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HomeMy WebLinkAboutItem 4.17 - 1270 Comprehensive Annual Financial Report CAFR Page 1 of 6 STAFF REPORT CITY COUNCIL DATE: December 20, 2016 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Comprehensive Annual Financial Report (CAFR) and Annual Audit for Fiscal Year Ending June 30, 2016 and Supplemental Reports Completed by the Auditors Prepared by: Colleen Tribby, Director of Administrative Services EXECUTIVE SUMMARY: The City of Dublin has prepared its Comprehensive Annual Financial Report (CAFR), for the Fiscal Year ending June 30, 2016. This report includes financial statements prepared by City staff along with the audit prepared by Maze and Associates Accountancy Corporation (Maze), the independent auditors selected by the City Council. The CAFR is a report which encompasses information beyond minimum financial reporting requirements. The Auditors have provided a "clean opinion" based on their review. The report has also been reviewed by the City Council Ad-Hoc Audit Subcommittee. The Auditors have also completed the following five supplemental reports: 1) a compliance audit of Alameda County Transportation Measure B Funds; 2) a compliance audit of the Alameda County Transportation Commission Fund (ACTC-VRF) Program; 3) a compliance audit of Alameda County Transportation Measure BB Funds; 4) a compliance audit of the State of California Transportation Development Act (TDA) Program; and 5) a review of the City's Annual Appropriations Limit Calculation. STAFF RECOMMENDATION: Receive and file the reports. FINANCIAL IMPACT: Summarized financial information is discussed in this Staff report, and Attachment 1 provides a guide to key information found in the CAFR. The full CAFR is included as Attachment 2. DESCRIPTION: The City of Dublin has prepared its CAFR for the Fiscal Year ending June 30, 2016. The CAFR (Attachment 2) includes audited financial statements reviewed Page 2 of 6 by Maze and Associates Accountancy Corporation (Maze), the independent auditor selected by the City Council, and concludes the last year of audit services under a five-year agreement approved by the City Council on April 17, 2012. Ad-Hoc Audit Committee Review The auditors met with the City Council Ad-Hoc Audit Committee, comprising Mayor Haubert and Vice Mayor Biddle, on December 7, 2016, to review the results of the audit. The interaction of the auditors directly with representatives of the elected body is a key component to audit standards, and provides committee members an opportunity to discuss the report and ask questions of the auditors. The Committee concurred with Staff's recommendation that the City Council receive the report. Overall, based on their testing and review, the auditors granted the City a "clean opinion" (see CAFR pages 1 - 3), meaning that the City's financial statements present fairly, in all material respects, the financial position of the City. Financial Overview Attachment 1 provides a guide to key elements contained in the CAFR. Some of the important financial results include: Increased Total Net Assets - Net assets increased by $43.5 million, as shown in Table 1 below. This change is on an entity-wide basis, and includes both capital assets as well as restricted funds. Included in the Management Discussion and Analysis section of the CAFR is a discussion of the changes in Net Assets (CAFR pages 5 - 20 ). It is important to note that the amount reported as Total Net Assets includes: 1. $461.0 million (68.8% of total assets) in investments in capital assets (e.g. land, infrastructure, buildings, and equipment). These are not assets that are available for future spending. 2. $97.6 million (14.6% of the total assets) are assets subject to external restrictions on how they can be used, such as development impact fee funds. 3. $111.7 million in net assets are unrestricted. Page 3 of 6 Memorandum on Internal Control (MOIC) (Attachment 3) The professional standards adhered to by the Auditors require them to record a formal process of communicating directly with the City Council. As part of the FY 2015-16 CAFR process, the auditors met with the City Council Ad-Hoc Audit Committee at the start of their field testing as well as at the conclusion of the audit to review the final report. The MOIC includes a report on the City’s accounting and reporting procedures, as well as recommendations for process improvements. The report did not note any significant deficiencies in accounting procedures in FY 2015 -16. Two other items were noted under the “Schedule of Other Matters”: 1. Super-User Access to the Financial System and Review of Payroll Registers. A conflict was noted related to user access rights. In working with the auditors and evaluating the risk involved with Finance access rights versus the needs of Finance operations, it was determined the best response would be to implement a check and balance procedure with respect to payroll review, and for the Administrative Services Director to conduct surprise audits of payroll runs. Page 4 of 6 2. Determination and Accounting for Capital Costs. The auditor made best practice recommendations for Finance’s treatment of capital assets in each fiscal year. The MOIC also contains a description of new GASB requirements implemented by the City during the audit year, and upcoming GASB requirements that are not yet effective. New accounting standards set for FY 2015-16 included Governmental Accounting Standards Board (GASB) Statement 76, related to the hierarchy of accounting principles, and GASB 79, related to certain external investment pools and pool participants. Neither of these Statements had a material effect on the City’s financial statements. The City also implemented GASB 72, related to investment fair value measure and application. The result of the implementation was the addition of a notation to the financial statements (CAFR pages 53-54). Designations of Fund Balances The City's Fund Balance and Reserves Policy conforms to required standards enacted by the GASB. A listing of the FY 2015-16 year-end reserves established in accordance with this policy is shown on CAFR page 65. The following table summarizes the fund balances for all City funds: TABLE 2: GOVERNMENTAL FUND BALANCE CHANGES June 30, 2016 and 2015 June 30, 2016 June 30, 2015 $ Change % Change General Fund 109,184,026 97,706,494 11,477,532 11.7% Affordable Housing Fund 25,526,669 13,607,857 11,918,812 87.6% Capital Improvement Funds 60,282,217 50,385,192 9,897,025 19.6% Other Governmental Funds 11,783,552 10,745,411 1,038,141 9.7% Total Governmental Funds 206,776,464 172,444,954 34,331,510 19.9% As shown above, General Fund Reserves totaled $109.2 million as of June 30, 2016: $29.9 million of that is available for cash flow purposes, equating to 5.1 months of budgeted operating expenditures in FY 2016-17. This exceeds the target as guided by the City Policy, which sets the cash flow goal at between two and four months of the budget. Additional Reports Prepared by Auditors In addition to the audit of the financial statements, the auditor engagement also included the completion of specialized reports. The five supplemental reports include: 1. A compliance audit of Alameda County Transportation Commission (ACTC) Measure B Funds 2. A compliance audit of the ACTC Vehicle Registration Fee Program 3. A compliance audit of the ACTC Measure BB Program 4. A compliance audit of the State of California Transportation Development Act (TOA) Program 5. A review of the City's Annual Appropriations Limit Calculation Page 5 of 6 The City did not meet the threshold of $500,000 in expenditures of federal funds in FY 2015-16, and therefore was not required to complete a Federal Grant - Single Audit Report. The following is a brief summary of each supplemental report. ACTC Measure B Funds Report (Attachment 4): ACTC provides local funding via two local programs: 1) Local Street Improvements; and 2) Bicycle and Pedestrian Improvements. During FY 2015-16, the following projects were funded by Measure B: − Bicycle Master Plan Program − Street Slurry Seal Program − Street Overlay Program The compliance audit found that, based on the information reviewed and presented, the expenditures were materially in compliance with the program requirements. As of June 30, 2016, the Local Streets fund balance of $566,506 is assigned to a Capital Reserve for the continued street improvement projects, and the Bike I Pedestrian fund balance of $240,452 is restricted to the appropriate related bike and pedestrian program improvements. ACTC Vehicle Registration Fee Report (Attachment 5): The City of Dublin uses a Special Revenue Fund to account for the funds collected through the ACTC's Vehicle Registration Fee. The goal of the program is to sustain the County's transportation network through a distribution of the funds throughout the County on successive five-year cycles. As of June 30, 2016, the ACTC VRF fund had a balance of $215,224 in restricted funds. The FY 2015-16 Budget appropriated funds from this source to support upgrades to citywide traffic signals. ACTC Measure BB Report (Attachment 6): Alameda County Measure BB was approved by the voters in November 2014, with 70% of the vote. The fee is expected to generate about $30 billion over the next 30 years funded by an additional one-half cent sales tax to be used for transportation related expenditures. The program includes four categories of projects: 1) Transit; 2) Affordable Transit for Seniors and People with Disabilities; 3) Local Streets and Roads; and 4) Bicycle and Pedestrian Path and Safety. As of June 30, 2016, the Measure BB Fund had a restricted fund balance of $464,159 for Local Streets and Roads, and $162,036 restricted for Bicycle and Pedestrian improvements. There were no expenditures of these funds in FY 2015- 16. TDA Funds Report (Attachment 7): Page 6 of 6 TDA grants are granted by the State and distributed through the Metropolitan Transportation Commission (MTC) which is the agency responsible for allocation of duns to eligible claimants within the greater San Francisco Bay area. The TDA grants allocated to the City of Dublin are for pedestrian and bicycle pathway improvement projects. During FY 2015-16, $33,311 was spent on the Accessible Pedestrian Signal Retrofit Project. As of June 30, 2016, the remaining grant funding is $115,000, which has been awarded to the City and will be received as expenditures happen. Appropriation Limit Schedule Report (Attachment 8): 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 $291,414,855 Limit as presented in the FY 2016-17 Budget. There were no exceptions noted in the findings. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of this report was sent to Katherine Yuen, Partner, Maze and Associates. ATTACHMENTS: 1. Summary - Key Information, Comprehensive Annual Financial Report for FY 2015-16 2. City of Dublin Comprehensive Annual Financial Report - Fiscal Year 2015-16 3. Memorandum on Internal Control and Required Communications FY 2015 -16 4. Alameda County Transportation Commission Measure B Funds (Street and Bicycle - Pedestrian) Report 5. Alameda County Transportation Vehicle Registration Funds (VRF) Report 6. ACTC Measure BB Program Report 7. State of California Transportation Development Act (TDA) Program Report 8. Appropriation Limit Schedule Report SUMMARY – KEY INFORMATION COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2016 City Council Meeting December 20, 2016 Page 1 of 2 Attachment 1 1. Includes audited financial statements reviewed by Maze and Associates Accountancy Corporation (Maze). 2. The auditors issued a “Clean Opinion”, which means that the City’s financial statements fairly represent the City’s financial position. 3. The CAFR format will allow the City to apply for a Certificate of Achievement from the Government Finance Officers Association (GFOA). The goal is to provide financial information of the highest quality, in a transparent manner. 4. The only change in structure in FY 2015-16 is the implementation of GASB Statements 79 and 79, which did not have a material effect on the City’s financial statements, and GASB Statement 72, related to investment fair value measure and application. Implementing GASB 72 resulted in the addition of a notation to the financial statements (CAFR pages 53-54). 5. ORGANIZATION OF DRAFT REPORT: a. Transmittal letter (beginning page v): provides a general overview of economic and budgetary factors that impact the City. b. Opinion issued by the Independent Auditor (pages 1 - 3). c. Management Discussion and Analysis (MD&A) (pages 5 – 20): provides an overview of the financial activities, with a focus on significant trends, as well as major changes associated with the City's major funds (i.e. General Fund and Impact Fee funds). d. Financial Statements: a significant portion of the CAFR is comprised of financial statements and schedules for the various funds used to account for the City’s revenue and expenditures. Pages 22-23 present a Government-Wide Statement of Net Position which is similar to financial statements presented by private corporations. e. Statistical Section (pages 173-end): 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 65 of the report. 7. Audit Recommendations / Disclosures - As part of the Audit Review the independent auditors can present recommendations for consideration by the City. The process allows the Auditors to disclose their observations on certain practices and policies. As part of the recommendations the Auditors also note the upcoming government accounting standard changes. This information is presented as a separate document SUMMARY – KEY INFORMATION COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2016 City Council Meeting December 20, 2016 Page 2 of 2 Attachment 1 titled “Memorandum on Internal Control and Required Communications for the Fiscal Year ended June 30, 2016”. City of Dublin CA LI FORNIA Dublin b6d mr 2011 COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year ended June 30, 2016 CITY OF DUBLIN, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2016 Prepared by ADMINISTRATIVE SERVICES DEPARTMENT This Page Left Intentionally Blank INTRODUCTORY SECTION This Page Left Intentionally Blank I INTRODUCTORY SECTION: I CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2016 Table of Contents ........................................................................................................................................................ i Letter of Transmittal ................................................................................................................................................... v GFOA Certificate of Achievement ......................................................................................................................... xiv Principal Officers ...................................................................................................................................................... xv Organizational Chart ............................................................................................................................................... xvi I FINANCIAL SECTION: I Independent Auditor's Report .................................................................................................................................. 1 Management's Discussion and Analysis ................................................................................................................. 5 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ....................................................................................................................... 22 Statement of Activities ............................................................................................................................ 24 Fund Financial Statements: Governmental Funds: Balance Sheet ...................................................................................................................................... 28 Reconciliation of the Governmental Funds -Balance Sheet with the Statement of Net Position ................................................................................................................................ 30 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................ 32 Reconciliation of the Net Change in Fund Balances -Total Governmental Funds with the Statement of Activities .......................................................................................... 34 Statement of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual: General Fund ............................................................................................................................. 3 5 Affordable Housing Special Revenue Fund ............................................................................. .36 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2016 I FINANCIAL SECTION (Continued): Proprietary Funds: Statement of Net Position ................................................................................................................... 38 Statement of Revenue, Expenses and Changes in Fund Net Position ............................................... 39 Statement of Cash Flows ............................................................................................................... 40 Fiduciary Funds: Statement of Fiduciary Net Position .............................................................................................. 42 Notes to Basic Financial Statements ........................................................................................................ 43 Required Supplemental Information: Schedule of the Plan's Proportionate Share of the Net Pension Liability and Related Ratios ................. 84 Schedule of Contributions ........................................................................................................................ 85 Other Post-Employment Benefits-Schedule of Funding Progress .......................................................... 86 Supplemental Information: General Fund-Budget Versus Actual: Schedule of Budget Versus Actual Revenue by Sources .............................................................. 90 Schedule of Budget Versus Actual Departmental Expenditures ................................................... 94 Budgeted Major Governmental Funds Other than General Fund and Special Revenue Funds: Schedules of Revenues, Expenditures and Changes in Fund Balance -Budget and Actual: General Improvements Projects Capital Projects Fund .......................................................... 96 Community Improvements Projects Capital Projects Fund ................................................... 97 Parks Projects Capital Projects Fund ..................................................................................... 98 Streets Projects Capital Projects Fund ................................................................................... 99 Public Facilities Impact Fees Capital Projects Fund ............................................................ 100 Fire Impact Fees Capital Projects Fund ............................................................................... 101 Traffic Impact Fees Capital Projects Fund ........................................................................... l 02 Dublin Crossing Contribution Capital Projects Fund .......................................................... 103 11 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2016 I FINANCIAL SECTION (Continued): I Non-major Governmental Funds: Combining Balance Sheets ............................................................................................................. 110 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................................................................................................... 118 Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual ...................................................................................... 126 Internal Service Funds: Combining Statement of Net Position ......................................................................................... 162 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................ 164 Combining Statement of Cash Flows ............................................................................................... 166 Fiduciary Funds: Statement of Changes in Assets and Liabilities -All Agency Funds ......................................... 170 I STATISTICAL SECTION: I Net Position by Component ................................................................................................................... 17 4 Changes in Net Position ......................................................................................................................... 176 Fund Balances of Governmental Funds ................................................................................................ 178 Changes in Fund Balances of Governmental Funds ............................................................................. 180 Assessed Value of Taxable Property .................................................................................................... 182 Direct and Overlapping Property Tax Rates ......................................................................................... 184 Principal Property Taxpayers ................................................................................................................ 186 Property Tax Levies and Collections .................................................................................................... 187 Ratio of Outstanding Debt by Type ....................................................................................................... 188 Direct and Overlapping Debt ................................................................................................................ 189 Legal Debt Margin Information ............................................................................................................ 190 111 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2016 j STATISTICAL SECTION (Continued): I Demographic and Economic Statistics ................................................................................................. 192 Property Value, Construction and Bank Deposits ................................................................................ 193 Principal Employers .............................................................................................................................. 194 Full-time Equivalent City and Contract Government Employees by Function .................................... 196 Operating Indicators by Function/Program ............................................................................................ 198 Capital Assets Statistics by Function/Program ..................................................................................... 200 Top 25 Sales Tax Producers ................................................................................................................. 202 Miscellaneous Statistical Data .............................................................................................................. 203 IV "' DUBLIN CALIFORN I A THE NEW AMERICAN BACKYARD City Council 925 .833.6650 City Manager 925.833.6650 Community Development 925 .833.66 1 0 Economic Development 925.833 .6650 Finance/IT 925.833.6640 Fire Prevention 925.833 .6606 Human Resources 925.833 .6605 Parks & Community Services 925.833.6645 Police 925 .833 .6670 Public Works 925.833.6630 I 00 Civic Plaza Dublin, CA 94568 p 925.833.6650 F 925.833.665 I www.dublin.ca.gov December 20 , 2016 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, 2016. 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. Maze and Associates Accountancy Corporation, a firm of licensed public accountants, has issued an unqualified ("clean") opinion on the City of Dublin 's financial statements for the year ended June 30 , 2016. The independent auditor's report has been included in this Comprehensive Annual Financial Report. This letter of transmittal is designed to assist with an individual's review of the City's financial statements . Specifically it is intended to offer the reader useful information in assessing the economic conditions impacting the City of Dublin. It also complements the separate Management's Discussion and Analysis (MD&A) narrative section , which provides financial highlights of the City and additional analysis of trends reported as part of the financial statements . The MD&A is located immediately following the report of the independent auditors. CITY PROFILE 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 . In 2012, the City celebrated its 30th anniversary as an incorporated city. The City provided for a permanent staffing level of approximately 93.75 full-time equivalent City employees in the FY 2015-16 budget cycle, and budgeted for an additional 194 temporary employees during the summer recreational season. The City serves an estimated population of 57,349 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 . v The City operates under the Council-Manager form of government. Policy making and legislative authority are vested in the City Council, which consists of an elected Mayor, who serves a two-year term, and four Council members each elected to a four-year term. The City Council is responsible for the City's ordinances, operating resolutions, adoption of the annual budget, hiring the City Manager and City Attorney and confirming the appointments made by the Mayor to commissions and committees. The City Manager is responsible for the following activities: implementing the policies, ordinances, and directives of the City Council; overseeing the day-to-day operations of the City; and appointing the Directors of the City's departments. Current City services include: City Manager; Human Resources; Administrative Services (Finance/Information Systems); City Attorney; City Clerk; Police; Fire; Community Development (Building/Planning/Housing); Economic Development/Public Information; Parks and Community Services; and Public Works (including Engineering and Maintenance). The City contracts with both public agencies and private firms to provide a variety of key services including: Building Inspection; Fire; Police; and Public Works maintenance. A total of 131.85 FTE contract employees were included in the City budget in FY 2015-16. HIGHLIGHTS The City of Dublin is located at the intersection of Interstates 580 and 680 approximately 35 miles east of San Francisco. The City delivers a broad range of community services and has a wide range of housing types available to meet the demands of various employers throughout the region. Over the past several years residential builders and developers have constructed a variety of new housing options, which include a mix of transit-oriented development adjacent to the City's two Bay Area Rapid Transit (BART) stations, as well as single family homes and condominium I townhome developments. The relatively close proximity to additional job centers and colleges and universities in the Bay Area create an attractive environment. Much of the recent growth in the community, which is now in its final phases of completion, was planned in the voter-approved 1994 Eastern Dublin Specific Plan. This vision has allowed a strong foundation and quality neighborhoods and public facilities to be built citywide. Equally exciting, new developments in the Downtown Dublin Specific Plan area and throughout the rest of the community have brought a wonderful range of new retail, office and transit-oriented residential development that will support a high quality of life in Dublin. The City remains committed to working to attract new quality investment and services to our community. New development over the past decade has had positive budgetary impacts, allowing the City to make significant investment in our community-serving facilities, such as our excellent parks. While careful financial stewardship has put Dublin in a strong fiscal position, it is important that we look to ensure the stability of the community's long-term fiscal condition so that we may continue to provide high-quality services. VI Key City accomplishments during FY 2015-16 include the following: Parks & Community Services • Celebrated the 33rd Annual St. Patrick's Day Festival and Shamrock 5K Fun Run and Walk. th • Held the 4 Annual "Splatter'' event, featuring an array of multi-cultural performance venues, with an estimated crowd of 15,000. • Presented two special exhibits, "A History of Dublin Schools" and "Farm-to-Table: Dublin's Farmers," at the Dublin Heritage Park and Museums. • Held another successful season of the free summer outdoor movie series, "Picnic Flix." • Presented the annual Youth Benefit Concert, raising money for the Youth Fee Assistance Program, which enables children from low-income families to participate in the City's recreational programs. • Began construction of Phase II of Fallon Sports Park, which includes a 90' baseball diamond, two lighted soccer fields, concession building, public restrooms, group picnic area with shade, adventure playground, pathway with pedestrian lighting, and a parking area. • Began construction on (developer-built) Jordan Ranch Neighborhood Park. • Approved the conceptual design and began development of construction documents for Sean Diamond Neighborhood Park, a planned five-acre park in the Positano neighborhood. • Completed the update to the Parks and Recreation Master Plan and Public Facility Fee Program. • Completed the Dublin Camp Parks Military History Center management plan. Design of the Center is in progress. • Continued the Dublin Crossing Community Park Master Plan community planning process for a new 30-acre community park. • Held the fifth season of the Dublin Farmers' Market at Emerald Glen Park. • Celebrated Dublin's "Hometown Heroes" at an annual event held in November at the Senior Center. • Continued construction of The Wave at Emerald Glen Park, a 31,000-square foot aquatic complex. Public Works and Environmental Services • Received $11.2 million of Measure BB and $6.3 million of Measure B grant funds from the Alameda County Transportation Commission for the Dougherty Road Improvement Project. • Received $3 million of Measure BB grant funds for the Dublin Boulevard Improvement Project (Sierra Court to Dublin Court). • Began design for the Public Safety Complex renovation. The proposed Police Services building will include a variety of offices, an Emergency Operations Center, evidence storage, and public lobby. • Continued implementation of the Bicycle and Pedestrian Master Plan, including installing buffered bike lanes and green conflict zone markings along Amador Valley Boulevard from San Ramon Road to Village Parkway. • Installed enhanced bicycle detention devices at various traffic signals. • Maintained high-quality roads by completing 630,000 square feet of pavement overlay in Downtown Dublin. • Replaced 3,800 square feet of damaged sidewalk and installed four curb ramps as part of the annual sidewalk safety and ADA transition plan project. • Filled 162 potholes; trimmed 2,341 trees; completed storm drain cleaning and assessment of storm drain lines; and completed 6,057 miles of street sweeping. Vil • Coordinated 32nd Annual "Dublin Pride Week" activities, including Volunteer Day, a Sustainable Citizens Workshop, a food drive, and a household hazardous waste collection and compost giveaway. • Coordinated the 7th Annual "Creek Clean-Up" event. • Partnered with Dublin San Ramon Services District (DSRSD) on the installation of a recycled water main under San Ramon Road, bringing the Recycled Water Expansion Project to western Dublin. • Provided a site for DSRSD's Recycled Water Station, to offer residents free recycled water for home irrigation and gardening use. Administrative Departments • Graduated the 11th class of students of Inside Dublin, a seven-week program which provides an in- depth look at all areas of municipal operations, including education, infrastructure, public safety, local government, and community development. • Approved pilot program for free Wi-Fi system for part of Downtown Dublin. • Enhanced emergency notification capabilities by transitioning to a new countywide emergency alert system, "AC Alert." • Hosted the annual Volunteer Recognition Event. Economic Development • Implemented new branding and marketing campaign, which included the creation of new economic development marketing materials, including national and regional ads. • Launched a redesigned website with expanded features including new content designed to better communicate information with residents, visitors, and the business community. • Expanded "Discover Dublin," in partnership with the Chamber of Commerce, into a year-round campaign promoting Dublin businesses. • Participated in "National Manufacturing Day'' by arranging tours of two Dublin firms for local students. • Partnered with other Tri-Valley cities and local Chambers of Commerce to provide a series of three business education forums. • Promoted Dublin as a location of choice for emerging technology firms. Community Development • Completed key amendments to the General Plan and revised the Dublin Crossings and Eastern Dublin Specific Plans to facilitate the creation of two new school sites for the Dublin Unified School District. • Provided permitting assistance for commercial development including the Persimmon Place Shopping Center, Fallon Gateway, upgrades to Dublin Place, Tesla Motors, and business renovations on Village Parkway. • Worked cooperatively with the DSRSD and State agencies to comply with the Governor's Executive Order regarding the 2015 drought and water conservation. • Completed successful financing for the 66-unit Valor Crossing Apartments, and worked with project developer Eden Housing to commence construction and develop an outreach program to assist veterans in need of affordable housing. VIII • Completed a critical assessment and streamlined the City of Dublin First-Time Homebuyer and Inclusionary Below-Market Rate housing programs to enhance effectiveness and flexibility. • Processed permits for major projects including the Bay West Apartments, Dublin Station Apartments, Dublin Corporate Center tenant relocations and enhancements, and the Stanford Health Urgent Care Facility. • Prepared the City Council-adopted ordinance for a streamlined permitting process for small residential rooftop solar systems. • Worked with the Department of Water Resources on the completion of the five-year annual FEMA National Flood Insurance Program audit of the City's flood plain management. Police Services • Added a new Captain to the force to expand capabilities oflaw enforcement. • Approved contract to purchase new law enforcement technology including license plate readers. • Held two Town Hall meetings to respond to community concern relating to property crimes. • Purchased two new patrol vehicles and one new motorcycle for the Traffic Unit. • Purchased 10 new Preliminary Alcohol Screening devices with the most up-to-date technology. • Seized approximately 540 pounds of illegal fireworks in an undercover sting operation. • Operated a successful Holiday Crime Suppression Unit during the holiday season. • Participated in the National Drug "Take-Back Initiative" event, resulting in the collection of 452 pounds of prescription drugs. • Conducted two Tobacco Compliance Operations, checking 44 locations to ensure businesses are not selling tobacco to minors. • Facilitated the first ever Safety Fair which included the assistance of Alameda County Fire Department, American Red Cross, and several local vendors. Fire Services • Established aid agreements with Livermore/Pleasanton Fire and San Ramon Valley Fire. • Conducted Personal Emergency Preparedness (PEP) classes to prepare residents for disasters. Also in FY 2015-16, the City received numerous awards and honors for its accomplishments in various areas of community services and improvements. These include the following: • Named the 4th Best City in Northern California for Young Families, based on home affordability, family growth and prosperity, family friendliness, and quality of education. • 2015 "Award of Excellence" from the California Association of Public Information Officers (CAPIO) and a 2015 "Award of Merit" by the California Association of Local Economic Development (CALED) for the Marketing and Branding Campaign, "Dublin: The New American Backyard." • 2015 A ward for Excellence in Information Technology Practices from the Municipal Information Systems Association of California (MISAC). • Certification of Achievement for Excellence in Financial Reporting for the FY 2014-15 Comprehensive Annual Financial Report (CAFR) by the Government Finance Officers Association. • "A" Grade from the American Lung Association State of Tobacco Control. IX • Recognition of five detectives (Sergeant Rafael Alvarez, Miguel Campos, Jose Buenrostro, Misty Carausu, and Marc Dinis), ACFD Captain Xavier Poulleau, and City of Dublin Parks and Community Services Manager Hazel Wetherford as Dublin Rotary Superstars. • Recognition of Detective Miguel Campos as "Officer of the Year" by the Knights of Columbus for his outstanding work as a lead police investigator. • Recognized by the Metropolitan Transportation Commission Regional Streets and Roads Program for achievement in pavement maintenance, with Alameda County's highest pavement condition index. • Named a "Tree City USA" by the National Arbor Day Foundation. FINANCIAL OUTLOOK Growth in the City of Dublin's property and sales tax revenues continues to reflect a healthy and thriving community. Following a 2% loss in overall Assessed Valuation (AV) during the recession, the City went from a total AV of $8.4 billion in FY 2011-12 to $12.6 billion in FY 2015-16, owing to real estate values that have been restored, higher sales prices, and new developments coming on line. Total AV increased by $1.5 billion (13.3%) over the prior year, which was the largest percentage growth in Alameda County, followed by Emeryville's (11.7%) and Oakland's (8.7%) growth. The City's property tax revenues, which made up 41 % of total revenues in FY 2015-16, have grown 1 %, 6%, 7%, 16%, and 14% over the last five years. Sales tax revenue also continues to grow, with an average increase of 10% per year over the last five years, and making up 33% of total revenues in FY 2015-16. This was the first full year the City benefitted from tax receipts generated in the Persimmon Place project (including Whole Foods, Nordstrom Rack, Home Goods, and a variety of restaurants). The City's Sales Tax Reimbursement Program, which offers a temporary tax incentive to eligible companies, has been instrumental in bringing in new retailers, and is continuing in FY 2016-17. Development-related revenue is the third largest revenue stream to the City, making up 13% of the total budget in FY 2015-16. Building permit revenue and development services revenue (planning and engineering services) increased a combined 1 % over FY 2014-15, but the yearly increases since the recession have been extremely varied: since FY 2010-11, development revenue increased 52%, 18%, 7%, 3%, and 1 % in the respective years. The City has anticipated this downward trend as some of the larger development projects near completion, and continues to maintain a Service Continuity Reserve in the General Fund to ensure that there are future funds to cover expenditures when development activity slows. x While FY 2015-16 finished with a General Fund surplus of roughly $13 .9 million (before transfers out to capital projects), it is long-term fiscal sustainability that remains at the forefront of budget discussions . Even with the continued growth in property and sales tax , declining development revenues and the rising costs of contracted services could result in deficit spending of $1.3 million in the General Fund by FY 2021-22 , potentially growing to a deficit of $5 .6 million in FY 2024-25 , as reflected in the most recent update to the 10-Year Forecast: General Fund 10 -Year Forecast (in thousands) 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 -All Other Revenue -Community Benefit Payment -Other Revenue -Charges for Services Rentals & Leases -Interest -Development -Other Taxes -Sales Tax -Property Taxes -Expenditures In response to a projected deficit , on November 1, 2016 the City Council approved the formation of a Fiscal Sustainability Task Force , made up of representative community members , which would review the forecast numbers and ultimately produce an advisory report that includes recommendations for future consideration by the City Council. The Task Force meetings will begin in January 2017 and conclude with a presentation of its recommendations to the City Council in January 2018 . XI FINANCIAL PLANNING AND POLICIES The City Council adopted a 10-Y ear Strategic Plan, which is updated every two years. Five specific strategies were identified to establish the framework and overarching policy focus for the delivery of public services to the community. The Budget document has a section containing the Strategic Plan and Goals and Objectives. Adjustments to programs presented by the City Manager in the Budget document were tied to the prioritization of elements within the Strategic Plan. The last Strategic Planning meeting was held March 7, 2015, when the City Council discussed the general assumptions used in the City's 10-Year Financial Forecast. A key outcome of the Strategic Planning meeting was the City Council's decision to identify long-term fiscal sustainability as the key strategic initiative and to direct Staff to make sure fiscal sustainability becomes a major factor in future decisions, including the FY 2015-16 budget and beyond. The City adopts a balanced operational budget in accordance with City policies, and uses a two-year budget format. The City Council adopts a final budget and appropriates funds in advance of the July 1st start of the new Fiscal Year. In terms of major capital investments, constructed with Impact Fees, the City has operated utilizing a pay-as-you-go philosophy. The City has typically operated with no debt financing, though an equipment lease was initiated in FY 2012-13 to fund various energy-efficient improvements, including solar panels at City facilities, which have reduced ongoing utility costs and will eventually fully offset the cost of the project. This project aligned with City Council strategy focused on supporting environmental sustainability. The financial policies currently used for budgeting also provide for the use of Internal Service funds to assure resources are available to finance the replacement of public safety vehicles and apparatus, computer systems, and some building components. The importance of being prepared to address long- term needs has always been a key principle supported by the City Council. The City has also proactively financed contributions to fund long-term retiree medical liabilities. The City Council adopted a policy in accordance with GASB Statement 54, which establishes the components of Fund Balance within the General Fund and how changes as the result of operations are to be administered. The policy continues to support the long-term philosophy to be prudent and maintain funds for future liabilities which may be both known as well as unknown. The City Council has also set aside funds for specific projects and activities with the understanding that some goals require a long- term view and incremental funding over a number of years before the project is undertaken. 