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HomeMy WebLinkAbout4.6 - 3513 FY 2019-20 CAFR Page 1 of 6 STAFF REPORT CITY COUNCIL DATE: December 15, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Comprehensive Annual Financial Report (CAFR) and Annual Audit for Fiscal Year Ending June 30, 2020 and Supplemental Reports Completed by the Auditors Prepared by: Lisa Hisatomi, Director of Administrative Services EXECUTIVE SUMMARY: The City Council will receive the Comprehensive Annual Financial Report (CAFR), for the Fiscal Year ending June 30, 2020. This report includes financial statements prepared by Staff along with the audit prepared by Badawi and Associates, the independent auditors selected by the City Council. The CAFR is a report which encompasses information beyond minimum financial reportin g requirements. The Auditors have provided a "clean opinion" based on their review. The Auditors have also completed the following supplemental reports: 1) a compliance audit of the Alameda County Transportation Commission Measure B Funds; 2) a compliance audit of the Alameda County Transportation Commission Measure F Fund Vehicle Registration Fee Program; 3) a compliance audit of the Alameda County Transportation Commission Measure BB Funds; 4) a compliance audit of the State of California Transportation Development Act Fund; and 5) a review of the City's Annual Appropriations Limit Calculation. These reports have been reviewed by the City Council Ad -Hoc Audit Subcommittee. STAFF RECOMMENDATION: Receive the reports. FINANCIAL IMPACT: Summarized financial information is discussed in this Staff Report, and Attachment 1 provides a guide to key information found in the CAFR. The full CAFR is included as Attachment 2. All other audit reports are included as Attachments 3 -8. Page 2 of 6 DESCRIPTION: The City of Dublin has prepared its Comprehensive Annual Financial Report (CAFR) for the Fiscal Year ending June 30, 2020. The CAFR (Attachment 2) includes audited financial statements reviewed by Badawi and Associates, the independent auditors selected by the City Council. Ad-Hoc Audit Committee Review The auditors met with the City Council Ad-Hoc Audit Committee, comprising City Councilmember Josey and Councilmember Kumagai, on December 8, 2020, 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 Cit y 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. S ome of the important financial results include an increase of $28.7 million in net assets, 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 on). It is important to note that the amount reported as Total Net Assets includes: 1. $539.8 million (64% of total net assets) in investments in capital assets (e.g. land, infrastructure, buildings, and equipment). 2. $109.9 million (13% of total net assets) are subject to external restrictions on how they can be used, such as development impact fee funds. 3. $193.4 million (23% of total net assets) in net assets are unrestricted. Page 3 of 6 TABLE 1: SUMMARY OF NET POSITION June 30, 2020 and 2019 June 30, 2020 June 30, 2019 $ Change % Change Item Current and Other Assets 320,752,157 304,210,680 16,541,477 5.4% Notes Receivable 15,919,535 15,098,282 821,253 5.4% OPEB Asset 4,191,028 1,724,741 2,466,287 143.0% Capital Assets 539,809,963 531,251,006 8,558,957 1.6% Total Assets 880,672,683 852,284,709 28,387,974 3.3% Deferred Outflows of Resources 4,964,988 4,802,003 162,985 3.39% Current Liabilities 22,436,065 23,953,064 (1,516,999) -6.3% Noncurrent Liabilities 15,861,699 16,318,907 (457,208) -2.8% Total Liabilities 38,297,764 40,271,971 (1,974,207) -4.9% Deferred Inflows of Resources 4,200,088 2,449,332 1,750,756 71.5% Net Investment in Capital Assets 539,809,963 531,251,006 8,558,957 1.6% Restricted 109,947,040 105,409,183 4,537,857 4.3% Unrestricted 193,382,816 177,705,220 15,677,596 8.8% Total Net Position 843,139,819 814,365,409 28,774,410 3.5% Governmental Activities Auditors’ Communication (Governance Letter) (Attachment 3) The Governance Letter includes a report on the City's accounting and reporting procedures, as well as recommendations for process improvements. The report does not note any issues for Fiscal Year 2019-20. 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 2019-20 year-end major fund reserves established in accordance with this policy is shown on CAFR page 74. The following table summarizes the fund balances for all City funds: TABLE 2: GOVERNMENTAL FUND BALANCE CHANGES June 30, 2020 and 2019 June 30, 2020 June 30, 2019 $ Change % Change General Fund 190,649,221 171,225,773 19,423,448 11.3% Affordable Housing Fund 29,121,150 28,731,551 389,599 1.4% Measure BB Grant Fund (3,017,852) (3,619,580) 601,728 16.6% Capital Improvement Funds 59,628,164 62,835,345 (3,207,181) -5.1% Other Governmental Funds 15,643,367 15,405,858 237,509 1.5% Total Governmental Funds 292,024,050 274,578,947 17,445,103 6.4% As shown above, General Fund Reserves totaled $190.6 million as of June 30, 2020. $58.4 million of that is available for cash flow purposes, equating to approxima tely eight months of budgeted operating expenditures in Fiscal Year 2020-21. This exceeds the Page 4 of 6 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 are: 1. A compliance audit of Alameda County Transportation Commission (ACTC) Measure B Funds 2. A compliance audit of the ACTC Vehicle Registration Fee (Measure F) Program 3. A compliance audit of the ACTC Measure BB Funds 4. A compliance audit of the Transportation Development Act (TDA) Fund 5. A review of the City's Annual Appropriations Limit Calculation The City did not meet the threshold of $750,000 in expenditures of federal funds in Fiscal Year 2019-20, 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 Fiscal Year 2019-20, the following projects were funded by Measure B: - Alamo Creek Trail Repair - Amador Valley Blvd. - Wildwood Road Intersection Improvements - Annual Street Resurfacing - Citywide Bicycle and Pedestrian Improvements 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, 2020, the Local Streets fund balance of $307,369 is assigned to a Capital Reserve for the continued street improvement projects, and the Bike/ Pedestrian fund balance of $202,655 is restricted to the appropriate related bike and pedestrian program improvements. ACTC Vehicle Registration Fee (Measure F) 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, 2020, the ACTC VRF fund had a balance of $284,556 in restricted funds. The Fiscal Year 2019-20 budget appropriated funds from this source to support upgrades to citywide traffic signals. ACTC Measure BB Funds 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 Page 5 of 6 Transit for Seniors and People with Disabilities; 3) Local Streets and Roads; and 4) Bicycle and Pedestrian Path and Safety. As of June 30, 2020, the Measure BB Fund had a restricted fund balance of $477,097 for Local Streets and Roads, and $198,091 restricted for Bicycle and Pedestrian improvements. During Fiscal Year 2019-20, the following projects were funded by Measure BB: - Alamo Creek Trail Repair - Amador Valley Blvd. - Wildwood Road Intersection Improvements - Annual Street Resurfacing - Citywide Bicycle and Pedestrian Improvements TDA 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 funds to eligible agencies within the greater San Franci sco Bay area. The TDA grant funds in the amount of $210,000 allocated to the City are for bicycle and pedestrian improvements. During Fiscal Year 2019-20, $71,773 was spent on the Citywide Bicycle and Pedestrian Improvements project, and the remaining of the grant, in the amount of $138,227, has been carried over to FY 2020-21. 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 ed 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 $398,039,721 Limit as presented in the Fiscal Year 2020-21 Budget. There were no exceptions noted in the findings. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. Summary - Key Information 2. City of Dublin CAFR Fiscal Year 2019-20 3. City of Dublin Fiscal Year 2019-20 Auditors’ Communication with Those Charged with Governance 4. City of Dublin Fiscal Year 2019-20 Measure B Report 5. City of Dublin Fiscal Year 2019-20 Measure F Report 6. City of Dublin Fiscal Year 2019-20 Measure BB Report Page 6 of 6 7. City of Dublin Fiscal Year 2019-20 Transportation Development Act Fund Report 8. City of Dublin Appropriations Limit Fiscal Year 2020-21 SUMMARY - KEY INFORMATION COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2020 City Council Meeting December 1 5, 2020 1. The reports include audited financial statements reviewed by the City's audit firm, Badawi & Associates. 2. The auditors’ opinion is 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 REPORT: a. Transmittal letter (pages v-xiii): provides a general overview of economic and budgetary factors that impact the City. b. Opinion (pages 1-3): issued by the Independent Auditor on the City’s financial position and compliant with generally accepted accounting principles. 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 in 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 24-26 present the Government-Wide Statement of Net Position, which presents the City’s finances in a format similar to financial statements used by private corporations. That section is followed by financial statements for each fund. e. Statistical Section (pages 178-end): the unaudited statistical section of the CAFR includes relevant historical data. 5. Fund Balances - A complete listing of fund reserves and designations for all major funds is shown on page 74 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 that need improvement. The report for Fiscal Year 2019-20 does not note any findings. This information is presented as a separate document titled " Auditors’ Communication with Those Charged with Governance". ATTACHMENT 1 COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year ended June 30, 2020 City of Dublinc a l i f o r n i a Dublin, California Comprehensive Annual Financial Report For the year ended June 30, 2020 Prepared by: Administrative Services Department City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2020 Table of Contents i Page INTRODUCTORY SECTION Table of Contents ...................................................................................................................................................... i Letter of Transmittal ................................................................................................................................................. v Principal Officers ...................................................................................................................................................... xiv Organizational Chart ................................................................................................................................................ xv GFOA Certificate of Excellence in Financial Reporting ...................................................................................... xvi FINANCIAL SECTION Independent Auditors’ Report .............................................................................................................................. 1 Management’s Discussion and Analysis ............................................................................................................. 5 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position ........................................................................................................................... 24 Statement of Activities ................................................................................................................................ 26 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet .......................................................................................................................................... 30 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................. 33 Statement of Revenues, Expenditures and Changes in Fund Balances ......................................... 34 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ................................................................................................................... 37 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual: General Fund ................................................................................................................................... 38 Affordable Housing Special Revenue Fund ............................................................................... 39 Measure BB Grants Special Revenue Fund ................................................................................. 40 City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2020 Table of Contents, Continued ii Page FINANCIAL SECTION, Continued Proprietary Fund Financial Statements: Statement of Net Position ..................................................................................................................... 42 Statement of Revenues, Expenses and Changes in Fund Net Position ......................................... 43 Statement of Cash Flows ...................................................................................................................... 44 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position ................................................................................................... 47 Notes to Basic Financial Statements ................................................................................................................ 51 Required Supplementary Information (Unaudited): Defined Benefit Pension Plan Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years ................. 93 Schedule of Contributions – Last 10 Years ............................................................................................... 93 Other Post Employment Benefits (OPEB) City Retiree Health Plan – Schedule of Changes in Net OPEB Liability and Related Ratios ........................................................................................................................................ 94 DRFA Retiree Health Plan – Schedule of Changes in Net OPEB Liability and Related Ratios ........................................................................................................................................ 