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HomeMy WebLinkAbout4.8 - 1750 Comprehensive Annual Financial Report CAFR Page 1 of 6 STAFF REPORT CITY COUNCIL DATE: December 19, 2017 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, 2017 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, 2017. 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 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 the report. 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. Page 2 of 6 DESCRIPTION: The City of Dublin has prepared its Comprehensive Annual Financial Report (CAFR) for the Fiscal Year ending June 30, 2017. The CAFR (Attachment 2) includes audited financial statements reviewed by Maze and Associates Accountancy Corporation (Maze), the independent auditor selected by the City Council, and concludes the year-long extension of the audit services contract 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, comprised of Councilmembers Goel and Hernandez, on December 5, 2017, 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. 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 $32.1 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 6-7). It is important to note that the amount reported as Total Net Assets includes: 1. $487.1 million (69.4% 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. $94.7 million (13.5% of the total assets) are assets subject to external restrictions on how they can be used, such as development impact fee funds. 3. $120.5 million (17.2% of total assets) in net assets are unrestricted. Page 3 of 6 TABLE 1: SUMMARY OF NET POSITION June 30, 2017 and 2016 June 30, 2017 June 30, 2016 $ Change % Change Item Current and other assets 242,412,845 228,952,110 13,460,735 5.9% Notes receivable (See Note5) 15,032,783 14,614,947 417,836 2.9% OPEB asset (Note 12)1,172,913 996,376 176,537 17.7% Capital assets 492,040,457 466,309,644 25,730,813 5.5% Total Assets 750,658,998 710,873,077 39,785,921 5.6% Deferred Outflows of Resources 3,915,819 1,997,928 1,917,891 95.99% Current liabilities 27,001,634 23,586,470 3,415,164 14.5% Noncurrent liabilities 24,262,586 17,787,418 6,475,168 36.4% Total Liabilities 51,264,220 41,373,888 9,890,332 23.9% Deferred Inflows of Resources 977,509 1,216,310 (238,801) -19.6% Net investment in capital assets 487,123,214 460,963,292 26,159,922 5.7% Restricted 94,745,655 97,592,438 (2,846,783) -2.9% Unrestricted 120,464,219 111,725,077 8,739,142 7.8% (See Note 8 to Financials for Classification) Total Net Assets 702,333,088 670,280,807 32,052,281 4.8% Governmental Activities Memorandum on Internal Control (MOIC) (Attachment 3) The MOIC includ es a report on the City’s accounting and reporting procedures, as well as recommendations for process improvements. The report noted one item classified as a significant deficiency in FY 2016-17: 1. Parks and Community Services (PCS) System Implementation and Cash Deposit Worksheets. The auditors noted delayed bank statement reconciliations due to discrepancies between revenue reported and revenue collected for PCS programs, particularly at The Wave. The cause was related both to the new PCS recreation software having challenges integrating with the City’s existing financial software, and to the need for an additional level of review in PCS before reports are transmitted to Finance. Before these findings were made, Staff from PCS and Administrative Services had been working together on solutions to these issues, which include potentially working with a new third-party credit card processing vendor, implementing unannounced site audits of cash handling procedures at The Wave, adding a final level of review in PCS’ administrative office, and enhancing PCS software training to include members of the Administrative Service Department. Page 4 of 6 The MOIC also contains a description of new Governmental Accounting Standards Board (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 2017-18 include GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, which requires reporting of the City’s retiree health obligation on its financial statements. This does not affect the City’s financial health and will not have a material effect on the City’s financial books. In addition, the MOIC describes GASB Statements 81 – Irrevocable Split Interest Payments, 85 – Omnibus 2017, and 86 – Certain Debt Extinguishment Issues, that will go into effect in FY 2017 -18. These new guidelines will not materially affect the City. 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 2016-17 year-end reserves established in accordance with this policy is shown on CAFR page 67. The following table summarizes the fund balances for all City funds: TABLE 2: GOVERNMENTAL FUND BALANCE CHANGES June 30, 2017 and 2016 June 30, 2017 June 30, 2016 $ Change % Change General Fund 122,415,662 109,184,026 13,231,636 12.1% Affordable Housing Fund 27,193,329 25,526,669 1,666,660 6.5% Capital Improvement Funds 54,676,919 60,282,217 (5,605,298) -9.3% Other Governmental Funds 12,624,728 11,783,552 841,176 7.1% Total Governmental Funds 216,910,638 206,776,464 10,134,174 4.9% As shown above, General Fund Reserves totaled $122.4 million as of June 30, 2017: $34.1 million of that is available for cash flow purposes, equating to 5.5 months of budgeted operating expenditures in FY 2017-18. This exceeds the target as guided by the City Policy, which sets the cash flow goal at between two and four months of the next year’s 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 (TDA) 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 2016-17, and therefore was not required to complete a Federal Grant - Single Audit Report. The following briefly summarizes 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 2016-17, the following projects were funded by Measure B: − Citywide Bicycle and Pedestrian Improvements − 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, 2017, the Local Streets fund balance of $455,919 is assigned to a Capital Reserve for the continued street improvement projects, and the Bike I Pedestrian fund balance of $386,344 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, 2017, the ACTC VRF fund had a balance of $207,516 in restricted funds. The FY 2017-18 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, 2017, the Measure BB Fund had a restricted fund balance of $648,755 for Local Streets and Roads, and $106,353 restricted for Bicycle and Pedestrian improvements. Expenditures of these funds in FY 2016-17 were related to the City’s Street Overlay Program. Page 6 of 6 TDA Funds Report (Attachment 7): 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 2016-17, $115,000 was spent on the pedestrian signal improvements. There are no remaining TDA grants funds to carry into FY 2017-18. 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 $314,611,477 Limit as presented in the FY 2016-17 Budget. There were no exceptions noted in the findings. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Summary - Key Information Comprehensive Annual Financial Report for FY 2016-17 2. City of Dublin Comprehensive Annual Financial Report for FY 2016-17 3. Memorandum on Internal Control 4. Measure B Report 5. Vehicle Registration Fee (VRF) Report 6. Measure BB Report 7. TDA Report 8. Review of the City's Annual Appropriations Limit SUMMARY – KEY INFORMATION COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2017 City Council Meeting December 19, 2017 Page 1 of 1 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. 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 175-end): the unaudited statistical section of the CAFR includes graphs of relevant historical data. 5. Fund Equity - A complete listing of both fund reserves and designations for all funds is shown on page 67 of the report. 6. Audit Recommendations / Disclosures - As part of the Audit Review the independent auditors can present recommendations for consideration by the City. The process allows the Auditors to disclose their observations on certain practices and policies. As part of the recommendations the Auditors also note the upcoming government accounting standard changes. This information is presented as a separate document titled “Memorandum on Internal Control and Required Communications for the Fiscal Year ended June 30, 2017”. City of Dublin CALIFORNIA Dublin -···· fiiii! 2011 COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year 'ended June 30, 2017 I- This Page Left Intentionally Blank CITY OF DUBLIN, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED .JUNE 30, 2017 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, 2017 Table of Contents ........................................................................................................................................................ i Letter of Transmittal ................................................................................................................................................... v GFOA Certificate of Achievement ......................................................................................................................... xiii Principal Officers ..................................................................................................................................................... xiv Organizational Chart ................................................................................................................................................ xv 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 ofNet Position ................................................................................................................................ 30 Statement of Revenues, Expenditures, and Changes in Fund Balances ............................................ 3 2 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 .............................................................................. 3 6 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2017 I FINANCIAL SECTION (Continued): Proprietary Funds: Statement of Net Position ................................................................................................................... 38 Statement of Revenue, Expenses and Changes in Fund Net Position ............................................... 3 9 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 ................. 86 Schedule of Contributions ........................................................................................................................ 87 Other Post-Employment Benefits-Schedule of Funding Progress .......................................................... 88 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 .......................................................... 98 Community Improvements Projects Capital Projects Fund ................................................... 99 Parks Projects Capital Projects Fund ................................................................................... 100 Streets Projects Capital Projects Fund ................................................................................. 101 Public Facilities Impact Fees Capital Projects Fund ............................................................ 102 Fire Impact Fees Capital Projects Fund ............................................................................... 103 Traffic Impact Fees Capital Projects Fund ........................................................................... l 04 Dublin Crossing Contribution Capital Projects Fund .......................................................... 105 ii CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2017 I FINANCIAL SECTION (Continued): I Non-major Governmental Funds: Combining Balance Sheets ............................................................................................................. 112 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................................................................................................... 120 Schedule of Revenues, Expenditures, and Changes in Fund Balances -Budget and Actual ...................................................................................... 128 Internal Service Funds: Combiriing Statement ofNet Position ......................................................................................... 164 Combining Statement of Revenues, Expenses and Changes in Fund Net Position ........................ 166 Combining Statement of Cash Flows ............................................................................................... 168 Fiduciary Funds: Statement of Changes in Assets and Liabilities -All Agency Funds ......................................... 172 I STATISTICAL SECTION: I Net Position by Component ............................................................................................ : ...................... 176 Changes in Net Position ......................................................................................................................... 178 Fund Balances of Governmental Funds ................................................................................................ 180 Changes in. Fund Balances of Governmental Funds ............................................................................. 182 Assessed Value of Taxable Property .................................................................................................... 184 Direct and Overlapping Property Tax Rates ......................................................................................... 186 Principal Property Taxpayers ................................................................................................................ 188 Property Tax Levies and Collections .................................................................................................... 189 Ratio of Outstanding Debt by Type ....................................................................................................... 190 Direct and Overlapping Debt ................................................................................................................ 191 Legal Debt Margin Information ............................................................................................................ 192 111 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30, 2017 I STATISTICAL SECTION (Continued): f Demo graphic an.d Economic Statistics ................................................................................................. 194 Property Value, Construction an.d Bank Deposits ................................................................................ 195 Principal Employers ............... ~ .............................................................................................................. 196 Full-time Equivalent City and Contract Government Employees by Function .................................... 198 Operating In.dicators by Function/Program ............................................................................................ 200 Capital Assets Statistics by Function/Program ..................................................................................... 202 Top 25 Sales Tax Producers ................................................................................................................. 204 Miscellaneous Statistical Data .............................................................................................................. 205 IV \ UBLIN C .C\L IF ORf\!IA T HE N EW AMERICAN BACKYARD C i ty CoundJ 925.8 33.66 50 Ci ty Ma nage•· 9 25 .833.6650 Comm unity Development 925.8 33.66 10 Eco no mic Development 925 .833.6 650 Fa inan ce/RT 925.8 33.6640 Fir e P t·eventio n 925 .833.6606 H uman Resources 925.833.66 05 Parks & C o m m unit y Servic es 925.83 3.6645 Po lice 925 .833 .6670 Publk W o rks 92 5.833 .66 30 I 00 C iv k f laza Du bli n , CA 94568 p 925 .8 33.6650 f 925.83 3 .665 l www .d u bli n.ca .gov December 19, 2017 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, 2017. 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 unmodified ("clean") opinion on the City of Dublin's financial statements for the year ended June 30, 2017. 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 Dubl1n 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 2017, the City celebrated its 35th anniversary as an incorporated city. The City provided for a permanent staffing level of approximately 95 full-time equivalent City permanent employees in the FY 2016-17 budget cycle, and budgeted for an additional 40 full-time equivalent temporary employees during the summer recreational season. The City serves an estimated population of 59,686 covering a land area of 14.91 square miles. The City's strategic location offers opportunities for employers, retail outlets, and high quality residential neighborhoods. The City operates under the Council-Manager form of government. Policy making and legislative authority are vested in the City Council, which consists of an elected Mayor, who serves 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 v 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: B_uilding Inspection; Fire; Police; and Public Works maintenance. A total of 139.95 FTE contract employees were included in the City budget in FY 2016-17. 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. New developments in the Downtown Dublin Specific Plan area, specifically in the Transit District, have provided new housing opportunities as well as new potential retail space that will support a high quality of life in Dublin. In addition, the City's new aquatics complex, The Wave, offers residents and visitors a recreation destination with pools, slides, and play structures situate din the center of the 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. Key City accomplishments during FY 2016-17 include the following: Parks & Community Services • Celebrated the 34th Annual St. Patrick's Day Festival and Shamrock5K Fun Run and Walk. • Held the 5th Annual "Splatter" event, featuring an array of multi-cultural performance venues, with an estimated crowd of 15,000. • Held Tuesday Night concerts and "First Thursdays" at the Farmers' Market at the new amphitheater situated at The Wave. • Held a free summer outdoor movie series, "Picnic Flix." • Continued the City's Youth Fee Assistance Program, which enables children from low-income families to participate in the City's recreational programs. • Partnered with a local cricket club to build the first permanent batting cages in the region to support this emerging Tri-Valley sport. • Held the 6th season of the Dublin Farmers' Market at Emerald Glen Park. vi • Opened the Dublin Camp Parks Military History Center, which houses the Camp Parks historical collection, including permanent museum-quality exhibits and rotating temporary exhibits, educational and research materials and history activities several times a year. Capital Improvement Projects (Public Works) The following major capital projects were completed during FY 2016-17: • The Wave at Emerald Glen Park This 31,000-square-foot recreation and aquatic complex opened on May 27, 2017. The facility features a natatorium (indoor pool), outdoor sports pool, splash zone with large play structure and water features, and a waterslide tower featuring six slides. • Emerald Glen Park Amphitheater This new amphitheater, located adjacent to The Wave, was completed in late May 2017. The amphitheater is used for "First Thursday" performances at the Dublin Farmers' Market, the Tuesday Night Concert Series and Splatter. • Tassajara Road Overlay As part of the annual pavement maintenance program, the project provided a rubberized asphalt concrete overlay of the entire width of Tassajara Road from the I-580 off-ramp to North Dublin Ranch Drive. The project also included new traffic signal detection, installation of new curb ramps, and pavement markings. The asphalt contained rubber from used passenger car tires, which resulted in approximately 18,000 passenger car tires being diverted from the landfill. • Dublin Library Improvements The improvement of approximately 1,500 square feet of unoccupied interior space into the Virginia S. Bennett Room, a new Center for 21st Century Skills and Learning, was completed in January 2017. The project included the removal of the interior wall, installation of doors and windows, and new furnishings. Alameda County Library will outfit the space with high-tech amenities. • Amador Plaza Road Bicycle and Pedestrian Improvement Project Dublin partnered with the City of Livermore on a pavement micro-surfacing treatment and restriping of Amador Plaza Road between Dublin Boulevard and Amador Valley Boulevard. Bike lanes were installed, and there was a modification of on-street parking in accordance with the Bicycle and Pedestrian Master Plan. Working with the City of Livermore resulted in a substantial cost saving for the City. • Village Parkway Traffic Signal Upgrade New left-tum lanes and signals were installed on Brighton Drive at Village Parkway, providing greater safety for pedestrians and bicyclists crossing Village Parkway near Dublin High School. The project was completed in August 2016. The following projects were continued in FY 2016-17 and are currently underway, either in design or construction: • Dublin Crossing Community Park In November 2016, City Council approved the master plan for the 30-acre community park within the. Dublin Crossing Specific Plan Area. The plan includes sports fields and courts, exercise stations, nature trails, woodland areas, a great lawn, and several other amenities. • Fallon Sports Park Phase II The newest phase of Fallon Sports Park 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. • Jordan Ranch Neighborhood Park This 4.9-acre park in Jordan Ranch is developer-built. vii • Sean Diamond Neighborhood Park This five-acre park is located in the Positano neighborhood. • Public Safety Complex The proposed Police Services building will include a variety of offices, an Emergency Operations Center, evidence storage, and public lobby. Administrative Departments • Graduated the 12th 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. • Implemented free Wi-Fi in Downtown Dublin. Economic Development • Marketing and Branding The New American Backyard" is the City's brand and has been incorporated into all aspects of community life, including the City's social media efforts, at events like the St. Patrick's Day Celebration and Splatter, as well as in local and national advertising. In addition to print ads, digital content has been created, including a series of videos highlighting Dublin as an attractive location for a range of businesses. In addition to formal branding efforts, the City continues to work with regional partners, including Visit Tri-Valley, Innovation Tri-Valley, and the East Bay Economic Development Alliance (EDA) to incorporate the City's brand in promotional opportunities. • Business Retention and Attraction In the last year, the City added a new Business Anniversary Breakfast Reception event, recognizing Dublin businesses which have been in operation for 20 years or more. The Commercial Fayade Grant Program was updated to increase funding for architectural assistance and to prioritize projects that activate Downtown Dublin. In addition to the new and updated programs, the City offered a variety of ways to support local business. The City created a step-by-step "How to Start a Business -Your Guide to Growing a Business in Dublin, CA" publication, which was developed in order to meet the needs of first-time small business operators. The City continues to administer the Small Business Assistance Program, which helps fund accessibility improvements, trash enclosure upgrades, and other legal obligations imposed on small businesses. One recent participating organization was an existing nonprofit, which provides services to developmentally challenged clients within the Tri-Valley area; the organization received financial assistance to complete accessibility and safety improvements. The City also entered into a new partnership with the Dublin Chamber of Commerce to provide City sponsorship of key events and Chamber services. The City continues to conduct its Business Visitation Program, which in this past year resulted in helping Carl Zeiss, a major employer in Dublin, make the decision to build a new corporate campus and consolidate its operations locally. The consolidation will result in an increase in new jobs in the community. In addition, the City participated in multiple signature events, which were produced in close cooperation with regional groups such as Innovation Tri-Valley to increase awareness of Dublin technology firms and to showcase Dublin's role as a center of technology, including the #GameChangers Award, Innovation Forum, Dream Makers and Risk Takers, and the East Bay Innovation Awards. viii Police Services In addition to continuing past programs of enforcement, including the National Drug "Take-Back Initiatives," Tobacco Compliance Operations, and Holiday Crime Suppression, Dublin Police Services has continued its practice of being very proactive in creating new programs during the past fiscal year to assist in fighting crime, including: • Residential Security Camera Registration -If a crime is committed in the vicinity of a registered camera, Dublin Police works with residents or business owners to locate any video that may help in investigations. • License Plate Readers -The Automated License Plate Recognition (ALPR) System has been used to deter criminal activity and provide investigative leads after a crime has occurred. • Exchange Zone -This new location in the Civic Center parking lot near the police department features 24-hour video surveillance, which provides a safe location for child custody transfers and the exchange of goods, such as those purchased online from strangers. Dublin Police Services is also active in the community through its Crime Prevention Division. This unit runs the Neighborhood Watch program, organizes the National Night Out event, prepares and hosts crime prevention presentations, such as the recent "Burglary Prevention" workshop, and teaches residents about law enforcement operations through a 10-week "Citizens Academy" held each year, beginning in early April. For the youth in the community, the Crime Prevention team hosts numerous summer Bicycle Rodeos and Safety Programs; a one-week summer "Youth Academy'' to teach youngsters about law enforcement; and hosts the D .A.R.E. (Drug Abuse Resistance Education) program to 5th grade classes in schools throughout Dublin. Awards and Honors In FY 2016-17 the City received numerous awards and honors for its accomplishments in various areas of community services and improvements. These include the following: • The California Association for Local Economic Development (CALED) Award of Merit • The California Association for Public Information Officials (CAPIO) Award of Excellence in Communications for Branding Campaigns • The City-County Communications & Marketing Association (3CMA) Savvy Award for Branding Graphic Design • Received the 2017 Recycled Water Customer of the Year Award by W ateReuse, California. • Named 3rd on list of Best Places to Live in California study by SmartAsset. • Named 3rd on list of America's 10 Hottest Suburban Neighborhoods (2016) by Realtor.com. • Received a Distinguished Budget Presentation Award from the Government Finance Officers Association for the FY 2016-2017 Budget. • Received an Operating Budget Excellence Award from the California Society of Municipal Finance Officers for the FY 2017-2018 Budget. • Recognition of Andrew Russell, City of Dublin Assistant Director of Public Works; Detective Alan Corpuz, Dublin Police Services; and Shu-Mei Chen, Financial Services Manager, Alameda County Fire Department, as Dublin Rotary Superstars. • Recognized by the Metropolitan Transportation Commission Regional Streets and Roads Program for achievement in pavement maintenance, with Alameda County's highest pavement condition index. • Received an "A" Grade from the American Lung Association State of Tobacco Control. • Named a "TreeCityUSA"bythe National Arbor Day Foundation. • Named one of the Top 100 Safest Cities in California by Safe Wise. IX FINANCIAL OUTLOOK Growth in the City of Dublin's property tax revenue continues to reflect a healthy and thriving community. Following a 2 % loss in overall Assessed Valuation (AV) during the recession, the City has increased total AV from $8.4 billion in FY 2011-12 to $13.7 billion in FY 2016-17, owing to real estate values that have been restored, higher sales prices, and new developments coming on line. Total AV increased by $1.1 billion (9 .1 % ) over the prior year, which was the second largest percentage growth in Alameda County, bested only by the City of Newark's 9.8% growth. The City's property tax revenues, which made up 44% of total revenues in FY 2016-17, have increased 6%, 7%, 16%, 14%, and 10% over the last five years. The City's sales tax revenue, while remaining the second largest revenue stream (24% of total budget), experienced some relative flattening as compared to the budget, coming in $648,216 (3.2%) higher than Fiscal Year 2015-16. Specifically, the Autos and Transportation sector grew only 2.4% over the prior year, adding just $155,815 to Sales Tax revenues, after three years of average annual growth of 7.8%. Moreover, the majority of the growth in Fiscal Year 2016-17 occurred in the third quarter of 2016, followed by two quarters of flat revenue, and a final quarter that reflected a loss of 7.9% ($133,241). The Building and Construction sector also grew 2.4% ($101,231) for the year, compared to 7.0% the prior year. 