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, 2015. A copy of the award from this entity is included in this report. This award represents the 25th 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. XII ACKNOWLEDGEMENTS The preparation of this report was made possible by the collaborative efforts of staff in the Administrative Services Department and other departments. A special thanks and acknowledgement goes to Yuliana Tjeng, Senior Accountant, and Lisa Hisatomi, Assistant Director of Administrative Services, as well as the professional staff at Maze and Associates. Of course the ultimate thanks are afforded to the Mayor and City Council in their support and commitment to have the City's fmancial reporting strive for excellence. Sincerely, Christopher L. Foss Colleen Tribby City Manager Director of Administrative Services Xlll Government Finance Officers Association 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, 2015 Executive Director/CEO XIV CITY OF DUBLIN PRINCIPAL OFFICERS Fiscal Year 2015/2016 Vice Mayor Abe Gupta Councilmember Don Biddle Mayor David Haubert ADMINISTRATION PERSONNEL City Manager Assistant City Manager City Attorney Administrative Services Director City Clerk Chief of Police Community Development Director Economic Development Director Fire Marshal Human Resources Director Parks & Community Services Director Public Work Director xv Councilmem her Kevin Hart Councilmember Doreen Wehrenberg Chris Foss Linda Smith John Bakker Colleen Tribby Caroline Soto Dennis Houghtelling Luke Sims Lori Taylor Bonnie Terra Julie Carter James Rodems Gary Huisingh _Qrganizational Chart XVI INDEPENDENT AUDITOR'S RE.PORT To the Honorable Mayor and Members of the City Council of Dublin Dublin, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of Dublin (City), California, as of and for the year ended June 30, 2016, and the related notes to the financial statements which collectively comprise the City's basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financia~Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of these financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no' such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Accountancy Corporation 3478 Bus kirk Avenue, S uite 2 15 Pleasant Hill , CA 94523 T 925 .930 .0902 F 925 .930 .0 135 e maze@ mazeassociat es.com w mazeassociat e s.com Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2016, and the respective changes in the financial position and cash flows, where applicable, thereof and the respective budgetary comparisons listed as part of the basic financial statements for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter Change in Accounting Principle The City changed its accounting policy during the year ended June 30, 2016. As a result, the City adjusted the beginning fund balance of the Affordable Housing Special Revenue Fund as discussed in Note lN to the financial statements. The emphasis of this matter does not constitute a modification to our opinions. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis, and other Required Supplemental Information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements as a whole. The Introductory Section, Supplemental Information, and Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis and are not required parts of the financial statements. 2 The Supplemental Information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplemental Information is fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 17, 2016, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. ~~L j ~ /Y-)o~ Pleasant Hill, California November 17,2016 3 This Page Left Intentionally Blank Management's Discussion and Analysis (MDA) June 30, 2016 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 FY ended June 30, 2016. Please read this overview in conjunction with the accompanying letter of transmittal and the accompanying basic financial statements. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which are comprised of three components: • Government-wide Financial Statements -These include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the City as a whole and about the overall financial condition of the City in a manner similar to a private-sector business. • Fund Financial Statements -These 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 position and changes to the net position during the FY. Net position -the difference between assets and liabilities -are one way to measure the City's financial position. Over time, increases or decreases in the net position are among indicators used to assess whether the financial condition of the City is improving or deteriorating. However, it is also important to consider other nonfinancial factors, such as: changes in the City's property tax values, sales tax outlets, and the condition of the City's infrastructure (i.e. parks and streets), to accurately assess the overall health of the City. The Government-wide statements present information about the City's activities, all of which are considered governmental in nature. These include services provided for police, fire, community development, streets, and culture and leisure. These services are funded from monies received from property, sales and other taxes, direct charges for services provided, grants, contributions from other agencies, and impact fees collected from new development. 5 GOVERNMENT-WIDE FINANCIAL STATEMENTS-ANALYSIS Table 1 provides and analysis summarizing the year to year change in the Government-Wide net assets reported for the City of Dublin. By definition the "net assets" are represented as the difference between total assets and total liabilities. TABLE 1: SUMMARY OF NET POSITION June 30, 2016 and 2015 Governmental Activities June 30, 2016 June 30, 2015 $Change % Change Item Current and other assets 228,952,110 203,229,734 25,722,376 12.7% Notes receivable (See Note5) 14,614,947 9,632,631 4,982,316 51.7% OPEB asset (Note 12) 996,376 (4,647) 1,001,023 -21541.3% Capital assets 466,309,644 450,582,357 15,727,287 3.5% Total Assets 710,873,077 663,440,075 47,433,002 7.1% Deferred Outflows ofResources 1,997,928 1,067,859 930,069 87.10% Current liabilities 23,586,470 21,175,785 2,410,685 11.4% Noncurrent liabilities 17,787,418 13,939,533 3,847,885 27.6% Total Liabilities 41,373,888 35,115,318 6,258,570 17.8% Deferred Inflows of Resources 1,216,310 2,645,492 (1,429,182) -54.0% Net investment in capital assets 460,963,292 444,832,546 16,130,746 3.6% Restricted 97,592,438 74,738,217 22,854,221 30.6% Unrestricted 111,725,077 107,176,361 4,548,716 4.2% (See Note 8 to Financials for Classification) Total Net Assets 670,280,807 626,747,124 43,533,683 6.9% As illustrated in the above table, the City's net position increased by $43.5 million (6.9%) during FY 2015-16. This is primarily due to the following: • Total assets increased approximately $47.4 million, due primarily to increases in cash and investments and accounts receivable, which are part of current assets, and in capital assets. Cash and investments in the Dublin Crossing and Public Facility Fees funds increased by $15 million and $2 million, respectively, as large one-time development payments were received, in addition to numerous smaller payments. Accounts receivable in the General Fund increased by $4 million, due to the accrual of the triple flip (sales tax) close out payment for the FY, which was received after the end of the FY. Capital assets increased by 15.7 million (3.5%) due primarily to significant progress on capital improvement projects, including $20.8 million spent on the Emerald Glen Aquatics Complex and $1.5 million on the Fallon Sports Park Phase II, both of which are projected to be complete in mid-2017. Notes receivable increased in the Affordable Housing fund, as the City committed to lending a total of $6.4 million for the Veterans Housing Apartments project, of which $6 million has been funded as of June 30, 2016. 6 • Total liabilities also increased in FY 2015-16, with a net difference of $6.3 million over the prior year. Current liabilities primarily represent obligations outstanding for current operations (accounts payable), capital projects (such as retention payable), deferred revenue, and deposits held. Accounts payable increased by $4.9 million due primarily to activity related to construction projects. On the other hand, deposits held decreased by $2.3 million due to several large cash bonds from developers being refunded during the year, as those projects were deemed complete. The increase in Noncurrent liabilities was due to the increase of the City's Net Pension Liability by $2.3 million as well as the new booking of the City's share of Alameda County Fire Department's OPEB obligation (see Note 14). • The City's $461.0 million in capital assets represents 68.8% of the total reported net assets. Capital asset investments include the City's investments in land, infrastructure, buildings, and equipment. As the City uses these capital assets to provide current services to residents, the assets are not available for future spending. The change in annual capital assets reflects both the addition of capital assets (including construction in progress), less accumulated depreciation. • Restricted assets, including the Affordable Housing Fund, impact fee funds and grant funds, are resources that have external restrictions on their use. In FY 2015-16 the City's restricted assets increased by $22.9 million. The Affordable Housing Fund balance increased $11.9 million due primarily to the prior period adjustment, as the City changed its accounting policy related to loans receivable in FY 2015-16 (see notes to financial statement no.IN). The collection of impact fees for specific development projects, notably in the Public Facility Fees Fund and Traffic Impact Fees Fund, as well as in the Public Art Fund (Special Revenue), also contributed to the increase of $13.3 million in the restricted assets. These funds are restricted to specific capital improvement use. Approximately $111.7 million of the City's total assets (an increase of $4.5 million over the prior year) are unrestricted and may be used to meet the City's ongoing obligations to the community and to creditors. The bulk of unrestricted assets are attributable to portions of the General Fund balance that are already committed and assigned for specific purposes, in accordance with the City's Fund Balance and Reserves Policy. 7 GOVERNMENTAL ACTIVITIES Table 2 below provides a summary of major program expense categories, program revenues used to fund specific expenses, and general City revenues available for funding all City programs. The information presented here provides detail behind the numbers shown in the Summary of Net Position (Table 1). TABLE 2: SUMMARY OF CHANGES IN NET POSITION June 30, 2016 and 2015 June 30, 2016 June 30, 2015 $Change % Change Revenues Program Revenues Charges For Services 26,051,835 21,569,439 4,482,396 20.8% Operating Contributions & Grants 1,629,137 955,677 673,460 70.5% Capital Grants & Contributions 38,433,119 21,931,981 16,501,138 75.2% Total Program Revenue 66,114,091 44,457,097 21,656,994 48.7% General Revenues Property Taxes 33,598,601 29,437,951 4,160,650 14.1% Special Assessments Taxes 1,359,212 1,264,204 95,008 7.5% Sales Taxes 22,070,647 19,211,823 2,858,824 14.9% Other Taxes 6,606,016 6,159,654 446,362 7.2% Investment income, unrestricted 2,937,999 550,272 2,387,727 433.9% IntergovernmentaL unrestricted 1,825,410 2,428,248 (602,838) -24.8% Other general revenues 1,819,260 735,139 1,084,121 147.5% Total General Revenue 70,217,145 59,787,291 10,429,854 17.4% Total Revenues 136,331,236 104,244,388 32,086,848 30.8% Expenses Governmental activities: General government 19,280,680 10,774,480 8,506,200 78.9% Police 18,316,420 15,325,113 2,991,307 19.5% Fire 14,725,476 12,198,769 2,526,707 20.7% Public works 13,883,008 15,336,225 (1,453,217) -9.5% Park and community services 14,625,459 12,149,716 2,475,743 20.4% Economic development 555,564 679,313 (123,749) -18.2% Community development 11,410,946 5,713,196 5,697,750 99.7% Total Governmental Activites 92,797,553 72,176,812 20,620,741 28.6% Increase In Net Position 43,533,683 32,067,576 11,466,107 35.8% Net Position -Beginning of Year 626,747,124 594,679,548 32,067,576 5.4% Net Position -End of Year 670,280,807 626,747,124 43,533,683 6.9% 8 As shown in Table 2, revenues from all sources totaled $136.3 million and expenses for all City programs totaled $92.8 million in FY 2015-16. The City's net position increased $43.5 million, compared to $32.1 million in the prior year: that change is due predominantly to increased revenue from Property and Sales taxes, revenues related to development projects, unrealized gains from investments and revenue from recreation programs. Revenues Overall revenues increased $32.1 million, or 30.8%, in FY 2015-16 compared to the prior year. Changes included: • Charges for Services increased $4.5 million due mainly to the effect of the City changing its accounting policy related to loans receivable in FY 2015-16. As a result of the change, there was a $4.9 million ofrevenue recognized in Affordable Housing fund for the year. • Capital Grants and Contributions increased $16.5 million due to increased one-time revenues (Community Benefit Payments), public facility fees, traffic impact fees, fire impact fees and public art in-lieu fees. • Property Taxes increased $4.2 million, resulting from an increase to overall assessed property valuations, and the incorporation of some recapture of previous values lost during the recession. • Sales Taxes increased $2.9 million, due to strong growth in the auto sales, consumer spending, and building and construction sectors. • Investment income (unrestricted) increased $2.4 million, due primarily to the booking of a $1.9 million unrealized gain on investments at the end of FY 2015-16. • Other general revenue increased due mostly to several one-time general reimbursements for street projects, library improvement projects and an increase to the leased property rate. Expenses Total expenses increased $20.6 million, or 28.6% in FY 2015-16 compared to the prior year. The increase in expenses was in line with the increase in revenue. The following factors contributed to the overall mcrease: • General Government expenses increased by $8.5 million due primarily to a large one-time prepayment of the City's share of Alameda County Fire's OPEB liability during the year. • Police expenses increased by $3 million due to increased costs charged by Alameda County, fuel expenses, internal service charges and acquisitions of police vehicles during FY 2015-16. • Fire expenses increased by $2.5 million due primarily to the first time City's OPEB obligation recognition of $2.1 million for the Alameda County Fire Department (see Note 14) in addition to increase in internal service charge for FY 2015-16. • Public Works expenses decreased by $1.5 million as a result of large expenses in the prior year that did not reoccur in FY 2015-16, related to work required for the newly acquired buildings last year. In addition, the department had lower internal service charges, and lower staff costs due to vacancies that occurred during the year. 9 • Parks and Community Services expenses increased $2.5 million as a result of constructions costs for the new Camp Parks Military History Center, the acquisition of new cloud-based software for recreation class registration, and increased costs of providing various recreational services , including sports and childcare programs, and City-sponsored events. • Community Development expenses increased $5. 7 million due primarily to the new accounting policy related to loans receivable in FY 2015-16 . During the year, the City lent approximately $5 .5 million to fund new Veterans Housing Apartment project which increased the expense . Revenues and Expenses by Category The following chart presents the Government-Wide FY 2015-16 revenues in a pie chart format (in thousands). Approximately 88% of the total revenue is related to four sources: 1) Capital Grants and Contributions, 28%; 2) Property taxes , 25%; 3) Charges for Services , 19%; and 4) Sales tax, 16%. This is relatively consistent with the prior year. Sales Taxes Other Taxes $6,606, 5% $22,071, 16% _____ _ Property Taxes $33,599, 25% Investment Income $2 938 2% ' ' /Intergovernmental $1,825, 2% Other General Revenues $1,819, 1% 10 Charges for Services $26,052, 19% Operating Grants & Contributions $1,629, 1% Capital Grants & Contributions $38,433, 28% Government-Wide expenses in FY 2015-16 are shown below in the same pie chart format (in thousands). Of the $92.8 million in total expenses, General Government and Police are the largest program costs , making up a combined 41 % of the total. Fire , Parks & Community Services and Public Works follow at 16%, 15%, and 15%, respectively. Community Development $11,403, 12% Parks & Community Services $14,752, 16% Public Works $13,875, 15% FUND FINANCIAL STATEMENTS Economic Development $554, 1% General Government $19,174, 21% Fire Services $14,725, 16% Police ___ $18,315, 19% 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 FY. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of Governmental funds is narrower than that of the Government-wide financial statements , it is useful to compare the information presented for Governmental funds with similar information presented for governmental activities in the Government-wide financial statements . By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the Governmental fund balance sheet and Governmental fund statement of revenues , expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between Governmental funds and governmental activities. 11 The City maintains fifty-two (52) 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 ten funds: General Fund; Affordable Housing Fund; four Capital Project Funds (General Improvement Projects; Community Improvement Projects; Parks Projects; Streets Projects); and four Impact Fee Funds (Public Facilities Impact Fees, Fire Impact Fees, Traffic Impact Fees, and Dublin Crossings Contribution). These funds either qualify or the City requested them to be classified as major funds due to their significance in the financing of new capital assets. Data from the other forty-two ( 42) Governmental funds are combined into a single aggregated presentation, labeled as Non-Major Governmental Funds. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for each of its Governmental funds. A budgetary comparison statement has been provided for each Governmental fund to demonstrate compliance with this budget. Proprietary funds: The City maintains one type of Proprietary fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions and to build up reserves for future replacement of capital assets. These funds are also used to collect funds for future retiree medical costs, which are then transferred to a trust. In FY 2006-07, the City established an internal service fund component related to the pre-payment of the Public Employees Retirement System side fund obligation. Charges are made to departments based on payroll to fully recover advanced retirement payment over time. The City uses three 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. In FY 2015-16, the City added a fourth internal service fund to account for all costs related to information technology needs. 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 four internal service funds are combined into a single, aggregated presentation in the Proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Fiduciary funds: The Fiduciary fund section consists of six Agency Funds. The Dublin Boulevard Extension Agency Fund is an improvement district with outstanding bonds. The City's role is that of a trustee, or fiduciary, in collecting assessments and remitting bond payments. The City has no legal, contingent or moral obligation for the repayment of this debt and merely ensures that the assets received are used for their intended purposes. The City also provides a similar role for four Geologic Hazard Abatement Districts. California Public Resources Code section 25670 establishes that these Districts are a political subdivision of the State and not an agency or instrumentality of a local agency. The City contractually provides support to collect funds in a fiduciary capacity and may also arrange for activities funded by the Districts. The City has served as the fiscal agent for Alameda County Associated Community Action Program (ACAP) since 2011. The entity is a Joint Powers agency which the members have decided to proceed with closing out all activities. The City role was limited to holding funds collected from members and issuing payments as part of the close-out process. These fiduciary activities are excluded from the City's fund financial statements because these assets cannot be used to finance City operations. The activity for these funds, however, is provided for in a separate combining statement contained elsewhere in this report. 12 FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS At June 30, 2016, the City's governmental funds reported combined ending fund balances of $206.8 million, an increase of $34.3 million from the prior year. Table 3 below illustrates the net change in fund balances over the prior year for these funds. A discussion of the changes follows the table; individual and non-major funds may be found in the Supplemental. TABLE 3: GOVERNMENTAL FUND BALANCE CHANGES June 30, 2016 and 2015 June 30, 2016 June 30, 2015 $Change % Change General Fund 109 ,184,026 97,706,494 11,477,532 11.7% Affordable Housing Fund 25,526,669 13,607,857 11,918,812 87.6% Capital Improvement Funds 60,282,217 50,385,192 9,897,025 19.6% Other Governmental Funds 11,783,552 10,745,411 1,038,141 9.7% Total Governmental Funds 206, 776,464 172,444,954 34,331,510 19.9% GENERAL FUND The General Fund is the chief operating fund of the City. Approximately $0.8 million of the balance is non-spendable in the form of pre-paid expenses, advances to the Fire Impact Fee Fund and the PERS Side Fund, and an endowment fund related to a City-owned historic cemetery. At the end of FY 2015-16, the unassigned fund balance of the General Fund was $29 .9 million, representing approximately four months of budgeted FY 2016-1 7 expenditures, with total fund balance at $109 .2 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 FY 2015-16, General Fund revenues exceeded its expenditures by $13 .9 million, before transfers out. Compared to the prior year, General Fund revenues came in $6.9 million higher, from $76.1 million in FY 2014-15 to $82.9 million in FY 2015-16. This is due mainly to gains in Property Taxes and Sales Taxes, which made up 40.5% and 25.2%, respectively, of all General Fund revenues in FY 2015-16. The booking of unrealized gains also contributed $1.9 million to revenue at the end of the year. Expenditures in General Fund departments totaled $69.0 million in FY 2015-16, staying nearly $6.5 million under the final budget (not including transfers out), but coming in $12.4 million higher than actual expenditures in the prior year. This is primarily due to a $9.2 million one-time prepayment of the City's OPEB unfunded actuarial accrued liability for both the Alameda County Fire Department as well for City employees. Contracted service costs increased over the prior year approximately $2.2 million, and there was a new internal service charge of $1.1 million to account for expenses in the Information Technology internal service fund. Also in FY 2015-16, the General Fund contributed $2.4 million towards capital project expenditures, an increase of nearly $1 million over the prior year. The majority of this ($2 million) was for seed funding of the Information Technology Fund to cover technological upgrades planned over the next two years. 13 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 $25.5 million at June 30, 2016, an increase of nearly $12 million over the prior year. The change primarily reflects prior period adjustment resulting from the adoption of a new accounting policy related to loans receivable coupled with housing loan activities during the year (see Note lN). CAPITAL IMPROVEMENTS 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 underway. The four funds are: General Improvement Projects; Community Improvement Projects; Parks Projects; and Streets Projects. Funding for the expenditures in these funds occurs via transfers in from other funds. As of June 30, 2016 (as in the prior year), none of these funds carried a balance. The following Capital Impact Fee Funds are also reported: Public Facilities Fee Fund: This fund includes developer fees collected to develop parks and other public facilities. Total revenue collected in FY 2015-16 was $15.4 million, an increase of $6.5 million from the prior year, which was due primarily to some large one-time fee payments that were received during the year. This revenue is collected when developers process Final Maps, resulting in payments of park land dedication fees. Due to variations in project construction and acquisition timelines, expenditure patterns will fluctuate. Expenses in FY 2015-16 totaled $0.04 million in this fund. The balance is designated as restricted due to the fact that there are legal restrictions on its use, and it is not available for general purposes. Fire Impact Fees: This fund accounts for fees collected from new development to pay for the capital cost associated with the provision of Fire Services. Total revenue collected in FY 2015-16 was $0.4 million, trending with what was collected in the prior year. In FY 2011-12 the City collected an advance payment from the Jordan Ranch project, which will reduce fees collected as the property develops, since the developers will have credits in-lieu of paying cash at the time of receiving a building permit. In addition, collections will fluctuate with the normal variations in development activity. The negative fund balance associated with this fund represents the repayment of a long term advance, including interest, made from the City General Fund. In FY 2015-16 the amount owed to the General Fund decreased by $0.4 million after accounting for interest on the outstanding balance. The total balance owed to the General Fund, as of June 30, 2016 is $0.08 million. The balance is designated as restricted due to the fact that there are legal restrictions on its use, and it is not available for general purposes. Traffic Impact Fee Funds: These funds account for fees collected to construct major traffic improvements necessary to facilitate development. Fees are levied and collected on development in proportion to its impact on the transportation needs. Revenue collected in FY 2015-16 totaled $4.1 million (including interest earned), approximately $2.2 million less than was collected in the prior year. The City expended approximately $0.5 million to reduce outstanding obligations. In addition, approximately $1.1 million was transferred to the Streets Capital Project Fund for future project design expenses. This resulted in a net increase of fund balance by $2.5 million. The balance is designated as restricted due to the fact that there are legal restrictions on its use, and it is not available for general purposes. 14 NON-MAJOR FUNDS The City's non-major funds, which are all Special Revenue Funds, are presented in the basic financial statements in the aggregate. Total fund balance increased $0.04 million in these funds. Based on the designated use of the funds they can be arranged by function as shown in Table 4 below: TABLE 4: ANALYSIS OF FUND BALANCES- NON-MAJOR GOVERNMENTAL FUNDS, ARRANGED BY FUNCTION June 30, 2016 and 2015 June 30, 2016 June 30, 2015 $Change % Change Function Public Safety 894,058 937,415 (43,357) -4.6% Transportation 5,135,829 4,134,387 1,001,442 24.2% Environmental 205,738 1,041,709 (835,971) -80.2% Parks, Culture, Arts 2,898,546 3,338,687 (440,141) -13.2% Heahh & Welfare 191,624 88,326 103,298 117.0% Maintenance Districts 1,457,757 1,204,887 252,870 21.0% TOTAL FUND BALANCE 10,783,552 10,745,411 38,141 0.4% The full fund balances of these Special Revenue Funds are legally restricted to use under the programs indicated in the Table above, and are not available for general purposes. The Transportation category shows an increase in fund balance due to a higher distribution of taxes for improvements on streets and roads. The decrease in Environmental balances is largely due to capital expenditures for the Storm Drain Bypass Project. More information about these aggregated non-major funds can be found in the combining statements following the required supplementary information. 15 GENERAL FUND BUDGETARY HIGHLIGHTS A summary of the budgetary comparison schedule for the General Fund is shown in Table 5 below. The complete schedule, as required, is included in the supplementary information following the notes to the financial statements. TABLE 5: SUMMARY OF GENERAL FUND ORIGINAL AND FINAL BUDGET AND ACTUAL Period Ending June 30, 2016 Budget Amounts Actual Variance from Or!ginal Final Amount Final Budget REVENUE Taxes 56,930,475 58,558,185 61,143,442 2,585,257 Intergovernmental 198,620 198,620 324,075 125,455 Licenses and permits 3,123,692 5,036,061 6,139,420 1,103,359 Charges for services 7,899,809 8,702,609 10,130,794 1,428,185 Use of money & property 1,409,264 1,409,264 4,052,725 2,643,461 Fines and forfeitures 109,932 109,932 116,016 6,084 Other revenue 1,034,095 847,963 1,021,569 173,606 Total Revenue 70,705,887 74,862,634 82,928,041 8,065,407 EXPENDITURE General government 8,125,555 15,844,138 15,753,512 90,626 Police 17,542,644 18,144,652 17,647,757 496,895 Fire 12,172,265 12,288,489 11,923,462 365,027 Public Works 6,994,018 7,245,373 6,869,460 375,913 Parks and Community Services 11,819,671 12,681,545 10,749,113 1,932,432 Economic Development 1,118,816 1,287,943 604,777 683,166 Community develo2ment 5,607,316 6,034,439 5,499,222 535,217 Total Expenditure 63,380,285 73,526,579 69,047,303 4,479,276 OTHER FINANCING SOURCES (USES} Transfer in 5,801 5,801 Transfer out {8,366,2922 {12,709,4962 {2,409,0072 10,300,489 Total other financing sources (uses) (8,366,292) (12,709,496) (2,403,206) 10,306,290 NET CHANGE IN FUND BALANCE (1,040,690) (11,373,441) 11,477,532 22,850,973 Over the course of the year, revisions were made to the City budget with adjustments that generally fall into one of the following three categories: • Adjustments to carry over operating budgets from the prior year. • Adjustments to carry over capital expenditure budgets, typically in the form of transfers out to capital improvement funds, from the prior year. • Adjustments to revenue and expenditure budgets based on current economic conditions, new revenue sources, and/or operational spending needs after the original budget was adopted. 16 In the General Fund total actual revenues exceeded the final budget by $8.l million as ofJune 30, 2016, due mainly to the following factors: • Taxes: $2.6 million higher than budget. Property Tax came in $0.7 million higher than budget, as a result of overall growth property development in the City. Sales Tax came in $0.2 million higher, after satisfying sales tax sharing arrangements. Property Transfer Tax came in $0.5 million higher, linked to a high volume of home sales in the community. High hotel occupancy and increased room rates brought Transient Occupancy Tax revenue in $0.5 million over budget; and Garbage and Cable franchise fee revenue came in $0.7 million above budget, due both to rate increases and expanded services. • Licenses and Permits: $1.1 million higher than budget. Building Permits came in $1.1 million higher as a result of the acceleration of development activity during FY 2015-16. It is important to note that these revenues are not long-term in nature, and that long-term forecasts incorporate a significant reduction in such development-related income. Because there is a lag between the receipt of revenue and the expense of related funds to provide the services, the City continues to maintain a Service Continuity Reserve (currently at $3 .0 million) to ensure that there are future funds to cover expenditures when development activity slows. • Charges for Service: $1.4 million higher than budget. The City received $0.5 million in revenue above the budgeted amount in reimbursement for services provided by Alameda County Fire Services at the Santa Rita Jail. Additionally, Parks and Community Services revenue for the sports programs, family programs and recreational activities outperformed budget estimates by a combined $0.6 million. • Other Revenue: $0.2 million higher than budget. This is primarily due to a catch-up reimbursement for library utility and janitorial services for the past four years. With the accelerated development in FY 2015-16 the City also received a number of smaller payments that were related to existing development agreements. General Fund expenditures came in $6.5 million lower than the final budget, reflecting overall savings across departments. The following is a discussion of the changes: • General Government: $2 million lower than budget. Unused salary contingencies (typically used for merit increases) resulted in approximately $0.5 million in budget savings in FY 2015-16. In addition, savings were realized in the administrative group due to unused budgets for the acquisition of machinery and equipment, which were carried over to the current fiscal year. Finally, contract services costs were $1.5 million lower than budget, for a variety of contracts that were opened via the purchase order process, with the work extending and/or being carried over to the current fiscal year. • Police Services: $0.5 million lower than budget. This is due to the fact that the police dispatch cost was not finalized by the Alameda County Sheriff Office by June 30; it will be reconciled in FY 2016-17. Police services also realized savings in fuel and vehicle maintenance costs. • Parks and Community Services: $1.9 million lower than budget. Some of the budget savings resulted from staff vacancies throughout part of the year, and services and supplies also came in lower than budget. Savings in Utilities reflects the City's movement to recycled water for parks maintenance. In addition, some budgets for small-scale maintenance projects and routine upgrades were not utilized until the beginning of the current fiscal year (e.g. dog park drainage and renovation, library equipment upgrades, and tree pruning at the Shannon Community Center.) • Economic Development: $0.7 million lower than budget. This was a result of the carryover budgets from the prior year for the Commercial Fa9ade Improvement Program, which the City is continuing into FY 2016-17, as well as to unused budgets for the Marketing and Branding Campaign which is also continued in to the current fiscal year. 17 • Community Development: $0.5 million lower than budget. The primary driver of budget savings in this department was the remaining budget for specific contracted services related to development. These fluctuate with the City's activities and with the timelines for projects, and are routinely carried over to the next budget year until the projects are closed. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City's investment in capital assets for its governmental activities, as of June 30, 2016, amount to $461 million (net of accumulated depreciation). These capital assets includes land and streets right of way, buildings, park and roadway improvements, vehicles and other equipment, and construction in progress, as summarized in Table 6 below. During FY 2015-16, the City's investment in capital assets increased by approximately $16 million (3.6%), due to additions to construction in progress. TABLE 6: SUMMARY OF INVESTMENT IN CAPITAL ASSETS June 30, 2016 and 2015 Gove mme ntal Activities June 30, 2016 June 30, 2015 $Change Land 171,301,925 171,301,925 Streets Right of Way 35,425,288 35,425,288 Construction in Progress 50,777,385 24,698,855 26,078,530 Infrastructure 386,792,065 386,792,065 Buildings and Improvements 75,790,206 75,790,206 Machinery and Equipment 15,002,735 14,835,774 166,960 Subtotal 735,089,604 708,844,113 26,245,490 Less: Accumulated Depreciation (268,779,9602 (258,261,756) (10,518,204) Total Net of Depreciation 466,309,644 450,582,357 15,727,286 % Change 0.0% 0.0% 105.6% 0.0% 0.0% 1.1% 3.7% 4.1% 3.5% The City continued its active Capital Improvement Program with significant progress made on a variety of community assets. A comprehensive list of all CIP expenditures during FY 2015-16 is presented in Table 7 below (this includes project costs that may not have any impact on changes to capital assets, such as repairs or planning costs). For more detailed information of capital assets balances, see Note 6 to the financial statements. 18 TABLE 7: SUMMARY OF CAPITAL IMPROVEMENT PROJECT ACTIVITY As of June 30, 2016 PROJECT NAME ACTUAL STATUS FY2015/16 GENERAL IMPROVEMENTS 666,477 Police Building Renovation 6,043 Suspended Police Services Building 519,527 In Progress Maintenance Yard Facility Improvements 34,922 In Progress Electronic Agenda System 67,423 Complete Civic Center ModifJCation Design &Construction 18,563 In Progress ADA Transition Plan -FY14/15 20,000 Complete COMMUNITY IMPROVEMENTS 117,104 Sidewalk Safety Repair -FY14/15 116,396 Complete Sidewalk Safety Repair -FY15/16 708 In Progress PARKS 23,469,847 Emerald Glen Park Recreation & Aquatic Complex 20,803,727 In Progress Dublin Crossing Community Park 42,625 In Progress Sean Diamond Park 155,656 In Progress Library Expansion -Center for 21st Cnty 10,761 In Progress Shannon Center Parking Lot Improvements 87,590 In Progress Fallon Sports Park Phase II 1,523,187 In Progress Public Art -Emerald Glen Recreation 35,967 In Progress Dublin Sports Ground Renovation 332,495 In Progress Jordan Ranch Neighborhood Park 384,803 In Progress Public Art -Fallon Sports Park 86,511 In Progress Shannon Park Water Play Area 6,525 Complete STREETS 3,652,808 Tassajara Road Realignment and Design 4,389 In Progress Village Pkwy_Brighton Traffic Signal 14,571 In Progress St. Patrick Way-Regional St to Golden Gate Dr. 33,666 In Progress City Wide Storm Drain Condition 39,022 In Progress Traffic Sign Inventory and Safety Review 35,931 In Progress City Wide Signal Communitcation Upgrade 84,100 In Progress City Irrigation Improvements 8,686 In Progress Amador Plaza Road Bicycle and Pedestrian 326,925 In Progress Dougherty Rd. Improve -Sierra Ln 1,035,921 In Progress Dublin Blvd -Sierra Ct to Dublin 105,655 In Progress Storm Drain Bypass San Ramon Rd 892,066 In Progress Storm Drain Trash Capture Project 31,558 In Progress Annual St Overlay Prog FY13/14 137,990 Complete Annual St Overlay Prog FY14/15 214,005 Annual Annual St Overlay Prog FY15/16 111,259 Annual Annual Slurry Seal Prog FY14/15 520,863 Annual Annual Slurry SealProg FY15/16 486 Annual Dublin Ranch St Lght Pole Paint (FY14/15) 32,465 Complete Dublin Ranch St Lght Pole Paint (FY15/16) 23,251 Annual TOTAL 27,906,237 19 Debt In FY 2012-13, the City entered into a lease financing arrangement to fund planned energy-efficient improvements through an Energy Services Performance Contract with Chevron Solutions. The total amount financed was $6.8 million, which was added to the City's long-term debt category, with an average repayment of $0.6 million annually for fourteen years. FY 2013-14 was the first year the City began to repay this debt. For more detailed information of debt balances and repayment schedules, see Note 7 to the financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The City is currently preparing its budget for FY 2017-18, which is the second year in a two-year budget cycle. Although Property Tax and Sales Tax have shown significant gains in the last two years, contract costs and ongoing maintenance of new facilities remains a concern in the long-term perspective. As discussed in the Transmittal Letter, the current level of revenue growth is not expected to continue as the City nears build-out. The most current 10-Year Forecast projects an operating deficit of $1.3 million by FY 2021-22, which could grow to $5.6 million by FY 2024-25. Accordingly, in the next budget cycle the City will focus not only on continuing to provide a high level of community service and maintain top- notch facilities, but to consider long-term budget balancing solutions while shoring up contingency reserves. Copies of the adopted Budget and Financial Plan are available online at www.dublin.ca.gov. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the financial position of the City for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the following address: City of Dublin, Finance Department, 100 Civic Plaza, Dublin, CA 94568. A copy of this financial report is also located at the City's website -www.dublin.ca.gov. 20 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2016 GOVERNMENT-WIDE FINANCIAL STATEMENTS STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES 21 CITY OF DUBLIN STATEMENT OF NET POSITION JUNE 30, 2016 ASSETS Current assets: Cash and investments (Note 3) Accounts receivable Accrued interest receivable Prep aids Total current assets Noncurrent assets: Notes receivable (Note 5) Net OPEB asset -City ofDublin (Note 1 lA) Capital assets (non-depreciable) (Note 6): Land Streets right of way Construction in progress Capital assets (depreciable) (Note 6): Infrastructure Building and improvements Vehicles and equipment Less accumulated depreciation Total capital assets Total noncurrent assets Total Assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pension (Note 10) LIABILITIES Current liabilities: Accounts payable Accrued wages and other payroll liabilities Deposits payable Contract retention payable Other payables Unearned revenue Compensated absences -Due within one year (Note lG) Long-term debt (Note 7): Due in one year Total current liabilities Non current liabilities: Claims payables (Note 12) Compensated absence (Note lG) Net OPEB obligation -Dublin Regional Fire Authority (Note 1 lB) Net OPEB obligation -Alameda County Fire Department (Note 14) Net pension liability (Note 10) Long-term debt (Note 7): Due in more than one year Total noncurrent liabilities Total Liabilities 22 Governmental Activities $218,162,133 10,073,465 511,837 204,675 228,952,110 14,614,947 996,376 171,301,925 35,425,288 50,777,385 386,792,065 75,790,206 15,002,735 (268,779,960) 466,309,644 481,920,967 710,873,077 1,997,928 18,586,047 512,183 2,939,902 57,625 179,421 190,086 692,096 429,110 23,586,470 36,393 296,613 326,581 2,060,000 10,150,589 4,917,242 17,787,418 41,373,888 CITY OF DUBLIN STATEMENT OF NET POSITION (Continued) JUNE 30, 2016 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pension (Note 10) NET POSITION (Note 8) Net Investment in capital assets Restricted for: Public safety Impact fee projects Highways and streets Health and welfare Culture and leisure Total restricted Unrestricted Total Net Position See accompanying notes to financial statements 23 1,216,310 460,963,292 894,058 63,697,369 6,256,383 26,261,264 483,364 97,592,438 111,725,077 $670,280,807 Governmental Activities: General government Police Fire Public works Park and community services Economic development Community development Total Governmental Activities General revenues: Taxes Property taxes Special assessment taxes Sales tax Other taxes Total Taxes Intergovernmental, unrestricted Miscellaneous Unrestricted investment earnings Total general revenues Change in Net Position Net position: Beginning of year Endofyear CITY OF DUBLIN STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2016 Charges for Ex.eenses Services $19,280,680 $5,209,378 18,316,420 362,054 14,725,476 1,633,056 13,883,008 2,698,767 14,625,459 2,931,553 555,564 11,410,946 13,217,027 $92,797,553 $26,051,835 See accompanying notes to financial statements 24 Pro~am Revenues Operating Capital Grants and Contributions Contributions and Grants $1,305,911 $38,278,688 2,500 134,521 2,200 132,979 23,705 102 53,226 128,424 $1,629,137 $38,433,119 Total Program Revenues $44, 793,977 364,554 1,633,056 2,835,488 3,088,237 102 13,398,677 $66,114,091 Net (Expense) Revenue and Changes in Net Position Governmental Activities $25,513,297 (17,951,866) (13,092,420) (11,047,520) (11,537,222) (555,462) 1,987,731 (26,683,462) 33,598,601 1,359,212 22,070,647 6,606,016 63,634,476 1,825,410 1,819,260 2,937,999 70,217,145 43,533,683 626,747,124 $670,280,807 25 This Page Left Intentionally Blank FUND FINANCIAL STATEMENTS The funds described below were determined to be Major Funds by the City in Fiscal Year 2015-2016. Individual non-major funds may be found in the Supplemental. The General Fund -is the governments primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Affordable Housing Special Revenue Fund -is used to account for in-lieu fees received from developers of properties, which can only be used for the design, development, and construction of citywide affordable housing projects and/or support of affordable housing programs. The General Improvements Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets, Parks, or Community Improvements projects. The Community Improvements Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would promote or enhance redevelopment, revitalization, beautification of the City's infrastructure and are not General Improvements, Streets or Parks related projects. The Parks Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's parks and facilities. The Streets Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's trails, highways, streets, roads, bridges, as well as street lighting, and storm drain systems. The Public Facilities Impact Fees Capital Projects Fund -is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of new public facilities within the City. The Fire Impact Fees Capital Projects Fund -is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of fire capital expansion projects within the City. The Traffic Impact Fees Capital Projects Fund -is used to account for impact fees received from developers of properties, which can only be used for the design, development and construction of street and highway projects which serve as part of the City's transportation network. The Dublin Crossing Contribution Capital Projects Fund -accounts for community benefit payments specific to the Dublin Crossings Project, separate from any developer impact fees generated by the project. 27 ASSETS Cash and investments (Note 3) Accounts receivable Accrued interest receivable Due from other funds (Note 4B) Notes receivable (Note 5) Advances to ISF PERS Side Fund (Note 4C) Advances to other funds (Note 4C) Prep aids Total Assets LIABILITIES Accounts payable Accrued wages and other payroll liabilities Deposits payable Contract retention payable Other payables Unearned revenue Due to other funds (Note 4B) Advances from other funds (Note 4C) Total Liabilities DEFERRED INFLOWS OF RESOURCES Unavailable revenue -accounts receivable Total Deferred Inflows of Resources FUND BALANCES (DEFICITS) (Note 8) Non-spendable Restricted Committed Assigned Unassigned Total Fund Balances (Deficits) Total Liabilities, Deferred Inflows of Resources and Fund Balances CITY OF DUBLIN GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2016 S£ecial Revenue Fund Affordable General Housing $112,073,425 $10,576,929 8,670,985 351,880 509,342 1,663,105 14,614,947 549,949 80,673 39,262 $123,586,741 $25,543,756 $10,654,666 $5,279 512,183 2,843,197 11,808 179,421 190,086 14,379,553 17,087 23,162 23,162 729,883 579,000 25,526,669 38,928,755 39,078,695 29,867,693 109,184,026 25,526,669 $123,586,741 $25,543,756 General Improvements Projects $230,710 $230,710 $230,710 230,710 $230,710 See accompanying notes to financial statements 28 CaEital Projects Funds Co= unity Improvements Parks Projects Projects $9,111 $5,893,857 $9,lll $5,893,857 $5,795 $5,893,857 3,316 9,111 5,893,857 $9,lll $5,893,857 Capital Projects Funds Public Fire Traffic Dublin Other Total Streets Facilities Impact Impact Crossing Governmental Governmental Projects Impact Fees Fees Fees Contribution Funds Funds $237,592 $26,162,969 $20,669,914 $14,447,100 $12,806,527 $203, 108, 134 181,110 869,490 10,073,465 2,495 511,837 1,663,105 14,614,947 549,949 80,673 39,262 $237,592 $26,162,969 $20,851,024 $14,447,100 $13,678,512 $230,641,372 $183,283 $1,043,655 $231,434 $18,248,679 512,183 $54,548 30,349 2,939,902 54,309 57,625 179,421 190,086 1,633,177 1,633,177 $80,673 80,673 237,592 80,673 1,043,655 54,548 1,894,960 23,841,746 23,162 23,162 729,883 26,162,969 19,807,369 14,392,552 12,956,922 99,425,481 38,928,755 39,078,695 {80,673} {l, 173,370} 28,613,650 26,162,969 {80,673} 19,807,369 14,392,552 11,783,552 206,776,464 $237,592 $26, 162,969 $20,851,024 $14,447,100 $13,678,512 $230,641,372 29 CITY OF DUBLIN Reconciliation of the GOVERNMENTAL FUNDS --BALANCE SHEET with the STATEMENT OF NET POSITION JUNE 30, 2016 Total fund balances reported on the governmental funds balance sheet Amounts reported for Governmental Activities in the Statement ofNet Position are different from those reported in the Governmental Funds above because of the following: CAPITAL ASSETS Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. ALLOCATION OF INTERNAL SERVICE FUND NET POSITION Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement ofNet Position Cash and investments Prepaid items Capital assets Accounts payable and accruals Interfund balance Capital lease ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES $15,053,999 165,413 47,864,988 (337,368) (579,877) (5,346,352) Revenues which are unavailable on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities. WNG-TERM ASSETS AND LIABILITIES The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds: Collective net pension liability, and related deferred outflows and inflows ofresources Net OPEB asset-City of Dublin 996,376 Net OPEB obligation -Dublin Regional Fire Authority (326,581) Net OPEB obligation -Alameda County Fire Department (2,060,000) Compensated absences (988,709) Non-current portion of general liability claims (36,393) NET POSITION OF GOVERNMENTAL ACTIVITIES See accompanying notes to financial statements 30 $206,776,464 418,444,656 56,820,803 23,162 (9,368,971) (2,415,307) $670,280,807 This Page Left Intentionally Blank CITY OF DUBLIN GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2016 Special Revenue Fund CaEital Projects Funds General Community Affordable Improvements Improvements Parks General Housing Projects Projects Projects REVENUES Property taxes $33,598,601 Sales tax 20,938,826 Other taxes 6,606,015 Intergovernmental 324,075 Licenses and permits 6,139,420 Charges for service 10,130,794 $27,476 Interest 2,937,978 114,727 Use of property 1,114,747 5,637,117 Fines and forfeitures 116,016 Developer fees 2,272,774 Other revenue 1,021,569 128,424 Special assessments Total Revenues 82,928,041 8,180,518 EXPENDITURES Current: General Government 15,753,512 92,310 $15,921 $854 $4,967 Police 17,647,757 Fire 11,923,462 Public works 6,869,460 Park and community services 10,749,113 Economic development 604,777 Community development 5,499,222 5,802,027 Capital outlay: General improvements 666,478 Community improvements 117,104 Parks 23,469,847 Streets Total Expenditures 69,047,303 5,894,337 682,399 117,958 23!474,814 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 13,880,738 2,286,181 ~682,399} ~117,958} ~23,474,814} OTHER FINANCING SOURCES (USES) Transfers in (Note 4A) 5,801 666,477 117,104 23,469,847 Transfers (out) (Note 4A) (2,409,007} Total Other Financing Sources (Uses) ~2,403,206} 666,477 117,104 23,469,847 NET CHANGE IN FUND BALANCES 11,477,532 2,286,181 (15,922) (854) (4,967) BEGINNING FUND BALANCES (DEFICIT) AS ADIDSTED (NOTE lN) 97,706,494 23,240,488 15,922 854 4,967 ENDING FUND BALANCES (DEFICIT) $109,184,026 $25,526,669 See accompanying notes to fmancial statements 32 Capital Projects Funds Public Fire Traffic Dublin Other Total Streets Facilities Impact Impact Crossing Governmental Governmental Projects Impact Fees Fees Fees Contribution Funds Funds $33,598,601 $1,131,821 22,070,647 6,606,015 2,979,446 3,303,521 6,139,420 3,688,111 13,846,381 $346,254 $172,613 $11,277 107,091 3,689,940 6,751,864 174,855 290,871 15,091,483 $390,513 3,969,043 15,000,000 516,809 37,240,622 $21,500 152,362 1,323,855 1,359,214 1,359,214 21,500 15,437,737 390,513 4,141,656 15,011,277 10,109,709 136,220,951 579 497,296 3,745,519 20,110,958 239,233 17,886,990 342,152 12,265,614 1,042 1,745,821 8,616,323 42,072 10,791,185 604,777 47,425 11,348,674 666,478 117,104 23,469,847 3,652,808 3,652,808 3,652,808 42,072 579 498,338 6,120,150 109,530,758 (3,631,308) 15,395,665 389,934 3,643,318 15,011,277 3,989,559 26,690,193 3,652,808 27,912,037 {22,897,019} {l,096,116} {549,791} (2,951,418} (29,903,351} 3,652,808 (22,897,019} (1,096, 116} (549,791} (2,951,418} (1,991,314} 21,500 (7,501,354) 389,934 2,547,202 14,461,486 1,038,141 24,698,879 (21,500} 33,664,323 {470,607} 17,260,167 {68,934} 10,745,411 182,077,585 $26,162,969 {$80,673) $19,807,369 $14,392,552 $11,783,552 $206,776,464 33 CITY OF DUBLIN Reconciliation of the NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS with the STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2016 The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis. NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS Amounts reported for governmental activities in the Statement of Activities are different because of the following: CAPITAL ASSET TRANSACTIONS Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense. Capitalized expenditures are therefore added back to fund balance Gain on disposal is added back to fund balance Depreciation expense is deducted from the fund balance. The amount excludes the depreciation of$2,664,036 for Internal Service Funds ACCRUAL OF NON-CURRENT ITEMS The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change): Compensated absences Claims liability Collective net pension liability OPEB asset -City of Dublin OPEB obligation -Dublin Regional Fire Authority OPEB obligation -Alameda County Fire Department ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds. The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities. Change in Net Assets -All Internal Service Funds CHANGE IN NET POSITIONS OF GOVERNMENTAL ACTIVITIES See accompanying notes to financial statements 34 $24,698,879 26,282,439 3,532 (8, 178,059) (35,457) 118,107 46,098 1,001,023 591 (2,071,903) 1,668,433 $43,533,683 CITY OF DUBLIN GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Budgeted Amounts Original Final REVENUES Property taxes $31, 786,036 $32,913,746 Sales tax 20,236,439 20,736,439 Other taxes 4,908,000 4,908,000 Intergovernmental 198,620 198,620 Licenses and permits 3,123,692 5,036,061 Charges for services 7,899,809 8,702,609 Interest 466,191 466,191 Use of property 943,073 943,073 Fines and forfeitures 109,932 109,932 Other revenue 1,034,095 847,963 Total Revenues 70,705,887 74,862,634 EXPENDITURES Current: General government 8,125,555 15,844,138 Police 17,542,644 18,144,652 Fire 12,172,265 12,288,489 Public works 6,994,018 7,245,373 Park and community services 11,819,671 12,681,545 Economic development 1,118,816 1,287,943 Community development 5,607,316 6,034,439 Total Expenditures 63,380,285 73,526,579 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 7,325,602 1,336,055 OTHER FINANCING SOURCES (USES) Transfers in (Note 4A) Transfers (out) (Note 4A) (8,366,292) (12, 709,496) Total Other Financing Sources (Uses) (8,366,292) (12, 709,496) NET CHANGE IN FUND BALANCE ($1,040,690) ($11,373,441) BEGINNING FUND BALANCE ENDING FUND BALANCE See accompanying notes to financial statements 35 Actual Amounts $33,598,601 20,938,826 6,606,015 324,075 6,139,420 10,130,794 2,937,978 1,114,747 116,016 1,021,569 82,928,041 15,753,512 17,647,757 11,923,462 6,869,460 10,749,113 604,777 5,499,222 69,047,303 13,880,738 5,801 (2,409,007) (2,403,206) 11,477,532 97,706,494 $109,184,026 Variance with Final Budget Positive (Negative) $684,855 202,387 1,698,015 125,455 1,103,359 1,428,185 2,471,787 171,674 6,084 173,606 8,065,407 90,626 496,895 365,027 375,913 1,932,432 683,166 535,217 4,479,276 12,544,683 5,801 10,300,489 10,306,290 $22,850,973 CITY OF DUBLIN AFFORDABLE HOUSING SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Budgeted Amounts Original Final Actual Amounts REVENUES: Interest Loan repayment Charges for services Developer fees Other revenue Total Revenues EXPENDITURES: Current: General government Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in (Note 4A) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE, AS ADJUSTED (NOTE IN) ENDING FUND BALANCE $57,796 $57,796 37,512 37,512 1,370,000 2,370,000 1,465,308 2,465,308 29,550 109,550 732,397 7,303,932 761,947 7,413,482 703,361 (4,948,174) 6,600 6,600 6,600 6,600 $709,961 ($4,941,5742 See accompanying notes to financial statements 36 $114,727 5,637,117 27,476 2,272,774 128,424 8,180,518 92,310 5,802,027 5,894,337 2,286,181 2,286,181 23,240,488 $25,526,669 Variance with Final Budget Positive (Negative) $56,931 5,637,117 (10,036) (97,226) 128,424 5,715,210 17,240 1,501,905 1,519,145 7,234,355 (6,6002 (6,6002 $7,227,755 PROPRIETARY FUNDS Proprietary funds account for City operations :financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. 37 ASSETS Current Assets: Cash and investments (Note 3) Prepaid items Total current assets Noncurrent Assets: Capital assets (Note 6): Land Construction in progress Building and improvements Vehicles and equipment CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30, 2016 Less: accumulated depreciation Total noncurrent assets Total Assets LIABILITIES Current Liabilities: Accounts payable and accruals Due to other funds (Note 4B) Capital lease (Note 7) Total current liabilities Non-Current Liabilities: Capital lease (Note 7) Advances from other funds (Note 4C) Total Liabilities NET POSITION (Note 8) Net investment in capital assets Unrestricted Total Net Position See accompanying notes to financial statements 38 Governmental Activities- Intemal Service Funds $15,053,999 165,413 15,219,412 10,774,792 3,440,836 63,094,195 6,705,847 (36,150,682) 47,864,988 63,084,400 337,368 29,928 429,110 796,406 4,917,242 549,949 6,263,597 42,518,636 14,302,167 $56,820,803 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2016 OPERATING REVENUES Charges for services Interest Other revenue Total Operating Revenues OPERATING EXPENSES Supplies and services OPEB expenses Depreciation Interest and fiscal charges Total Operating Expenses Operating Loss NONOPERATING REVENUES (EXPENSES) Interest income Gain from sales of property Total Nonoperating Revenues Loss Before Transfers Capital contributions Transfer in (Note 4A) Transfer out (Note 4A) Change in net position Net Position-Beginning of year Net Position-Ending of year See accompanying notes to financial statements 39 Governmental Activities- Intemal Service Funds $4,994,607 760 499,725 5,495,092 1,402,152 1,838,833 2,664,036 147,195 6,052,216 (557,124) 110,285 10,670 120,955 (436,169) 113,288 2,000,000 (8,686) 1,668,433 55,152,370 $56,820,803 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2016 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from other funds Payments to suppliers and service providers Interest Other revenues Net cash flows from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payments from other funds Payments to other funds Cash Flows from Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest paid on capital lease Capital lease repayment Purchase of capital assets Proceeds from sales of capital assets Cash Flows from Capital and Related Financing Activities CASH FLOWS FROM INVESTING ACTIVITIES futerest received Cash Flows from Investing Activities Net Cash Flows Cash and investments at beginning of year Cash and investments at end of year Reconciliation of operating loss to net cash provided by operating activities: Operating loss Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation Interest and fiscal charges Change in assets and liabilities: Accounts receivable Prepaid items Accounts payable and accruals Net cash flows from operating activities NON-CASH TRANSACTIONS Capital contributions See accompanying notes to financial statements 40 Governmental Activities- Internal Service Funds $5,201,637 (3,408,040) 760 499,725 2,294,082 2,029,928 (376,742) 1,653,186 (147,195) (403,459) (183,396) 23,943 (710,107) 110,285 110,285 3,347,446 11,706,553 $15,053,999 ($557,124) 2,664,036 147,195 167,527 (125,910) (1,642) $2,294,082 $113,288 FIDUCIARY FUNDS Agency funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The financial activities of these funds are excluded from the Entity-wide financial statements, but are presented in separate Fiduciary Fund financial statements. 41 CITY OF DUBLIN FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2016 ASSETS Cash and investments (Note 3) Accounts receivable Due from trustee Total Assets LIABILITIES Accounts payable Due to trustee Due to bondholders Total Liabilities See accompanying notes to financial statements 42 Agency Fund $5,291,214 10,907 2,721 $5,304,842 $6,362 5,289,890 8,590 $5,304,842 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The fmancial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and fmancial reporting principles. Significant accounting policies are summarized below: A. Reporting Entity The City is a residential community with a significant regional commercial base, located in the TriValley area of Alameda County, California at the crossroads of Interstate Freeways 580 and 680. The City was incorporated as a municipal corporation on February 1, 1982. The total population estimate published by the California Department of Finance for January 1, 2016 was 57,349. This figure includes prisoners housed at the Alameda County Sheriffs Department Santa Rita Jail and at the Federal Correctional Institute. The City of Dublin was ranked based on total population at #156 out of 482 cities within California. The City operates under the Council-Manager form of government, with five elected Council members served by a full-time City Manager and staff. At June 30, 2016, the City's staff was comprised of 85 authorized permanent employees who were responsible for City-provided services. The City provides many traditional municipal services through contracts with both public and private agencies. Approximately 131.85 contract employees provide a variety of municipal services from City facilities. As of June 30, 2016, the City had approximately 105 temporary and seasonal personnel that were on active payroll status. B. Basis of Presentation The City's Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and fmancial reporting standards followed by governmental entities in the U.S.A. These Standards require that the financial statements described below be presented. Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City). These statements include the financial activities of the overall City government, except for fiduciary activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and ( c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 43 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds. Separate statements for each fund category -governmental, proprietary, and fiduciary -are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. C. Major Funds Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds. The City reported the following major governmental funds in the accompanying financial statements: The General Fund -is the governments primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Affordable Housing Special Revenue Fund -is used to account for in-lieu fees received from developers of properties, which can only be used for the design, development, and construction of citywide affordable housing projects and/or support of affordable housing programs. The General Improvements Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets, Parks, or Community Improvements projects. The Community Improvements Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would promote or enhance redevelopment, revitalization, beautification of the City's infrastructure and are not General Improvements, Streets or Parks related projects. The Parks Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's parks and facilities. The Streets Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's trails, highways, streets, roads, bridges, as well as street lighting, and storm drain systems. 44 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Public Facilities Impact Fees Capital Projects Fund -is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of new public facilities within the City. The Fire Impact Fees Capital Projects Fund-is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of fire capital expansion projects within the City. The Traffic Impact Fees Capital Projects Fund -is used to account for impact fees received from developers of properties, which can only be used for the design, development and construction of street and highway projects which serve as part of the City's transportation network. The Dublin Crossing Contribution Capital Projects Fund -accounts for community benefit payments specific to the Dublin Crossings Project, separate from any developer impact fees generated by the project. The City also reports the following fund types: Internal Service Funds -Account for replacement of assets and internal charges collected for the purpose of funding retirement plan side-fund obligations, post-retirement healthcare activities, and the financing and funding for the replacements of vehicle, building and equipment, various information technology projects, and the energy efficiency capital lease project. These activities are provided to City departments on a cost- reimbursement basis. Fiduciary Funds -The City maintains one type of Fiduciary Funds -Agency Funds. The financial activities of these funds are excluded from the Government-wide financial statement, but are presented in separate Fiduciary Fund financial statements. Agency Funds are used to account for assets held by the City as an agent for the following purposes: The Dublin Boulevard Extension Assessment District is an Agency Fund, which is used to account for amounts held for debt service on the Dublin Boulevard Extension Project. The Agency Fund is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of operations. The City is not responsible for payment of the bonds and acts only as an agent to collect assessments, pay bondholders, and initiate foreclosure proceedings. The Associated Community Action Program (ACAP) is an Agency Fund. The City acts as the fiscal agent to collect and account for the contributions received and to coordinate administrative services leading to the agency ceasing its operation. ACAP is a Joint Powers Authority (JP A), whose members include the Alameda County and eleven of the thirteen incorporated cities in the County. (The cities of Berkeley and Oakland are not members). The JP A was formed to provide and administer social service related programs. The Agency fund is custodial in nature (assets equal liabilities) and therefore does not involve measurement ofresults of operations. The Fallon Village, Schaefer Ranch, Fallon Village Annex/Jordan Ranch, and Fallon Crossing Geological Hazard Abatement Districts (GHAD) are Agency Funds. Each fiscal year, the District Engineer prepares an Engineer's Report which includes the budget for the GHADs for that year. The annual budget consists of regular site monitoring, annual inspections, contract services for annual mitigation and repairs, and administrative costs. The funds collected through special assessment are placed into a dedicated reserve fund. The reserve fund is set aside to be used to mitigate and repair large, geologic hazards, such as landsides in the respective Subdivisions. 45 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I D. Basis of Accounting The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources. Those revenues susceptible to accrual at both the City-wide and Fund level are property, sales and franchise taxes, current service charges, and interest revenue. Fines and licenses and permits are not susceptible to accrual because they are not measurable until received in cash. Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Certain indirect costs are included in program expenses reported for individual functions and activities. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the government's business-type activities and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 46 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's internal service funds are charges to customers for sales and services. Operating expenses for internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. E. Property Tax Revenues Alameda County assesses properties and bills, collects, and distributes property taxes to the City. The County remits the entire amount paid and handles the collection of all delinquencies. The City receives proportionate shares of prior year collections including interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. The property tax assessments are formally due on November 1 and February I, and become delinquent after December 10 and April 10, respectively. Taxes become a lien on the property effective January 1 of the preceding year. F. Use of Restricted Resources When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as needed. G. Compensated Absences The City records a long-term compensated absences liability to recognize the financial effect of unused general leave and other accrued compensated leave. The liability will be paid from future resources primarily from the general fund. Compensated absences activities were as follows for the year ended June 30, 2016: Compensated General Leave Leave Total Beginning Balance $938,796 $14,456 $953,252 Additions 951,318 26,511 977,829 Payments (921,307) (21,065) (942,372) Ending Balance $968,807 $19,902 $988,709 Current Portion $678,165 $13,931 $692,096 47 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 J NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid costs in both government-wide and fund financial statements, using the consumption method. Prepaid costs in governmental funds are equally offset with nonspendable fund balance to indicate they do not constitute resources available for appropriation. Prepaids in governmental funds are treated using the consumption method, where the prepaid expenditure is recognized in the period in which the service is provided or the item is put into use. L Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles ( GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. J. New Funds In fiscal year 2015-2016, the City created the following new funds: The Measure B Grants -Established to account for transportational projects financed by grants, funded by an Alameda County voter increase in sales tax used for improvements on streets and roads. HCD Housing Related Parks Grant -Established to account for a Housing-Related Parks (HRP) grant funding from the Department of Housing and Community Development pursuant to the Housing and Emergency Shelter Trust Fund Act of 2006 (Proposition 1 C.) Information Technology-Established to account for all information and technology costs, including staffmg. K. Deferred Outflows/Inflows of Resources In addition to assets, the statement of fmancial position or balance sheet report is a separate section for deferred outflows of resources. This separate fmancial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position or balance sheet report is a separate section for deferred inflows of resources. This separate fmancial statement element, deferred iriflows of resources, represents an acquisition of net position or fund balance that applies to a future period( s) and so will not be recognized as an inflow of resources (revenue) until that time. 48 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs -other than quoted prices included within level 1 -that are observable for an asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for an asset or liability. M. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements Management adopted the provisions of the following Governmental Accounting Standards Board (GASB) Statements, which became effective during the year ended June 30, 2016. GASB Statement No. 72 -Fair Value Measurement and Application. The intention of this Statement is to enhance the comparability of financial statements among governments by requiring measurement of certain assets and liabilities at fair value using a consistent and more detailed definition of fair value and accepted valuation techniques. It also enhances fair value application guidance and related disclosures. GASB Statement No. 76-The Hierarchy of Generally Accepted Accounting Principles/or State and Local Governments. The objective of this statement is to reduce the GAAP hierarchy to two categories of authoritative GAAP from the four categories under GASB Statement No. 55. The statement is effective for the periods beginning after June 15, 2015, or the 2015-2016 fiscal year. GASB Statement No. 79 -Certain External Investment Pools and Pool Participants. The objective of this Statement is to address for certain external investment pool and their participants the accounting and financial reporting implications that result from changes in the regulatory provisions referenced by previous accounting and financial reporting standards. This statement is effective for the periods beginning after December 15, 2015, or the 2015-2016 fiscal year. N. Prior Period Adjustment The City changed its accounting policy related to loans receivable in fiscal year 2016. Rather than offsetting long-term loans receivable with unavailable revenue (deferred inflows of resources), loans receivable are now a component of fund balance. As a result, beginning fund balance in the Affordable Housing Special Revenue Fund has been adjusted and increased in the amount of $9,632,631. 49 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 2-BUDGETS AND BUDGETARY ACCOUNTING I The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: »-Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. »-The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution. »-The City Manager is authorized to transfer budgeted amounts between line items, provided that the transfer is within the same fund, regardless of the specific department activity. This include the authority to transfer from the General Fund budgeted contingency amounts that are approved by the City Council during the budget adoption. The City Manager is authorized to increase revenue and expenditure budget for various departmental functions, when the net budget impact is zero. »-Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. »-Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent with generally accepted accounting principles in the United States. »-The City Manager is authorized to increase the appropriations for the following fiscal year in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to the year-end, but are expected to be expended in the next year consistent with the original purpose. »-As part of the annual Budget adoption the City Council authorizes Staff to carry-over unexpended capital project appropriations, for those projects where work and expenditures will continue in the subsequent year. I NOTE 3 -CASH AND INVESTMENTS I The City's dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash as described under the policy section below. A. Policies California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City's cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California law, this collateral is held in a separate investment pool by another institution in the City's name and places the City ahead of general creditors of the institution. The City pools cash from all sources and all funds, except certain specific investments within funds and cash with fiscal agents, so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time. 50 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 3 -CASH AND INVESTMENTS (Continued) The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called security instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Individual investments are generally made by the City's fiscal agents as required under its debt issues. In order to maximize security, the City employs the Trust Department of a bank as the custodian of all City managed investments, regardless of their form. The City's investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income forthat fiscal year. B. Classification Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City agreements. City: Cash and investments Fiduciary Funds (separate statement): Cash and investments Total cash and investments Cash and investments as of June 30, 2016, consist of the following: Cash on hand Deposits with :financial institutions Investments Total cash and investments $218,162,133 5,291,214 $223,453,347 $5,291 20,654,017 202,794,039 $223,453,347 Proprietary fund type cash and investments are used in the preparation of the statement of cash flows as investments are not allocated to specific funds. Each of these funds' allocation of pooled cash and investments is considered cash and cash equivalents. 51 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 3 -CASH AND INVESTMENTS (Continued) I C. Investments Authorized by the California Government Code and the City's Investment Policy D. The City's Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City's Investment Policy where the City's Investment Policy is more restrictive. Minimum Maxinrum Maxinrum Maxinrum Credit Percentage Investment Authoriz.ed Investment Type Maturity Quality of Portfolio In One Issuer Negotiable Certificates ofDeposit 5years A-1 30% 20% Bankers' Acceptances 180 days A-1 40% 20% of Portfolio U.S. Treasury Bills and Notes 5years NIA No Limit No Limit U.S. Government Agency Securities 5years NIA 25% for callable 35% California Asset Management Program NIA NIA No Limit No Limit Commercial Paper 270days A-1 25% 20% of Portfolio Time Certificates ofDeposit lyear NIA 10% No Limit State Local Agency Investment Fund NIA NIA 75% No Limit Asset-Backed Securities NIA AA 20% 5% Medium-Term Notes 5years A 30% 5% Money Market Funds NIA AAA 20% No Limit Municipal Securities 5years A No Limit 0 Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity or earliest call date: Investment Type Asset-Backed Securities U.S. Treasury Notes Medium-Term Notes U.S. Government Agency Securities Local Agency Investment Fund California Asset Management Program Commercial Paper Money Market Funds Total Investments 12Months or less $3,009,114 3,364,663 17,013,635 42,777,952 12,497,128 2,942,905 101,774 $81,707,171 52 13 to 24 Months $3,569,046 2,501,660 6,218,195 21,183,631 $33,472,532 25 to 60 Months $5,478,756 35,999,718 19,481,195 26,654,667 Total $9,047,802 41,510,492 29,064,053 64,851,933 42,777,952 12,497,128 2,942,905 101,774 $87,614,336 $202,794,039 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 3 -CASH AND INVESTMENTS (Continued) The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, United States Treasury Notes and Bills, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations. At June 30, 2016, these investments matured in an average of 167 days. The City is a participant in the California Asset Management Program (CAMP). CAMP is an investment pool offered by the California Asset Management Trust (the Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act (California Government Code Sections 6500 et seq., or the "Act") for the purpose of exercising the common power of its Participants to invest certain proceeds of debt issues and surplus funds. The Pool's investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code. The City reports its investments in CAMP at the fair value amounts provided by CAMP, which is the same as the value of the pool share. At June 30, 2016, the fair value approximated is the City's cost. At June 30, 2016, these investments have an average maturity of 45 days. The City's investments include Asset-Backed Securities in the amount of $6,427,152 that are highly sensitive to interest rate fluctuations to a greater degree than already indicated above. E. Fair Value Hierarchy The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. 53 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 3 -CASH AND INVESTMENTS (Continued) The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2016: Investments By Fair Value Level: Asset-Backed Securities U.S. Treasury Notes Medium-Term Notes U.S. Government Agency Securities Local Agency Investment Fund Commercial Paper Total Investments Investments Measured at Amortized Cost: California Asset Management Program Money Market Funds Total Level 1 $41,510,492 $41,510,492 Level2 $9,047,802 29,064,053 64,851,933 42,777,952 2,942,905 $148,684,645 Total $9,047,802 41,510,492 29,064,053 64,851,933 42,777,952 2,942,905 190,195,137 12,497,128 101,774 $202,794,039 Investments classified in Level 1 of the fair value hierarchy are valued using quoted prices in active markets using IDSI Institutional Bond Quotes. U.S. Government agency securities, medium term notes, asset-backed securities, and commercial, classified in Level 2 of the fair value hierarchy, are valued using matrix pricing techniques maintained by various pricing vendors. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. The California Local Agency Investment Fund, classified in Level 2 of the fair value hierarchy, is valued based on the fair value factor provided by the Treasurer of the State of California, which is calculated as the fair value divided by the amortized cost of the investment pool. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by our custodian bank. 54 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 3 -CASH AND INVESTMENTS (Continued) F. Credit Risk G. Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The actual ratings as of June 30, 2016 were provided by Standard and Poor's investment rating system except as noted. The Local Agency Investment Fund was not rated as of June 30, 2016. Investment Type AAA/AAAm AA+ AA AA-A+ A A-1 Total Asset-Backed Securities $6,427,152 $6,427,152 U.S. Treasmy Notes $41,510,492 41,510,492 Medium-Tenn Notes 5,116,999 $2,792,531 $3,771,669 $7,346,321 $10,036,533 29,064,053 U.S. Government Agency Securities 64,851,933 64,851,933 California Asset Management Program 12,497,128 12,497,128 Commercial Paper $2,942,905 2,942,905 Money Marlee! Funds 101 774 101 774 Totals $19,026,054 $111,479,424 $2,792,531 $3,771,669 $7,346,321 $10,036,533 $2,942,905 157,395,437 Not rated: Asset-Backed Securities 2,620,650 State Local Agency Investment Fund 42,777,952 Total Investments $202, 794,039 Concentration of Credit Risk Included in the table at Note F above are the following significant investments in any one issuer other than U.S. Treasury securities, mutual funds, and external investment pools. Reporting Reported Unit Issuer Investment Tyee Amount Fntity-wide Federal Farm Credit Bank US Government Agency Securities $14,006,468 Federal Home Loan Bank US Government Agency Securities 18,439,295 Federal Home Loan Mortgage Corporation US Government Agency Securities 13,577,553 Federal National Mortgage Association US Government Agency Securities 18,828,617 55 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 4 -INTERFUND TRANSACTIONS A. Transfers Between Funds Transfers between funds during the fiscal year ended June 30, 2016 were as follows: Fund Making Transfer General Fund Capital Projects Funds: Public Facilities Impact Fees Fund Traffic Impact Fees Fund Dublin Crossing Contribution Fund Special Revenue Funds: Non-Major Funds Internal Service Funds: Energy Efficiency Internal Service Fund (A) To fund capital project expenditures Fund Receiving Transfers General Improvements Projects Capital Projects Fund Co=unity Improvements Projects Capital Projects Fund Parks Projects Capital Projects Fund Streets Projects Capital Projects Fund Information Technology Internal Service Fund Parks Projects Capital Projects Fund Streets Projects Capital Projects Fund General Improvements Projects Capital Projects Fund Parks Projects Capital Projects Fund General Fund Streets Projects Capital Projects Fund Parks Projects Capital Projects Fund General Improvements Projects Capital Projects Fund Streets Projects Capital Projects Fund (B) To fund the new Information Tecnology Internal Service Fund (C) To reimburse Affordable Housing Fund staffmg/administrative costs for the Community Development Block Grant B. Current Intelfund Balances Amount Transferred $133,733 (A) 117,104 (A) 87,590 (A) 70,580 (A) 2,000,000 (B) 2,409,007 22,897,019 (A) 1,096,116 (A) 519,527 (A) 30,264 (A) 24,542,926 5,801 (A) 2,477,426 (A) 454,974 (C) 13,217 (A) 2,951,418 8,686 (A) 8,686 $29,912,037 Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2016, the following funds have balances due to the General Fund: Due to other funds Non-Major Governmental Funds Internal Service Funds Total 56 $1,633,177 29,928 $1,663,105 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 4 -INTERFUND TRANSACTIONS (Continued) C. Advances Between Funds During the fiscal year 2007-2008, the General Fund made a long-term advance to the PERS Side Fund Internal Service Fund to prepay CalPERS for the City's Side Fund Obligation. The Side Fund was created in 2005 when CalPERS assigned agencies with less than 100 participants to a risk sharing pool. The City had an unfunded liability at the time the City was assigned to the pool. As part of CalPERS Employer Contribution Rate, the City was scheduled to pay 4.319% of payroll for the next 17 years to eliminate the current side fund obligation. The benefit of prepayment resulted in reduction of the Employer Contribution rate in fiscal year 2007-2008 from 15.894% to 11.575%. The advance from General Fund is repaid annually, calculated at the rate of 4.319% of the total salary and be recorded as an Internal Service Fund retirement benefit expenditure with an offset to reduce the General Fund long-term advance. During the 2004-2005 and 2005-2006 fiscal years, the General Fund advanced funds to the Fire Impact Fees Capital Projects Fund to aid in the financing of fire station construction projects. The advance will be repaid through future revenues of the Fire Impact Fees Fund. Interest accrues on the advance at a rate equal to the City's return on its investment portfolio. The following interfund balances existed at June 30, 2016: Advances from other funds PERS Side Fund Internal Service Fund Fire Impact Fees Capital Projects Fund Total I NOTE 5 -NOTES RECEIVABLE General Fund $549,949 80,673 $630,622 The following table summarizes the notes receivable outstanding as ofJune 30, 2016: First Time Homebuyer Loan Program Eden (Wicklow) Square Senior Affordable Housing Arroyo Vista Predevelopment/Construction Loan -Family Housing Arroyo Vista Predevelopment/Construction Loan -Senior Housing Veterans Family Apartment Development Loan Total $1,588,429 2,808,815 3,096,427 1,572,937 5,548,339 $14,614,947 Revolving Home Loans -As part of the City of Dublin First Time Homebuyer Loan Program (FTHLP), the City provides financial assistance, in the form of a deferred loan. The program targets first time homebuyers within a certain income range purchasing their first home in Dublin. Monthly payments of principal and interest are generally deferred until the homes are sold, or are in default. In certain situations the loan may also be due when the homeowners refinance their primary mortgage. The total outstanding amount due, including accrued simple interest at 3.5% per annum, as of June 30, 2016 was $1,588,429. As of June 30, 2016, there were no loans in default. 