95 Schedule of City Retiree Health Plan Contributions – Last 10 Years ................................................... 95 Supplementary Information: General Fund – Budget Versus Actual Schedule of Budget Versus Actual Revenue by Sources ........................................................................ 99 Schedule of Budget Versus Actual Departmental Expenditures .......................................................... 102 Budgeted Major Governmental Funds Other than General Fund and Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual: General Improvements Projects Capital Projects Fund ................................................................... 107 Parks Projects Capital Projects Fund .................................................................................................. 108 Streets Projects Capital Projects Fund ................................................................................................ 109 City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2020 Table of Contents, Continued iii Page FINANCIAL SECTION, Continued Public Facilities Impact Fees Capital Projects Fund ......................................................................... 110 Fire Impact Fees Capital Projects Fund .............................................................................................. 111 Traffic Impact Fees Capital Projects Fund ......................................................................................... 112 Dublin Crossing Contribution Capital Projects Fund ...................................................................... 113 Non-Major Governmental Funds: Combining Balance Sheet .................................................................................................................................. 118 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................. 124 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ................. 130 Internal Service Funds: Combining Statement of Net Position ............................................................................................................. 164 Combining Statement of Revenues, Expenses and Changes in Net Position ............................................ 166 Combining Statement of Cash Flows .............................................................................................................. 168 Fiduciary Funds: Combining Statement of Assets and Liabilities ............................................................................................. 173 Statement of Changes in Agency Funds Assets and Liabilities ................................................................... 174 STATISTICAL SECTION (Unaudited) Net Position by Component .................................................................................................................................... 178 Changes in Net Position ........................................................................................................................................... 180 Fund Balances of Governmental Funds ................................................................................................................. 184 Changes in Fund Balances of Governmental Funds ............................................................................................ 186 Assessed Value of Taxable Property ...................................................................................................................... 188 Direct and Overlapping Property Tax Rates ......................................................................................................... 190 Principal Property Taxpayers ................................................................................................................................. 192 Property Tax Levies and Collections ..................................................................................................................... 193 Direct and Overlapping Debt .................................................................................................................................. 194 City of Dublin Comprehensive Annual Financial Report For the year ended June 30, 2020 Table of Contents, Continued iv Page STATISTICAL SECTION (Unaudited), Continued Legal Debt Margin Information ........................................................................................................................... 196 Demographic and Economic Statistics ................................................................................................................ 198 Property Value, Construction, and Bank Deposits ............................................................................................ 199 Principal Employers ............................................................................................................................................... 200 Full-Time Equivalent City and Contract Government Employees by Function ........................................... 202 Operating Indicators by Function/Program ...................................................................................................... 204 Capital Asset Statistics by Function/Program ................................................................................................... 206 Top 25 Sales Tax Producers .................................................................................................................................. 208 Miscellaneous Statistical Data .............................................................................................................................. 209 v December 15, 2020 Honorable Mayor and Members of the City Council: Presented with this letter is the City of Dublin (City) Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2020. 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. Badawi & Associates, 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, 2020. The independent auditor’s report has been included in this Comprehensive Annual Financial Report. This letter of transmittal is designed to assist with an individual’s review of the City’s financial statements. Specifically, it is intended to offer the reader useful information in assessing the economic conditions impacting the City of Dublin. It also complements the separate Management’s Discussion and Analysis (MD&A) narrative section, which provides financial highlights of the City and additional analysis of trends reported as part of the financial statements. The MD&A is located immediately following the report of the independent auditors. CITY PROFILE The City of Dublin was incorporated in 1982 and is located in Alameda County, 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. And, in 2018 the City was named one of the best places to live in the United States, according to Money Magazine. The City provided for a permanent staffing level of approximately 94 full- time equivalent City employees in the FY 2019-20 budget cycle, in addition to temporary and contract personnel. The City serves an estimated population of 65,716 covering 14.91 square miles. The City’s strategic location offers opportunities for employers, retailers, and high-quality residential neighborhoods. vi The City operates under the Council-Manager form of government. Policy-making and legislative authority are vested in the City Council, which consists of a directly elected Mayor, who serves a two-year term, and four at-large 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 implementing the policies, ordinances, and directives of the City Council, overseeing the day-to-day operations of the City, and the appointments of the City’s departments. The City Attorney provides legal counsel on City business, drafts and reviews ordinances, resolutions and contracts, and represents the City in certain litigation. The City’s biennial budget serves as the foundation for the City’s financial planning and control. The operating budget is adopted by the City Council on an annual basis prior to July 1 of each year. During mid-cycle, a review and update are prepared and presented to the City Council for the adoption of the second year’s budget. The City Council exercises budgetary control at the fund level. Formal budgetary integration is employed as a management control device during the fiscal year for the General Fund, Special Revenue Funds, Capital Projects Funds, Enterprise Funds and Internal Service Funds. The budgeted funds are adopted on a basis consistent with GAAP in the United States. Expenditures may not legally exceed budgeted appropriations at the fund level. Management does not have the authority to increase the budget without the approval of the City Council. However, the City Manager may authorize budgetary transfers from one account to another within the same fund, appropriate funds from Committed and Assigned fund balances that have been approved by the City Council for specific purposes and appropriate funds for asset replacement funded by the City’s Internal Services Replacement funds. Current City services include: the City Manager’s Office (including General Administration, Human Resources, Communications, City Clerk/Records, Disaster Preparedness, Information Systems, and Economic Development); Administrative Services (Finance and Risk); City Attorney; Police Services; Fire Services; Community Development (Building/Planning/Housing); Parks and Community Services; and Public Works (Engineering/Maintenance). The City contracts with both public agencies and private firms to provide a variety of key services including: Building Inspection; Fire; Police; and Public Works maintenance. A total of 150.91 FTE contract employees were included in the City budget in FY 2019-20. 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 / townhome developments. The proximity to additional job centers and colleges and universities in the Bay Area creates an attractive environment. vii 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 housing opportunities as well as new potential retail space that will support a high quality of life in Dublin. In addition, the City’s aquatics complex, The Wave, offers residents and visitors a recreation destination with pools, slides, and play structures situated in the center of the community. 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, particularly as the City reaches build-out. Key City activities and accomplishments during FY 2019-20 include the following: Economic Development viii ix x Government Administration The City has continued to implement programs to enhance community engagement efforts to better connect and inform residents of City activities. The City strengthened social media efforts with the addition of several new platforms and created a series of public service announcements. For the 16th consecutive year, the City held the annual Inside Dublin Leadership Academy, a seven-week program in which Dublin residents learned about many aspects of the City’s municipal operations including infrastructure, public safety, and community development. xi Awards and Honors In FY 2019-20 the City and its staff received numerous awards and honors for accomplishments in various areas of community services and improvements. These include the following: − “A” Grade from the American Lung Association − “A+” Grade, “Best Places to Live,” from Niche.com − #2 “Best Place to Live in Northern California,” from Moneyinc.com − Achievement in Pavement Maintenance - #1 in San Francisco Bay Area for sixth straight year, from Metropolitan Transportation Commission − Laurie Sucgang, Manager of the Year – Administrative Management; Nancy Nelson, Staff of the Year – Administrative Management; and consultant Lorin Jensen, Staff of the Year – Engineering and Technology, from the Northern California Chapter of the American Public Works Association − Deputy Christina Blaylock, Dublin Police Services Officer of the Year; and Public Education Assistant Rachel Messenger, Dublin Fire Services’ Person of the Year, from Dublin Rotary Club FINANCIAL OUTLOOK The COVID-19 pandemic and related shelter-in-place restrictions have had a significant impact on the national and local economies, with indicators showing signs of a coming recession. Locally, the City faced operational impacts particularly related to the closing of City facilities and the suspension of certain programs. In addition, the City is experiencing large revenue losses, including taxes and investment income, that are tied to declines in the broader economy. Staff expects these impacts to continue for the foreseeable future and prepared the current two-year budget with this in mind. Property Tax revenue in Fiscal Year 2019-20 increased along with a gain in net assessed valuation by $1.7 billion (10.4%) over the prior year, which was the largest percentage growth in Alameda County. The COVID-19 pandemic did not have a significant impact on Property Tax revenues since the values were placed on the tax roll in calendar year 2018, and there were no significant delinquencies. Overall Sales Tax came in $3.4 million (13.6%) lower than Fiscal Year 2018-19. While the City had expected a decline from the prior year due to one-time receipts in Fiscal Year 2018-19 and to flattening sales in the Autos and Transportation sector, the COVID-19 pandemic and related shutdowns aggravated the decline. In the first two combined quarters of calendar year 2020 compared to the same period the previous year, declines were seen in Autos and Transportation (-9.5%), General Consumer Goods (-21.1%), Business and Industry (-10.7%), Restaurants and Hotels (-24.5%), Building and Construction (-13.2%), and Fuel and Transportation (-21.0%). Some of this decrease may be attributed to deferred payments, however much of it is related to the business closures and modified operations. Development-related revenue is the third largest revenue stream, making up 6.9% of the total General Fund revenues in FY 2019-20. Overall development revenue came in at $6.6 million, a decrease of $3.9 million (37.0%) from FY 2018-19, the decrease is due to the slowdown of development activities prior to the outbreak of COVID-19, which was exacerbated by the pandemic and related industry shutdowns. The City anticipates this downward trend will continue as some of the larger development projects near completion. The City maintains a xii Service Continuity Reserve in the General Fund to ensure that there are future funds to cover expenditures when development activity slows. While FY 2019-20 finished with a General Fund surplus of approximately $19.4 million, including General Fund transfers, long-term fiscal sustainability remains at the forefront of budget discussions. Despite the continued growth in property tax that was occurring prior to COVID-19, declining sales tax and development revenues, the rising costs of contracted services, and the potential for a prolonged recovery from the impacts of COVID-19 are projected to result in the City facing a deficit beginning in FY 2026-27 as illustrated in the 10-Year Forecast (Figure 1). The projected deficit will guide the use of reserves and decisions made in the next operating budget cycle. Figure 1. 