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 2017-18. Development-related revenue is the third largest revenue stream to the City, making up 15% of the total budget in FY 2016-17. Building permit revenue and development services revenue (planning and engineering services) increased a combined 17% over FY 2015-16, but the yearly increases since the recession have been extremely varied: since FY 2010-11, development revenue increased 52%, 18%, 7%, 3%, 1 %, and 17% in the respective years. The City anticipates a 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. While FY 2016-17 finished with a General Fund surplus of roughly $17.7 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 $1.5 million in the General Fund by FY 2022-23, potentially growing to a deficit of $4.3 million in FY 2024-25, as reflected in the most recent update to the 10-Y ear Forecast: x -~--~--~ General Fund 1 O~Year Forecast (in thousands) 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 16-17 17-18 18-19 19-20 20-21 22-22 22-23 23-24 24-25 _ Community Benefit Payment Other Revenue Charges for Services Intergovernmental Rentals & leases -Interest -Fines & Penalties Other Licenses & Permits Development Services -Development Permits Other Taxes -Sales Tax -Property Taxes -Total 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, to review the forecast numbers and ultimately produce an advisory report that includes recommendations for future consideration by the City Council. The Task Force held its first meeting in January 2017 and is scheduled to present its final report to the City Council in February 2018. FINANCIAL PLANNING AND POLICIES The City Council adopted a 10-Year Strategic Plan, which is updated every two years. Five specific strategies were identified to establish the framework and overarching policy focus for the delivery of public services to the community. The Budget document has a section containing the Strategic Plan and Goals and Objectives. Adjustments to programs presented by the City Manager in the Budget document were tied to the prioritization of elements within the Strategic Plan. The last Strategic Planning meeting was held March 7, 2015, when the City Council discussed the general assumptions used in the City's 10-Y ear 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 next Strategic Planning meeting is scheduled for February 2018. 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 xi 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 City has set aside a reserve to pay off this debt early, in FY 2018-19, rather than at its due date in FY 2025-26. 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 acc_ordance 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, 2016. A copy of the award from this entity is included in this report. This award represents the 26th consecutive year that the City's report was recognized by the GFOA. In order to be recognized, the City was required to produce an easily readable and efficiently organized report. The report must also meet the standard for generally accepted accounting principles and legal requirements. ACKNOWLEDGEMENTS The preparation of this report 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. Once again, we recognize the Mayor and City Council for their guidance and support in the City's pursuit of excellence in financial reporting. Sincerely, Christopher L. Foss City Manager Colleen Tribby Director of Administrative Services xii 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, 2016 Executive Director/CEO xiii CITY OF DUBLIN PRINCIPAL OFFICERS Fiscal Year 2016/2017 Vice Mayor Donald Biddle Councilmember Abe Gupta 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 XIV Councilmember Melissa Hernandez Councilmember Arun Goel Chris Foss Linda Smith John Bakker Colleen Tribby Caroline Soto Dennis Houghtelling Luke Sims Lori Taylor Bonnie Terra Julie Carter James Rodems Gary Huisingh rga izationa Chart FY 2016-l?AND 2017-18 > Citizens of D ublin City Council 1 I --- I City Attorney City Manager Assistant City Manager Public Works -- Parks and Community Services Human Resources --Police Services Administrative,___ Services City Clerk -- Fire Services Non- Departmental xv Economic Development Community Development ! This Page Left Intentionally Blank INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council of Dublin Dublin, California Report on Financial Statements -~------....:..:~· MAZE &ASSOCIATES 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, 2017, and the related notes to the financial statements which collectively comprise the City's basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of these financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 1 T 925.930 .0902 F 925.930.0135 e maze@mazeassociates.com w mazeassociates.com Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2017, and the respective changes in the financial position and cash flows, where applicable, thereof and the respective budgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ended in conformity with accounting principles generally accepted in the United States of America. Other Matters Required Supplemental Information Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis and other Required Supplemental Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information, although not a part of the basic fmancial 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 fmancial 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 fmancial statements that collectively comprise the City's basic financial statements as a whole. The Introductory Section, Supplemental Information, and Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis and are not required parts of the financial statements. The Supplemental Information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic fmancial statements. The information has been subjected to the auditing procedures applied in the audit of the basic fmancial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic fmancial statements or to the fmancial 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 fmancial statements and, accordingly, we do not express an opinion or provide any assurance on them. 2 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 12, 2017 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. Pleasant Hill, California November 12, 2017 3 This Page Left Intentionally Blank Management's Discussion and Analysis (MDA) June 30, 2017 As management of the City of Dublin (City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the Fiscal Year (FY) ended June 30, 2017. 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, 2017 and 2016 Governmental Activities June 30, 2017 June 30, 2016 $Change % Change Item Current and other assets 242,412,845 228,952,110 13,460,735 5.9% Notes receivable (See Note5) 15,032,783 14,614,947 417,836 2.9% OPEB asset (Note 12) 1,172,913 996,376 176,537 17.7% Capital assets 492,040,457 466,309,644 25,730,813 5.5% Total Assets 750,658,998 710,873,077 39,785,921 5.6% Deferred Outflows ofResources 3,915,819 1,997,928 1,917,891 95.99% Current liabilities 27,001,634 23,586,470 3,415,164 14.5% N oncurrent liabilities 24,262,586 17,787,418 6,475,168 36.4% Total Liabilities 51,264,220 41,373,888 9,890,332 23.9% Deferred Inflows ofResources 977,509 1,216,310 (238,801) -19.6% Net investment in capital assets 487,123,214 460,963,292 26,159,922 5.7% Restricted 94,745,655 97,592,438 (2,846,783) -2.9% Unrestricted 120,464,219 111,725,077 8,739,142 7.8% (See Note 8 to Financials for Classification) Total Net Assets 702,333,088 670,280,807 32,052,281 4.8% As illustrated in the above table, the City's net position increased by $32.1 million (4.8%) during FY 2016-17. This is primarily due to the following: • Total assets increased $39.8 million, due primarily to increases in cash and investments which is a part of current assets, and in capital assets. Cash and investments in the Public Facility Fees and Traffic Impact Fee funds increased by $1.4 million and $11.9 million, respectiyely. Capital assets increased by $25.7 million (5.5%) due to significant progress on capital improvement projects, including $14.7 million spent on the Emerald Glen Aquatics Complex (EGRAC), $9.7 million on Fallon Sports Park Phase II (both of which are projected to be complete in early 2018), and $6.8 million on Dougherty Road -Sierra Lane Street Improvement Project. Additions to capital assets were partially offset by $10. 7 million increase in asset depreciation. 6 • Total liabilities increased in FY 2016-17 with a net difference of $9.9 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 $2.5 million due primarily to activity related to construction projects. The increase in Noncurrent liabilities reflects the City's new long-term debt of $5.4 million pertaining to the land acquisition for the Dublin Crossing project (see Note 7.C). • The City's $487.l million in net investment in capital assets represents 69.3% of 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 2016-17 the City's restricted assets decreased by $2.8 million. The Affordable Housing Fund balance increased $1.7 million as both large and small development payments were received throughout the year. The net decrease by $4. 7 million in restricted assets relates to changes to impact fees rates in FY 2016-17, specifically in the Public Facility Fees Fund, which resulted in a decrease of $10.1 million in fund balance, while Traffic Impact Fees Fund showed increase of $5.4 million. These funds are restricted to specific capital improvement use. Approximately $118.6 million of the City's total assets (an increase of $12.0 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 ofNet Position (Table I). TABLE 2: SUMMARY OF CHANGES IN NET POSITION June 30, 2017 and 2016 Revenues Program Revenues Charges For Services Operating Contributions & Grants Capital Grants & Contributions Total Program Revenue General Revenues Property Taxes Special Assessments Taxes Sales Taxes Other Taxes Investment income, rn1restricted IntergovernmentaL mirestricted Other general revenues Total General Revenue Total Revenues Expenses Governmental activities: General government Police Fire Public works Park and conumurity services Economic development Comnumity development Total Governmental Activites Increase In Net Position Net Position -Beginning ofYear Net Position -End ofYear JUlle 30, 2017 June 30, 2016 22,823,852 26,051,835 8,008,289 1,629,137 21,133,748 38,433,119 51,965,889 66,114,091 36,964,785 33,598,601 1,416,721 1,359,212 21,186,333 22,070,647 6,834,545 6,606,016 (710,595) 2,937,999 1,626,798 1,825,410 1,745,021 1,819,260 69,063,608 70,217,145 121,029,497 136,331,236 13,549,013 19,280,680 17,080,942 18,316,420 13,687,195 14,725,476 18,351,543 17,079,583 11,193,876 11,428,884 864,697 555,564 14,249,950 11,410,946 88,977,216 92,797,553 32,052,281 43,533,683 670,280,807 626,747,124 702,333,088 670,280,807 8 $Change % Change (3,227,983) -12.4% 6,379,152 391.6% (17,299,371) -45.0% (14,148,202) -21.4% 3,366,184 10.0% 57,509 4.2% (884,314) -4.0% 228,529 3.5% (3,648,594) -124.2% (198,612) -10.9% (74,239) -4.1% (1,153,537) -1.6% (15,301, 739) -11.2% (5, 731,667) ~29.7% (1,235,478) -6.7% (1,038,281) -7.1% 1,271,960 7.4% (235,008) -2.1% 309,133 55.6% 2,839,004 24.9% {3,820,337) -4.1% (11,481,402) -26.4% 43,533,683 6.9% 32,052,281 4.8% As shown in Table 2, revenues from all sources totaled $121.0 million and expenses for all City programs totaled $89.0 million in FY 2016-17. The City's net position increased $32.1 million, compared to $43.5 million in the prior year: that change is due predominantly to decreased revenue from Capital Grants & Contributions, unrealized loss from investments, offset with increased in Operating Contribution & Grants and Property Taxes. Revenues Overall revenues decreased $15 .3 million, or 11.2%, in FY 2016-17 compared to the prior year. Changes included: • Charges for Services decreased a net $3 .2 million due mainly to the effect of the City changing its accounting policy related to loans receivable last year. As the result of the change, there was a one-time revenue adjustment of $4.9 million in Affordable Housing fund for FY 2015-16. However, overall revenue in FY 2016-17 also reflects increases in residential garbage charges, waste management admin fees, and cultural arts and aquatics programs. • Operating Contributions & Grants increased $6.4 million due primarily to Measure B & Measure BB Grants received in FY 2016-17. These grants were used to fund improvements on bike and pedestrian projects. • Capital Grants and Contributions decreased $17.3 million due to a one-time large revenues of Community benefit payments, Public facility fees, Traffic impact fees, Fire impact fees and Public art in-lieu fees that were received last year that did not reoccur in the current year. • Property Taxes increased $3 .4 million, resulting from an increase to overall assessed property valuations, and the incorporation of continued recapture of previous values lost during the recession. • Investment income (unrestricted) decreased $3.6 million, due primarily to the booking of an unrealized loss on investment for FY 2016-17. Expenses Total expenses decreased $3.8 million, or 4.1 % in FY 2016-17 compared to the prior year. The following factors contributed to the overall decrease: • General Government expenses decreased by a net $5.7 million: the City made a large one-time prepayment of the City's share of Alameda County Fire's OPEB liability ($9.2 million) in the prior year, while contracted services for development-related activities increased over the prior year. • Public Safety (Police and Fire) decreased by $2.3 million due to the $1.0 million reversal of a prior period accrual for police dispatch expenditures that were not realized, as well as a one-time adjustment for retiree health obligations of the Alameda County Fire Department. • Public Works expenses increased by $4.5 million predominantly due to capital assets depreciation as well as increase in building maintenance contract and project engineering and inspection consultant during the fiscal year. • Parks and Community Services expenses decreased a net $3 .4 million as the result of constructions costs for the new Camp Parks Military History Center incurred in the prior year, as well as the acquisition of new cloud-based software for recreation class registration in the prior year that did not reoccur in FY 2016-17. 9 • Community Development expenses increased $2.8 million due primarily to the community parkland acquisition loan for the Dublin Crossing project, as well as a capital asset adjustment during the fiscal year. " Revenues and Expenses by Category The following chart presents the Government-Wide FY 2016-17 revenues in a pie chart format (in thousands). Approximately 86% of the total revenue is from four sources: 1) Property taxes, 31 %; 2) Charges for services, 19%; 3) Capital grants & contributions, 18%; and 4) Sales tax, 18%. This is relatively consistent with the prior year. Investment Income Intergovernmental Other Taxes ($711), -lo/c:t $1,627, 1% $6,835, 6% ~ Other General Revenues . $1,745, 1% Sales Taxes $21,186, 18% ______ J Special Assessments $1,417, 1 % Property Taxes $36,965, 31 % 10 Charges for Services $22,824, 19% Operating Grants & Contributions $8,008, 7% Capital Grants & Contributions $21,134, 18% c I ·--' I . r - I ::...i_--~--- Government-Wide expenses in FY 2016-17 are shown below in the same pie chart format (in thousands). Of the $89 million in total expenses, Police and Public Works are the largest program costs, making up a combined 40% of the total. Community Development, Fire, Parks & General Government follow at 16%, 15%, and 15%, respectively. Community Development $14,250, 16% Parks & Community Services $11,194, 13% Public Works $18,352, 21% FUND FINANCIAL STATEMENTS Economic Development $865, 1% ---=---.I General Government $13,550, 15% Fire Services $13,687, 15% Police ___ $17,081, 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 Govermnent-wide financial statements, Govermnental 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-te1m 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 I . I The City maintains sixty-three (63) 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 fifty-three (53) 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, the internal service fund (ISF), which is 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. ISF' s 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 ISF' s 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 new ISF 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 ISF's are combined into a single, aggregated presentation in the Proprietary fund financial statements. Individual fund data for the ISF's is provided in the form of combining statements elsewhere in this report. Fiduciary funds: The Fiduciary fund section consists of the City's 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, 2017, the City's governmental funds reported combined ending fund balances of $217.0 million, an increase of $10.1 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, 2017 and 2016 June 30, 2017 June 30, 2016 $Change % Change General Fund 122,415,662 109,184,026 13,231,636 12.1% Affordable Housing Fund 27,193,329 25,526,669 1,666,660 6.5% Capital Improvement Funds 54,676,919 60,282,217 ( 5,605,298) -9.3% Other Governmental Funds 12,624,728 11,783,552 841,176 7.1% Total Governmental Funds 216,910,638 206, 776,464 10,134,174 4.9% GENERAL FUND The General Fund is the chief operating fund of the City. Approximately $0.2 million of the fund balance is non-spendable in the form of pre-paid expenses and the PERS Side Fund. At the end of FY 2016-17, the unassigned fund balance of the General Fund was $32.3 million, representing approximately five months of budgeted FY 2017-18 expenditures, with total fund balance at $122.4 million. The unassigned amount reflects an amount calculated for the unrealized loss 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 2016-17, General Fund revenues exceeded its expenditures by $18. 8 million, before transfers out. Compared to the prior year, General Fund revenues came in $1.0 million higher, from $82.9 million in FY 2015-16 to $83 .9 million in FY 2016-17. This is due mainly to gains in Property Taxes and Sales Taxes, which made up 44.0% and 23.8%, respectively, of all General Fund revenues in FY 2016-17. Expenditures in General Fund departments totaled $65 .2 million in FY 2016-17, staying nearly $7 .5 million under the final budget (not including transfers out), and coming in $3.8 million lower than actual expenditures in the prior year. The decrease was due to a one-time adjustment of $1.1 million decrease to accrued expenditures and lower contracted service costs approximately $2.2 million from the prior year. Also in FY 2016-17, the General Fund contributed $5.5 million towards capital project expenditures, an increase of nearly $3 .1 million over the prior year. The majority of this ($4.8 million) was for funding of the construction of the EGRAC and Fallon Sports Park Phase II. 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 $27.2 million at June 30, 2017, an increase of nearly $1. 7 million over the prior year. The change primarily reflects increase in the developer fees received during the fiscal year. 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, 2017 (unlike in the prior year), one of these funds which is Street Capital Project carried a balance that will be eliminated in the next few years upon completion of the project. 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 2016-17 was $10.4 million, a decrease of $4.6 million from the prior year, which was due primarily to some large one-time fee payments that were received in the prior year. This revenue is collected when developers process Final Maps, resulting in payments of park land dedication fees. Due to variations in project construction and acquisition timelines, expenditure patterns will fluctuate. Expenses in FY 2016-17 totaled $5.6 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 2016-17 was $0.2 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. In prior years, 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 2016-17 the amount owed to the General Fund of $0.08 million was paid in full. 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 2016-17 totaled $6.8 million (including interest earned), approximately $2. 7 million higher than was collected in the prior year. The City expended approximately $0.6 million to reduce outstanding obligations. In addition, approximately $0.8 million was transferred to the Streets Capital Project Fund for future project design expenses. This resulted in a net increase of fund balance by $5.4 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 $0.8 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, 2017 and 2016 June 30, 2017 June 30, 2016 $Change % Change Function Public Safety 1,002,352 894,058 108,294 12.1% Transportation 3,910,981 5,135,829 (1,224,848) -23.8% Environmental 1,322,843 205,738 1,117,105 543.0% Parks, Culture, Arts 4,583,254 3,898,546 684,708 17.6% Health & Welfare (43,274) 191,624 (234,898) -122.6% Maintenance Districts 1,848,572 1,457,757 390,815 26.8% TOTAL FUND BALANCE 12,624,728 11,783,552 841,176 7.1% 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 a decrease in fund balance largely due to capital expenditures for streets and roads projects. The increase in Environmental balances is primarily due to distribution of grant 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, 2017 Budget Amounts Actual Variance from Original Final Amount Final Budget REVENUE Taxes 61,313,321 62,619,197 63,800,708 1,181,511 Intergovernmental 198,618 198,618 258,509 59,891 Licenses and permits 4,533,124 6,033,124 7,770,259 1,737,135 Charges for services 9,166,381 10,143,384 10,174,420 31,036 Use of money & property 1,499,368 1,874,368 244,566 (1,629,802) Fines and forfeitures 109,932 109,932 94,205 (15,727) Other revenue 356,344 1,048,029 1,602,961 554,932 Total Revenue 77,177,088 82,026,652 83,945,628 1,918,976 EXPENDITURE General government 8,378,223 9,169,315 7,957,029 1,212,286 Police 19,210,629 19,337,540 17,073,275 2,264,265 Fire 13,284,040 13,351,346 13,092,409 258,937 Public W ork:s 12,729,151 12,647,477 11,620,147 1,027,330 Parks and Community Services 9,420,361 9,892,023 8,812,595 1,079,428 Economic Development 1,039,350 1,317,193 891,602 425,591 Community develoEment 6,012,962 6,976,496 5,731,121 1,245,375 Total Expenditure 70,074,716 72,691,390 65,178,178 7,513,212 OTHER FINANCING SOURCES (USES) Transfer in 6,600 6,600 Transfer out (759,510) (9,074,188) (5,542,414) 3,531,774 Total other :financing sources (uses) (759,510) (9,074,188) (5,535,814) 3,538,374 NET CHANGE IN FUND BALANCE 6,342,862 261,074 13,231,636 12,970,562 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 $1.9 million as of June 30, 2017, due mainly to the following factors: • Taxes: $1.2 million higher than budget. Property tax came in $0.9 million higher than budget, as the result of overall growth property development in the City. Sales tax came in $0.7 million lower, after satisfying sales tax sharing arrangements. Property transfer tax came in $0.5 million higher consistent with the prior year. High hotel occupancy and increased room rates brought Transient occupancy tax revenue in $0.2 million over budget; and Garbage and Cable franchise fee revenue came in $0.3 million above budget, due both to rate increases and expanded services. • Licenses and Permits: $1.7 million higher than budget. Building Permits came in $1.7 million higher as the result of development activity during FY 2016-17. 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 .2 million) to ensure that there are future funds to cover expenditures when development activity slows. • Use of Money & Property: $1.6 million lower than budget. While interest revenue came in $0.4 million higher than budget, reflecting the performance of the City's investments, the City recognized an unrealized loss on investment of $2.1 million to present the fair market value of investments at the end of FY 2016-17. • Other Revenue: $0.6 million higher than budget. A donation of $0.3 million was received for the Dublin Historic Park. The City also received a number of smaller payments that were related to existing development agreements. General Fund expenditures came in $7 .5 million lower than the final budget, reflecting overall savings across departments. The following is a discussion of the changes. • General Government: $1.2 million lower than budget. Contract services costs were $0.6 million lower than budget, for a variety of contracts that were opened via the purchase order process, with the work extending to the current fiscal year. Insurance premiums came in $0.1 million lower than budget, as well as unused salary contingencies (typically used for merit increases) resulting in approximately $0.2 million in budget savings. ·• Police Services: $2.3 million lower than budget. A one-time adjustment of $1.1 million decrease to accrued expenditures resulted in a budget saving. Unused salary contingencies as well as savings in fuel and vehicle maintenance costs resulted in approximately $0.4 million in budget savings. • Public Works: $1.0 million lower than budget. Savings in utilities, mostly portable water and unused salary contingencies, resulted a budget saving of $0.5 million. Savings in utilities reflects the City's movement to recycled water for parks maintenance. • Parks and Community Services: $1.1 million lower than budget. Some of the budget savings resulted from City Staff vacancies throughout part of the year, and services and supplies also came in lower than budget across departments. • Community Development: $1.2 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 development activities and with the timelines for projects, and are routinely carried over to the next budget year until the projects are closed. 17 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City's investment in capital assets for its governmental activities, as of June 30, 2017, amount to $487 million (net of accumulated depreciation). These capital assets include 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 2016-17, the City's investment in capital assets increased by approximately $26 million (5.5%), due to additions to construction in progress. TABLE 6: SUMMARY OF INVESTMENT IN CAPITAL ASSETS June 30, 2017 and 2016 Governmental Activities June 30, 2017 June 30, 2016 $Change Land 171,301,925 171,301,925 Streets Right of Way 35,908,389 35,425,288 483,101 Construction in Progress 84,412,375 50,777,385 33,634,990 Infrastructure 388,463,894 386,792,065 1,671,829 Buildings and Improvements 76,066,000 75,790,206 275,794 Machinery and Equipment 15,398,724 15,002,735 395,990 Subtotal 771,551,307 735,089,604 36,461,704 Less: Accumulated Depreciation (279,510,850) (268, 779 ,960) (10,730,890) Total Net of Depreciation 492,040,457 466,309,644 25,730,815 % Change 0.0% 1.4% 66.2% 0.4% 0.4% 2.6% 5.0% 4.0% 5.5% 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 2016-17 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, 2017 PROJECT NAME ACTUAL STATUS FY 2016/17 GENERAL IMPROVEMENTS 1,922,766 Police Services Building 1,070,902 In Progress IT Infrastructure Improvement 643,142 In Progress Maintenance Yard Facility Improvements 139,069 In Progress Civic Center Modification Design &Construction 69,653 In Progress COMMUNITY IMPROVEMENTS 3,854 Sidewalk Safety Repair 3,854 In Progress PARKS 26,113,810 Emerald Glen Park Recreation & Aquatic Complex 14,716,570 In Progress Dublin Crossing Community Park 37,390 In Progress Sean Diamond Park 703,580 In Progress Library Expansion -Center for 21st Cnty 238,585 Complete Shannon Center Parking Lot Improvements 19,730 In Progress Fallon Sports Park Phase II 9,740,193 In Progress Public Art -Emerald Glen Recreation 184,772 In Progress Dublin Sports Ground Renovation 320,029 In Progress Jordan Ranch Neighborhood Park 91,380 In Progress Public Art -Fallon Sports Park 61,582 In Progress STREETS 10,516,676 Tassajara Road Realignment and Design 107,733 In Progress Annual Street Resurfacing 119,540 In Progress Dublin Blvd Extension 207,600 In Progress San Ramon Road Arterial Management 19,752 In Progress Village Pkwy _Brighton Traffic Signal 176,163 Complete St. Patrick Way-Regional St to Golden Gate Dr. 4,303 Complete City Wide Bicycle & Pedestrian Improvements 11,691 In Progress City Wide Storm Drain Condition 2,054 In Progress Traffic Sign Inventory and Safety Review 52,419 In Progress City Wide Signal Communitcation Upgrade 12,078 In Progress City Irrigation Improvements 209 In Progress Amador Plaza Road Bicycle and Pedestrian 155,861 In Progress Dougherty Rd. Improve -Sierra Ln 6,867,624 In Progress Dublin Blvd -Sierra Ct to Dublin 605,848 In Progress Storm Drain Bypass San Ramon Rd 133,888 Complete Storm Drain Trash Capture Project 67,931 In Progress Annual St Overlay Prog 1,963,000 Complete Dublin Ranch St Lght Pole Paint 8,984 Complete TOTAL 38,557,105 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. In FY 2013-14, the City also entered into a development agreement with Dublin Crossing Venture, LLC (Developer) for the acquisition and development of a parcel of land. The City exercised its option to enter into an interest-free loan of $5.4 million with the developer to finance the land acquisition. The loan occurred in FY 2016-17 and shall be fully repaid in July 2021. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The City is currently preparing its budget for FY 2018-19, which is the first year in a two-year budget cycle. Although property tax and development revenues have shown significant gains in the last two years, Sales Tax is showing signs of flattening, and 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 IO-Year Forecast projects an operating deficit of $1.5 million by FY 2022-23, which could grow to $4.3 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, 2017 GOVERNMENT-WIDE FINANCIAL STATEMENTS STATEMENT OF NET POSITION AND STATE:MENT OF ACTIVITIES 21 CITY OF DUBLIN STATEMENT OF NET POSITION JUNE 30, 2017 ASSETS Current assets: Cash and investments (Note 3) Accounts receivable Accrued interest receivable Prepaids Total current assets Noncurrent assets: Notes receivable (Note 5) Net OPEB asset -City of Dublin (Note 1 lA) Capital assets (non-depreciable) (Note 6): Land Streets right of way Construction in progress Capital assets (depreciable) (Note 6): hrfrastructure 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 1 G) Long-term debt (Note 7): Due in one year Total current liabilities Noncurrent liabilities: Claims payables (Note 12) Compensated absence (Note 1 G) Net OPEB obligation -Dublin Regional Fire Authority (Note l IB) Net OPEB obligation -Alameda County Fire Department (Note 14) Net pension liability-Due in more than one year (Note 10) Long-term debt (Note 7): Due in more than one year Total noncurrent liabilities Total Liabilities 22 Governmental Activities $233,658,380 7,853,624 676,732 224,109 242,412,845 15,032,783 1,172,913 171,301,925 35,908,389 84,412,375 388,463,894 76,066,000 15,398,724 (279 ,510, 850) 492,040,457 508,246,153 750,658,998 3,915,819 20,992,882 23,494 2,219,999 36,729 288,410 922,845 698,765 1,818,510 27,001,634 22,037 299,470 347,335 2,060,000 12,984,969 8,548,775 24,262,586 51,264,220 CITY OF DUBLIN ·STATEMENT OF NET POSITION (Continued) JUNE 30, 2017 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 23 977,509 487,123,214 1,002,354 59,022,206 6,371,123 27,861,327 488,645 94,745,655 120,464,219 $702,333,088 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 End of year CITY OF DUBLIN STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2017 Charges for Expenses Services $13,549,013 $5,402,925 17,080,942 322,231 13,687,195 1,426,973 18,351,543 3,386,621 11,193,876 2,950,625 864,697 14,249,950 9,334,477 $88,977,216 $22,823,852 See accompanying notes to :financial statements 24 ProB!am Revenues Operating Capital Grants and Contributions Contributions and Grants $7,522,592 $21,132,118 4,550 120,013 1,000 267,602 630 93,532 $8,008,289 $21,133,748 Total Program Revenues $34,057,635 326,781 1,426,973 3,507,634 3,218,227 630 9,428,009 $51,965,889 Net (Expense) Revenue and Changes in Net Position Governmental Activities $20,508,622 (16,754,161) (12,260,222) (14,843,909) (7,975,649) (864,067) (4,821,941) (37,011,327) 36,964,785 1,416,721 21,186,333 6,834,545 66,402,384 1,626,798 1,745,021 (710,595) 69,063,608 32,052,281 670,280,807 $702,333,088 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 2016-2017. 