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HomeMy WebLinkAboutItem 4.02 FinRptFY95-96Audit (2) CITY CLERK File # mWIlll-raJ[Q] . AGENDA STATEMENT CITY COUNCIL MEETING DATE: (December 17,1996) Final Financial Report For Fiscal Year 1995/1996 and _ Annual Audit Report Report Prepared by: Paul S. Rankin, Assistant City Manager SUBJECT: ExmBITS ATTACHE]): 1. / 2./ / 3. / 4. 5. / 6/ . 7. Audit Report Summary 1995~96 Comprehensive Annual Financial Report, dated June 30, 1996. [Separate Bound Report] Financial Report (Final), June 30, 1996 Comparison of Fund Balances 1995 to 1996 (General Fund and Special Revenue Funds) Independent Auditor's Management Letter, dated October 8, 1996. Staff response to Management Letter dated November 20, 1996. Independent Auditor's Report On Compliance With The Proposition III 1995-96 Appropriations Limit Increment RECOMMENDATION~i (1) Receive the Annual Report, including the report of the Independent (U~ Auditor's (Vavrinek, Trine, & Day & Co.) (2) Receive and file the " Management Letter, including Staff Response. FINANCIAL STATEMENT: See Report. DESCRIPTION: The City of Dublin has compiled and published its Comprehensive Annual Financial Report (CAFR), for the fiscal year ending June 30, 1996. This report includes financial statements prepared by Vavrinek, Trine, Day, & Co., (VTD) the independent auditors selected by the City Council. This is the first year in which the firm conducted the audit. The financial section of the report includes an unqualified opinion issued by VTD. The Audit and Management Letter were also . reviewed on November 25, 1996 by a City Council subcommittee consisting of Vice Mayor Burton and Councilmember Barnes. The ad-hoc committee met with the auditors to review the information and discuss the report. .----------------------------------------------------------------- COPIES TO: Kevin Pulliam, VTD Gail Smith, VTD ,I /J ITEMNO.~ g :\audit\9 5-96aud\fnlnarr\agndafn I.doc The Auditors have prepared a very brief Audit Report Summary (Exhibit 1), which is presented in a check list format. This document summarizes the following areas: 1) Purpose of the Audit, 2) Methods Used Ofo Review the Records, and 3) Audit Results. Overall, the Auditors found no material weaknesses in the City financial systems and reports. The Transmittal Letter, contained on pages ix ~ xvi of the Comprehensive Annual Financial Report . (Exhibit 2), provides a good overview of the financial activities. This letter focuses on significant trends as well as major changes associated with the General Fund. The General Fund represents the largest portion of the City's revenues and expenditures and therefore is of primary importance in evaluating the City's fiscal condition. The statistical section in the CAFR (Exhibit 2 pages 71~86) includes graphs of relevant historical data. The visual presentation can be helpful in identifying trends and/or the timing of key changes which have impacted the City's financial condition. In the past, the City has submitted its Annual Financial Report to State and National organizations, which review it for conformance with desired reporting standards. For the past five years the City has received awards from both organizations, and the format of this report was intended to continue to qualify the City for this recognition. The organizations typically do not announce the results until later in the year. The monthly in~house Financial Report for June 30, 1996 is submitted in its "final" form. (Exhibit 3) This report reflects various adjustments required in closing the books and preparing the CAFR. All budgetary modifications have been previously adopted by the City Council. This report will highlight areas of significance in the current report. REVISED ACCOUNTING STANDARDS - REVENUE RECOGNITION The Governmental Accounting Standards Board (GASB) e~tablishes the acceptable format of Financial Reports. Beginning with the June 30, 1996 report the City is required to account for the receipt of certain revenues in a manner which differs from past practice. This requirement is referred to as GASB 22. The change basically related to a difference in the timing of recording taxpayer assessed revenues. For example: . OLD METHOD: In the past the City received the April - June quarterly Transient Occupancy Tax (TOT) payment at the end of July. This revenue was posted to the Fiscal Year in which it was received. Each Fiscal Year would still account for 4 quarterly payments (#1 April~June, #2 July- Sept., #3 Oct. ~ Dec., and #4 January ~ March). . NEW METHOD UNDER GASB 22: GASB 22 requires the City to recognize the tax in the same Fiscal Year as it was earned. Therefore, the April ~ June payment needs to be recorded as an Account Receivable as of June 30th. In order to implement this change it was necessary to adjust the Beginning Fund Balance as of June 30, 1995. For example, the TOT received in July of 1995, under the new rules should have been recorded as a 1994/95 revenue. Without an adjustment the 1995/96 revenue would have recorded five quarterly payments. This adjustment affected the following General Fund revenues: Transient Occupancy Tax; Sales Tax; Real Property Transfer Tax: Garbage Franchise Fees; and Waste Management Administration Fees. The total adjustment resulted in an increase in the beginning fund balance of$236,676. CHANGES TO FUND BALANCE Attached as Exhibit 4, Staff has prepared a Table which shows the changes in Fund Balance since 1995, ~ithin the General Fund and Special Revenue Funds. The presentation of the General Fund Balance mcludes a breakdown of reserved and designated balances. The "designation" of Fund Balance as . "Unreserv~d ~ Designated", indicates that the City Council desires to segregate or earmark these resources for a speCIfic purpose. In the case of Special Revenue funds all balances are designated for authori~ed -;1.