2100 1 13.0!0 Zeiss Meditec S30 2 Zeiss Meditec 975 2 6.05 0 S~hase Corporation 730 3 Sybase Corporatirnl 710 3 x.01% Dublin Urutied School District 5S0 ~ Dublin Unified School District 675 ~ x.19 0 Micro Dental Laboratories 550 5 Micro Dental Laboratories 550 5 3.02% Cormt< Of Alallleda DSO 6 Corm tC of :~lallredH ~6rJ 6 2.59 0 Sateway 000 7 Sateway 000 7 2.OR% CitS' of Dublin 219 S Taleo 275 S 1.71 0 Franllin Templeton htyestrnents 200 9 CiK of Dahlia 201 9 1.25% Ayaya 1S0 10 Franldin Templetrnt htyestulents 200 10 1.20 0 Target Corporation 1S0 10 Soruce: Can of Dahlia Ecrntonuc Development Department. Note: Irrformation regardutg Prutcipal Employers for prior fiscal years was not available. 1S2 City of Dublin Full-time Equivalent City and Contract Government Employees by Function Last Ten Fiscal Years General government City- Manager Admilistrative Ser~'ices Central Services & Bufldilg M~magement Public Safety: Police Fire Disaster Preparedness TransportlHon Public Works Street Mailtenance Health and ~ti~elfare Environmentz~l Housing Waste Management Culture and leisure services Parls Crnnmunity Services Park Mailtenance Parls~Facilities M~magement Library Services Heritage 8z Culhtral Arts Conununity development Plamlilg & Bufldilg Economic Development Engmeermg Total 2002 2003 200 2005 2006 2007 2008 2009 2010 2011 5.50 5.50 5.75 6.00 7.17 6.25 6.50 6.50 6.00 6.00 10.00 10.00 11.00 11.50 11.50 11.50 12.00 L.00 11.50 11.50 3.71 3.60 3.65 3.~0 3.~3 3.75 3.51 3.52 3.18 3.32 52.50 55.00 5.00 5.00 57.00 59.00 61.00 61.00 61.00 59.00 30.98 X0.00 39.89 X0.89 ~Q.25 ~0?5 X0.75 X0.78 39.77 39.7 0.50 0.50 0.50 0.33 0.33 0.33 0.50 0.50 0.50 0.-16 6.50 6.50 6.50 6.50 6.50 7.50 8.50 8.50 6.~5 5.~5 5.55 7.60 9.00 9.~6 10.1 10.57 10.73 9.93 9.18 9.85 - - - - - - - - 2.50 2.50 1.00 1.00 1.00 1.75 1.75 1.75 1.75 2.90 3.20 3.00 - - - 0.33 0.33 0.33 0.33 1.33 0.33 0.33 12.50 12.50 13.00 1.00 1.00 1.00 15.50 16.00 16.60 15.60 7.60 7.79 8.-18 8.70 9.10 9.53 9.55 9.92 9.65 8.9~ 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 - 0.20 0.60 0.51 0.51 0.~8 0.~5 0.~3 0.39 0.~2 1.96 1.93 1.93 2.31 2.30 2.32 2.53 2.~9 2.~7 3.59 25.00 25.00 26.00 32.00 3.50 3390 32.50 27.10 19.05 19?5 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 1.50 13.00 1.00 13.00 13.35 13.35 13.35 13.35 12.35 9.00 8.00 179.30 19.12 197.30 208.03 215.16 217.81 222.5 218.75 20.27 200.5 Source: City of Dublil Admilistrative Services Deparhnent Note: Include Full Tine, Part Tine, Temporary zmd Contract Employ ees 183 City of Dublin Operating Indicators by Function Last Ten Fiscal Years Ftua tton Police: ( ells for Servxe Citttions Issued arrests Fire: Emergent; calls Inspections Suildulg Pl<u1 Peviews turd Consultations I'ub lit R"orks: &ke Path hfamtentulce (hours) Sheet 6tgn hfamtentulce (number of signs) Curb PanZting (linear feet) Peplace Sheet?sphalt (square feet) Street Sweeping (curb miles) Purls and Comtumir<- Services: I~fuseum ~'isth,rs ~fterschool Fecreation (partIaipants/daj-) Preschool Classes F'anc~tptults Youth Basketball League Parhaiptults Senior Center Average Dath-rlttendance Connntuntj- Development Pl ulnin} -~pplitations Building Pernnts Butlduzg Inspections Source: C its of Dublin 2002 2003 2004 2005 2006 200' 2008 2009 2010 ^_011 50,6E 52,705 49,379 48,4$S 46, 1~~` 41,300 41,65'' .,S,S ~ti3 4S, L'5 39,474 5,304 10,501 11,OS1 1Q911 10,595 11,071 11,765 7,OS( 10,101 9,023 1,418 1,376 1,614 1,ti31 2,11^_0 1,b6S 2,fL'1 1,620 1,556 1,624 1,°97 1,872 1,7°4 1,74° 1,771 1,"SO 1,978 1,969 1,99q o ~}~ 5,152 S,fL'1 4,951 ,,249 4,122 4,045 2,214 1,952 3,576 2,533 1,270 1,351 1,249 858 1,006 1,049 92' 511 474 49S 141 230 42S 7S3 726 5111 775 775 ti97 Ii03 211 ti43 3lIS 353 435 427 135 74 325 255 2,749 2,994 1,007 1,404 3,991 4,OOu 2,405 2,395 x,,607 5,4ti4 12,3^_0 5,500 3,000 7,500 7,950 L,S00 33,000 X9,000 40,000 5",000 4,59 5,111 5,371 x,656 5„'30 5,9°/ 1,1175 6,441 5,OS3 5,94 794 ;00 900 134 140 L'S 176 214 26S 445 476 536 97 111 110 56 7S 71 1,429 1,617 1,639 1e,492 °4,682 81,5'1 5011 L79 ,~~ 547 110 1 831 ;,534 1,350 LS 285 SSiI 149 59 1, 555 {,'244 2,140 ',2~5 2,040 ;,540 4,A80 15; 1S0 167 L'~i 2411 254 399 }112 0t!0 028 5SS 5711 591 ~ ~ _ 7111 130 185 1911 198 '06 53 55 64 62 v6 1,910 1 _3, 1,101 1,445 1,471 46,071 25,~it1° 1°;3t1~ S 933 11;305 1ST City of Dublin Capital Assets Statistics by Function Last Ten Fiscal Years 2002 2003 2001 2005 2006 20117 2008 2009 2010 2011 Fmtc lion Public Safett Police Stations 1 1 1 1 1 1 1 1 1 1 Fire Stafions 2 3 _~ , 3 ~ 3 ~ 3 3 Public c~rorls: Sheet Lights 2,500 2,872 2,958 3,69 3,752 3,912 x,193 x,079 x,526 x,526 Miles of Streets 65 81 Sl 81 81 100 93 103 105 113 Miles of Clubs 180 202 202 202 202 217 217 218 222 223 Trafric Siginals ~9 55 60 62 67 i5 79 81 85 85 CiKSheetTrees x,585 5,lOS 5,001 5,955 6,08 6,OS~ 6,080 6,99 7,05 7,18 Cit<- Landscape (acres) 33 38 38 ~3 ~5 ~5 05 ~5 57 57 Parks and recreation: Number of Conmuuut_c Facilities 5 7 7 7 7 7 7 7 7 7 Number of CiK Parl<s 9 11 11 11 11 11 16 16 16 18 Acres of Litt- Parls S~ 109 109 109 109 121 122 201 201 209 Acres of Open Space 107 122 122 126 L6 L6 L2 125 125 L5 Soiuce: Cit< of Dublin `The Sheet Lights count for FY2011 is the same as reported in FY20lll. Comparable dare is not ac ailable at flte tiule file report is prepared. 