57 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 5 -NOTES RECEIVABLE (Continued) Details of the Revolving Home Loans as of June 30, 2016 were as follows: REPAYMENT OF ORIGINAL LOAN ACCRUED PRINCIPAL AND LOAN# LOAN DATE AMOUNT INTEREST INTEREST WAN BALANCE #07-01 2/16/2007 $39,915 $12,187 ($52,102) #07-03 3/30/2007 60,039 19,449 $79,488 #07-04 10/31/2007 50,000 15,171 65,171 #07-09 9/21/2007 26,036 8,058 34,094 #07-10 9/7/2007 49,536 14,846 (64,382) #07-11 10/12/2007 38,141 11,646 49,787 #07-12 10/8/2007 33,051 10,840 43,891 #07-14 10/2/2007 19,610 6,005 25,615 #07-15 12/4/2007 24,536 7,365 31,901 #07-16 12/28/2007 8,000 2,383 10,383 #07-18 2/29/2008 24,170 7,052 31,222 #07-20 5/30/2008 19,175 5,143 (24,318) #08-01 8/19/2008 25,377 6,995 32,372 #08-03 10/20/2008 33,750 8,823 (42,573) #08-05 2/3/2009 22,619 5,873 28,492 #08-06 2/11/2009 55,404 14,314 69,718 #08-07 4/10/2009 27,425 6,936 34,361 #08-08 6/30/2009 39,576 9,701 49,277 #09-02 9/29/2009 36,595 8,651 45,246 #10-02 1/26/2011 40,000 7,604 47,604 #10-03 5/6/2011 26,700 4,817 31,517 #11-01 12/9/2011 26,025 4,169 30,194 #11-02 10/14/2011 29,999 2,915 (32,914) #11-03 11/22/2011 30,839 4,972 35,811 #11-04 12/28/2011 35,249 5,561 40,810 #11-05 1/13/2012 29,999 4,687 34,686 #11-06 1/13/2012 36,415 5,690 42,105 #11-07 1/19/2012 36,682 5,710 42,392 #11-08 1/31/2012 35,249 5,447 40,696 #11-09 2/15/2012 36,671 5,613 42,284 #11-10 4/3/2012 38,586 5,733 44,319 #12-01 10/30/2012 29,999 3,853 33,852 #12-02 1/31/2013 40,000 4,780 44,780 #12-03 3/22/2013 36,749 4,216 40,965 #12-04 4/12/2013 36,749 4,142 40,891 #12-05 4/25/2013 35,249 3,926 39,175 #12-06 4126/2013 31,499 3,366 34,865 #12-07 5/15/2013 35,249 3,861 39,110 #12-08 5/10/2013 35,249 3,878 39,127 #12-09 4/25/2013 36,749 4,096 40,845 #13-01 7/31/2013 40,000 4,086 44,086 #13-02 8/30/2013 40,000 3,522 (43,522) #13-03 10/2/2013 40,000 3,845 43,845 #13-04 12/9/2013 40,000 3,584 43,584 #13-05 3/11/2014 36,888 2,978 39,866 $1,549,749 $298,491 ($259,811) $1,588,429 58 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 5 -NOTES RECEIVABLE (Continued) I Eden Senior Affordable Housing Loan -(Wicklow Square) -On September 23, 2002, the City selected Eden Housing, Inc. as the developer for the affordable senior housing at the site of the former library located at 7 606 Amador Valley Boulevard. This site also houses a senior center that the City constructed during fiscal year 2003-2004. On February 1, 2004, the City entered into an agreement and provided a loan in the amount of $2,248,248 to the Dublin Senior Limited Partnership to support the senior housing project. The interest on the outstanding principal balance of the loan is accrued at the rate of 3% simple interest per annum. The entire outstanding principal balance of the loan, together with the interest accrued, shall be payable in full on February 8, 2059, the 55th anniversary of the Initial Disbursement Date of February 18, 2004. Repayments commenced on June 1, 2006, and on the first day of each June, 60% of the Surplus Cash generated by the project during the previous calendar year are remitted to reduce the outstanding indebtedness. Any payment not paid when due shall bear interest at a rate equal to 10% annum from the due date until it is paid in full. The outstanding amount as of June 30, 2016 was $2,808,815. Arroyo Vista Predevelopment/Construction Loan -Family and Senior Projects -(Emerald Vista) -On June 1, 2011, the City entered into an agreement to provide a loan to Eden Dougherty, L.P., a California nonprofit public benefit corporation, with a not-to-exceed $7,600,000 principal amount in accordance to the Arroyo Vista Disposition and Development Agreement dated July 25, 2007 concerning the redevelopment of the real property located at 6700 Dougherty Road in the City of Dublin. The City agreed to provide a loan to Eden to assist in fmancing the development of the Family Project and Senior Project. The City determined that the development of the project is in the interests of health, safety and welfare of the residents of the City, and that the City fmancing 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 fmancing is either converted to a permanent loan or repaid in full, or (ii) twelve months following the date of issuance of the final certificate of occupancy or equivalent for the project; thereafter, the outstanding principal balance of the loan shall bear interest at a rate equal to three percent simple annual interest. Annual payments shall be due and payable on a residual receipts basis in accordance with the formula set forth in the note. The entire outstanding principal balance and accrued interest shall be paid in full on the earlier of (i) the fifty fifth anniversary of the date of issuance of the fmal certificate of occupancy or (ii) the fifty-seventh anniversary of the loan origination date. The City has the right to accelerate maturity date and declare all sums immediately due and payable to the City upon the occurrence of an event of developer default, including developer's failure to commence or complete construction of the project within times period specified in the note. At June 30, 2016, the outstanding amounts are $3,096,427 for the Family Project and $1,572,937 for the Senior Project. Veterans Family Apartment Development Loan -On October 1, 2015, the City entered into an agreement to provide a loan to Dublin Family, L.P ., a California limited partnership. The City entered into an agreement and provided a loan in the amount of $6,400,000 to the Dublin Family L.P. to build on the property a 66- unit affordable multifamily rental housing project consisting of 65 affordable rental housing units primarily for veterans and their families for very low and low income families, one resident manager's unit, and other related improvements. The only payment to be received is the accrued interest. The principal is not due until the maturity date. The entire outstanding principal balance of the loan, together with the interest accrued, shall be payable in full on June 1, 2070. The City has the right to accelerate maturity date and declare all sums immediately due and payable to the City upon the occurrence of an event of developer default, including developer's failure to commence or complete construction of the project within times period specified in the note. At June 30, 2016, the outstanding amount of the loan was $5,548,339. 59 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 6 -CAPITAL ASSETS I Capital assets, which include buildings, machinery and equipment, and infrastructure assets (roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and park improvements), are reported in the Governmental Activities columns of the Government-Wide Financial Statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 for general capital assets and $100,000 for infrastructure capital assets. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair market value on the date donated. Capital assets are depreciated over their estimated useful lives using the straight-line method. This means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets over the useful life of these assets. The amount charged to depreciation expense each year represents that year's pro rata share of the cost of capital assets. Depreciation of capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, and is reported on the Statement of Net Assets of the government-wide financial statements as a reduction in the book value of the capital assets. The City has assigned the useful lives listed below to capital assets. Infrastructure Building and Improvements Vehicles and Equipment 20-75 Years 20-38 Years 3-15 Years Capital assets include land, buildings, and equipment used in City operations. Infrastructure includes roads, bridges, curbs, sidewalks, drainage systems, street and traffic lights, park improvements and other improvements used by all citizens. 60 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 6 -CAPITAL ASSETS (Continued) A. Current Year Activities Capital asset activity during the fiscal year were as follows: Balance at Balance at Jlllle 30, 2015 Additions Retirements Transfers Jlllle 30, 2016 Governmental activities Capital assets not being depreciated: Land $171,301,925 $171,301,925 Streets Right of Way 35,425,288 35,425,288 Construction in Progress 24,698,855 $26,253,670 ($84,912) ($90,228) 50,777,385 Total capital assets not being depreciated 231,426,068 26,253,670 (84,912) (90,228) 257,504,598 Capital assets being depreciated: Infrastructwe 386,792,065 3 86, 792,065 Buildings and Improvements 75,790,206 75,790,206 Vehicles and Equipment 14,835,774 397,134 (320,401) 90,228 15,002,735 Total capital assets being depreciated 477,418,045 397,134 (320,401) 90,228 477,585,006 Less accumulated depreciation for: Infrastructure (218,989,178) (7,207,055) (226,196,233) Buildings and Improvements (34,725,503) (2,895,044) 3,532 (37,617,015) Vehicles and Equipment (4,547,075) (739,996) 320,359 (4,966,712) Total Accumulated Depreciation (258,261,756) (10,842,095) 323,891 (268, 779,960) Net governmental fund program Capital assets being depreciated 219,156,289 (10,444,961) 3,490 90,228 208,805,046 Governmental activity capital assets, net $450,582,357 $15,808,709 ($81,422) $466,309,644 61 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 6 -CAPITAL ASSETS (Continued) B. Project Commitments At June 30, 2016, the City had outstanding commitments with contractors for the following projects: Project Facility Construction Facility Modification Park Construction Park Improvements Street Improvements Street Repair/Maintenance Street Signal Improvements C. Capital Asset Contributions Commitment $7,385,135 329,099 12,455,850 217,393 10;325,726 1,867 196,950 Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. GASB Statement 34 requires that these contributions be accounted for as revenues at the time the capital assets are contributed. D. Depreciation Allocation Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or programs are as follows: Governmental Activities General Government $1,364,588 Police 304,701 Fire 438,268 Public Works 5,733,763 Parks and Community Service 2,861,349 Comnnmity Development 139,426 Total depreciation expense $10,842,095 I NOTE 7 -LONG TERM DEBT A. Current Year Transactions and Balances Balance at Due Within Balance at July 1,2015 Retirements June 30, 2016 One Year GOVERNMENTALACTIVITYDEBT 2012 Oievron Fnergy Capital Lease $5,749,811 ($403,459) $5,346,352 $429,110 Total Ci>vemmental Activity Debt $5,749,811 ($403,459) $5,346,352 $429,110 62 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 7 -LONG TERM DEBT (Continued) B. 2012 Chevron Energy Capital Lease c On June 12, 2012, City entered into an Energy Services Performance Contract with Chevron Energy Solutions to implement the recommended efficiency improvements in the City's ongoing efforts to reduce energy consumption and develop long-term cost savings through increased energy efficiency. The total project cost was estimated to be $7,430,976. City expects the full cost of improvements including interest can be offset through estimated energy savings. The project was funded through a combination of Lease Financing and Internal Service Fund reserves. The total amount financed by the bank was approximately $6,755,824, with interest rate fixed at 2.56% which occurred on October 1, 2012. The first payment was made on September 28, 2013. The financing is a lease arrangement with Bank of America holding title to the improvements being installed. Once all lease payments are made, improvements are fully owned by the City. The payments will be made over a fourteen-year period. The amount of annual lease payments is intended to produce consistent savings each year. Therefore, for payments in the initial years, when certain rebates and incentives are received, the payments will be higher. The average annual lease payment over the repayment period is estimated to be approximately $578,704 per year. The City anticipates that energy savings and incentives are projected to fully offset these costs. Debt Service Requirements Governmental Activities: Capital Lease Year ending June 30 Principal Interest 2017 $429,110 $136,867 2018 455,999 125,881 2019 396,728 114,208 2020 424,629 104,052 2021-2025 2,480,902 343,035 2026-2027 1,158,984 44,951 Total $5,346,352 $868,994 I NOTE 8 -NET POSITION AND FUND BALANCES A. Net Position Net Position is the excess of all the City's assets and deferred outflow of resources over all its liabilities and deferred inflow of resources, regardless of fund. Net Assets are divided into three captions. These captions apply only to Net Assets, which is determined only for proprietary funds and at the Govemment- wide level, and are described below: Net Investment in Capital Assets, describes the portion of Net Position which is represented by the current net book value of the City's capital assets. 63 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 8 -NET POSITION AND FUND BALANCES (Continued) I Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects and debt service requirements. Unrestricted describes the portion of Net Position which is not restricted to use. B. Fund Balances Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund's cash and receivables, less its liabilities. The City's fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint: Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and long-term interfund loans are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category. Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources. Committed fund balances have constraints imposed by resolution of the City Council which may be altered only by formal action (resolution) of the City Council to establish, modify, or rescind a fund balance commitment. The City Council commits fund balance through the adoption of a resolution prior to the end of the fiscal year. Once adopted, the limitation imposed by the resolution remains in place until similar action is taken to remove or revise the limitation. Only the highest level action (a resolution) can be considered a commitment for fund balance classification purposes. Assigned fund balances are amounts constrained by the City's intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. This category includes nonspendable when it is the City's intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed. Through a council resolution, the City Council has designated the City Manager to determine the amount of assigned Fund balance. Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds. In accordance with policies adopted by the City Council, the "Unassigned" fund balance represents a negative $2,197,354 associated equivalent to the unrealized loss on investments and a positive $32,059,246 based on goals to accommodate general cash flow. 64 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 8 -NET POSITION AND FUND BALANCES (Continued) c. Detailed classifications of the City's Fund Balances, as of June 30, 2016, are stated below: Major Fund• Affordable Public Facilities Fire Impact Traffic Impact Dublin General Housing Impact Fees Fees Fees Crossing Non-Major Fund Fund Fund Fund Fund Contribution Funds Total Non-Spendable: Prepaid Expenses $39,261 $39,261 Cemete:y Endowment 60,000 60,000 Long-Term Advance to Fire Impact Fee Fund 80,673 80,673 Long-Term Advance to PERS Side Fund 549,949 549,949 SubTotal Non-Spendable Fund Balance 729,883 729,883 Restricted for: Public Safety Programs $860,747 860,747 Street Maintenance and Construction 7,463,064 7,463,064 Health and Welfare Programs 675,017 675,017 Heritage Park M aintcnence 500,000 500,000 Recycling Programs 542,942 542,942 Impact Fee Capital Projects $26, 162,969 $19,807,369 45,970,338 Capital Improvement Projects $14,392,552 3,415,152 17,807,704 Developer Contribution -Heritage Park 19,000 19,000 Developer Contribution -Nature Park 60,000 60,000 Housing $25,526,669 25,526,669 Sub Total Restricted Fund Balance 579,000 25,526,669 26,162,969 19,807,369 14,392,552 12,956,922 99,425,481 Committed to: Economic Stability 8,000,000 8,000,000 Downtown Public Improvements 1,000,000 1,000,000 Emerald Glen Aquatic Center Additional Scope 3,000,000 3,000,000 Emergency Communications 741,000 741,000 Fire Services OPEB 3,004,000 3,004,000 Innovations and N cw Opportunities 2,122,785 2,122,785 Maintenance Facility 215,101 215,101 Civic Center Expansion 27,773 27,773 Historic Park Schaefer Ranch 5,272,210 5,272,210 One Time Initiatives 1,341,408 1,341,408 Shannon Center Parking Lot 987,410 987,410 Advance to Public Facility Fee 6,000,000 6,000,000 Fallon Sports Park 2,000,000 2,000,000 Storm Drain Capture 546,878 546,878 Utility Undcrgrounding 1,170,190 1,170,190 Dublin Sports Ground 2,500,000 2,500,000 Economic Development 1,000,000 l,000,000 Sub Total Committed Fund Balance 38,928,755 38,928,755 Aa•lgned to: Non-street CIP 3,879,516 3,879,516 Employees Accrued Leave 988,708 988,708 Operating Canyovers 1,612,658 1,612,658 CIP Carry overs 1,227,829 1,227,829 Catastrophic Loss and Recovery 11,368,531 11,368,531 Service Continuity 0 bligations 3,000,000 3,000,000 Pension and Post Employment Benefits 10,614,353 10,614,353 Fiscally Responsible Adjustment 325,000 325,000 Civic Center Renovation 1,962,100 1,962,100 Municipal Regional Pennit 2,250,000 2,250,000 HVAC Replacement 1,000,000 1,000,000 Relocate Parks 250,000 250,000 Fire Equipment Replacement 600,000 600,000 Sub Total Al:slgned Fund Balance 39,078,695 39,078,695 Unaulgned Fund Balance Fund Balance Deficits ($80,673) (1,173,370) (1,254,043) Unrealized Gain on Investments/(loss) (2,197,354) (2,197,354) Cash Flow Per City Policy 32,065,047 32,065,047 29,867,693 (80,673) (1,173,370) 28,613,650 Total Fund Balance (Deficit) $109,184,026 $25,526,669 $26,162,969 ($80,673) $19,807,369 $14,392,552 $11,783,552 $206,776,464 Minimum Fund Balance Policies The City's Reserve Policy requires the City to maintain an Unrestricted General Funds, for cash flow purposes, of minimum equal to two months of budgeted operating expenditures with a goal to achieve a maximum of four months. As of June 30, 2016 the cash flow reserves, which are part of the Unassigned Fund Balance, were above the minimum at approximately 3 .6 months, however they were below the desired target of 4 months. Funds may be appropriated as to Undesignated Capital Contribution by designation from City Council only for high priority one time capital expenditures provided the minimum fund balance would remain. 65 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 8 -NET POSITION AND FUND BALANCES (Continued) I D. Fund Equity Deficits The funds listed in the table below had fund balance deficits at June 30, 2016. These deficits are expected to be eliminated by future revenues. Fund Fire Impact Fees Capital Projects Fund Measure B Grants Special Revenue Fund TFCA!Transportation for Clean Air Special Revenue Fund IDA Special Revenue Fund Storm Water Management Special Revenue Fund PERS Side Fund Internal Service Fund Energy Efficiency Internal Service Fund I NOTE 9-DEFERRED COMPENSATION PLAN I Fund Deficit $80,673 410,440 28,938 33,311 700,681 549,949 5,141,907 City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination of employment, retirement, death, or in an emergency as defmed by the Plan. In accordance with GASB Statement No. 32, the funds have been placed in a trust administered by ICMA Retirement Corporation and are not available to the City's general creditors. Accordingly, the City does not report the assets in the financial statements. I NOTE 10 -PENSION PLAN For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employees' Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 66 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 10 -PENSION PLAN (Continued) A. General Information about the Ca/PERS Pension Plan Plan Description and Summary of Balances by Plan -All qualified permanent and probationary employees are eligible to participate in the City's Miscellaneous (all other) Employee Pension Rate Plan. The City's Miscellaneous Rate Plan is part of the public agency cost-sharing multiple-employer defined benefit pension plan (PERF C), which is administered by the California Public Employees' Retirement System (CalPERS). PERF C consists of a miscellaneous pool and a safety pool (also referred to as "risk pools"), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The City sponsors one rate plan (miscellaneous). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Below is a summary of the deferred outflows of resources, net pension liabilities, and deferred inflows of resources by Plan for the year ended June 30, 2016: Miscellaneous Deferred Outflows ofResources $1,997,928 Net Pension Liability/ Proportionate Share ofNet Pension Liability $10,150,589 Deferred Inflows of Resources $1,216,310 Benefits Provided -CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost ofliving adjustments for each plan are applied as specified by the Public Employees' Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012. The Plan's provisions and benefits in effect at June 30, 2016, are summarized as follows: Hire date Benefit formula Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a % of eligible compensation Required employee contribution rates Required employer contribution rates 67 Miscellaneous Prior to January 1, 2013 2.7%@55 5 years service monthly for life 55 2.7% 8.000% 10.958% Miscellaneous PEP RA Onor after January 1, 2013 2%@62 5 years service monthly for life 62 2% 6.250% 6.237% CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 10 -PENSION PLAN (Continued) Pension contnbutions subsequent to measurement date Differences between actual and expected experience Changes in assumptions Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contnbutions Net differences between projected and actual earnings on plan investments Total Deferred Outflows .of Resources $869,467 71,039 1,057,422 $1,997,928 Deferred Inflows of Resources ($672,091) (207,291) (336,928) ($1,216,310) The $869,467 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended Annual June 30 Amortization 2017 ($167,814) 2018 (167,309) 2019 (183,401) 2020 430,675 2021 0 Thereafter 0 ($87,849) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is I-percentage point lower or 1- percentage point higher than the current rate: !%Decrease Net Pension Liability Current Discount Rate Net Pension Liability 1% Increase Net Pension Liability 69 Miscellaneous 6.65% $16,826,418 7.65% $10,150,589 8.65% $4,638,917 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 10 -PENSION PLAN (Continued) Beginning in fiscal year 2016, CalPERS collects employer contributions for the cost-sharing plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability and side fund. The dollar amounts are billed on a monthly basis. The City's required contribution for the unfunded liability was $480,516 in fiscal year 2016. Contributions -Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2016, the City's contributions to the Plan were as follows: Contributions -employer Miscellaneous $869,467 B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2016, the City reported $10,150,589 in net pension liabilities for its proportionate share of the net pension liability of the Plan. The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2015, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2014 rolled forward to June 30, 2015 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Plan as of June 30, 2014 and 2015 was as follows: Proportion -June 30, 2014 Proportion -June 30, 2015 Change -Increase (Decrease) Miscellaneous 0.31711% 0.36999<>/o 0.05288% For the year ended June 30, 2016, the City recognized net pension expense of $46,098 for the Miscellaneous Plan on the Statement of Activities. At June 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: 68 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 10 -PENSION PLAN (Continued) Actuarial Assumptions -For the measurement period ended June 30, 2015, the total pension liabilities were determined by rolling forward the June 30, 2014 total pension liability. The June 30, 2014 total pension liabilities were based on the following actuarial methods and assumptions: Valuation Date Measurement Date Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Payroll Growth Projected Salary Increase Investment Rate of Return Mortality Post Retirement Benefit Increase June 30, 2014 June 30, 2015 Entry-Age Normal Cost Method 7.65% 2.75% 3.0% Varies by Entry Age and Service 7.50% (1) Derived using CalPERS' Membership Data for all Funds (2) Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter ( 1) Net of pension plan investment expenses, including inflation (2) The mortality table used was developed based on CalPERS' specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the Ca!PERS 2014 experience study report available on Ca!PERS website. All other actuarial assumptions used in the June 30, 2015 valuation were based on the results of a January 2014 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can found on the CalPERS website. Change of Assumptions -GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense, but without reduction for pension plan administrative expense. The discount rate of 7.50 percent used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65 percent used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense. All other assumptions for the June 30, 2014 measurement date were the same as those used for the June 30, 2015 measurement date. Discount Rate-The discount rate used to measure the total pension liability was 7.65% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.65% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.65% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. 70 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 10 -PENSION PLAN (Continued) I The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long- term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses. New Strategic Real Return Asset Class Allocation Years 1 -lO(a) Global F.quity 51.0% 5.25% Global Fixed Income 19.00/o 0.99% Inflation Sensitive 6.0% 0.45% Private F.quity 10.0% 6.83% Real&tate 10.0% 4.500/o Infrastructure and Forestland 2.0% 4.50% Liquidity 2.0% -0.55% Total 100% (a) An expected inflation of2.5% used for these periods. (b) An expected inflation of3.00/o used for these periods. Real Return Years 11 +(b) 5.71% 2.43% 3.36% 6.95% 5.13% 5.09% -1.05% Pension Plan Fiduciary Net Position -Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. 71 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30t 2016 I NOTE 11-OTHER POST EMPLOYMENT BENEFITS I The City provides certain health care benefits for retirees, as required under a contract signed with PERS. All former employees who retire with the City under PERS are eligible for these benefits. GASB 45 requires public agencies to estimate their Other Post Employment Benefits (OPEBs) and account for the future liability. Rather than use the "pay as you go" system and account for retiree benefits as they are due, GASB 45 requires the agencies to account for the expenses as benefits are accrued for the employees. On June 29, 2007, the City established an agreement with the California Public Employees' Retirement System (CalPERS) to set aside funds and deposit into the California Employer's Retiree Benefit Trust (CERBT) fund to accumulate, and distribute assets for the exclusive benefit of retirees and their beneficiaries. Plan assets are irrevocable and may not be used for any purpose other than funding post-retirement health care. The CERBT fund is an agent multiple employer plan and in order to ensure that the CERBT fund remains compliant with all reporting requirements, the CALPERS is responsible for publishing aggregate GASB 43 compliance Financial Statements, Notes, and Required Supplementary Information (RSI). The information may be found on CalPERS web site at www.calpers.ca.gov. A. City of Dublin Retiree Health Plan Plan Description -City of Dublin (City) Retiree Health Plan is a single-employer defined benefit healthcare plan administered by the California Public Employees Retirement System (CalPERS). The plan provides medical insurance benefits to eligible retirees and their eligible dependents in accordance with Public Employee Retirement Law (Article 2). The Public Employees Retirement System Board of Administration has the responsibility to approve health benefit plans and may contract with carriers offering health benefit plans. The Board of Administration is responsible for adopting all rules and regulations, including the scope and content of basic health plans. The California Government Code also defines certain rules for contract agencies, such as the City of Dublin, to purchase health insurance benefits. Funding Policy -There is no requirement imposed by CalPERS, to contribute any amount beyond the pay-as-you-go contributions. The cost of monthly insurance premiums may be shared between the retiree and the City. The cost sharing varies depending on: date of hire (a vesting schedule is in place for employees hired after April 1, 2004); the dependent status; and plan selected. A minimum employer monthly contribution requirement is established and may be amended by the CalPERS Board of Administration and applicable laws. Within the parameters of the law, individual contracting agencies, such as the City, are allowed to establish and amend the level of contributions made by the employer towards the monthly cost of the plans. Changes to the employer contribution rate towards retiree benefits are recorded in a resolution adopted by the City Council. The City has established a policy to make contributions to an Internal Service Fund, for the purpose of funding its calculated obligations over a period of time, with the intent the funds will be transferred to CalPERS periodically at which time the transfers will be recorded as Cash with Fiscal Agent in a Trust Fund. The amount necessary to fund future benefits is based on projections from the June 30, 2013 Actuarial Study completed by Bartel and Associates, LLC in accordance with GASB Statement 45, Accounting and Financial Reporting/or Postemployment Benefits Other than Pensions. 72 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 !NOTE 11-OTHER POST EMPLOYMENT BENEFITS (Continued) During fiscal year 2006-2007, the City made arrangements with CalPERS to retain the OPEB assets to finance future Retiree Health Benefits. On June 29, 2007, the City transferred $5,468,611 from the Internal Service Fund into the California Employers' Retiree Benefit Trust Fund (CERBT). The City has elected. a one-year amortization period for the OPEB plan assets deposited into the CERBT, as permitted under GASB Statement 45, paragraph 13F, amortization periods allow for a maximum of 30 years with no minimum years. Annual OPEB Cost and Net OPEB Obligation -The City's annual Other Post Employment Benefit (OPEB) cost (expense) is calculated based on the Annual Required Contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City of Dublin annual OPEB costs for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation to the City Retiree Health Plan: Annual required contribution Annual OPEB expense Contributions made Decrease (increase) in net OPEB asset Net OPEB (obligation)-beginning ofyear Net OPEB asset -end of year $1,344,000 1,344,000 (2,345,023) (1,001,023) (4,647) $996,376 The City Retiree Health annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2015-16, and the preceding years were as follows: Fiscal Annual AnnualOPEB NetOPEB YearF.nded OPEBCost Cost Contributed Asset (Obligation) 6/30/2014 $1,306,000 101% $35,889 6/30/2015 1,350,000 97"/o (4,647) 6/30/2016 1,344,000 174% 996,376 Funded Status and Funding Progress -As of June 30, 2015, the most recent actuarial valuation date, the plan was 74.5% funded. The Actuarial Accrued Liability (AAL) for benefits was $17,657,000 and the Actuarial Value of Plan Asset was $13,154,000 resulting in an Unfunded Actuarial Accrued Liability (UAAL) of $4,503,000. The covered payroll (annual payroll of active employees covered by the plan) was $8,614,000 and the ratio ofUAAL to the covered payroll was 52.3 percent. Actuarial valuations for OPEB plans involves estimates of the value of the reported amounts and assumptions about the probability of events far into the future. These actuarially determined amounts are subject to continual revisions as actual results are compared to past expectation and new estimates are made about the future. The schedule of funding progress presented immediately following the financial statements as required supplementary information, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. 73 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 11-OTHER POST EMPLOYMENT BENEFITS (Continued) I Actuarial Methods and Assumptions -Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the June 30, 2015 actuarial valuation, the actuarial cost method used is Entry Age Normal (BAN) cost method. Under the BAN cost method, the plan's Normal Cost is developed as a level percent of payroll throughout the participants' working lifetime. Entry age is based on current age minus years of service. Actuarial Accrued Liability (AAL) is the cumulative value on the valuation date, of prior Normal Cost. For the retirees, the AAL is the present value of all projected benefit. The Unfunded AAL is being amortized as a level dollar closed 15 year basis, as a level percent of payroll with a remaining amortization period at June 30, 2016of14 years. GASB 45 requires the interest rate to represent the underlying expected return for the source of funds used to pay benefits. The actuarial methods and assumptions included 6.75 percent interest rate, representing the long term expected rate of return on the CalPERS Trust Fund including a margin for adverse earnings. Annual inflation assumed to increase at one half of the Kaiser family premium increase and Aggregate Payroll assumed to increase at 3 .25 percent per annum. The study also used assumptions for the salary merit and longevity increases, and demographic assumptions such as mortality, withdrawal, and disability based on CalPERS 1997-2007 Experience Study. Retirement assumption was also based on CalPERS 1997-2007 Experience Study of the Miscellaneous Plan 2.7% at 55 years, with expected retirement age of approximate 58 for both females and males. The health care cost trend rate is the rate of change in per capita health claims costs over time as a result of factors such as medical inflation, utilization of healthcare services, plan design, and technological developments. The following table includes the annual healthcare cost trend rate used in the Actuarial Valuation: Year Non-Medicare Medicare HMO&PPO HMO&PPO 2015 Actual Premiums Actual Premiums 2016 Actual Premiums Actual Premiums 2017 7.0% 7.2% 2018 6.5% 6.7% 2019 6.0% 6.1% .. • + 2021+ 5.0% 5.0% 74 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 11-OTHER POST EMPLOYMENT BENEFITS (Continued) B. Dougherty Regional Fire Authority Health Plan Dougherty Regional Fire Authority Background -In 1988, the cities of Dublin and San Ramon formed Dougherty Regional Fire Authority (DRF A), a Joint Powers Agency (JP A). The JP A provided fire services to all of Dublin and the southern portion of San Ramon. In 1997, the two cities decided to change how Fire Services would be provided in each City. As a result, JP A personnel were absorbed by the two new service providers pursuant to a mutual agreement. The JP A has remained intact to conclude the financial affairs of the entity. This includes residual retiree obligations and workers compensation liabilities. Dublin's share of all DRFA close-out expenses, including retiree medical benefits, is 57.51% of the actual costs, with the City of San Ramon paying 42.49% of the costs. The two cities have entered into a binding agreement to share these expenses on this basis. The City of Dublin is presenting information only for its contractual share of the obligations. Plan Description -City of Dublin share of DRFA Retiree Health Plan is a single-employer defined benefit healthcare plan administered by the California Public Employees Retirement System (CalPERS). The Plan provides medical insurance benefits to eligible retirees and their eligible dependents. In accordance with Public Employee Retirement Law (Article 2), the Public Employees Retirement System Board of Administration has the responsibility to approve health benefit plans and may contract with carriers offering health benefit plans. The Board of Administration is responsible for adopting all rules and regulations, including the scope and content of basic health plans. The California Government Code also defines certain rules for contract agencies, such as DRF A, to purchase health insurance benefits. Funding Policy -There is no requirement imposed by CalPERS, to contribute any amount beyond the pay-as-you-go contributions. The cost of monthly insurance premiums may be shared between the retiree and DRF A. The cost sharing varies depending on: the bargaining unit; dependent status; and plan selected. A minimum employer monthly contribution requirement is established and may be amended by the CalPERS Board of Administration and applicable laws. Within the parameters of the law, individual contracting agencies, such as the DRF A, are allowed to establish and amend the level of contributions made by the employer towards the monthly cost of the plans. Changes to the employer contribution rate towards retiree benefits are recorded in a resolution adopted by the DRF A Management Committee. For fiscal year 2015-2016, the City contributed $42,905 to the plan, all of which was for current premiums. No other contributions were made. Annual OPEB Cost and Net OPEB Obligation -The City of Dublin's share of the DRFA Retiree Health Plan annual other post employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The ARC represents a level of funding that, if paid on an on-going basis, is projected to cover costs. This plan is in a unique status since there are no active members and no "normal" cost component. Therefore, 100% of the calculated ARC relates to the amortization of unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. 75 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 11-OTHER POST EMPLOYMENT BENEFITS (Continued) The following table shows the components of the City of Dublin's share ofDRFA annual OPEB cost for the year, the amount actually contributed to the plan and changes in the Dublin Share ofDRFA net OPEB and the City of Dublin share of the obligation to DRF A Retiree Health Plan: Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB expense Contributions made Increase (decrease) in net OPEB obligation Net OPEB obligation -beginning of year Net OPEB obligation -end of year $74,388 11,753 (31,924) 54,217 (42,905) 11,312 315,269 $326,581 The DRF A Retiree Health (City of Dublin Share) annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2015-2016 and the two previous years were as follows: Fiscal Annual AnnualOPEB OPEB Year Ended OPEBCost Cost Contributed Obligation 6/30/2014 $53,295 75.48% $303,366 6/30/2015 53,853 80.32% 315,269 6/30/2016 54,217 79.14% 326,581 Funded Status and Funding Progress -As of June 30, 2016, the most recent actuarial valuation date, the plan was not funded. Therefore, both the actuarial accrued liability for benefits and the unfunded actuarial accrued liability (UAAL) equaled $806,873 Since there are no active employees, it is not possible to calculate a comparison of the liability to the payroll. Actuarial Methods and Assumptions -Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. 76 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 11-OTHER POST EMPLOYMENT BENEFITS (Continued) A sole or agent employer that meets any of the eligibility criteria in paragraph 11 of GASB 45 is permitted to apply the alternative measurement method set forth in paragraphs 33 through 35 of GASB45, which allows for certain simplifying modifications to the selection of assumptions for purposes of measuring the ARC (Annual Required Contribution) and the plan's actuarial accrued liabilities and funded status. In the June 30, 2016 actuarial valuation prepared by Bartel and Associates, LLP the actuarial used was Alternative Measurement Method with the Entry Age Normal (BAN) cost method. Under the BAN cost method, the plan's Normal Cost is developed as a level percent of payroll throughout the participants' working lifetime. The actuarial assumptions included a 4.0% investment rate of return (net of administrative expenses), calculated based on the funded level of the plan at the valuation date. The expected rate of increase in healthcare insurance premiums is based on projections of the CalPERS 1997-2011 Experience Study. The increases are as follows: Year Non-Medicare Medicare HMO&PPO HMO&PPO 2015 Actual Premiums Actual Premiums 2016 Actual Premiums Actual Premiums 2017 7.0% 7.2% 2018 6.5% 6.7% 2019 6.0% 6.1% 2020 5.5% 5.6% 2021+ 5.0% 5.0% The Actuarial Accrued Liability (AAL) is the cumulative value, on the valuation date, of prior Normal Costs. For retirees, the AAL is the present value of all projected benefits. Although GASB45 allows an amortization period not to exceed 30 years, due to the closed status of the plan, the unfunded AAL is amortized over 15 years as a level of dollar amount. I NOTE 12 -HEALTH, GENERAL LIABILITY AND WORKERS' COMPENSATION COVERAGE A. Risk Pool The City participates in the ABAG PLAN Corporation, a non-profit public benefit corporation established to provide liability insurance coverage, claims administration and risk management services, and legal defense to its participating members. The liability insurance coverage is provided by a combination self- insurance collectively funded by ABAG PLAN Corporation and the purchase of commercial insurance for large losses. ABAG PLAN provides the first $5 million of coverage as self-funded general liability and automobile liability coverage per occurrence. ABAG PLAN purchases commercial excess liability insurance in two layers of $10 million and $15 million each to provide total coverage of claims up to $30 million per occurrence. The City has a deductible of $50,000 per occurrence. ABAG PLAN also provides $1 million of employee bonds (theft coverage) in excess of a $5,000 deductible. 