- . Culture and Leisure: This program had a total savings of approximately $125,039. The three factors which contributed the most to this were: 1) One - Time Reduced Park Maintenance expense due to the construction period on a portion of the Sports Grounds; 2)The budget included funds to accommodate the televising of City Council Meetings, which was implemented after the end of the Fiscal Year; 3)Recreation Program costs were affected due to decreased participation in Sports Leagues as well as one-time savings due to Staffing vacancies. Community Development: Expenditures were less than the budget primarily ,due to Staffing changes as well as the need for additional Building Inspection Services did not materialize as early in the Spring construction season as anticipated. The City also expended less in Capital Expenditures than originally budgeted. This primarily represents a timing difference between when the project is Wldertaken. For example, expenditures budgeted in Fiscal Year 1995/96 for the Dougherty Hills Slope Repair were not incurred until after the close of the Fiscal Year. In addition, the $20,000 expense for the Camp Parks Soccer Fields was not incurred in 1995~96. The adopted budget had assumed that a $327,804 transfer would be made from the General Fund to the Street Light Fund to accommodate the purchase of Street Lights. The' appraised value resulted in a cost w~ich was less than originally anticipated and a transfer was not required. Negotiations and or litigation WIll continue to determine whether additional amoWlts will be owed. This contributed to the recording of revenues in excess of expenditures at the end of the fiscal year, which increased the final General Fund Balance. A final factor affecting the year ~end results was the inclusion in the adopted budget of an appropriation to ,.erves. The adopted 1995/96 budget contained a $75,533 appropriation to reserves. This small amount uld have also been affected by budget changes approved by the City Council, which were not offset by a corresponding increase in revenue.. " . -'7-" In the future it will continue to be important to analyze the basis for all changes in General Fund Balanc:. For example, carry over capital projects will still need to be financed. In the event that any proposal IS made to utilize General Fund reserves for expenditures, the impact on operating expenses should also be evaluated. Staff has also noted that there is the potential for deterioration of revenues which requires prudent allocation of resources in the future. Special Revenue Funds: If viewed strictly on a percentage basis some of the changes occurring in the . Special Revenue Funds (Exhibit 4) are rather dramatic. However, it is important to view this in perspective to the amount of total funds involved. The General Fund represents the overwhelming portion of the City's total Fund Balance. The total fund balance for all Special Revenue Funds, is pnmarily concentrated in a few funds where the City will be undertaking special projects in the future. The following section discusses significant changes in the Special Revenue Funds: Gas Tax: The fund balance at June 30, 1996 was within approximately 1.0% of the projected balance used to prepare the 1996/97 Budget. These monies are restricted to street mairitenance and construction. The fund balance is designated for future projects. ;Park Dedication: Dunng fiscal Year 1995/96 a major subdivision filed a Final Map and paid Park Dedication In Lieu fees. These use of these monies is restricted. The fund balance is designated for future park projects as outlined in the Capital Improvement Plan. San Ramon Road Specific Plan: Prior to 1994/95 this fund was used to service the debt on the improvement bonds issued. In Fiscal Year 1993/94 all outstanding bonds were called and beginning July 1, 1994 the residual monies were accounted for in a Special Revenue Fund. These monies were to be used for maintenance of existing improvements and new improvements within the District. In Fiscal Year 1995/96 these funds were also used to enhance the landscape improvements in the area, which reduced the fund balance available. Measure D: Recycling and Residen~ial Garbage Service Funds: In Fiscal Year 1995/96 there. were significant one~time expenditures associated with the new Integrated Waste Management Agreement. This resulted in significant decreases in the existing fund balance in both funds. Storm Water Run-off (NPDES): A major expense for this fund is the contribution to Alameda County for the administration of the