185 City of Dublin Top 25 Sales Tax Producers 2010-2011 BUSINESS NAME Alameda County Auction Alcostl Shell Arco AM/PM Mini Mart Bed Bath & Beyond Best Buy Carl Zeiss Ophthalmic System Dublin Chevron Dublin GMC Superstore/ Kia Dublin Honda Dublin Hvndai Dublin Nissan Dublin Tovotl Dublin Volkswagen Gravbar Elech'ic Co Lotves Marshall Old Navy Safeway Safeway Gas Sales S<u1t1 Pita Tail Food Service Stoneridge Cluysler Jeep T J M~L~X Target Toys P Us Video Only BUSINESS CATEGORY Used Motor Vehicle Dealer Service Stations Service Stations Home Fui7lishings Electronics/Appliance Stores Medical/Biotech Service Stations Motor Vehicle Dealer Motor Vehicle De~~ler Motor Vehicle De~~ler Motor Vehicle De~~ler Motor Vehicle De<~ler Motor Vehicle De~~ler Elech'ir<ll and Telecommunications Supply Chain Lumber/ Building Materials Family Apparel Family Apparel Grocery Store Liquor Service Stations Food Service Motor Vehicle Dealer Family Apparel Discount Dep~u'tlnent Store Speci<~lty Stores Elechronics/Appliance Stores Sales Taxes $20 -~ o $15 ~ $10 N L 0 $5 `Lod `Lo~~: `Lo~"~ `Lo~p~ `Look o~ro `Lo~'1' `LO~2 `LQ~~ `Lo~O Fiscal l~'ear Source: Hinderliter, de Lhunas & Associates, State Board of Equalization Notes: State Law does not allow disclosure of the top ten sales tax providers to the City Top producers listed in <~lphabetically order. Percent of Fiscal Year Total Paid by Top 25 Accounts = 57.8% 186 City of Dublin Miscellaneous Statistical Data June 30, 2011 General Date of Incorporation February 1, 1982 Form of Government Councils Manager Tot<~l Population (Estimated 1~1~2011 by State Deparhnent of Finance based on Census 2010 ~6,7~3 and included group qu~u~ters) Number of Pegistered Voters 20,618 Employees, City and Contract (Full Time Equivalent) 200 Area (Square Miles) 1.62 Parks and Recreation P<u~ks 18.00 Acres in Parks 208.9 Acres in Open Space 12.76 Public Education Elementary Schools 6 Middle Schools 2 High School 1 Continuation High School 1 Education Center 1 School Enrollment 6275 Police Protection Number of Shlfions 1 Police Personnel (Full Time Equivalent) 60 Fire Protection Number of Stltions 3 Fire Personnel (Full Time Equivalent) 38 Community Facilities Dublin Civic Center 1 Dublin Senior Center 1 Dublin Swim Center 1 Dublin Heritage Center 1 Dublin Public Libr~uw 1 Sh~ulnon Community Center 1 Emerald Glen Activity Center 1 Source: City of Dublin 187 SUMMARY -KEY INFORMATION COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2011 City Council Meeting January 17, 2012 Includes audited financial statements reviewed by Caporicci and Larson, Inc. , a Subsidiary of Marcum, LLP (C&L) 2. "Clean Opinion" based on testing Financial Statements fairly represent the City's financial position. 3. Information included in a CAFR exceeds the minimum amount of information required for a financial audit. 4. CAFR format will allow the City to apply for a Certificate of Achievement from the Government Finance Officers Association (GFOA). The goal is to provide financial information of the highest quality. In order to submit the report Staff obtained from GFOA a one month extension to the period for filing for recognition. 5. ORGANIZATION OF DRAFT REPORT i. Transmittal letter (pages i - v). (Provides a general overview of the components which make up the report. ii. O inion issued by the Independent Auditor (pages 1-2). iii. Management Discussion and Analysis (MD&A) Page 3 and continuing to page 18, is required by GFOA. Provides and overview of the financial activities, with a focus on significant trends, as well as major changes associated with the City's major funds (i.e. General Fund and Impact Fee funds). iv. Financial Statements A significant portion of the CAFR is comprised of financial statements and schedules for the various funds used to account for the City's revenue and expenditures. Pages 23 - 25, include a Government Wide Statement of Net Assets which is similar to financial statements presented by private corporations. It is important to keep in mind the unique nature of government services and what is reported as assets. For example, land