10-Year Forecast FINANCIAL PLANNING AND POLICIES The City Council adopted a new, two-year Strategic Plan in Fiscal Year 2019-20. Five specific strategies were identified to establish the framework and overarching policy focus for the delivery of public services to the community; these are contained in the City’s budget document. Adjustments to programs presented by the City Manager in the budget were tied to the prioritization of elements within the Strategic Plan. The City adopts a balanced operational budget in accordance with City policies and uses a two- year budget format. The City Council adopts a final budget and appropriates funds in advance of the July 1st start of the new Fiscal Year. In terms of major capital investments constructed with Impact Fees, the City has operated utilizing a pay-as-you-go philosophy. The City has typically xiii 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. The City paid off that debt in FY 2018-19. 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 both pension and retiree health liabilities. GFOA AWARD The Government Finance Officers Association (GFOA) has recognized the City of Dublin for its Comprehensive Annual Financial Report covering the period ending June 30, 2019. A copy of the award from this entity is included in this report. This award represents the 29th 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, as well as the City’s audit firm, Badawi & Associates. A special thanks and acknowledgement to Yuliana Tjeng, Senior Accountant, for her work managing the audit process. We would also like to recognize the Mayor and City Council for their guidance and support in the City’s pursuit of excellence in financial reporting. Sincerely, Linda Smith Lisa Hisatomi City Manager Director of Administrative Services xiv CITY OF DUBLIN PRINCIPAL OFFICERS Fiscal Year 2019/2020 Mayor David Haubert Vice Mayor Councilmember Arun Goel Melissa Hernandez Councilmember Councilmember Jean Josey Shawn Kumagai ADMINISTRATION PERSONNEL City Manager Linda Smith Assistant City Manager Colleen Tribby City Attorney John Bakker Administrative Services Director Lisa Hisatomi City Clerk Marsha Moore Chief of Police Garrett Holmes Community Development Director Jeff Baker Economic Development Director Hazel Wetherford Fire Marshal Bonnie Terra Human Resources Director Julie Carter Parks & Community Services Director La Shawn Butler Public Works Director Andrew Russell xv 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, 2019 Executive Director/CEO xvi INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin, California (City) as of and for the year ended June 30, 2020, 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 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 entity’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 entity’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. 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, 2020, and the respective changes in financial position, and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund, the Affordable Housing and Measure BB Grants Special Revenue Funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 2 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, pension supplementary schedules, and OPEB supplementary schedules on pages 5-20 and 93-95 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, other budgetary comparison schedules, combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor funds, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The other budgetary comparison schedules, combining and individual nonmajor fund financial statements, and budgetary comparison schedules of nonmajor funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, other budgetary comparison schedules, combining and individual nonmajor fund financial statements, and budgetary comparison schedules of nonmajor funds are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 11, 2020, 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 solely 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 effectiveness of the City’s 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. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 4 This page intentionally left blank   5 Management’s Discussion and Analysis (MDA) June 30, 2020 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, 2020. 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 are intended to serve as an introduction to the City’s basic financial statements, which comprise 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.   6 GOVERNMENT-WIDE FINANCIAL STATEMENTS – ANALYSIS Table 1 provides an analysis summarizing the year to year change in the Government-Wide net position reported for the City of Dublin. By definition the “net position” are represented as the difference between total assets and total liabilities. As illustrated in the above table, the City’s net position increased by $28.8 million (3.5%) during FY 2019- 20. This is due to the following:  Total assets increased $28.4 million, due primarily to increases in cash and investments which is part of current assets, and capital assets. Cash and investments in the General Fund increased by $22.3 million which derived from the net revenue off the expenditures excluding the capital project inter- transfer for the fiscal year. Capital assets increased by $8.6 million due to the net impact of completion of capital projects net off increase in depreciation expense from new depreciable assets additions toward the end of prior year. The completion of Fallon Sports Park Phase 2, a few public art and street projects, and the acquisition of fire apparatus and police vehicles added approximately $21 million to Capital Assets, partially offset by $13 million in depreciation expense.  Total liabilities decreased in FY 2019-20 with a net difference of $2.0 million from 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. The decrease in liabilities reflects the City’s paying down its accounts payable of approximately $0.5 million and the $1.4 million installment payment made on the City’s long-term debt pertaining to the land acquisition for the Dublin Crossing project. TABLE 1: SUMMARY OF NET POSITION June 30, 2020 and 2019 June 30, 2020 June 30, 2019 $ Change % Change Item Current and Other Assets 320,752,157 304,210,680 16,541,477 5.4% Notes Receivable (See Note5) 15,919,535 15,098,282 821,253 5.4% OPEB Asset (Note 11)4,191,028 1,724,741 2,466,287 143.0% Capital Assets 539,809,963 531,251,006 8,558,957 1.6% Total Assets 880,672,683 852,284,709 28,387,974 3.3% Deferred Outflows of Resources 4,964,988 4,802,003 162,985 3.39% Current Liabilities 22,436,065 23,953,064 (1,516,999) -6.3% Noncurrent Liabilities 15,861,699 16,318,907 (457,208) -2.8% Total Liabilities 38,297,764 40,271,971 (1,974,207) -4.9% Deferred Inflows of Resources 4,200,088 2,449,332 1,750,756 71.5% Net Investment in Capital Assets 539,809,963 531,251,006 8,558,957 1.6% Restricted 109,947,040 105,409,183 4,537,857 4.3% Unrestricted 193,382,816 177,705,220 15,677,596 8.8% (See Note 8 to Financials for Classification) Total Net Position 843,139,819 814,365,409 28,774,410 3.5% Governmental Activities   7  The City’s $539.8 million in net investment in capital assets represents 64.0% of total reported net position. 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 the addition of capital assets (including Construction in Progress) less accumulated depreciation.  Restricted net positions, including a portion of restricted net positions in the General Fund, Affordable Housing Fund, Impact Fee Funds and Grant Funds, are resources that have external restrictions on their use. In FY 2019-20, the City’s restricted net positions increased by a net of $4.5 million, attributed to street improvement capital project expenses. Approximately $193.4 million of the City’s total assets (an increase of $15.7 million over 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 in the General Fund are already committed and assigned for specific purposes, in accordance with the City’s Fund Balance and Reserves Policy.   8 GOVERNMENTAL ACTIVITIES Table 2 below provides a summary of major program expense categories, program revenues used to fund specific expenses, and general City revenues available for funding all City programs. The information presented here provides detail behind the numbers shown in the Summary of Net Position (Table 1). TABLE 2: SUMMARY OF CHANGES IN NET POSITION June 30, 2020 and 2019 June 30, 2020 June 30, 2019 $ Change % Change Revenues Program Revenues Charges For Services 19,466,324 24,721,051 (5,254,727) -21.3% Operating Contributions & Grants 4,940,586 7,633,916 (2,693,330) -35.3% Capital Grants & Contributions 9,192,691 34,517,687 (25,324,996) -73.4% Total Program Revenue 33,599,601 66,872,654 (33,273,053) -49.8% General Revenues Property Taxes 49,086,335 44,293,602 4,792,733 10.8% Special Assessments Taxes 1,523,257 1,469,840 53,417 3.6% Sales Taxes 22,506,975 26,297,803 (3,790,828) -14.4% Other Taxes 7,280,323 8,223,510 (943,187) -11.5% Investment Income, Unrestricted 10,485,543 8,589,252 1,896,291 22.1% Intergovernmental, Unrestricted 306,425 287,811 18,614 6.5% Other General Revenues 1,969,966 2,195,719 (225,753) -10.3% Total General Revenue 93,158,824 91,357,537 1,801,287 2.0% Total Revenues 126,758,425 158,230,191 (31,471,766) -19.9% Expenses Governmental Activities: General Government 24,851,393 16,859,216 7,992,177 47.4% Police 22,483,378 21,814,982 668,396 3.1% Fire 14,122,166 13,583,965 538,201 4.0% Public works 21,103,350 24,131,711 (3,028,361) -12.5% Park and Community Services 10,548,537 11,847,056 (1,298,519) -11.0% Community Development 5,406,572 5,606,118 (199,546) -3.6% Total Governmental Activites 98,515,396 93,843,048 4,672,348 5.0% Increase In Net Position 28,243,029 64,387,143 (36,144,114) -56.1% Net Position - Beginning of Year 814,896,790 749,978,266 GASB 75 Adjustment - DRFA - 531,381 (531,381) -100.0% Net Position - Beginning of Year as Restated 814,896,790 750,509,647 64,387,143 8.6% Net Position - End of Year 843,139,819 814,896,790 28,243,029 3.5%   9 As shown in Table 2, revenues from all sources totaled $126.8 million and expenses for all City programs totaled $98.5 million in FY 2019-20. The City’s net position increased $28.2 million. Revenues Overall revenues decreased $31.5 million, or 19.9%, in FY 2019-20 over to the prior year. Changes included:  Charges for Services decreased $5.3 million due to the March 2020 shelter-in-place order. The City experienced a significant decrease in Parks and Recreation program revenues as many recreation programs were cancelled; and the slowdown of development activities prior to the outbreak of COVID-19, which was exacerbated by the pandemic and industry shutdown, contributed to development revenue losses.  Capital Grants and Contributions decreased $25.3 million due to a one-time $12.6 million asset contribution from the developer for the dedication of Jordan Ranch Neighborhood Park to the City in the prior year, and a decrease in developer in-lieu fees by $10 million due to the timing of development activities and the impact of the COVID-19 pandemic.  Property Taxes increased $4.8 million, resulting from an increase to overall assessed property valuations from the number of new homes built since last fiscal year, the number of property sales, and the annual increase to taxable valuations.  Sales Taxes decreased $3.8 million as the result of non-recurring revenue in prior year, flattening sales in the Autos and Transportation sector, and the overall decline related to the COVID-19 pandemic and related shutdowns. Expenses Total expenses increased $4.7 million, or 5.0%, in FY 2019-20 compared to the prior year. The following factors contributed to the overall increase:  General Government expenses increased by a net $8.0 million due to the City’s one-time land acquisition of $3.0 million as part of the City’s Downtown Preferred Vision project, $2.6 million in refunds issued for the Dublin Crossing Transportation Fee received in exchange for the developer’s credit held by the City, and an increase in the Waste Management cost, which was offset by increase in revenues.  Public Works expenses decreased $3.0 million due to lower spending on capital improvement maintenance projects compared to the prior year. The last payment of $0.5 million for the Energy Efficiency lease in the prior year also contributed to lower expenses in the FY 2019-20.  Park and Community Services expenses decreased by $1.3 million due primarily to the cancellation of recreation programs during the COVID-19 pandemic, which reduced seasonal staff salaries, contract services costs for recreational instructors, and operating supplies costs.   