countywide program. In Fiscal Year 1995/96 the County reduced the contribution from all agencies on a one time basis. The reason for the reduction was that the program had accrued unspent monies in previous years. . MANAGEMENT LETTER A Management Letter (Exhibit 5) along with the Financial Report were reviewed by the City Council Audit subcommittee. The Management Letter include specific sugge~tions by the Auditors, for areas where changes may enhance operations. Staff has prepared a response to each recommendation, which is attached as Exhibit 6. Staff will proceed with implementation of the items as eXplained in Exhibit 6. The Auditors explained to Staff and the Subcommittee that during their review, they did not find any indication that the current operations caused any material weakness in the financial system. 1996/97 COMPLIANCE REPORT (Appropriations Limit Calculation) As part of the Audit engagement the Auditors are also required to review compliance with laws related to the calculation of the annual Appropriations Limit. As required by State Law, the City Council annually adopts an Appropriations Limit in conjunction with the annual Budget. Exhibit 7 contains the Auditors Report related to this item. Although this does not represent a formal audit, the report states that there was nothing found to indicate that the calculation was not in conformance with the required laws. CONCLUSION Staff recommends that the City Council receive and file the reports. In the event that there are specific . questions the members of the City Council Subcommittee (Vice Mayor Burton and Councilmember Barnes) or Staff will be available. -l/- . CITY OF DUBLIN'S FINANCIAL STATEMENTS FOR THE FISCAL YEAR 1995/96 (FINAL AFTER AUDIT) . Prepared by The Finance Department December 4, 1996 ) . EXHIBIT 3 II GL102 CITY OF DUBLIN . PAGE 1 11/08/96 BALANCE SHEET 13.49.30 FOR THE PERIOD 7/95 THROUGH 6/96 GENERAL SPECIAL SPECIAL CAPITAL TRUST/ TOTALS. REVENUE REVENUE ASSESSMENT IMPROVEMENT AGENCY --- MEMORANDUM ONLY-- FUNDS FUNDS FUNDS FUNDS FUND CURRENT JUNE 30, 1995 ASSETS CASH 2899340.87- 15038n.71 256748.40 272066.59 164832.64 701815.53- 668696.69- CASH WITH FISCAL AGENT 129917.22 129917.22 122903.69 UNAMORTIZED BOND DISCOUNT INVESTMENTS AT COST 24618006.89 24618006.89 22006245.38 RECEIVABLES:TAXES 74334.65 74334.65 91387.10 ACCOUNTS (NET) 688160.23 63278.52 168966.24 920404.99 783124.27 INTEREST 398353.32 398353.32 345940.01 ASSESSMENTS 8218.15 22739.57 30957.72 19159.87 RENTS NOTES DUE FROM OTHERS 432106.39 545624.80 977731.19 901658.84 INVENTORY AT COST PREPAID ITEMS 5609.57 5609.57 4716.20 FIXED ASSETS AMOUNTS TO BE PROVIDED 2090500.00 2090500.00 2158500.00 TOTAL ASSETS 23317230.18 2120999.18 279487.97 441032.83 2385249.86 28544000.02 25764938.67 LIAB, FND BAL, RETND EARNINGS 62536..,6~ DEPOSITS FOR PRIVATE DEVELPMNT 82994.30- 82994.30- DEPOSITS FOR AB1600 FEES 210233.11- 210233.11' 168652.4!l' DEPOSITS OTHERS 384265.48' 168966.24- 553231.72' 620775.20- PAYASLES:ACCOUNTS 1555289.87' 266410.04- 26312.69- 231616.22- 2079628.82- 1497154.62- INTEREST PAYROLL 61671.05- 61671.05- 55156.78- DUE TO OTHERS 7162.30- 427601.71- 434764.01- 627989.00- DEBT INSTRUMENTS PAYABLE 2208000.00- 2208000.00- 2276000.00' TOTAL L1ABILTIES 2091383.00- 694011.75- 26312.69- 610815.57- 2208000.00- 5630523.01- 5183192.03' FUND BALANCES 21225847.18- 1426987.43- 253175.28- 169782.74 177249.86- 22913477.01 . 20581746.64- TOTAL FUND EQUITY 21225847.18- 1426987.43- 253175.28- 169782.74 177249.86- 22913477.01- 20581746.64' TOTAL LIAS,FNO BAL, RETD EARNS 23317230.18' 2120999.18- 279487.97- 441032.83- 2385249.86- 28544000.02- 25764938.67- . :L 102 CITY OF DUBL IN PAGE 1 1/08/96 BALANCE SHEET 13.49.52 FOR THE PERIOO 7/95 THROUGH 6/96 . INTERNAL ENTERPRISE FIXED ASSETS GENERAL LONG T 0 T A L S SERVICE FUNDS GROUP OF TERM DEBT ..- MEMORANDUM ONLY --- FUND ACCOUNTS ACCOUNT GROUP CURRENT JUNE 30, 1995 ASSETS SH 276432.19 276432.19 307190.16 ;H WITH FISCAL AGENT 1719601.80 1719601.80 1744947.62 ,,\MORTI ZED BOND 0 I SCOUNT VESTMENTS AT COST CEIVABLES:TAXES ACCOUNTS (NET) INTEREST 47559.57 47559.57 46354.57 ASSESSMENTS RENTS NOTES E FROM OTHERS IVENTORY AT COST ;PAID ITEMS 5728.28 :ED ASSETS 451187.86 20084069.28 510205.13 21045462.27 21365072.67 XJNTS TO BE PROVIDED 5327970.26 5327970.26 2855403.88 TOTAL ASSETS 727620.05 21851230.65 510205.13 5327970.26 28417026.09 26324697.18 AB ~AL' RETND EARNINGS PO, R PRIVATE DEVELPMNT POSI HERS YABLES:ACCOUNTS 1331.60- 1331.60- 15866.09- INTEREST PAYROLL ~ TO OTHERS aT INSTRUMENTS PAYABLE 16623049.50- 5327970.26- 21951019.76- 20194909.63- TOTAL LIABILITIES 1331.60- 16623049.50- 5327970.26- 21952351.36- 20210775.72- HD BALANCE 376217.00- 118291.15- 494508.15- 269795.75- HTRIBUTlONS 350071.45- 5109890.00- 5459961.45- 5347612.75- IESTMENTS IN FIXED ASSETS 510205.13- 510205.13- 496512.96- rAINED EARNINGS TOTAL FUND EQUITY 726288.45- 5228181.15- 510205.13- 6464674.73- 6113921.46- TAL LIAB,FND BAL, RETD EARNS 727620.05- 21851230.65- 510205.13- 5327970.26- 28417026.09- 26324697.18- . ~ GL104C THE CITY OF DUBLIN STATEMENT SHOWING PAGE 1 10/24/96 REVENUES VERSUS EXPENDITURE '9.31.0?, FOR THE PERIOD 7/95 THROUGH 6/96 GENERAL REVENUE FUND PREVIOUS YEAR ENDING JUNE 30, 19~ CURRENT PERIOD