dedicated for streets and parks, infrastructure, and public buildings are reported as part of the Non-current Assets retained by the City. This category is $434 million (81.6%) of Total Net Assets. These are not liquid assets available to fund programs or on-going activities. v. Statistical Section Pages 161 - 187 comprise the unaudited statistical section of the CAFR includes graphs of relevant historical data. 6. Fund Equity - A complete listing of both fund reserves and designations for all funds is shown on page 70 of the report. Page 1 of 2 ATTACHMENT 2 SUMMARY -KEY INFORMATION COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2011 City Council Meeting January 17, 2012 Nonspendable (Inherently nonspendable based on the form of the asset or a requirement to remain in tact) ^ Resources that, by their very nature, cannot be spent (e.g., prepaid rent, Inventory) ^ Resources that are not yet available for spending (e.g., long-term portion of loans receivable) ^ Resources externally restricted to a purpose narrower than the fund (Cemetery Endowment) Restricted (Net fund resources subject to externally enforceable legal restrictions) ^ Externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments. ^ Imposed by law through constitutional provisions or enabling legislation. ^ Note that there is no need for the limitation to be narrower than the purpose of the fund. ^ Examples would include special revenue funds which have a legal restriction imposed by external sources (e.g., grant funds, gas tax, impact fees, etc.) Committed (Self-imposed limitations based on formal action of the highest level of the governing body) ^ The action to commit funds must occur before the end of fiscal year. ^ Can only be changed by action of Governing body. ^ Examples in this category would be similar to designations made in the past by the City Council (e.g. the allocation of funds for a future Emerald Glen Aquatic Center scope change, Civic Center expansion etc. ) Assigned (A limitation based on intended use -authorization to assign may be delegated by the City Council - similar to designations expressing intent) ^ Intent would have to be established at either the highest level of decision making, or by a body (e.g., finance committee) or an official (i.e. City Manager) designated for that purpose. ^ It is proposed that the authority to calculate the assigned items be granted to the City Manager. Examples include: e.g. accrued leave, carry-over appropriations, etc. Unassigned (Available for any purpose and has not been restricted, committed, or assigned to specific purposes within the General Fund) 7. AUDIT RECOMMENDATIONS /DISCLOSURES - As part of the Audit Review the independent auditors can present recommendations for consideration by the City. The process allows the Auditors to disclose their observations on certain practices and policies, and allow Management to respond to the input. This year the Auditors did not identify any items that are required to be addressed. Page 2 of 2 ATTACHMENT 2 City of Dublin Dublin, California Auditors' Communication with Those Charged with Governance For the year ended Jirne 30, 2011 CL Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants ~":U ~Nxry~~L (;aporicci & Larson, Inc. n 5'ubsicliczry ofMczrcunz I,I,P Certified Public Accountants January 10, 2012 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin (City) for the year ended June 30, 2011, and have issued our report thereon dated January 10, 2012. Professional standards require that we provide you with the following information related to our audit. Our Responsibilities under U.S. Generally Accepted Auditing Standards and Government Auditing ~fnvirlnrrlc As stated in our engagement letter dated June 6, 2011, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. As part of our audit, we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed test of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. Planned Scope and Tinting of the Audit We performed the audit according to the planned scope and timing previously communicated to you. Significant Audit Findings Qir~alit~ative. Aspects of Acc~irnting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 The City adopted new accounting policies during FY2011 in connection with the implementation of the following new accounting standards: - GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions -This Statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. - GASB Statement No. 59, Financial Instruments Omnibus -This statement updates and improves existing standards regarding financial reporting of certain financial instruments and external investment pools. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly 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 estimates affecting the financial statements were: • Depreciable lives and estimated residual value of property and equipment • Pension plans (actuarial assumptions) • Postretirement benefits other than pensions • Compensated absences Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: • Summary of Significant Accounting Policies • Cash and Investments • Capital Assets • Pension Plan • Other Postemployment Benefits (OPEB) Plan • Commitments and Contingencies • Prior Period Adjustments To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 3 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 nusstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such nusstatements. In addition, none of the nusstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. M~an~agement Pc~resent~ations We have requested certain representations from management that are included in the management representation letter dated January 10, 2012. 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 accowltants. Other Airdit Findings ~r 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. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 4 Other information in Documents Containing Audited 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. This information is intended solely for the use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, ,~ ~' Caporicci & Larson, Inc. A Subsidary of Marcum LLP Certified Public Accountants San Francisco, California January 10, 2012 City of Dublin Alameda County Transportation Commission - Measure B Funds Dub~~n, Ca~~f orn~a Financial Statements and independent Auditors' Reports For the year ended June 30, 20~~ CAL Caporicci & Larsoa~, Inc. el Sttbsldiary of Mttrctant I.I.1' Certified Public Accattittctttts 1'isis page intentionatl~ left blank City off' Dublin Alameda County Transportafion Commission - Measure B Funds Table of Contents Pale Independent Auditors' Report ..................................................................................................................................1 Financial Statements: Combined Balance Sheet .......................................................................................................................................3 Combined Statement of Revenues, ExpencEitures and Changes in Fund Balances ..............................................................................................................................4 Notes to Financial Statements ..............................................................................................................................5 Report on Internal Control over Financial Reporting and on Compliance and Other Maffers Based on an Audit of Financial Statements Performed in Accordance with Govea~lzrnentAtrditzng Standards .........................................................................................9 Independent Auditors' Report on Measure B Compliance .................................................................................11 Thls page intentzorrall~ left blank CAL Caporicci & Larson, Inc. ASrrbsidtrny ofASarcu~r~ LC.P Cer~lified Public Accoriratctrats INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, Califarnia We have audited the accompanying financial statements of each major fund of the Alameda County Transportation Commission -- Measure B funds {Measure B funds) of the City of Dublin, California {City}, as of and for the year ended June 30, 2011, which collectively comprise the Measure B Funds' financial statements as listed in the table of contents. These financial statements are the responsibility of the management of the Measure B Funds, Our responsibility is to express an opinion an 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 of material misstatement, An audit includes consideration of internal control aver financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Measure B Funds' internal control over financial reporting. Accordingly, we express na such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation, We believe that our audit provides a reasonable basis for our opinions. As described in Note 1 to the basic financial statements, these basic financial statements present only the Measure B Funds and are not intended to present fairly the financial position and results of operations of the City in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of each major fund of the Measure B Funds as of June 30, 2011 and the respective changes in financial position thereof for fhe year then ended in conformity with accounting principles generally accepted in the United States of America. As described in Nofe 1 to the basic financial statements, the Measure B Funds adopted Statement of Governmental Accounting Standards Board No, 54, Frrrrd Balrance Reportij~g rand Govet•ltrtteattal Fund ~'jpe Defrtaitions, as of July 1, 2010. 