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) 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) 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, 2017 Special Revenue Fund Affordable General Housing $112, 768,301 $12,189,214 6,205,961 500 676,732 13,733,147 15,032,783 159,616 14,742 $133,558,499 $27,222,497 $7,732,782 $17,360 23,494 2,152,144 11,808 288,410 922,845 11,119,675 29,168 23,162 23,162 198,878 1,762,000 27,193,329 36,213,714 50,126,807 34,114,263 122,415,662 27,193,329 $133,558,499 $27,222,497 General Improvements Projects $39,118 $39,118 $39,118 39,118 $39,118 See accompanying notes to financial statements 28 Capital Projects Funds Community Improvements Parks Projects Projects $3,317 $2,923,959 $3,317 $2,923,959 $2,901,491 $3,317 22,468 3,317 2,923,959 $3,317 $2,923,959 Streets Projects $1,376,741 $1,376,741 $1,616,476 10,944 1,627,420 (250,679) (250,679) $1,376,741 Public Facilities Impact Fees $27,589,463 $27,589,463 $487,258 11,047,500 11,534,758 16,054,705 16,054,705 $27,589,463 Capital Projects Funds Fire Impact Fees $136,474 $136,474 $54,795 54,795 81,679 81,679 $136,474 Traffic Impact Fees $32,551,847 252,894 $32,804,741 $7,612,463 7,612,463 25,192,278 25,192,278 $32,804,741 29 Dublin Crossing Contribution $13,624,505 $13,624,505 $25,569 25,569 13,598,936 13,598,936 $13,624,505 Other Governmental Funds $14,293,225 1,385,773 $15,678,998 $466,426 30,478 2,557,366 3,054,270 14,246,431 (1,621,703) 12,624,728 $15,678,998 Total Governmental Funds $217,496,164 7,845,128 676,732 13,733,147 15,032,783 159,616 14,742 $254,958,312 $20,928, 169 23,494 2,219,999 36,729 288,410 922,845 13,604,866 38,024,512 23,162 23,162 198,878 98,129,358 36,213,714 50,126,807 32,241,881 216,910,638 $254,95 8,312 CITY OF DUBLIN Reconciliation of the GOVERNMENTAL FUNDS --BALANCE SHEET with the STATEMENT OF NET POSITION JUNE 30, 2017 Total fund balances reported on the governmental funds balance sheet Amounts reported for Governmental Activities in the Statement ofN et 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 Governm~ntal 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 Accounts receivable Prep aids Capital assets Accounts payable and accruals Interfund balance Capital lease ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES $16,162,216 $8,496 209,367 46,018,664 (64,713) (287,897) (4,917,243) 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 of resources Net OPEB asset -City ofDublin Net OPEB obligation -Dublin Regional Fire Authority Net OPEB obligation-Alameda County Fire Department Compensated absences Loan payable Non-current portion of general liability claims NET POSITION OF GOVERNMENTAL ACTNITIES See accompanying notes to financial statements 30 (10,046,659) 1,172,913 (347,335) (2,060,000) (998,235) (5,450,042) (22,037) $216,910,638 446,021,793 57,128,890 23,162' (17,751,395) $702,333,088 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, 2017 Special Revenue Fund CaEital Projects Funds General Community Affordable Improvements Improvements Parks General Housing Projects Projects Projects REVENUES Property taxes $36,964,784 Sales tax 20,001,379 Other taxes 6,834,545 Intergovernmental 258,509 Licenses and permits 7,770,259 Charges for service 10,174,420 $38,574 Interest (874,600) 125,923 Use of property 1,119,166 420,503 Fines and forfeitures 94,205 Developer fees 1,367,445 Other revenue 1,602,961 Special assessments Total Revenues 83,945,628 1,952,445 EXPENDITURES Current: General Government 7,957,029 11,804 Police 17,073,275 Fire 13,092,409 Public works 11,620,147 Park and community services 8,812,595 Economic development 891,602 Community development 5,731,121 273,981 Capital outlay: General improvements $1,922,766 Community improvements $3,854 Parks $26,113,810 Streets Total Expenditures 65,178,178 285,785 1,922,766 3,854 26,113,810 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 18,767,450 1,666,660 (1,922, 766) (3,854) (26,113,810) OTHER FINANCING SOURCES (USES) Proceeds from loan payable Transfers in (Note 4A) 6,600 1,922,766 3,854 26,113,810 Transfers (out) (Note 4A) {5,542,4141 Total Other Financing Sources (Uses) {5,535,8141 1,922,766 3,854 26,113,810 NET CHANGE IN FUND BALANCES 13,231,636 1,666,660 BEGINNING FUND BALANCES (DEFICIT) 109,184,026 25,526,669 ENDING FUND BALANCES (DEFICIT) $122,415,662 $27,193,329 See accompanying notes to financial 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 $36,964, 784 $1,184,953 21,186,332 6,834,545 9,094,352 9,352,861 7,770,259 3,972,774 14,185,768 $346,476 $267,057 $152,528 151,408 168,792 1,539,669 166,015 260,220 10,449,460 $167,349 6,498,584 971,262 19,454,100 99,290 22,629 1,724,880 1,416,721 1,416,721 10,795,936 167,349 6,765,641 251,818 16,980,114 120,858,931 4,997 554,118 3,893,967 12,421,915 110,578 17,183,853 349,830 13,442,239 70,203 1,743,633 13,433,983 40,376 81,747 8,934,718 891,602 5,560,701 86,932 11,652,735 1,922,766 3,854 26,113,810 $10,516,675 10,516,675 10,516,675 5,601,077 4,997 624,321 6,266,687 116,518,150 (10,516,675) 5,194,859 162,352 6,141,320 251,818 10,713,427 4,340,781 5,450,042 5,450,042 10,265,996 38,313,026 (20,753,1652 {756,4112 {1,045,434} {9,872,251} (37,969,675) 10,265,996 (15,303,1232 {756,4112 {l,045,434} {9,872,2512 5,793,393 (250,679) (10,108,264) 162,352 5,384,909 (793,616) 841,176 10,134,174 26,162,969 {80,6732 19,807,369 14,392,552 11,783,552 206,776,464 ($250,679) $16,054,705 $81,679 $25,192,278 $13,598,936 $12,624,728 $216,910,638 33 CITY OF DUBLIN Reconciliation of the NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS with the STATEMENT OF ACTMTIES FOR THE YEAR ENDED JUNE 30, 2017 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 Depreciation expense is deducted from the fund balance. The amount excludes the depreciation of $2,602,801 for Internal Service Funds LONG-TERM DEBT PROCEEDS AND PAYMENTS Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Proceeds from capital lease are deducted from fund balance 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 ALLOCATION OF INTERNAL SERVICE FUND ACTMTY 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 Position -All Internal Service Funds CHANGE IN NET POSITIONS OF GOVERNMENTAL ACTIVITIES See accompanying notes to financial statements 34 $10, 134, 174 35,766,612 (8,189,475) (5,450,042) (9,526) 14,356 (677,688) 176,537 (20,754) 308,087 $32,052,281 CITY OF DUBLIN GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 Budgeted Amounts Original Final REVENUES Property taxes $35,182,061 $36,087,937 Sales tax 20,666,260 20,666,260 Other taxes 5,465,000 5,865,000 Intergovernmental 198,618 198,618 Licenses and permits 4,533,124 6,033,124 Charges for services 9,166,381 10,143,384 Interest 465,880 840,880 Use of property 1,033,488 1,033,488 Fines and forfeitures 109,932 109,932 Other revenue 356,344 1,048,029 Total Revenues 77,177,088 82,026,652 EXPENDITURES Current: General government 8,378,223 9,169,315 Police 19,210,629 19,337,540 Fire 13,284,040 13,351,346 Public works 12,729,151 12,647,477 Park and community services 9,420,361 9,892,023 Economic development 1,039,350 1,317,193 Community development 6,012,962 6,976,496 Total Expenditures 70,074,716 72,691,390 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 7,102,372 9,335,262 OTHER FINANCING SOURCES (USES) Transfers in (Note 4A) Transfers (out) (Note 4A) (759,510) (9,074,188) Total Other Financing Sources (Uses) (759,510) (9,074,188) NET CHANGE IN FUND BALANCE $6,342,862 $261,074 BEGINNING FUND BALANCE ENDING FUND BALANCE See accompanying notes to financial statements 35 Actual Amounts $36,964,784 20,001,379 6,834,545 258,509 7,770,259 10,174,420 (874,600) 1,119,166 94,205 1,602,961 83,945,628 7,957,029 17,073,275 13,092,409 11,620,147 8,812,595 891,602 5,731,121 65,178,178 18,767,450 6,600 (5,542,414) (5,535,814) 13,231,636 109,184,026 $122,415,662 Variance with Final Budget Positive (Negative) $876,847 (664,881) 969,545 59,891 1,737,135 31,036 (1,715,480) 85,678 (15,727) 554,932 1,918,976 1,212,286 2,264,265 258,937 1,027,330 1,079,428 425,591 1,245,375 7,513,212 9,432,188 6,600 3,531,774 3,538,374 $12,970,562 CITY OF DUBLIN AFFORDABLE HOUSING SPECIAL REVENUE FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES JN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 Budgeted Amounts Original Final Actual Amounts REVENUES: Interest Loan repayment Charges for services Developer fees 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 ENDING FUND BALANCE $47,840 $47,840 30,586 30,586 815,096 815,096 893,522 893,522 80,436 80,436 584,392 1,497,125 664,828 1,577,561 228,694 (684,039) 6,600 6,600 6,600 6,600 $235,294 ($677,439~ See accompanying notes to financial statements 36 $125,923 420,503 38,574 1,367,445 1,952,445 11,804 273,981 285,785 1,666,660 1,666,660 25,526,669 $27,193,329 Variance with Final Budget Positive (Negative) $78,083 420,503 7,988 552,349 1,058,923 68,632 1,223,144 1,291,776 2,350,699 (6,600) (6,600) $2,344,099 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) Accounts receivable Prepaids 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, 2017 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 $16,162,216 8,496 209,367 16,380,079 10,774,792 4,084,187 63,094,195 6,762,444 (38,696,954) 46,018,664 62,398,743 64,713 128,281 455,999 648,993 4,461,244 159,616 5,269,853 41,101,421 16,027,469 $57,128,890 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2017 OPERATJNG REVENUES Charges for services Interest Other revenue Total Operating Revenues OPERATJNG EXPENSES Supplies and services OPEB expenses Depreciation Interest and fiscal charges Total Operating Expenses Operating Loss NONOPERATJNG REVENUES (EXPENSES) Interest income Gain (loss) from sales of property Total Nonoperating Revenues Loss Before Transfers Transfer in (Note 4A) Transfer out (Note 4A) Change in net position Net Position-Beginning of year Net Position-Ending _o~year See accompanying notes to financial statements 39 Governmental Activities- Intemal Service Funds $5,656,655 913 661,466 6,319,034 898,826 2,184,548 2,602,801 136,867 5,823,042 495,992 169,653 (14,207) 155,446 651,438 300,000 (643,351) 308,087 56,820,803 $57,128,890 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2017 CASH FLOWS FROM OPERATING ACTMTIES Receipts from other funds Payments to suppliers and service providers Interest Other revenues Net cash flows from operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTMTIES Payments from other funds Payments to other funds Cash Flows from Noncapital Financing Activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTMTIES Interest paid on capital lease Capital lease repayment Purchase of capital assets Cash Flows from Capital and Related Financing Activities CASH FLOWS FROM INVESTING ACTMTIES Interest received Cash Flows from Investing Activities Net Cash Flows Cash and investments at beginning of year Cash and investments at end of year Reconciliation of operating 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 Prep aids Accounts payable and accruals Net cash flows from operating activities See accompanying notes to financial statements 40 Governmental Activities- Intemal Service Funds $5,648,159 (3,399,983) 913 661,466 2,910,555 428,281 (1,063,612) (635,331) (136,867) (429,109) (770,684) (1,336,660) 169,653 169,653 1,108,217 15,053,999 $16,162,216 $495,992 2,602,801 136,867 (8,496) (43,954) (272,655) $2,910,555 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, 2017 ASSETS Cash and investments (Note 3) Accounts receivable Total Assets LIABILITIES Accounts payable Due to trustee Due to bondholders Total Liabilities See accompanying notes to financial statements 42 Agency Fund $6,966,065 10,623 $6,976,688 $82,023 6,885,980 8,685 $6,976,688 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 1 -SUMlVIARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below: A. Reporting Entity The City is a residential community with a significant regional commercial base, located in the TriV alley 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, 2017 was 59,686. 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 #153 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, 2017, the City's staff was comprised of 84 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 139.95 contract employees provide a variety of municipal services from City facilities. As of June 30, 2017, the City had approximately 221 temporary and seasonal personnel that were on active payroll status. B. Basis of Presentation The City's Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A. These Standards require that the financial statements described below be presented. Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City). These statements include the financial activities of the overall City government, except for fiduciary activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. The Statement of Activities pre_sents 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, 2017 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 fmancial 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 finaneial 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, 2017 I NOTE 1 -SUl\'.IMARY 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 ~d 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 of results of operations. The Fallon Village, Schaefer Ranch, Fallon Village Annex/Jordan Ranch, and Fallon Crossing Geological Hazard Abatement Districts (GHAD) are Agency Funds. Each fiscal year, the District Engineer prepares an Engineer's Report which includes the budget for the GHADs for that year. The annual budget consists of regular site monitoring, annual inspections, contract services for annual mitigation and repairs, and administrative costs. The funds collected through special assessment are placed into a dedicated reserve fund. The reserve fund is set aside to be used to mitigate and repair large, geologic hazards, such as landsides in the respective Subdivisions. 45 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 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 fo! 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, 2017 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 IO 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 fmancial 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, 2017: Compensated General Leave Leave Total Beginning Balance $968,807 $19,902 $988,709 Additions 984,779 20,230 1,005,009 Payments (971,669) (23,814) (995,483) Ending Balance $981,917 $16,318 $998,235 Current Portion $687,342 $11,423 $698,765 47 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I 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 Capital Assets Contributed capital assets are valued at their estimated fair market value on the date contributed. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. J. 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. K. NewFunds In fiscal year 2016-2017, the City created the following new fund: The Measure BB Grants -Established to account for Alameda County Transportation Commission (ACTC) discretionary funding (versus direct funding) from 2014 voter-approved increase in sales tax used for improvements on bike and pedestrian projects." L. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position or balance sheet report is a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period( s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position or balance sheet report is a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. 48 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. 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. N. 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, 2017. GASB Statement No. 73 -In June 2015, GASB issued Statement 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. The provisions in statement 73 are effective for fiscal years beginning after June 15, 2015-except those provisions that address employers and governmental nonemployer contributing entities for pensions that are not within the scope of Statement 68, which are effective for fiscal years beginning after June 15, 2016. This statement had no impact on the City's financial statements. GASB Statement No. 74 -In June 2015, GASB issued Statement No. 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. Statement No. 74 replaces Statements No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans. It also includes requirements for defined contribution OPEB plans that replace the requirements for those OPEB plans in Statement No. 25, Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans, as amended, statement 43, and statement No. 50, Pension Disclosures. The provisions in statement 74 are effective for fiscal years beginning after June 15, 2016. This statement had no impact on the City's financial statements. GASB Statement No. 77 -In August 2015, GASB issued Statement No. 77, Tax Abatement Disclosures. The objective of this statement is to provide financial statement users with essential information about the nature and magnitude of the reduction in tax revenues through tax abatement programs. This statement is effective for reporting periods beginning after December 15, 2015. See Note 15 for tax abatement disclosure. 49 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 1 -SUM1\1ARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) GASB Statement No. 78 -In December 2015, the GASB issued Statement No. 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans. The objective of this Statement is to address a practice issue regarding the scope and applicability of GASB Statement No. 68, Accounting and Financial Reporting for Pensions-an amendment to GASB Statement No. 27. This issue is associated with pensions provided through certain multiple-employer defined benefit pension plans and to State or local governmental employers who employees are provided with such pensions. The requirements of this Statement are effective for reporting periods beginning after December 15, 2015. This Statement had no impact on the City's fmancial statements. GASB Statement No. 80-In January 2016, the GASB issued Statement No. 80, Blending Requirements for Certain Component Unit-an amendment to GASB Statement No. 14. The objective of this Statement is to improve financial reporting by clarifying the financial statement presentation requirements for certain component units. This Statement amends the blending requirements established in paragraph 53 of GASB Statement No. 14, The Financial Reporting Entity. 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 GASB Statement No. 39, Determining Whether Certain Organizations Are Component Units -an amendment to GASB Statement No. 14. The requirements of this Statement are effective for reporting periods beginning after June 15, 2016 and had no impact on the City's fmancial statements. GASB Statement No. 82 -In March 2016, the GASB issued Statement No. 82, 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 GASB Statement No. 67, Financial Reporting for Pension Plans-an amendment to GASB Statement No .. 25, GASB Statement No. 68, Accounting and Financial Reporting for Pensions-an amendment to GASB Statement No. 27, and GASB Statement 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. The requirements of this Statement are effective for reporting periods beginning after June 15, 2016, except for the requirements of this Statement for the selection of assumptions in a circumstance in which an employer's pension liability is measured as of a date other than the employer's most recent fiscal year end. In that circumstance, the requirements for the selection of assumptions are effective for that employer in the first reporting period in which the measurement date of the pension liability is on or after June 15, 2017. This statement had no significant impact on the City's financial statements. 50 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 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 I, 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. The following Major Capital Projects Fund incurred expenditures in excess of their budgets in the amount below. Sufficient resources were available within each department to finance these overages. Capital Projects Fund Public Facilities Impact Fees Community Development 51 $5,560,701 CITY OF DUBLlN NOTES TO BASIC FlNANCIAL STATEMENTS Fiscal Year Ended .June 30, 2017 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. The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called security instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Individual investments are generally made by the City's fiscal agents as required under its debt issues. In order to maximize security, the City employs the Trust Department of a bank as the custodian of all City managed investments, regardless of their form. The City's investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year. B. Classification Cash and investments are classified in the fmancial 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, 2017, consist of the following: Cashon hand Deposits with financial institutions Investments Total cash and investments 52 $233,658,380 6,966,066 $240,624,446 $7,126 10,211,568 230,405,752 $240,624,446 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 3 -CASH AND INVESTMENTS (Continued) I 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. 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 Maximum Maximum Maximum Credit Percentage Investment Authoriz.ed Investment Type Maturity Quality of Portfolio In One Issuer Negotiable Certificates ofDeposit 5years A-1 30% 20% Bankers 1 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 As set Management Program NIA NIA No Limit No Limit Conunercial 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. 53 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 3 -CASH AND INVESTMENTS (Continued) I 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 12 Months or less $296,289 6,175,781 17,979,022 40,031,730 32,938,030 2,934,423 436,923 13 to 24 Months $4,108,333 3,754,405 6,862,605 6,251,240 25 to 60 Months $5,949,060 45,523,287 22,200,809 34,963,815 $100,792,198 $20,976,583 $108,636,971 Total $10,353,682 49,277,692 35,239,195 59,194,077 40,031,730 32,938,030 2,934,423 436,923 $230,405,752 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, 2017, these investments matured in an average of 194 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, 2017, the fair value approximated is the City's cost. At June 30, 2017, these investments have an average maturity of 49 days. The City's investments include Asset-Backed Securities in the amount of $10,353,682 that are highly sensitive to interest rate fluctuations to a greater degree than already indicated above. 54 CITY OF DUBLJN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 3 -CASH AND INVESTMENTS (Continued) I 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. The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2017: Investments By Fair Value Level: Asset-Backed Securities U.S. Treasury Notes Medium-Term Notes U.S. Government Agency Securities Commercial Pap er Total Investments Jnves tments Measured at Amortized Cost: California Asset Management Program Local Agency Investment Fund Money Market Funds Total Level2 $10,353,682 49,277,692 35,239,195 59,194,077 2,934,423 $156,999,069 Total $10,353,682 49,277,692 35,239,195 59,194,077 2,934,423 156,999,069 32,938,030 40,031,730 436,923 $230,405, 752 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 (LAIF), California Asset Management Program and money market funds are classified as exempt in the fair value hierarchy, as they are valued at amortized cost, which is exempt from being classified under GASB 72. 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. 55 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 3 -CASH AND INVESTMENTS (Continued) I 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, 2017 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, 2017. Investment TyEe AAA AA+ AA AA-A+ A A-A-1 Total Asset-Backed Securities $4,482,609 $4,482,609 U.S. Treasuiy Notes $49,277,692 49,277,692 Medium-Term Notes 1,810,092 3,555,459 $1,004,814 $7,709,588 $6,592,849 $12,760,809 $1,805,584 35,239,195 U.S. Government Agency Securities 59,194,077 59,194,077 California Asset Management Program 32,938,030 32,938,030 Commercial Paper $2,934,423 2,934,423 Money Mlllket Funds 436,923 436,923 Totals $39,667,654 $112,027,228 $1,004,814 $7,709,588 $6,592,849 $12,760,809 $1,805,584 $2,934,423 184,502,949 Not rated: Asset-Backed Securities 5,871,073 State Local Agency Investment Fund 40,031,730 Total Investments $230,405,752 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 Unit Fntity-wide Issuer Federal Home Loan Bank Federal Home Loan Mortgage Coiporation Federal National Mortgage Association 56 Investment Type US ilivernment Agency Securities US ilivernment Agency Securities US ilivernment Agency Securities Reported Amount $18,648,535 15,404,734 25,140,808 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 4 -INTERFUND TRANSACTIONS A. Transfers Between Funds Transfers between funds during the fiscal year ended June 30, 2017 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: Information Technology Internal Service Fund Energy Efficiency Internal Service Fund (A) To fund capital project expenditures Fund Receiving Transfers General Improvements Projects Capital Projects Fund Community Improvements Projects Capital Projects Fund Parks Projects Capital Projects Fund Streets Projects Capital Projects Fund Building Replacement Internal Service Fund . Parks Projects Capital Projects Fund Streets Projects Capital Projects Fund General Improvements Projects Capital Projects Fund General Fund Streets Projects Capital Projects Fund Parks Projects Capital Projects Fund General Improvements Projects Capital Projects Fund General Improvement Projects Capital Projects Fund Streets Projects Capital Projects Fund (B) To fund the Building Replacement Internal Service Fund B. Current Interfund Balances Amount Transferred $169,564 (A) 3,854 (A) 4,794,262 (A) 274,734 (A) 300,000 (B) 5,542,414 20,753,165 (A) 756,411 (A) 1,045,434 (A) 22,555,010 6,600 (A) 9,234,642 (A) 566,383 (A) 64,626 (A) 9,872,251 643,142 (A) 209 (A) 643,351 $38,613,026 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, 2017, the following funds have balances due to the General Fund: Due to other funds Public Facilities Impact Fees Capital Projects Fund Non-Major Governmental Funds Internal Service Funds Total 57 $11,047,500 2,557,366 128,281 $13,733,147 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 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 fmancing 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. As of June 30, 2017, the Fire Impact Fees Capital Projects Fund has repaid the General Fund in full. The following interfund balances existed at June 30, 2017: Advances from other funds General Fund PERS Side Fund Internal Service Fund $159,616 INOTE5-NOTESRECEIVABLE The following table summarizes the notes receivable outstanding as of June 30, 2017: 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 $1,520,630 2,832,487 2,863,323 1,499,471 6,316,872 $15,032,783 Revolving Home Loans -As part of the City of Dublin First Time Homebuyer Loan Program (FTHLP), the City provides fmancial 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, 2017 was $1,520,630. As of June 30, 2017, there were no loans in default. 58 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 5 -NOTES RECEIVABLE (Continued) Details of the Revolving Home Loans as of June 30, 2017 were as follows: ORIGINAL LOAN ACCRUED REP AYMFNT OFPRINCIP AL LOAN# LOAN DATE AMOUNT INTEREST AND INTEREST LOAN BALANCE #07-03 3/30/2007 $60,039 $19,977 ($80,016) #07-04 10/31/2007 50,000 16,921 $66,921 #07-09 9/21/2007 26,036 8,969 35,005 #07-11 10/12/2007 38,141 12,981 51,122 #07-12 10/8/2007 33,051 11,997 45,048 #07-14 10/2/2007 19,610 6,692 26,302 #07-15 12/4/2007 24,536 8,224 32,760 #07-16 12/28/2007 8,000 2,663 10,663 #07-18 2/29/2008 24,170 7,898 32,068 #08-01 8/19/2008 25,377 7,780 (33,157) #08-05 2/3/2009 22,619 6,664 29,283 #08-06 2/11/2009 55,404 16,253 71,657 #08-07 4/10/2009 27,425 7,896 35,321 #08-08 6/30/2009 39,576 11,086 50,662 #09-02 9/29/2009 36,595 9,932 46,527 #10-02 1/26/2011 40,000 9,004 49,004 #10-03 5/6/2011 26,700 5,752 32,452 #11-01 12/9/2011 26,025 5,080 31,105 #11-03 11/2212011 30,839 6,052 36,891 #11-04 12/28/2011 35,249 6,795 42,044 #11-05 1/13/2012 29,999 5,737 35,736 #11-06 1/13/2012 36,415 6,964 43,379 #11-07 1/19/2012 36,682 6,994 43,676 #11-08 1/31/2012 35,249 6,680 41,929 #11-09 2/15/2012 36,671 6,897 43,568 #11-10 4/3/2012 38,586 7,083 45,669 #12-01 10/30/2012 29,999 4,903 34,902 #12-02 1/31/2013 40,000 6,181 46,181 #12-03 3/22/2013 36,749 5,502 42,251 #12-04 4/12/2013 36,749 5,428 42,177 #12-05 4/25/2013 35,249 5,159 40,408 #12-06 4/26/2013 31,499 4,469 35,968 #12-07 5/15/2013 35,249 5,095 40,344 #12-08 5/10/2013 35,249 5,112 40,361 #12-09 4/25/2013 36,749 5,382 42,131 #13-01 7/31/2013 40,000 5,486 45,486 #13-03 10/2/2013 40,000 5,245 45,245 #13-04 12/9/2013 40,000 4,984 44,984 #13-05 3/11/2014 36,888 3,152 (40,040) #15-01 7/1/2016 40,000 1,400 41,400 $1,377,374 $296,469 ($153,213) $1,520,630 59 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 5 -NOTES RECEIVABLE (Continued) Eden Senior Affordable Housing Loan -(Wicklow Square) -On September 23, 2002, the City selected Eden Housing, Inc. as the developer for the affordable senior housing at the site of the former library located at 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 principa.l 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, 2017 was $2,832,487. Arroyo Vista Predevelopment/Construction Loan -Family and Senior Projects -(Emerald Vista) -On June 1, 2011, the City entered into an agreement to provide a loan to Eden Dougherty, L.P ., a California nonprofit public benefit corporation, with a not-to-exceed $7,600,000 principal amount in accordance to the Arroyo Vista Disposition and Development Agreement dated July 25, 2007 concerning the redevelopment of the real property located at 6700 Dougherty Road in the City of Dublin. The City agreed to provide a loan to Eden to assist in financing the development of the Family Project and Senior Project. The City determined that the development of the project is in the interests of health, safety and welfare of the residents of the City, and that the City financing is necessary to make the project affordable to low and very low income households for a term of not less than fifty-five years. The note will not bear interest until the earlier of (i) the date that the project's construction financing is either converted to a permanent loan or repaid in full, or (ii) twelve months following the date of issuance of the final certificate of occupancy or equivalent for the project; thereafter, the outstanding principal balance of the loan shall bear interest at a rate equal to three percent simple annual interest. Annual payments shall be due and payable on a residual receipts basis in accordance with the formula set forth in the note. The entire outstanding principal balance and accrued interest shall be paid in full on the earlier of (i) the fifty fifth anniversary of the date of issuance of the final certificate of occupancy or (ii) the fifty-seventh anniversary of the loan origination date. The City has the right to accelerate maturity date and declarerall 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, 2017, the outstanding amounts are $2,863,323 for the Family Project and $1,499,471 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, 2017, the outstanding amount of the loan was $6,316,872. 