10 Revenues and Expenses by Category The following chart presents the Government-Wide FY 2019-20 revenues (in thousands). Approximately 80% of the total revenue is from four sources: 1) Property taxes, 39%; 2) Sales Taxes, 18%; 3) Charges for Services, 15%; and 4) Investment Income, 8%. This is relatively consistent with the prior year. Charges for Services  $19,466, 15%  Operating Grants  & Contributions   $4,941, 4%  Capital Grants  & Contributions  $9,193, 7%  Property Taxes  $49,086, 39%  Special Assessments $1,523, 1%  Sales Taxes  $22,507, 18%  Other Taxes  $7,280, 6%  Investment Income $10,486, 8% Intergovernmental $306, 0%  Other General  Revenues $1,970, 2%    11 The following chart demonstrates the allocation of Government-Wide expenses in FY 2019-20 (in thousands). Of the $98.5 million in total expenses, General Government, Public Works and Police Services are the largest program costs, making up a combined 68% of the total, followed by Fire Services and Parks and Community Services, at 15% and 12%, respectively. FUND FINANCIAL STATEMENTS These statements provide more detailed information about the City’s major funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: Governmental funds, Proprietary funds, and Fiduciary funds. Governmental funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-wide financial statements. However, unlike the Government- wide financial statements, Governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the FY. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of Governmental funds is narrower than that of the Government-wide financial statements, it is useful to compare the information presented for Governmental funds with similar information presented for governmental activities in the Government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the Governmental fund balance sheet and Governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between Governmental funds and governmental activities. General  Government  $24,851, 25% Police  $22,483, 23%Fire Services  $14,122, 14% Public Works  $21,103, 21% Parks & Community  Services $10,549,  11% Community Development  $5,407, 6%   12 The City maintains 67 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 10 funds: General Fund; Affordable Housing Fund; Measure BB Grants; three Capital Project Funds (General 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 as, 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 57 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. The City uses five ISFs to account for its fleet of vehicles, equipment, improvements to City buildings, computer systems and certain retiree costs. 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 five 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 five Agency Funds. The Community Facilities District (CFD) No. 2015-1 “Dublin Crossing” Improvement Area No. 1 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. 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.   13 FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS At June 30, 2020, the City’s governmental funds reported combined ending fund balances of $292.0 million, an increase of $17.4 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. GENERAL FUND The General Fund is the chief operating fund of the City. At the end of FY 2019-20, total fund balance was $190.6 million. The total unassigned amount of $66.9 million reflects an amount calculated for the unrealized gain on investments as well as an amount related to cash flow for ongoing operations. The undesignated cash flow reserve was $58.4 million, representing approximately eight months of budgeted FY 2020-21 expenditures. 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 2019-20, General Fund revenues exceeded expenditures by $28.6 million, before transfers out. Compared to the prior year, General Fund revenues came in $4.4 million lower, from $107.3 million in FY 2018-19 to $102.9 million in FY 2019-20. This is due mainly to lower sales taxes, development revenues, and charges for services, as a result of the COVID-19 pandemic. Expenditures in General Fund departments totaled $74.3 million in FY 2019-20, staying nearly $11.2 million under the final budget (not including transfers out), and coming in $1.4 million higher than actual expenditures in the prior year. The increase was primarily due to a one-time $3.0 million land acquisition cost associated with the Downtown Preferred Vision incurred in FY 2019-20 offset with nearly $1.6 million of expenditures savings from lower operating activities during the COVID-19 pandemic. 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 $29.1 million at June 30, 2020, an increase of nearly $0.4 million over the prior year, due to revenue received in the final year. The fund balance includes an outstanding loan receivable of $15.4 million at June 30, 2020. TABLE 3: GOVERNMENTAL FUND BALANCE CHANGES June 30, 2020 and 2019 June 30, 2020 June 30, 2019 $ Change % Change General Fund 190,649,221 171,225,773 19,423,448 11.3% Affordable Housing Fund 29,121,150 28,731,551 389,599 1.4% Measure BB Grant Fund (3,017,852) (3,619,580) 601,728 16.6% Capital Improvement Funds 59,628,164 62,835,345 (3,207,181) -5.1% Other Governmental Funds 15,643,367 15,405,858 237,509 1.5% Total Governmental Funds 292,024,050 274,578,947 17,445,103 6.4%   14 CAPITAL IMPROVEMENTS FUNDS As previously described, the City has included seven specific capital funds in the information presented as part of the governmental funds. Three of the funds are used to capture expenditures related to active capital projects that are underway. The three funds are: General Improvement Projects, Parks Projects and Streets Projects. Funding for the expenditures in these funds occurs via transfers in from other funds. 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 2019-20 was $5.4 million, a decrease of $1.8 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 parkland in-lieu fees. Due to variations in project construction and acquisition timelines, expenditure patterns will fluctuate. Expenses (excluding transfers out) in FY 2019-20 totaled $1.4 million. The City expended $1.4 million to reduce outstanding obligations. In addition, approximately $2.3 million was transferred to the General Improvement and Parks Capital Project Funds for parks and facilities improvements. This resulted in a net increase in fund balance of $1.6 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. 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 2019-20 was approximately $70,000, almost half of which was collected in the prior year, due to developers’ application of existing fire impact fee credits. In addition, collections will fluctuate with the normal variations in development activity. 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 (TIF) 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 2019-20 totaled $2.3 million (including interest earned), approximately $1.3 million less than was collected in the prior year. 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. Dublin Crossing Fund: This fund accounts for fees collected to construct major traffic improvements necessary to facilitate development of the Dublin Crossing project. Fees are levied and collected on development in proportion to its impact on the transportation needs. Revenue collected in FY 2019-20 totaled $0.2 million (including interest earned), approximately $6.5 million lower than was collected in the prior year. The decrease was due to no developer fee collected in FY 2019-20 based on the development agreement between developers and the City on fee credits. 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.   15 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 decreased $0.2 million in these funds. Based on the designated use of the funds they can be arranged by function as shown in Table 4 below: 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 Parks, Culture, Arts category shows a decrease in fund balance largely due to lower developer fee contributions earned in the Public Art fund. More information about these aggregated non-major funds can be found in the combining statements following the required supplementary information. June 30, 2020 and 2019 June 30, 2020 June 30, 2019 $ Change % Change Function Public Safety 789,611 738,208 51,404 7.0% Transportation 5,161,935 5,021,614 140,321 2.8% Environmental 1,692,812 1,500,863 191,950 12.8% Parks, Culture, Arts 4,085,126 4,838,128 (753,001) -15.6% Health & Welfare 444,181 434,866 9,315 2.1% Maintenance Districts 3,469,702 2,872,179 597,523 20.8% TOTAL FUND BALANCE 15,643,367 15,405,858 237,510 1.5% TABLE 4: ANALYSIS OF FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS, ARRANGED BY FUNCTION   16 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. 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. TABLE 5: SUMMARY OF GENERAL FUND ORIGINAL AND FINAL BUDGET AND ACTUAL Period Ending June 30, 2020 Actual Variance from Original Final Amount Final Budget REVENUE Taxes 74,901,532 75,561,532 77,399,113 1,837,581 Intergovernmental 234,919 234,919 306,425 71,506 Licenses and Permits 5,045,815 4,545,815 3,904,684 (641,131) Charges for Services 10,069,931 10,069,931 8,692,809 (1,377,122) Use of Money & Property 3,104,127 2,964,127 11,060,098 8,095,971 Fines and Forfeitures 111,432 111,432 85,128 (26,304) Other Revenue 1,014,706 1,687,260 1,424,276 (262,984) Total Revenue 94,482,462 95,175,016 102,872,533 7,697,518 EXPENDITURE General Government 12,962,051 18,697,502 14,447,789 4,249,713 Police 22,880,699 22,999,593 22,058,087 941,506 Fire 14,534,573 14,539,964 14,069,273 470,692 Public Works 13,616,377 14,100,562 11,915,994 2,184,568 Park and Community Services 8,892,352 9,042,858 7,135,822 1,907,036 Community development 6,044,749 6,114,178 4,624,920 1,489,258 Total Expenditure 78,930,801 85,494,657 74,251,885 11,242,773 OTHER FINANCING SOURCES (USES) Transfer In 1,075 76,075 37,098 (11,023) Transfer Out (5,553,000) (20,347,373) (9,234,298) 11,113,075 Total Other Financing Sources (Uses) (5,551,925) (20,271,298) (9,197,200) 11,102,052 NET CHANGE IN FUND BALANCE 9,999,736 (10,590,938) 19,423,448 30,042,343 Budget Amounts   17 In the General Fund total revenues exceeded the final budget by $7.7 million as of June 30, 2020, due mainly to the following factors:  Taxes: $1.8 million higher than budget. Property tax came in $1.5 million higher than budget, as the result of an increase to overall assessed property valuations. Franchise taxes also came in $0.4 million higher consistent with growth in the previous year. • Licenses and Permits: $0.6 million lower than budget. Building Permits came in $0.6 million lower due to the slowdown of development activities prior to the outbreak of COVID-19, which was worsened by the pandemic. • Charges for Services: $1.4 lower than budget. Parks and Community Services came in lower than budget due to a significant decrease in Parks and Recreation programs, as many recreation programs were cancelled due to COVID-19. • Use of Money & Property: $8.1 million higher than budget. Interest revenue came in $1.6 million higher than budget, reflecting the performance of the City’s investments and a healthy balance of the investment types. The City also recognized unrealized gains on current year investments, for a net change of $6.4 million at the end of FY 2019-20. General Fund expenditures came in $11.2 million lower than the final budget, reflecting overall savings across departments. The following is a discussion of the changes. • General Government: $4.2 million lower than budget. A few General Fund Reserve-funded capital projects had remaining budgets at the end of the fiscal year and are carried over to FY 2020- 21. There was also an extra unfunded liability contribution to CalPERS that has not been deposited yet but is set aside in the General Fund designated reserve for pension. Nearly all City contract costs came in lower than the budget due to COVID-19 shutdowns. • Public Works: $2.2 million lower than budget. Some of the budget savings resulted from lower contract services related to the City’s offsite and onsite engineering services, lower salaries expense due to City staff vacancies, and the carry-over of workspace improvement projects to FY 2020-21. • Parks and Community Services: $1.9 million lower than budget. Budget savings resulted from significantly lower seasonal staff expenses than budgeted, lower recreational class instructor costs, and lower operating supplies costs due to the closure of City facilities and activities during the shelter-in-place order. • Community Development: $1.5 million lower than budget. The primary driver of fiscal year 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. During the shelter-in-place order, limited development activities caused building inspector and contract services expenses to be significantly lower than the budget.   18 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City’s investment in capital assets for its governmental activities, as of June 30, 2020 amounts to $539.8 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 2019-20, the City’s investment in capital assets increased by approximately $8.6 million (1.6%), due primarily to additions to Construction in Progress net of the accumulated depreciation. 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 2019-20 is presented in Table 7 below (this includes project costs that may not have any impact on changes to capital assets, such as repairs or planning costs). For more detailed information of capital assets balances, see Note 6 to the financial statements.                       