'I'o the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 In accordance with Governrrtenf Auditing StartdaYds, we have also issued our report dated December 20, 2011 on our consideration of the Measure $ Funds' internal control aver financial reporting and on our tests of its compliance with.certain provisions of latn7s, 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 testiirg, and not to provide an opinion on internal control over financial reporting or on compliance. 'T'hat report is an integral part of an audit performed in accordance with. Gover~ttntettt Auditing Standards and should be considered in assessing the results of our audit. { r ~~-' ~ . Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants San Francisco, California December20, 2011 City o~ Dublin Alameda County Transportation Ctarnlnission - Measure B Funds Combined Balance Sheet For the year ended June 30, 207.E Special Revenue Funds Measure B Measure B Alanto Local Bilce and Canal Trail Streets Pedestrian Under 158€3 Tota] ASSETS Cash and investments $ 591,215 $ 434,239 $ - $ 1,025,454 Accounts receivable 86,(}02 54,040 - 140,042 Total assets 677,217 488,279 - 1,265,496 LIABILITIES AND FUND BALANCES Liabilities: Accounts Payable $ - $ 18 $ _ $ 28 Total expenditures - 18 - 18 Fu~td Balances: Restricted 677,217 488,261 - 1,165,478 Total #und balances 677,217 488,261 - 1,165,478 Iota! Liabilities and fund balances $ b77,217 $ 488,279 $ - $ 1,165,49b See accompanying No#es to Financial Statements 3 City o£ Dublin Alameda Counfy Transportation Commission - Measure B Funds Combined Statement of Revenues, Expenditures and Changes In Fund Balance For the year ended June 30, 2011 Special Revenue Funds Al;'UEI~TU);5: Taxes other than property interest Reimbursement Total revenues Exl'ENAITL312ES: Current: Lliglrway ans Streets Capital ©utlay: Street C3verlay Program Sidewalk Safety Program Slurry Seal Program Traffic Signal Ir€rproveFnents Alarm Canal Trail Under 158fl Total expenditures zcl;~~sNUls avER EvN17Elz EXP)JN171TURES F[TND BALANCES: Beginnirrg of year End of year Measure B Measure B Loeal Bike and Streets Pedestrian ~ 327,117 ~ 11b,196 ~ 34,316 7,581 Alamo Canal Trail Under 1580 Total - ~ 443,313 - 41,897 23,491 23,491 23,491. 5U8,70i - 12,643 - 12,643 34Q,565 - - 340,565 - 72,884 - 72,884 _ - 19,87Q - 1R,87Q - 29,515 - 29,515 - - 23,491 23,491 344,565 134,912 23,491 498,9b8 20,868 (11,135) - 9,733 656,349 494,396 - 1,155,745 ~ 677,217 $ 488,2b1 $ - 8 1,165,478 See accompanying Notes to Financial Statements 4 City o~ Dublin Alameda County Transportation Commission - Measure B Funds Notes to Financial Statements, Continued For the year ended June 30, 2017. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Repot-tfng EntitJ -All transactions of the Alameda County Transportation Commission-- Measure B Funds (Measure B Funds) of the City of Dublin, California (City), are included as separate special revenue funds in the basic financial statements of the City. Measure B Funds are used to account far the City's share of revenues earned and expenditures incurred under the City's sheets and roads, and bike and pedestrian 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. Brtsis of Accotttttitag -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 finrttt.ciat reso~frces" measurement focus, whet•ein only current assets and current liabilities generally are included on the balance sheets. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets, C. Descrij~tiatt of Funds -- The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with aself-balancing set of accounts. The following fund type is used; Sj~erittl Reuetttfe Fttttds - To account for the proceeds of specific revenues that are legally restricted to be expended for specified purposes. D. Fttutl Bcrlarrces 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. Previously the fund balances were grouped as Reserved and Unreserved Fund Balances. Effective July 1, 2010 Fund balance reclassifications were made to conform to the provisions of GASB No. 54. GASB No. 54 establishes criteria far classifying fund balances into specifically defined classifications to provide clearer hierarchy of fund balance based on constraints and to achieve consistency in reporting between Fund Financial Statements and Government-Wide Financial Statements. It applies to government reporting to government fund, therefore, ik excludes proprietary funds and business-type special purposes governments. GASB 54 details five components of fund balance: Non-Spendable; Restricted; Committed; Assigned; and Unassigned. Measure B Funds reported all fund balances as Restricted on the Balance Sheet of the Governmental Funds. Restricted Ftt~trf Brzlrtttce is the portion of fund balance constrained for specific purposes imposed by external parties, by law, or by enabling legislation legally enforceable by external parties. City of Dublin Alameda Counfy Transportation Commission -- Measure B Funds Notes fa Financial StatemenFs, Continued For the year ended June 30, 2011 7.. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Llse of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities, In addition, estinnates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. 2. CASH AND INVESTMENTS Caslr and investments are maintained on a pooled basis ~arith 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 lmreshnent 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 Cit~T's Comprehensi~re Azrcrual 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 }4568. 3. RECEIVABLES The receivables represent the Measure B sales tax revenues and project reimbursements far the fiscal year received from the Alameda County Transportation Cazrtmission after June 30, 2011. 4. MEASURE l3 l~UNDS Undez' Measure B, approved by the voters of Alameda County in 1986 (Old Measure B) and in 2000, Alameda CTC Measure S, the City receives a portion of the proceeds of an additional one-half cent sales tax to be used for t~°anspoz'tation-related expenditures. This measure vR~as adopted v~Tith the intention.tliat the funds generated by the additional sales tax ~=ill not fund expenditures previously paid for by propert~T taxes but, rather, would be used for additional protects and programs. City of Dublin Alameda County Transportation Commission - Measure S Funds Notes to Financial Statements, Continued For the year ended June 30, 2011 4. MEASURE B FUNDS, Con#inued Local projects funded by Measure B were as follows: Sfi•eet Resttr;fizcit~g Projects -- To place overlays on various streets throughout the City. Bic cIe acrd Pedestri~rr Srt et - To fund various bicycle and pedestrian safety projects throughout the City. • Highways $~ Streets {Public Works Adinin) Bicycle Master Plan Program Implementation • Sidewalk Safety Repair Project #949102 -- A portion of a larger project was partially funded with Measure B funds. The improvements were adjacent to Dublin High School and adjacent bus stops. These improvements were also partially funded by General fund sources. • Slurry Seal Program Project #969202 {Bicycle Master Plan Striping Cainpanent). Measure B provided funding associated with replacement and installation of pavement markings in conformance with the adopted Bicycle Master Plan. • Traffic Signal Improvements Project #96022 (Shannon Avenue /San Ramon Road School Crossing Component). Measure B provided funding associated with the implementation of a controlled left turn signal at a major intersection which is a primary pedestrian route to two schools. The control of the left turn movement eliminated conflicts with pedestrians and turning vehicles. From a pool of funds held by the County, 26.88 percent of the pool is allocated among the cities in the County, based on the cities' populations and the number of roads within their city limits for outer transportation-related projects, Funds allocated for streets and roads; bike lanes and pedestrian lanes are recorded as a special revenue funds. Regional capital projects not using Local Funds, being constructed under contract administered by the City of Dublin were as follows: Alamo Canal Trail Under I-580 -This project is a multi-agency partnership including Measure B as well as funding provided by the East Bay Regional Park District and the Cities of Dublin acid Pleasanton. The project is independent of local funds provided as part of the Local Bike and Pedestrian funding. 'I"hSs page utEentionatly 3efk blank C&L Caporicci & Larson, Inc. ASubsidictty of~Ifai~cunt IJ.Y Cer! fed Public Acc©ttrti~nls REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITING STANDARDS To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California We have audited the financial statements of the Alameda County Transportation Commission -- Measure B Funds {Measure B Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2021, and have issued our report thereon dated December 20, 2021. 