BUDGET ACTUAL PERCENT VARIANCE ACTUAL ACTUAL PERCENT VARIANCE FISCAL YR Y-T-D ********REVENUES******* PROPERTY TAXES 3968100.00- 3867613.84- 97.5 100486.16- 3944284.28- 3944284.28- 100.0 .00 SALES TAX 6400000.00- 6760413.09- 105.6 360413.09 6470287.39- 6470287.39- 100.0 .00 REAL PROPERTY TRANSFERS 78000.00- 60181.18- 77.2 17818.82- 58070.83- 58070.83- 100.0 .00 TRANSIENT OCCUPANCY TAX 112000.00- 198284.00- 177.0 86284.00 112580.00- 112580.00- 100.0 .00 FRANCHISE TAXES 615500.00- 607146.84- 98.6 8353.16- 481155.78- 481155.78- 100.0 .00 LICENSES & PERMITS 565650.00- 466198.72- 82.4 99451.28- 337550.69- 337550.69- 100.0 .00 FINES & FORFEITURES 35000.00- 38792.80- 110.8 3792.80 35668.12- 35668.12- 100.0 .00 USES OF MONEY AND PROPERTY 1124850.00- 1268885.15- 112.8 144035.15 1140713.87- 1140713.87- 100.0 .00 INTERGOVERNMENTAL FROM STATE 1031450.00- 1102495.65- 106.9 71045.65 1044001.82- 1044001.82- 100.0 .00 CHARGES FOR SERVICES 1322561.00- 1372959.58- 103.8 50398.58 1053715.45- 1053715.45- 100.0 .00 OTHER SOURCES OF REVENUE 135875.00- 110803.95- 81.5 25071.05- 163462.88- 163462.88- 100.0 .00 TOTAL REVENUE 15388986.00- 15853774.80- 103.0 464788.80 14841491.11- 14841491.11- 100.0 .00 *******EXPENDITURES******* GENERAL GOVERNMENT ACTIVITIES: NON-DEPARTMENTAL 91693.00 .00 91693.00 137210.00 137210.00 100.0 .00 CITY COUNCI L 1010 138945.00 127389.95 91.7 11555.05 106703.42 106703.42 100.0 .00 CITY MANAGER 1020 281336.00 275833.29 98.0 5502.71 255861.89 255861.89 100.0 .00 CITY ATTORNEY 1030 161933.00 161933.22 100.0 .22- 188007.10 188007.10 100.0 .00 ADMIN SERVICES 1040 547130.00 495172.80 90.5 51957.20 445264.08 445264.08 100.0 .00 BUILDING MANAGEMENT 1050 339874.00 334374.72 98.4 5499.28 317163.30 317163.30 100.0 :. FACILITY RENTAL 1050-719 1604480.00 1499521.58 93.5 104958.42 1461448.88 1461448.88 100.0 INSURANCE COST CENTER 1060 119800.00 101710.52 84.9 18089.48 124851.39 124851.39 100.0 .00 ELECTIONS COST CENTER 1070 660.00 563.52 85.4 96.48 6078.72 6078.72 100.0 .00 ACTIVITY TOTAL 3285851.00 2996499.60 91.2 289351.40 3042588.78 3042588.78 100.0 .00 PUBLIC SAFETY: POll CE 2010 3599781.00 3540387.58 98.4 59393.42 3119865.40 3119865.40 100.0 .00 CROSSING GUARDS COST 2020 47749.00 43292.88 90.7 4456.12 36333.77 36333.77 100.0 .00 ANIMAL CONTROL 2030 182440.00 126363.14 69.3 56076.86 70885.70 70885.70 100.0 .00 DISASTER PREAPREDNESS 2050 43460.00 27045.45 62.2 16414.55 14798.56 14798.56 100.0 .00 FIRE SERVICES JPA 2060 3062737.00 2977719.09 97.2 85017.91 2801337.13 2801337.13 100.0 .00 ACTIVITY TOTAL 6936167.00 6714808.14 96.8 221358.86 6043220.56 6043220.56 100.0 .00 TRANSPORT A TION: PUBLIC \.IORKS 3010 312060.00 304830.22 97.7 7229.78 297240. 13 297240.13 100.0 .00 STREET MAINTENANCE 3020 159460.00 140949.59 88.4 18510.41 31902.53 31902.53 100.0 .00 STREET TREE MAINTENANCE 3040 48615.00 48192.39 99.1 422.61 41872.72 41872.72 100.0 .00 STREET LANDSCAPE MAINT. 3050 197367.00 197364.32 100.0 2.68 168920.81 168920.81 100.0 .00 ACTIVITY TOTAL 717502.00 691336.52 96.4 26165.48 539936.19 539936.19 100.0 .00 iEALTH & WELFARE: WASTE MANAGEMENT 5020 .00 .00 .00 17411.78 17411.78 100.0 .00 ACT I V ITY TOTAL .00 .00 .00 17411.78 17411.78 100.0 .00 :ULTURE & LEISURE SERVICES: LI BRARY SERV ICES 8010 194188.00 194188.00 100.0 .00 177536.00 1m36.00 100.0 .00 CULTURAL ACTIVITIES 8011 20000.00 17500.00 87.5 2500.00 10000.00 10000.00 100.0 .00 HERITAGE CENTER 8012 42561.00 41860.33 98.4 700.67 . 6737.62 6737.62 100.0 .00 DUBLI N CEMETERY 8013 22100.00 16075.33 72.7 6024.67 16854.77 16854.77 100.0 .00 PARK MAINTENANCE 8020 600037.00 554536.91 92.4 45500.09 584045.96 584045.96 100.0 .00 . ~ L104C THE CITY OF DUBLIN STATEMENT SHOWING PAGE 2 10/24/96 REVENUES VERSUS EXPENOITURE 9.31.07 FOR THE PERIOD 7/95 THROUGH 6/96 . GENERAL REVENUE FUNO CURRENT PERIOD PREVIOUS YEAR ENDING JUNE 30, 1995 BUDGET ACTUAL PERCENT VARIANCE ACTUAL ACTUAL PERCENT VARIANCE FISCAL YR Y-T'D COMMUNITY CABLE TV 8030 33836.00 23736.00 70.2 10100.00 22779.27 22779.27 100.0 .00 RECREATION ADMIN. 8040 197556.00 190175.44 96.3 7380.56 178485.58 178485.58 100.0 .00 PLAYGROUNDS 8045 102066.00 99908.83 97.9 2157.17 95612.89 95612.89 100.0 .00 SHANNON CENTER 8050 123348.00 128665.35 104.3 5317.35- 107202.90 10n02.90 100.0 .00 PRESCHOOL 8055 48840.00 48241.56 98.8 598.44 37414.34 37414.34 100.0 .00 TEENS PROGRAM 8060 36982.00 29512.30 79.8 7469.70 27525.50 27525.50 100.0 .00 ADULT SPORTS 8065 81399.00 59974.79 73.7 21424.21 66278.32 66278.32 100.0 .00 YOUTH SPORTS 8066 35792.00 33593.09 93.9 2198.91 31761.14 31761.14 100.0 .00 SPECIAL EVENTS 8070 34410.00 33694.49 97.9 715.51 30612.01 30612.01 100.0 .00 SENIOR CENTER 8080 109176.00 101733.54 93.2 7442.46 108674.38 108674.38 100.0 .00 RECREATION INSTRUCTION 8090 82691.00 76940.68 93.0 5750.32 75381.16 75381.16 100.0 .00 AQUA TI CS 8100 207167.00 196773.22 95.0 10393.78 189089.80 189089.80 100.0 .00 ACTIVITY TOTAL 19n149.00 1847109.86 93.7 125039.14 1765991.64 1765991.64 100.0 .00 .1MMUNITY DEVELOPMENT: PLANNING 9010 897848.00 838445.66 93.4 59402.34 648241.27 648241.27 100.0 .00 BUILDING SAFETY 9020 304219.00 263771.36 86.7 40447.64 261521.53 261521.53 100.0 .00 ENGINEERING 9030 569323.00 569323.23 100.0. .23- 276569.24 276569.24 100.0 .00 ECONOMIC DEVELOPMENT 9040 107695.00 106703.40 99.1 991.60 63749.94 63749.94 100.0 .00 ACTIVITY TOTAL 1879085.00 1778243.65 94.6 100841.35 1250081.98 1250081.98 100.0 .00 PITAL IMPROVEMENT PROJECTS: GENERAL CIP PROJECTS 93NN 94741.00 73453.55 77.5 21287.45 49443.40 49443.40 100.0 .00 cr ~TY IMPROVEMENTS 94NN 155340.00 124136.78 79.9 31203.22 89836.41 89836.41 100.0 .00 P. 95NN 63600.00 20046.02 31.5 43553.98 7939.49 7939.49 100.0 .00 ST CONSTRC/IMPROVMT 96NN 123857.00 104607.01 84.5 19249.99 32500.00 32500.00 100.0 .00 ACTIVITY TOTAL 437538.00 322243.36 73.6 115294.64 179719.30 179719.30 100.0 .00 . 