TABLE 6: SUMMARY OF INVESTMENT IN CAPITAL ASSETS June 30, 2020 and 2019 June 30, 2020 June 30, 2019 $ Change % Change Land 182,170,145 182,170,145 - 0.0% Streets Right of Way 35,908,389 35,908,389 - 0.0% Construction in Progress 80,622,398 80,094,568 527,830 0.7% Infrastructure 416,141,645 397,499,192 18,642,453 4.7% Buildings and Improvements 118,015,443 117,343,205 672,238 0.6% Machinery and Equipment 22,102,587 20,295,629 1,806,958 8.9% Subtotal 854,960,607 833,311,128 21,649,479 2.6% Less: Accumulated Depreciation (315,150,644) (302,060,122) (13,090,521) -4.3% Total Net of Depreciation 539,809,963 531,251,006 8,558,958 1.6% Governmental Activities   19         TABLE 7: SUMMARY OF CAPITAL IMPROVEMENT PROJECT ACTIVITY As of June 30, 2020 ACTUAL FY 2019/20 GENERAL IMPROVEMENTS 9,828,253 Police Services Building 9,381,799 In Progress Civic Center HVAC and Roof Replacement 104,694 In Progress Cultural Arts Center 248,306 In Progress EV Charging Stations 6,316 In Progress Financial System Replacement 37,604 In Progress IT Infrastructure Improvement 36,131 In Progress Maintenance Yard Facility Improve 13,403 In Progress PARKS 6,180,120 Don Biddle Community Park 147,630 In Progress Emerald Glen Park Recreation & Aquatic Complex 1,460,174 In Progress Fallon Sports Park Phase 2 130,465 Complete Fallon Sports Park Phase 3 314,948 In Progress Imagine Playground at Dublin Sports Grounds 3,219,009 In Progress Mape Memorial Park Playground Replacement 289,184 Complete Public Art-Don Biddle Community Park 200,000 In Progress Public Art - Butterfly Knoll Park 217 In Progress Public Art - Dog Park Art Replacement 20,000 In Progress Public Art - Clover Park & Sunrise Park 22,675 In Progress Public Art - Jordan Ranch Neighborhood Park 26,195 In Progress Dublin Heritage Park Cemetery Phase 43,973 In Progress Public Art - Public Safety Complex - Police Services Building 173,101 Complete Public Art - Sean Diamond Park 5,049 In Progress Public Art - Imagine Playground at DSG 127,500 In Progress STREETS 5,488,030 Alamo Creek Trail Repair 382,924 Complete AVB - Wildwood Rd Intersection Imprvmnts 691,502 In Progress Annual Street Resurfacing 1,653,881 In Progress Citywide Bicycle and Pedestrian Improvements 555,292 In Progress Citywide Signal Communications Upgrade 255,663 In Progress Dougherty Road Improvements - Sierra Lane to North City Limit 92,090 In Progress Dublin Boulevard Extension - Fallon Road to North Canyon Parkway 150,099 In Progress Dublin Boulevard Improvements - Sierra Court to Dublin Court 1,093,535 In Progress Dublin Ranch Street Light Improvements 2,126 In Progress San Ramon Road Trail Improvements 2,075 In Progress Intelligent Trans Sys Upgrade 23,365 In Progress Iron Horse Trail Bridge at Dublin Blvd 448,757 In Progress San Ramon Road Arterial Management 368 In Progress Tassajara Rd Impro - N Dublin to Quarry 42,167 In Progress Tassajara Road Realignment and Design 94,186 In Progress TOTAL 21,496,402 STATUSPROJECT NAME   20 DEBT In FY 2013-14, the City entered into a development agreement with Dublin Crossing Venture, LLC 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 COVID-19 pandemic and related shutdowns have had a significant impact on the national and local economies. The City of Dublin faced operational impacts beginning in FY 2019-20, due to the shelter-in- place order issued by Alameda County and the closing of City facilities and suspension of certain programs. In the short term, Staff is planning for the potential of property tax growth to slow, however the most significant impact of the COVID shutdowns is a steep decrease in sales tax and other revenues, such as hotel tax, development revenue, and recreation revenue. Even with these impacts, the City’s fiscal position remains relatively strong. While FY 2019-20 finished with a General Fund surplus, it is long-term fiscal sustainability that remains at the forefront of budget discussions. If the pandemic grows more severe, further adjustments may be needed to the City’s rolling 10-Year Forecast. It is projected that the General Fund surplus will diminish in future years, finishing just balanced by FY 2025-26. 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 also on consideration of long-term budget balancing solutions and 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. BASIC FINANCIAL STATEMENTS 21 This page intentionally left blank 22 GOVERNMENT-WIDE FINANCIAL STATEMENTS 23 City of Dublin Statement of Net Position Primary Government Governmental Activities ASSETS Current assets: Cash and investments (Note 3)307,056,634$ Accounts receivable 12,027,372 Accrued interest receivable 1,198,623 Prepaids 469,528 Total current assets 320,752,157 Noncurrent assets: Notes receivable (Note 5)15,919,535 Net OPEB asset - City of Dublin (Note 11) 4,191,028 Capital assets (non-depreciable) (Note 6): Land 182,170,145 Streets right of way 35,908,389 Construction in progress 80,622,398 Capital assets (depreciable): Infrastructures 416,141,645 Building and improvements 118,015,443 Vehicles and equipment 22,102,587 less accumulated depreciation (315,150,644) Total capital assets 539,809,963 Total noncurrent assets 559,920,526 Total assets 880,672,683 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pension (Note 10) 3,848,592 Deferred outflows of resources related to OPEB - City of Dublin (Note 11) 1,116,396 Total deferred outflows of resources 4,964,988 June 30, 2020 See accompanying Notes to Basic Financial Statements 24 Primary Government Governmental Activities LIABILITIES Current liabilities: Accounts payable 14,157,734 Accrued wages and other payroll liabilities 339,331 Deposits payable 4,019,284 Contract retention payable 481,120 Other payables 137,500 Unearned revenue 1,201,599 Compensated absences - due within one year 731,311 Long-term debt - due within one year (Note 7) 1,368,186 Total current liabilities 22,436,065 Noncurrent liabilities: Claims payable 42,372 Compensated absences - due in more than one year 313,419 Net pension liability (Note 10)15,505,908 Total noncurrent liabilities 15,861,699 Total liabilities 38,297,764 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pension (Note 10) 1,920,015 Deferred inflows of resources related to OPEB - City of Dublin (Note 11) 2,280,073 Total deferred inflows of resources 4,200,088 NET POSITION Net investment in capital assets 539,809,963 Restricted for: Public safety 789,607 Impact fee projects 64,891,293 Highways and streets 12,470,335 Health and welfare 30,203,975 Culture and leisure 1,591,830 Total restricted 109,947,040 Unrestricted 193,382,816 843,139,819$ Total net position See accompanying Notes to Basic Financial Statements 25 City of Dublin Statement of Activities For the year ended June 30, 2020 Net (Expense) Revenue and Changes in Net Position Operating Capital Charges for Grants and Grants and Governmental Functions/Programs Expenses Services Contributions Contributions Total Activities Governmental activities: General government 24,851,393$ 7,507,286$ 3,111,013$ 9,131,930$ 19,750,229$ (5,101,164)$ Police 22,483,378 244,363 37,966 - 282,329 (22,201,049) Fire 14,122,166 1,603,243 - - 1,603,243 (12,518,923) Public works 21,103,350 2,471,032 1,465,928 60,373 3,997,333 (17,106,017) Park and community services 10,548,537 3,237,611 325,679 - 3,563,290 (6,985,247) Community development 5,406,572 4,402,789 - 388 4,403,177 (1,003,395) Total governmental activities 98,515,396$ 19,466,324$ 4,940,586$ 9,192,691$ 33,599,601$ (64,915,795) General Revenues: Taxes: Property taxes 49,086,335 Special assessment taxes 1,523,257 Sales tax 22,506,975 Other taxes 7,280,323 Total taxes 80,396,890 Intergovernmental, unrestricted 306,425 Miscellaneous 1,969,966 Unrestricted investment earnings 10,485,543 Total general revenues 93,158,824 Change in net position 28,243,029 Net position - beginning of year, as restated 814,896,790 Net position - end of year 843,139,819$ Program Revenues See accompanying Notes to Basic Financial Statements 26 FUND FINANCIAL STATEMENTS Governmental Fund Financial Statements Proprietary Fund Financial Statements Fiduciary Fund Financial Statements 27 This page intentionally left blank 28 The funds described below were determined to be Major Funds by the City. 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. Measure BB Grants Fund -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. 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 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 fund 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 drain systems. The Public Facilities 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 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 Crossing Project, separate from any developer impact fees generated by the project. GOVERNMENTAL FUND FINANCIAL STATEMENTS 29 City of Dublin Balance Sheet Governmental Funds June 30, 2020 General General Affordable Measure BB Improvement Parks Fund Housing Grants Projects Projects ASSETS Cash and investments 188,551,452$ 13,734,350$ -$ 82,924$ 686,246$ Accounts receivable 6,432,948 - 3,603,413 - - Accrued interest receivable 1,198,623 - - - - Due from other funds 11,887,385 - - - - Notes receivable - 15,400,074 - - - Prepaids 13,061 - - - - Total assets 208,083,469 29,134,424 3,603,413 82,924 686,246 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable 12,193,455 6,328 - 82,924 539,557 Accrued wages and other payroll liabilities 332,385 6,946 - - - Deposits payable 3,611,407 - - - - Contract retention payable - - - - 146,689 Other payables 137,500 - - - - Unearned revenue 1,159,501 - - - - Due to other funds - - 3,570,265 - - Total liabilities 17,434,248 13,274 3,570,265 82,924 686,246 Deferred inflows of resources: Unavailable revenue - accounts receivable - - 3,051,000 - - Total deferred inflows of resources - - 3,051,000 - - Fund Balances: Nonspendable 13,061 - - - - Restricted 1,938,000 29,121,150 - - - Committed 57,828,475 - - - - Assigned 64,004,658 - - - - Unassigned 66,865,027 - (3,017,852) - - Total fund balances 190,649,221 29,121,150 (3,017,852) - - Total liabilities, deferred inflows of resources, and fund balances 208,083,469$ 29,134,424$ 3,603,413$ 82,924$ 686,246$ Special Revenue Funds See accompanying Notes to Basic Financial Statements 30 Public Dublin Other Total Streets Facilities Fire Impact Traffic Impact Crossing Governmental Governmental Projects Impact Fees Fees Fees Contribution Funds Funds 538,011$ 31,786,814$ 149,733$ 27,687,169$ 7,276,734$ 15,497,620$ 285,991,053$ 19,126 - - 181,110 - 1,929,811 12,166,408 - - - - - - 1,198,623 - - - - - - 11,887,385 - - - - - 519,461 15,919,535 - - - - - 25,000 38,061 557,137 31,786,814 149,733 27,868,279 7,276,734 17,971,892 327,201,065 204,401 - - 761,774 - 285,656 14,074,095 - - - - - - 339,331 - - - - 6,427 401,450 4,019,284 333,610 - - - - 821 481,120 - - - - - - 137,500 19,126 - - - - 22,972 1,201,599 - 6,615,060 - 70,135 - 1,617,626 11,873,086 557,137 6,615,060 - 831,909 6,427 2,328,525 32,126,015 - - - - - - 3,051,000 - - - - - - 3,051,000 - - - - - 25,000 38,061 - 25,171,754 149,733 27,036,370 7,270,307 16,123,221 106,810,535 - - - - - - 57,828,475 - - - - - - 64,004,658 - - - - - (504,854) 63,342,321 - 25,171,754 149,733 27,036,370 7,270,307 15,643,367 292,024,050 557,137$ 31,786,814$ 149,733$ 27,868,279$ 7,276,734$ 17,971,892$ 327,201,065$ Capital Projects Funds See accompanying Notes to Basic Financial Statements 31 This page intentionally left blank 32 Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances - Total Governmental Funds 292,024,050$ Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows: Government- Wide Statement of Net Position Internal Service Funds Total Non-depreciable 298,700,932$ (14,877,039)$ 283,823,893 Depreciable, net 241,109,031 (26,399,251) 214,709,780 Total capital assets 539,809,963$ (41,276,290)$ 498,533,673 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government- Wide Statement of Net Position.62,536,364 Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements.3,051,000 In the Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year. Deferred outflows of resources related to pension 3,848,592 Deferred outflows of resources related to OPEB - City of Dublin 1,116,396 Deferred inflows of resources related to pension (1,920,015) Deferred inflows of resources related to OPEB - City of Dublin (2,280,073) Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. Government- Wide Statement of Net Position Internal Service Funds Total Compensated absences - due within one year (731,311) - (731,311) Long term debt - due within one year (1,368,186) - (1,368,186) Claims payable (42,372) - (42,372) Compensated absences - due in more than one year (313,419) - (313,419) Net OPEB asset - City of Dublin 4,191,028 - 4,191,028 Net pension liability (15,505,908) - (15,505,908) Total long-term liabilities (13,770,168)$ -$ (13,770,168) Net Position of Governmental Activities 843,139,819$ Amounts reported for governmental activities in the Statement of Net Position were different from those reported in the Governmental Funds above because of the following: City of Dublin to the Government-Wide Statement of Net Position June 30, 2020 See accompanying Notes to Basic Financial Statements 33 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2020 General General Affordable Measure BB Improvement Parks Fund Housing Grants Projects Projects REVENUES: Property taxes 49,086,335$ -$ -$ -$ -$ Sales tax 21,032,455 - - - - Other taxes 7,280,323 - - - - Intergovernmental 306,425 - 1,089,411 - - Licenses and permits 3,904,684 - - - - Charges for service 8,692,809 88,758 - - - Interest 10,085,706 276,226 - - - Use of property 974,392 407,337 - - - Fines and forfeitures 85,128 - - - - Developer fees 36,428 - - - - Other revenue 1,387,848 11,808 - - - Special assessments - - - - - Total revenues 102,872,533 784,129 1,089,411 - - EXPENDITURES: Current: General Government 14,447,789 17,994 - - - Police 22,058,087 - - - - Fire 14,069,273 - - - - Public works 11,915,994 - - - - Park and community services 7,135,822 - - - - Community development 4,624,920 364,728 - - - Capital outlay: General improvements - - - 9,828,253 - Parks - - - - 6,180,120 Streets - - - - - Debt service: Principal - - - - - Total expenditures 74,251,885 382,722 - 9,828,253 6,180,120 REVENUES OVER (UNDER) EXPENDITURES 28,620,648 401,407 1,089,411 (9,828,253) (6,180,120) OTHER FINANCING SOURCES (USES): Transfers in 37,098 - - 9,828,253 6,180,120 Transfers (out) (9,234,298) (11,808) (487,683) - - Total other financing sources (uses)(9,197,200) (11,808) (487,683) 9,828,253 6,180,120 Net change in fund balances 19,423,448 389,599 601,728 - - FUND BALANCES (DEFICITS): Beginning of year 171,225,773 28,731,551 (3,619,580) - - End of year 190,649,221$ 29,121,150$ (3,017,852)$ -$ -$ Special Revenue Funds See accompanying Notes to Basic Financial Statements 34 Public Dublin Other Total Streets Facilities Fire Impact Traffic Impact Crossing Governmental Governmental Projects Impact Fees Fees Fees Contribution Funds Funds -$ -$ -$ -$ -$ -$ 49,086,335$ - - - - - - 21,032,455 - - - - - - 7,280,323 - - - - - 6,015,567 7,411,403 - - - - - - 3,904,684 - - - - - 5,652,413 14,433,980 - 623,344 3,090 526,154 172,432 319,879 12,006,831 - - - - - - 1,381,729 - - - - - 111,712 196,840 - 4,730,443 66,606 1,754,821 - 10,939 6,599,237 - - - - - 187,428 1,587,084 - - - - - 1,523,256 1,523,256 - 5,353,787 69,696 2,280,975 172,432 13,821,194 126,444,157 - - 100,000 2,846,599 - 5,739,490 23,151,872 - - - - - 119,087 22,177,174 - - - - - 175,640 14,244,913 - - - 26,083 - 1,879,056 13,821,133 - 48,141 - - - 44,312 7,228,275 - - - - - - 4,989,648 - - - - - - 9,828,253 - - - - - - 6,180,120 5,488,030 - - - - - 5,488,030 - 1,368,186 - - - - 1,368,186 5,488,030 1,416,327 100,000 2,872,682 - 7,957,585 108,477,604 (5,488,030) 3,937,460 (30,304) (591,707) 172,432 5,863,609 17,966,553 5,606,039 - - - - - 21,651,510 - (2,301,523) - (1,010,824) (3,500,724) (5,626,100) (22,172,960) 5,606,039 (2,301,523) - (1,010,824) (3,500,724) (5,626,100) (521,450) 118,009 1,635,937 (30,304) (1,602,531) (3,328,292) 237,509 17,445,103 (118,009) 23,535,817 180,037 28,638,901 10,598,599 15,405,858 274,578,947 -$ 25,171,754$ 149,733$ 27,036,370$ 7,270,307$ 15,643,367$ 292,024,050$ Capital Projects Funds See accompanying Notes to Basic Financial Statements 35 This page intentionally left blank 36 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes Net Change in Fund Balances - Total Governmental Funds 17,445,103$ Governmental funds reported capital outlay as expenditures. However, in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of Internal Service Funds.20,148,909 Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of internal service funds of $2,599,243.