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 Govet•t~taletttAtlditiltg Stcttltlltrds, issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered Measure B Funds' internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Measure B Funds' internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Measure B Funds' internal control over financial reporting. A rfefieiettc~ itt interfta[ corttr•©1 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 lrttzterittl zveakltess is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control aver financial reporting that we consider to be material weaknesses, as defined above. ~~~-.~a~E~2.~o,» To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Com fiance and Other Matters As part of obtaining reasonable assurance about 'whether the Measure B i~unds' financial statements are free of material misstatement, ~Te performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions vrTas not an objective of our audit, and accardingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Goverttrrtent Audifing Standaa•ds. This report is interded solely for the ixzformation and use of the City Council, management, anti. the Alameda CountS~ Transportation Commission, and is not intended to be, and should not be, used by anyone other than these specified parties. Hot~retrer, this report is a matter of public retard and its distribution is not limited ~' ;~ ~'~ ~ Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants San prancisco, California December 20, 2011 ~o CAL Caporicci & Larson, Inc. ASacbsidi~r~~ ofhi~i•cujnlLP C,erf rfied Fubltc Accor~ntu~~ts INDEPENDENT AUDITORS' REPORT ON MEASURE B COMPLIANCE To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Cam fiance and Other Matters We have audited the City of Dublin, California (Cityj's compliance with the agreement between the City and Alameda County Transportation Commissions applicable to Measure B 2000 funds for the year ended June 30, 2011. Compliance with the requirements referred to above is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit, We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to the financial audits contained in the G©uet•1~rltenf Artcfitiazg Stalydards issued by the Comptroller General of the United States; and the agreement between the City and Alameda County Transportation Commissions. Those standards and the agreement require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the co~nphance requirement referred to above could have a material effect on Measure B 2000 funds. An audit includes examining, on 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 ouI• opinion, Our audit does not provide a legal determination of the City's compliance with those requirements. Under Measure B, approved by the voters of Alameda County in 2000, the City has received under Alameda County Transportation Commissions Measure B a total of 12 months of revenue from July 2010 through June 2012. The Local Street and Roads program has received $327,11.7, and the Bike and Pedestrian program has received $11b,196. This financial statement reflects twelve months of revenue for the Laca1 Streets and Roads, and the Bike and Pedestrian programs. In our opinion, the City is in compliance, in all material respects, with the laws and regulations, contracts, and grant requirements related to Measure B 2000 funds as specified in the agreement between the City and the Alameda County Transportation hnpravement Authority for the year ended June 30, 2011. Internal Cantral Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit, we considered the City's internal control over compliance to determine the auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. «~c~v.c•3cpa.cam To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 A deficiency in internat cotatt~ol auer compliance exists ~=hen the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prey=ent, or detect axed correct, noncompliance on a timely basis. A rnaEerial weakness in irate~•nal calztrol over compliance is a deficiency, or combination of deficiencies in internal control o~=er compliance, such that there is a reasonable passibility that material noncompliance with a compliance requirement grill not be prevented, ar detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in tlxe first paragraph of this section and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies, or material weaknesses in internal control o~=er compliance, jNe did not identify any deficiencies in internal conhol over compliance that ~n=e consider to be material weaknesses, as defined abo~=e. This report is intended solely for the information and use of the City Council, management, and the Alameda County Transportation Commission and is not intended to be and should not be used by anyone other than these specified parties. Ho~~ret=er, this report is a matter of public record and its