60 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 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. 61 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 6 -CAPITAL ASSETS (Continued) A. Current Year Activities Capital asset activities during the fiscal year were as follows: Balance at Balance at Jlllle 30, 2016 Additions Retirements Transfers Jlllle 30, 2017 Governmental activities Capital assets not being depreciated: Land $171,301,925 $171,301,925 Streets Right of Way 35,425,288 $483,101 35,908,389 Construction in Progress 50,777,385 $36,065,714 (2,430, 724) 84,412,375 Total capital assets not being depreciated 257,504,598 36,065,714 (1,947,623) 291,622,689 Capital assets being depreciated: Infrastructure 386,792,065 1,671,829 388,463,894 Buildings and Improvements 75,790,206 275,794 76,066,000 Vehicles and Equipment 15,002,735 472,023 ($76,034) 15,398,724 Total capital assets being depreciated 477,585,006 472,023 (76,034) 1,947,623 479,928,618 Less accumulated depreciation for: Infrastructure (226,196,233) (7,207,056) (233,403,289) Buildings and Improvements (37,617,015) (2,682,931) ( 40,2~9 ,946) Vehicles and Equipment ( 4,966, 712) (902,289) 61,386 (5,807,615) Total Accumulated Depreciation (268, 779,960) (10,792,276) 61,386 (479,510,850) Net governmental fim.d program Capital assets being depreciated 208,805,046 (10,320,253) (14,648) 1,947,623 200,417,768 Governmental activity capital assets, net $466,3 09 ,644 $25,745,461 ($14,648) $492,040,457 62 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 6 -CAPITAL ASSETS (Continued) B. Project Commitments At June 30, 2017, the City had outstanding commitments with contractors for the following projects: Project Facility Construction Facility Modification Park Construction Park hnprovements Street Improvements Street Repair/Maintenance Street Signal Improvements Technology Upgrade C. Capital Asset Contributions Commitment $1,059,999 426,018 6,094,543 248,~36 10,188,919 934,111 79,244 61,396 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: I NOTE 7 -LONG TERM DEBT Governmental Activities General Government Police Fire Public Works Parks and Corrnnunity Service Corrnnunity Development Total depreciation expense A. Current Year Transactions and Balances Balance at July 1, 2016 Additions GOVERNMENTALACTMTYDEBT 2012 Chevron Energy Capital Lease $5,346,352 Dublin Crossing Loan Payable $5,450,042 Total Govermrental Activity Debt $5,346,352 $5,450,042 63 $1,368,766 297,648 413,284 5,733,762 2,839,390 139,426 $10,792,276 Balance at Due Within Retiremmts June 30, 2017 One Year ($429,109) $4,917,243 $455,999 5,450,042 1,362,511 ($429,109) $10,367,285 $1,818,510 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 7 -LONG TERM DEBT (Continued) B. 2012 Chevron Energy Capital Lease On June 12, 2012, City entered into an Energy Services Performance Contract with Chevron Energy Solutions to implement the recommended efficiency improvements in the City's ongoing efforts to reduce energy consumption and develop long-term cost savings through increased energy efficiency. The total project cost was estimated to be $7,430,976. City expects the full cost of improvements including interest can be offset through estimated energy savings. The project was funded through a combination of Lease Financing and Internal Service Fund reserves. The total amount financed by the bank was approximately $6,755,824, with interest rate fixed at 2.56% which occurred on October 1, 2012. The first payment was made on September 28, 2013. The financing is a lease arrangement with Bank of America holding title to the improvements being installed. Once all lease payments are made, improvements are fully owned by the City. The payments will be made over a fourteen-year period. The amount of annual lease payments is intended to produce consistent savings each year. Therefore, for payments in the initial years, when certain rebates and incentives are received, the payments will be higher. The average annual lease payment over the repayment period is estimated to be approximately $565,977 per year. The City anticipates that energy savings and incentives are projected to fully offset these costs. C Dublin Crossing Loan Payable As discussed in Note 14C, the City entered into several agreements with various developers and merchant builders who are developing numerous residential and commercial projects throughout the City. On November 19th, 2013, the City entered into one of these agreements with Dublin Crossing Venture LLC (Developer), for the acquisition and development of a parcel of land. The City acquired the land and subsequently conveyed it to the Developer on March 23, 2017. Included in the development plan are residential units, commercial uses, a community park, a neighborhood park, privately owned open space, and an elementary school site. The City exercised its option to enter into an interest-free loan with the Developer to fmance the land acquisition. The purchase price, $5,450,042, is due in four annual installment payments. Installment payments will commence July 2018 and shall be fully repaid in July 2021. 64 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 7 -LONG TERM DEBT (Continued) D. Debt Service Requirements The annual debt service requirement on the capital lease obligation is as follows: Governmental Activities: Capital Lease Year ending June 30 Principal Interest 2018 $455,999 $125,881 2019 396,728 114,208 2020 424,629 104,052 2021 453,889 93,181 2022 484,565 81,562 2023-2027 2,701,433 213,243 Total $4,917,243 $732,127 The annual debt service requirement on the loan payable is as follows: Governmental Activities: Dublin Crossing Loan Payable Year ending June 30 Principal 2018 $1,362,511 2019 1,362,511 2020 1,362,510 2021 1,362,510 Total $5,450,042 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 Government-wide level, and are described below: Net Investment in Capital Assets, describes the portion of Net Position which is represented by the current net book value of the City's capital assets. 65 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 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. Assign,ed 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 $3,860,531 associated equivalent to the unrealized loss on investments and a positive $36,192,125 based on goals to accommodate general cash flow. 66 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 8 -NET POSITION AND FUND BALANCES (Continued) Detailed classifications of the City's Fund Balances, as of June 30, 2017, are stated below: MnjorFunds Affordable Street Public Facilities Fire Impact Traffic Impact Dublin General Housing Projects Impac!Fees Fees Fees Crossing Non-Major Fund Fund Fund Fund Fund Fund Contribution Funds Tola! Non-Spendable: Prepaids $39,262 $39,262 Long-Tenn Advance lo PERS Side Fund 159,616 159,616 Subtotal Non-Spendable Fund Balance 198,878 198,878 Restricted for: Cemelecy Endowment 60,000 60,000 Public Safety Programs $1,002,352 1,002,352 Street Maintenance and Construction 7,939,328 7,939,328 Health and Welfare Programs 498,870 498,870 Heritage Parle Maintenance 750,000 750,000 Recycling Programs 711,272 711,272 Impact Fee Capital Projects $16,054,705 $81,679 $25,192,278 41,328,662 Capital Improvement Projects $13,598,936 4,094,609 17,693,545 Developer Contribution -Heritage Park 19,000 19,000 Developer Contribution -Nature Park 60,000 60,000 Downtown Co1mnunity Benefit Program 873,000 873,000 Housing $27,193,329 27,193,329 Subtotal Restricted Fund Balance 1,762,000 27,193,329 16,054,705 81,679 25,192,278 13,598,936 14,246,431 98,129,358 Committed to: Economic Stability 8,000,000 8,000,000 Downtown Public Improvements 452,170 452,170 Emergency Conununicalions 741,000 741,000 Fire Services OPEB 3,334,672 3,334,672 Innovations and New Opportunities 1,813,408 1,813,408 Maintenance Facility 76,033 76,033 Civic Center Expansion 22,745 22,745 Historic Park Schaefer Ranch 5,272,210 5,272,210 One Time Initiatives 1,341,408 1,341,408 Shannon Center Parking Lot 967,680 967,680 Advance to Public Facility Fee 6,000,000 6,000,000 Fallon Sports Parle 200,000 200,000 Stom1 Drain Capture 722,198 722,198 Utility Undergrounding 1,170,190 1,170,190 Dublin Sports Ground 2,500,000 2,500,000 Economic Development 2,000,000 2,000,000 Public Safely 1,600,000 1,600,000 Subtotal Committed Fund Bnlnnce 36,213,714 36,213,714 Assigned to: Non-slreet CIP 3,879,516 3,879,516 Employees Accrued Leave 998,234 998,234 Operating Carcyovers 1,240,217 1,240,217 CIP Carcyovers 1,739,331 1,739,331 Catastrophic Loss and Rccovecy 13,918,531 13,918,531 Service Conlinuily Obligations 3,150,000 3,150,000 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 Internal Service Fund 500,000 500,000 Municipal Regional Pemut 1,870,030 1,870,030 HVAC Replacement 2,000,000 2,000,000 Relocate Patlcs 250,000 250,000 Fire Equipment Replacement 190,873 190,873 Pension Rale Stabilization 2,000,000 2,000,000 Chevron Debt Pay-off 5,238,622 5,238,622 Commercial Fa9ade Improvement Grant 250,000 250,000 Subtotal Assigned Fund Balance 50,126,807 50,126,807 Unassigned Fund Balance Fund Balance Deficits ($250,679) (1,621,703) (1,872,382) Unrealized Gain on lnveslmenls/(loss) (3,860,531) (3,860,531) Cash Flow Per City Policy 37,974,794 37,974,794 34,114,263 (250,679) (1,621,703) 32,241,881 Total Fund Balance (Deficit) $122,415,662 $27,193,329 ($250,679) $16,054,705 $81,679 $25,192,278 $13,598,936 $12,624, 728 $216,910,638 67 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 8 -NET POSITION AND FUND BALANCES (Continued) I C. Minimum Fund Balance Policies The City's Reserve Policy requires the City to maintain an Unrestricted General Funds,. for cash flow purposes, of minimum equal to two months of budgeted operating expenditures with a goal to achieve a maximum of four months. As of June 3 0, 2017 the cash flow reserves, which are part of the Unassigned Fund Balance, were above the minimum at approximately 5.6 months, which were over the desired target of 4 months. Funds may be appropriated as to Undesignated Capital Contribution by designation from City Council only for high priority one time capital expenditures provided the minimum fund balance would remain. D. Fund Equity Deficits The funds listed in the table below had fund balance deficits at June 30, 2017. These deficits are expected to be eliminated by future revenues. Fund Streets Capital Projects Fund Measure B Grants Special Revenue Fund Measure BB Grants Special Revenue Fund Transportation for Clean Air (TFCA) Special Revenue Fund HCD Housing Related Parks Grant Special Revenue Fund PERS Side Fund Internal Service Fund Energy Efficiency Internal Service Fund !NOTE 9-DEFERRED COMPENSATION PLAN I Fund Deficit $250,679 180,835 1,367,617 19,752 53,499 159,616 4,711,885 City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination of employment, retirement, death, or in an emergency as defined by the Plan. In accordance with GASB Statement No. 32, the funds have been placed in a trust administered by ICMA Retirement Corporation and are not available to the City's general creditors. Accordingly, the City does not report the assets in the financial statements. I NOTE 10 -PENSION PLAN For purposes of measuring the net pensim1 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. 68 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 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, 2017: Miscellaneous Deferred Outflows ofResources $3,915,819 Net Pension Liability/ Proportionate Share ofNet Pension Liability $12,984,969 Deferred Inflows of Resources $977,509 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 of living 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, 2017, are summarized as follows: Hire date Benefit fornmla Benefit vesting schedule Benefit payments Retirement age Monthly benefits, as a% of eligible compensation Required employee contribution rates Required employer contribution rates 69 Miscellaneous Prior to Januruy 1, 2013 2.7%@55 5 years service monthly for life 55 2.7% 7.949% 11.634% Miscellaneous PEP RA On or after January 1, 2013 2%@62 5 years service monthly for life 62 2% 6.250% 6.555% CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 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 $553,902 in fiscal year 2017. 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, 2017, the City's contributions to the Plan were as follows: Contributions -employer Miscellaneous $1,738,634 B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2017, the City reported $12,948,969 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, 2016, 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, 2015 rolled forward to June 30, 2016 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, 2015 and 2016 was as follows: Proportion -June 30, 2015 Proportion -June 30, 2016 Change -Increase (Decrease) 70 Miscellaneous 0.36999% 0.37379% 0.00380% CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 10 -PENSION PLAN (Continued) For the year ended June 30, 20I 7, the City recognized net pension expense of $677,688 for the Miscellaneous Plan on the Statement of Activities. At June 30, 20I 7, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Pension contributions 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 contributions Net differences between projected and actual earnings on plan investments Total Deferred Outflows of Resources $1,738,634 29,746 682,698 1,464,741 $3,915,819 Deferred Inflows of Resources ($6,816) (281,428) (689,265) ($977,509) The $I,738,634 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 3 0, 20 I 7. 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 2018 $168,416 2019 137,356 2020 514,519 2021 379,385 $1,199,676 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 I-percentage point higher than the current rate: 1% Decrease Net Pension Liability Current Discount Rate Net Pension Liability 1% Increase Net Pension Liability 71 Miscellaneous 6.65% $20,053,486 7.65% $12,984,969 8.65% $7,143,191 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 10 -PENSION PLAN (Continued) Actuarial Assumptions -For the measurement period ended June 30, 2016, the total pension liabilities were determined by rolling forward the June 30, 2015 total pension liability. The June 30, 2015 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, 2015 June 30, 2016 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 CalPERS 2014 experience study report available on CalPERS website. All other actuarial assumptions used in the June 30, 2016 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 -There were no changes of assumptions in fiscal year 2016-2017. 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. 72 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 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 Equity 51.0% 5.25% Global Fixed Income 20.0% 0.99% Inflation Sensitive 6.0% 0.45% Private Equity 10.0% 6.83% Real Estate 10.0% 4.50% Infrastructure and Forestland 2.0% 4.50% Liquidity 1.0% -0.55% Total 100% (a) An expected inflation of2.5% used for these periods.· (b) An expected inflation of3.0% used for these periods. Real Return Years ll+(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. 73 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 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 accotint 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 Hea/,th 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, 2015 Actuarial Study completed by Bartel and Associates, LLC in accordance with GASB Statement 45, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. 74 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 !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 accordanct:: 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 asset-beginning ofyear Net OPEB asset-end ofyear $1,346,000 1,346,000 (1,522,53 7) (176,537) 996,376 $1,172,913 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 2016-17, and the preceding years were as follows: Fiscal Annual AnnualOPEB NetOPEB Year Ended OPEBCost Cost Contributed Asset (Obligation) 6/30/2015 $1,350,000 97% ($4,647) 6/30/2016 1,344,000 174% 996,376 6/30/2017 1,346,000 113% 1,172,913 Funded Status and Funding Progress -As of June 30, 2016, 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. 75 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 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, 2017of13 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 Premiwns Actual Premiums 2016 Actual Premiwns Actual Premiums 2017 7.0% 7.2% 2018 6.5% 6.7% 2019 6.0% 6.1% t ... + 2021+ 5.0% 5.0% 76 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 11-OTHER POST EMPLOYMENT BENEFITS (Continued) I 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 DRF A 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 DRF A 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 2016-2017, the City contributed $42,587 to the plan, all of which was for current premiums. No other contributions were made. Annual OP EB Cost and Net OP EB Obligation -The City of Dublin's share of the DRF A 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. 77 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 11-OTHER POST EMPLOYMENT BENEFITS (Continued) The following table shows the components of the City of Dublin's share of DRFA annual OPEB cost for the year, the amount actually contributed to the plan and changes in the Dublin Share of DRF A net OPEB and the City of Dublin share of the obligation to DRFA Retiree Health Plan: Annual required contribution Interest on net OPEB obligation Adjustment to annual required contribution Annual OPEB expense Contributions made Increase (decrease) in net OPEB obligation Net OPEB obligation-beginning ofyear Net OPEB obligation -end of year $85,974 12,165 (34,798) 63,341 (42,587) 20,754 326,581 $347,335 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 2016-2017 and the two previous years were as follows: Fiscal Annual AnnualOPEB OPEB Year Ended OPEB Cost Cost Contributed Obligation 6/30/2015 $53,853 80.32% $315,269 6/30/2016 54,217 79.14% 326,581 6/30/2017 63,341 67.74% 347,335 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. 78 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 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. jNOTE 12-HEALTH, GENERAL LIABILITY AND WORKERS' COMPENSATION COVERAGE A. RiskPool 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. 79 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 NOTE 12 -HEALTH, GENERAL LIABILITY AND WORKERS' COMPENSATION COVERAGE (Continued) ABAG PLAN also provides property insurance coverage. This coverage is also comprised of a self-insured layer combined with commercial insurance. The first $100,000 of losses are self-funded by ABAG PLAN form premiums collected from the participants in the program. ABAG PLAN purchases an insurance policy to cover losses above $100,000 per occurrence and the annual aggregate losses of the pool are insured above $250,000. The insurance provides coverage for property damage among all participants to $1 billion. The City deductible for property and vehicle losses is $5,000. For any single loss in excess of $25,000 the deductible is waived. The City's contributions to the ABAG PLAN for liability coverage are based on a formula which considers the ratio of the City's payroll to the total payrolls of all entities participating in the same layer of each program, in each program year's loss history and population. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. There have been no significant reductions in any of the City's areas of insurance coverage and no settlement amounts have exceeded coverage in the past three years. Audited financial information for the ABAG PLAN can be obtained from ABAG PLAN, P.O. Box 2050, Oakland, California 94604-2050. 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 Safety National Casualty 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, 2017, the City paid Cities Group $5,315 in premiums. 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, $22,027, is adequate to cover 3.09% IBNR claims. Therefore no adjustment was made in fiscal year 2016-2017 as the City's exposure is for the $50,000 deductible per General Liability claim. 80 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 13 -JOINT POWERS AGREEl\'.IENTS 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 2016-2017 the City contributed $34,037 of the total annual debt service payment. In addition, the City contributed $184,841 or 12.94% toward the annual operating shelter services and $56,527 representing 3.56% 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 fmancial statements are not issued. B. Associated Community Action Program (A.CAP) 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 fmancial 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. 81 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 13 -JOINT POWERS AGREEMENTS (Continued) During fiscal year 2016-2017 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 2016-2017, 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 3 0, 2017 for ACAP is presented below: Total assets Total liabilities Total net assets Total revenues Total expenses Increase (decrease) net position $159,223 888,302 ($729,079) $224 27,923 ($27,699) 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 fmally adjudicated will not have a material adverse effect on the fmancial 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, 2017, was $3,178,820 which is net of the $383,223 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. 82 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 I NOTE 14 -OTHER COMMITMENTS AND CONTINGENT LIABILITIES (Continued) B. Alameda County Surplus Property Authority The City entered into an agreement with the Alameda County Surplus Property Authority for the repayment of the City's Short Term BART Advance by the Authority. Under the terms of the agreement, interest on the advance shall accrue at a rate based on the Alameda County Treasurers return on investments. As of June 30, 2017, the balance was $15,025 which includes accrued interest of $15,025 at 0.92% for the current year. The advance is to be repaid from developer fees, charges, and other non-tax revenues from the benefiting areas and has no specific due date. The City's General Fund shall not be obligated to repay this obligation. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for repayment of the advance. C. Other Development Agreements The City entered into several agreements with various developers and merchant builders who are developing numerous residential and commercial projects throughout the City. The City agreed to grant the developers' impact fee credits since the developers constructed certain improvements beyond what was needed to serve their specific projects. The value of credits does not increase for inflation nor do they accrue interest. Any unused credits may be used by the' developers on other projects located within the Traffic Impact Fee area. The value of the credits as of June 30, 2017 was $122,458,756. The addition of $27,733,413 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 $30,207,958. 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 $6.487 million towards the liability that was then moved to a General Fund Reserve, which was reclassified as an as$igned fund balance upon the Cit.Y'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. 83 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30, 2017 !NOTE 15-TAXABATEMENTS The City has entered into multiple sales tax reimbursement agreements for the purpose of attracting new businesses within the City through the construction and improvement of property sites. The City is expected to make annual reimbursement payments over a five (5) to ten (10) year period in which the amount of each reimbursement payment commitment is based on total sales tax received and derived using formulas in the approved agreements. For financial reporting purposes, the GASB Statement No. 77 defines a tax abatement as resulting from an agreement between a government and an individual or entity in which the government promises to forgo tax revenues and the individual or entity promises to subsequently take a specific action that contributes to economic development or otherwise benefits the government or its citizens. According to GASB Statement No. 77, the substance of these sales tax reimbursement agreements meets the definition of "tax abatements." For the fiscal year ended June 30, 2017, under these sales-tax reimbursement agreements, the City has abatements totaling $488,896. Pursuant to the Sales and Use Tax law (chapter 8 -Article 1 -section 7056), in order to protect the confidential information of sales taxes collected and abatements provided to each of the specific agencies, the City has presented the aggregate amount abated during the current fiscal year. jNOTE16-SUBSEQUENTEVENTSJ A. Special Tax Bonds, Series 2017 On August 15, 2017, the City issued special tax bonds in three separate terms to finance the cost of acquiring and constructing certain public infrastructure improvements and/or reimbursing fees paid for capital improvements, generally including roadways and roadway related improvements, water, wastewater, and other miscellaneous infrastructure improvements in connection with the development of the Dublin Crossing Project. The first term, $2,465,000, yields interest of 3.180%, is due September 1, 2027. The second term, $9,165,000, yields interest of 3.760%, is due September 1, 2037. The third term, $21,110,000, yields interest of 3.950%, is due September 1, 2047. B. Ca/PERS' Discount Rate In December 2016, CalPERS' Board of Directors voted to lower the discount rate from 7.5% to 7 .0% over the next three fiscal years, beginning in fiscal year 2018. The change in discount rate will affect the contribution rates beginning in fiscal year 2019 and result in increases to the normal costs and unfunded actuarial liabilities. 84 REQUIRED SUPPLEMENTAL INFORMATION 85 City of Dublin Cost-Sharing Multiple-Employer Defined Pension Plan -Miscellaneous Plans As of June 30, 2017 Schedule ofthe Plan's Proportionate Share of the Net Pension Liability and Related Ratios as of the Measurement Date Last 10 Years* 6/30/2014 6/30/2015 Plan's Proportion of the Net Pension Liability (Asset) Plan's Proportionate Share of the Net Pension Liability/(Asset) Plan's Covered Payroll Plan's Proportionate Share 6fthe Net Pension Liability/(Asset) as a Percentage ofits Covered 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. 86 0.12593% 0.369990/o $7,835,901 $10,150,589 $8,425,970 $9,268,029 93.00% 109.52% 83.03% 79.290/o 6/30/2016 0.373790/o $12,984,969 $10,443,838 124.33% 75.27% City of Dublin Cost-Sharing Multiple Employer Defined Pension Plan -Miscellaneous Plans For the Fiscal Year Ended June 30, 2017 Schedule of Contributions Last 10 Years* 2015 Actuarially determined contribution $1,411,959 Contributions in relation to the actuarially determined contributions (1,411,959) Contribution deficiency (excess) $0 Covered payroll $8,425,970 Contributions as a percentage of covered payroll 16.76% *-Fiscal year 2015 was the 1st yearofimplementation. 