0 TAL EXPENOITURES 15228292.00 14350241. 13 94.2 878050.87 12838950.23 12838950.23 100.0 .00 ,:;CESS [REVENUE>EXPEND I TURES 160694.00- 1503533.67- 935.7 1342839.67 2002540.88- 2002540.88- 100.0 .00 KANSFERS IN FROM OTHER FUNDS .00 38508.75- 38508.75 46410.04- 46410.04- 100.0 .00 RANSFERS OUT TO OTHER FUNDS .00 18673.28 18673.28- 294854.69 294854.69 100.0 .00 .(CESS [REVENUE> EXPENDITURE 160694.00- 1523369.14- 948.0 1362675.14 1754096.23- 1754096.23- 100.0 .00 . 5 GL104C THE CITY OF DUBLIN STATEMENT SHOWING PAGE 1 10/24/96 REVENUES VERSUS EXPENDITURE 9.34.07 FOR THE PERIOD 7/95 THROUGH 6/96 SPECIAL REVENUE FUNDS PREVIOUS YEAR ENOING JUNE 30, 1~ CURRENT PERIOD BUDGET ACTUAL PERCENT VARIANCE ACTUAL ACTUAL PERCENT VARIANCE FISCAL YR Y-T-D ********REVENUeS******* SALES TAX 126000.00- 141116.52- 112.0 15116.52 120823.92- 120823.92- 100.0 .00 FINES & FORFEITURES 26000.00- 24330.57- 93.6 1669.43- 24556.82- 24556.82- 100.0 .00 USES OF MONEY AND PROPERTY 61735.00- 89945 .79- 145.7 28210.79 49056.30- 49056.30- 100.0 .00 INTERNGOVERNMENTAL FROM STATE 629748.00- 536724.31- 85.2 93023.69- 656834.32- 656834.32- 100.0 .00 INTERGOVERNMENTAL FROM COUNTY 102000.00- 126726.00- 124.2 24726.00 151127.00- 151127.00- 100.0 .00 INTERGOVERNMENTAL FROM FEDERAL 2563963.00- 1908174.78- 74.4 655788.22- 523412.91- 523412.91- 100.0 .00 CHARGES FOR SERVICES 819070.00- 820879.80- 100.2 1809.80 744626.00- 744626.00- 100.0 .00 OTHER SOURCES OF REVENUE 625700.00- 568753.12- 90.9 56946.88- 286592.73- 286592.73- 100.0 .00 TOTAL REVENUE 4954216.00- 4216650.89- 85.1 737565.11- 2557030.00- 2557030.00- 100.0 .00 *******EXPENDI TURES******* GENERAL GOVERNMENT ACTIVITIES: BUILDING MANAGEMENT 245.00 244.70 99.9 .30 .00 .00 .00 ACTIVITY TOTAL 245.00 244.70 99.9 .30 .00 .00 .00 PUBLIC SAFETY: POLI CE 6000.00 5899.29 98.3 100.71 9360.94 9360.94 100.0 .00 TRAFFIC SIGNALS 102277.00 85416.04 83.5 16860.96 80108.52 80108.52 100.0 .00 ACTIVITY TOTAL 108277.00 91315.33 84.3 16961.67 89469.46 89469.46 100.0 .00 TRANSPORTATION: PUBLI C \JORKS 298.00 1.45 .5 296.55 .00 .00 :. STREET MAINTENANCE 167055.00 163324.71 97.8 3730.29 214599.03 214599.03 100.0 STREET SWEEPING 73655.00 69954.11 95.0 3700.89 70518.94 70518.94 100.0 ACTIVITY TOTAL 241008.00 233280.27 96.8 7727.73 285117.97 285117 . 97 100.0 .00 HEALTH & WELFARE: WASTE MANAGEMENT 1223345.00 1183933.08 96.8 39411. 92 679404.95 679404.95 100.0 .00 CULTURE & LEISURE SERVICES: COMMUNITY DEVELOPMENT: ENGINEERING 107992.00 51425.60 47.6 56566.40 101497.21 101497.21 100.0 .00 ACTIVITY TOTAL 107992.00 51425.60 47.6 56566.40 101497.21 101497.21 100.0 .00 CAPITAL IMPROVEMENT PROJECTS: GENERAL CIP PROJECTS 7493.00 7089.00 94.6 404.00 17266.00 17266.00 100.0 .00 COMMUNITY IMPROVEMENTS 80111.00 80111.16 100.0 .16- 181692.50 181692.50 100.0 .00 PARKS 237416.00 211220.20 89.0 26195.80 2280.00 2280.00 100.0 .00 STREET CONSTRUCTION/IMPROVMT 2701592.00 1967504.82 72.8 734087.18 697231 .63 697231 .63 100.0 .00 ACTIVITY TOTAL 3026612.00 2265925.18 74.9 760686.82 898470. 13 8984 70.13 100.0 .00 TOT A L EXPENDITURES 4707479.00 3826124.16 81.3 881354.84 2053959.72 2053959.72 100.0 .00 EXCESS [REVENUE>EXPENDITURE 246737.00- 390526.73- 158.3 143789.73 503070.28- 503070.28- 100.0 .00 TRANSFERS IN FROM OTHER FUNDS .00 19860.59- 19860.59 .00 .00 .00 TRANSFERS OUT TO OTHER FUNDS .00 28838.30 28838.30- 3600.00 3600.00 100.0 .00 EXCESS [REVENUE> EXPENDITURE 246737.00- 381549.02- 154.6 134812.02 499470.28- 499470.28- 100.0 .00 . t l,04C. THE CITY OF DUBLIN STATEMENT SHOWING PAGE 1 /24/96 REVENUES VERSUS EXPENDITURE 9.40.05 I FOR THE PERIOD 7/95 THROUGH 6/96 . SPECIAL ASSESSMENT FUNDS CURRENT PERIOD PREVIOUS YEAR ENDING JUNE 30, 1995 BUDGET ACTUAL PERCENT VARIANCE ACTUAL ACTUAL PERCENT VARIANCE FISCAL YR Y-T-D ******REVENUES******* 'ECIAL BENEFITS ASSESSMENTS 296105.00- 318115.75- 107.4 22010.75 363469.78- 363469.78- 100.0 .00 SES OF MONEY AND PROPERTY 17130.00- 17813.47- 104.0 683.47 21115.14- 21115.14- 100.0 .00 THER SOURCES OF REVENUE 4000.00- .00 4000.00- 3944.45- 3944.45- 100.0 .00 TOTAL REVENUE 317235.00- 335929.22- 105.9 18694.22 388529.37- 388529.37- 100.0 .00 *****EXPENDITURES******* NERAL GOVERNMENT ACTIVITIES: ACTIVITY TOTAL .00 .00 .00 .00 .00 .00 BLI C SAFETY: TRFC SIGS/STREET LIGHTING 196374.00 180611.18 92.0 15762.82 192530.11 192530.11 100.0 .00 ACTIVITY TOTAL 196374.00 180611.18 92.0 15762.82 192530.11 192530.11 100.0 .00 ANSPORTATION: PUBLIC WORKS 5054.00 3947.86 78.1 1106.14 3507.43 3507.43 100.0 .00 STREET TREE MAINTENANCE 9107.00 8867.39 97.4 239.61 5350.84 5350.84 100.0 .00 STREET LANDSCAPE MAINTENANCE 113010.00 105578.03 93.4 7431.97 110650.86 110650.86 100.0 .00 ACTI VITY TOTAL 127171.00 