(10,751,888) Accrued compensated leave payments were reported as expenditures in the governmental funds, however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals.(42,985) Debt proceeds provide current financial resources to governmental funds, but issuing debt increased long- term liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position. Long-term debt repayments 1,368,186 Claim payments are recorded as expenditures in the governmental funds, however claim expense is recognized as claims are incurred on the Government-Wide Statement of Activities (4,255) Current year employer pension and OPEB contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position.2,638,726 Pension expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds.(2,949,603) OPEB expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds.(235,816) Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements.(85,505) Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities.712,157 Change in Net Position of Governmental Activities 28,243,029$ Amounts reported for governmental activities in the Statement of Activities were different because: City of Dublin in Fund Balances to the Government-Wide Statement of Activities For the year ended June 30, 2020 See accompanying Notes to Basic Financial Statements 37 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Property taxes 46,874,754$ 47,534,754$ 49,086,335$ 1,551,581$ Sales tax 21,227,378 21,227,378 21,032,455 (194,923) Other taxes 6,799,400 6,799,400 7,280,323 480,923 Intergovernmental 234,919 234,919 306,425 71,506 Licenses and permits 5,045,815 4,545,815 3,904,684 (641,131) Charges for services 10,069,931 10,069,931 8,692,809 (1,377,122) Interest 2,000,000 2,000,000 10,085,706 8,085,706 Use of property 1,104,127 964,127 974,392 10,265 Fines and forfeitures 111,432 111,432 85,128 (26,304) Developer fees - - 36,428 36,428 Other revenues 1,014,706 1,687,260 1,387,848 (299,412) Total revenues 94,482,462 95,175,016 102,872,533 7,697,517 EXPENDITURES: Current: General government 12,962,051 18,697,502 14,447,789 4,249,713 Police 22,880,699 22,999,593 22,058,087 941,506 Fire 14,534,573 14,539,964 14,069,273 470,691 Public works 13,616,377 14,100,562 11,915,994 2,184,568 Parks and community services 8,892,352 9,042,858 7,135,822 1,907,036 Community development 6,044,749 6,114,178 4,624,920 1,489,258 Total expenditures 78,930,801 85,494,657 74,251,885 11,242,772 REVENUES OVER (UNDER) EXPENDITURES 15,551,661 9,680,359 28,620,648 18,940,289 OTHER FINANCING SOURCES (USES): Transfers in 1,075 76,075 37,098 (38,977) Transfers (out) (5,553,000) (20,347,373) (9,234,298) 11,113,075 Total other financing sources (uses)(5,551,925) (20,271,298) (9,197,200) 11,074,098 Net change in fund balance 9,999,736$ (10,590,939)$ 19,423,448 30,014,387$ FUND BALANCE: Beginning of year 171,225,773 End of year 190,649,221$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts See accompanying Notes to Basic Financial Statements 38 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Affordable Housing Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Charges for services 40,620$ 40,620$ 88,758$ 48,138$ Interest 143,950 143,950 276,226 132,276 Use of property - - 407,337 407,337 Other revenues - - 11,808 11,808 Total revenues 184,570 184,570 784,129 599,559 EXPENDITURES: Current: General government 68,000 68,000 17,994 50,006 Community development 533,819 612,525 364,728 247,797 Total expenditures 601,819 680,525 382,722 297,803 REVENUES OVER (UNDER) EXPENDITURES (417,249) (495,955) 401,407 897,362 OTHER FINANCING SOURCES (USES): Transfers (out) - - (11,808) (11,808) Total other financing sources (uses)- - (11,808) (11,808) Net change in fund balance (417,249)$ (495,955)$ 389,599 885,554$ FUND BALANCE: Beginning of year 28,731,551 End of year 29,121,150$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts See accompanying Notes to Basic Financial Statements 39 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB Grants Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 200,000$ 200,000$ 1,089,411$ 889,411$ Total revenues 200,000 200,000 1,089,411 889,411 OTHER FINANCING SOURCES (USES): Transfers (out) - (1,397,540) (487,683) 909,857 Total other financing sources (uses)- (1,397,540) (487,683) 909,857 Net change in fund balance 200,000$ (1,197,540)$ 601,728 1,799,268$ FUND BALANCE: Beginning of year (3,619,580) End of year (3,017,852)$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts See accompanying Notes to Basic Financial Statements 40 Proprietary fund account for City operation financed and operated in a manner similar to a private business enterprise, The intent of the City is that the cost of providing good and services be financed primarily through user charges. PROPRIETARY FUND FINANCIAL STATEMENTS 41 City of Dublin Statement of Net Position Proprietary Funds June 30, 2020 Governmental Activities- Internal Service Funds ASSETS Current assets: Cash and investments 21,065,581$ Prepaids 431,467 Total current assets 21,358,012 Capital Assets: Land 10,774,792 Construction in progress 4,102,247 Infrastructure 745,014 Building and improvements 63,219,783 Vehicles and equipment 7,566,354 Less accumulated depreciation (45,131,900) Net capital assets 41,276,290 Total assets 62,634,302 LIABILITIES Current liabilities: Accounts payable and accruals 83,639 Due to other funds 14,299 Total current liabilities 97,938 Total liabilities 97,938 NET POSITION Net investment in capital assets 41,276,290 Unrestricted 21,260,074 Total net position 62,536,364$ See accompanying Notes to Basic Financial Statements 42 City of Dublin Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the year ended June 30, 2020 Governmental Activities- Internal Service Funds OPERATING REVENUES: Charges for services 4,097,561$ Other revenue 797,980 Total operating revenues 4,895,541 OPERATING EXPENSES: Supplies and services 779,235 Retiree health premiums 1,726,129 Depreciation 2,599,243 Total operating expenses 5,104,607 OPERATING INCOME (LOSS)(209,066) NONOPERATING REVENUES (EXPENSES): Interest income 399,773 Total nonoperating revenues (expenses)399,773 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS:190,707 Transfers in 1,229,066 Transfers (out)(707,616) Total transfers 521,450 Change in net position 712,157 NET POSITION: Beginning of year 61,824,207 End of year 62,536,364$ See accompanying Notes to Basic Financial Statements 43 City of Dublin Statement of Cash Flows Proprietary Funds For the year ended June 30, 2020 Governmental Activities- Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from other funds 4,236,597$ Payments to suppliers and service providers (2,942,654) Other revenues 797,980 Net cash provided by (used in) operating activities 2,091,923 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash receipts from other funds 1,229,066 Cash disbursements to other funds (693,317) Cash provided by (used in) noncapital financing activities 535,749 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of capital assets (1,761,179) Cash used in capital and related financing activities (1,761,179) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 399,773 Cash flows investing activities 399,773 Net Cash Flows 1,266,266 CASH AND CASH EQUIVALENTS - Beginning of year 19,799,315 CASH AND CASH EQUIVALENTS - End of year 21,065,581$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss)(209,066)$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 2,599,243 Change in assets and liabilities Accounts receivable 139,036 Prepaids (224,882) Accounts payable and accruals (212,408) Net cash provided by (used in) operating activities 2,091,923$ See accompanying Notes to Basic Financial Statements 44 FIDUCIARY FUND FINANCIAL STATEMENTS Agency funds are used to account for assets held by the City as an agent for individuals, private organization, 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. 45 This page intentionally left blank 46 City of Dublin Statement of Fiduciary Net Position Fiduciary Fund June 30, 2020 Agency Funds ASSETS Cash and investments 42,010,805$ Accounts receivable 29,713 Total assets 42,040,518$ LIABILITIES Accrued payable 65,494$ Due to trustee 41,965,840 Due to bondholders 9,184 Total liabilities 42,040,518$ See accompanying Notes to Basic Financial Statements 47 This page intentionally left blank 48 49 NOTES TO BASIC FINANCIAL STATEMENTS 50 This page intentionally left blank City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below: A. Reporting Entity The City is a residential community with a significant regional commercial base, located in the TriValley area of Alameda County, California at the crossroads of Interstate Freeways 580 and 680. The City was incorporated as a municipal corporation on February 1, 1982. The total population estimate published by the California Department of Finance for January 1, 2019 was 65,716. This figure includes prisoners housed at the Alameda County Sheriff’s Department Santa Rita Jail and at the Federal Correctional Institute. The City of Dublin was ranked based on total population at #136 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, 2020, the City's staff comprised 88 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 147.96 contract employees provide a variety of municipal services from City facilities. As of June 30, 2020, the City had approximately 25 temporary and seasonal personnel that were on active payroll status. B. Basis of Presentation The City's Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A. These Standards require that the financial statements described below be presented. Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City). These statements include the financial activities of the overall City government, except for fiduciary activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Presentation, Continued Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds. Separate statements for each fund category - governmental, proprietary, and fiduciary - are presented. The emphasis of fund financial statements is on major individual governmental funds, each of which is displayed in a separate column. All remaining governmental 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 government’s 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 Measure BB Grants Special Revenue Fund – 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. 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 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. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Major Funds, Continued 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. The City also reports the following fund types: Internal Service Funds - Account for replacement of assets and internal charges collected for the purpose of funding retirement plan side-fund obligations, post-retirement healthcare activities, and the financing and funding for the replacements of vehicle, building and equipment, various information technology projects, and the energy efficiency capital lease project. These activities are provided to City departments on a cost reimbursement basis. Fiduciary Funds - The City maintains one type of Fiduciary Funds - Agency Funds. The financial activities of these funds are excluded from the Government-wide financial statement, but are presented in separate Fiduciary Fund financial statements. Agency Funds are used to account for assets held by the City as an agent for the following purposes: The Dublin Boulevard Extension Assessment District is an Agency Fund, which is used to account for amounts held for debt service on the Dublin Boulevard Extension Project. The Agency Fund is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of operations. The City is not responsible for payment of the bonds and acts only as an agent to collect assessments, pay bondholders, and initiate foreclosure proceedings. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Major Funds, Continued The Associated Community Action Program (ACAP) is an Agency Fund. The City acts as the fiscal agent to collect and account for the contributions received and to coordinate administrative services leading to the agency ceasing its operation. ACAP is a Joint Powers Authority (JPA), whose members include the Alameda County and eleven of the thirteen incorporated cities in the County. (The cities of Berkeley and Oakland are not members). The JPA was formed to provide and administer social service related programs. The Agency fund is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of operations. The Fallon Village, Schaefer Ranch, Fallon Village Annex/Jordan Ranch, and Fallon Crossing Geological Hazard Abatement Districts (GHAD) are Agency Funds. Each fiscal year, the District Engineer prepares an Engineer's Report which includes the budget for the GHADs for that year. The annual budget consists of regular site monitoring, annual inspections, contract services for annual mitigation and repairs, and administrative costs. The funds collected through special assessment are placed into a dedicated reserve fund. The reserve fund is set aside to be used to mitigate and repair large, geologic hazards, such as landsides in the respective Subdivisions. The Dublin Crossing Community Facilities District (CFD) No. 2015-1 (Dublin Crossing) Fund, which is used to account for bond issuances to finance capital facilities and infrastructure within the CFD secured by the collection of Special Taxes on real property within the CFD. The Agency Fund is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of operations. CFD bonds are not debt obligations of the City. 