87 2016 2017 $869,467 $1,738,634 (869,467) (1,738,634) $0 $0 $9,268,029 $10,443,838 9.38% 16.65% Actuarial Valuation Date 6/30/2004 6/30/2007 6/30/2009 6/30/2011 6/30/2013 6/30/2015 Actuarial Value of Assets (A) $0 5,694,000 5,326,000 6,823,000 9,574,000 13,154,000 Actuarial Valuation Date 6/30/2013 6/30/2015 6/30/2016 City of Dublin Other Post-Employment Retirement Benefits For the Fiscal Year Ended June 30, 2017 Schedule of Funding Progress Underfunded Fntry Age (Over.funded) Actuarial Actuarial Accrued Accrued Funded Liability Liability Ratio (B) (B-A) (A/B) $4,973,780 $4,973,780 0.00% 6,159,000 465,000 92.45% 6,990,000 1,664,000 76.19% 11,557,000 4,734,000 59.04% 14,823,000 5,249,000 64.59% 17,657,000 4,503,000 74.50% City of Dublin Dougherty Regional Fire Authority Other Post-Employment Retirement Benefits For the Fiscal Year Ended June 30, 2017 Schedule ofFunding Progress Covered Payroll cq $6,320,280 6,697,747 7,618,000 7,830,000 8,972,000 8,894,000 Underfunded Entry Age (Over:funded) Actuarial Actuarial Actuarial UAALas a Percentage of Covered Payroll [(B-A)/C] 78.7% 6.9% 21.8% 60.5% 58.5% 50.6% Value of Accrued Accrued Funded Assets Liability Liability Ratio (A) (B) (B-A) (A/B) $0 $762,433 $762,433 0.00% 0 806,873 806,873 0.00% 0 806,873 806,873 0.00% 88 SUPPLEMENTARY INFORMATION 89 CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2017 Budgeted Amounts Original Final Actual Amounts Property taxes: Current year secured $27,288,463 $28,194,339 $28,354,492 Current year unsecured 1,500,000 1,500,000 1,496,194 Supplemental property tax 662,990 662,990 1,077,687 Prior year secured 300,000 300,000 367,938 Prior year unsecured (31,984) Property tax penalties 96,743 In lieu property tax 5,430,608 5,430,608 5,603,714 Sub-total 35,182,061 36,087,937 36,964,784 Taxes other than property: Sales and use tax 20,666,260 20,666,260 20,001,379 Real property transfer tax 500,000 600,000 1,064,805 Hotel transient occupancy tax 1,000,000 1,300,000 1,498,493 Franchise taxes 3,965,000 3,965,000 4,271,247 Sub-total 26,131,260 26,531,260 26,835,924 Licenses and permits: Animal licenses 7,000 7,000 7,394 Building permits 3,993,674 5,493,674 7,148,985 Business license 161,970 161,970 178,051 Construction and demolition permits 93,435 93,435 124,687 Encroachment permits 118,000 118,000 136,174 Fire permits 92,677 92,677 104,546 Grading permits 3,500 3,500 3,960 Planning permits 54,992 54,992 58,843 Miscellaneous permits 7,876 7,876 7,619 Sub-total 4,533,124 6,033,124 7,770,259 Fines and forfeitures: Parking citations 72,432 72,432 47,942 Business license penalties 2,500 2,500 4,402 Other court fmes 35,000 35,000 41,861 Sub-total 109,932 109,932 94,205 90 Variance with Final Budget Positive (Negative) $160,153 (3,806) 414,697 67,938 (31,984) 96,743 173,106 876,847 (664,881) 464,805 198,493 306,247 304,664 394 1,655,311 16,081 31,252 18,174 11,869 460 3,851 {2572 1,737,135 (24,490) 1,902 6,861 (15,7272 CI1Y OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2017 (Continued) Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative2 Revenue from use of money and property: Interest $465,880 $840,880 $1,280,773 $439,893 Internal designated 6,168 6,168 Change in fair market value of investments (2,161,541) (2,161,541) Rent and concession: Field and court rentals 200,000 200,000 220,159 20,159 Facility rentals 340,730 340,730 389,633 48,903 Leased property 492,758 492,758 509,374 16,616 Sub-total 1,499,368 1,874,368 244,566 p,629,8022 Intergovernmental revenues: Motor vehicle in-lieu 25,692 25,692 Mandated costs 15,000 15,000 10,125 (4,875) Homeowner's property tax relief 183,618 183,618 222,692 39,074 Sub-total 198,618 198,618 258,509 59,891 Charges for services: General government Building use insurance 21,000 21,000 27,712 6,712 Sale of maps and documents 500 500 527 27 Public safety Police charges for services 56,720 56,720 46,151 (10,569) Fire charges for services 356,075 423,475 520,155 96,680 Santa Rita fire services 505,200 505,200 795,177 289,977 Waste management Waste management admin fees 875,000 875,000 922,932 47,932 Environmental Programs EV Charges 1,500 1,500 2,397 897 Parks and community services Aquatics programs 498,350 498,350 487,012 (11,338) Cemetery 6,222 6,222 5,589 (633) Cultural arts 20,000 204,500 190,098 (14,402) Family programs 675,085 675,085 499,376 (175,709) Community events and festivals 112,490 112,490 196,479 83,989 Heritage Center 16,600 16,600 14,965 (1,635) Preschool programs 336,646 336,646 360,140 23,494 Recreational activities 503,000 318,500 279,668 (38,832) Senior programs 91,150 91,150 103,943 12,793 Sports programs 740,513 740,513 786,403 45,890 Community Development Engineering plan checking 3,376,246 3,376,246 3,240,696 (135,550) Local share permit surcharge -SMIP 2,254 2,254 4,598 2,344 Building plan checking 2,450 2,450 6,071 3,621 Local share permit surcharge -Zone 7 drainage fees 17,711 17,711 25,548 7,837 Zoning and subdivision fees 951,669 1,861,272 1,658,783 {202,4892 Sub-total 9,166,381 10,143,384 10,174,420 31,036 91 CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30, 2017 (Continued) Budgeted Amounts Original Final Actual Amounts Other revenues: Contributions $112,960 $122,960 $317,319 Sales of property 6,307 Miscellaneous 64,934 Reimbursement -general 138,384 370,069 511,289 Reimbursement -public damage 5,000 5,000 4,112 Reimbursement -Community benefit assessment 100,000 550,000 699,000 Sub-total 356,344 1,048,029 1,602,961 Total Revenue by Sources $77,177,088 $82,026,652 $83,945,628 92 Variance with Final Budget Positive (Negative} $194,359 6,307 64,934 141,220 (888) 149,000 554,932 $1,918,976 This Page Left Intentionally Blank CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL DEPARTMENTAL EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2017 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative2 General government City Council $531,676 $531,676 $402,153 $129,523 City Manager 1,227,510 1,227,510 1,180,716 46,794 City Clerk 653,093 653,093 594,181 58,912 Election 80,720 80,720 75,888 4,832 Human resources 753,656 753,656 690,639 63,017 Insurance 497,450 497,450 365,452 131,998 City attorney 800,746 800,746 782,417 18,329 Finance 1,729,426 1,787,426 1,641,215 146,211 Non departmental ISF 1,339,340 1,992,114 1,511,604 480,510 Disaster preparedness 123,489 138,489 98,587 39,902 Crossing guards 140,695 153,195 149,040 4,155 Animal control 301,257 354,075 275,405 78,670 Waste management 75,515 75,515 81,522 (6,007) Community TV 123,650 123,650 108,210 15,440 Sub-total 8,378,223 9,169,315 7,957,029 1,212,286 Police Police admin/support services 2,862,611 2,862,611 2,446,895 415,716 Patrol 8,305,327 8,305,327 6,524,367 1,780,960 Traffic 1,097,322 1,097,322 1,163,111 (65,789) Investigations 2,252,427 2,252,427 2,571,414 (318,987) Crime prevention/school resource services 1,612,327 1,612,327 1,530,799 81,528 Communications/ dispatch 1,071,888 1,182,274 1,114,704 67,570 Police operations support 2,008,727 2,025,252 1,721,985 303,267 Sub-total 19,210,629 19,337,540 17,073,275 2,264,265 Fire Administration 12,448,396 12,448,396 12,275,637 172,759 Fire prevention 461,994 461,994 429,576 32,418 Operations 128,000 162,000 160,736 1,264 Fire station maintenance 245,650 278,956 226,460 52,496 Sub-total 13,284,040 13,351,346 13,092,409 258,937 Public works Building management 1,345,950 1,687,269 1,548,176 139,093 Public Safety Complex 82,513 85,192 80,345 4,847 Traffic signals 10,000 10,000 4,106 5,894 Street lighting 15,994 15,994 13,023 2,971 Park maintenance 3,399,011 3,386,025 3,147,573 238,452 Parks/facilities development 350,367 350,367 210,891 139,476 Public works administration 1,458,419 1,433,361 1,364,951 68,410 Street maintenance 292,704 134,052 83,042 51,010 Street sweeping 138,244 138,244 125,027 13,217 Street landscaping 1,513,524 1,343,586 1,147,984 195,602 Street tree maintenance 183,796 104,821 75,619 29,202 Environmental services 671,723 671,724 560,874 110,850 Engineering 3,266,906 3,286,842 3,258,536 28,306 Sub-total 12,729,151 12,647,477 11,620,147 1,027,330 94 CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL DEPARTMENTAL EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2017 (Continued) Budgeted Amounts Original Final Actual Amounts Parks and Community Services Library services $865,281 $903,681 $921,514 Historic facility operations and rentals 264,163 459,475 427,553 Heritage center programs 216,671 229,779 222,045 Cultural activities 267,925 267,925 185,440 Community events and festivals 746,574 761,574 716,040 Facility operations and rentals 1,362,464 1,405,499 1,203,938 Parks and community services administration 1,742,576 1,880,718 1,680,437 Family programs 568,961 568,961 523,649 Recreational activities 399,029 399,029 496,992 Preschool programs 252,113 252,113 222,564 Senior programs 454,385 454,385 433,820 Sports programs 712,271 712,271 642,239 Aquatic programs 210,585 252,654 207,425 Emerald Glen Recreation and Aquatic Center 1,357,363 1,343,959 928,939 Sub-total 9,420,361 9,892,023 8,812,595 Economic development Economic development 688,320 966,163 644,403 Public information 351,030 351,030 247,199 Sub-total 1,039,350 1,317,193 891,602 Community development Human services 242,798 300,898 209,456 Planning 2,614,824 3,270,258 2,382,248 Building and safety 3,155,340 3,405,340 3,139,417 Sub-total 6,012,962 6,976,496 5,731,121 Total Expenditures $70,074,716 $72,691,390 $65,178,178 I 95 Variance with Final Budget Positive (Negative2 ($17,833) 31,922 7,734 82,485 45,534 201,561 200,281 45,312 (97,963) 29,549 20,565 70,032 45,229 415,020 1,079,428 321,760 103,831 425,591 91,442 888,010 265,923 1,245,375 $7,513,212 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. 97 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, 2017 Budgeted Amounts Variance with Final Budget Positive Original Final Actual Amounts (Negative) EXPENDITURES: Capital outlay: General improvements Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE $15,996,963 15,996,963 (15,996,963) 15,996,963 152996,963 98 $1,9222766 $14,074,197 1,922,766 142074,197 (1,922, 766) 14,074,197 1,922,766 {14,074,1972 1,922,766 (14,074,1972 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, 2017 Budgeted Amounts Variance with Final Budget Positive Original Final Actual Amounts (Negative) EXPENDITURES: Capital outlay: CoilllD.unityililprovelilents $342,877 $3,854 $339,023 Total Expenditures 342,877 3,854 339,023 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES (342,877) (3,854) 339,023 OTHER FINANCING SOURCES (USES) Transfers in 342,877 3,854 (339,023) Total Other Financing Sources (Uses) 342,877 3,854 (339,023) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE 99 CITY OF DUBLIN PARKS PROJECTS CAP IT AL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 EXPENDITURES: Capital outlay: Parks Total Expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES) Transfers in Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Budgeted Amounts Original Final $10,470,118 $39, 744, 764 10,470,118 39,744,764 (10,470,118) (39,744,764) 10,470,118 39,744,764 10,470,118 39,744,764 100 Variance with Final Budget Positive Actual Amounts (Negative) $26, 113,810 $13,630,954 26,113,810 13,630,954 (26,113,810) 13,630,954 26,1132810 {13,630,9542 26,1132810 {13,630,9542 CITY OF DUBLIN STREETS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 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 ENDING FUND BALANCE (DEFICIT) Budgeted Amounts Original Final $15,652,723 15,652,723 (15,652,723) 15,652,723 15,652,723 101 $2,659,000 2,659,000 32,447,136 32,447,136 (29,788,136) 29,788,136 29,788,136 Variance with Final Budget Positive Actual Amounts (Negative) $10,516,675 10,516,675 (10,516,675) 10,265,996 10,265,996 (250,679) ($250,6792 ($2,659,000) (2,659,000) 21,930,461 21,930,461 19,271,461 (19,522,140) {19,522,1402 ($250,679} CITY OF DUBLIN PUBLIC FACILITIES IMP ACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 Budgeted Amounts Original Final Actual Amounts REVENUES: Interest $20,280 $20,280 $346,476 Developer fees 9,141,918 8,220,918 10,449,460 Total Revenues 9,162,198 8,241,198 10,795,936 EXPENDITURES: Parks and community service 60,527 40,376 Community development 5,560,701 Total Expenditures 60,527 5,601,077 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 9,162,198 8,180,671 5,194,859 OTHER FINANCING SOURCES (USES) Proceeds from loan payable 5,450,042 Transfers out (8,789,344) (30,973,721) (20,753,165) Total Other Financing Sources (Uses) {82789,3442 {30,973,7212 {15,303,1232 NET CHANGE IN FUND BALANCE $372,854 {$22,793,0502 (10,108,264) BEGINNING FUND BALANCE 26,162,969 ENDING FUND BALANCE $16,054,705 102 Variance with Final Budget Positive (Negative) $326,196 2,228,542 2,554,738 20,151 (5,560,701) (5,540,550) (2,985,812) 5,450,042 l0,220,556 15,670,598 $12,684,786 CITY OF DUBLIN FIRE IMP ACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 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 Budgeted Amounts Original Final $86,496 $51,496 86,496 51,496 5,000 5,000 5,000 5 000 81,496 462496 $81,496 $46,496 103 Variance with Final Budget Positive Actual Amounts (Negative) $167,349 $115,853 167,349 115,853 4,997 3 4 997 3 1622352 115,856 162,352 $115,856 (802673} $812679 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, 2017 Budgeted Amounts Variance with Final Budget Positive Original Final Actual Amounts (Negative) 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 $96,360 2,968,575 3,064,935 500,000 500,000 2,564,935 (1,487,658) (1,487,6582 $1,077,277 104 $96,360 4,518,581 4,614,941 578,400 131,990 710,390 3,904,551 {4,492,1022 {4,492,1022 {$587,5512 $267,057 6,498,584 6,765,641 554,118 70,203 624,321 6,141,320 {756,4112 {756,4112 5,384,909 19,807,369 $25,192,278 $170,697 1,980,003 2,150,700 24,282 61,787 86,069 2,236,769 3,735,691 3,735,691 $52972,460 CITY OF DUBLIN DUBLIN CROSSING CONTRIBUTION CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 Budgeted Amounts Original Final Actual Amounts REVENUES: Interest $2,060 $2,060 $152,528 Developer fees 533,839 533,839 Other revenue 99,290 Total Revenues 535,899 535,899 2512818 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 535,899 535,899 251,818 OTHER FINANCING SOURCES (USES) Transfers out {989,2332 {15,489,2962 {1,04524342 Total Other Financing Sources (Uses) {989,2332 {15,489,2962 {1,045,4342 NET CHANGE IN FUND BALANCE {$453,3342 {$14,953,3972 (793,616) BEGINNING FUND BALANCE (DEFICIT) 14,3922552 ENDING FUND BALANCE $13,5982936 105 Variance with Final Budget Positive (Negative2 $150,468 (533,839) 992290 {284,0812 {28420812 14,443,862 14,443,862 $14,159,781 This Page Left Intentionally Blank NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. SPECIAL REVENUE FUND PUBLIC SAFETY: SPECIAL CRIMINAL ACTIVITY Established to account for receipt of funds derived from asset forfeitures. VEHICLE ABATEMENT Established to account for the use of funds received from vehicle registration of Dublin residents for the towing of abandoned vehicles in city limits. SUPPLEMENTAL LAW ENFORCEMENT (SLESJCOPS) Established to account for police expenditures funded by a State grant. TRAFFIC SAFETY Established to account for the receipt of traffic fines and traffic safety expenditures. FEDERAL ASSET SEIZURE Established to account for the receipts and expenditures of the Federal seizure funds. EMERGENCY MEDICAL SERVICES (EMS) Established to account for excise taxes received to fund the costs of providing Emergency Medical Services. ENFORCEMENT GRANTS Established to account for miscellaneous grants received for police expenditures not reported in the above funds. TRANSPORTATION: STATE GAS TAX Established to account for the receipt of state gasoline taxes and expenditures. SAFETEA-LU Established to account for the revenue received from the U.S. Department of Transportation under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legal for Users fund. 107 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. MEASURE BB GRANTS Established to account for Alameda County Transportation Commission (ACTC) discretionary funding (versus direct funding) from 2014 voter-approved increase in sales tax used for improvements on bike and pedestrian 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. 108 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 Inc. 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 Industry and to provide business owners funding for eligible environmental related improvements. STORM WATER MANAGEMENT Established to account for the following activities: Storm Water Management Established to account for the funds received from the State and designated specifically for the use of storm water related activities. 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. 109 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 DEVELOPlVIENT 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. 110 This Page Left Intentionally Blank CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUND COMBINING BALANCE SHEET JUNE 30, 2017 Special Revenue Funds Special Supplemental Criminal Vehicle Law Activity Abatement Enforcement ASSETS Cash and investments $132,307 $360,782 $55,075 Accounts receivable 7,121 Total Assets $132,307 $367,903 $55,075 LIABILITIES Accounts payable $7,367 Deposits payable 27,615 Due to other funds Total Liabilities 34,982 FUND BALANCE (DEFICIT) Fund balance (Deficit): Restricted Public safety programs 97,325 $367,903 $55,075 Street maintenance and construction Health and welfare programs Recycling programs Capital improvement projects Unassigned Total Fund Balances (Deficits) 97,325 367,903 55,075 Total Liabilities and Fund Balances $132,307 $367,903 $55,075 112 Traffic Safety $332,947 15,184 $348,131 $836 836 347,295 347,295 $348,131 Federal Asset Seizure $34,875 $34,875 $34,875 34,875 $34,875 Emergency Medical Services $144,317 48,492 $192,809 $98,688 98,688 94,121 94,121 $192,809 Enforcement Grants $5,760 $5,760 $5,760 5,760 $5,760 Special Revenue Funds State Gas Tax SAFETEA-LU $3,724,913 $3,724,913 $50,616 50,616 3,674,297 3,674,297 $3,724,913 113 MeasureB Sales Tax Local Streets $385,119 70,800 $455,919 $455,919 455,919 $455,919 MeasureB Sales Tax Bike/Pedestrian $359,228 27,168 $386,396 $52 52 386,344 386,344 $386,396 (Continued) CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUND COMBINING BALANCE. SHEET JUNE 30, 2017 Special Revenue Funds Measure BB Measure BB MeasureB Sales Tax Sales Tax Grants Streets and Roads Bike/Pedestrian ASSETS Cash and investments $585,575 $84,311 Accounts receivable $267,390 63,180 22,042 Total Assets $267,390 $648,755 $106,353 LIABILITIES Accounts payable Deposits payable Due to other funds $448,225 Total Liabilities 448,225 FUND BALANCE (DEFICIT) Fund balance (Deficit): Restricted Public safety programs Street maintenance and construction $648,755 $106,353 Health and welfare programs Recycling programs Capital improvement projects Unassigned ~180,835l Total Fund Balances (Deficits) (180,835l 648,755 106,353 Total Liabilities and Fund Balances $267,390 $648,755 $106,353 114 Measure BB Grants $128,778 $128,778 $1,496,395 1,496,395 (l,367,617l ~1,367 ,617l $128,778 Transportation for Clean Air (TFCA) $75,500 $75,500 $95,252 95,252 (19,752) (19,752) $75,500 Congestion Management Agency $290,982 $290,982 $290,982 290,982 $290,982 Highway Safety Traffic Reduction Bond Special Revenue Funds Federal Transportation (TIGER) 115 ACTC Vehicle Registration Fee $184,016 49,555 $233,571 $26,055 26,055 207,516 207,516 $233,571 IDA $115,000 $115,000 $115,000 115,000 $115,000 Garbage/ Recycling $646,835 87,456 $734,291 $23,019 23,019 711,272 711,272 $734,291 (Continued) CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUND COMBINING BALANCE SHEET JUNE 30, 2017 Special Revenue Funds ASSETS Cash and investments Accounts receivable 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 prpgrams Capital improvement projects Unassigned Total Fund Balances (Deficits) Total Liabilities and Fund Balances A VI Economic Benefit/Business Assistance Program 116 Storm Water Management $244,067 $244,067 $244,067 244,067 $244,067 Box Culvert $367,503 $367,503 $367,503 367,503 $367,503 . East Bay Regional Park District Public Art $4,286,384 $4,286,384 $191,776 Miscellaneous Special Revenue $459,693 42,040 $501,733 $2,863 Community Development Block Grant $66,827 $66,827 $8,814 Special Revenue Funds HCD Housing Related Parks Grant ------------____ 5_...8,.._0_13_ $53,499 191,776 2,863 66,827 53,499 498,870 4,094,608 (53,499) 4,094,608 498,870 (53,499) $4,286,384 $501,733 $66,827 117 1983-1 Street Lighting $148,509 2,614 $151,123 $13,261 13,261 137,862 137,862 $151,123 Maintenance Districts 1983-2 Stagecoach Landscape $142,995 $142,995 $3,912 3,912 139,083 139,083 $142,995 1986-1 Dougherty Landscape $345,641 426 $346,067 $4,826 4,826 341,241 341,241 $346,067 (Continued) ASSETS Cash and investments Accounts receivable 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 CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUND COMBlNINGBALANCESHEET JUNE 30, 2017 SEecial Revenue Funds Maintenance Districts 1997-1 1999-1 Santa Rita East Dublin LandscaEe Street Lighting $526,635 $735,738 3,380 1,838 $530,015 $737,576 $13,528 $23,676 13,528 23,676 516,487 713,900 Total Fund Balances (Deficits) 516,487 713,900 Total Liabilities and Fund Balances $530,015 $737,576 118 Total Non-Major Governmental Funds $14,293,225 1,385,773 $15,678,998 $466,426 30,478 2,557,366 3,054,270 1,002,354 7,939,327 498,870 711,272 4,094,608 {l,621, 7032 12,624,728 $15,678,998 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, 2017 Special Revenue Funds Special Supplemental Criminal Vehicle Law Activi!l Abatement Enforcement REVENUES Property taxes Taxes other than property Intergovernmental $34,464 $123,632 Charges for service Interest $1,125 3,794 595 Fines and forfeitures Developer fees Other revenue 718 Special assessments Total Revenues 1,843 38,258 124,227 EXPENDITURES Current: General government Police 10,578 100,000 Fire Public works Parks and community services Community development Total Expenditures 10,578 100,000 REVENUES OVER (UNDER) EXPENDITURES (8,7352 38,258 24,227 OTHER FINANCJNG SOURCES (USES) Transfer out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES (8,735) 38,258 24,227 FUND BALANCES (DEFICITS): Beginning of year 106,060 329,645 30,848 Endofyear $97,325 $367,903 $55,075 120 Traffic Safe!l $3,726 166,015 169,741 103,170 103,170 66,571 (52,419) ~52,4192 14,152 333,143 $347,295 Federal Asset Seizure $310 19,058 19,368 19,368 19,368 15,507 $34,875 Emergency Medical Services $188,192 1,167 181,433 370,792 349,830 349,830 20,962 20,962 73,159 $94,121 Enforcement Grants $64 64 64 64 5,696 $5,760 Special Revenue Funds State Gas Tax SAFETEA-LU $1,091,705 41,469 1,133,174 436,084 436,084 697,090 (962,934) (962,934) (265,844) 3,940,141 $3,674,297 121 MeasureB Sales Tax Local Streets $458,222 3,719 461,941 461,941 (572,528) (572,528) (110,587) 566,506 $455,919 MeasureB Sales Tax Bike/Pedestrian $175,830 3,267 179,097 10,945 10,945 168,152 (42,260) (42,260) 125,892 260,452 $386,344 (Continued) CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED~ 30, 2017 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 $408,414 $142,487 Intergovernmental $4,966,354 Charges for service Interest 6,182 1,830 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 4,966,354 414,596 144,317 EXPENDITURES Current: General government Police Fire Public works Parks and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 4,966,354 414,596 144,317 OTHER FJNANCJNG SOURCES (USES) Transfer out { 4, 736, 7 492 {230,0002 {200,0002 Total Other Financing Sources (Uses) {4,736,7492 {230,0002 {200,0002 NET CHANGE JN FUND BALANCES 229,605 184,596 (55,683) FUND BALANCES (DEFICITS): Beginning of year (410,4402 464,159 162,036 End of year ($180,835) $648,755 $106,353 122 Measure BB Grants $681,650 681,650 681,650 {2,049,2672 {2,049,2672 (1,367,617) ($1,367,617) Transportation for Clean Air (TFCA) $75,500 75,500 75,500 (66,314) (66,3142 9,186 (28,9382 ($19,752) Congestion Management Agency Special Revenue Funds Highway Safety Traffic Reduction Bond Federal Transportation (TIGER) 123 ACTC Vehicle Registration Fee $176,584 2,338 278,922 144,951 144,951 133,971 (141,679) (141,6792 (7,708) 215,224 $207,516 TDA $148,311 148,311 115,000 115,000 33,311 33,311 (33,311) Garbage/ Recycling $296,016 3,833,056 9,868 1,000 4,139,940 3,818,757 71,343 3,890,100 249,840 (81,5102 ~81,5102 168,330 542,942 $711,272 (Continued) CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 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 Parks and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Transfer out Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCES (DEFICITS): Beginning of year End of year FOR THE YEAR ENDED JUNE 30, 2017 Special Revenue Funds A VI Economic Benefit/Business Assistance Program 124 Storm Water Management $951,837 2,911 954,748 10,000 10,000 944,748 944,748 (700,681) $244,067 Box Culvert $4,027 4,027 4,027 4,027 363,476 $367,503 East Bay Regional Park District Public Art $42,721 962,982 1,853 1,007,556 81,747 81,747 925,809 (246,353) {246,3532 679,456 3,415,152 $4,094,608 Miscellaneous Special Revenue $139,718 5,645 8,280 153,643 75,210 75,210 78,433 (154,6252 {154,6252 (76,192) 575,062 $498,870 Community Development Block Grant $93,532 93,532 86,932 86,932 6,600 (6,6002 {6,6002 Special Revenue Funds HCD Housing Related Parks Grant $166,575 166,575 166,575 {320,0292 {320,0292 (153,454) 99,955 ($53,499) 125 1983-1 Street Lighting $973 295,550 296,523 327,547 327,547 (31,024) (31,024) 168,886 $137,862 Maintenance Districts 1983-2 Stagecoach Landscape $1,277 87,771 89,048 . 62,350 62,350 26,698 26,698 112,385 $139,083 1986-1 Dougherty Landscape $2,750 192,617 195,367 73,030 73,030 122,337 122,337 218,904 $341,241 (Continued) CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2017 SEecial Revenue Funds Maintenance Districts Total 1997-1 1999-1 Nonmajor Santa Rita East Dublin Governmental LandscaEe Street Li~htin~ Funds REVENUES Property taxes Taxes other than property $1,184,953 Intergovernmental 9,094,352 Charges for service 3,972,774 Interest $4,732 $6,918 151,408 Fines and forfeitures 166,015 Developer fees 971,262 Other revenue 22,629 Special assessments 342,781 316,569 1,416,721 Total Revenues 347,513 323,487 16,980,114 EXPENDITURES Current: General government 3,893,967 Police 110,578 Fire 349,830 Public works 220,667 168,546 1,743,633 Parks and community services 81,747 Community development 86,932 Total Expenditures 220,667 168,546 6,266,687 REVENUES OVER (UNDER) EXPENDITURES 126,846 154,941 10,713,427 OTHER FINANCING SOURCES (USES) Transfer out {8,984} {9,872,251} Total Other Financing Sources (Uses) {8,984} {9,872,251} NET CHANGE IN FUND BALANCES 126,846 145,957 841,176 FUND BALANCES (DEFICITS): Beginning of year 389,641 567,943 11,783,552 Endofyear $516,487 $713,900 $12,624, 728 126 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, 2017 SPECIAL CRIMINAL ACTIVITY Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $850 $850 $1,125 Fines and forfeitures Developer fees Other revenue 718 Special assessments Total Revenues 850 850 1,843 EXPENDITURES Current: General government Police 5,795 55,795 10,578 Fire Public works Park and community services Community development Total Expenditures 5,795 55,795 10,578 REVENUES OVER (UNDER) EXPENDITURES {4,945} (54,9452 {8,735} OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES {$4,945} {$54,9452 (8, 735) FUND BALANCE (DEFICITS): Beginning of year 106,060 End of year $97,325 128 Variance Positive (Negative} $275 718 993 45,217 45,217 46,210 $46,210 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, 2017 VEHICLE ABATEMENT Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $30,457 $30,457 $34,464 Charges for service Interest 1,970 1,970 3,794 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 32,427 32,427 38,258 EXPENDITURES Current: General government Police 822 822 Fire Public works Park and community services Community development Total Expenditures 822 822 REVENUES OVER (UNDER) EXPENDITURES 31,605 31,605 38,258 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $31,605 $31,605 38,258 FUND BALANCE (DEFICITS): Beginning of year 329,645 Endofyear $367,903 129 Variance Positive (Negative) $4,007 1,824 5,831 822 822 6,653 $6,653 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, 2017 SUPPLEMENTAL LAW ENFORCEMENT Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $100,000 $100,000 $123,632 Charges for service Interest 200 200 595 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 100,200 100,200 124,227 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 200 200 24,227 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $200 $200 24,227 FUND BALANCE (DEFICITS): Beginning of year 30,848 Endofyear $55,075 130 Variance Positive (Negative) $23,632 395 24,027 24,027 $24,027 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, 2017 TRAFFIC SAFETY Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $1,760 $1,760 $3,726 Fines and forfeitures 148,279 148,279 166,015 Developer fees Other revenue Special assessments Total Revenues 150,039 150,039 169,741 EXPENDITURES Current: General government Police Fire Public works 142,757 142,757 103,170 Park and community services Community development Total Expenditures 142,757 142,757 103,170 REVENUES OVER (UNDER) EXPENDITURES 7,282 7,282 66,571 OTHER FINANCING SOURCES (USES) Transfers (out) (97,992) (52,419) Total Other Financing Sources (Uses) {97,9922 {52,4192 NET CHANGE IN FUND BALANCES $7,282 {$90,7102 14,152 FUND BALANCE (DEFICITS): Beginning of year 333,143 End of year $347,295 131 Variance Positive (Negative) $1,966 17,736 19,702 39,587 39,587 59,289 45,573 45,573 $104,862 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 FEDERAL ASSET SEIZURE Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $70 $70 $310 Fines and forfeitures Developer fees Other revenue 19,058 Special assessments Total Revenues 70 70 19,368 EXPENDITURES Current: General government Police 5,700 5,700 Fire Public works Park and community services Community development Total Expenditures 5,700 5,700 REVENUES OVER (UNDER) EXPENDITURES {5,6301 {5,6301 19,368 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES ($5,6301 {$5,6301 19,368 FUND BALANCE (DEFICITS): Beginning of year 15,507 End of year $34,875 132 Variance Positive (Negative1 $240 19,058 19,298 5,700 5,700 24,998 $24,998 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, 2017 EMERGENCY MEDICAL SERVICES Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $185,412 $185,412 $188,192 Charges for service Interest 410 410 1,167 Fines and forfeitures Developer fees Other revenue Special assessments 178,380 178,380 181,433 Total Revenues 364,202 364,202 370,792 EXPENDITURES Current: General government Police Fire 349,413 350,538 349,830 Public works Park and community services Community development Total Expenditures 349,413 350,538 349,830 REVENUES OVER (UNDER) EXPENDITURES 14,789 13,664 20,962 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $14,789 $13,664 20,962 FUND BALANCE (DEFICITS): Beginning of year 73,159 End of year $94,121 133 Variance Positive (Negative) $2,780 757 3,053 6,590 708 708 7,298 $7,298 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, 2017 ENFORCEMENT GRANT Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $20 $20 $64 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 20 20 64 EXPENDITURES Current: General government Police 2,500 2,500 Fire Public works Park and community services Community development Total Expenditures 2,500 2,500 REVENUES OVER (UNDER) EXPENDITURES (2,480) (2,480) 64 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES {$2,480} {$2,480} 64 FUND BALANCE (DEFICITS): Beginning of year 5,696 End of year $5,760 134 Variance Positive (Negative) $44 44 2,500 2,500 2,544 $2,544 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, 2017 STATE GAS TAX Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $1,134,968 $1,134,968 $1,091,705 Charges for service Interest 12,960 12,960 41,469 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 1,147,928 1,147,928 1,133,174 EXPENDITURES Current: General government Police Fire Public works 549,726 549,726 436,084 Park and community services Community development Total Expenditures 549,726 549,726 436,084 REVENUES OVER (UNDER) EXPENDITURES 598,202 598,202 697,090 OTHER FINANCING SOURCES (USES) Transfers (out) (1,041,128) (2,284,219) (962,934) Total Other Financing Sources (Uses) {1,041,128} {2,284,219} {962,934} NET CHANGE IN FUND BALANCES ($442,926} {$1,686,017} (265,844) FUND BALANCE (DEFICITS): Beginning of year 3,940,141 End of year $3,674,297 135 Variance Positive (Negative) ($43,263) 