118393.28 93.1 8m.72 119509.13 119509.13 100.0 .00 ALTH & IJELFARE: ~LTURE & LEISURE SERVICES: 'IML'......y DEVELOPMENT: ~N eNG ACTIVITY TOTAL 3570.00 3085.26 86.4 484.74 3216.97 3216.97 100.0 .00 3570.00 3085.26 86.4 484.74 3216.97 3216.97 100.0 .00 'ITAL IMPROVEMENT PROJECTS: COMMUNITY IMPROVEMENTS 40335.00 27505.63 68.2 12829.37 .00 .00 .00 STREET CONSTRUCTIONIIMPROVMT 431000.00 7649.54 1.8 423350.46 5470.89 5470.89 100.0 .00 ACTIVITY TOTAL 471335.00 35155.17 7.5 436179.83 5470.89 5470.89 100.0 .00 o TAL EXPENDITURES 798450.00 337244.89 42.2 461205.11 320727.10 320727.10 100.0 .00 :ESS[REVENUE>EXPENDITURE 481215.00 1315.67 .3 479899.33 67802.27- 67802.27- 100.0 .00 ,ANSFERS OUT TO OTHER FUNDS .00 .00 .00 42810.04 42810.04 100.0 .00 CESS [REVENUE> EXPENDITURE 481215.00 1315.67 .3 479899.33 24992.23- 24992.23- 100.0 .00 . 1 GL104C THE CITY OF DUBLIN STATEMENT SHOWING . PAGE 1 10/24/96 REVENUES VERSUS EXPENDITURE 9.53.42 FOR THE PERIOD 7/95 THROUGH 6/96 CAPITAL IMPROVEMENT FUND . CURRENT PERIOD PREVIOUS YEAR ENDING JUNE 3D, 1995 BUDGET ACTUAL PERCENT VARIANCE ACTUAL ACTUAL PERCENT VARIANCE FISCAL YR Y.T-D ********REVENUES******* OTHER SOURCES OF REVENUE 686621.00- 839611.07- 122.3 152990.07 134271.44- 134271.44- 100.0 .00 TOTAL REVENUE 686621.00- 839611.07- 122.3 152990.07 134271.44. 134271.44- 100.0 .00 *******EXPENDITURES******* GENERAL GOVERNMENT ACTIVITIES: ACTIVITY TOTAL .00 .00 .00 .00 .00 .00 PUBLIC SAFETY: TRANSPORTATION: HEALTH & WELFARE: CULTURE & LEISURE SERVICES: COMMUNITY DEVELOPMENT: CAPITAL IMPROVEMENT PROJECTS: GENERAL CIP PROJECTS 25000.00 .00 25000.00 .00 .00 .00 COMMUNITY IMPROVEMENTS 11006.00 8021. n 72.9 2984.23 7119.43 7119.43 100.0 .00 STREET CONSTRUCTION/IMPROVMT 913109.00 707259.92 n.5 205849.08 280120.88 280120.88 100.0 .00 ACTIVITY TOTAL 949115.00 715281.69 75.4 233833.31 287240.31 287240.31 100.0 .00 TOT A L EXPENDITURES 949115.00 715281.69 75.4 233833.31 287240.31 287240.31 100.0 .00 EXCESS [REVENUE>EXPENDITURE 262494.00 124329.38- 47.4- 386823.38 152968.87 152968.87 100.0 .00 TRANSFERS IN FROM OTHER FUNDS .00 .00 .00 276446.78- 276446.78- 100.0 :. TRANSFERS OUT TO OTHER FUNDS .00 29531.04 29531.04- .00 .00 EXCESS [REVENUE> EXPENDITURE 262494.00 94798.34- 36.1- 357292.34 1234n.91- 1234n.91- 100.0 .00 . <t iL 1 04C THE CITY OF DUBLIN STATEMENT SHOWING PAGE 1 0/24/96 REVENUES VERSUS EXPENDITURE 9.57.12 FOR THE PERIOD 7/95 THROUGH 6/96 . TRUST/AGENCY FUND CURRENT PERIOD PREVIOUS YEAR ENDING JUNE 30, 1995 BUDGET ACTUAL PERCENT VARIANCE ACTUAL ACTUAL PERCENT VARIANCE FISCAL YR Y-T-D *******REVENUES******* 'ECIAL BENEFITS ASSESSMENTS 234630.00- 234629.50- 100.0 .50- 222337.10- 222337.10- 100.0 .00 SES OF MONEY AND PROPERTY 14000.00- 11997.60- 85.7 2002.40- 7111.65- 7111.65- 100.0 .00 TOTAL REVENUE 248630.00- 246627.10- 99.2 2002.90- 229448.75- 229448.75- 100.0 .00 ******EXPENOITURES******* ENERAL GOVERNMENT ACTIVITIES NON-DEPARTMENTAL 229585.00 232584.50 101.3 2999.50- 242864.50 242864.50 100.0 .00 ACTIVITY TOTAL 229585.00 232584.50 101.3 2999.50- 242864.50 242864.50 100.0 .00 UBLI C SAFETY: RANSPORTATlON: EALTH & WELFARE: ULTURE & LEISURE SERVICES: OHMUNITY DEVELOPMENT: APITAL IMPROVEMENT PROJECTS: OTAL EXPENDITURES 229585.00 232584.50 101.3 2999.50- 242864.50 242864.50 100.0 .00 :<CESS(REVENUE)EXPENDITURE 19045.00- 14042.60- 73.7 5002.40- 13415.75 13415 .75 100.0 .00 XCESS (REVENUE) EXPENDITURE 19045.00- 14042.60- 73.7 5002.40- 13415.75 13415.75 100.0 .00 . . 1 Gl104C THE CITY OF DUBLIN STATEMENT SHO~ING PAGE 1 10/24/96 REVENUES VERSUS EXPENDITURE 9.44.21 FOR THE PERIOD 7/95 THROUGH 6/96 INTERNAL SERVICE FUND PREVIOUS YEAR ENDING JUNE 30, 1~ CURRENT PERIOO BUDGET ACTUAL PERCENT VARIANCE ACTUAL ACTUAL PERCENT VARIANCE FISCAL YR Y-T-D ********REVENUES******* USES OF MONEY AND PROPERTY 18375.00- 15884_33- 86.4 2490.67- 18553.23- 18553.23- 100.0 .00 CHARGES FOR SERVICES 183656.00- 184255.91- 100.3 599.91 128050.00- 128050.00- 100.0 .00 OTHER SOURCES OF REVENUE 15200.00- 29894.08- 196.7 14694.08 2128.54- 2128.54- 100.0 .00 TOTAL REVENUE 217231.00- 230034.32- 105.9 12803.32 148731.77- 148731.77- 100.0 .00 *******EXPENDITURES******* GENERAL GOVERNMENT ACTIVITIES: NON-DEPARTMENTAL 275604.00 184660_68 67.0 90943.32 121037.02 121037.02 100.0 .00 ACTIVITY TOTAL 275604.00 184660.68 67.0 90943.32 121037.02 121037.02 100.0 .00 PUBLl C SAFETY: TRANSPORTATION: HEALTH & ~ElFARE: CULTURE & lEISURE SERVICES: COMMUNITY DEVELOPMENT: CAPITAL IMPROVEMENT PROJECTS: GENERAL CIP PROJECTS .00 .00 .00 9832.11 9832. 