77 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 12 -HEALTH, GENERAL LIABILITY AND WORKERS' COMPENSATION COVERAGE ABAG PLAN also provides property insurance coverage. This coverage is also comprised of a self- insured layer combined with commercial insurance. The frrst $100,000 of losses are self-funded by ABAG PLAN form premiums collected from the participants in the program. ABAG PLAN purchases an insurance policy to cover losses above $100,000 per occurrence and the annual aggregate losses of the pool are insured above $250,000. The insurance provides coverage for property damage among all participants to $1 billion. The City deductible for property and vehicle losses is $5,000. For any single loss in excess of $25,000 the deductible is waived. The City's contributions to the ABAG PLAN for liability coverage are based on a formula which considers the ratio of the City's payroll to the total payrolls of all entities participating in the same layer of each program, in each program year's loss history and population. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. There have been no significant reductions in any of the City's areas of insurance coverage and no settlement amounts have exceeded coverage in the past three years. Audited financial information for the ABAG PLAN can be obtained from ABAG PLAN, P.O. Box 2050, Oakland, California 94604-2050. B. Worker's Compensation Coverage The City participates in the Cities Group, created by a joint powers agreement to provide workers' compensation coverage paid from the pooled contributions of its membership with no deductible to the City. Any claim in excess of $1 million is covered up to $10 million through a policy with New York Marine Insurance Corp purchased by the Cities Group. The Cities Group acts as an administrator, claim adjuster and provides other risk management services as provided by State law. Each member of the Cities Group pays a premium commensurate with the level of coverage requested and shares surpluses and deficits proportionately to its participation in the Cities Group. During the year ended June 30, 2016, the City paid Cities Group $5,815 in premiums. At June 30, 2016, the City of Dublin's share of equity in the Cities group amounted to $8,282. Financial Statements may be obtained from the Cities Group, PO Box 111, Burlingame, CA 94011-0111. C. Liability for Uninsured Claims The GASB requires municipalities to record their liability for uninsured claims and reflect the current portion of this liability as expenditures in their financial statements. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or the uninsured portion of these claims in the ABAG PLAN and the Cities Group plans. GASB Statement No. 10, "Financial Reporting for Risk Financing and Related Insurance Issues" require that this amount be separately identified and recorded as a liability. The City's liability for uninsured claims, limited to general liability and workers compensation claims as discussed above, includes a provision for incurred but not reported (IBNR) losses. This amount was estimated based on claims experience. The reserve recorded, $36,393, is adequate to cover 3.09% IBNR claims. Therefore no adjustment was made in fiscal year 2015-2016 as the City's exposure is for the $50,000 deductible per General Liability claim. The City has no actual liabilities that are due and payable at June 30, 2016. 78 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 13 -JOINT POWERS AGREEMENTS I The City participates in joint ventures discussed below through separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each joint venture is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint venture, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of these joint ventures are not the City's responsibility and the City does not have an equity interest in the assets of each joint venture except upon dissolution of the joint venture. A. Animal Control Services The Cities of Dublin, Pleasanton, and Livermore and the County of Alameda have entered a joint powers agreement, dated September 15, 1992, under which Alameda County constructed an animal shelter facility on County's property. The agreement provided that the County would retain ownership of the land and that each participating agencies would receive an equity interest in the facility. Certificates of Participation were issued to construct the facility. Under the agreement the entities will share in the debt service costs of the project based upon their use of the animal shelter. The original total principal portion of the scheduled debt is $4,523,877. The City's share for the annual debt service requirements are based upon the statistics of live animals handled in the shelter. In fiscal year 2014-2015 the City contributed $36,562 of the total annual debt service payment. In addition, the City contributed $198,217 or 13.90% toward the annual operating shelter services and $92,846 representing 7.96% of the animal field service expenditures. The City has not recorded an equity interest for the animal shelter agreement. As noted above the ongoing financial interest is limited to the statistics of live animals handled in the appropriate fiscal year. No Joint Powers Authority was established as part of this agreement therefore, separate financial statements are not issued. B. Associated Community Action Program (ACAP) The City is a member of ACAP, a Joint Powers Authority established in July 12, 1994, with a governing board comprised of elected officials from its 13 member agencies. The members include Alameda County and the Cities of Alameda, Albany, Dublin, Emeryville, Fremont, Hayward, Livermore, Newark, Piedmont, Pleasanton, San Leandro, and Union City. The purpose of the ACAP was to plan, develop, and administer social services programs under the federal Community Services Block Grant Program. These programs included housing assistance, jobs training and education, and youth development services. Due to significant financial issues, the Board of Directors of ACAP in February 2011 chose to terminate its participation in various state and federal program and to effectively cease its operations. Management Partners, Inc. was engaged to manage and implement the close of ACAP. The representatives of the members and the ACAP Board of Directors have determined that the original JP A that created ACAP should be amended to reflect the current status of ACAP. On October 18, 2011, the City Council approved an Amended and Restated Joint Powers Agreement to restructure ACAP's and delegate oversight powers to allow the County and the City Managers, rather than the elected officials, to continue its obligations such as records retention, legal and claims, and audit compliance and to limit future exposure for member agencies. 79 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 13 -JOINT POWERS AGREEMENTS (Continued) During fiscal year 2015-2016 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 2015-2016, the ACAP Board of Directors determined that no contributions would be made by member agencies, unless additional close-out funds are needed. The City will incur a pro-rata share of the on-going costs. Unaudited condensed financial information as of June 30, 2016 for ACAP is presented below: Total assets Total liabilities Total net assets Total revenues Total expenses Increase (decrease) net position $186,922 888,302 (701,380) 211 50,714 (50,503) I NOTE 14-OTHER COMMITMENTS AND CONTINGENT LIABILITIES I The City participates in several Federal and State grant programs. These programs have been audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act and applicable State requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. The City is a defendant in a number of lawsuits that have arisen in the normal course of business, the outcome of which cannot be predicted with certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a material adverse effect on the financial position of the City. A. Reimbursements to the City of Pleasanton On January 23, 1996, the City adopted a fee for the purpose of reimbursing the City of Pleasanton for the costs of making improvements to the interchanges of Interstate 580 at Hacienda Drive and Tassajara Road/Santa Rita Road that benefit development in both Pleasanton and future development in Eastern Dublin. The Cities entered into an agreement on November 3, 1998, to allow for an automatic annual escalator factor in the amount of the fee assessed to developers based upon the LAIF interest rate and to repay the City of Pleasanton. The amount of the contingent liability outstanding at June 30, 2016, was $3,562,043 which is net of the $110,794 in payments made by the City to reduce this contingent liability during the year. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for reimbursement of these improvements. B. Alameda County Surplus Property Authority The City entered into an agreement with the Alameda County Surplus Property Authority for the repayment of the City's Short Term BART Advance by the Authority. Under the terms of the agreement, interest on the advance shall accrue at a rate based on the Alameda County Treasurers return on investments. As of June 30, 2016, the balance was $114,888 which includes accrued interest. The advance is to be repaid from developer fees, charges, and other non-tax revenues from the benefiting areas and has no specific due date. The City's General Fund shall not be obligated to repay this obligation. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for repayment of the advance. 80 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2016 I NOTE 14-OTHER COMMITMENTS AND CONTINGENT LIABILITIES (Continued) C. Other Development Agreements The City entered into several agreements with various developers and merchant builders who are developing numerous residential and commercial projects throughout the City. The City agreed to grant the developers' impact fee credits since the developers constructed certain improvements beyond what was needed to serve their specific projects. The value of credits does not increase for inflation nor do they accrue interest. Any unused credits may be used by the developers on other projects located within the Traffic Impact Fee area. The value of the credits as of June 30, 2016 was $124,933,301. The addition of $108,891,680 to the credit balance was mainly due to value appreciation by converting parkland acreage to a dollar value, and credit used for the fiscal years was $90,640,944. D. Alameda County Fire Department (ACFD) The City of Dublin contracts to have the Alameda County to provide fire services. As part of the contract, the City pays for its share of ACFD's retiree health plan and retirement plan. In 2012 ACFD began working with CalPERS to create side funds within its OPEB trust to allow for member agencies to fund their share of the obligation. In preparation for this, in June 2012 the City Council authorized a contribution of $6.487 million towards the liability that was then moved to a General Fund Reserve, which was reclassified as an assigned fund balance upon the City's implementation of GASB Statement No. 54. Since then, the City continued to add funds to that fund balance assignment. After ACFD successfully implemented the OPEB trust side funds, the City was notified that as of June 30, 2015, the most recent actuarial valuation date, the City's side fund was 0.93% funded. The Actuarial Accrued Liability (AAL) for benefits was $10,356,000 and the Actuarial Value of Plan Asset was $96,000 resulting in an Unfunded Actuarial Accrued Liability (UAAL) of $10,260,000. In May 2016 the Alameda County Board of Supervisors approved an agreement with the City providing the framework for the City to fund its side fund. In June 2016, upon approving the agreement by the City Council, the City made a one-time contribution of $8,200,000 to the side fund. As a result, $2,060,000 was reported as a payable to other agencies on the Statement of Net Position. 81 This Page Left Intentionally Blank REQUIRED SUPPLEMENTAL INFORMATION 83 Schedule ofthe Plan's Proportionate Share of the Net Pension Liability and Related Ratios as of the Measurement Date Last 10 Years* Plan's Proportion of the Net Pension Liability (Asset) Plan's Proportionate Share of the Net Pension Liability/(Asset) Plan's Covered Employee Payroll Plan's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage ofits Covered-Employee Payroll Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability * -Fiscal year 2015 was the 1st year of implementation. 84 6/30/2014 0.12593% $7,837,436 $8,425,970 93.02% 210.70% 6/30/2015 0.36999% $10,150,589 $9,268,029 1.095226288 79.29%1 City of Dublin Cost-Sharing Multiple Employer Defined Pension Plan -Miscellaneous Plans For the Fiscal Year Ended June 30, 2016 Actuarially determined contribution Contnbutions in relation to the actuarially determined contributions Contribution deficiency (excess) Covered-employee payroll Contributions as a percentage of covered- employee payroll Schedule ofContributions Last 10 Years* 2015 $1,411,959 (1,411,959) $0 $8,425,970 16.76% * -Fiscal year 2015 was the 1st year of implementation. 85 2016 $869,467 (869,467) $0 $9,268,029 9.38% City of Dublin Other Post-Employment Retirement Benefits For the Fiscal Year Ended June 30, 2016 Schedule of Funding Progress Underfunded Entry Age (Overfunded) Actuarial Actuarial Actuarial UAALas a Actuarial Value of Accrued Accrued Funded Covered Percentage of Valuation Assets liability liability Ratio Payroll Covered Payroll Date (A) (B) (B-A) (A/B) (9 [(B-A)/C] 6/30/2004 $0 $4,973,780 $4,973,780 0.00% $6,320,280 78.7% 6/30/2007 5,694,000 6,159,000 465,000 92.45% 6,697,747 6.9"/o 6/30/2009 5,326,000 6,990,000 1,664,000 76.19% 7,618,000 21.8% 6/30/2011 6,823,000 11,557,000 4,734,000 59.04% 7,830,000 60.5% 6/30/2013 9,574,000 14,823,000 5,249,000 64.59% 8,972,000 58.5% 6/30/2015 13,154,000 17,657,000 4,503,000 74.50% 8,614,000 52.3% 86 SUPPLEMENTARY INFORMATION 87 This Page Left Intentionally Blank BUDGETED MAJOR GOVERNMENTAL FUNDS OTHER THAN GENERAL FUND AND SPECIAL REVENUE FUNDS The General Improvements Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets, Parks, or Community Improvements projects. The Community Improvements Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would promote or enhance redevelopment, revitalization, beautification of the City's community and are not General Improvements, Streets or Parks related projects. The Parks Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's parks and facilities. The Streets Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's highways, streets, roads, bridges, lighting, or the storm drain systems. The Public Facilities Impact Fees Capital Projects Fund -is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of new public facilities within the City. The Fire Impact Fees Capital Projects Fund -is used to account for fees received from developers of properties, which can only be used for the design, development, and construction of fire capital expansion projects within the City. The Traffic Impact Fees Capital Projects Fund-is used to account for fees received from developers of properties, which can only be used for the design, development and construction of street projects within the City. The Dublin Crossing Contribution Capital Projects Fund -accounts for community benefit payments specific to the Dublin Crossings Project, separate from any developer impact fees generated by the project. 89 CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2016 Budgeted Amounts Original Final Actual Amounts Property taxes: Current year secured $24,636,727 $25,764,437 $25,672,248 Current year unsecured 1,474,378 1,474,378 1,509,393 Supplemental property tax 400,000 400,000 836,309 Prior year secured 300,000 300,000 386,802 Prior year unsecured 4,430 4,430 (29,330) Property tax penalties 78,437 78,437 86,398 In lieu property tax 428922064 4,892,064 5,136,781 Sub-total 31,7862036 32,913,746 33,598,601 Taxes other than property: Sales and use tax 19,066,249 19,566,249 17,197,569 In lieu sales tax 1,170,190 1,170,190 3,741,257 Real property transfer tax 500,000 500,000 950,025 Hotel transient occupancy tax 1,000,000 1,000,000 1,525,219 Franchise taxes 3,408,000 3,408,000 4,130,771 Sub-total 25,144,439 25,6442439 27,544,841 Licenses and permits: Animal licenses 7,000 7,000 6,219 Building permits 2,585,272 4,454,196 5,515,157 Business license 170,987 170,987 200,349 Construction and demolition permits 91,380 134,825 149,916 Encroachment permits 117,791 117,791 90,689 Fire permits 96,696 96,696 94,899 Grading permits 2,652 2,652 3,920 Planning permits 44,642 44,642 69,452 Miscellaneous permits 7,272 7,272 8,819 Sub-total 3,123,692 5,036,061 6,139,420 Fines and forfeitures: Parking citations 72,432 72,432 68,329 Business license penalties 2,500 2,500 5,039 Other court fmes 35,000 35,000 42,648 Sub-total 109,932 109,932 1162016 90 Variance with Final Budget Positive (Negative) ($92,189) 35,015 436,309 86,802 (33,760) 7,961 244,717 684,855 (2,368,680) 2,571,067 450,025 525,219 722,771 12900,402 (781) 1,060,961 29,362 15,091 (27,102) (1,797) 1,268 24,810 1 547 1,103,359 (4,103) 2,539 7,648 6,084 CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2016 (Continued) Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative} Revenue from use of money and property: Interest $466,191 $466,191 $1,062,247 $596,056 Internal designated 6,104 6,104 Change in fair market value of investments 1,869,627 1,869,627 Rent and concession: Field and court rentals 193,550 193,550 233,532 39,982 Facility rentals 305,910 305,910 361,457 55,547 Leased property 443,613 443,613 519 758 76,145 Sub-total 1,409,264 1,409,264 4,052,725 2,643,461 Intergovernmental revenues: Motor vehicle in-lieu 22,532 22,532 Mandated costs 15,000 15,000 83,910 68,910 Homeowner's property tax relief 183,620 183,620 217,633 34,013 Sub-total 198,620 198,620 324,075 125,455 Charges for services: General government Building use insurance 19,000 19,000 22,056 3,056 Sale of maps and documents 3,700 3,700 682 (3,018) Public safety Police charges for services 56,720 56,720 49,275 (7,445) Fire charges for services 171,532 374,332 656,180 281,848 Santa Rita fire services 380,200 380,200 873,420 493,220 Waste management Waste management admin fees 730,802 730,802 825,820 95,018 Environmental Programs EV Charges 1,460 1,460 Parks and community services Aquatics programs 176,170 176,170 237,369 61,199 Cemetery 1,150 1,150 690 (460) Cultural arts 133,140 133,140 103,134 (30,006) Family programs 602,195 602,195 748,950 146,755 Heritage Center 10,740 10,740 14,364 3,624 Preschool programs 389,850 389,850 363,213 (26,637) Recreational activities 385,607 385,607 503,509 117,902 Senior programs 91,150 91,150 110,464 19,314 Sports programs 715,847 715,847 849,203 133,356 Community Development Engineering plan checking 2,500,287 2,500,287 2,606,107 105,820 Local share permit surcharge -SMlP 1,289 1,289 3,616 2,327 Building plan checking 657 657 Local share permit surcharge -Zone 7 drainage fees 2,980 2,980 30,776 27,796 Zoning and subdivision fees 1,527,450 2,127,450 2,1292849 2,399 Sub-total 7,899,809 8,702,609 10,130,794 1,4282185 91 CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2016 (Continued) Budgeted Amounts Original Final Actual Amounts Other revenues: Contributions $100,250 $116,230 $134,479 Sales of property 3,950 Miscellaneous 102,001 102,001 104,582 Reimbursement -general 133,666 182,554 346,709 Reimbursement -public damage 22,500 22,500 7,849 Reimbursement -Community benefit assessment 675,678 424,678 424 000 Sub-total 1,034,095 847,963 1,021,569 Total Revenue by Sources $70,705,887 $74,862,634 $82,928,041 92 Variance with Final Budget Positive (Negative} $18,249 3,950 2,581 164,155 (14,651) (678} 173,606 $8,065,407 This Page Left Intentionally Blank CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL DEPARTMENTAL EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative} General government City Council $489,404 $534,170 $439,779 $94,391 City Manager 1,069,821 1,126,213 1,118,762 7,451 City Clerk 373,210 373,507 360,067 13,440 Election 3,120 3,120 1,980 1,140 Hmnan resources 654,234 683,981 678,432 5,549 Insurance 471,410 471,410 401,892 69,518 City attorney 777,810 958,810 876,229 82,581 Finance 1,552,114 1,556,265 1,447,127 109,138 Non departmental ISF 1,819,054 9,175,178 9,522,009 (346,831) Disaster preparedness 128,849 129,555 104,823 24,732 Crossing guards 133,996 133,996 131,566 2,430 Animal control 282,237 327,637 327,626 11 Waste management 261,146 261,146 237,480 23,666 Community TV 109,150 109,150 105,740 3,410 Sub-total 8,125,555 15,844,138 15,753,512 90,626 Police Police admin/support services 2,621,949 2,621,949 2,280,587 341,362 Patrol 7,197,890 7,745,110 7,581,634 163,476 Traffic 1,017,019 1,017,019 1,178,870 (161,851) Investigations 2,094,169 2,094,169 2,383,947 (289,778) Crime prevention/school resource services 1,472,319 1,472,319 1,522,528 (50,209) Communications/dispatch 1,020,846 1,020,846 910,460 110,386 Neighborhood resources 163,060 163,060 150,936 12,124 Police operations support 1,955,392 2,010,180 1,638,795 371,385 Sub-total 17,542,644 18,144,652 17,647,757 496,895 Fire Administration 11,444,410 11,444,410 11,134,334 310,076 Fire prevention 415,686 416,549 399,337 17,212 Operations 71,300 149,355 149,338 17 Fire station maintenance 240,869 278,175 240,453 37,722 Sub-total 12,172,265 12,288,489 11,923,462 365,027 Public works Building management 1,186,661 1,209,190 1,090,648 118,542 Public Safety Complex 80,435 100,869 77,893 22,976 Traffic signals 10,500 10,500 10,458 42 Street lighting 14,101 14,101 11,956 2,145 Public works administration 1,217,385 1,243,942 1,188,309 55,633 Street maintenance 154,737 46,820 21,895 24,925 Street sweeping 135,726 135,726 116,407 19,319 Street landscaping 1,211,587 1,348,584 1,190,212 158,372 Street tree maintenance 134,880 142,280 145,788 (3,508) Environmental services 212,302 237,302 188,752 48,550 Engineering 2,635,704 2,756,059 2,827,142 (71,083} Sub-total 6,994,018 7,245,373 6,869,460 375,913 94 CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL DEPARTMENTAL EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2016 (Continued) Budgeted Amounts Original Final Actual Amounts Parks and Community Services Library services 818,359 836,579 845,013 Park maintenance 3,287,389 3,424,285 2,949,885 Historic facility operations and rentals 300,033 660,978 352,478 Heritage center programs 376,239 397,089 363,765 Community events and festivals 668,083 707,883 529,528 Facility operations and rentals 1,406,826 1,554,342 1,416,909 Parks and community services administration 1,208,884 1,265,979 1,031,701 Family programs 569,423 569,423 574,200 Recreational activities 524,206 524,206 671,551 Preschool programs 275,808 275,808 244,069 Senior programs 484,547 485,685 465,713 Sports programs 765,220 765,448 688,138 Aquatic programs 711,816 746,909 369,473 Parks/facilities development 422,838 466,930 246,690 Sub-total 112819,671 12,681,545 10,749,113 Economic development Economic development 651,912 860,576 368,039 Public information 466,904 427,367 236,738 Sub-total 12118,816 1,287,943 604,777 Community development Human services 188,810 188,810 98,170 Housing programs 99,990 99,990 47,090 Planning 2,497,735 2,699,219 2,609,398 Building and safety 2,820,781 3,0462420 22744,564 Sub-total 5,607,316 6,034,439 5,499,222 Total Expenditures $63,380,285 $73,526,579 $69,047,303 95 Variance with Final Budget Positive (Negative) (8,434) 474,400 308,500 33,324 178,355 137,433 234,278 (4,777) (147,345) 31,739 19,972 77,310 377,436 220,241 1,932,432 492,537 190,629 683,166 90,640 52,900 89,821 301,856 535,217 $4,479,276 CITY OF DUBLIN GENERAL IMPROVEMENTS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Budgeted Amounts Variance with Final Budget Positive Original Final Actual Amounts (Negative) EXPENDITURES: General government $15,921 ($15,921) Capital outlay: General improvements $115,833 $18,269,145 666,478 17,602,667 Total Expenditures 115,833 18,269,145 682,399 17,586,746 REVENUES OVER (UNDER) EXPENDITURES (115,833) (18,269,145) (682,399) 17,586,746 OTHER FINANCING SOURCES (USES) Transfers in 115,833 18,269,145 666,477 (17,602,668) Total Other Financing Sources (Uses) 115,833 18,269,145 666,477 (17,602,668) NET CHANGE IN FUND BALANCE (15,922) ($15,922) BEGINNING FUND BALANCE 15,922 ENDING FUND BALANCE 96 CITY OF DUBLIN COMMUNITY IMPROVEMENTS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Budgeted Amounts Original Final Actual Amounts EXPENDITURES: General government $854 Capital outlay: Community improvements $104,925 $482,912 117,104 Total Expenditures 104,925 482,912 117,958 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (104,925) ~482,912} (117,958} OTIIER FINANCING SOURCES (USES) Transfers in 104,925 482,912 117,104 Total Other Financing Sources (Uses) 104,925 482,912 117,104 NET CHANGE IN FUND BALANCE (854) BEGINNING FUND BALANCE 854 ENDING FUND BALANCE 97 Variance with Final Budget Positive (Negative) ($854) 365,808 364,954 364,954 p65,808} p65,808} ~$854} EXPENDITURES: General government Capital outlay: Parks Total Expenditures CITY OF DUBLIN PARKS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Budgeted Amounts Original Final $14,944,033 $49,385,794 14,944,033 49,385,794 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (14,944,033) (49,385,794) OTHER FINANCING SOURCES (USES) Transfers in 14,944,033 49,385,793 Total Other Financing Sources (Uses) 14,944,033 49,385,793 NET CHANGE IN FUND BALANCE ($1) BEGINNING FUND BALANCE ENDING FUND BALANCE 98 Variance with Final Budget Positive Actual Amounts (Negative) $4,967 ($4,967) 23,469,847 25,915,947 23,474,814 25,910,980 (23,474,814) 25,910,980 23,469,847 (25,915,946) 23,469,847 (25,915,946) (4,967) ($4,966) 4,967 CITY OF DUBLIN STREETS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL REVENUES: Other revenues Total Revenues EXPENDITURES: Capital outlay: Streets Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE (DEFICIT) ENDING FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2016 Budgeted Amounts Original Final $3,286,260 $17,268,881 3,286,260 17,268,881 (3,286,260) (17,268,881) 3,286,260 17,268,882 3,286,260 17,268,882 $1 99 Variance with Final Budget Positive Actual Amounts (Negative) $21,500 $21,500 21,500 21,500 3,652,808 $13,616,073 3,652,808 13,616,073 (3,631,308) 13,637,573 3,652,808 (13,616,0742 3,652,808 (13,616,074) 21,500 $21,499 (21,500) CITY OF DUBLIN PUBLIC FACILITIES IMPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Budgeted Amounts Variance with Final Budget Positive Original Final Actual Amounts (Negative) REVENUES: Interest Developer fees Total Revenues EXPENDITURES: Parks and community service Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Transfers out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE $83,705 8,629,500 8,713,205 $91,806 91,806 8,621,399 2,000,000 (8,808,678) (8,808,678) ($187,279) 100 $83,705 15,005,000 15,088,705 151,332 151,332 14,937,373 2,000,000 ( 42,429,522) ( 40,429,5222 ($25,492, 149) $346,254 15,091,483 15,437,737 42,072 42,072 15,395,665 (22,897,019) (22,897,019) (7,501,354) 33,664,323 $26, 162,969 $262,549 86,483 349,032 109,260 109,260 458,292 (2,000,000) 19,532,503 17,532,503 $17,990,795 CITY OF DUBLIN FIRE IMP ACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL REVENUES: Developer fees Total Revenues EXPENDITURES: Current: General government Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE (DEFICIT) ENDING FUND BALANCE (DEFICIT) FOR THE YEAR ENDED JUNE 30, 2016 Budgeted Amounts Original Final $196,692 $316,692 196,692 316,692 5,000 5,000 5,000 5,000 191,692 311,692 $191,692 $311,692 101 Variance with Final Budget Positive Actual Amounts (Negative) $390,513 $73,821 390,513 73,821 579 4,421 579 4,421 389,934 78,242 389,934 $78,242 (470,6072 ($80,6732 CITY OF DUBLIN TRAFFIC IMP ACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Budgeted Amounts Original Final Actual Amounts REVENUES: Interest Developer fees Total Revenues EXPENDITURES: Current: General government Public works Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE $55,527' $55,527 $172,613 956,352 3,899,352 3,969,043 1,011,879 3,954,879 4,141,656 $500,000 554,460 497,296 110,000 1,042 500,000 664,460 498,338 511,879 3,290,419 3,643,318 (921,883) (4,046,116) (l,096,116) (921,883) (4,046,1162 (l,096,116) ($410,004) ($755,6972 2,547,202 17,260,167 $19,807,369 102 Variance with Final Budget Positive (Negative) $117,086 69,691 186,777 57,164 108,958 166,122 352,899 2,950,000 2,950,000 $3,302,899 CITY OF DUBLIN DUBLIN CROSSING CONTRIBUTION CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES REVENUES: Interest Developer fees Total Revenues EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE (DEFICIT) ENDING FUND BALANCE AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 Budgeted Amounts Original Final Actual Amounts $11,277 $15,000,000 15,000,000 15,000,000 15,011,277 15,000,000 15,011,277 {$15,049,8542 {549,791) {15,049,854) {549,791) ($49,8542 14,461,486 {68,934) $14,392,552 103 Variance with Final Budget Positive (Negative) $11,277 11,277 11,277 14,500,063 14,500,063 $14,511,340 .... I This Page Left Intentionally Blank NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. SPECIAL REVENUE FUND PUBLIC SAFETY: SPECIAL CRIMINAL ACTIVITY Established to account for receipt of funds derived from asset forfeitures. VEIDCLE ABATEMENT Established to account for the use of funds received from vehicle registration of Dublin residents for the towing of abandoned vehicles in city limits. SUPPLEMENTAL LAW ENFORCEMENT (SLESJCOPS) Established to account for police expenditures funded by a State grant. TRAFFIC SAFETY Established to account for the receipt of traffic fines and traffic safety expenditures. FEDERAL ASSET SEIZURE Established to account for the receipts and expenditures of the Federal seizure funds. EMERGENCY MEDICAL SERVICES (EMS) Established to account for excise taxes received to fund the costs of providing Emergency Medical Services. ENFORCEMENT GRANTS Established to account for miscellaneous grants received for police expenditures not reported in the above funds. TRANSPORTATION: STATE GAS TAX Established to account for the receipt of state gasoline taxes and expenditures. SAFE TEA-LU Established to account for the revenue received from the U.S. Department of Transportation under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legal for Users fund. 105 NON-MAJOR GOVERNMENTAL FUNDS (Continued) MEASURE B SALES TAX-LOCAL STREETS Established to account for an Alameda County voter sales tax used for improvements on streets and roads. MEASURE B SALES TAX-BIKE PEDESTRIAN Established to account for an Alameda County voter approved increase in sales tax used for bike and pedestrian related projects. MEASURE B GRANTS Established to account for transportational projects financed by grants, funded by an Alameda County voter approved increase in sales tax. MEASURE BB SALES TAX-STREETS AND ROADS Established to account for an Alameda County voter approved increase in sales tax used for improvements on streets and roads. MEASURE BB SALES TAX-BIKE/PEDESTRIAN Established to account for an Alameda County voter approved increase in sales tax used for bike and pedestrian related projects. TRANSPORTATION FUND FOR CLEAN AIR (TFCA) Established to account for a portion of vehicle registration fee used for achieving the reduction of motor vehicle emissions. CONGESTION MANAGEMENT AGENCY Established to account for funds received from the Alameda County Congestion Management Agency. IDGHW AY SAFETY TRAFFIC REDUCTION BOND Established to account for the receipts of funds for local streets and road improvements. FEDERAL TRANSPORTATION (TIGER) Established to account for the receipts of Federal grants for approved street and trail improvements funded by a one-time Federal grants. ACTC VEIDCLE REGISTRATION FEE Established to account for an Alameda County Transportation Commission (ACTC) voter approved increase in vehicle registration fee that is distributed by ACTC to be used for street and road system maintenance. 106 NON-MAJOR GOVERNMENTAL FUNDS (Continued) TDA Established to account for the financial activities associated with allocations funded by the State of California Transportation Development Act (IDA) for the Pedestrian/Bicycle Projects." ENVIRONMENTAL: GARBAGE/RECYCLING Established to account for the following activities: Measure D Recycling Established to account for the use of funds received which are levied by the County pursuant to a charter amendment and are provided for recycling and related activities. This fund also accounts for other locally derived funds for recycling related activities. Garbage Service Established to account for the use of funds received which are levied by the county on behalf of the City for garbage pick-up and removal and recycling services. Local Recycling Established to account for locally derived funds collected for a commercial organic and recycling program and activities retained by the City at the end of the franchise held by Waste Management me. These funds are independent of the funds distributed by Stop Waste pursuant to the Alameda County Recycling Measure. A VI ECONOMIC BENEFIT/BUSINESS ASSISTANCE PROGRAM Established to account for the grant received from Amador Valley fudustry and to provide business owners funding for eligible environmental related improvements. STORM WATER MANAGEMENT Established to account for the following activities: Storm Water Management Established to account for the funds received from the State and designated specifically for the use of storm water related activities. Dublin/Dougherty Storm Water Management Established to account for funds designated for the management of the Dublin/Dougherty area storm water units. Village Parkway Storm Water Management Established to account for funds designated for management of the Village Parkway area storm water units. 107 NON-MAJOR GOVERNMENTAL FUNDS (Continued) BOX CULVERT Established to account for the funds designated for the maintenance and repairs of box culvert in the East Dublin area. PARKS, CULTURAL, AND ARTS: EAST BAY REGIONAL PARK DISTRICT Establish to account for the funds received from the East Bay Regional Park District from the Measure WW - Extend Existing East Bay Regional Park District Bond With No Increase In Tax Rate approved by voters on November 4, 2008. PUBLIC ART Establish to account for the fees received from developers of properties, which can only be used for the purchase design, development, and construction of Public Art projects within the City of Dublin. MISCELLANEOUS SPECIAL REVENUE Established to account for the following activities: Cable TV Facilities Established to account for Cable TV Facilities fees collected from Cable Television providers and passed through to the City for local cable television as allowed under State and Federal franchising laws. Noise Mitigation Establish to account for the fees received from developers of properties, which can only be used for the noise mitigation measures. Citywide Events (Customer Service) Fund Establish to account for event ticket sales and donations, to be spent on special events citywide. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) Used to account for grants and expenditures related to Community Development Block Grants received. HCD HOUSING RELATED PARKS GRANT Established to account for a Housing-Related Parks (HRP) grant funding from the Department of Housing and Community Development pursuant to the Housing and Emergency Shelter Trust Fund Act of 2006 (Proposition lC.) MAINTENANCE DISTRICTS: Established to account for revenue and related expenditures of lighting and landscape districts. 108 This Page Left Intentionally Blank CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUND COMBINING BALANCE SHEET JUNE 30, 2016 Special Revenue Funds Special Supplemental Criminal Vehicle Law Activity Abatement Enforcement ASSETS Cash and investments $134,153 $329,645 $30,848 Accounts receivable Prep aids 2,495 Total Assets $136,648 $329,645 $30,848 LIABILITIES Accounts payable $3,275 Deposits payable 27,313 Due to other funds Total Liabilities 30,588 FUND BALANCE (DEFICIT) Fund balance (Deficit): Restricted Public safety programs 106,060 $329,645 $30,848 Street maintenance and construction Health and welfare programs Recycling programs Capital improvement projects Unassigned Total Fund Balances (Deficits) 106,060 329,645 30,848 Total Liabilities and Fund Balances $136,648 $329,645 $30,848 110 Traffic Safety $325,609 14,192 $339,801 $6,658 6,658 333,143 333,143 $339,801 Federal Asset Seizure $15,507 $15,507 $15,507 15,507 $15,507 Emergency Medical Services $123,182 47,517 $170,699 $97,540 97,540 73,159 73,159 $170,699 Enforcement Grants $5,696 $5,696 $5,696 5,696 $5,696 Special Revenue Funds State Gas Tax $3,822,721 145,512 $3,968,233 $28,092 28,092 3,940,141 3,940,141 $3,968,233 111 SAFETEA-LU MeasureB Sales Tax Local Streets $498,012 68,494 $566,506 $566,506 566,506 $566,506 MeasureB Sales Tax Bike/Pedestrian $234,153 26,398 $260,551 $99 99 $260,452 260,452 $260,551 (Continued) ASSETS Cash and investments Accounts receivable Prepaids Total Assets LIABILITIES Accounts payable Deposits payable Due to other funds Total Liabilities FUND BALANCE (DEFICIT) Fund balance (Deficit): Restricted Public safety programs CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUND COMBINING BALANCE SHEET JUNE 30, 2016 Special Revenue Funds Measure BB MeasureB Sales Tax Grants Streets and Roads $403,848 60,311 $464,159 $410,440 410,440 Street maintenance and construction $464,159 Health and welfare programs Recycling programs Capital improvement projects Unassigned ~410,4402 Total Fund Balances (Deficits) {410,4402 464,159 Total Liabilities and Fund Balances $464,159 112 Measure BB Transportation Sales Tax for Clean Air Bike/Pedestrian (TFCA) $140,902 21,134 $162,036 $28,938 28,938 $162,036 {28,9382 162,036 {28,9382 $162,036 Congestion Management Agency $290,982 $290,982 $290,982 290,982 $290,982 Highway Safety Traffic Reduction Bond Special Revenue Funds Federal Transportation (TIGER) ACTC Vehicle Registration Fee $189,136 52,424 $241,560 $26,336 26,336 215,224 215,224 $241,560 113 IDA $33,311 33,311 {33,311} {33,311} Garbage/ Recycling $514,424 60,851 $575,275 $32,333 32,333 542,942 542,942 $575,275 (Continued) CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUND COMBINING BALANCE SHEET JUNE 30, 2016 Special Revenue Funds ASSETS Cash and investments Accounts receivable Prep aids Total Assets LIABILITIES Accounts payable Deposits payable Due to other funds Total Liabilities FUND BALANCE (DEFICIT) Fund balance (Deficit): Restricted Public safety programs Street maintenance and construction Health and welfare programs Recycling programs Capital improvement projects Unassigned Total Fund Balances (Deficits) Total Liabilities and Fund Balances A VI Economic Storm Benefit/Business Water Assistance Program Management Box Culvert $140,176 $363,476 $140,176 $363,476 $840,857 840,857 $363,476 (700,681) (700,681) 363,476 $140,176 $363,476 114 East Bay Regional Park District Public Art $3,415,152 $3,415,152 $3,415,152 3,415,152 $3,415,152 Miscellaneous Special Revenue $544,232 33,961 $578,193 $95 3,036 3,131 575,062 575,062 $578,193 Community Development Block Grant $35,008 $35,008 $6,359 28,649 35,008 $35,008 Special Revenue Funds HCD Housing Related Parks Grant $99,955 $99,955 $99,955 99,955 $99,955 115 1983-1 Street Lighting $168,902 9,981 $178,883 $9,997 9,997 168,886 168,886 $178,883 Maintenance Districts 1983-2 Stagecoach Landscape $119,104 18 $119,122 $6,737 6,737 112,385 112,385 $119,122 1986-1 Dougherty Landscape $220,857 712 $221,569 $2,665 2,665 218,904 218,904 $221,569 (Continued) ASSETS Cash and investments Accounts receivable Prepaids Total Assets LIABILITIES Accounts payable Deposits payable Due to other funds Total Liabilities FUND BALANCE (DEFICIT) Fund balance (Deficit): Restricted Public safety programs CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUND COMBINING BALANCE SHEET JUNE 30, 2016 Special Revenue Funds Maintenance Districts 1997-1 1999-1 Santa Rita East Dublin Landscape Street Lighting $398,019 $568,818 617 1,378 $398,636 $570,196 $8,995 $2,253 8,995 2,253 Street maintenance and construction 389,641 567,943 Health and welfare programs Recycling programs Capital improvement projects Unassigned Total Fund Balances (Deficits) 389,641 567,943 Total Liabilities and Fund Balances $398,636 $570,196 116 Total Non-Major Governmental Funds $12,806,527 869,490 2,495 $13,678,512 $231,434 30,349 1,633,177 1,894,960 894,058 7,429,753 675,017 542,942 3,415,152 (1,173,370) 11,783,552 $13,678,512 This Page Left Intentionally Blank CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2016 Special Revenue Funds Special Supplemental Criminal Vehicle Law Activity Abatement Enforcement REVENUES Property taxes Taxes other than property Intergovernmental $34,432 $114,619 Charges for service Interest $903 2,792 387 Fines and forfeitures Developer fees Other revenue 6,836 Special assessments Total Revenues 7,739 37,224 115,006 EXPENDITURES Current: General government Police 1,020 100,000 Fire Public works Community development Total Expenditures 1,020 100,000 REVENUES OVER (UNDER) EXPENDITURES 6,719 37,224 15,006 OTHER FINANCING SOURCES (USES) Transfer out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES 6,719 37,224 15,006 FUND BALANCES (DEFICITS): Beginning of year 99,341 292,421 15,842 End of year $106,060 $329,645 $30,848 118 Traffic Safety $2,907 174,855 177,762 130,203 130,203 47,559 (35,931) (35,931) 11,628 321,515 $333,143 Federal Asset Seizure $356 356 134,573 134,573 (134,217) (134,217) 149,724 $15,507 Emergency Medical Services $184,502 737 177,093 362,332 342,152 342,152 20,180 20,180 52,979 $73,159 Enforcement Grants $3,690 53 3,743 3,640 3,640 103 103 5,593 $5,696 Special Revenue Funds State Gas Tax $1,220,165 33,347 140,247 1,393,759 166,462 416,810 583,272 810,487 {431,963} (431,963} 378,524 3,561,617 $3,940, 141 119 Measure B Measure B Sales Tax Sales Tax SAFE TEA-LU Local Streets Bike/Pedestrian $435,604 $167,885 $470,000 5,322 1,778 470,000 440,926 169,663 35,885 11,250 35,885 11,250 434,115 440,926 158,413 (65,604} {409,225} {30,000} {65,604} {409,225} {30,000} 368,511 31,701 128,413 {368,511} 534,805 132,039 $566,506 $260,452 (Continued) CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2016 Special Revenue Funds Measure BB Measure BB MeasureB Sales Tax Sales Tax Grants Streets and Roads Bike/Pedestrian REVENUES Property taxes Taxes other than property $391,238 $137,094 Intergovernmental Charges for service Interest 772 590 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 392,010 137,684 EXPENDITURES Current: General government Police Fire Public works Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 392,010 137,684 OTHER FINANCING SOURCES (USES) Transfer out ($410,440) Total Other Financing Sources (Uses) (410,440) NET CHANGE IN FUND BALANCES (410,440) 392,010 137,684 FUND BALANCES (DEFICITS): Beginning of year 72,149 24,352 Endofyear {$410,440} $464,159 $162,036 120 Transportation for Clean Air (TFCA) $14,500 14,500 14,367 14,367 133 (29,071) (29,071) (28,938) {$28,938} Congestion Management Agency Highway Safety Traffic Reduction Bond $4,327 4,327 (4,327) (4,327) 4,327 Special Revenue Funds Federal Transportation (TIGER) $579 579 579 579 ($5792 ACTC Vehicle Registration Fee $273,322 1,462 274,784 149,648 149,648 125,136 {84,1002 {84,1002 41,036 174,188 $215,224 121 TDA {$33,3112 {33,3112 (33,311) ($33,3112 Garbage/ Recycling $178,540 3,509,802 5,891 2,200 3,696,433 3,506,218 128,706 3,634,924 61,509 61,509 481,433 $542,942 (Continued) CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2016 Special Revenue Funds A VI Economic Storm Benefit/Business Water Assistance Program Management Box Culvert REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $1,340 $3,283 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 1,340 3,283 EXPENDITURES Current: General government $38 Police Fire Public works 10,000 Community development Total Expenditures 38 10,000 REVENUES OVER (UNDER) EXPENDITURES (38) (8,660) 3,283 OTHER FINANCING SOURCES (USES) Transfer out (892,066) Total Other Financing Sources (Uses) (892,066) NET CHANGE IN FUND BALANCES (38) (900,726) 3,283 FUND BALANCES (DEFICITS): Beginning of year $38 200,045 360,193 End of year ~$700,6811 $363,476 122 East Bay Regional Park District Public Art $29,655 514,281 2,500 546,436 546,436 (122,478) (122,478} 423,958 2,991,194 $3,415,152 Miscellaneous Special Revenue $178,309 4,212 2,528 185,049 32,589 32,589 152,460 {13,217} {13,217} 139,243 435,819 $575,062 Community Development Block Grant $53,226 53,226 47,425 47,425 5,801 {5,801} {5,801} Special Revenue Funds HCD Housing Related Parks Grant $432,450 432,450 432,450 {332,495} {332,495} 99,955 $99,955 123 1983-1 Street Lighting $952 292,272 293,224 312,796 312,796 (19,572) (19,572) 188,458 $168,886 Maintenance Districts 1983-2 Stagecoach Landscape $832 86,208 87,040 56,261 56,261 30,779 30,779 81,606 $112,385 1986-1 Dougherty Landscape $1,591 141,753 143,344 76,012 76,012 67,332 67,332 151,572 $218,904 (Continued) CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2016 SEecial Revenue Funds Maintenance Districts Total 1997-1 1999-1 Nonmajor Santa Rita East Dublin Governmental LandscaEe Street Lighting Funds REVENUES Property taxes Taxes other than property $1,131,821 Intergovernmental 2,979,446 Charges for service 3,688,111 Interest $3,139 $4,790 107,091 Fines and forfeitures 174,855 Developer fees 516,809 Other revenue 152,362 Special assessments 364,752 297,136 1,359,214 Total Revenues 367,891 301,926 10,109,709 EXPENDITURES Current: General government 3,745,519 Police 239,233 Fire 342,152 Public works 278,989 160,779 1,745,821 Community development 47,425 Total Expenditures 278,989 160,779 6,120,150 REVENUES OVER (UNDER) EXPENDITURES 88,902 141,147 3,989,559 OTHER FINANCING SOURCES (USES) Transfer out {55,7162 {2,951,4182 Total Other Financing Sources (Uses) {55,7162 {2,951,4182 NET CHANGE IN FUND BALANCES 88,902 85,431 1,038,141 FUND BALANCES (DEFICITS): Beginning of year 300,739 482,512 10,745,411 Endofyear $389,641 $567,943 $11,783,552 124 This Page Left Intentionally Blank CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 SPECIAL CRIMINAL ACTIVITY Bud~eted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $417 $417 $903 Fines and forfeitures Developer fees Other revenue 6,836 Special assessments Total Revenues 417 417 7,739 EXPENDITURES Current: General government Police 3,980 3,980 1,020 Fire Public works Park and community services Community development Total Expenditures 3,980 3,980 1,020 REVENUES OVER (UNDER) EXPENDITURES {3,5632 {3,5632 6,719 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES {$3,5632 {$3,5632 6,719 FUND BALANCE (DEFICITS): Beginning ofyear 99,341 Endofyear $106,060 126 Variance Positive (Negative) $486 6,836 7,322 2,960 2,960 10,282 $10,282 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 VEHICLE ABATEMENT Bud~eted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $30,457 $30,457 $34,432 Charges for service Interest 1,717 1,717 2,792 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 32,174 32,174 37,224 EXPENDITURES Current: General government Police 822 822 Fire Public works Park and community services Community development Total Expenditures 822 822 REVENUES OVER (UNDER) EXPENDITURES 31,352 31,352 37,224 OTHER FINANCING SOURCES (USES) Transfers (out) {21,0002 Total Other Financing Sources (Uses) {21,0002 NET CHANGE IN FUND BALANCES $10,352 $31,352 37,224 FUND BALANCE (DEFICITS): Beginning of year 292,421 Endofyear $329,645 127 Variance Positive (Negative) $3,975 1,075 5,050 822 822 5,872 $5,872 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 SUPPLEMENTAL LAW ENFORCEMENT Bud~eted Amounts Original Final Actual REVENUES Property truces Taxes other than property Intergovernmental $100,000 $100,000 $114,619 Charges for service Interest 167 167 387 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 100,167 100,167 115,006 EXPENDITURES Current: General government Police 100,000 100,000 100,000 Fire Public works Park and community services Community development Total Expenditures 100,000 100,000 100,000 REVENUES OVER (UNDER) EXPENDITURES 167 167 15,006 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $167 $167 15,006 FUND BALANCE (DEFICITS): Beginning of year 15,842 Endofyear $30,848 128 Variance Positive (Negative) $14,619 220 14,839 14,839 $14,839 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 TRAFFIC SAFETY Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $904 $904 $2,907 Fines and forfeitures 148,279 148,279 174,855 Developer fees Other revenue Special assessments Total Revenues 149,183 149,183 177,762 EXPENDITURES Current: General government Police Fire Public works 148,126 130,206 130,203 Park and community services Community development Total Expenditures 148,126 130,206 130,203 REVENUES OVER (UNDER) EXPENDITURES 1,057 18,977 47,559 OTHER FINANCING SOURCES (USES) Transfers (out) (66,489) (133,923) (35,931) Total Other Financing Sources (Uses) (66,489) (133,923) (35,931) NET CHANGE IN FUND BALANCES ($65,432) ($114,946) 11,628 FUND BALANCE (DEFICITS): Beginning of year 321,515 End of year $333,143 129 Variance Positive (Negative) $2,003 26,576 28,579 3 3 28,582 97,992 97,992 $126,574 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 FEDERAL ASSET SEIZURE Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $675 $675 $356 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 675 675 356 EXPENDITURES Current: General government Police 136,654 134,573 Fire Public works Park and community services Community development Total Expenditures 136,654 134,573 REVENUES OVER (UNDER) EXPENDITURES 675 (135,979) (134,217) OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $675 ($135,979) (134,217) FUND BALANCE (DEFICITS): Beginning of year 149,724 Endofyear $15,507 130 Variance Positive (Negative) ($319) (319) 2,081 2,081 1,762 $1,762 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 EMERGENCY MEDICAL SERVICES Bud~eted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $185,412 $185,412 $184,502 Charges for service Interest 292 292 737 Fines and forfeitures Developer fees Other revenue Special assessments 164,816 164,816 177,093 Total Revenues 350,520 350,520 362,332 EXPENDITURES Current: General government Police Fire 348,416 348,416 342,152 Public works Park and community services Community development Total Expenditures 348,416 348,416 342,152 REVENUES OVER (UNDER) EXPENDITURES 2,104 2,104 20,180 OTIIER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $2,104 $2,104 20,180 FUND BALANCE (DEFICITS): Beginning of year 52,979 End of year $73,159 131 Variance Positive (Negative) ($910) 445 12,277 11,812 6,264 6,264 18,076 $18,076 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 ENFORCEMENT GRANT Bud~eted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $3,639 $3,690 Charges for service Interest $34 34 53 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 34 3,673 3,743 EXPENDITURES Current: General government Police 3,639 3,640 Fire Public works Park and community services Community development Total Expenditures 3,639 3,640 REVENUES OVER (UNDER) EXPENDITURES 34 34 103 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $34 $34 103 FUND BALANCE (DEFICITS): Beginning of year 5,593 Endofyear $5,696 132 Variance Positive (Negative) $51 19 70 (1) (1) 69 $69 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 STATE GAS TAX Bud8eted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $1,134,968 $1,134,968 $1,220,165 Charges for service Interest 11,349 11,349 33,347 Fines and forfeitures Developer fees Other revenue 160,000 140,247 Special assessments Total Revenues 1,146,317 1,306,317 1,393,759 EXPENDITURES Current: General government 234,870 166,462 Police Fire Public works 557,159 606,015 416,810 Park and community services Community development Total Expenditures 557,159 840,885 583,272 REVENUES OVER (UNDER) EXPENDITURES 589,158 465,432 810,487 OTHER FINANCING SOURCES (USES) Transfers (out) (624,954) (1,840,054) (431,963) Total Other Financing Sources (Uses) (624,954) (1,840,054) (431,963) NET CHANGE IN FUND BALANCES ($35,796) ($1,374,622) 378,524 FUND BALANCE (DEFICITS): Beginning of year 3,561,617 End of year $3,940,141 133 Variance Positive (Negative) $85,197 21,998 (19,753) 87,442 68,408 189,205 257,613 345,055 1,408,091 1,408,091 $1,753,146 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 SAFETEA-LU Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $470,000 $470,000 $470,000 Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 470,000 470,000 470,000 EXPENDITURES Current: General government 35,885 Police Fire Public works Park and community services Community development Total Expenditures 35,885 REVENUES OVER (UNDER) EXPENDITURES 470,000 470,000 434,115 OTHER FINANCING SOURCES (USES) Transfers (out) ($65,604) (65,604) Total Other Financing Sources (Uses) (65,604) (65,604) NET CHANGE IN FUND BALANCES $470,000 $404,396 368,511 FUND BALANCE (DEFICITS): Beginning of year (368,511) End ofyear 134 Variance Positive (Negative) ($35,885) (35,885) (35,885) ($35,885) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 MEASURE B SALES TAX STREETS AND ROADS Variance Bud8eted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property $709,994 $389,994 $435,604 $45,610 Intergovernmental Charges for service Interest 2,033 2,033 5,322 3,289 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 712,027 392,027 440,926 48,899 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 712,027 392,027 440,926 48,899 OTHER FINANCING SOURCES (USES) Transfers (out) (565,893) (1,115,849) (409,225) 706,624 Total Other Financing Sources (Uses) (565,893) (1,115,849) (409,225) 706,624 NET CHANGE IN FUND BALANCES $146,134 ($723,822) 31,701 $755,523 FUND BALANCE (DEFICITS): Beginning of year 534,805 End of year $566,506 135 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 MEASURE B SALES TAX BIKE/PEDESTRIAN Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property $240,001 $130,001 $167,885 $37,884 Intergovernmental Charges for service Interest 389 389 1,778 1,389 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 240,390 130,390 169,663 39,273 EXPENDITURES Current: General government Police Fire Public works 17,962 22,062 11,250 10,812 Park and community services Community development Total Expenditures 17,962 22,062 11,250 10,812 REVENUES OVER (UNDER) EXPENDITURES 222,428 108,328 158,413 50,085 OTIIER FINANCING SOURCES (USES) Transfers (out) (30,000) (72,260) (30,000) 42,260 Total Other Financing Sources (Uses) (30,000) (72,260) (30,000) 42,260 NET CHANGE IN FUND BALANCES $192,428 $36,068 128,413 $92,345 FUND BALANCE (DEFICITS): Beginning of year 132,039 End of year $260,452 136 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 MEASURE B GRANTS Budj1ieted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $6,267,000 Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 6,267,000 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 6,267,000 OTHER FINANCING SOURCES (USES) Transfers (out) (6,267,000) ($410,440) Total Other Financing Sources (Uses) (6,267,000) (410,440) NET CHANGE IN FUND BALANCES (410,440) FUND BALANCE (DEFICITS): Beginning of year Endofyear {$410,440~ 137 Variance Positive (Negative) ($6,267,000) (6,267,000) (6,267,000) 5,856,560 5,856,560 ($410,440) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 MEASURE BB SALES TAX STREETS AND ROADS Variance Bud~eted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property $320,000 $391,238 $71,238 Intergovernmental Charges for service Interest 707 772 65 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 320,707 392,010 71,303 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 320,707 392,010 71,303 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $320,707 392,010 $71,303 FUND BALANCE (DEFICITS): Beginning of year 72,149 End of year $464,159 138 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 MEASURE BB SALES TAX BIKE/PEDESTRIAN Variance BudBeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property $110,000 $137,094 $27,094 Intergovernmental Charges for service Interest 590 590 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 110,000 137,684 27,684 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 110,000 137,684 27,684 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $110,000 137,684 $27,684 FUND BALANCE (DEFICITS): Beginning of year 24,352 Endofyear $162,036 139 CITY OF DUBLIN BlJDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 TRANSPORTATION FOR CLEAN AIR {TFCA2 Variance Bud!!;eted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $90,000 $14,500 ($75,500) Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 90,000 14,500 (75,500) EXPENDITURES Current: General government Police Fire Public works 14,367 14,367 Park and community services Community development Total Expenditures 14,367 14,367 REVENUES OVER (UNDER) EXPENDITURES 75,633 133 (75,5002 OTHER FINANCING SOURCES (USES) Transfers (out) (75,6332 (29,071) $46,562 Total Other Financing Sources (Uses) (75,6332 (29,0712 46,562 NET CHANGE IN FUND BALANCES (28,938) ($28,9382 FUND BALANCE (DEFICITS): Beginning of year Endofyear {$28,9382 140 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 CONGESTION MANAGEMENT AGENCY Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $621,513 $621,513 Charges for service Interest Fines and forfeitures- Developer fees Other revenue Special assessments Total Revenues 621,513 621,513 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 621,513 621,513 OTHER FINANCING SOURCES (USES) Transfers (out) ($621,513) Total Other Financing Sources (Uses) ~621,5132 NET CHANGE IN FUND BALANCES $621,513 FUND BALANCE (DEFICITS): Beginning of year Endofyear 141 Variance Positive (Negative) ($621,513) (621,513) (621,513) $621,513 621,513 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE30, 2016 HIGHWAY SAFETY TRAFFIC REDUCTION BOND Bud8eted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $26 $26 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 26 26 EXPENDITURES Current: General government $4,327 Police Fire Public works Park and community services Community development Total Expenditures 4,327 REVENUES OVER (UNDER) EXPENDITURES 26 26 (4,327) OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $26 $26 (4,327) FUND BALANCE (DEFICITS): Beginning of year 4,327 End of year 142 Variance Positive (Negative) ($26) (26) (4,327) (4,327) (4,353) ($4,353) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUN"'E 30, 2016 FEDERAL TRANSPORTATION (TIGER) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTIIBR FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year Endofyear Budgeted Amounts Original Final Actual $579 579 579 579 ($579) 143 Variance Positive (Negative) $579 579 579 $579 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 ACTC VEHICLE REGISTRATION FEE Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $234,000 $234,000 $273,322 Charges for service Interest 718 718 1,462 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 234,718 234,718 274,784 EXPENDITURES Current: General government Police Fire Public works 149,959 149,959 149,648 Park and community services Community development Total Expenditures 149,959 149,959 149,648 REVENUES OVER (UNDER) EXPENDITURES 84,759 84,759 125,136 OTHER FINANCING SOURCES (USES) Transfers (out) (35,160) (243,520) (84,100) Total Other Financing Sources (Uses) (35,160) (243,520) (84,100) NET CHANGE IN FUND BALANCES $49,599 ($158,761) 41,036 FUND BALANCE (DEFICITS): Beginning of year 174,188 End of year $215,224 144 Variance Positive (Negative) $39,322 744 40,066 311 311 40,377 159,420 159,420 $199,797 REVENUES Property truces Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 IDA Bud~eted Amounts Original Final $148,311 $148,311 148,311 148,311 115,000 115,000 115,000 115;000 33,311 33,311 OTHER FINANCING SOURCES (USES) Transfers (out) (33,311) Total Other Financing Sources (Uses) (33,311) NET CHANGE IN FUND BALANCES $33,311 FUND BALANCE (DEFICITS): Beginning of year End of year 145 Variance Positive Actual (Negative) ($148,311) (148,311) 115,000 115,000 (33,311) ($33,311) (33,311) (33,311) ($33,311) {$33,3112 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 GARBAGE/RECYCLING Budl!ieted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $157,000 $243,000 $178,540 Charges for service 3,340,715 3,503,403 3,509,802 Interest 1,759 1,759 5,891 Fines and forfeitures Developer fees Other revenue 2,200 Special assessments Total Revenues 3,499,474 3,748,162 3,696,433 EXPENDITURES Current: General government 3,344,889 3,508,702 3,506,218 Police Fire Public works 148,376 287,662 128,706 Park and community services Community development Total Expenditures 3,493,265 3,796,364 3,634,924 REVENUES OVER (UNDER) EXPENDITURES 6,209 (48,202) 61,509 OTHER FINANCING SOURCES (USES) Transfers (out) (86,000) Total Other Financing Sources (Uses) (86,000) NET CHANGE IN FUND BALANCES $6,209 ($134,202) 61,509 FUND BALANCE (DEFICITS): Beginning of year 481,433 Endofyear $542,942 146 Variance Positive (Negative) ($64,460) 6,399 4,132 2,200 (51,729) 2,484 158,956 161,440 109,711 86,000 86,000 $195,711 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 A VI ECONOMIC BENEFIT/BUSINESS ASSISTANCE PROGRAM REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year Endofyear Budgeted Amounts Original Final Actual $38 38 (38) (38) $38 147 Variance Positive (Negative) ($38) (38) (38) ($38) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 STORM WATER MANAGEMENT BudBeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $944,329 Charges for service Interest $1,010 1,010 $1,340 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 1,010 945,339 1,340 EXPENDITURES Current: General government Police Fire Public works 10,000 10,000 10,000 Park and community services Community development Total Expenditures 10,000 10,000 10,000 REVENUES OVER (UNDER) EXPENDITURES (8,990) 935,339 (8,660) OTHER FINANCING SOURCES (USES) Transfers (out) (937,030) (892,066) Total Other Financing Sources (Uses) (937,030) (892,066) NET CHANGE IN FUND BALANCES ($8,990) ($1,691) (900,726) FUND BALANCE (DEFICITS): Beginning of year 200,045 Endofyear {$700,681~ 148 Variance Positive (Negative) ($944,329) 330 (943,999) (943,999) 44,964 44,964 ($899,035) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 BOX CULVERT Bud~eted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $2,160 $2,160 $3,283 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 2,160 2,160 3,283 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 2,160 2,160 3,283 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $2,160 $2,160 3,283 FUND BALANCE (DEFICITS): Beginning of year 360,193 Endofyear $363,476 149 Variance Positive (Negative) $1,123 1,123 1,123 $1,123 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 EAST BAY REGIONAL PARK DISTRICT REVENUES Property taxes Taxes other than property · Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year Endofyear Budgeted Amounts Original Final Actual 150 Variance Positive (Negative) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 PUBLIC ART Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $11,538 $11,538 $29,655 Fines and forfeitures Developer fees 510,000 514,281 Other revenue 2,500 Special assessments Total Revenues 11,538 521,538 546,436 EXPENDITURES Current: General government Police Fire Public works Park and community services 57,500 65,500 Community development Total Expenditures 57,500 65,500 REVENUES OVER (UNDER) EXPENDITURES {45,962} 456,038 546,436 OTHER FINANCING SOURCES (USES) Transfers (out) {439,554} {432,391} {122,478} Total Other Financing Sources (Uses) {439,554} {432,391} {122,478} NET CHANGE IN FUND BALANCES {$485,516} $23,647 423,958 FUND BALANCE (DEFICITS): Beginning of year 2,991,194 End of year $3,415,152 151 Variance Positive (Negative) $18,117 4,281 2,500 24,898 65,500 65,500 90,398 309,913 309,913 $400,311 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 MISCELLANEOUS SPECIAL REVENUE Budgeted Amounts Original Final Actual $150,000 $150,000 $178,309 959 959 4,212 957 957 2,528 151 916 151,916 185,049 35,340 35,340 32,589 35 340 35 340 32,589 116 576 116 576 152 460 {41520002 {13,217) Total Other Financing Sources (Uses) {41520002 {13,217) NET CHANGE IN FUND BALANCES $116,576 {$298,424) 139,243 FUND BALANCE (DEFICITS): Beginning of year 435 819 End of year $575,062 152 Variance Positive (Negative} $28,309 3,253 1,571 33 133 2,751 2 751 35 884 401,783 401 783 $437,667 REVENUES Property taxes Truces other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 COMMUNITY DEVELOPMENT BLOCK GRANT Variance Budgeted Amounts Positive Original Final Actual (Negative) $76,412 $76,412 $53,226 ($23,186) 76,412 76,412 532226 {232186} 69 812 72,709 47 425 252284 69,812 72 709 47 425 252284 6 600 3 703 5 801 2 098 {6 2600} {616002 {528012 799 Total Other Financing Sources (Uses) {626002 {626002 (5,8012 799 NET CHANGE IN FUND BALANCES {$2,8972 $2,897 FUND BALANCE (DEFICITS): Beginning of year End of year 153 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCJNG SOURCES (USES) Transfers (out) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 HCD HOUSING RELATED PARKS GRANT Variance Budgeted Amounts Positive Original Final Actual (Negative) $599,025 $432,450 ($166,575) 599,025 432,450 (166,575) 599,025 432,450 (166,575) (599,025) (332,495) 266,530 Total Other Financing Sources (Uses) (599,025) (332,495) 266,530 NET CHANGE JN FUND BALANCES 99,955 $99,955 FUND BALANCE (DEFICITS): Beginning of year End of year $99,955 154 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 1983-1 STREET LIGHTING MAINTENANCE DISTRICT Budgeted Amounts Original Final Actual $1,152 $1,152 $952 2891108 289,108 292,272 290,260 290,260 293,224 305,698 317,242 312,796 305,698 317,242 312,796 (15,438) (26,982) (19,572) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES ($151438) ($26,982) (19,572) FUND BALANCE (DEFICITS): Beginning of year 1881458 Endofyear $168,886 155 Variance Positive (Negative) ($200) 3 164 2 964 4,446 4446 7 410 $7,410 REVENUES Property taxes Taxes other than property futergovernmental Charges for service futerest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 1983-2 STAGECOACH LANDSCAPE MAINTENANCE DISTRICT Budgeted Amounts Original Final Actual $346 $346 $832 87,398 87 398 86,208 87,744 87 744 87 040 81,107 81,887 56,261 81 107 81,887 56 261 6 637 5,857 30 779 Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $6,637 $5,857 30,779 FUND BALANCE (DEFICITS): Beginning of year 81,606 End of year $112,385 156 Variance Positive (Negative) $486 (1,190) (704) 25,626 25,626 24,922 $24,922 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 1986-1 DOUGHERTY LANDSCAPE MAINIENANCE DISTRICT Budgeted Amounts Original Final Actual $700 $700 $1,591 139,350 139,350 141,753 140,050 140 050 143,344 133,940 134,720 76,012 133 940 134 720 76,012 6 110 5 330 67,332 Total Other Financing Sources (Uses) NET CHANGE 1N FUND BALANCES $6,110 $5,330 67,332 FUND BALANCE (DEFICITS): Beginning of year 1511572 End of year $218,904 157 Variance Positive (Negative) $891 2,403 3 294 58,708 58,708 62,002 $62,002 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) CITY OF DUBLIN BUDGETED-NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 1997-1 SANTA RITA LANDSCAPE MAINTENANCE DISTRICT Budseted Amounts Orisinal Final Actual $1,369 $1,369 $3,139 337,407 337,407 364 752 338 776 338,776 367 891 326,631 327,411 278,989 326,631 327,411 278,989 12,145 11365 88 902 Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $12,145 $11,365 88,902 FUND BALANCE (DEFICITS): Besinniflg of year 300,739 End of year $389,641 158 Variance Positive (Nesative) $1,770 27 345 29115 48,422 48 422 77 537 $77,537 REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers (out) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2016 1999-1 EAST DUBLIN STREET LIGHTING MAINTENANCE DISTRICT Budgeted Amounts Original Final Actual $2,433 $2,433 $4,790 268,585 268,585 297,136 271,018 271,018 301 1926 161,785 161,785 160,779 161,785 161 1785 160 779 109,233 109,233 141147 {35,884} (68,349} (551716} Total Other Financing Sources (Uses) {35,884} (68 1349} (55,716} NET CHANGE IN FUND BALANCES $73,349 $40,884 85,431 FUND BALANCE (DEFICITS): Beginning of year 482,512 End of year $567,943 159 Variance Positive (Negative} $2,357 28,551 30,908 1,006 1,006 31 914 12 633 12 633 $44,547 This Page Left Intentionally Blank INTERNAL SERVICE FUND Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost reimbursement basis. The City has established five of these types of funds: VEHICLE REPLACEMENT This fund is an interest bearing Internal Service Fund established to finance necessary vehicle replacements. BUILDING REPLACEMENT This fund is an interest bearing Internal Service Fund established to finance future major building component repair expenditures. EQUIPMENT REPLACEMENT This fund is an interest bearing Internal Service Fund established to finance necessary equipment replacements. RETIREE HEALTH CARE This fund is an interest bearing Internal Service Fund established to account for the contribution made to the California Employers' Retiree Benefit Trust Fund for future retiree health care benefits. PERS SIDE FUND This fund was established to account for the repayment to the general fund for the advance made in fiscal year 2007-2008 to pay CalPERS for the City's Side Fund obligation. The Side Fund was created in 2005 when CalPERS assigned agencies with less than 100 participants to a risk sharing pool. The City elected to pre-pay its obligation from the General Fund reserves and an internal service charge is made each year to repay the reserve. INFORMATION TECHNOLOGY FUND Accounts for all informatjon and technology costs, including staffing. ENERGY EFFICIENCY This fund was established to account for the financing and construction of the Energy Efficiency Upgrade Capital Project. 161 ASSETS Current Assets: Cash and investments Prepaid items Total current assets Noncurrent Assets: Land Construction in progress Building and improvements Vehicles and equipment Less: accumulated depreciation Total non-current assets Total Assets LIABILITIES Current Liabilities: Accounts payable and accruals Due to other funds Capital lease Total current liabilities Noncurrent Liabilities: Capital lease Advances from other funds Total non-current liabilities Total Liabilities NET POSITION (DEF1Cl1) Net Investment in capital assets Restricted Unrestricted Total Net Position CITY OF DUBLIN INIBRNAL SERVICE FUNDS COMBINING STAIBMENTS OF NET POSITION JUNE 30, 2016 Vehicle Building Replacement Replacement $3,068,913 $6,162,646 3,068,913 6,162,646 10,774,792 3,314,299 63,094,195 4,534,300 (2,987,674) (31,976,403) 1,546,626 45,206,883 4,615,539 51,369,529 1,546,626 45,206,883 3,068,913 6,162,646 ~4,615,539 ~51,369,529 162 Equipment Retiree Replacement Health Care $3,567,127 $212,345 104,293 3,567,127 316,638 4,563 2,171,547 (1,186,605) 989,505 4,556,632 316,638 292,781 292,781 292,781 989,505 3,567,127 23,857 ~4,556,632 ~23,857 PERS Side Fund $549,949 549,949 549,949 (549,949) ($549,949) Information Technology $1,960,497 61,120 2,021,617 2,021,617 44,587 29,928 74,515 74,515 1,947,102 $1,947,102 Energy Efficiency $82,471 82,471 121,974 121,974 204,445 429,110 429,110 4,917,242 4,917,242 5,346,352 (5,224,378) 82,471 ($5, 141.907) 163 Total $15,053,999 165,413 15,219,412 10,774,792 3,440,836 63,094,195 6,705,847 (36,150,682) 47,864,988 63,084,400 337,368 29,928 429,110 796,406 4,917,242 549,949 5,467,191 6,263,597 42,518,636 14,302,167 $56,820,803 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2016 Vehicle Building Equipment Replacement ReElacement ReElacement OPERATING REVENUES Charges for services $517,787 $288,084 $770,019 Interest Other revenue 1,701 Total Operating Revenues 519,488 288,084 770,019 OPERATING EXPENSES Supplies and services 196,392 OPEB expenses Depreciation 427,582 2,128,928 107,526 Interest and fiscal charges Total Operating Expenses 427,582 2,128,928 303,918 Operating Income (Loss) 91,906 (1,840,844) 466,101 NONOPERATING REVENUES (EXPENSES) Interest income 26,563 53,960 29,762 Gain from sale of property 10,556 114 Total Nonoperating Revenues (Expenses) 37,119 53,960 29,876 Income (Loss) Before Transfers 129,025 (1, 786,884) 495,977 Capital contributions Transfer in Transfer (out) Net transfers Change in Net Position 129,025 (1, 786,884) 495,977 BEGINNING NET POSITION (DEFICIT) 4,486,514 53,156,413 4,060,655 ENDING NET POSITION (DEFICIT) $4,615,539 $51,369,529 $4,556,632 164 Retiree HealthCare $1,347,145 489,338 1,836,483 1,838,833 1,838,833 ~2,350) (2,350) (2,350) 26,207 $23,857 PERS Information Energy Side Fund Technology Efficiency Total $368,056 $1,152,862 $550,654 $4,994,607 760 760 8,686 499,725 368,056 1,152,862 560,100 5,495,092 1,205,760 1,402,152 1,838,833 2,664,036 147,195 147,195 1,205,760 147,195 6,052,216 368,056 (52,898) 412,905 (557,124) 110,285 10,670 120,955 368,056 (52,898) 412,905 (436,169) 113,288 113,288 2,000,000 2,000,000 {8,6862 {8,6862 2,000,000 104,602 2,104,602 368,056 1,947,102 517,507 1,668,433 (918,0052 {5,659,4142 55,152,370 ($549,949) $1,947,102 ($5,141,9072 $56,820,803 165 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2016 Vehicle Building Replacement Replacement CASH FLOWS FROM OPERATING ACTIVITIES Receipts from other funds $517,787 $327,587 Payments to suppliers and service providers (31,036) (27,976) Interest Other revenues I 701 Cash Flows from (used for) Operating Activities 488,452 299,611 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payments from other funds Payments to other funds Cash Flows (used for) Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (174,711) Interest paid on capital lease Capital lease repayment Sales of capital assets 10,556 Cash Flows from Capital and Related Financing Activities {164,1552 CASH FLOWS FROM INVESTING ACTIVITIES Interest received 26563 53 960 Cash Flows from Investing Activities 26 563 53 960 Net Cash Flows 3502860 353 572 Cash and investments at beginning of year 227182053 528092074 Cash and investments at end of year $3,068,913 $6,1622646 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) $91,906 ($1,840,844) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 427,582 2,128,928 Interest and fiscal charges Change in assets and liabilities: Accounts receivable Prepaid expenses 39,503 Accounts payable and accruals {3120362 {2729762 Cash Flows from Operating Activities $488,452 $299,611 NON-CASH TRANSACTIONS Capital Contributions 166 Equipment Retiree Replacement HealthCare $770,081 $1,514,610 (196,595) (1,930, 140) 489 338 573,486 73 808 13 387 13,387 29,762 29,762 616,635 73,808 229502492 138,537 $3,567,127 $212,345 $466,101 ($2,350) 107,526 62 167,465 (104,293) {2032 12 986 $573,486 $73,808 PERS Information Side Fund Technology $368,056 $1,152,862 (1,222,293) 368 056 (691431) 2,029,928 (3681056) (368,056) 21029,928 1,960,497 $1,960,497 $368,056 ($52,898) (61,120) 44587 $368,056 ($69,431) Energy Efficiency $550,654 760 8 686 560 100 (81686) (8z686) (8,686) (147,195) (403,459) (559,340) {7,926) 90,397 $82,471 $412,905 147,195 $560,100 $113,288 Total $5,201,637 (3,408,040) 760 499 725 2,2941082 2,029,928 (3761742) 1,653,186 (183,396) (147,195) (403,459) 23,943 (7101107) 110,285 110 285 3 347 446 11 27061553 $152053,999 ($557,124) 2,664,036 147,195 167,527 (125,910) (1 1642) $2,294,082 $113,288 167 This Page Left Intentionally Blank AGENCY FUNDS Agency Funds are used to account for assets held by the City in a fiduciary capacity for individuals, governmental entities and others. These funds carry out the specifications of trust indentures, ordinance or other regulations. DUBLIN BOULEY ARD EXTENSION ASSESSMENT DISTRICT To account for the special assessment established to fund the improvements to Dublin Boulevard. ASSOCIATED COMMUNITY ACTION PROGRAM This fund was established for the City to act as the fiscal agent to collect and account for the contributions received from twelve cities in Alameda County and to coordinate administrative service for the closing of the ACAP, a Joint Powers Agency, in social services related programs serving Alameda County communities. GEOLOGIC HAZARD ABATEMENT DISTRICTS Two districts were formed under provisions in the California Public Resource Code, which establishes in section 25670 that a District is a political subdivision of the State and is not an agency or instrumentality of a local agency. The City acts as a trustee of the funds collected and may contractually provide or arrange for services paid for by the District. Fiscal Year 2008-2009 was the first year that tax roll assessments were levied by the Districts. Fallon Village Geologic Hazard Abatement District This assessment district was established in 2007, in accordance with a condition of approval for the Fallon Village development project. The District was formed to provide a mechanism for ongoing maintenance of open space areas within the development. The boundary of this assessment district encompasses approximately 175 acres ofland, located generally east of Fallon Road. Schaefer Ranch Geologic Hazardous Abatement District This assessment district was established in 2006, in accordance with a condition of approval for the Fallon Village development project. The District was formed to provide a mechanism for ongoing maintenance of open space areas within the development. The boundary of this assessment district encompasses approximately 500 acres of land, located at the westerly boundary of the City limits north of Interstate 580, and south of the unincorporated area of Alameda County. Fallon Village Annex/Jordan Ranch Geologic Hazard Abatement District This assessment district was established to account for the maintenance of open space areas within the Jordan Ranch development. On May 3, 2011 the City Council approved Resolution No. 52-11 which modified the boundaries of the Fallon Village District. The Jordan Ranch property was annexed into the Fallon Village Geologic Hazard Abatement District subject to a separate Engineers report. Fallon Crossing (North Tassajara) Geologic Hazard Abatement District This assessment district was established to account for the maintenance of open space areas in accordance with a condition of approval for the Fallon Crossings development project. The boundary of the District encompasses 68 acres of land located on the northeast side of Tassajara Road, about 2 '14 miles north of Interstate Highway 580, Tassajara Road and Moller Creek, a tributary of Tassajara Creek, border the western and northeastern limits of the site. 169 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2016 Balance Balance June 30, 2015 Additions Deductions June 30, 2016 Dublin Boulevard Extension Assessment District Assets Cash and investments $8,503 $3,163 $3,076 $8,590 $8,503 $3,163 $3,076 $8,590 Liabilities Due to bondholders $8,503 $3,163 $3,076 $8,590 $8,503 $3,163 $3,076 $8,590 Associated Communi!l Action Pro~am Assets Cash and investments $64,891 $330 $25,785 $39,436 $64,891 $330 $25,785 $39,436 Liabilities Accounts payable $948 $330 $1,278 Due to trustee 63,943 24,507 $39,436 $64,891 $330 $25,785 $39,436 Fallon Village Geolo~c Hazardous Abatement District Assets Cash and investments $1,787,287 $855,600 $96,112 $2,546,775 Accounts receivable 4,212 3,995 4,212 3,995 $1,791,499 $859,595 $100,324 $2,550,770 Liabilities Accounts Payable $75 $4,625 $4,700 Due to trustee 1,791,424 854,970 $100,324 2,546,070 $1,791,499 $859,595 $100,324 $2,550,770 170 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2016 (Continued) Balance Balance June 30, 2015 Additions Deductions June 30, 2016 Schaefer Ranch Geologic Hazardous Abatement District Assets Cash and investments $1,849,042 $685,758 $76,105 $2,458,695 Accounts receivable 1,961 5,057 1,961 5,057 $1,851,003 $690,815 $78,066 $2,463,752 Liabilities Accounts Payable $1,330 $1,330 Due to trustee $1,851,003 689,485 $78,066 2,462,422 $1,851,003 $690,815 $78,066 $2,463,752 Fallon Village Annex/Jordan Ranch Geologic Hazardous Abatement District Assets Due from trustee $433 $5,009 $2,721 $2,721 $433 $5,009 $2,721 $2,721 Liabilities Due to City $433 $2,288 $2,721 Due to trustee 2,721 $2,721 $433 $5,009 $2,721 2,721 Fallon Crossing (North Tassajara) Geologic Hazardous Abatement District Assets. Cash and investments $141,368 $120,179 $23,829 $237,718 Accounts receivable 2,179 1,855 2,179 1,855 $143,547 $122,034 $26,008 $239,573 Liabilities Accounts Payable $11,943 $11,611 $332 Due to trustee $143,547 110,091 14,397 239,241 $143,547 $122,034 $14,397 $239,573 171 Totals -All Agency Funds Assets Cash and investments Accounts receivable Due from trustee Liabilities Accounts payable Due to City Due to trustee Due to bondholders CITY OF DUBLIN AGENCY FUNDS STAIBMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2016{Continued) Balance June 30, 2015 Additions Deductions $3,851,091 $1,665,030 $224,907 8,352 10,907 8,352 433 5,009 2,721 $3,859,876 $1,680,946 $235,980 $1,023 $18,228 $12,889 433 5,009 3,849,917 1,654,546 220,015 8,503 3,163 3,076 $3,859,876 $1,680,946 $235,980 172 Balance June 30, 2016 $5,291,214 10,907 2,721 $5,304,842 $6,362 5,442 5,284,448 8,590 $5,304,842 STATISTICAL SECTION This part of the City's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit. Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well being have changed over time: 1. Net Position by Component 2. Changes in Net Position 3. Fund Balances of Governmental Funds 4. Changes in Fund Balance of Governmental Funds Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax: 1. Assessed Value and Estimated Actuarial of Taxable Property 2. Direct and Overlapping Property Tax Rates 3. Principal Property Taxpayers 4. Property Tax Levies and Collections Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future: 1. Ratio of Outstanding Debt by Type 2. Direct and Overlapping Debt 3. Legal Debt Margin Information Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place: 1. Demographic and Economic Statistics 2. Property Value, Construction and Bank Deposits 3. Principal Employers Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs: 1. Full-Time Equivalent City and Contract Government Employees by Function 2. Operating Indicators by Function 3. Capital Asset Statistics by Function 4. Top 25 Sales Tax Producers 5. Miscellaneous Statistical Data Sources Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. 173 City of Dublin Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) Primary government: Governmental activities: Net investment in capital assets Restricted Unrestricted Total primary government 2007 2008 $ 399,631,407 $ 411,619,671 45,647,928 48,572,719 61,789,687 68,456,077 $ 507,069,022 $ 528,648,467 Data Source: City of Dublin Administrative Services Department 2009 2010 $ 423,474,384 $ 436,857,107 36,906,687 25,004,384 66,597,197 70,203,471 $ 526,978,268 $ 532,064,962 Note: The Oty adjusted certain beginning balances during fiscal year 2014-2015. Financial data shown for proceerung years were not adjusted for the presentation. 174 2011 $ 433,779,703 21,453,867 76,303,907 $ 531,537,477 2012 2013 2014 2015 2016 $ 433,548,888 $ 432,722,323 $ 445,529,366 $ 444,832,546 $ 460,963,292 36,714,724 52,548,095 60,808,540 74,738,217 97,592,438 86,063,259 99,084,771 97,918,858 107,176,361 111,725,077 $ 556,326,871 $ 584,355,189 $ 604,256,764 $ 626,747,124 $ 670,280,807 175 City of Dublin Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Expenses: Governmental activities: General government Police Fire Public works Parks and community service Economic development Public safety Highways and streets Health and welfare Culture and leisure services Community development Total governmental activities Program revenues: Governmental activities: Charges for services: General government Police Fire Public works Parks and community service Economic development Public safety Highways and streets Health and welfare Culture and leisure services Community development Operating grants and contributions Capital grants and contributions Total governmental activities Net revenues (expenses): General revenues and other changes in net assets: Governmental activities: Taxes: Property taxes Special assessment taxes Sales tax Other taxes Motor vehicle tax, unrestricted Investment income, unrestricted Other general revenues Total governmental activities Changes in net assets 2007 $ 8,866,758 22,306,240 17,182,208 1,816,800 14,080,040 11,157,417 75,409,463 208,247 2,284,955 745,727 2,483,619 1,508,752 9,432,854 2,813,079 25,973,730 45,450,963 $ (29,958,500) 20,266,216 14,025,869 3,508,587 261,276 4,053,187 1,109,734 43,224,869 $ 13,266,369 Data Source: City of Dublin Administrative Services Department 2008 2009 2010 2011 $ 7,790,286 $ 8,721,545 $ 8,396,199 $ 9,322,322 23,282,634 23,880,635 23,797,696 24,413,496 20,196,496 20,368,655 15,969,371 10,142,946 1,689,353 1,869,428 3,615,077 12,749,042 12,200,759 11,563,136 10,757,355 9,304,429 8,276,993 7,175,272 5,112,469 5,482,552 73,436,521 73,578,671 67,648,167 71,414,787 216,334 215,711 219,386 225,109 1,301,328 1,545,935 1,600,890 1,821,404 13,794 598,542 8,078,369 450,937 3,301,877 3,050,719 2,798,092 2,874,952 1,722,627 1,719,501 2,101,867 2,214,407 5,599,417 4,720,221 3,775,102 5,546,417 2,747,497 2,245,945 2,229,043 2,220,247 37,393,930 14,599,068 12,254,443 15,745,614 52,296,804 28,695,642 33,057,192 31,099,087 $ (21,139,717) $ (44,883,029) $ (34,590,975) $ (40,315,700) 22,229,039 23,311,587 22,287,783 21,918,484 14,225,661 12,832,417 12,183,267 12,969,119 3,504,501 2,180,846 3,201,219 3,798,515 197,245 160,242 141,221 250,974 4,399,908 4,266,601 758,016 536,047 1,202,074 461,137 1,106,163 1,079,419 45,758,428 43,212,830 39,677,669 40,552,558 $ 24,618,711 $ (1,670,199) $ 5,086,694 $ 236,858 176 2012 2013 2014 2015 2016 $ 10,116,219 $ 10,265,476 $ 17,665,221 $ 10,774,480 $ 19,280,680 15,325,113 18,316,420 12,198,769 14,725,476 15,336,225 13,883,008 12,149,716 14,625,459 679,313 555,564 26,781,283 26,846,045 27,770,111 6,709,217 7,241,263 4,305,390 146,204 3,753,875 4,057,796 9,804,128 10,772,868 9,018,161 6,089,415 9,979,877 9,169,788 5,713,196 11,410,946 59,646,466 68,859,404 71,986,467 72,176,812 92,797,553 140,418 142,353 153,544 5,777,971 5,209,378 399,802 362,054 1,746,581 1,633,056 2,978,235 2,698,767 3,009,383 2,931,553 1,061,352 2,482,060 2,164,085 738,662 470,063 484,801 3,063,223 3,422,782 3,631,344 1,909,812 2,463,146 2,753,911 9,051,970 9,540,241 10,393,367 7,657,467 13,217,027 1,008,318 1,135,050 1,674,815 955,677 1,629,137 23,668,070 28,689,753 20,914,994 21,931,981 38,433,119 40,641,825 48,345,448 42,170,861 44,457,097 66,114,091 $ (19,004,641) $ (20,513,956) $ (29,815,606) $ (27,719,715) $ (26,683,462) 22,246,360 23,590,102 25,286,308 29,437,951 33,598,601 1,264,204 1,359,212 14,996,932 15,359,340 17,833,314 19,211,823 22,070,647 4,295,675 5,054,257 5,427,627 6,159,654 6,606,016 865,719 (399,590) 853,147 550,272 2,937,999 1,389,349 4,938,165 316,785 3,163,387 3,644,670 43,794,035 48,542,274 49,717,181 59,787,291 70,217,145 $ 24,789,394 $ 28,028,318 $ 19,901,575 $ 32,067,576 $ 43,533,683 177 City of Dublin Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) General Fund Reserved Unreserved, designated for: Advance to TVTD W. BART station contribution Affordable Housing Authorized expenditures Capital improvements Cash Flow & Operation Stability Catastrophic Loss & Business Recovery Capital Improvements Projects Carryover Compensated Absences Economic Uncertainty Emergency Communication System Fire Retiree Medical Innovation & New Opportunities Investment Market Value Adjustment Operation Carryover Service Continuity Obligation Unreserved, undesignated Non-Spendable Restricted Committed Assigned Unassigned $ 2007 2008 5,741,942 $ 5,623,014· 1,000,000 1,000,000 44,328,550 42,181,292 4,258,539 8,884,334 744,041 2,970,722 2,970,722. 