28,509 (14,754) 113,642 113,642 98,888 1,321,285 1,321,285 $1,420,173 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, 2017 SAFETEA-LU 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 End of year Budgeted Amounts Original Final Actual 136 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, 2017 MEASURE B SALES TAX STREETS AND ROADS Variance Budgeted A.mounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property $428,339 $428,339 $458,222 $29,883 Intergovernmental Charges for service Interest 3,719 3,719 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 428,339 428,339 461,941 33,602 EXPENDITURES Current: General gove:r:nment Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 428,339 428,339 461,941 33,602 OTIIER FINANCING SOURCES (USES) Transfers (out) (550,000) (991,298) (572,528) 418,770 Total Other Financing Sources (Uses) {550,0002 {991,2982 {572,5282 418,770 NET CHANGE IN FUND BALANCES . {$121,6612 {$562,9592 (110,587) $452,372 FUND BALANCE (DEFICITS): Beginning of year 566,506 End of year $455,919 137 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, 2017 MEASURE B SALES TAX BIKE/PEDESTRIAN Variance Budgeted Amounts Positive Original Final Actual (Negative2 REVENUES Property taxes Taxes other than property $165,085 $165,085 $175,830 $10,745 Intergovernmental Charges for service Interest 760 760 3,267 2,507 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 165,845 165,845 179,097 13,252 EXPENDITURES Current: General government Police Fire Public works 17,961 17,961 10,945 7,016 Park and community services Community development Total Expenditures 17,961 17,961 10,945 7,016 REVENUES OVER (UNDER) EXPENDITURES 147,884 147,884 168,152 20,268 OTHER FINANCING SOURCES (USES) Transfers (out) {250,6802 {292,9402 {42,2602 250,680 Total Other Financing Sources (Uses) {250,6802 {292,9402 {42,2602 250,680 NET CHANGE IN FUND BALANCES ($102,7962 {$145,0562 125,892 $270,948 FUND BALANCE (DEFICITS): Beginning of year 260,452 End of year $386,344 138 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, 2017 MEASURE B GRANTS Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $6,267,000 $4,966,354 Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 6,267,000 4,966,354 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 6,267,000 4,966,354 OTHER FINANCING SOURCES (USES) Transfers (out) (5,856,560) (4,736,749) Total Other Financing Sources (Uses) (5,856,5602 (4,736,7492 NET CHANGE IN FUND BALANCES $410,440 229,605 FUND BALANCE (DEFICITS): Beginning of year (410,440} End of year ($180,835} 139 Variance Positive (Negative) ($1,300,646) (1,300,646) (1,300,646) 1,119,811 1,119,811 ($180,835} 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, 2017 MEASURE BB SALES TAX STREETS AND ROADS Variance Bud~eted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property $389,695 $389,695 $408,414 $18,719 Intergovernmental Charges for service Interest 310 310 6,182 5,872 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 390,005 390,005 414,596 24,591 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 390,005 390,005 414,596 24,591 OTHER FINANCING SOURCES (USES) Transfers (out) (623,600) (853,600) (230,000) 623,600 Total Other Financing Sources (Uses) (623,6002 {853,6002 (230,0001 623,600 NET CHANGE IN FUND BALANCES {$233,5951 {$463,5951 184,596 $648,191 FUND BALANCE (DEFICITS): Beginning of year 464,159 End of year $648,755 140 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, 2017 MEASURE BB SALES TAX BIKE/PEDESTRIAN Variance Budgeted Amounts Positive Ori~inal Final Actual (Negative2 REVENUES Property taxes Taxes other than property $134,802 $134,802 $142,487 $7,685 Intergovernmental Ch~ges for service Interest 820 820 1,830 1,010 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 135,622 135,622 144,317 8,695 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 135,622 135,622 144,317 8,695 OTHER FINANCING SOURCES (USES) Transfers (out) (28,0002 {228,0002 {200,0002 28,000 Total Other Financing Sources (Uses) (28,0002 {228,0002 (200,0002 28,000 NET CHANGE IN FUND BALANCES $107,622 ($92,3782 (55,683) $36,695 FUND BALANCE (DEFICITS): Beginning of year 162,036 End of year $106,353 141 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, 2017 MEASURE BB GRANTS Budgeted Amounts Original Final Actual REVENUES Property taxe.s Taxes other than property Intergovernmental $10,773,000 $10, 773,000 $681,650 Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 10,773,000 10,773,000 681,650 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 10,773,000 10,773,000 681,650 OTHER FINANCING SOURCES (USES) Transfers (out) {$10,773,0002 {11,400,0002 {2,049,2672 Total Other Financing Sources (Uses) {10, 773,0002 (11,400,0002 (2,049,2672 NET CHANGE IN FUND BALANCES {$627,0002 (1,367,617) FUND BALANCE (DEFICITS): Beginning of year End of year {$1,367,6172 142 Variance Positive (Negative) ($10,091,350) (10,091,3502 {10,091,3502 9,350,733 9,350,733 {$740,6172 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, 2017 CONGESTION MANAGEMENT AGENCY 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 End of year Budgeted Amounts Original Final Actual $621,513 621,513 621,513 $621,513 143 Variance Positive (Negative) ($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 JUNE 30, 2017 TRANSPORTATION FOR CLEAN AIR {TFCA} Variance Bud~eted A.mounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $146,352 $221,852 $75,500 ($146,352) Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 146,352 221,852 75,500 (146,352) EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 146,352 221,852 75,500 (146,352) OTHER FINANCING SOURCES (USES) Transfers (out) (146,352) (192,914) (66,314) $126,600 Total Other Financing Sources (Uses) (146,352) (192,914) (66,314) 126,600 NET CHANGE IN FUND BALANCES $28,938 9,186 ($19,752) FUND BALANCE (DEFICITS): Beginning of year (28,938} End of year {$19,752} 144 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, 2017 IDGHWAY SAFETY TRAFFIC REDUCTION BOND 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 End of year Budgeted Amounts Original Final Actual 145 Variance Positive (Negative) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 3 0, 2017 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 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year Budgeted Amounts Original Final Actual 146 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, 2017 ACTC VEHICLE REGISTRATION FEE Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $252,000 $252,000 $276,584 Charges for service Interest 230 230 2,338 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 252,230 252,230 278,922 EXPENDITURES Current: General government Police Fire Public works 161,280 161,280 144,951 Park and community services Community development Total Expenditures 161,280 161,280 144,951 REVENUES OVER (UNDER) EXPENDITURES 90,950 90,950 133,971 OTHER FINANCING SOURCES (USES) Transfers (out) (40,840) (200,261) (141,679) Total Other Financing Sources (Uses) (40,840) (200,261) (141,679) NET CHANGE IN FUND BALANCES $50,110 {$109,3112 (7,708) FUND BALANCE (DEFICITS): Beginning of year 215,224 End of year $207,516 147 Variance Positive (Negative) $24,584 2,108 26,692 16,329 16,329 43,021 58,582 58,582 $101,603 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 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 3 0, 201 7 IDA Budgeted Amounts Original Final $148,311 148,311 115,000 115,000 33,311 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $33,311 FUND BALANCE (DEFICITS): Beginning of year End of year 148 Variance Positive Actual (Negative) $148,311 148,311 115,000 115,000 33,311 33,311 (33,311l CITY OF DUBLJN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES JN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 GARBAGE/RECYCLING Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $160,000 $246,000 $296,016 Charges for service 3,792,000 3,792,000 3,833,056 Interest 1,370 1,370 9,868 Fines and forfeitures Developer fees Other revenue 2,200 2,200 1,000 Special assessments Total Revenues 3,955,570 4,041,570 4,139,940 EXPENDITURES Current: General government 3,870,150 3,871,275 3,818,757 Police Fire Public works 144,760 175,037 71,343 Park and community services Community development Total Expenditures 4,014,910 4,046,312 3,890,100 REVENUES OVER (UNDER) EXPENDITURES (59,340) (4,742) 249,840 OTHER FINANCING SOURCES (USES) Transfers (out) {80,000) {166,000) (81,510) Total Other Financing Sources (Uses) {80,000) {166,000) (81,510) NET CHANGE IN FUND BALANCES ($139,340) {$170,742) 168,330 FUND BALANCE (DEFICITS): Beginning of year 542,942 End of year $711,272 149 Variance Positive (Negative) $50,016 41,056 8,498 (1,200) 98,370 52,518 103,694 156,212 254,582 84,490 84,490 $339,072 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, 2017 AVI 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 End of year Budgeted Amounts Original Final Actual 150 Variance Positive (Negative) CITY OF DUBLlN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES JN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 STORM WATER MANAGEMENT Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental $248,000 $1,192,329 $951,837 Charges for service Interest 1,380 1,380 $2,911 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 249,380 1,193,709 954,748 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 239,380 1,183,709 944,748 OTHER FINANCING SOURCES (USES) Transfers (out) {44,9642 Total Other Financing Sources (Uses) {44,9642 NET CHANGE IN FUND BALANCES $239,380 $1,138,745 944,748 FUND BALANCE (DEFICITS): Beginning of year {700,681~ End of year $244,067 151 Variance Positive (Negative) ($240,492) 1,531 (238,961) (238,961) 44,964 44,964 {$193,9972 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 3 0, 2017 BOX CULVERT Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $2,430 $2,430 $4,027 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 2,430 2,430 4,027 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER) EXPENDITURES 2,430 2,430 4,027 OTHER FINANCING SOURCES (USES) Transfers (out) Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $2,430 $2,430 4,027 FUND BALANCE (DEFICITS): Beginning of year 363,476 End of year $367,503 152 Variance Positive (Negative} $1,597 1,597 1,597 $1,597 CITY OF DUBLlN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES 1N FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 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 End of year Budgeted Amounts Original Final Actual 153 Variance Positive (Negative) CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES JN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2017 PUBLIC ART Budgeted Amounts Original Final Actual REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $15,640 $15,640 $42,721 Fines and forfeitures Developer fees 962,982 Other revenue 1,853 Special assessments Total Revenues 15,640 15,640 1,007,556 EXPENDITURES Current: General government Police Fire Public works Park and community services 157,645 157,645 81,747 Community development Total Expenditures 157,645 157,645 81,747 REVENUES OVER (UNDER) EXPENDITURES (142,005) (142,005) 925,809 OTHER FINANCING SOURCES (USES) Transfers (out) (512,046) (941,959) (246,353) Total Other Financing Sources (Uses) (512,046} {941,959} (246,353} NET CHANGE IN FUND BALANCES {$654,051} {$1,083,964} 679,456 FUND BALANCE (DEFICITS): Beginning of year 3,415,152 End of year $4,094,608 154 Variance Positive (Negative) $27,081 962,982 1,853 991,916 75,898 75,898 1,067,814 695,606 695,606 $1,763,420 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, 2017 MISCELLANEOUS SPECIAL REVENUE Budgeted Amounts Original Final Actual $179,000 $179,000 $139,718 1,690 1,690 5,645 2,411 2,411 8,280 183,101 183,101 153,643 35,338 75,244 75,210 35,338 75,244 75,210 147,763 107,857 78,433 {689,7832 {154,6252 Total Other Financing Sources (Uses) {689,7832 {154,6252 NET CHANGE IN FUND BALANCES $147,763 {$581,9262 (76,192) FUND BALANCE (DEFICITS): Beginning of year 575,062 End of year $498,870 155 Variance Positive (Negative) ($39,282) 3,955 5,869 (29,458) 34 34 {29,4242 535,158 535,158 $505,734 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, 2017 COMMUNITY DEVELOPMENT BLOCK GRANT Budgeted Amounts Original Final $82,202 $107,485 82,202 107,485 75,602 100,885 75,602 100,885 6,600 6,600 (6,6002 (6,6002 Actual $93,532 93,532 86,932 86,932 6,600 (6,6002 Variance Positive (Negative) ($13,953) {13,9532 13,953 13,953 Total Other Financing Sources (Uses) {6,6002 {6,6002 {6,6002 NET CHANGE IN FUND BALANCES FUND BALANCE (DEFICITS): Beginning of year End of year 156 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, 2017 HCD HOUSING RELATED PARKS GRANT Variance Budgeted Amounts Positive Original Final Actual (Negative} $232,075 $166,575 ($65,500) 232,075 166,575 {65,5002 232,075 166,575 {65,5002 {498,6052 {320,0292 178,576 Total Other Financing Sources (Uses) {498,6052 {320,0292 178,576 NET CHANGE IN FUND BALANCES {$266,5302 (153,454) $113,076 FUND BALANCE (DEFICITS): Beginning of year 99 955 Endofyear {$53,4992 157 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, 2017 1983-1 STREET LIGHTING MAINTENANCE DISTRICT Budgeted Amounts Original Final Actual $850 $850 $973 291,983 291,983 295,550 292,833 292,833 296,523 341,099 341,099 327,547 341,099 341,099 327,547 {48,2662 {48,2662 {31,0242 Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES {$48,2662 {$48,2662 (31,024) FUND BALANCE (DEFICITS): Beginning of year 168,886 Endofyear $137,862 158 Variance Positive (Negative) $123 3,567 3,690 13,552 13,552 17,242 $17,242 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, 2017 1983-2 STAGECOACH LANDSCAPE MAJNTENANCE DISTRICT Budgeted Amounts Original Final Actual $360 $360 $1,277 85,343 85,343 87,771 85,703 85,703 89,048 86,552 86,552 62,350 86,552 86,552 62,350 {8492 C8492 26,698 Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES {$8492 {$8492 26,698 FUND BALANCE (DEFICITS): Beginning of year 112,385 End of year $139,083 159 Variance Positive (Negative2 $917 2,428 3,345 24,202 24,202 27,547 $27,547 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) EXPENDI11JRES 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, 2017 1986-1 DOUGHERTY LANDSCAPE MAINTENANCE DISTRICT Budgeted Amounts Original Final Actual $860 $860 $2,750 139,586 139,586 192,617 140,446 140,446 195,367 138,885 138,885 73,030 138,885 138,885 73,030 1,561 1,561 122,337 Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $1,561 $1,561 122,337 FUND BALANCE (DEFICITS): Beginning of year 218,904 End of year $341,241 160 Variance Positive (Negative} $1,890 53,031 54,921 65,855 65,855 120,776 $120,776 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, 2017 1997-1 SANTA RITA LANDSCAPE MAINTENANCE DISTRICT Budgeted Amounts Original Final Actual $2,050 $2,050 $4,732 396,154 396,154 342,781 398,204 398,204 347,513 323,847 323,847 220,667 323,847 323,847 220,667 74,357 74,357 126,846 Total Other Financing Sources (Uses) NET CHANGE IN FUND BALANCES $74,357 $74,357 126,846 FUND BALANCE (DEFICITS): Beginning of year 389,641 End of year $516,487 161 Variance Positive (Negative2 $2,682 {53,373} {50,691} 103,180 103,180 52,489 $52,489 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, 2017 1999-1 EAST DUBLIN STREET LIGHTING MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative2 $1,170 $1,170 $6,918 $5,748 298,169 298,169 316,569 18,400 299,339 299,339 323,487 24,148 183,222 183,222 168,546 14,676 183,222 183,222 168,546 14,676 116,117 116,117 154,941 38,824 {351,4502 {364,0832 {8,9842 355,099 Total Other Financing Sources (Uses) {351,4502 {364,0832 {8,9842 355,099 NET CHANGE IN FUND BALANCES {$235,3332 {$247,9662 145,957 $393,923 FUND BALANCE (DEFICITS): Beginning of year 567,943 End of year $713,900 162 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 fmance necessary vehicle replacements. BUILDING REPLACEMENT This fund is an interest bearing Internal Service Fund established to fmance future major building component repair expenditures. EQUIPMENT REPLACEMENT This fund is an interest bearing Internal Service Fund established to fmance 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 information and technology costs, including staffmg. ENERGY EFFICIENCY This fund was established to account for the fmancing and construction of the Energy Efficiency Upgrade Capital Project. 163 ASSETS Current Assets: Cash and investments Accounts receivable Prep aids 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 (DEFICIT) Net Investment in capital assets Unrestricted Total Net Position CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF NET POSITION JUNE 30, 2017 Vehicle Building Replacement Replacement $3,393,460 $6,850,608 3,393,460 6,850,608 10,774,792 3,314,299 63,094,195 4,517,348 (3,306,567) (34,087,748) 1,210,781 43,095,538 4,604,241 49,946,146 1,210,781 43,095,538 3,393,460 6,850,608 $4:604:241 $49:946:146 164 Equipment Retiree Replacement HealthCare $4,295,519 $8,496 145,018 4,295,519 153,514 4,563 2,238,431 (1,301,925) 941,069 5,236,588 153,514 2,975 128,281 2,975 128,281 2,975 128,281 941,069 4,292,544 25,233 $5.233:613 $25:233 PERS Side Fund $159,616 159,616 159,616 (159,616) ($159.616) Information Technology $1,539,454 64,349 1,603,803 643,142 6,665 (714) 649,093 2,252,896 61,738 61,738 61,738 649,093 1,542,065 $2,191.158 Energy Efficiency $83,175 83,175 122,183 122,183 205,358 455,999 455,999 4,461,244 4,461,244 4,917,243 (4,795,060) 83,175 ($4, 711,885) 165 Total $16,162,216 8,496 209,367 16,380,079 10,774,792 4,084,187 63,094,195 6,762,444 (38,696,954) 46,018,664 62,398,743 64,713 128,281 455,999 648,993 4,461,244 159,616 4,620,860 5,269,853 41,101,421 16,027,469 $57,128,890 CITY OF DUBLIN INTERNAL SERVICE FUNDS CO:MBINJNG STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2017 Vehicle Building Equipment Re2lacement Re2lacement Re2Iacement OPERATING REVENUES Charges for services $528,048 $317,676 $840,670 Interest Other revenue 28,495 61 Total Operating Revenues 556,543 317,737 840,670 OPERATING EXPENSES Supplies and services 214,762 91,664 OPEB expenses Depreciation 375,423 2,111,345 115,319 Interest and fiscal charges Total Operating Expenses 590,185 2,111,345 206,983 Operating Income (Loss) (33,642} (1,793,608} 633,687 NONOPERATING REVENUES (EXPENSES) Interest income 36,551 70,225 43,294 Loss from sale of land {14,207} Total Nonoperating Revenues (Expenses) 22,344 70,225 43,294 Income (Loss) Before Transfers (11,298) (1,723,383) 676,981 Transfer in 300,000 Transfer (out) Net transfers 300,000 Change in Net Position (11,298) (1,423,383) 676,981 BEGINNING NET POSITION (DEFICIT) 4,615,539 51,369,529 4,556,632 ENDING NET POSITION (DEFICIT) $4,604,241. $49,946,146 $5,233,613 166 Retiree Health Care $1,573,886 610,662 2,184,548 2,184,548 2,184,548 1,376 1,376 1,376 1,376 23,857 $25,233 PERS Information Energy Side Fund Technology Efficiency Total $390,333 $1,439,857 $566,185 $5,656,655 913 913 22,248 661,466 390,333 1,462,105 567,098 6,319,034 592,400 898,826 2,184,548 714 2,602,801 136,867 136,867 593,114 136,867 5,823,042 390,333 868,991 430,231 495,992 18,207 169,653 (14,2072 18,207 155,446 390,333 887,198 430,231 651,438 300,000 (643,1422 {2092 (643,3512 {643,1422 (2092 {343,3512 390,333 244,056 430,022 308,087 (549,9492 1,947,102 {5,141,9072 56,820,803 ($159,6162 $2,191,158 {$4,711,8852 $57,128,890 167 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2017 Vehicle Building ReElacement ReElacement CASH FLOWS FROM OPERATING ACTMTIES Receipts from other funds $528,048 $317,676 Payments to suppliers and service providers (214,762) futerest Other revenues 28,495 61 Cash Flows from (used for) Operating Activities 341,781 317,737 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payments from other funds 300,000 Payments to other funds Cash Flows (used for) Noncapital Financing Activities 300,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (53,785) futerest paid on capital lease Capital lease repayment Cash Flows from Capital and Related Financing Activities {53,7852 CASH FLOWS FROM INVESTING ACTIVITIES futerest received 36,551 70,225 Cash Flows from fuvesting Activities 36,551 70,225 Net Cash Flows 324,547 687,962 Cash and investments at beginning of year 3,068,913 6,162,646 Cash and investments at end of year $3,393,460 $6,850,608 Reconciliation of operating income (loss) to net cash flows from operating activities: Operating income (loss) ($33,642) ($1,793,608) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 375,423 2,111,345 futerest and fiscal charges Change in assets and liabilities: Accounts receivable Prep aids Accounts payable and accruals Cash Flows from Operating Activities $341,781 $317,737 168 Equipment Retiree ReElacement Health Care $840,670 $1,565,390 (88,689) (2,518, 054) 610,662 751,981 {342,0022 128,281 128,281 (66,883) {66,8832 43,294 1,376 43,294 1,376 728,392 {212,3452 3,567,127 212,345 $4,295,519 $633,687 115,319 ($8,496) (40,725) 2,975 {292,7812 $751,981 {$342,0022 PERS Information Side Fund Technology $390,333 $1,439,857 (578,478) 22,248 390,333 883,627 (390,333) (673,070) (390,333) (673,070) (649,807) (649,807) 18,207 18,207 (421,043) 1,960,497 $1,539,454 $390,333 $868,991 714 (3,229) 17,151 $390,333 $883,627 Energy Efficiency $566,185 913 567,098 (209) (209) (209) (136,867) (429,109) (566,185) 704 82,471 $83,175 $430,231 136,867 $567,098 Total $5,648,159 (3,399,983) 913 661,466 2,910,555 428,281 (1,063,612) (635,331) (770,684) (136,867) (429,109) (1,336,660) 169,653 169,653 1,108,217 15,053,999 $16,162,216 $495,992 2,602,801 136,867 (8,496) (43,954) {272,655l $2,910,555 169 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 of land, located generally east of Fallon Road. Schaefer Ranch Geologic Hazardous Abatement District This assessment district was established in 2006, in accordance with a condition of approval for the Fallon Village development project. The District was formed to provide a mechanism for ongoing maintenance of open space areas within the development. The boundary of this assessment district encompasses approximately 500 acres of land, located at the westerly boundary of the City limits north of Interstate 580, and south of the unincorporated area of Alameda County. Fallon Village Annex/Jordan Ranch Geologic Hazard Abatement District This assessment district was established to account for the maintenance of open space areas within the Jordan Ranch development. On May 3, 2011 the City Council approved Resolution No. 52-11 which modified the boundaries of the Fallon Village District. The Jordan Ranch property was annexed into the Fallon Village Geologic Hazard Abatement District subject to a separate Engineers report. Fallon Crossing (North Tassajara) Geologic Hazard Abatement District This assessment district was established to account for the maintenance of open space areas in accordance with a condition of approval for the Fallon Crossings development project. The boundary of the District encompasses 68 acres of land located on the northeast side of Tassajara Road, about 2 Y4 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. 171 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2017 Balance Balance June 30, 2016 Additions Deductions June 30, 2017 Dublin Boulevard Extension Assessment District Assets Cash and investments $8,590 $95 $8,685 $8,590 $95 $8,685 Liabilities Due to bondholders $8,590 $95 $8,685 $8,590 $95 $8,685 Associated Community Action Program Assets Cash and investments $39,436 $5,202 $32,439 $12,199 $39,436 $5,202 $32,439 $12,199 Liabilities Accounts payable $1,103 $1,103 Due to trustee $39,436 4,099 $32,439 11,096 $39,436 $5,202 $32,439 $12,199 Fallon Village Geolo~p Hazardous Abatement District Assets Cash and investments $2,546,775 $1,391,953 $518,102 $3,420,626 Accounts receivable 3,995 5,147 3,995 5,147 $2,550,770 $1,397,100 $522,097 $3,425,773 Liabilities Accounts Payable $4,700 $93,540 $40,964 $57,276 Due to trustee 2,546,070 1,303,560 481,133 3,368,497 $2,550,770 $1,397,100 $522,097 $3,425,773 172 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2017 (Continued) Balance Balance June 30, 2016 Additions Deductions June 30, 2017 Schaefer Ranch Geologic Hazardous Abatement District Assets Cash and investments $2,458,695 $1,159,650 $442,098 $3,176,247 Accounts receivable 5,057 4,194 5,057 4,194 $2,463,752 $1,163,844 $447,155 $3,180,441 Liabilities Accounts Payable $1,330 $53,647 $33,370 $21,607 Due to trustee 2,462,422 1,110,197 413,785 3,158,834 $2,463,752 $1,163,844 $447,155 $3,180,441 Fallon Village Annex/Jordan Ranch Geologic Hazardous Abatement District Assets Due from trustee $2,721 $2,721 $2,721 $2,721 Liabilities Due to City $2,721 $2,721 $2,721 $2,721 Fallon Crossing (North Tassajara) Geologic Hazardous Abatement District Assets Cash and investments $237,718 $191,255 $80,665 $348,308 Accounts receivable 1,855 1,282 1,855 1,282 $239,573 $192,537 $82,520 $349,590 Liabilities Accounts Payable $332 $7,206 $5,501 $2,037 Due to trustee 239,241 185,331 $77,019 347,553 $239,573 $192,537 $82,520 $349,590 173 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30, 2017 (Continued) Balance Balance June 30, 2016 Additions Deductions June 30, 2017 Totals -All Agency Funds Assets Cash and investments $5,291,214 $2,748,155 $1,073,304 $6,966,065 Accounts receivable 10,907 10,623 10,907 10,623 Due from trustee 2,721 2,721 $5,304,842 $2,758,778 $1,086,932 $6,976,688 Liabilities Accounts payable $6,362 $155,496 $79,835 $82,023 Due to City 2,721 2,721 Due to trustee 5,287,169 2,603,187 1,004,376 6,885,980 Due to bondholders 8,590 95 8,685 $5,304,842 $2,758,778 $1,086,932 $6,976,688 174 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. 175 Primary government: Governmental activities: Net investment in capital assets Restricted Unrestricted Total primary government 2008 City of Dublin Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) 2009 2010 $411,619,671 $423,474,384 $436,857,107 48,572,719 36,906,687 25,004,384 68,456,077 66,597,197 70,203,471 $528,648,467 $526,978,268 $532,064,962 Data Source: City of Dublin Administrative Services Department 2011 2012 $433,779,703 $433,548,888 21,453,867 36,714,724 76,303,907 86,063,259 $531,537,477 $556,326,871 Note: The City adjusted certain beginning balances during fiscal year 2014-2015. Financial data shown for proceeding years were not adjusted for the presentation. 176 2013 $432, 722,323 52,548,095 99,084,771 $584,355,189 2014 $445,529,366 60,808,540 97,918,858 $604,256, 764 2015 $444,832,546 74,738,217 107,176,361 $626,747,124 2016 $460,963,292 97,592,438 111,725,077 $670,280,807 177 2017 $487,123,214 94,745,655 120,464,219 $702,333,088 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 City of Dublin Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) 2008 2009 2010 $7,790,286 $8,721,545 $8,396,199 23,282,634 23,880,635 23,797,696 20,196,496 20,368,655 15,969,371 1,689,353 1,869,428 3,615,077 12,200,759 11,563,136 10,757,355 8,276,993 7,175,272 5,112,469 73,436,521 73,578,671 67,648,167 216,334 215,711 219,386 1,301,328 1,545,935 1,600,890 13,794 598,542 8,078,369 3,301,877 3,050,719 2,798,092 1,722,627 1,719,501 2,101,867 5,599,417 4,720,221 3,775,102 2,747,497 2,245,945 2,229,043 37,393,930 14,599,068 12,254,443 52,296,804 28,695,642 33,057,192 ($21,139,717) ($44,883,029) ($34,590,975) 22,229,039 23,311,587 22,287,783 14,225,661 12,832,417 12,183,267 3,504,501 2,180,846 3,201,219 197,245 160,242 141,221 4,399,908 4,266,601 758,016 1,202,074 461,137 1,106,163 45,758,428 43,212,830 39,677,669 $24,618,711 ($1,670,199) $5,086,694 Data Source: City of Dublin Administrative Services Department 178 2011 2012 $9,322,322 $10,116,219 24,413,496 26,781,283 10,142,946 6,709,217 12,749,042 146,204 9,304,429 9,804,128 5,482,552 6,089,415 71,414,787 59,646,466 225,109 140,418 1,821,404 1,061,352 450,937 738,662 2,874,952 3,063,223 2,214,407 1,909,812 5,546,417 9,051,970 2,220,247 1,008,318 15,745,614 23,668,070 31,099,087 40,641,825 ($40,315, 700) ($19,004,641) 21,918,484 22,246,360 12,969,119 14,996,932 3,798,515 4,295,675 250,974 536,047 865,719 1,079,419 1,389,349 40,552,558 43,794,035 $236,858 $24,789,394 2013 2014 2015 2016 2017 $10,265,476 $17 ,665,221 $10,774,480 $19,280,680 $13,549,013 15,325,113 18,316,420 17,080,942 12,198,769 14,725,476 13,687,195 15,336,225 13,883,008 18,351,543 12,149,716 14,625,459 11,193,876 679,313 555,564 864,697 26,846,045 27,770,111 7,241,263 4,305,390 3,753,875 4,057,796 10,772,868 9,018,161 9,979,877 9,169,788 5,713,196 11,410,946 14,249,950 68,859,404 71,986,467 72,176,812 92,797,553 88,977,216 142,353 153,544 5,777,971 5,209,378 5,402,925 399,802 362,054 322,231 1,746,581 1,633,056 1,426,973 2,978,235 2,698,767 3,386,621 3,009,383 2,931,553 2,950,625 2,482,060 2,164,085 470,063 484,801 3,422,782 3,631,344 2,463,146 2,753,911 9,540,241 10,393,367 7,657,467 13,217,027 9,334,477 1,135,050 1,674,815 955,677 1,629,137 8,008,289 28,689,753 20,914,994 21,931,981 38,433,119 21,133,748 48,345,448 42,170,861 44,457,097 66,114,091 51,965,889 ($20,513,956) ($29,815,606) ($27,719,715) ($26,683,462) ($37 ,011,327) 23,590,102 25,286,308 29,437,951 33,598,601 36,964,785 1,264,204 1,359,212 1,416,721 15,359,340 17,833,314 19,211,823 22,070,547 21,186,333 5,054,257 5,427,627 6,159,654 6,606,016 6,834,545 (399,590) 853,147 550,272 2,937,999 (710,595) 4,938,165 316,785 3,163,387 3,644,670 3,371,819 48,542,274 49,717,181 59,787,291 70,217,045 69,063,608 $28,028,318 $19,901,575 $32,067 ,576 $43,533,583 $32,052,281 179 City of Dublin Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2008 2009 General Fund Reserved $5,623,014 $5,343,610 Unreserved, designated for: Advance to TVTD W. BART station contribution Affordable Housing 1,000,000 1,000,000 Authorized expenditures 42,181,292 34,474,209 Capital improvements 8,884,334 11,049,175 Cash Flow & Operation Stability Catastrophic Loss & Business Recovery Capital Improvements Projects Carryover Compensated Absences 744,041 791,582 Economic Uncertainty 2,970,722 5,868,847 Emergency Communication System 210,000 Fire Retiree Medical 500,000 750,000 Innovation & New Opportunities Investment Market Value Adjustment 1,508,906 2,334,061 Operation Carryover 301,874 Service Continuity Obligation Unreserved, undesignated Non-Spendable Restricted Committed Assigned Unassigned Total general fund $63,412,309 $62,123,358 All Other Governmental Funds Reserved $50,789,419 $34,570,414 Unreserved, designated, reported in: Special revenue funds Capital projects funds Un designated (1,837,021) (1,841,336) Non-Spendable Restricted Committed Assigned Unassigned Total all other governmental funds $48,952,398 $32, 729,078 Total All Governmental Funds $112,364,707 $94,852,436 Data Source: City of Dublin Administrative Services Department 2010 $5,922,446 1,000,000 1,000,000 3,960 7,394,088 8,860,000 8,420,000 203,507 802,311 5,868,847 1,000,000 4,500,000 13,000,000 1,516,569 171,100 $59,662,828 $25,004,384 (3,168,929) $21,835,455 $81,498,283 Note: All Other Governmental Funds includes the City's Major and Non Major Capital Project and Special Revenue Funds, excluding the General Fund. 2011 $4,096,768 27,893,755 17,407,053 14,745,685 $64,143,261 $21,453,867 (1, 735,988) $19,717,879 $83,861,140 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. 