11 100.0 .00 ACTIVITY TOTAL .00 .00 .00 9832.11 9832.11 100.0 .00 TOT A l EXPENDITURES 275604.00 184660.68 67.0 90943.32 130869.13 130869.13 100.0 .00 EXCESS [REVENUE>EXPENOITURE 58373.00 45373.64- 77.7- 103746.64 17862.64- 17862.64~ 100.0 :It EXCESS [REVENUE> EXPENDITURE 58373.00 45373.64- 77.7- 103746.64 17862.64 - 17862.64- 100.0 . ID L104C THE CITY OF DUBLIN STATEMENT SH~ING PAGE 1 0/24/9(1 REVENUES VERSUS EXPENDITURE 9.49.03 FOR THE PERIOD 7/95 THROUGH 6/96 . ENTERPRISE FUNDS CURRENT PERIOO PREVIOUS YEAR ENDING JUNE 30, 1995 BUOGET ACTUAL PERCENT VARIANCE ACTUAL ACTUAL PERCENT VARIANCE FISCAL YR Y-T-D *******REVENUES******* SES OF MONEY AND PROPERTY 1709280.00- 1594060.99- 93.3 115219.01' 1565843.45- 1565843.45- 100.0 .00 TOTAL REVENUE 1709280.00- 1594060.99- 93.3 115219.01- 1565843.45- 1565843.45- 100.0 .00 '*****EXPENOITURES******* ,NERAL GOVERNMENT ACTIVITIES: NON-DEPARTMENTAL 1604505.00 1388507.17 86.5 215997.83 1412754.98 1412754.98 100.0 .00 ADMIN SERVICES 7708.00 6948.40 90.1 759.60 7346.35 7346.35 100.0 .00 ACTIVITY TOTAL 1612213.00 1395455.57 86.6 216757.43 1420101.33 1420101.33 100.0 .00 JBLlC SAFETY: DISASTER PREAPREDNESS 1225.00 1226.33 100.1 1.33- .00 .00 .00 ACTIVITY TOTAL 1225.00 1226.33 100.1 1.33- .00 .00 .00 ~ANSPORTATION: :ALTH & WELFARE: :LTURE & LEISURE SERVICES: RECREATION ADMINISTRATION 11240.00 10125.56 90.1 1114.44 11036.94 11036.94 100.0 .00 SENIOR CENTER 462.00 200.00 43.3 262.00 420.00 420.00 100.0 .00 ACTIVITY TOTAL 11702.00 10325.56 88.2 1376.44 11456.94 11456.94 100.0 .00 JMMUNITY DEVELOPMENT: ~PITAL IMPROVEMENT PROJECTS: o T~XPENDITURES 1625140.00 1407007.46 86.6 218132.54 1431558.27 1431558.27 100.0 .00 ':E NUE>EXPENDITURES 84140.00- 187053.53- 222.3 102913.53 134285.18- 134285.18- 100.0 .00 L\NS IN FROM OTHER FUNDS .00 18673.28- 18673.28 18407.91- 18407.91- 100.0 .00 :ESS [REVENUE> EXPENDITURE 84140.00- 205726.81' 244.5 121586.81 152693.09- 152693.09- 100.0 .00 . 1/ Exhibit 4 CITY OF DUBLIN COMPARISON OF FUND BALANCE (NET OF LIABILITIES) . General & Special Revenue Funds June 30, 1995 and June 30, 1996 GENERAL FUND 1995 1996 Difference % Change Reserve For: Investments Held to Maturity $14.299,648 $13,580.822 ($718,826) -5.03% Prepaids $4,715 $5,610 $895 18.98% Unreserved .Designated For: Cemetary Endowment $60,000 $60,000 $0 Economic Uncertainty $1,369.133 $1,369,133 $0 Authorized Expenditures $3,732,305 $6,210,282 * $2,477,977 * 66.39% TOTAL GENERAL FUND $19,465,801 $21,225,847 $1,760,046 8.29% SPECIAL REVENUE FUNDS Special Criminal Activity $1,291 $764 ($527) -40.82% Vehicle Abatement $26,518 $36,452 $9,934 37.46% Traffic Safety ($5,543) $0 $5,543 .100.00% State Gas Tax $469,199 $781,940 $312,741 66.65% Community Development Block Grant $0 $0 $0 Intermodal Surface Transportation Efficiency Act $0 $0 $0 . FEMA- Disaster Grant N/A $0 $0 Park Dedication $34,735 $401,411 $366,676 1055.64% Transportation Sales Tax Measure B $8,045 $20,783 $12,738 158.33% SB 300 Transportation Grant $0 $0 $0 Measure D Recycling $190,982 $89,270 ($101,712) -53.26% Garbage Service $312,080 $44,264 ($267,816) -85.82% Storm Water Run.off p NPDES $14,417 $58,387 $43,970 304.99% San Ramon Road Specific Plan $41,047 $10,210 ($30,837) -75.13% Maintenance District - Street Lighting $190,891 $198,379 $7,488 3.92% Maintenance District - Stagecoach Road $29,488 $35,243 $5,755 19.52% Maintenance District. Dougherty Road $126,753 $143,031 $16,278 12.84% TOTAL SPECIAL REVENUE FUNDS $1,439,903 $1,820,134 $380.231 20.89% * June 30, 1996 figure includes adjustment of $236,676 associated with implementation of GASB 22. . This is a one-time accounting change relating to the timing of receipt of certain tax revenues. EXHIBIT 4 I{}- ,<\3;{ :;;/~ /," ,_.~-'.. .1/ . /.,> ~ ,/, ;,-/ ~ . !III/~'I ~ \\\'. CITY OF DUBLIN ill)i~ ~ ,,1 ~'.\.(,::.-,,~~~ /(J//;,) . '.~/ ,. PO Box 2340, Dublin, California 94568 ~~~ November 20, 1996 . City Offices, 100 Civic Plaza Dublin, California 94568 Mayor and Members of the City Council: The purpose of this document is to outline steps taken by Staff to address items identified by the external audit firm during the preparation of the Financial Reports for the year ending June 30, 1996. Electronic Data Processing (EDP) Emergency Plan The Auditors suggested and Staff concurs that it would be prudent to identify a location for City computer operations, in the event that the Financial System Hardware cannot be operated for an extended period of time. Staff will make contact with the firm which supports the City Financial System Software and is located in Stockton. It is anticipated that stand-by arrangements could be made in the event of a major interruption in the use of the current IBM System 36, As the City anticipates the replacement of this hardware in the near future, Staff will obtain information on alternatives when soliciting proposals for a replacement system. Treatment of Dublin Information. Inc. As An Enterprise Fund The Auditors have suggested that the City may wish to consider a more traditional presentation of OIl activities as a Debt Service Fund, rather than an Enterprise Fund. Staff believes that it should not be necessary to make this change. This position is based upon the relatively short term nature of the outstanding Certificates of Participation. Current policies adopted by the City Council anticipate eliminating the debt service in Fiscal Year 1998-99, through a-payment. The presentation is acceptable from a technical accounting perspective since the Civic Center is d by DlI until the Certificates of Participation are retired. Update of Fixed Asset System The auditors identified a need to update the system used to account for fixed assets. The City purchased a new computerized Fixed Asset system and training was completed in the first quarter of Fiscal Year 1996-97. Staff is proceeding with the conversion of the data and updating the listings in accordance with adopted City Council policies. It is anticipated that the update should be