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. 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. 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. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Basis of Accounting, Continued 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. Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Certain indirect costs are included in program expenses reported for individual functions and activities. 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. Cash, Cash Equivalents, and Investments The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms. In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas: • Interest Rate Risk • Credit Risk o Overall o Custodial Credit Risk o Concentrations of Credit Risk City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 56 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Cash, Cash Equivalents, and Investments, Continued In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City does not have any investments that are measured using Level 3 inputs. The City participates in an investment pool managed by the State of California entitled Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and Asset- Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to the change in interest rates. Cash equivalents are considered amounts in demand deposits and short-term investments with a maturity date within three months of the date acquired by the City and are presented as “Cash and Investments” in the accompanying Basic Financial Statements. For the purpose of the statement of cash flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above. F. Property Tax Revenues Alameda County assesses properties and bills, collects, and distributes property taxes to the City. The County remits the entire amount paid and handles the collection of all delinquencies. The City receives proportionate shares of prior year collections including interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. The property tax assessments are formally due on November 1 and February I, and become delinquent after December 10 and April 10, respectively. Taxes become a lien on the property effective January 1 of the preceding year. G. 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. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 57 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. I. Compensated Absences The City records a long-term compensated absences liability to recognize the financial effect of unused general leave and other accrued compensated leave. The liability will be paid from future resources primarily from the general fund. Compensated absences activities were as follows for the year ended June 30, 2020: J. Capital Assets Capital assets, which include buildings, machinery and equipment, and infrastructure assets (roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and park improvements), are reported in the Governmental Activities columns of the Government-Wide Financial Statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 for general capital assets and $100,000 for infrastructure capital assets. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. Capital assets are depreciated over their estimated useful lives using the straight-line method. This means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets over the useful life of these assets. The amount charged to depreciation expense each year represents that year's pro rata share of the cost of capital assets. General Leave Compensated Leave Total Beginning Balance 985,076$ 16,669$ 1,001,745$ Additions 979,513 16,395 995,908 Payments (935,667) (17,255) (952,923) Ending Balance 1,028,922 15,809 1,044,730 Current Portion 720,245$ 11,066$ 731,311$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 58 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued J. Capital Assets, Continued 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 Position 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 15-75 Years Buildings and Improvements 20-38 Years Vehicles and Equipment 4-20 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. 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. K. 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. L. Pension For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ 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. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 59 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Other Postemployment Benefits (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date June 30, 2019 Measurement Date June 30, 2019 Measurement Period July 1, 2018 to June 30, 2019 N. 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. O. Deferred Outflows / lnflows 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. P. Net Position and Fund Balance 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 Position are divided into three captions. These captions apply only to Net Position, 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, and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 60 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. Net Position and Fund Balance, Continued Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects and debt service requirements. Unrestricted describes the portion of Net Position which is not restricted to use. When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first. Fund Balances Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund's cash and receivables, less its liabilities. The City's fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint: Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and long-term interfund loans are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category. Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources. Committed fund balances have constraints imposed by resolution of the City Council which may be altered only by formal action (resolution) of the City Council to establish, modify, or rescind a fund balance commitment. The City Council commits fund balance through the adoption of a resolution prior to the end of the fiscal year. Once adopted, the limitation imposed by the resolution remains in place until similar action is taken to remove or revise the limitation. Only the highest level action (a resolution) can be considered a commitment for fund balance classification purposes. Assigned fund balances are amounts constrained by the City's intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. This category includes nonspendable when it is the City's intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed. Through a council resolution, the City Council has designated the City Manager to determine the amount of assigned Fund balance. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 61 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. Net Position and Fund Balance, Continued 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. Hierarchy of Expenditures to Classify Fund Balance Amounts To determine the composition of ending fund balances, the City considers for expenditures made in any governmental fund, the restricted amounts will be reduced first, followed by committed amounts, assigned amounts, and then unassigned amounts. 2. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the basic financial statements:  Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.  The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution.  During the fiscal year, 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 includes 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.  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 the carry-over unexpended capital project appropriations, for those projects where work and expenditures will continue in the subsequent year.  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. No major capital projects funds incurred expenditures in excess of their budgets for the year ended June 30, 2020. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 62 3. CASH AND INVESTMENTS The City's dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash as described under the policy section below. A. Policies California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City's cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California law, this collateral is held in a separate investment pool by another institution in the City's name and places the City ahead of general creditors of the institution. The City pools cash from all sources and all funds, except certain specific investments within funds and cash with fiscal agents, so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time. The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called security instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Individual investments are generally made by the City's fiscal agents as required under its debt issues. In order to maximize security, the City employs the Trust Department of a bank as the custodian of all City managed investments, regardless of their form. The City's investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year. B. Classification Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City agreements. Primary Government: Cash and investments 307,056,634$ Fiduciary Funds: Cash and investments 42,010,805 Total cash and investments 349,067,439$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 63 3. CASH AND INVESTMENTS, Continued B. Classification, Continued C. Investments Authorized by the California Government Code and the City’s Investment Policy The City's Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City's Investment Policy where the City's Investment Policy is more restrictive. Cash on hand 7,757$ Deposits with financial institutions 1,781,615 Investments 317,855,050 Cash and investments with fiscal agent 29,423,017 Total cash and investments 349,067,439$ Authorized Investment Type Maximum Maturity Minimum Credit Quality Maximum Percentage of Portfolio Maximum Investment In One Issuer Negotiable Certificates of Deposit 5 years A-1 30% 20% Bankers' Acceptance 180 days A-1 40% 20% of Portfolio U.S. Treasury Bills and Notes 5 years N/A No Limit No Limit U.S. Government Agency Securities 5 years N/A 25% for callable 35% California Asset Management Program N/A N/A No Limit No Limit Commercial Paper 270 days A-1 25% 20% of Portfolio Time Certificates of Deposit 1 year N/A 10% No Limit State Local Agency Investment Fund N/A N/A No Limit No Limit Asset-Backed Securities N/A AA 20% 5% Medium-Term Notes 5 years A 30% 5% Money Market Funds N/A AAA 20% No Limit Municipal Securities 5 years A No Limit 5% Supranationals 5 years AA 30% 10% City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 64 3. CASH AND INVESTMENTS, Continued D. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity or earliest call date: The City is a voluntary 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’s investments with LAIF as of June 30, 2020, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following: Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options. Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2020, the City had $50,146,126 invested in LAIF, which had invested 3.37% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 1.77% in the previous year. The LAIF fair value factor of 1.004912795 was used to calculate the fair value of the investments in LAIF. Investment Type 12 Months or less 13 to 24 Months 25 to 60 Months Total Asset-Backed Securities -$ 4,001,585$ 6,751,090$ 10,752,675$ U.S. Treasury Notes 7,231,677 16,165,438 41,891,825 65,288,940 Supranationals - 2,054,056 4,859,264 6,913,320 Medium-Term Notes 9,585,153 5,471,196 36,501,026 51,557,374 U.S. Government Agency Securities 14,090,808 15,566,801 48,964,160 78,621,769 Local Agency Investment Fund 50,146,126 - - 50,146,126 California Asset Management Program 52,556,760 - - 52,556,760 Money Market Funds 2,018,086 - - 2,018,086 Total Investments 135,628,610$ 43,259,075$ 138,967,366$ 317,855,050$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 65 3. CASH AND INVESTMENTS, Continued D. Interest Rate Risk, Continued 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. The fair value approximated is the City's cost. As of June 30, 2020, these investments have an average maturity of 49 days. The City's investments include Asset-Backed Securities in the amount of $10,752,675 that are highly sensitive to interest rate fluctuations to a greater degree than already indicated above E. Fair Value Hierarchy The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2020: Level 2 Total Investments By Fair Value Level: Asset-Backed Securities 10,752,675$ 10,752,675$ U.S. Treasury Notes 65,288,940 65,288,940 Supranationals 6,913,320 6,913,320 Medium-Term Notes 51,557,374 51,557,374 U.S. Government Agency Securities 78,621,769 78,621,769 Total 213,134,078$ 213,134,078 Investments Exempt From Disclosure: Local Agency Investment Fund 50,146,126 California Asset Management Program 52,556,760 Money Market Funds 2,018,086 Total 317,855,050$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 66 3. CASH AND INVESTMENTS, Continued E. Fair Value Hierarchy, Continued 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. 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. F. Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The actual ratings as of June 30, 2020 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, 2020. G. 