180 2012 $3,433,886 24,176,650 22,080,677 15,072,535 $64,763,748 $38,073,638 (1,358,914) $36,714,724 $101,478,472 2013 $2,836,130 500,000 36,020,171 23,912,896 14,047,932 $77,317, 129 $53,646,702 (1,098,607) $52,548,095 $129,865,224 2014 $2,465,678 500,000 34,124,267 29,259,333 13,228,484 $79,577, 762 $61,710,448 (923,409) $60,787,039 $140,364,801 2015 $1,475,691 500,000 38,531,179 35,875,264 21,324,360 $97,706,494 $75,646,848 21,743 (930,131) $74,738,460 $172,444,954 2016 $729,883 579,000 38,928,755 39,078,695 29,867,693 $109,184,026 $84,453,929 13,138,509 $97,592,438 $206,776,464 181 2017 $198,878 1,762,000 36,213,714 50,126,807 34,114,263 $122,415,662 $82,686,743 11,808,233 $94,494,976 $216,910,638 City of Dublin Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2008 2009 2010 2011 2012 Revenues: Property taxes $22,229,039 $23,306,302 $22,286,209 $22,067,074 $22,398,847 Taxes other than property 18,188,593 15,436,466 15,783,099 17,210,947 19,761,015 Intergovernmental 3,431,314 2,393,153 7,951,237 3,946,271 3,962,572 Licenses and permits 1,784,644 1,623,029 2,260,364 2,752,748 4,501,736 Charges for services 8,101,935 7,759,628 7,100,403 8,743,460 10,331,501 Investment income 6,101,736 5,597,303 1,475,308 952,819 1,068,138 Use of property 335,151 989,081 1,491,413 978,642 659,857 Fines and forfeitures 360,496 318,737 312,778 303,595 284,993 Developer fees 18,226,041 1,875,841 4,387,339 9,390,001 15,965,329 Special assessments 797,520 826,717 868,348 904,739 944,455 Other revenues 2,497,249 3,312,774 1,778,477 4,135,091 4,509,762 Total revenues 82,053,718 63,439,031 65,694,975 71,385,387 84,388,205 Expenditures Current: General government 5,590,247 6,047,115 8,957,744 7,935,407 7,001,850 Police Fire Public works Parks and community service Economic development Public safety 23,629,954 23,951,223 24,241,160 24,546,456 26,298,962 Highways and streets 2,719,532 3,168,513 2,985,311 3,030,540 2,768,068 Health and welfare 1,706,918 1,888,631 3,653,297 12,775,536 4,422,468 Culture and leisure services 7,207,896 7,621,663 7,267,805 7,223,808 8,248,229 Community development 8,335,105 7,364,651 5,300,211 5,609,603 7,362,732 Capital outlay: General 411,293 4,221,956 742,754 599,965 6,641,674 Health and welfare Community improvements 218,058 68,236 82,333 328,418 213,777 Culture and leisure 996,669 Parks 8,820,229 9,409,692 10,706,350 3,809,723 Streets 11,042,816 13,742,919 13,762,167 4,513,072 2,959,555 Debt service: Principal Total expenditures 69,682,048 77,484,599 77,699,132 70,372,528 66,913,984 Excess (deficiency ofrevenues over (under) expenditures 12,371,670 (14,045,568) (12,004,157) 1,012,859 17,474,221 Other financing sources (uses): Transfers in 77,528 26,232 25,777,410 9,163,360 10,898,009 Transfers out (77,528) {26,232} {25,777,410} {9,163,360} {10,754,898} Total other financing sources (uses) 143,111 Net change in fund balances $12,371,670 ($14,045,568) ($12,004, 157) 1,012,859 $17,617,332 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 182 2013 2014 2015 2016 2017 $23,742,336 $25,448,254 $29,437,951 $33,598,601 $36,964,784 20,915,025 23,769,133 25,371,476 28,676,662 28,020,877 4,534,748 2,574,159 3,245,822 3,303,521 9,352,861 5,224,932 5,944,985 6,025,685 6,139,420 7,770,259 11,979,079 12,326,848 13,737,934 13,846,381 14,185,768 (185,467) 1,101,634 1,071,936 3,689,940 168,792 580,507 1,591,784 2,352,810 6,751,864 1,539,669 326,027 323,601 320,629 290,871 260,220 19,545,692 15,757,068 18,578,172 37,240,622 19,454,100 980,775 1,025,239 1,264,201 1,359,214 1,416,721 9,134,201 2,712,998 3,473,012 1,323,855 1,724,880 96,777,855 92,575,703 104,879,628 136,220,951 120,858,931 7,600,102 8,411,507 10,663,140 20,110,958 12,421,915 15,697,432 17,886,990 17,183,853 11,930,245 12,265,614 13,442,239 8,481,686 8,616,323 13,433,983 9,731,003 10,791,185 8,934,718 808,272 604,777 891,602 26,643,549 27,381,497 3,096,498 3,042,476 4,149,599 4,379,634 8,919,816 9,349,729 8,586,129 9,102,734 6,059,180 11,348,674 11,652,735 8,866,096 13,316,472 1,241,494 666,478 1,922,766 81,234 21,497 68,190 117,104 3,854 2,324,586 9,451,657 4,742,328 23,469,847 26,113,810 4,946,527 2,403,926 3,568,142 3,652,808 10,516,675 75,214,136 86,861,129 72,991,112 109,530,758 116,518,150 21,563,719 5,714,574 31,888,516 26,690,193 4,340,781 16,338,838 25,192,268 9,625,456 27,912,037 38,313,026 (9,515,805) (20,385,523) (9,455,561) (29,903,351) (37,969,675) 6,823,033 4,806,745 169,895 (1,991,314) 5,793,393 $28,386, 752 $10,521,319 $32,058,411 $24,698,879 $10,134,174 0.0% 0.0% 0.0% 0.0% 0.0% 183 Fiscal Year Ended Residential June30 Proeer!l'. 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 6,3 78,930,469 2014 7,135,260,308 2015 8,431,051,125 2016 9,662,162,719 2017 10,563,641,612 CITY OF DUBLJN. CALIFORNIA Assessed Value of Taxable Property Last Ten Fiscal Years Real Proeer!l'. Commercial Industrial Unsecured/ Less: Proeer!l'. Proeer!l'. Other Proeer!l'. Exemetions $1,112,837,055 $171,673,012 $1,072,734,321 (78,188,899.00) 1,241,301,664 198,082,746 1,032,449,487 (36,478,516.00) 1,326,481,267 212,939,326 983,426,713 (49,873,361.00) 1,285,382,821 209,573,141 843,686,092 (115,875,189.00) 1,263,207,583 246,434,460 859,683,607 (120,225,737.00) 1,330,147,064 245,481,519 948,525,966 (112,296,063.00) 1,336,760,537 246,334,563 1,035,990,618 (172,869,596.00) 1,391,578,857 274,410,187 1,138,571,747 (185,639,690.00) 1,481,865,501 277,588,684 1,261,568,728 (152,705,687.00) 1,572,348,815 276,986,936 1,412,347,150 (151,208,054.00) 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 $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 13,674,116,459 ( 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 0.2385% 0.2385% 0.2386% 0.2386% 0.2386% 0.2380% 0.2373% 0.2367% 0.2365% 0.2363% (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. 184 This Page Left Intentionally Blank Fiscal Year 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Source: CITY OF DUBLIN. CALIFORNIA Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate per $100 of assessed value) Cit~ Direct Rates Overlaf!f!ing Rates (l} Castro Valley Chabot-Las Positas Basic Total Bay Area Unified Community Levy Direct Raf!id Transit School Bonds College Boards 1.00000 0.23850 0.00760 0.09720 0.01640 1.00000 0.23850 0.00900 0.09690 0.01830 1.00000 0.23860 0.00570 0.10230 0.01950 1.00000 0.23860 0.00310 0.10040 0.02110 1.00000 0.23860 0.00410 0.09890 0.02140 1.00000 0.23796 0.00430 0.09240 0.02190 1.00000 0.23730 0.00750 0.08510 0.02140 1.00000 0.23669 0.00450 0.08520 0.02170 1.00000 0.23650 0.00260 0.00000 0.01980 1.00000 0.00236 0.00800 0.00000 0.02460 Dublin Unified Bonds lA&B 0.08500 0.07320 0.08160 0.10110 0.09700 0.09930 0.11470 0.10770 0.07670 0.09720 HDL Coren & Cone and Alameda County Assessor Combined Tax 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. 186 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 0.00800 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 0.2818 0.00320 0.03330 0.00000 1.16630 0.2818 187 TaxEa~er Avalon Dublin Station II LP $ Trust NOIP Dublin LP Lennar Homes California Inc 4800 Tassajara Road Apts Invest LLC Dublin Station Owner LLC Dublin Corporate Ctr Acquisitions LLC Essex Dublin Owner LP Ross Dress for Less LLC Toll California VIII LP Bere Island Properties I LLC Et. Al. Shops at Waterford LLC Chang S. Lin SR Structured Lot Options I LLC Start HQ 2003 Toll CA II LP Kaiser Foundation Hospitals Bere Island Properties I LLC Bit Holdings Sixty Three Inc Tishman Speyer Archstone-Smith Sorrento Dublin Ranch I LP Subtotal $ CITY OF DUBLIN, CALIFORNIA Principal Property Tax Payers Current year and Nine Years Ago 2016-17 Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value 171,200,560 1 1.27% 158,226,898 2 1.17% 126,827,939 3 0.94% 117,665,619 4 0.87% 111,322,802 5 0.83% 104,150,110 6 0.77% 103,468,053 7 0.77% 101,458,011 8 0.75% 99,500,000 9 0.74% 90,725,055 10 0.67% $ 1,184,545,047 8.78% $ Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls 188 2007-08 Percentage of Total City Taxable Taxable Assessed Assessed Value Rank Value 125,653,003 1 1.77% 108,041,116 2 1.31% 106,000,000 3 1.28% 103,000,000 4 1.12% 73,267,311 5 0.89% 73,002,216 6 0.88% 80,662,173 7 0.88% 68,606,578 8 0.75% 66,976,050 9 0.73% 52,376,055 10 0.63% 857,584,502 10.24% 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 2008 $22,963,077 $22,446,3 86 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 35,304,627 34,734,843 98.39% 357,472 35,092,315 99.40% 2017 38,529,558 38,100,547 98.89% 335,955 38,436,502 99.76% Source: Alameda County Assessor Office 189 Fiscal Year Ended June30 200~ 2009 2010 2011 2012 2013 2014 2015 2016 2017 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 $6,755,824 6,128,806 6,128,806 5,749,811 5,749,811 5,346,352 5,346,352 10,367,285 10,367,285 Total Primary Governments $6,755,827 6,128,806 5,749,811 5,346,352 10,367,285 Percentage of Personal income NIA 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. 190 CITY OF DUBLIN, CALIFORNIA Direct and Overlapping Debt June 30, 2017 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 ofDublin 1915 ActBonds 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 6/30/2017 $891,135,000 536,465,000 339,242,619 123,590,000 942,771 856,742,500 27,719,489 17,625,000 Percentage Applicable to Estimated Share of City ofDublin (!) Overlapping Debt 2.1270% $18,954,441 12.449% 66,784,528 99.971% 339,144,239 3.213% 3,970,947 100.00% 100.00% 942,771 $429 '796,926 5.409% 46,341,202 5.409% 1,499,347 0.193% 34,016 $47,874,565 $477,671,491 $477,671,491 (l) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by detennining 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. <2l Excludes tax and revenue anticipation notes, enterprise revenue and mortgage revenue and non-bonded capital lease obligations. 191 CITY OF DUBLIN. CALIFORNIA Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2007-08 2008-09 2009-10 2010-11 Debt limit $308,541,411 $325,318,675 $314,675,089 $311,498,340 Total net debt applicable to limit Legal debt margin $308,541,411 $325,318,675 $314,675,089 $311,498,340 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. 192 0.0% Legal Debt Margin Calculation for Fiscal Year 2016-17 Assessed value (net) -June 30, 2017 (1) $13,674,116,459 Debt limit: 15% of assessed value 2,051,117,469 Less total bonded debt, general obligation Legal debt margin (2) $2,051,117,469 Conversion Percentage for Calculation of Debt Limit (3) 25% $512,779,367 Fiscal Year 2011-2012 2012-13 2013-14 2014-15 2015-16 2016-17 $318,144,981 $333,865,688 $361,622,926 $416,774,836 $469,892,998 $512,779,367 $318,144,981 $333,865,688 $361,622,926 $416,774,836 $469,892,998 $512,779,367 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 193 Fiscal Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sources: CITY OF DUBLIN, CALIFORNIA Demographic And Economic Statistics Last Ten Calendar Years (Dollars in Thousands) Per Capita City Personal Personal Unemployment Population (1) Income, in thousands (1) Income (1) Rate (2) $43,563 $1,904,687 $43,723 2.8% 46,869 2,077,720 44,330 3.7% 47,953 2,034,463 42,426 6.5% 45,672 1,700,094 34,823 6.9% 46,785 1,677,944 35,865 6.3% 49,890 1,819,688 36,474 4.2% 53,462 2,321,908 43,431 3.5% 54,695 2,333,289 42,660 3.6% 57,349 2,562,296 44,679 2.9% 59,686 2,836,816 47,529 2.7% (1) US Census Bureau, most recent estimates July 1, 2016 (2) California Department of Finance, most recent data available January 2016 (3) League of California Cities 194 Rankin Size of California Cities (3) 184 180 179 179 182 175 181 185 156 153 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 (1) (1) (1) Banlc DeEosits (2) Source: 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 2017 2806 177,500,725 308,916,668 1) City of Dublin Community Development Department 2) Findley Reports, Inc Bank Deposits represents the amount of cash deposits held by financial institutions within the city annually, Jan thru Dec. 195 $981,685,000 1,094,869,000 1,051,570,000 1,281,183,000 NIA NIA NIA NIA NIA NIA CITY OF DUBLIN, CALIFORNIA Principal Employers Current Year and Prior Year (Dollars in thousands) 2016 Estimated Number of EmElo~er EmElo~ees Rank United States Government & Federal Correction Institute 2,100 1 Dublin Unified School District 915 2 County of Alameda 325 6 SAP (Formerly: Sybase Corporation) 700 3 Ross Stores Headquarters 500 4 Zeiss Meditec 500 4 Callidus Cloud 350 5 City of Dublin 237 9 Target Stores 350 5 De Silva Gates Construction 300 7 Safeway 280 8 Subtotal 6,557 Total City Day Population Source: City of Dublin Economic Development Department 196 2017 Estimated Number of Em£loyees . Rank 2,100 1 975 2 860 3 NIA 800 4 481 5 400 6 377 7 350 8 300 9 280 10 6,923 This Page Left Intentionally Blank CITY OF DUBLIN CALIFORNIA Full-Time Equivalent City and Contract Government Employees by Function Last Ten Fiscal Years Ado~ted for Fiscal Year Ended June 30 2008 2009 2010 2011 2012 Function General government City Manager 6.50 6.50 6.00 6.00 6.50 Administrative Services 12.00 12.00 11.50 11.50 11.50 Central Services & Building Management 3.51 3.52 3.18 3.32 3.57 Public Safety Police 61.00 61.00 61.00 59.00 59.00 Fire 40.75 40.78 39.77 39.74 39.64 Disaster Preparedness 0.50 0.50 0.50 0.46 0.46 Transportation Public Works 8.50 8.50 6.45 5.45 5.45 Streets Maintenance 10.73 9.93 9.18 9.85 9.85 Health and welfare Environmental 2.50 2.50 3.00 Housing 1.75 2.90 3.20 3.00 2.25 Waste Management 0.33 1.33 0.33 0.33 0.33 Culture and leisure services Parks Community Services 15.50 16.00 16.60 15.60 15.55 Park Maintenance 9.55 9.92 9.65 8.94 9.36 Parks/ Facilities Management 2.00 2.00 2.00 2.00 2.25 Library Services 0.45 0.43 0.39 0.42 0.42 Heritage & Cultural Arts 2.53 2.49 2.47 3.59 3.26 Community Development Planning & Building 32.50 27.10 19.05 19.25 20.95 Economic Development 1.00 1.50 1.50 1.50 2.50 Engineering 13.35 12.35 9.00 8.00 9.00 Total 222.45 218.75 204.27 200.45 204.84 Source: City of Dublin Administrative Services Department Note: Include Full Time, Part Time, Temporary, and Contract Employees 198 Adopted for Fiscal Year Ended June 30 2013 2014 2015 2016 2017 6.50 6.50 6.34 6.34 7.34 11.50 11.75 11.75 11.75 11.75 3.09 3.45 3.95 4.20 4.93 59.00 60.00 59.00 61.00 61.00 39.64 39.64 39.64 39.91 39.99 0.59 0.59 0.33 0.33 0.33 5.45 5.48 5.88 5.45 6.45 10.08 10.32 11.60 14.10 16.25 2.59 2.59 1.50 1.50 3.00 2.25 2.50 2.50 2.56 1.75 1.08 1.08 1.83 1.83 0.33 16.25 15.50 16.81 16.10 17.80 10.10 11.65 13.07 15.55 15.68 2.25 3.45 4.30 4.96 4.74 0.37 0.37 0.38 0.38 0.42 3.70 5.92 4.40 3.50 4.30 22.45 23.45 24.45 24.64 26.39 2.50 3.50 3.50 3.50 3.50 9.00 9.00 8.00 8.00 7.75 208.39 216.74 219.23 225.60 233.70 199 CITY OF DUBLIN CALIFORNIA Operating Indicators by Function/Program Last Ten Fiscal Years Fiscal Year Function/Program 2008 2009 2010 2011 Police: Calls for Service 41,652 38,983 38,125 39,474 Citations Issued 11,768 7,086 10,101 9,023 Arrests 2,021 1,620 1,556 1,624 Fire: Emergency calls 1,978 1,969 1,999 2,244 Inspections 2,213 1,952 3,576 2,833 Building Plan Reviews and Consultations 922 511 474 498 Public Works: Bike Path Maintenance (hours) 775 775 697 603 Street Sign Maintenance (number of signs) 135 74 ·325 258 Curb Painting (linear feet) 2,468 2,395 6,607 5,464 Replace Street Asphalt (square feet) 33,000 29,000 30,000 57,000 Street Sweeping (curb miles) 6,075 6,341 5,083 5,294 Parks and Community Services: Museum Visitors 2,225 2,040 3,530 3,680 Afterschool Recreation (participants/day) 180 167 176 240 Preschool Classes Participants 399 402 690 628 Youth Basketball League Participants 570 591 772 710 Senior Center Average Daily Attendance 185 190 198 206 Community Development: Planning Applications 55 64 62 66 Building Permits 1,333 1,101 1,345 1,471 Building Inspections 25,602 12,302 8,933 11,308 Source: City of Dublin 200 Fiscal Year 2012 2013 2014 2015 2016 2017 38,580 34,966 34,567 32,496 35,005 38,688 9,229 8,699 8,530 7,175 7,087 7,164 1,542 1,419 1,934 1,091 1,225 1,315 2,323 2,688 2,859 2,667 2,734 2,848 3,308 3,538 3,664 3,948 4,304 4,141 1,319 1,492 1,561 1,072 1,633 1,654 625 668 749 416 799 695 313 205 426 368 510 359 6,523 6,400 5,808 32,512 2,922 3,846 26,000 37,000 18,112 15,800 31,000 73,436 5,519 5,901 5,931 5,953 5,993 6,026 4,415 8,612 8,256 5,272 3,591 3,525 27 228 322 364 363 367 610 571 430 327 335 158 729 812 911 994 1,074 1,156 217 211 220 233 236 274 62 77 59 56 52 58 2,110 2,425 2,443 2,068 2,812 2,806 15,961 26,045 22,345 20,197 20,784 25,186 201 CITY OF DUBLIN. CALIFORNIA Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year 2008 2009 2010 Function/Program Public safety: Police stations 1 1 Fire stations 3 3 Public works: Street Lights 4,193 4,479 Miles of Streets 93 103 Miles of curbs 217 218 Traffic Signals 79 81 City Street Trees 6,084 6,499 City Landscape (acres) 45 45 Parks and recreation: Number of Community Facilities 7 7 Number of City Parks 16 16 Acres of City Parks 122 201 Acres of Open Space 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. 202 1 3 4,526 105 222 85 7,054 57 7 16 201 125 2011 3 3,780 113 223 85 7,418 57 7 18 209 125 Fiscal Year 2012 2013 2014 2015 2016 2017 1 1 1 1 1 1 3 3 3 3 3 3 4,281 4,354 4,513 4,520 4,530 4,540 115 116 120 120 120 127 237 242 248 248 248 254 89 91 93 93 94 95 7,268 7,408 7,477 7,521 8,556 8,526 65 67 69 70 74 74 7 7 7 6 6 7 18 18 20 20 20 18 209 209 220 220 220 277 125 125 125 125 125 125 203 Business Name Barnes & Noble Bed Bath & Beyond Best Buy Dick's Sporting Goods Dublin Auto Group Dublin Honda Dublin Hyundai Dublin Kia Dublin Mazda Dublin Nissan Dublin Toyota Dublin Volkswagen Fallon Gateway Chevron Graybar Electric HD Supply Lowes Marshalls Nordstrom Rack REI Safeway Safeway Gas Target Tesla TJMaxx Toys R Us CITY OF DUBLIN, CALIFORNIA Top 25 Sales Tax Producers 2016-17 Business Category Stationery/Book Stores Home Furnishings Electronics/ Appliances Stores Sporting Goods/Bike Store Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Service Stations Electrical Equipment Lumber/Building Materials Lumber/Building Materials Family Apparel Family Apparel Sporting Goods Grocery/Liquor Store Service Stations Discount Department Store Motor Vehicle Dealer Family Apparel Specialty Stores Source: Hinderliter, de Llamas & Associates, State Board of Equalization 204 General Date of Incorporation Form of Government CITY OF DUBLIN. CALIFORNIA Miscellaneous Statistical Data June 30, 2017 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 Heritage Center Dublin Public Library Shannon Community Center Emerald Glen Activity Center The Wave (Aquatics Facility) Source: City of Dublin 205 February 1, 1982 Council/ Manager 59,686 26,916 233.70 14.91 18 277 125 7 2 1 1 1 9,958 1 61.00 3 39.99 1 1 3 1 1 6 1 This Page Left Intentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS FOR THE YEAR ENDED JUNE 30, 2017 This Page Left Intentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS For the Year Ended June 30, 2017 Table of Contents PaLye Memorandum on Internal Control. ................................................................................................... l Schedule of Significant Deficiencies ......................................................... ..............................3 Scheduleof Other Matters .......................................................................... ..............................5 Schedule of Prior Year Other Matters ....................................................... ............................... 7 RequiredCommunications .................................................................................. ..............................9 SignificantAudit Findings ........................................................................ ............................... 9 AccountingPolicies ............................................................................. ............................... 9 Unusual Transactions, Controversial or Emerging Areas ................. .............................10 AccountingEstimates .......................................................................... .............................10 Disclosures.......................................................................................... .............................11 Difficulties Encountered in Performing the Audit ............................ ............................... 11 Corrected and Uncorrected Misstatements ...................................... ............................... 11 Disagreements with Management ....................................................... .............................12 Management Representations ............................................................. .............................12 Management Consultations with Other Independent Accountants . .............................12 Other Audit Findings and Issues ........................................................ .............................12 Other Information Accompanying the Financial Statements ................. .............................12 This Page Left Intentionally Blank MEMORANDUM ON INTERNAL CONTROL To the City Council of the City of Dublin Dublin, California MAZIE In planning and performing our audit of the basic financial statements of the City of Dublin as of and for the year ended June 30, 2017, 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. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore material weaknesses or significant deficiencies may exist that were not identified. 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. However, as discussed below, we identified certain deficiencies in internal control that we consider to be significant deficiencies. 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. We did not identify any deficiencies in internal control that we consider to be material weaknesses. 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. We consider the deficiencies in internal control included on the Schedule of Significant Deficiencies to be significant deficiencies. 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 financial statements and, accordingly, we express no opinion on them. This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass - through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties. %a, 1.�VaA& Pleasant Hill, California November 12, 2017 T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 1 Emaze@mazeassociates.com Pleasant Hill, CA 94523 w mazeassocoatcs.corn This Page Left Intentionally Blank CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF SIGNIFICANT DEFICIENCIES 2017 -01 Parks and Community Services System Implementation and Cash Deposit Worksheets Criteria: When financial modules are not interfaced with the general ledger, proper reconciliations must be done to ensure the proper amounts are recorded in the general ledger. Any discrepancies found during reconciliation must be immediately followed up and resolved. Condition: The Parks and Community Services Department (PCS) uses a software application that is separate from the City's financial system in recording revenue collection. The current procedures required PCS to daily reconcile revenue collected with its system before submittal of the revenue and revenue reports to the Administrative Services Department. In examining the City's March 2017 bank reconciliation, we noted five deposits related to the PCS system that were withheld by the City due to discrepancies between revenue reported in the revenue report and actual revenue collected. These five deposits (one from January 2017, two from February 2017, and two from March 2017) were subsequently deposited in April 2017 when the discrepancies were resolved. In examining the City's April 2017 bank reconciliation, we noted another four deposits related to the PCS system that were withheld by the City due to the same reason. These four deposits (two from March 2017 and two from April 2017) were subsequently deposited in May 2017 when the discrepancies were resolved. On the April 2017 bank reconciliation, we also noted a stop payment that happened in February 2017 but was not posted to the PCS' system until May 2017. In addition, we reviewed the Daily Cash Over /(Short) report for the month of June 2017 for The Wave, a new cash collection site of the City. We noted that for twelve days in June, this site had a cash overage. For fifteen days in June, this site had a cash shortage. The net overage (i.e. actual collection was higher than what was reported in the system) for the month amounted to $1,339.60. Cause: It appears that the primary cause for the cash deposit discrepancies is related to the PCS's software application, which was implemented in January 2017. Since implementation, the City has experienced significant connectivity problems when processing payments between PCS's software and the third party payment processor. The connectivity issues have resulted in discrepancies between informational reports generated from PCS's software system and actual payments made to the third party payment processor. For example, we were told by City staff that loss of connection would result in duplicate transactions recorded in the system. In addition, while daily Deposit Worksheets were prepared by the staff at The Wave for the month of June, it did not appear that the Worksheets were reviewed by a second employee as we only saw one set of staff initial on the Worksheets. CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF SIGNIFICANT DEFICIENCIES Effect: The implementation of the PCS's software application, connectivity issues, and the apparently lack of review have resulted in unbalanced "Deposit Worksheets," multiple "timing adjustments" reflected in the City's bank reconciliation, and delay in Finance's month -end close. These items increased the risk of errors or misstatements going undetected and/or uncorrected in a timely manner. Recommendation — We recommend the City work with the software company to improve the connectivity issues. If the system is deemed unreliable in recording revenue transactions, the City should look for alternative ways in logging revenue received. Any discrepancies noted during the daily reconciliation should be followed up immediately before the revenue and revenue reports are submitted to the Administrative Services Department. In addition, the daily reconciliation should be reviewed by a second employee who does not handle revenue collection at that site. Management Response: Finance Staff completed each month's bank reconciliation with pending PCS items noted, which included discrepancies related to credit card processing and cash reporting at The Wave. The City is working on process improvements in both these areas, as follows: Credit Card Processing Information Services (IS) Staff have been working directly with both the recreation software provider and the credit card payment processor to determine the reason for the disconnect between those two systems and implement a solution. IS Staff have also installed new credit card machines in various City locations, which have resulted in some improvement in the transactions. Finance is also evaluating alternate third party solutions to be deployed before the opening of the next season at The Wave. Cash Handling/Reporting During the facility's opening season, Finance Staff conducted an on -site audit of cash handling procedures at The Wave, and delivered the findings to PCS Staff, along with recommendations to improved processes. Finance will continue to conduct unannounced audits of the facility throughout the current fiscal year. In addition, PCS Staff will perform a final level of review before transmitting reports to Finance. .Finally, Finance Staff will receive training in the recreation software in order to provide another level of reviewing and reporting as needed. 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 two years. We have cited them here to keep you abreast of developments: Effective in fiscal year 2017 -18: GASB 75 – Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for postemployment benefits other than pensions (other postemployment benefits or OPEB). It also improves information provided by state and local governmental employers about financial 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 postemployment 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 parry, 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. GASB 85 – Omnibus 2017 The objective of this Statement is to address practice issues that have been identified during implementation and application of certain GASB Statements. This Statement addresses a variety of topics including issues related to blending component units, goodwill, fair value measurement and application, and postemployment benefits (pensions and other postemployment benefits [OPEB]). GASB 86 – Certain Debt Extinguishment Issues The primary objective of this Statement is to improve consistency in accounting and financial reporting for in- substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources — resources other than the proceeds of refunding debt—are placed in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF OTHER MATTERS Effective in fiscal year 2018 -19: GASB 83 - Certain Asset Retirement Obligations This Statement addresses accounting and financial reporting for certain asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a tangible capital asset. A government that has legal obligations to perform future asset retirement activities related to its tangible capital assets should recognize a liability based on the guidance in this Statement. CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF PRIOR YEAR OTHER MATTERS 2016 -01 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. Prior -Year Management Response: The super -user access role of the Assistant Administrative Services Director to the financial system is not an oversight by the Finance Department, the access setting is based on the staffing 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; all employee timesheets are reviewed and approved by their respective supervisors and payroll processor. The recommendation of removing super -user rights from all finance 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. Current Status: The City has taken the corrective actions noted above. 