available at the time of the 1996-97 Audit. Staff will develop policies related to the periodic inventory of the assets. Improve Timeliness of Submittal of Grant Reimbursement Invoices Typically Grant Funded programs require that the City expend monies and then submit documentation for reimbursement. The largest source of grants has been Transportation Grants (i.e. ISTEA, SL TPP, TDA, etc.) administered by the Public Works Department. The Finance Department has been working with Public Works to improve communications and where possible secure advances from the granting agency. However, in some cases the final grant payment has been withheld for extended periods due to a need for additional reporting by the City. The new Finance Manager position will provide additional resources to assist with the follow-up and monitoring of any outstanding items. As noted by the Auditors none of these items have a material affect on the City financial position or operations. Staff has discussed the approach with the Auditors and appreciates the opportunity to consider improvements to the rn'lnicipaloperations. I.ctfllllY Submitted, CP~ .b~ Paul S. Rankin Assistant €Jlt)""MnI\3!!ef0'AI:lI'niI1istt<l1live-Sel'vk'e'slDiH:Etor ~ ~11"lIlU' Ic;!,",~ \; ;:,i.ll)' !~,:i ,~,",: I "i"" I . ~ ~~\~(' ~ ilt,."\:;\ln~\r11 (~) ll~\ 0JJ-l)1)2U . ErHll!)llf)'lnq (~101 HJ.~-~;(~.i\' . 1\!.I'l"I": .,1' ., f~',"".' ~'1,)" ,U:).;i,'-,' . P,,!'i": Wt)',;; ('11111 il:n-tit~:h) · ."', ,,',II,,'" ." :'.'.' "', EXI-IIBIT 6 3 .. (,dry T Cictldla, <;'1''/\. I )'JIlalrl A, Drii'tmier, C.PA (ir<~g(}ry P. Cool..;" C.P/\. Dennis A. Pringk', C.!'A I~on S. Wllite, cr,,\. J{OY J. 81<1ir, cr..\. Jdfrcy ^- umer, <;'1',\. Kdren While, '-:'I.'.A. vavrinek, Trine, Day & Co. C;('rllfl(',1 P,Il)lw ,\1 "{"(J\lIl1;ulls Lind;l S. Todd, C./'^. (:. 'nHll NdsOll, '../'." K,.vin T PlIllidm, ';)'A Ilei"i E. Ross, <;.1....\ TI10m,ls A. IIrewer, C.I'..\.. DOl vi" L. O,Wlnn, <;'1',\. . JiHnCS [3<1Is<lno. PrlrlCipOlI Jerl A. Wenger. prim:ipOlI C11,lrlcs I I. Gil'!ow, Jr.. C:OrlSult,.lrll Ml'rlllH'rs: . AfllCrWill"1 lnstillllc 01 Ccrtili('d PIII)!i{" l\(TOIUllIlIlts . SEe prdcti{T SITlinr1 . Cnlllornin ~()("icty of CCrlilied Pul>!i(' ACCCHHlfcHllS . WeSI(-.rn /\.sSOCiillioll 01 :\("c()tlIl1ln~ Finns INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH THE PROPOSITION III 1996~97 APPROPRIATIQN LIl\.1lT INCREMENT To the Mayor and Members of the City Council City of Dublin, California We have applied the procedures below to the Budget Appropriations Limit Worksheet (Worksheet) for the City of Dublin for the year ended June 30, 1997. These procedures, which were suggested by the League of California Cities and presented in their Article XIIIB Appropriations Limitation Uniform Guidelines (Guidelines) were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report is intended for the infonnation of management and the City Council; however, this restriction is not intended to limit the distribution of this report, which is a matter of public record. At your request, based on the League of California Cities' interpretation of Article XIIIB of the California Constitution, the scope of our work excluded any tests or other procedures regarding the accuracy of the 1978~ 79 or 1986-87 "base year" appropriations limit calculations. The procedures you requested us to perform and our findings were as follows: A. We obtained the Worksheet and detennined that the limit and annual adjustment factors were adopted by . resolution of the City Council. We also detennined that the population and inflation options were selected by a recorded vote of the City Council. B. For the Worksheet, we computed the 1996-97 Appropriations Limit by multiplying the Adopted 1995-96 Appropriations Limit by the Total Growth Factor. c. For the Worksheet, we agreed the Per Capita Income, County and City Population Factors to California State Department of Finance Worksheets. We agreed the Nonresidential Assessed Valuation Factor to a City of Dublin Finance Department worksheet. D. We agreed the 1996-97 Appropriations Limit to a resolution of the City Council. These agreed-upon procedures are substantially less in scope than an audit, the objective of which is the expression of an opinion on the Worksheet. Accordingly, we do not express such an opinion. Based on the application of the procedures referred to above, nothing came to our attention which caused us to believe that the accompanying Worksheet was not computed in accordance with Article XmB of the California Constitution, as interpreted in the California League of Cities Article XllIB Appropriations Limit Unifonn Guidelines. Had we perfonned additional procedures or had we made an audit of the Worksheet and the other completed worksheets described above, matters might have come to our attention which would have been reported to you. v~ I'/~lb'if " Co. September 24, 1996 Pleasanton, California . H~ 70 ..\SpCIl SI n'( 'I . Hdr wi \() Ct \('; Hll()Il~\d, (:,\ ! I 1 7: l() I', () 1 \();>; -I".>()7 . I~, Hwl \( ) ( :ll(', HIl< 1I1g; I. (:r\ !ll 7~!l-"~,I,()7 (!IO!l) "t(;(;-I,~I() '1:,\)\ (!J()!J) .1(;(;-.1,1:\1 \\'11/1 ()llin's L()'i1I('d: 1'"n-SI.I() I'I<',IS,HII'>I) I., I~\lllli I 1 lilL" EXI-IIBIT 7 1'/