distribution is not limited. Caporicei & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants San )~rancisco, California December 20, 2p11 12 City of Dublin Dublin, California Independent Accountants'Repom on Agreed-Upon Procedures Applied to Appropriations Limit Schedule For the fiscal year ending Jirne 30, 2012 CL Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants ~":U ~Nxry~~L (;aporicci & Larson, Inc. n 5'ubsicliczry ofMczrcunz I,I,P Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED UPON PROCEDURES TO APPROPRIATION LIMIT SCHEUDULE UNDER ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION To the Honorable Mayor and City Council of the City of Dublin Dublin, California We have performed the procedures enumerated below to the accompanying Appropriations Limit Schedule of the City of Dublin (City) for the fiscal year ending June 30, 2012. These procedures, which were agreed to by the City and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution), were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City management is responsible for the Appropriations Limit Schedule. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. 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 any other purpose. The procedures performed and our findings are described below: 1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the fiscal year ending June 30, 2012, and determined that the limit and annual calculation factors were adopted by resolution of City Council. We also determined that the population and inflation options were selected by a recorded vote of City Council. Findings: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Schedule, we added the prior year's limit to the total adjustments, and agreed the resulting amount to the current year's limit. Findings: No exceptions were noted as a result of our procedures. 3. We agreed the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City. Findings: No exceptions were noted as a result of our procedures. 4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Schedule to the prior year appropriations limit adopted by the City Council during the prior year. Findings: No exceptions were noted as a result of our procedures. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 We were not engaged to and did not conduct an examination, the objective of which would be the expression of an opinion on the accompanying Appropriation Limit Schedule. 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. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by Article MII-B of the California Constitution. This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. Caporicci & Larson, Inc. A Subsidiary of Marcum LLP Certified Public Accountants San Francisco, California January 10, 2012 City of Dublin Appropriations Limit Schedule For the fiscal year ending June 30, 2012 A. Appropriations limit for the year ended June 30, 2011 B. Calculation Factors: 1. Population increase 2. Inflation increase 3. Total adjustment factor C. Annual Adjustment Increase D. Other Adjustments: Loss responsibility (-) Transfers to private (-) Transfers to fees (-) Assumed responsibility (+) E. Total Adjustments F. Appropriations limit for the year ending June 30, 2012 Amount Source $ 150,505,969 Prior year schedule 1.0219 State Department of Finance 1.0251 State Department of Finance 1.075 5,57,176 [(B3-1) ~ A] - N/ A - N/ A - N/ A - N/ A 5,57,176 (C+D) $ 159,053,15 (A+E) 3 City of Dublin Notes to Appropriations Limit Schedule For the fiscal year ending June 30, 2012 1. PURPOSE OF LIMITED PROCEDURES REVIEW Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit. 2. METHOD OF CALCULATION Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-1987, adjusted for the inflation and population factors discussed in Notes 3 and 4 below. 3. POPULATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction's own population, or the annual percentage change in population in the County where the jurisdiction is located. The factor adopted by the City Dublin for fiscal year 2011-2012 represents the annual percentage change in population for the City. 4. INFLATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change in the 4ri~ quarter per capita personal income (which percentage is supplied by the State Department of Finance), or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City of Dublin for the fiscal year 2011-2012 represents the annual percentage change for per capita personal income. 5. OTHER ADJUSTMENTS A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services, to, or from, another government agency or private entity. There were no adjustments made for the fiscal year ending June 30, 2012.