500,000 1,508,906 2009 2010 2011 $ 5,343,610 $ 5,922,446 $ 1,000,000 1,000,000 1,000,000 34,474,209 3,960 11,049,175 7,394,088 8,860,000 8,420,000 203,507 791,582 802,311 5,868,847 5,868,847 210,000 1,000,000 750,000 4,500,000 13,000,000 2,334,061 1,516,569 301,874 171,100 1,350,000 4,096,768 27,893,755 17,407,053 14,745,685 Total general fund $ 58,299,753 $ 63,412,309 $ 62,123,358 $ 61,012,828 $ 64,143,261 All Other Governmental Funds Reserved Unreserved, designated, reported in: Special revenue funds Capital projects funds Undesignated Non-Spendable Restricted Committed Assigned Unassigned $ 43,485,046 $ 50,789,419 (1,791,762) (1,837,021) $ 34,570,414 $ 25,004,384 $ (1,841,336) (3,168,929) 21,453,867 (1,735,988) Total all other governmental funds $ 41,693,284 $ 48,952,398 $ 32,729,078 $ 21,835,455 $ 19,717,879 Total All Governmental Funds $ 99,993,037 $112,364,707 $ 94,852,436 $ 82,848,283 $ 83,861,140 Data Source: City of Dublin Administrative Services Department Note: All Other Governmental Funds includes the City's Major and Non Major Capital Project and Special Revenue Funds, excluding the General Fund. In FY2011 the City implemented GASB No. 54 -the new Fund Balance Reporting and Governmental Fund Type Definitions. This Statement establishes the definitions for new categories for reporting fund balance and revises the definitions for governmental fund types. As a result five new components of fund balance were established: Non-Spendable, Restricted, Committed, Assigned, and Unassigned. Prior to FY2011, the Fund Balances were reported as Reserved and Unreserved Fund Balances. Post FY2010, the Reserved Fund Balances were further categorized as Non-Spendable, Restricted and Committed and the Unreserved Fund Balances were classified as Assigned and Unassigned. 178 2012 2013 2014 2015 2016 $ $ $ $ $ 3,433,886 2,836,130 2,465,678 1,475,691 729,883 500,000 500,000 500,000 579,000 24,176,650 36,020,171 34,124,267 38,531,179 38,928,755 22,080,677 23,912,896 29,259,333 35,875,264 39,078,695 15,072,535 14,047,932 13,228,484 21,324,360 29,867,693 $ 64,763,748 $ 77,317,129 $ 79,577,762 $ 97,706,494 $ 109,184,026 $ $ $ $ $ 38,073,638 53,646,702 61,710,448 75,646,848 84,453,929 (1,358,914) $ 36,714,724 $ 101,478,472 (1,098,607) $ 52,548,095 $ 129,865,224 (923,409) $ 60,787,039 $ 140,364,801 21,743 (930,131) $ 74,738,460 $ 172,444,954 13,138,509 $ 97,592,438 $ 206,776,464 179 City of Dublin Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2007 2008 2009 2010 2011 Revenues: Property taxes $20,266,213 $22,229,039 $23,306,302 $22,286,209 $22,067,074 Taxes other than property 17,967,499 18,188,593 15,436,466 15,783,099 17,210,947 Intergovernmental 2,845,936 3,431,314 2,393,153 7,951,237 3,946,271 Licenses and permits 2,572,069 1,784,644 1,623,029 2,260,364 2,752,748 Charges for services 9,476,984 8,101,935 7,759,628 7,100,403 8,743,460 Investment income 5,840,949 6,101,736 5,597,303 1,475,308 952,819 Use of property 203,240 335,151 989,081 1,491,413 978,642 Fines and forfeitures 342,098 360,496 318,737 312,778 303,595 Developer fees 8,618,271 18,226,041 1,875,841 4,387,339 9,390,001 Special assessments 716,144 797,520 826,717 868,348 904,739 Other revenues 960,534 2,497,249 3,312,774 1,778,477 4,135,091 Total revenues 69,809,937 82,053,718 63,439,031 65,694,975 71,385,387 Expenditures Current: General government 5,619,088 5,590,247 6,047,115 8,957,744 7,935,407 Police Fire Public works Parks and community service Economic development Public safety 22,148,312 23,629,954 23,951,223 24,241,160 24,546,456 Highways and streets 2,726,599 2,719,532 3,168,513 2,985,311 3,030,540 Health and welfare 1,626,197 1,706,918 1,888,631 3,653,297 12,775,536 Culture and leisure services 6,874,596 7,207,896 7,621,663 7,267,805 7,223,808 Community development 8,173,711 8,335,105 7,364,651 5,300,211 5,609,603 Capital outlay: General 377,026 411,293 4,221,956 742,754 599,965 Health and welfare 75,526 Community improvements 95,672 218,058 68,236 82,333 328,418 Culture and leisure Parks 10,711,807 8,820,229 9,409,692 10,706,350 3,809,723 Streets 5,532,110 11,042,816 13,742,919 13,762,167 4,513,072 Debt service: Principal Total expenditures 63,960,644 69,682,048 77,484,599 77,699,132 70,372,528 Excess (deficiency ofrevenues over (under) expenditures 5,849,293 12,371,670 (14,045,568) (12,004,157) 1,012,859 Other financing sources (uses): Transfers in 90,399 77,528 26,232 25,777,410 9,163,360 Transfers out (90,399) (77,528) (26,232) (25,777,410) (9,163,360) Total other financing sources (uses) Net change in fund balances $ 5,849,293 $ 12,371,670 $ (14,045,568) $ (12,004,157) $ 1,012,859 Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.0% 0.0% 0.0% Data Source: City of Dublin Administrative Services Department 180 2012 2013 2014 2015 2016 $22,398,847 $23,742,336 $25,448,254 $29,437,951 $33,598,601 19,761,015 20,915,025 23,769,133 25,371,476 28,676,662 3,962,572 4,534,748 2,574,159 3,245,822 3,303,521 4,501,736 5,224,932 5,944,985 6,025,685 6,139,420 10,331,501 11,979,079 12,326,848 13,737,934 13,846,381 1,068,138 (185,467) 1,101,634 1,071,936 3,689,940 659,857 580,507 1,591,784 2,352,810 6,751,864 284,993 326,027 323,601 320,629 290,871 15,965,329 19,545,692 15,757,068 18,578,172 37,240,622 944,455 980,775 1,025,239 1,264,201 1,359,214 4,509,762 9,134,201 2,712,998 3,473,012 1,323,855 84,388,205 96,777,855 92,575,703 104,879,628 136,220,951 7,001,850 7,600,102 8,411,507 10,663,140 20,110,958 15,697,432 17,886,990 11,930,245 12,265,614 8,481,686 8,616,323 9,731,003 10,791,185 808,272 604,777 26,298,962 26,643,549 27,381,497 2,768,068 3,096,498 3,042,476 4,422,468 4,149,599 4,379,634 8,248,229 8,919,816 9,349,729 7,362,732 8,586,129 9,102,734 6,059,180 11,348,674 6,641,674 8,866,096 13,316,472 1,241,494 666,478 213,777 81,234 21,497 68,190 117,104 996,669 2,324,586 9,451,657 4,742,328 23,469,847 2,959,555 4,946,527 2,403,926 3,568,142 3,652,808 66,913,984 75,214,136 86,861,129 72,991,112 109,530,758 17,474,221 21,563;719 5,714,574 31,888,516 26,690,193 10,898,009 16,338,838 25,192,268 9,625,456 27,912,037 (10,754,898) (9,515,805) (20,385,523) (9,455,561) (29,903,351) 143,111 6,823,033 4,806,745 169,895 (1,991,314) $ 17,617,332 $ 28,386,752 $ 10,521,319 $ 32,058,411 $ 24,698,879 0.0% 0.0% 0.0% 0.0% 0.0% 181 Fiscal Year Ended Residential June30 Prol!erty 2007 $ 5,345,937,692 $ 2008 5,870,526,565 2009 6,203,330,781 2010 5,868,488,395 2011 5,967 ,980,343 2012 6, 114,540,497 2013 6,378,930,469 2014 7,135,260,308 2015 8,431,051, 125 2016 9,662,162,719 CITY OF DUBLIN. CALIFORNIA Assessed Value of Taxable Property Last Ten Fiscal Years Real Prol!erty Commercial Industrial Unsecured/ Prol!er!I Prol!er!I Other Prol!er!I 1,068,813,294 $ 161,909,866 $ 873,737,282 $ 1,112,837,055 171,673,012 1,072,734,321 1,241,301,664 198,082,746 1,032,449,487 1,326,481,267 212,939,326 983,426,713 1,285,382,821 209,573,141 843,686,092 1,263,207,583 246,434,460 859,683,607 1,330,147,064 245,481,519 948,525,966 1,336,760,537 246,334,563 1,035,990,618 1,391,578,857 274,410,187 1,138,571,747 1,481,865,501 277,588,684 1,261,568,728 Less: Exeml!tions (28,084,978) -78,188,899 -36,478,516 -49,873,361 -115,875,189 -120,225,737 -112,296,063 -172,869,596 ~ 185,639,690 -152,705,687 Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls, 2005/06 through 2014/15 Note: Actual property value data not available in California. Net Taxable Assessed Value $ 7,422,313,156 8,149,582,054 8,638,686,162 8,341,462,340 8,190,747,208 8,363,640,410 8, 790, 788,955 9,581,476,430 11,049,972,226 12,530,479,945 ( 1) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1 % and allocates a portion of that amount by an annual calculation, to all the taxing entities within a tax rate area. City Wide Avg. Total Direct Tax Rate 0.2387% 0.2385% 0.2385% 0.2386% 0.2386% 0.2386% 0.2380% 0.2373% 0.2367% 0.2365% (2) The City-wide Direct Tax Rate is an average, the actual tax rate for each property varies according to its tax rate area. This average tax rate is net of State Shifts of local property tax revenue to Education and net of Admin fees. 182 This Page Left Intentionally Blank Fiscal Year 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Source: CITY OF DUBLIN. CALIFORNIA Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate per $100 of assessed value) City Direct Rates Overla}!l!ing Rates (1} Castro Valley Chabot-Las Positas Basic Total Bay Area Unified Community Levy Direct Ra}!id Transit School Bonds College Boards l.00000 0.23870 0.00500 0.08110 0.01590 l.00000 0.23850 0.00760 0.09720 0.01640 l.00000 0.23850 0.00900 0.09690 0.01830 l.00000 0.23860 0.00570 0.10230 0.01950 l.00000 0.23860 0.00310 0.10040 0.02110 l.00000 0.23860 0.00410 0.09890 0.02140 l.00000 0.23796 0.00430 0.09240 0.02190 l.00000 0.23730 0.00750 0.08510 0.02140 l.00000 0.00237 0.00450 0.08520 0.02170 l.00000 0.00237 0.00260 0.00000 0.01980 Dublin Unified Bonds lA& B 0.08850 0.08500 0.07320 0.08160 0.10110 0.09700 0.09930 0.11470 0.10770 0.07670 HDL Coren & Cone and Alameda County Assessor Combined T!QC Rolls, 2006/07 through 2015/16 (1) Overlapping rates are those oflocal and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. These are voter approved levies in addition to the 1 % State levy. (2) The City's share of the 1 % Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. 184 East Bay Flood Zone 7 Livermore Valley Total City's Share Regional State Water Joint Unified Direct & Overlapping of 1 % Levy per Park Bonds School Board Tax Rate Proposition 13 0.00850 0.01510 0.06920 1.28330 0.2818 0.00800 0.01500 0.06260 1.29180 0.2818 0.01000 0.01690 0.06160 1.28590 0.2818 0.01080 0.02030 0.06740 1.30760 0.2818 0.00840 0.02500 0.06350 1.32260 0.2818 0.00710 0.03070 0.06270 1.32190 0.2818 0.00510 0.02280 0.06070 1.30650 0.2818 0.00780 0.02570 0.05960 1.32180 0.2818 0.00850 0.02500 0.04970 1.30230 0.2817 0.00670 0.03430 0.00000 1.14010 0.2819 185 Tax~al'.er Development Solutions WR LLC $ Trust NOIP Dublin LP Ross Dress for Less, Inc. Avalon Dublin Station II LP 4800 Tassajara Road Apts Invest LLC Lennar Homes California Inc Wei and Liu 2011 Trust Dublin Corporate Ctr Acquisition LLC Essex Dublin Owner LP Bere Island Properties I LLC Et. Al. Shops at Waterford LLC Start HQ 2003 Bit Holdings Fifty Six Inc Chang Lin, Et. Al City of Dublin Bere Island Properties I LLC Et. Al. Bit Investment Eleven Limited Partnership Capital Pacific Security Trust Cisco Systems Inc. Park Sierra LLC Subtotal $ CITY OF DUBLIN, CALIFORNIA Principal Property Tax Payers Current year and Nine Years Ago 2015-16 Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value 181,480,000 1 1.47% 155,851,118 2 1.26% 128,263,238 3 1.04% 122,189,814 4 0.99% 115,981,613 5 0.94% 113,268,710 6 0.92% 109,586,197 7 0.89% 102,586,204 8 0.83% 102,249,799 9 0.83% 89,380,669 10 0.72% $ 1,220,837,362 9.87% $ Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls 186 2006-07 Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value 123,249,776 1 1.67% 109,632,683 2 1.49% 107,100,000 3 1.45% 105,363,401 4 1.43% 80,209,477 5 1.09% 79,014,656 6 1.07% 67,261,858 7 0.91% 65,651,789 8 0.89% 49,639,663 9 0.67% 46,499,771 10 0.63% 833,623,074 11.30% CITY OF DUBLIN, CALIFORNIA Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Current Percent Delinquent Total Ended Total Tax of Levy Tax Tax Percent June30 Tax Levy Collections Collected Collections Collections of Levy 2007 $ 20,913,852 $ 20,750,015 99.22% $ 111,324 $ 20,861,339 99.75% 2008 22,963,077 22,446,386 97.75% 412,481 22,858,867 99.55% 2009 24,341,226 23,229,916 95.43% 778,896 24,008,812 98.63% 2010 23,503,738 22,162,010 94.29% 804,530 22,966,540 97.71% 2011 23,079,068 22,159,873 96.02% 533,248 22,693,121 98.33% 2012 23,566,230 22,761,802 96.59% 432,891 23,194,693 98.42% 2013 24,769,806 23,997,036 96.88% 527,988 24,525,024 99.01% 2014 27,001,559 26,200,578 97.03% 432,070 26,632,648 98.63% 2015 31,129,982 30,434,412 97.77% 412,643 30,847,054 99.09% 2016 35,325,929 34,734,843 98.33% 357,472 35,092,315 99.34% Source: Alameda County Assessor Office 187 Fiscal Year Ended June30 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sources: CITY OF DUBLIN, CALIFORNIA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Notes, Capital Lease and Total Mortgage Governmental Payable Activities $6,755,824 6,128,806 5,749,811 5,346,352 $6,755,824 6,128,806 5,749,811 5,346,352 Total Primary Governments $6,755,827 6,128,806 5,749,811 5,346,352 Percentage of Personal income NIA NIA NIA Debt Per Capita $156 (1) United States Census Bureau, most recent data available November 2014. Personal Income at June 30, 2014 not available. (2) City of Dublin Administrative Services Department. 188 CITY OF DUBLIN, CALIFORNIA Direct and Overlapping Debt June 30, 2016 Total Property Tax Assessed Value of Taxable Property OVERLAPPING TAX AND ASSESSMENT DEBT: Bay Area Rapid Transit District Chabot-Las Positas Community College District Dublin Joint Unified School District East Bay Regional Park District City of Dublin 1915 Act Bonds California Statewide Communities Development Authority 1915 Act Bonds TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT DIRECT AND OVERLAPPING OTHER DEBT Alameda County General Fund Obligations Alameda County Pension Obligations Alameda-Contra Costa Transit District Certificates of Participation TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT COMBINED TOTAL DEBT <2> RATIOS TO ASSESSED VALUATION: Direct Debt.. ................................................................... 0.00% Total Direct and Overlapping Tax and Assessment Debt. ........ 2.80% Combined Total Debt ....................................................... .3.19% Source: California Municipal Statistics, Inc. Notes: Outstanding Debt 6/30/2016 $ 527,065,000 420,427,539 284,743,405 149,945,000 968,300 893,097,000 47,111,094 21,285,000 Percentage Applicable to Estimated Share of City ofDublin (!) Overlapping Debt 2.0920% $ 11,026,200 12.122% 50,964,226 99.977% 284,677,914 3.135% 4,700,776 100.00% 100.00% 968,300 $ 352,337,416 5.303% 47,360,934 5.303% 2,498,301 0.181% 38,526 $ 49,897,761 $ 402,235,177 $ 402,235,177 <1> The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. <2> Excludes tax and revenue anticipation notes, enterprise revenue and mortgage revenue and non-bonded capital lease obligations. 189 CITY OF DUBLIN, CALIFORNIA Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2006-07 2007-08 2008-09 2009-10 Debt limit $ 279,389,930 $ 308,541,411 $ 325,318,675 $ 314,675,089 Total net debt applicable to limit Legal debt margin $ 279,389,930 $ 308,541,411 $ 325,318,675 $ 314,675,089 Total net debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% (1) Source: City of Dublin Administrative Services Department (2) The legal debt margin for the City of Dublin, California, is calculated using a debt limit of 15 percent of the assessed value of property within the City limits. (Gov Code of State of California) (3) The government code provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel in now assessed at 100% of market value (as of the most recent change in ownership parcel) in ownership for that parcel.) The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. 190 0.0% Legal Debt Margin Calculation for Fiscal Year 2015-16 Assessed value (net) -June 30, 2016 (1) $ 12,530,479,945 Debt limit: 15% of assessed value 1,879,571,992 Less total bonded debt, general obligation Legal debt margin (2) $ 1,879,571,992 Conversion Percentage for Calculation of Debt Limit (3) 25% $ 469,892,998 Fiscal Year 2010-11 2011-2012 2012-13 2013-14 2014-15 2015-16 $ 311,498,340 $ 318,144,981 $ 333,865,688 $ 361,622,926 $ 416,774,836 $ 469,892,998 $ 311,498,340 $ 318,144,981 $ 333,865,688 $ 361,622,926 $ 416,774,836 $ 469,892,998 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 191 Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Sources: City Population (1) 41,848 43,563 46,869 47,953 45,672 46,785 49,890 53,462 54,695 57,349 CITY OF DUBLIN. CALIFORNIA Demographic And Economic Statistics Last Ten Calendar Years (Dollars in Thousands) Per Capita Personal Personal Unemployment Income, in thousands (1) Income (1) Rate (2) $ 1,719,669 $ 41,093 2.6% 1,904,687 43,723 2.8% 2,077,720 44,330 3.7% 2,034,463 42,426 6.5% 1,700,094 34,823 6.9% 1,677,944 35,865 6.3% 1,819,688 36,474 4.2% 2,321,908 43,431 3.5% 2,333,289 42,660 3.6% 2,562,296 44,679 2.9% (1) California Department of Finance, most recent data available January 2016 (2) California Employment Development Department, most recent data available June 2016 192 Rankin Size of California Cities (3) 190 184 180 179 179 182 175 181 185 156 CITY OF DUBLIN, CALIFORNIA Property Value, Construction, and Bank Deposits Last Ten Fiscal Years Total Number of Commercial Residential Fiscal Year Ended Building Permits Construction Value Construction Value 30-Jun Issued {12 (1) (1) Bank DeEosits {22 2007 1214 $ 56,832,941 $ 178,094,884 $ 2008 1333 18,256,381 59,647,886 2009 1101 23,968,805 63,242,418 2010 1345 17,407,699 124,930,163 2011 1471 40,005,124 165,324,045 2012 2110 28,775,536 344,927,791 2013 2425 21,139,964 386,984,935 2014 2443 57,812,261 322,511,777 2015 2068 60,793,275 295,988,465 2016 2812 102, 148, 173 323,747,409 Source: 1) City of Dublin Community Development Department 2) Findley Reports, Inc Bank Deposits represents the amount of cash deposits held by financial institutions within the city annually, Jan tbru Dec. 193 985,835,000 981,685,000 1,094,869,000 1,051,570,000 1,281,183,000 NIA NIA NIA NIA NIA CITY OF DUBLIN. CALIFORNIA Em.elo:ler United States Government & Federal Correction Institute Dublin Unified School District Principal Employers Current Year and Prior Year (Dollars in thousands) 2015 Estimated Number of Em.elo:lees Rank 2,100 1 1,117 3 SAP (Formerly: Sybase Corporation) 604 4 Ross Stores Headquarters 1,200 2 Zeiss Meditec 535 5 Target Stores 388 7 Callidus Cloud 350 8 County of Alameda 465 6 De Silva Gates Construction 300 9 Micro Dental Laboratories NIA NIA Safeway 284 10 City of Dublin NIA NIA Whole Foods NIA NIA Subtotal 7,343 Total City Day Population Source: City of Dublin Economic Development Department 194 2016 Estimated Number of Em.eloyees Rank -- 2,100 1 915 2 700 3 500 4 500 4 350 5 350 5 325 6 300 7 300 7 280 8 237 9 233 10 7,090 This Page Left Intentionally Blank CITY OF DUBLIN CALIFORNIA Full-Time Equivalent City and Contract Government Employees by Function Last Ten Fiscal Years Adopted for Fiscal Year Ended June 30 2007 2008 2009 2010 2011 Function General government City Manager 6.25 6.50 6.50 6.00 6.00 Administrative Services 11.50 12.00 12.00 11.50 11.50 Central Services & Building Management 3.75 3.51 3.52 3.18 3.32 Public Safety Police 59.oo-61.00 61.00 61.00 59.00 Fire 40.25 40.75 40.78 39.77 39.74 Disaster Preparedness 0.33 0.50 0.50 0.50 0.46 Transportation Public Works 7.50 8.50 8.50 6.45 5.45 Streets Maintenance 10.57 10.73 9.93 9.18 9.85 Health and welfare Environmental 2.50 2.50 Housing 1.75 1.75 2.90 3.20 3.00 Waste Management 0.33 0.33 1.33 0.33 0.33 Culture and leisure services Parks Community Services 14.00 15.50 16.00 16.60 15.60 Park Maintenance 9.53 9.55 9.92 9.65 8.94 Parks/ Facilities Management 2.00 2.00 2.00 2.00 2.00 Library Services 0.48 0.45 0.43 0.39 0.42 Heritage & Cultural Arts 2.32 2.53 2.49 2.47 3.59 Community Development Planning & Building 33.90 32.50 27.10 19.05 19.25 Economic Development 1.00 1.00 1.50 1.50 1.50 Engineering 13.35 13.35 12.35 9.00 8.00 Total 217.81 222.45 218.75 204.27 200.45 Source: City of Dublin Administrative Services Department Note: Include Full Time, Part Time, Temporary, and Contract Employees 196 Adopted for Fiscal Year Ended June 30 ___ _ 2012 2013 2014 2015 2016 6.50 6.50 6.50 6.34 6.34 11.50 11.50 11.75 11.75 11.75 3.57 3.09 3.45 3.95 4.20 59.00 59.00 60.00 59.00 61.00 39.64 39.64 39.64 39.64 39.91 0.46 0.59 0.59 0.33 0.33 5.45 5.45 5.48 5.88 5.45 9.85 10.08 10.32 11.60 14.10 3.00 2.59 2.59 1.50 1.50 2.25 2.25 2.50 2.50 2.56 0.33 1.08 1.08 1.83 1.83 15.55 16.25 15.50 16.81 16.10 9.36 10.10 11.65 13.07 15.55 2.25 2.25 3.45 4.30 4.96 0.42 0.37 0.37 0.38 0.38 3.26 3.70 5.92 4.40 3.50 20.95 22.45 23.45 24.45 24.64 2.50 2.50 3.50 3.50 3.50 9.00 9.00 9.00 8.00 8.00 204.84 208.39 216.74 219.23 225.60 197 CITY OF DUBLIN CALIFORNIA Operating Indicators by Function/Program Last Ten Fiscal Years Fiscal Year Function/Program 2007 2008 2009 2010 Police: Calls for Service 41,306 41,652 38,983 38,125 Citations Issued 11,676 11,768 7,086 10,101 Arrests 1,668 2,021 1,620 1,556 Fire: Emergency calls 1,780 1,978 1,969 1,999 Inspections 4,048 2,213 1,952 3,576 Building Plan Reviews and Consultations 1,049 922 511 474 Public Works: Bike Path Maintenance (hours) 810 775 775 697 Street Sign Maintenance (number of signs) 427 135 74 325 Curb Painting (linear feet) 4,006 2,468 2,395 6,607 Replace Street Asphalt (square feet) 13,800 33,000 29,000 30,000 Street Sweeping (curb miles) 5,927 6,075 6,341 5,083 Parks and Community Services: Museum Visitors 2,140 2,225 2,040 3,530 Afterschool Recreation (participants/day) 153 180 167 176 Preschool Classes Participants 254 399 402 690 Youth Basketball League Participants 588 570 591 772 Senior Center Average Daily Attendance 180 185 190 198 Community Development: Planning Applications 55 55 64 62 Building Permits 1,910 1,333 1,101 1,345 Building Inspections 36,071 25,602 12,302 8,933 Source: City of Dublin 198 Fiscal Year 2011 2012 2013 2014 2015 2016 39,474 38,580 34,966 34,567 32,496 35,005 9,023 9,229 8,699 8,530 7,175 7,087 1,624 1,542 1,419 1,934 1,091 1,225 2,244 2,323 2,688 2,859 2,667 2,734 2,833 3,308 3,538 3,664 3,948 4,304 498 1,319 1,492 1,561 1,072 1,633 603 625 668 749 416 799 258 313 205 426 368 510 5,464 6,523 6,400 5,808 32,512 2,922 57,000 26,000 37,000 18,112 15,800 31,000 5,294 5,519 5,901 5,931 5,953 5,993 3,680 4,415 8,612 8,256 5,272 3,591 240 27 228 322 364 363 628 610 571 430 327 335 710 729 812 911 994 1,074 206 217 211 220 233 236 66 62 77 59 56 52 1,471 2,110 2,425 2,443 2,068 2,812 11,308 15,961 26,045 22,345 20,197 20,784 199 CITY OF DUBLIN, CALIFORNIA Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year ---2007 2008 2009 Function/Program Public safety: Police stations 1 1 1 Fire stations 3 3 3 Public works: Street Lights 3,972 4,193 4,479 Miles of Streets 104 93 103 Miles of curbs 217 217 218 Traffic Signals 75 79 81 City Street Trees 6,084 6,084 6,499 City Landscape (acres) 45 45 45 Parks and recreation: Number of Community Facilities 7 7 7 Number of City Parks 11 16 16 Acres of City Parks 109 122 201 Acres of Open Space 126 122 125 Source: City of Dublin *The Street Lights count for FY2011 is the same as reported in FY2010. Comparable data is not available at the time the report is prepared. 200 2010 1 3 4,526 105 222 85 7,054 57 7 16 201 125 Fiscal Year ---2011 2012 2013 2014 2015 2016 1 1 1 1 1 1 3 3 3 3 3 3 3,780 4,281 4,354 4,513 4,520 4,530 113 115 116 120 120 120 223 237 242 248 248 248 85 89 91 93 93 94 7,418 7,268 7,408 7,477 7,521 8,556 57 65 67 69 70 74 7 7 7 7 6 6 18 18 18 20 20 20 209 209 209 220 220 220 125 125 125 125 125 125 201 CITY OF DUBLIN, CALIFORNIA Business Name Dublin Toyota Top 25 Sales Tax Producers 2015-16 Business Category Motor Vehicle Dealer Dublin Buick/Cadillac/Chevrolet/GMC Graybar Electric Motor Vehicle Dealer Electrical Equipment Dublin Honda Target Stoneridge Chrysler/Jeep/Dodge Dublin Nissan Dublin Mazda Lowes Best Buy Dublin Hyundai Dublin Volkswagen Epicor Software Safeway Safeway Gas Carl Zeiss Opthalmic Systems Bed Bath & Beyond Toys R Us Shell Service Alcosta Shell HD Supply Fallon Gateway Chevron Nordstrom Rack REI Tesla Motor Vehicle Dealer Discount Department Store Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Lumber/Building Materials Electronics/ Appliances Stores Motor Vehicle Dealer Motor Vehicle Dealer Office Supplies/Furniture Grocery/Liquor Store Service Stations Medical/Biotech Home Furnishings Specialty Stores Service Stations Service Stations Lumber/Building Materials Service Stations Family Apparel Sporting Goods Motor Vehicle Dealer Source: Hinderliter, de Llamas & Associates, State Board of Equalization 202 General Date of Incorporation Form of Government CITY OF DUBLIN, CALIFORNIA Miscellaneous Statistical Data June 30, 2016 Total Population (Estimated per the California Department ofFinance, January 1, 2016) Number of Registered Voters Employees, City, and Contract (Full Time Equivalent) Area (Square Miles) Parks and Recreation Parks Acres in Parks Acres in Open Space Public Education Elementary Schools Middle Schools High School Continuation High School Education Center School Enrollment Police Protection Number of Stations Police Personnel (Full Time Equivalent) Fire Protection Number of Stations Fire Personnel (Full Time Equivalent) Community Facilities Dublin Civic Center Dublin Senior Center Dublin Swim Center Dublin Heritage Center Dublin Public Library Shannon Community Center Emerald Glen Activity Center Source: City of Dublin 203 February 1, 1982 Council/ Manager 57,349 24,963 225.60 14.91 20 220 125 7 2 1 1 1 9,958 1 61 3 39.91 1 1 1 3 1 1 6 This Page Left Intentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS FOR THE YEAR ENDED JUNE 30, 2016 This Page Left futentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS For the Year Ended June 30, 2016 Table of Contents Memorandum on Internal Control .................................................................................................... 1 Schedule of Other Matters ........................................................................................................ 3 Required Communications ................................................................................................................ 7 Significant Audit Findings ....................................................................................................... 7 Accounting Policies ............................................................................................................ 7 Unusual Transactions, Controversial or Emerging Areas ................................................ 8 Accounting Estimates ......................................................................................................... 9 Disclosures ......................................................................................................................... 9 Difficulties Encountered in Performing the Audit... .......................................................... 9 Corrected and Uncorrected Misstatements ....................................................................... 9 Disagreements with Management .................................................................................... 10 Management Representations .......................................................................................... 10 Management Consultations with Other Independent Accountants .............................. 10 Other Audit Findings and Issues ..................................................................................... 10 Other Information Accompanying the Financial Statements .............................................. 10 This Page Left Intentionally Blank To the City Council of the City of Dublin Dublin, California MEMORANDUM ON INTERNAL CONTROL In planning and performing our audit of the basic financial statements of the City of Dublin as of and for the year ended JU.ne 30, 2016, in accordance with auditing standards generally accepted in the United States of America, we considered the City's internal control over financial reporting (internal control) as a basis for designing our audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City 's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Included in the-Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency. Management's written responses included in this report have not been subjected to the audit procedures applied in the audit of the fmancial statements and, accordingly, we express no opinion on them. This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties. /Vllt. ~t.-{ )\ M•~ Pleasant Hill, California November 17, 2016 Accountancy Corporation 3478 Buskirk Avenue , Suite 215 Pleasant Hill, CA 94523 1 T 925.930.0902 F 925.930.0135 E maze@mazeassociates.com w mazeassociates.com 1- This Page Left Intentionally Blank 2016-01 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS Super-User Access to the Financial System and Review of Payroll Registers Criteria: Staff with system administrator rights, or super-user access to all the financial system functions, should not review or approve payroll check runs without appropriate and sufficient mitigating controls in place. Condition: During our interim audit, we noted that one staff within the Finance Department has super- user rights to the City's financial system and is responsible for reviewing payroll runs. We understand that since our interim audit, the City has implemented procedures which require the signatures of both the payroll processor and the reviewer on the Payroll Summary and Hour Type Summary reports. Therefore, if data is changed electronically, that change would not be supported by the two reports. Cause: This staff requires super-user rights because she acts as the system administrator of the City's financial system. In addition, she is the back-up person to approve certain human resources entries in the financial system, which requires her to have access to the payroll module. Potential Effect: There is an increased risk of unauthorized adjustments being undetected. Recommendation: Ideally, Finance staff should not have super-user rights to the financial system, or at the minimum, access to the payroll module should be removed from the Finance staff responsible for reviewing the payroll registers. If this is deemed impractical, as a fraud deterrence procedure, on a random basis the Director of Administrative Services should conduct audits of key information, on the payroll runs, of the employees who have access to the payroll module. Management Response: The super-user access role of the Assistant Administrative Services Director to the fmancial system is not an oversight by the Finance Department, the access setting is based on the staffmg level of a small organization, which does not provide depth in staffmg level to segregate reviewer and approver roles of payroll. We understand segregation of duties is an essential element of internal control; aU-employee timesheets are reviewed and approved -by their respective supervisors and payroll processor. The recommendation of removing super-user rights from all fmance staff is not practical and operationally feasible; the City has implemented an alternative solution to address the check and balance concern: Each Payroll processing: payroll processor is required to initial on both payroll summary and hour type reports (Activity Report) after he processes payroll, and payroll reviewer/approver is also required to initial on the same reports after review. Payroll processor at that point will run the Activity Report one more time after payroll is reviewed to ensure there is no change comparing to the original Activity Report. Surprise Audit: The Administrative Services Director will perform surprise audit of payrolls. 3 2016-02 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS Best Practice Recommendations -Determination and Accounting for Capital Costs In fiscal year 2016, the City reported $27,906,237 in capital outlay expenditures and $26,650,804 in corresponding capital assets additions. The difference between the two amounts, $1.6 million, was as a result of the practice that the City books all capital assets associated costs under capital outlay. Upon the completion of the project, the City would determine the appropriate amount to be capitalized and write off the remaining balance. To simplify the City's process, we recollllllend that the City first determines what costs should be capitalize and only book those costs under capital outlay. According to the City's Capital Assets Policy (FA 08-2003), "capital projects will be capitalized as 'construction in progress' -until completed. Costs to be capitalized include direct costs, such as labor and materials, as well as ancillary costs and any construction period interest costs, as required by GASB pronouncements." In addition, for capital assets that are maintained by the Energy Efficiency Internal Service Fund, the City's current practice is to record the acquisition and construction costs of these assets first in its governmental funds. Then, the City transfers the assets to the Energy Efficiency Fund as a contribution from the governmental funds. To simplify the City's process, we recommend that the City centralizes resources (i.e. record revenues from the other funds) in the Energy Efficiency Fund, then record the capital additions directly in that fund. Management Responsl!'". The City will adopt the auditors' recollllllendation and expense all project costs in the same year incurred that is not eligible to be capitalized. 4 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking effect in the next few years. We have cited them here to keep you abreast of developments: Effective in fiscal year 2016-17: GASB 73 -Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68 This Statement establishes requirements for defined benefit pensions that are not within the scope of Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for purposes of providing those pensions. In addition, it establishes requirements for defined contribution pensions that are not within the scope of Statement 68. It also amends certain provisions of Statement No. 67, Financial Reporting for Pension Plans, and Statement 68 for pension plans and pensions that are within their respective scopes. GASB 74 -Financial Reporting for Post-employment Benefit Plans Other Than Pension Plans The objective of this Statement is to improve the usefulness of information about post-employment benefits other than pensions (other post-employment benefits or OPEB) included in the general purpose external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all post-employment benefits (pensions and OPEB) with regard to providing decision-useful information, supporting assessments of accountability and inter- period equity, and creating additional transparency. GASB 77 -Tax Abatement Disclosures This Statement establishes financial reporting standards for tax abatement agreements entered into by state and local governments. The disclosures required by this Statement encompass tax abatements resulting from both (a) agreements that are entered into by the reporting government and (b) agreements that are entered into by other governments and that reduce the reporting government's tax revenues. GASB 78 -Pensions Provided through Certain Multiple-Emplover Defined Benefit Pension Plans This Statement amends the scope and applicability of Statement 68 to exclude pensions provided to employees of state or local governmental employers through a cost-sharing multiple-employer defined benefit pension plan that (1) is not a state or local governmental pension plan, (2) is used to provide defined benefit pensions both to employees of state or local governmental employers and to employees of employers that are not state or local governmental employers, and (3) has no predominant state or local governmental employer (either individually or collectively with other state or local governmental employers that provide pensions through the pension plan). This Statement establishes requirements for recognition and measurement of pension expense, expenditures, and liabilities; note disclosures; and required supplementary information for pensions that have the characteristics described above. 5 GASB80- CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS Blending Requirements for Certain Component Units-an amendment of GASB Statement No. 14 This Statement amends the blending requirements for the financial statement presentation of component units of all state and local governments. The additional criterion requires blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The additional criterion does not apply to component units included in the fmancial reporting entity pursuant to the provisions of Statement No. 39, Determining Whether Certain Organizations Are Component Units. GASB82-Pension Issues-an amendment of GASB Statements No. 67, No. 68, and No. 73 The objective of this Statement is to address certain issues that have been raised with respect to Statements No. 67, Financial Reportingfor Pension Plans, No. 68,Accounting and Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68. Specifically, this Statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. Effective in fiscal year 2017-18: GASB 75 -Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for post-employment benefits other than pensions (other post-employment benefits or OPEB). It also improves information provided by state and local governmental employers about fmancial support for OPEB that is provided by other entities. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for all post-employment benefits (pensions and OPEB) with regard to providing decision-useful information, supporting assessments of accountability and inter-period equity, and creating additional transparency. GASB 81 -Irrevocable Split-Interest Agreements This Statement requires that a government that receives resources pursuant to an irrevocable split-interest agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement. Furthermore, this Statement requires that a government recognize assets representing its beneficial interests in irrevocable split-interest agreements that are administered by a third party, if the government controls the present service capacity of the beneficial interests. This Statement requires that a government recognize revenue when the resources become applicable to the reporting period. 6 To the City Council of the City of Dublin Dublin, California REQUJRED COMMUNICATIONS We have audited the basic financial statements of the City of Dublin for the year ended June 30, 2016. Professional standards require that we communicate to you the following information related to our audit under generally accepted auditing standards and generally accepted government audit standards. Significant Audit Findings Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Dublin are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year, except as follows: The following Governmental Accounting Standards Board (GASB) pronouncements became effective, but did not have a material effect on the financial statements: GASB Statement No. 76 -The Hierarchy of Genera/Iv Accepted Accounting Principles for State and Local Governments The following pronouncement became effective and required modifications to the notes to financial statements. GASB Statement No. 72 -Fair Value Measurement and Application This Statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement provides guidance for determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The requirements of this Statement enhance comparability of financial statements among governments by requiring measurement of certain assets and liabilities at fair value using a consistent and more detailed definition of fair value and accepted valuation techniques. This Statement also enhances fair value application guidance and related disclosures in order to provide information to financial statement users about the impact of fair value measurements on a government's financial position. Accountancy Corporation 3478 B uskirk Avenu e, S uite 2 15 Pleasant Hill, CA 94523 7 T 925 .930.0902 F 925 .930 .01 35 E maze@ mazeassociates .com w mazeassociates.com GASB 79 -Certain External Investment Pools and Pool Participants The requirements of this Statement are effective for reporting periods beginning after June 15, 2015, except for certain provisions on portfolio quality, custodial credit risk, and shadow pricing. Those provisions are effective for reporting periods beginning after December 15, 2015. This Statement addresses accounting and financial reporting for certain external investment pools and pool participants. Specifically, it establishes criteria for an external investment pool to qualify for making the election to measure all of its investments at amortized cost for financial reporting purposes. An external investment pool qualifies for that reporting if it meets all of the applicable criteria established in this Statement. The specific criteria address (1) how the external investment pool transacts with participants; (2) requirements for portfolio maturity, quality, diversification, and liquidity; and (3) calculation and requirements of a shadow price. Significant noncompliance prevents the external investment pool from measuring all of its investments at amortized cost for financial reporting purposes. Professional judgment is required to determine if instances of noncompliance with the criteria established by this Statement during the reporting period, individually or in the aggregate, were significant. If an external investment pool does not meet the criteria established by this Statement, that pool should apply the provisions in paragraph 16 of Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as amended. If an external investment pool meets the criteria in this Statement and measures all of its investments at amortized cost, the pool's participants also should measure their investments in that external investment pool at amortized cost for financial reporting purposes. If an external investment pool does not meet the criteria in this Statement, the pool's participants should measure their investments in that pool at fair value, as provided in paragraph 11 of Statement 31, as amended. This Statement establishes additional note disclosure requirements for qualifying external investment pools that measure all of their investments at amortized cost for financial reporting purposes and for governments that participate in those pools. Those disclosures for both the qualifying external investment pools and their participants include information about any limitations or restrictions on participant withdrawals. Unusual Transactions, Controversial or Emerging Areas We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. 