7 CITY OF DUBLIN MEMORANDUM ON INTERNAL CONTROL SCHEDULE OF PRIOR YEAR OTHER MATTERS 2016 -02 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 recommend 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. Fiscal year 2016 Management Response: The City will adopt the auditors' recommendation and expense all project costs in the same year incurred that is not eligible to be capitalized. Current Status: In fiscal year 2017, the City reported $38,557,105 in capital outlay expenditures and $35,767,051 in corresponding capital assets additions. The difference between the two amounts, $2.8 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. REQUIRED COMMUNICATIONS To the City Council of the City of Dublin Dublin, California N Al MAZE �T We have audited the basic financial statements of the City of Dublin for the year ended June 30, 2017. Professional standards require that we communicate to you the following information related to our audit under generally accepted government audit standards and Government .Auditing Standards. Significant Audit Findings Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Dublin are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year, except as listed below: The following Governmental Accounting Standards Board (GASB) pronouncements became effective, but did not have a material effect on the financial statements: GASB Statement 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 oL GASB Statements 67 and 68 GASB Statement No. 74 — Financial Reportinz for Postemployment Benefit Plans Other Than Pon.vinn Plawv GASB Statement No. 80 — Blendinz Requirements , for Certain Component Units —an amendment of GASB Statement No. 14 The following pronouncement became effective and required modifications to the financial statements. GASB Statement No. 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. The pronouncement became effective, and applicable agreements are disclosed in Note 15 to the financial statements. T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 9 Emaze@mazeassociates.com Pleasant Hill, CA 94523 w mazaassociates.com GASB Statement No. 82 — 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 Reporting for 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. The pronouncement became effective, but did not have a material effect on the financial statements, and only affected the Pension - Related Required Supplementary Information. 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. Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were: 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 Net OPEB Obligation: Management's estimate of the net OPEB obligation is disclosed in Note 11 to the financial statements and is based on actuarial study determined by a consultant, which is 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. 10 Estimated Fair Value of Investments: As of June 30, 2017, the City's cash and investments were measured by fair value as disclosed in Note 3 to the financial statements. Fair value is essentially market pricing in effect as of June 30, 2017. These fair values are not required to be adjusted for changes in general market conditions occurring subsequent to June 30, 2017. 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 financial 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. Estimate of Compensated Absences: Accrued compensated absences which are comprised of accrued vacation, holiday, and certain other compensating time is estimated using accumulated unpaid leave hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note I.G. to the financial statements. We evaluated the key factors and assumptions used to develop the accrued compensated absences and determined that it is reasonable in relation to the basic financial statements taken as a whole. • Estimated Claims Liabilities: Management's estimate of the claims liabilities payable is disclosed in Note 12 to the financial statements and is based on actuarial studies determined by a consultant, which are based on the claims 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. Disclosures The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all 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. 11 Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in a management representation letter dated November 12, 2017. 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 City's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Information Accompanying the Financial Statements We applied certain limited procedures to the required supplementary information that accompanies and supplements the basic financial 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 financial 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 financial 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 financial 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. 12 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. Pleasant Hill, California November 12, 2017 13 This Page Left Intentionally Blank CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION - MEASURE B FUNDS FOR THE YEAR ENDED JUNE 30, 2017 This Page Left Intentionally Blank CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS For the Year Ended June 30, 2017 Table of Contents Page IndependentAuditor's Report .......................................................................................... ............................... 1 Financial Statements CombinedBalance Sheet ........................................................................................ ............................... 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balance ............................... 4 Notesto Financial Statements ................................................................................ ............................... 5 Independent Auditor's Report On Measure B Compliance ......................................... ............................... 7 This Page Left Intentionally Blank IV, MA �ZTE 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, 2017, 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 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 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. T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 1 Emaze@mazeassociates.com Pleasant Hill, CA 94523 w mazeassociates.com Opinion 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, 2017, and the change in financial position for the year then ended in accordance 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 30, 2017, 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 12, 2017, 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. N a,,& ji /%. a",& Pleasant Hill, California November 12, 2017 City of Dublin Alameda County Transportation Commission - Measure B Funds Combined Balance Sheet June 30, 2017 Total liabilities and fund balances $455,919 $386,396 $842,315 See accompanying Notes to Financial Statements 3 Special Revenue Funds Measure B Measure B Local Bike and Streets Pedestrian Total ASSETS Cash and investments $385,119 $359,228 $744,347 Direct Local Distribution Program Receivable 70,800 27,168 97,968 Total assets $455,919 $386,396 $842,315 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $52 $52 Total liabilities 52 52 Fund Balances: Restricted for Measure B Programs and Projects $455,919 386,344 842,263 Total fund balances 455,919 386,344 842,263 Total liabilities and fund balances $455,919 $386,396 $842,315 See accompanying Notes to Financial Statements 3 City of Dublin Alameda County Transportation Commission - Measure B Funds Combined Statement of Revenues, Expenditures and Changes In Fund Balance For the year ended June 30, 2017 REVENUES: Direct Local Program Distribution Allocation Interest Total revenues EXPENDITURES: Current: Highway and Streets Capital outlay: Street Overlay Program Citywide Bicycle and Pedestrian Improvements Annual Street Resurfacing San Ramon Road Bypass Total expenditures NET CHANGE IN FUND BALANCES FUND BALANCES: Beginning of year End of year Special Revenue Funds Measure B Measure B Local Bike and Streets Pedestrian $458,222 3,719 461,941 441,298 11,691 119,539 572,528 $175,830 3,267 179,097 10,945 30,000 12,260 53,205 Total $634,052 6,986 641,038 10,945 471,298 11,691 119,539 12,260 625,733 (110,587) 125,892 15,305 566,506 260,452 826,958 $455,919 $386,344 $842,263 See accompanying Notes to Financial Statements 4 1 CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS NOTES TO FINANCIAL STATEMENTS For the year ended June 30,2017_ NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity All transactions of the Alameda County Transportation Commission - Measure B Funds (Measure B Funds) of the City of Dublin, California (City), are included as a separate special revenue fund in the basic financial statements of the City. Measure B Funds is used to account for the City's share of revenues earned and expenditures incurred under the City's local streets, bikes and pedestrians and capital projects programs. The accompanying financial statements are for Measure B Funds only and are not intended to fairly present the financial position of the City and the results of its operations and cash flows of its proprietary fund type. B. Basis of Accounting The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a "current financial resources" measurement focus, wherein only current assets and current liabilities generally are included on the balance sheets. Operating statements of governmental funds present increased (revenues and other financing sources) and decreased (expenditures and other financing uses) in net current assets. C. Description of Funds The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self - balancing set of accounts. The following funds are used: Special Revenue Funds - To account for the proceeds of specific revenues that are legally restricted to be expended for specified purposes. NOTE 2 — CASH AND INVESTMENTS Cash and investments are maintained on a pooled basis with those of other funds of the City. Pooled cash and investments consist of U.S. government securities, deposits with banks, mutual funds and participation in the California Local Agency Investment Fund. All investments are stated at fair value. Pooled investment earnings are allocated monthly based on the average monthly cash and investment balances of the various funds and related entities of the City. See the City's Comprehensive Annual Financial Report for disclosures related to cash and investments and the related custodial risk categorization. This may be obtained from the City of Dublin, 100 Civic Plaza, Dublin, California 94568. CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE B FUNDS NOTES TO FINANCIAL STATEMENTS For the year ended June 30, 2017 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, 2017. NOTE 4 — MEASURE B FUNDS Under Measure B, approved by the voters of Alameda County in 1986 (Old Measure B) and in 2000, Alameda CTC Measure B, the City receives a portion of the proceeds of an additional one -half cent sales tax to be used for transportation- related expenditures. This measure was adopted with the intention that the funds generated by the additional sales tax will not fund expenditures previously paid for by property taxes but, rather, would be used for additional projects and programs. Local projects funded by Measure B were as follows: • Highway and Streets (Public Work Admin) - Bicycle Master Plan Program Implementation 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. 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. N M A 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, 2017 and the related notes to the financial statements, and have issued our report thereon date November 12, 2017. 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, 2017. Accountancy Corporation 3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 T 925.930.0902 F 925.930.0135 Emaze@mazeassociates.com w mazeassociates.com 7 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 12, 2017 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. r 46 �/M ID C�A& u Pleasant Hill, California November 12, 2017 CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2017 This Page Left Intentionally Blank CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM FINANCIAL STATEMENTS For The Year Ended June 30, 2017 Table of Contents Page IndependentAuditor's Report ............................................................................................ ............................... 1 Financial Statements: BalanceSheet ................................................................................................... ............................... 3 Statement of Revenues, Expenditures and Changes in Fund Balance ............ ............................... 4 Notesto Financial Statements ........................................................................... ............................... 5 Independent Auditor's Report on Vehicle Registration Fee (VR)F) Measure F Compliance .................... 7 This Page Left Intentionally Blank IVA' M AZ C INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Dublin, California Report on Financial Statements We have audited the accompanying financial statements of the Alameda County Vehicle Registration Fee (VRF) Measure F Program (Measure F Program) of the City of Dublin (City), California, as of and for the year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise the Measure F Program's basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements 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 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 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. T 925.930.0902 Accoun—'Eancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 1 Emaze@mazeassociates.com Pleasant Hill, CA 94523 w mazeassociates.comn Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure F Program of the City as of June 30, 2017, and the change in financial position for the year then ended 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 Measure F Program and do not purport to, and do not present fairly the financial position of the City as of June 30, 2017, 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 12, 2017 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 MaC4,U Pleasant Hill, California November 12, 2017 2 City of Dublin Alameda County Transportation Improvement Authority - Vehicle Registration Fee Balance Sheet June 30, 2017 Vehicle Registration Fee Special Revenue Fund ASSETS Cash and investments $ 184,016 Direct Local Distribution Program Receivable 49,555 Total assets $ 233,571 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 26,055 Total liabilities 26,055 Fund Balances: Restricted 207,516 Total fund balances 207,516 Total liabilities and fund balances $ 233,571 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, 2017 REVENUES: Direct Local Distributions Interest Total revenues EXPENDITURES: Current: Highway and Streets Capital Outlay: Village Parkway Traffic Signal Program Signal Communication Upgrade Total expenditures NET CHANGE IN FUND BALANCE FUND BALANCE: Beginning of year End of year Vehicle Registration Fee Special Revenue Fund $ 276,584 2,338 278,922 144,951 129,601 12,078 286,630 (7,708) 215,224 $ 207,516 See accompanying Notes to Financial Statements 4 CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM Notes to the Financial Statements for the Year Ended June 30, 2017 NOTE 1— BACKGROUND Measure F Program - Alameda County Vehicle Registration Fee Measure F (Measure F Program) was approved by the voters in November 2010, with 63 percent of the vote. The fee will generate about $10.7 million per year by a $10 per year vehicle registration fee. The collection of the $10 per year vehicle registration fee started in the first week of May 2011. The goal of the VRF Program is to sustain the County's transportation network and reduce traffic congestion and vehicle related pollution. The program includes four categories of projects: • Local Road Improvement and Repair Program (60 percent) • Transit for Congestion Relief (25 percent) • Local Transportation Technology (10 percent) • Pedestrian and Bicyclist Access and Safety Program (5 percent) The Alameda County Transportation Commission administers the program and distributes an equitable share of the funds among the four planning areas of the county over successive five year cycles. Geographic equity will be measured by a formula, weighted 50 percent by population of the planning area and 50 percent of registered vehicles of the planning area. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES Reporting Entity — All transactions of the Measure F Program of the City are included as a separate special revenue fund in the basic financial statements of the City. The accompanying financial statements include the Measure F Program only and are not intended to fairly present the financial position, results of operations and cash flows of the City in conformity with accounting principles generally accepted in the United States of America. Basis of Accounting — The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a "current financial resources " measurement focus, wherein only current assets and current liabilities generally are included on the balance sheets. Operating statements of governmental funds presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Description of Funds — The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self - balancing set of accounts. 5 CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY VEHICLE REGISTRATION FEE (VRF) MEASURE F PROGRAM Notes to the Financial Statements for the Year Ended June 30, 2017 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. 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. NOTE 4 — MEASURE F (VEHICLE 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. Con JV� MAZE �T 4, INDEPENDENT AUDITOR'S REPORT ON VEHICLES REGISTRATION FEE (VRF) MEASURE F COMPLIANCE To the Honorable Members of the City Council City of Dublin, California Report on Compliance for Measure 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, 2017 and the related notes to the financial statements, and have issued our report thereon date November 12, 2017. 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. T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 Emaze@mazeassociates.com Pleasant Hill, CA 94523 w mazeassociates.corn Opinion on Measure FPrograms In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on Measure F Program for the year ended June 30, 2017. Report on Internal Control Over Compliance Management is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on Measure F Program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the Measure F Program and to test and report on internal control over compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of Measure F Program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of Measure F Program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of Measure F Program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We have also issued a separate Memorandum on Internal Control dated November 12, 2017 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. k- k a-Z 0 � ow-- 1 ,t& c� Pleasant Hill, California November 12, 2017 CITY OF DUBLIN, CALIFORNIA ALAMEDA COUNTY TRANSPORTATION COMMISSION - MEASURE BB PROGRAM FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2017 This Page Left Intentionally Blank CITY OF DUBLIN ALAMEDA COUNTY TRANSPORTATION COMMISSION MEASURE BB FUNDS For the year ended June 30, 2017 Table of Contents Page IndependentAuditor's Report ............................................................................... ..............................1 Financial Statements: CombinedBalance Sheet ................................................................................... ............................... 3 Combined Statement of Revenues, Expenditures and Changes in Fund Balance ......................... 4 Notes to Financial Statements ........................................................................... ............................... 5 Independent Auditor's Report on Measure BB Compliance ............................ ............................... 7 This Page Left Intentionally Blank [1, MAZE �T 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 accompanying 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, 2017, 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 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 fraud 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. T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 1 E maze @mazeassociates.com Pleasant Hill, CA 94523 w mazeassociates.com Opinion In our opinion, the financial statements referred to above present fairly in all material respects the financial position of the Measure BB Program at June 30, 2017 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, 2017, 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 12, 2017 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. 4Y�a 5 e- 4 � /)-3 0 C4�A Pleasant Hill, California November 12, 2017 2 City of Dublin Alameda County Transportation Commission - Measure BB Balance Sheet For the year ended June 30, 2017 ASSETS Cash Direct Local Distribution Program Receivable Total assets Fund Balances: Restricted Total fund balances Total liabilities and fund balances Local Streets Bike and and Roads Pedestrian $585,575 $84,311 63,180 22,042 $648,755 $106,353 $648,755 $106,353 648,755 106,353 $648,755 See accompanying Notes to Financial Statements 3 Totals $669,886 85,222 $755,108 $755,108 755,108 $106,353 $755,108 City of Dublin Alameda County Transportation Commission - Measure BB Statement of Revenues, Expenditures and Changes In Fund Balance For the year ended June 30, 2017 See accompanying Notes to Financial Statements 4 Local Streets Bike and and Roads Pedestrian Totals REVENUES: Direct Local Distributions $408,414 $142,487 $550,901 Interest 6,182 1,830 8,012 Total revenues 414,596 144,317 558,913 EXPENDITURES: Capital outlay: Street Overlay Program 230,000 200,000 430,000 Total expenditures 230,000 200,000 430,000 NET CHANGE IN FUND BALANCE 184,596 (55,683) 128,913 FUND BALANCE: Beginning of year 464,159 162,036 626,195 End of year $648,755 $106,353 $755,108 See accompanying Notes to Financial Statements 4 CITY OF DUBLIN, CALIFORNIA MEASURE BB PROGRAM Notes to the Financial Statements For the year ended June 30, 2017 NOTE 1— BACKGROUND 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 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 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. 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. CITY OF DUBLIN, CALIFORNIA MEASURE BB PROGRAM Notes to the Financial Statements For the year ended June 30, 2017 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. n AZE M CT 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, 2017 and the related notes to the financial statements, and have issued our report thereon date November 12, 2017. 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. Opinion on Measure BB Program 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, 2017. T 925.930.0902 000upl� "ancy corpora-'Non F 925.930.0135 3478 Buskirk Avenue, Suite 215 7 Emaze@mazeassociates.com Pleasant Hill, CA 94523 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 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 12, 2017 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. qqciu 4 moc4Ar Pleasant Hill, California November 12, 2017 CITY OF DUBLIN, CALIFORNIA TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND FINANCIAL STATEMENTS FOR THE FISCAL YEARS ENDED JUNE 30, 2017 and 2016 This Page Left Intentionally Blank CITY OF DUBLIN TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND For The Years Ended June 30, 2017 and 2016 Table of Contents Paee IndependentAuditor's Report ................................................................................... ..............................1 Financial Statements: BalanceSheets ..................................................................................................... ............................... 3 Statements of Revenues and Expenditures and Changes in Fund Balance ....... ............................... 4 Notesto 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 GovernmentAuditing Standards ......................................................................... ............................... 7 This Page Left Intentionally Blank [\/A M A 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 III Fund (TDA Fund) of the City of Dublin, California, as of and for the years ended June 30, 2017 and 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 United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the 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 financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. T 925.930.0902 Accountancy Corporation 1 F 925.930.0135 3478 Buskirk Avenue, Suite 215 Emaze@mazeassociates.com Pleasant Hill, CA 94523 w mazeassociates.com Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the TDA Fund as of June 30, 2017 and 2016, 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 financial statements present only the TDA Fund and do not purport to, and do not present fairly the financial position of the City as of June 30, 2017 and 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 12, 2017, 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. /q(41f- '( IAoC� Pleasant Hill, California November 12, 2017 2 City of Dublin TDA Fund Balance Sheets June 30, 2017 and 2016 ASSETS Accounts receivable Total assets LIABILITIES Due to other funds Total liabilities FUND BALANCE: Restricted Total liabilities and fund balances 11117 1) f11 F $ 115,000 $ 115,000 $ 115,000 $ 33,311 115,000 33,311 (33,311) $ 115,000 $ - See accompanying Notes to Financial Statements 3 City of Dublin TDA Funds Statements of Revenues, Expenditures and Changes In Fund Balance For the years ended June 30, 2017 and 2016 IIMMUM Intergovernmental Total revenues EXPENDITURES Pedestrian/Bicycle (Note 3) CHANGE IN FUND BALANCES FUND BALANCES: Beginning of year End of year 2017 2016 $ 148,311 148,311 115,000 $ 33,311 33,311 (33,311) (33,311) $ - $ (33,311) See accompanying Notes to Financial Statements 4 CITY OF DUBLIN TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND NOTES TO THE FINANCIAL STATEMENTS For The Year Ended June 30, 2017 NOTE I — DESCRIPTION OF REPORTING ENTITY 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 Bicycle/Pedestrian Project. 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. 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 III FUND NOTES TO THE FINANCIAL STATEMENTS For The Year Ended June 30, 2017 NOTE 3 — TDA ARTICLE III REVENUE AND EXPENDITURES The following is a summary of the project grant revenues and total expenditures. MTC TDA Gant 2015 -2016 2016 -2017 Total Unexpended Project Name Allocation # Award Expenditures Expenditures Expenditures Balance Pedestrian/Bicycle; Capital 15001065 $ 148,311 $ (33,311) $ (115,000) $ (148,311) Total $ 148,311 $ (33,311) $ (115,000) $ (148,311) [\/A M A 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 GO VERN?VIENT A UDITING 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 Transportation Development Act Article III Fund (TDA Fund) as of and for the year ended June 3 0, 2017, and the related notes to the financial statements, and have issued our report thereon dated November 12, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the TDA Fund'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 the TDA Fund's internal control. Accordingly, we do not express an opinion on the effectiveness of the TDA Fund'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 TDA Fund'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. T 925.930.0902 Accountancy Corporation 7 F 925.930.0135 3478 Buskirk Avenue, Suite 215 Emaze@mazeassociates.com Pleasant Hill, CA 94523 w mazeassociates.com Compliance and Other Matters As part of obtaining reasonable assurance about whether the TDA Fund'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 and §6667 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 12, 2017 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 results of that testing, and not to provide an opinion on the effectiveness of the TDA Fund's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the TDA Fund'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; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record. Pleasant Hill, California November 12, 2017 IVA, MA CZT INDEPENDENT ACCOUNTANT'S REPORT ON APPLYING AGREED UPON PROCEDURES FOR COMPLIANCE WITH THE PROPOSITION 111 2017 -2018 APPROPRIATIONS LIlMT INCREMENT Honorable Mayor and Members of the City Council City of Dublin, California We have performed the procedures below, on the Appropriations Limit Worksheet (Worksheet), which were agreed to by the City of Dublin, for the year ended June 30, 2018. The City's management is responsible for the Worksheet. These procedures, which were suggested by the League of California Cities and presented in their Article XM Appropriations Limitation Uniform Guidelines were performed solely to assist you in meeting the requirements of Section 1.5 of Article XM of the California Constitution. 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 Worksheet and determined that the 2017 -2018 Appropriations Limit of $314,611,477 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 2017 -2018 Appropriations Limit by multiplying the 2016 -2017 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 Worksheet, we agreed the Per Capita Income, City Population and County Population Factors to California State Department of Finance Worksheets. D. In addition, for the Worksheet, we recomputed the Local Non - Resident Construction Factor by dividing the Total Change in Assessed Value by the Non - Residential New Construction amount. We agreed the Non - Residential New Construction amount to the Alameda County's "Non - Residential New Construction for the 2017/2018" Report. We also recomputed the Total Change in Assessed Value by subtracting the 2015 -2016 Assessed Value from the 2016 -2017 Assessed Value. We further agreed the Assessed Values to the HdL Growth by Use Category Reports for fiscal years 2015 -16 and 2016 -17. This agreed -upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. T 925.930.0902 cc ouMancy Corporation F 925.930.0135 3478 Buskirk Avenue, Suite 215 Emaze@mazeassociates.com Pleasant Hill, CA 94523 w mazeassocoates.c®rn This report is intended solely for the information and use of management and the City Council and is not intended to be and should not be used by anyone other than those specified parties; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record. Pleasant Hill, California November 12, 2017