8 Accounting Estimates Accounting estimates are an integral part of the fmancial 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 fmancial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate(s) affecting the City's financial statements was: • Estimated Net Pension Liabilities and Pension-Related Deferred Outflows and Inflows of Resources: Management's estimate of the net pension liabilities and deferred outflows/inflows of resources are disclosed in Note 10 to the financial statements and are based on actuarial studies determined by a consultant, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole. • Estimated Fair Value of Investments: As of June 30, 2016, the City's cash and investments were measured by fair value as disclosed in Note 3 to the fmancial statements. Fair value is essentially market pricing in effect as of June 30, 2016. These fair values are not required to be adjusted for changes in general market conditions occurring subsequent to June 30, 2016. • Estimate of Depreciation: Management's estimate of the depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 6 to the fmancial statements. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole. Disclosures The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Peiforming the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. · Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the City Council. 9 Disagreements with Management For purposes of this letter, a disagreement with management is a fmancial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the fmancial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included m a management representation letter dated November 17, 2016. 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 fmancial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Information Accompanying the Financial Statements We applied certain limited procedures to the required supplementary information that accompanies and supplements the basic fmancial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic fmancial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information. We were engaged to report on the supplementary information, which accompanying the fmancial statements but are not required supplementary information. With respect to this supplementary information, 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 fmancial statements themselves. We were not engaged to report on the Introductory and Statistical Sections included as part of the Comprehensive Annual Financial Report but are not required supplementary information. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on them. 10 ****** This information is intended solely for the use of City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties. ~~t-iAMv~ Pleasant Hill, California November 17, 2016 11 This Page Left Intentionally Blank CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION- l\1EASURE B FUNDS FOR THE YEAR ENDED JUNE 30, 2016 This Page Left Intentionally Blank CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS For the Year Ended June 30, 2016 Table of Contents Independent Auditor's Report ............................................................................................................. 1 Financial Statements Combined Balance Sheet .................................................................................................................. 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balance .......................... 4 Notes to Financial Statements .......................................................................................................... 5 Independent Auditor's Report On Measure B Compliance ............................................................. 9 This Page Left Intentionally Blank INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council of the City of Dublin City of Dublin, California Report on Financial Statements We have audited the accompanying financial statements of the Alameda County Transportation Commission -Measure B Funds (Measure B Funds) of the City of Dublin, California, as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the Measure B Funds' basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express op1mons on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill , CA 94523 T 925.930.0902 F 925.930.0135 e maze@mazeassociates.com w mazeassociates.com Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure B Funds of the City as of June 30, 2016, and the change in fmancial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1, the financial statements present only the City's Measure B funds and do not purport to, and do not present fairly the financial position of the City as of June 3 0, 2016, the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 17, 2016 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. tYYt~~ 1 }f-'do ~ Pleasant Hill, California :N"ovember17,2016 2 City of Dublin Alameda County Transportation Commission -Measure B Funds Combined Balance Sheet June 30, 2016 ASSETS Cash and investments Direct Local Distribution Program Receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Due to the City Total liabilities Fund Balances: Restricted Total fund balances Total liabilities and fund balances Special Revenue Funds MeasureB MeasureB Local Bike and Streets Pedestrian $498,012 $234,153 68,494 26,398 566,506 260,551 ·$99 99 $566,506 260,452 566,506 260,452 $566,506 $260,551 See accompanying Notes to Financial Statements 3 Total $732,165 94,892 827,057 $99 99 $826,958 826,958 $827,057 City of Dublin Alameda County Transportation Commission -Measure B Funds Combined Statement of Revenues, Expenditures and Changes In Fund Balance For the year ended June 30, 2016 REVENUES: Direct Local Program Distribution Allocation Interest Total revenues EXPENDITURES: Current: Highway and Streets Capital outlay: Street Overlay Program Street Slurry Seal Programs Dougherty Road Improvement Total expenditures CHANGE IN FUND BALANCES FUND BALANCES: Beginning of year Endofyear Special Revenue Funds Measure B Measure B Local Bike and Streets $435,604 4,079 439,683 349,839 59,386 409,225 30,458 536,048 $566,506 Pedestrian $167,885 1,660 169,545 11,250 30,000. 41,250 128,295 132,157 $260,452 See accompanying Notes to Financial Statements 4 Total $603,489 5,739 609,228 11,250 349,839 89,386 450,475 158,753 668,205 $826,958 CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS NOTES TO FINANCIAL STATEMENTS For the year ended June 30, 2016 I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity All transactions of the Alameda County Transportation Commission -Measure B Funds (Measure B Funds) of the City of Dublin, California (City), are included as a separate special revenue fund in the basic financial statements of the City. Measure B Funds is used to account for the City's share of revenues earned and expenditures incurred under the City's local streets, bikes and pedestrians and capital projects programs. The accompanying financial statements are for Measure B Funds only and are not intended to fairly present the financial position of the City and the results of its operations and cash flows of its proprietary fund type. B. Basis of Accounting The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a "current financial resources" measurement focus, wherein only current assets and current liabilities generally are included on the balance sheets. · Operating statements of governmental funds present increased (revenues and other financing sources) and decreased (expenditures and other fmancing uses) in net current assets. C. Description of Funds The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self-balancing set of accounts. The following funds are used: Special Revenue Funds -To account for the proceeds of specific revenues that are legally restricted to be expended for specified purposes. I NOTE 2 -CASH AND INVESTMENTS I Cash and investments are maintained on a pooled basis with those of other funds of the City. Pooled cash and investments consist of U.S. government securities, deposits with banks, mutual funds and participation in the California Local Agency Investment Fund. All investments are stated at fair value. Pooled investment earnings are allocated monthly based on the average monthly cash and investment balances of the various funds and related entities of the City. See the City's Comprehensive Annual Financial Report for disclosures related to cash and investments and the related custodial risk categorization. This may be obtained from the City of Dublin, 100 Civic Plaza, Dublin, California 94568. 5 CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS NOTES TO FINANCIAL STATEMENTS For the year ended June 30, 2016 I NOTE 3 -RECEIVABLES The receivables represent the Measure B sales tax revenues and project reimbursements for the fiscal year received from the Alameda County Transportation Commission after June 30, 2016. !NOTE 4-MEASURE B FUNDS I Under Measure B, approved by the voters of Alameda County in 1986 (Old Measure B) and in 2000, Alameda CTC Measure B, the City receives a portion of the proceeds of an additional one-half cent sales tax to be used for transportation-related expenditures. This measure was adopted with the intention that the funds generated by the additional sales tax will not fund expenditures previously paid for by property taxes but, rather, would be used for additional projects and programs. Local projects funded by Measure B were as follows: • Highway and Streets (Public Work Admin) -Bicycle Master Plan Program Implementation • Street Overlay Program -Measure B provided funding for the replacement of asphalt overlay on streets throughout the City and prolongs the useful life of the pavement. The scope of work includes removing and replacing failed pavement, placing asphalt concrete overlay and restriping the street. From a pool of funds held by the County, Certain additional portion of the pool is allocated among the cities in the County, based on the cities' populations and the number of roads within their city limits for other transportation-related projects. Funds allocated for streets and roads; bike lanes and pedestrian lanes are recorded as a special revenue funds. I NOTE 5 -COMMITMENTS AND CONTINGENCIES The City participates in several grant programs. These programs have been audited by the City's independent accountants in accordance with the provisions of applicable State requirements. No cost disallowances were proposed as a result of these audits; however, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 6 INDEPENDENT AUDITOR'S REPORT ON MEASURE B COMPLIANCE To the Honorable Members of the City Council City of Dublin, California Report on Compliance for Measure B Funds We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of the Measure B Funds of the City of Dublin (City), California, as of and for the year ended June 30, 2016 and the related notes to the financial statements, and have issued our report thereon date November 17, 2016. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the Measure B funds based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and requirements specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Those standards and requirements require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on Measure B Funds occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the Measure B Funds. However, our audit does not provide a legal determination of the City's compliance. Opinion on Measure B Funds In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on Measure B Funds for the year ended June 30, 2016. Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 7 T 925.930.0902 F 925.930 .0135 E maze@mazeassociates.com w mazeassociates.com Report on Internal Control Over Compliance Management is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on Measure B Funds to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the Measure B Funds and to test and report on internal control over compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of Measure B Funds on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of Measure B Funds will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of Measure B Funds that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We have also issued a separate Memorandum on Internal Control dated November 17, 2016 which is an integral part of our audits and should be read in conjunction with this report. The purpose of this report on internal centrol over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements, specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose. Pk~~~J\Mb~ November 17, 2016 8 CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEIDCLE REGISTRATION FEE (VRF) MEASURE F PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 This Page Left Intentionally Blank CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEIDCLE REGISTRATION FEE (VRF) MEASURE F PROGRAM FINANCIAL STATEMENTS For The Year Ended June 30, 2016 Table of Contents Independent Auditor's Report ........................................................................................................................... 1 Financial Statements: Balance Sheet .................................................................................................................................. 3 Statement of Revenues, Expenditures and Changes i11 Fund Balance ........................................... 4 Notes to Financial Statements .......................................................................................................... 5 Independent Auditor's Report on Vehicle Registration Fee (VRF) Measure F Compliance .................... 7 This Page Left Intentionally Blank INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Dublin, California Report on Financial Statements We have audited the accompanying fmancial statements of the Alameda County Vehicle Registration Fee (VRF) Measure F Program (Measure F Program) of the City of Dublin (City), California, as of and for the year ended June 30, 2016, and the related notes to the financial statements, which collectively comprise the Measure F Program's basic fmancial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these fmancial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the fmancial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these fmancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fmancial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the fmancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Accountancy Corporation 3478 Buskirk Avenue, Suite ·215 Pleasant Hill, CA 94523 T 925.930 .0902 F 925.930.0135 E maze@mazeassociates.com w mazeassociates.com Opinions In our opinion, the fmancial statements referred to above present fairly, in all material respects, the fmancial position of the Measure F Program of the City as of June 3 0, 2016, and the change in fmancial position for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 2, the fmancial statements present only the Measure F Program and do not purport to, and do not present fairly the fmancial position of the City as of June 30, 2016, the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we-have also issued our report dated November 17, 2016, on our consideration of the City's internal control over fmancial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters-. The purpose of that report is to describe the scope of our testing of internal control over fmancial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. ~~1.l\~~ Pleasant Hill, California November 17, 2016 2 City of Dublin Alameda County Transportation Improvement Authority -Vehicle Registration Fee Balance Sheet June 30, 2016 ASSETS Cash and investments Direct Local Distribution Program Receivable Other receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Total liabilities Fund Balances: Restricted Total fund balances Total liabilities and fund balances $ $ $ $ Vehicle Registration Fee Special Revenue Fund 189,136 49,674 2,750 241,560 26,336 26,336 215,224 215,224 241,560 See accompanying Notes to Financial Statements 3 City of Dublin Alameda County Transportation Improvement Authority -Vehicle Registration Fee Statement of Revenues, Expenditures and Changes In Fund Balance For the year ended June 30, 2016 REVENUES: Direct Local Distributions Interest Total revenues EXPENDITURES: Current Highway and Streets Capital Outlay: Traffic Signal Improvements Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year See accompanying Notes to Financial Statements 4 $ $ Vehicle Registration Fee Special Revenue Fund 273,321 1,463 274,784 149,648 84,100 233,748 41,036 174,188 215,224 CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEIDCLE REGISTRATION FEE (VRF) MEASURE F PROGRAM Notes to the Financial Statements for the Year Ended June 30, 2016 INOTE1-BACKGROUND Measure F Program -Alameda County Vehicle Registration Fee Measure F (Measure F Program) was approved by the voters in November 2010, with 63 percent of the vote. The fee will generate about $10.7 million per year by a $10 per year vehicle registration fee. The collection of the $10 per year vehicle registration fee started in the first week of May 2011. The goal of the VRF Program is to sustain the County's transportation network and reduce traffic congestion and vehicle related pollution. The program includes four categories of projects: • Local Road Improvement and Repair Program (60 percent) • Transit for Congestion Relief (25 percent) • Local Transportation Technology (10 percent) • Pedestrian and Bicyclist Access and Safety Program (5 percent) The Alameda County Transportation Commission administers the program and distributes an equitable share of the funds among the four planning areas of the county over successive five year cycles. Geographic equity will be measured by a formula, weighted 50 percent by population of the planning area and 50 percent ofregistered vehicles of the planning area. I NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES I Reporting Entity -All transactions of the Measure F Program of the City are included as a separate special revenue fund in the basic financial statements of the City. The accompanying financial statements include the Measure F Program only and are not intended to fairly present the financial position, results of operations and cash flows of the City in conformity with accounting principles generally accepted in the United States of America. Basis of Accounting -The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a "current financial resources" measurement focus, wherein only current assets and current liabilities generally are included on the balance sheets. Operating statements of governmental funds presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Description of Funds -The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self-balancing set of accounts. 5 CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEIDCLE REGISTRATION FEE (VRF) MEASURE F PROGRAM Notes to the Financial Statements for the Year Ended June 30, 2016 l NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES (Continued) The following funds are used: Special Revenue Funds -To account for the proceeds of specific revenues that are legally restricted to be expended for specified purposes. Use of Estimates -Management uses estimates and assumptions in preparing the financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. I NOTE 3 -CASH AND INVESTMENTS I Cash and investments are maintained on a pooled basis with those of other funds ·or the City. Pooled cash and investments consist of U.S. government securities, deposits with banks, mutual funds and participation in the California Local Agency Investment Fund. All investments are stated at fair value. Pooled investment earnings are allocated monthly based on the average monthly cash and investment balances of the various funds and related entities of the City. See the City's Comprehensive Annual Financial Report for disclosures related to cash and investments and the related custodial risk categorization. This may be obtained from the City of Dublin, 100 Civic Plaza, Dublin, California 94568. I NOTE 4 -MEASURE F (VEIDCLE REGISTRATION FEE) FUND Under Measure F, approved by the voters of Alameda County, the City receives a portion of the vehicle registration fee designated to be used for improving traffic flow by reducing congestion and improving overall traffic safety. Local project funded by Measure F was as follows: • Citywide Signal Communication Upgrade -Replace failing signal equipment and enhance traffic detection systems. This helped the City in minimizing traffic delays due to potential equipment failure and to improve overall traffic safety. Measure F also provided funding associated with maintaining traffic signals and efficient movement of traffic in the City. 6 INDEPENDENT AUDITOR'S REPORT ON VEIDCLES REGISTRATION FEE (VRF) MEASURE F COMPLIANCE To the Honorable Members of the City Council City of Dublin, California Report on Compliance for Measure F Program We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of Measure F Program of the City of Dublin (City), California, as of and for the year ended June 30, 2016 and the related notes to the financial statements, and have issued our report thereon date November 17, 2016. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants specified in the Master Programs Funding Agreement, between the City and the Alameda County Transportation Commission. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the Measure F Program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and requirements specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Those standards and requirements require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on Measure F Program. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the Measure F Program. However, our audit does not provide a legal determination of the City's compliance. Accountancy Corporation 3478 Buskirk Avenue , Suite 215 Pleasant Hill , CA 94523 7 T 925.930.0902 F 925.930.0135 e maze@mazeassociates.com w mazeassociates.com Opinion on Measure F Programs Jn our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on Measure F Program for the year ended June 30, 3016. Reporl on Internal Control Over Compliance Management is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. Jn planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on Measure F Program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the Measure F Program and to test and report on internal control over compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal-control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, 01: detect and correct, noncompliance with a type of compliance requirement of Measure F Program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of Measure F Program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of Measure F Program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We have also issued a separate Memorandum on Internal Control dated November 17, 2016 which is an integral part of our audits and should be read in conjunction with this report. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose. Pleasant Hill, California November17,2016 8 CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY TRANSPORTATION COMMISSION - MEASURE BB PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2016 This Page Left Intentionally Blank CITY OF DUBLIN MEASURE BB PROGRAM Financial Statements For the year ended June 30, 2016 Table of Contents Independent Auditor's Report ............................................................................................................. 1 Financial Statements: Balance Sheet .................................................................................................................................. 3 Statement of Revenues, Expenditures and Changes in Fund Balance ........................................... 4 Notes to Financial Statements .......................................................................................................... 5 Independent Auditor's Report on Measure BB Compliance ........................................................... 7 This Page Left Intentionally Blank INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and Members of the City Council City of Dublin, California Report on Financial Statements We have audited the financial statements of the Alameda County Transportation Commission-Measure BB Program (Measure BB Program) of the City of Dublin, California, as of and for the year ended June 30, 2016, and the related notes to the financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the U~ited States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fr~ud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing such an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Accountancy Corporation 3478 Buskirk Avenue, Suite 2 15 Pleasant H ill , CA 94523 1 T 925.930 .0902 F 925 .930.013 5 E maze@ mazeassociates.com w mazeassoc iates .com Opinions In our opinion, the financial statements referred to above present fairly in all material respects the financial position of the project at June 30, 2016 and the results of operations and changes in fund balance for the year then in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 2, the financial statements present only the City's Measure BB Program and do not purport to, and do not present fairly the financial position of the City as of June 30, 2016, the changes in its financial position, or where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 17, 2016 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. "'1,ct,£ ~~/)1~ ~ Pleasant Hill, California November 17, 2016 2 City of Dublin Alameda County Transportation Improvement Authority -Measure BB Balance Sheet For the year ended June 30, 2016 Local Streets and Roads ASSETS Cash $403,848 Direct Local Distribution Program Receivable 60,311 Total assets $464,159 Fund Balances: Restricted $464,159 Total fund balances 464,159 Total liabilities and fund balances $464,159 Bike and Pedestrian $140,902 21,134 $162,036 $162,036 162,036 $162,036 See accompanying Notes to Financial Statements 3 Totals $544,750 81,445 $626,195 $626,195 626,195 $626,195 City of Dublin Alameda County Transportation Improvement Authority -Measure BB Statement of Revenues, Expenditures and Changes In Fund Balance For the year ended June 30, 2016 Local Streets and Roads REVENUES: Direct Local Distributions $391,238 Interest 2,015 Total revenues 393,253 NET CHANGE IN FUND BALANCE 393,253 FUND BALANCE: Beginning of year 70,906 End of year $464,159 See accompanying Notes to Financial Statements 4 Bike and Pedestrian Totals $137,094 $528,332 708 2,723 137,802 531,055 137,802 531,055 24,234 95,140 $162,036 $626,195 I NOTE I-BACKGROUND CITY OF DUBLIN, CALIFORNIA MEASURE BB PROGRAM Notes to the Financial Statements For the year ended June 30, 2016 Measure BB Program -Alameda County Measure BB (Measure BB Program) was approved by the voters in November 2014, with 70 percent of the vote. The fund is to be used for transportation related expenditures. The program includes four categories of projects: a. Transit b. Affordable Transit for Seniors and People with Disabilities c. Local Streets and Roads d. Bicycle and Pedestrian Path and Safety I NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES Reporting Entity -All transactions of the Measure BB Program of the City are included as a separate special revenue fund in the basic financial statements of the City. The accompanying financial statements include the Measure BB Program only and are not intended to fairly present the fmancial position, results of operations and cash flows of the City in conformity with accounting principles generally accepted in the United States of America. Basis of Accounting -The accompanying fmancial 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 fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a "current financial resources" measurement focus, wherein only current assets and current liabilities generally are included on the balance sheets. Operating statements of governmental funds presents increases (revenues and other fmancing sources) and decreases (expenditures and other financing uses) in net current assets. Description of Funds -The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self-balancing set of accounts. 5 CITY OF DUBLIN, CALIFORNIA MEASURE BB PROGRAM Notes to the Financial Statements For the year ended June 30, 2016 I NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES (Continued) The following funds are used: Special Revenue Funds -To account for the proceeds of specific revenues that are legally restricted to be expended for specified purposes. Use of Estimates -Management uses estimates and assumptions in preparing the financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. I NOTE 3 -CASH AND INVESTMENTS Cash and investments are maintained on a pooled basis with those of other funds of the City. Pooled cash and investments consist of U.S. government securities, deposits with banks, mutual funds and participation in the California Local Agency Investment Fund. All investments are stated at fair value. Pooled investment earnings are allocated monthly based on the average monthly cash and investment balances of the various funds and related entities of the City. See the City's Comprehensive Annual Financial Report for disclosures related to cash and investments and the related custodial risk categorization. This may be obtained from the City of Dublin, 100 Civic Plaza, Dublin, California 94568. 6 INDEPENDENT AUDITOR'S REPORT ON MEASURE BB COMPLIANCE To the Honorable Members of the City Council City of Dublin, California Report on Compliance for Measure BB Program We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of Measure BB Program of the City of Dublin (City), California, as of and for the year ended June 30, 2016 and the related notes to the financial statements, and have issued our report thereon date November 17, 2016. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants specified in the Master Programs Funding Agreement, between the City and the Alameda County Transportation Commission. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the Measure BB Program based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and requirements specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Those standards and requirements require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on Measure BB Program. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the Measure BB Program. However, our audit does not provide a legal determination of the City's compliance. Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 7 T 925.930.0902 F 925 .930.0135 E maze@mazeassociates.com w mazeassociates.com Opinion on Measure BB Programs In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on Measure BB Program for the year ended June 30, 2016. Report on Internal Control Over Compliance Management is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on Measure BB Program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the Measure BB Program and to test and report on internal control over compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of Measure BB Program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of Measure BB Program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of Measure BB Program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We have also issued a separate Memorandum on Internal Control dated November 17, 2016 which is an integral part of our audits and should be read in conjunction with this report. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements specified in the Master Programs Funding Agreement between the City and the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose. tW\_LA1f ~-~ Pleasant Hill, California November 17, 2016 8 CITY OF DUBLIN, CALIFORNIA TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND FINANCIAL STATEMENTS FOR THE FISCAL YEARS ENDED JUNE 30, 2016 and 2015 This Page Left Intentionally Blank CITY OF DUBLIN TRANSPORTATION DEVELOPMENT ACT ARTICLE ill FUND For The Years Ended June 30, 2016 and 2015 Table of Contents Independent Auditor's Report ................................................................................................................. 1 Financial Statements: Balance Sheets .................................................................................................................................... 3 Statements of Revenues and Expenditures and Changes in Fund Balances ..................................... 4 Notes to Financial Statements ........................................................................................................... 5 Independent Auditor's Report on Internal Control over Financial Reporting On Compliance with the Transportation Development Act and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................................................................................................ 7 This Page Left Intentionally Blank INDEPENDENT AUDITOR'S REPORT The Honorable Mayor and Members of the City Council City of Dublin, California Report on Financial Statements We have audited the financial statements of the City of Dublin Transportation Development Act Article ill Fund (TDA Fund), a component of the City of Dublin, California, as of and for the years ended June 30, 2016 and 2015, and the related notes to the financial statements, as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these :financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fmancial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the fmancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the TDA Fund's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the TDA Fund's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the fmancial statements . We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Accountancy Corporation 3478 Bu skirk Ave nue, Sui te 2 15 Pl easant Hill , CA 94523 T 925 .930.0902 F 925.930 .0 135 E maze@ mazeassociates .co m w mazeassociates.com Opinions In our opinion, the fmancial statements referred to above present fairly, in all material respects, the fmancial positions of the TDA Fund as of June 30, 2016 and 2015, and the changes in financial positions for the years then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matters As discussed in Note 1, the fmancial statements present only the TDA Fund and do not purport to, and do not present fairly the fmancial position of the City as of June 30, 2016, the changes in its fmancial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 17, 2016, on our consideration of the City's internal control over fmancial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over fmancial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. llYl~ ~~~ Pleasant Hill, California November 17, 2016 2 City of Dublin TDAFund Balance Sheets June 30, 2016 and 2015 ASSETS Cash and investments Total assets LIABILITIES Due to other funds Total liabilities FUND BALANCE: Restricted Total liabilities and fund balances 2016 $33,311 33,311 (33,311) See accompanying Notes to Financial Statements 3 2015 $175 $175 $175 175 $175 City of Dublin TDAFunds Statements of Revenues, Expenditures and Changes In Fund Balance For the years ended June 30, 2016 and 2015 2016 2015 REVENUES: Intergovernmental Total revenues EXPENDITURES Pedestrian/Bicycle (Note 3) CHANGE IN FUND BALANCES FUND BALANCES: Beginning of year Endofyear $33,311 (33,311) ($33,311) See accompanying Notes to Financial Statements 4 $207,189 207,189 150,043 57,146 (57,146) CITY OF DUBLIN TRANSPORTATION DEVELOPMENT ACT ARTICLE ill FUND NOTES TO THE FINANCIAL STATEMENTS For The Year Ended June 30, 2016 I NOTE 1-DESCRIPTION OF REPORTING ENTITY I Reporting Entity -The City of Dublin, California (City) Transportation Development Act Article III Funds (TDA Fund) include the financial activities associated with allocations funded by the State of California Transportation Development Act (TDA). The State of California created a local transportation fund for each County funded by a portion of the State sales tax. The TDA grants are distributed through the Metropolitan Transportation Commission (MTC) which is the agency's responsibility for allocation of funds to eligible claimants within the greater San Francisco Bay area. The TDA grants for the City of Dublin are for Pedestrian/Bicycle Projects. TDA Fund is presented as a Special Revenue Fund of the comprehensive annual financial report of the City. These TDA Fund financial statements are not intended to present fairly the financial position, results of operations and cash flows of the City of Dublin in conformity with accounting principles generally accepted in the United States of America. I NOTE 2 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fund Accounting-The accounts of the TDA Fund for the City are organized on the basis of funds, and is considered to be a separate accounting entity. The operations of the TDA Fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in the fund based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Basis of Accounting -The accounting and reporting treatment applied to a fund is determined by its measurements focus. All governmental funds are accounted for on a spending or "current financial resources" measurement focus. Accordingly, only current asset and current liabilities generally are included on the balance sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. All governmental fund types are accounted for using the modified accrual basis of accounting wherein revenues are recognized in the accounting period in which they become measurable and available to pay liabilities of the current period. Expenditures are recognized in the accounting period in which the fund liability is incurred. Revenue Recognition -Under the terms of the various grant agreements, the TDA Fund generally recognize revenues when approved expenditures are incurred. Accordingly, the accompanying financial statements present grants receivable and the corresponding intergovernmental revenues. Use of Estimates -The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. 5 CITY OF DUBLIN TRANSPORTATION DEVELOPMENT ACT ARTICLE ill FUND NOTES TO THE FINANCIAL STATEMENTS For The Year Ended June 30, 2016 j NOTE 3 -TDA ARTICLE ill REVENUE AND EXPENDITURES The following is a summary of the project grant revenues and total expenditures. MTC TDAGrant Prior Years' 2014-2015 2015-2016 Total Project Name Allocation# Award &penditures &penditures &penditures &penditures Pedestrian/Bicycle; Capital 14001072 $178,225 ($57,146) ($121,079) ($178,225) Pedestrian/Bicycle; Capital 14001073 28,964 (28,964) (28,964) Pedestrian/Bicycle; Capital 15001065 148,311 ($33,311} (33,311) Total $355,500 ($57,146) ($150,043) ($33,311) ($240,500) 6 Unexpended Balance $115,000 $115,000 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING, ON COMPLIANCE WITH THE TRANSPORTATION DEVELOPMENT ACT AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and Members of the City Council City of Dublin, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the City of Dublin as of and for the year ended June 3 0, 2016, and the related notes to t..lie financial statements, and have issued our report thereon dated November 10, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City's internal control. Accordingly, we do not express an opinion on the effectiveness of City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect a..11d correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Accountancy Corporation 3478 Buskirk Avenue , Suite 2 15 Pl easant Hill , CA 94523 7 T 925 .930 .0902 F 925 .930 .0 135 E maze@ m azeassociates .com w mazeassociates.com Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Our procedures included the applicable audit procedures contained in §6666 of Title 21 of California Code of Regulations and tests of compliance with the applicable provisions of the Transportation Development Act and the allocation instructions and resolutions of the Metropolitan Transportation Commission. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We have also issued a separate Memorandum on Internal Control dated November 17, 2016 which is an integral part of our audit and should be read in conjunction with this report. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance \\ith Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. This report is intended solely for the information and use of the Metropolitan Transportation Commission, management, City Council, others within the City, and federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. t«\,eti.t.-4)\Mo~ Pleasant Hill, California November 17, 2016 8 INDEPENDENT ACCOUNTANT'S REPORT ON APPLYJNG AGREED UPON PROCEDURES FOR COMPLIANCE WITH THE PROPOSITION 111 2016-2017 APPROPRIATIONS LIMIT INCREMENT Honorable Mayor and Members of the City Council City of Dublin, California We have performed the procedures below to the Appropriations Limit Worksheet which were agreed to by the City of Dublin for the year ended June 30, 2016. These procedures, which were suggested by the League of California Cities and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines were perfonned solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. Management is . responsible for the Appropriations Limit Worksheet. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the City. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures you requested us to perform and our findings were as follows: A. We obtained the Appropriations Limit Worksheet and determined that the 2016-2017 Appropriations Limit of $291,414,855 and annual adjustment factors were adopted by Resolution of the City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council. B. We recomputed the 2016-2017 Appropriations Limit by multiplying the 2015-2016 Prior Year Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by multiplying the inflation option by the population option. C. For the Appropriations Limit Worksheet, we agreed the Per Capita Income, City Population and County Population Factors to California State Department of Finance Worksheets. We also agreed the Local Non-Resident Construction Factor to the Contra Costa County's "Assessor Office PROP 111 New Construction 2016-2017" Report. We were not engaged to, and did not, conduct an audit, the objective of which would be the expression of an opinion on the Appropriations Limit Worksheet. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information of management and the City Council; however, this 7'Vl,~;no~~~~distribution of this report, which is a matter of public record. Pleasant Hill, California November 17, 2016 Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 T 925.930.0902 F 925.930 .0135 E maze@mazeassociates.com w mazeassociates.com