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. Investment Type AAA AA+ AA AA- A+ A A- Total Asset-Backed Securities 5,975,279$ -$ 1,111,533$ -$ -$ -$ -$ 7,086,812$ U.S. Treasury Notes - 65,288,940 - - - - - 65,288,940 Supranationals 4,859,264 - - - - - - 4,859,264 Medium Term Notes 1,875,327 3,230,766 7,384,361 3,545,597 1,032,924 24,485,423 10,002,977 51,557,375 U.S. Government Agency Securities - 78,621,769 - - - - - 78,621,769 California Asset Management Program 52,556,760 - - - - - - 52,556,760 Money Market Funds 2,018,086 - - - - - - 2,018,086 Total 67,284,716$ 147,141,475$ 8,495,894$ 3,545,597$ 1,032,924$ 24,485,423$ 10,002,977$ 261,989,006 Not rated: Asset-Backed Securities 3,665,862 State Local Agency Investment Fund 50,146,126 Supranationals 2,054,056 Total Investments 317,855,050$ Reporting Unit Issuer Investment Type Reported Amount Entity-wide Federal Home Loan Bank U.S. Government Agency Securities 30,121,287$ Federal Home Loan Mortgage Corporation U.S. Government Agency Securities 9,574,266 Federal National Mortgage Association U.S. Government Agency Securities 32,100,685 Federal Farm Credit Bank U.S. Government Agency Securities 6,820,320 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 67 4. INTERFUND TRANSACTIONS A. Transfers between Funds Transfers between funds during the year ended June 30, 2020 were as follows: Significant transfers noted above made to major capital project funds were to fund on-going capital projects. B. Current Interfund Balances Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. Significant balances in the capital project funds are a result of initiation of capital projects expected to be funded by future fees. No formal repayment schedules have been adopted for these temporary loans. As of June 30, 2020, the following funds have balances due to the General Fund: Transfers Out General General Improvements Projects Capital Projects Parks Projects Capital Projects Streets Projects Capital Projects Public Facilities Impact Fee Capital Projects Internal Service Funds Total Major Funds General Fund - 5,660,794 1,928,278 416,160 - 1,229,066 9,234,298$ Affordable Housing 11,808 11,808 Measure BB Grants - - - 487,683 - - 487,683 Public Facilities Impact Fees Capital Projects - 248,306 2,053,217 - - 2,301,523 Traffic Impact Fees Capital Projects - - - 1,010,824 - - 1,010,824 Dublin Crossing Contribution Capital Projects - 3,500,724 - - - - 3,500,724 Non-major Governmental Funds 25,290 - 1,909,438 3,691,372 - 5,626,100 Governmental funds subtotal 37,098 9,409,824 5,890,933 5,606,039 - 1,229,066 22,172,960 Internal Service Funds - 418,429 289,187 - - - 707,616 Total 37,098$ 9,828,253$ 6,180,120$ 5,606,039$ -$ 1,229,066$ 22,880,576$ Transfers In Due to General Fund: Measure BB Grants Special Revenue Fund 3,570,265$ Public Facilities Impact Fees Capital Projects Fund 6,615,060 Traffic Impact Fees Capital Projects Fund 70,135 Non-Major Governmental Funds 1,617,626 Internal Service Funds 14,299 Total 11,887,385$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 68 5. NOTES RECEIVABLE The following table summarizes the notes receivable outstanding as of June 30, 2020: Revolving Home Loans - As part of the City of Dublin First Time Homebuyer Loan Program (FTHLP), the City provides financial assistance, in the form of a deferred loan. The program targets first time homebuyers within a certain income range purchasing their first home in Dublin. Monthly payments of principal and interest are generally deferred until the homes are sold, or are in default. In certain situations the loan may also be due when the homeowners refinance their primary mortgage. The total outstanding amount due, including accrued simple interest at 3.5% per annum, as of June 30, 2020 was $1,311,423. As of June 30, 2020, there were no loans in default. First Time Homebuyer Loan Program 1,311,423$ Eden (Wicklow) Square Senior Affordable Housing 2,993,180 SBA Microloan Program Receivables 519,461 Arroyo Vista Predevelopment/Construction Loan - Family Housing 2,559,885 Arroyo Vista Predevelopment/Construction Loan - Senior Housing 1,339,639 Veterans Family Apartment Development Loan 7,195,947 Total 15,919,535$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 69 5. NOTES RECEIVABLE, Continued Details of the Revolving Home Loans as of June 30, 2020 were as follows: REPAYMENT OF LOAN ORIGINAL ACCRUED INTEREST AND LOAN LOAN # DATE LOAN AMOUNT INTEREST PRINCIPAL BALANCE #07-09 9/21/2007 26,036$ 11,703$ -$ 37,739$ #07-11 10/12/2007 38,141 15,728 (53,869) - #07-12 10/8/2007 33,051 15,467 - 48,518 #07-14 10/2/2007 19,610 8,751 - 28,361 #07-04 10/31/2007 50,000 22,171 - 72,171 #07-15 12/4/2007 24,536 10,801 - 35,337 #07-16 12/28/2007 8,000 3,503 - 11,503 #07-18 2/29/2008 24,170 10,435 - 34,605 #08-05 2/3/2009 22,619 9,039 - 31,658 #08-06 2/11/2009 55,404 22,070 - 77,474 #08-07 4/10/2009 27,425 10,776 - 38,201 #08-08 6/30/2009 39,576 15,242 - 54,818 #09-02 9/29/2009 36,595 13,775 - 50,370 #10-02 1/26/2011 40,000 13,204 - 53,204 #10-03 5/6/2011 26,700 8,555 - 35,255 #11-03 11/22/2011 30,839 9,290 - 40,129 #11-01 12/9/2011 26,025 7,812 - 33,837 #11-05 1/13/2012 29,999 8,887 - 38,886 #11-06 11/3/2012 36,415 9,959 (46,374) - #11-08 1/31/2012 35,249 10,381 - 45,630 #11-10 4/3/2012 38,586 11,135 - 49,721 #12-01 10/30/2012 29,999 8,053 - 38,052 #12-02 1/31/2013 40,000 10,380 - 50,380 #12-04 4/12/2013 36,749 9,287 - 46,036 #12-05 4/26/2013 35,249 8,860 - 44,109 #12-07 5/15/2013 35,249 8,796 - 44,045 #12-06 6/12/2013 31,499 7,776 - 39,275 #13-01 7/31/2013 40,000 9,686 - 49,686 #13-03 10/2/2013 40,000 9,445 - 49,445 #13-04 12/9/2013 40,000 9,184 - 49,184 #15-01 7/1/2016 40,000 4,774 (44,774) - #17-01 5/25/2018 40,000 2,942 - 42,942 #19-01 7/17/2019 40,000 528 (40,528) - #19-02 11/22/2019 40,000 852 - 40,852 Totals 1,157,721$ 339,247$ (185,545)$ 1,311,423$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 70 5. NOTES RECEIVABLE, Continued Eden Senior Affordable Housing Loan - (Wicklow Square) - On September 23, 2002, the City selected Eden Housing, Inc. as the developer for the affordable senior housing at the site of the former library located at 7606 Amador Valley Boulevard. This site also houses a senior center that the City constructed during fiscal year 2003-2004. On February 1, 2004, the City entered into an agreement and provided a loan in the amount of $2,248,248 to the Dublin Senior Limited Partnership to support the senior housing project. The interest on the outstanding principal balance of the loan is accrued at the rate of 3% simple interest per annum. The entire outstanding principal balance of the loan, together with the interest accrued, shall be payable in full on February 8, 2059, the 55th anniversary of the Initial Disbursement Date of February 18, 2004. Repayments commenced on June 1, 2006, and on the first day of each June, 60% of the Surplus Cash generated by the project during the previous calendar year are remitted to reduce the outstanding indebtedness. Any payment not paid when due shall bear interest at a rate equal to 10% annum from the due date until it is paid in full. As of June 30, 2020, the outstanding loan amount was $2,993,180. SBA Microloan Program – The City of Dublin’s Small Business Emergency Microloan Program was established by the Dublin City Council with the intention to assist in retaining local small businesses (primarily restaurants and retailers) that are experiencing severe negative impacts due to the COVID-19 pandemic. The Program provides zero-interest, unsecured, short-term loans of up to $10,000 to eligible independently or locally owned businesses with priority for restaurants and retail businesses. Loan funds must be used to cover payroll, rent, operating expenses or working capital. Loan repayment is deferred for 36 months after loan approval. The loan may be up to 100% forgiven based on either longevity of the business operating in Dublin or sales tax generation by the business. Arroyo Vista Predevelopment/Construction Loan - Family and Senior Projects - (Emerald Vista) – On June 1, 2011, the City entered into an agreement to provide a loan to Eden Dougherty, L.P., a California nonprofit public benefit corporation, with a not-to-exceed $7,600,000 principal amount in accordance to the Arroyo Vista Disposition and Development Agreement dated July 25, 2007 concerning the redevelopment of the real property located at 6700 Dougherty Road in the City of Dublin. The City agreed to provide a loan to Eden to assist in financing the development of the Family Project and Senior Project. The City determined that the development of the project is in the interests of health, safety and welfare of the residents of the City, and that the City financing is necessary to make the project affordable to low and very low income households for a term of not less than fifty-five years. The note will not bear interest until the earlier of (i) the date that the project's construction financing is either converted to a permanent loan or repaid in full, or (ii) twelve months following the date of issuance of the final certificate of occupancy or equivalent for the project; thereafter, the outstanding principal balance of the loan shall bear interest at a rate equal to three percent simple annual interest. Annual payments shall be due and payable on a residual receipts basis in accordance with the formula set forth in the note. The entire outstanding principal balance and accrued interest shall be paid in full on the earlier of (i) the fifty fifth anniversary of the date of issuance of the final certificate of occupancy or (ii) the fifty-seventh anniversary of the loan origination date. The City has the right to accelerate maturity date and declare all sums immediately due and payable to the City upon the occurrence of an event of developer default, including developer's failure to commence or complete construction of the project within times period specified in the note. As of June 30, 2020, the outstanding loan amounts for the Family Project and the Senior Project were $2,559,885 and $1,339,639, respectively. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 71 5. NOTES RECEIVABLE, Continued 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 very low and low income veterans and their 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. As of June 30, 2020, the outstanding loan amount was $7,195,947. 6. CAPITAL ASSETS A. Current Year Activities Capital asset activities during the year ended June 30, 2020 were as follows: Balance Balance July 1, 2019 Additions Retirements Transfers June 30, 2020 Non-depreciable assets: Land 182,170,145$ -$ -$ -$ 182,170,145$ Streets right of way 35,908,389 - - 35,908,389 Construction in progress 80,094,568 21,496,402 (1,653,881) (19,314,691) 80,622,398 Total non-depreciable assets 298,173,102 21,496,402 (1,653,881) (19,314,691) 298,700,932 Depreciable assets: Infrastructure 397,499,192 - - 18,642,453 416,141,645 Buildings and improvements 117,343,205 - - 672,238 118,015,443 Vehicles and equipment 20,295,629 2,126,543 (319,585) - 22,102,587 Total depreciable assets 535,138,026 2,126,543 (319,585) 19,314,691 556,259,675 Less accumulated depreciation: Infrastructure (248,070,689) (7,696,252) - - (255,766,941) Buildings and improvements (46,110,929) (3,894,803) - - (50,005,732) Vehicles and equipment (7,878,504) (1,770,973) 271,506 - (9,377,971) Total accumulated depreciation (302,060,122) (13,362,028) 271,506 - (315,150,644) Total depreciable assets, net 233,077,904 (11,235,485) (48,079) 19,314,691 241,109,031 Total capital assets 531,251,006$ 10,260,917$ (1,701,960)$ -$ 539,809,963$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 72 6. CAPITAL ASSETS, Continued B. Project Commitments As of June 30, 2020, the City had outstanding commitments with contractors for the following projects: C. Capital Asset Contributions Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. GASB Statement 34 requires that these contributions be accounted for as revenues at the time the capital assets are contributed. D. Depreciation Allocation Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or programs are as follows: Project Commitment Facility Construction 97,526$ Facility Modification 202,877 Park Construction 1,782,242 Park Improvements 113,643 Street Improvements 3,061,347 Street Repair/Maintenance 167,062 Street Signal Improvements 99,457 Technology Upgrade 36,544 Miscellaneous 847,434 Governmental Activities: General Government 1,435,868$ Police 600,864 Fire 409,950 Public Works 5,905,531 Parks and Community Service 4,612,384 Community Development 397,431 Total depreciation expense 13,362,028$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 73 7. LONG TERM DEBT A. Current Year Transactions and Balances Long-term debt transactions and balances during the year ended June 30, 2020 were as follows: B. Dublin Crossing Loan Payable As discussed in Note 14, 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 of $5,450,042 with the Developer to finance the land acquisition. The repayment of the loan is due in four annual installments. Installment payments commenced in July 2018 shall be fully repaid in July 2021. C. Debt Service Requirements The annual debt service requirement on the loan payable is as follows: Due in Balance Balance Due Within More than July 1, 2019 Additions Deletions June 30, 2020 One Year One Year Governmental Activities: Dublin Crossing Loan Payable 2,736,372 - (1,368,186) 1,368,186 1,368,186 - Total long-term debt 2,736,372$ -$ (1,368,186)$ 1,368,186$ 1,368,186$ -$ Year Ending June 30, Principal 2021 1,368,186$ Total 1,368,186$ , City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 74 8. FUND BALANCES Detailed classifications of the City's Fund Balances, as of June 30, 2020, are stated below: General Public Dublin Other General Affordable Measure BB Improvement Parks Streets Facilities Fire Impact Traffic Impact Crossing Governmental Fund Housing Grants Projects Projects Projects Impact Fees Fees Fees Contribution Funds Total Nonspendable: Prepaids 13,061$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 25,000$ 38,061$ Subtotal Non-Spendable Fund Balance 13,061 - - - - - - - - - 25,000 38,061 Restricted for: Cemetery Endowment 60,000 - - - - - - - - - - 60,000 Public Safety Programs - - - - - - - - - - 789,607 789,607 Street Maintenance and Construction - - - - - - - - - - 9,333,830 9,333,830 Health and Welfare Programs - - - - - - - - - - 1,082,825 1,082,825 Heritage Park Maintenance 750,000 - - - - - - - - - - 750,000 Recycling Programs - - - - - - - - - - 762,830 762,830 Impact Fee Capital Projects - - - - - - 25,171,754 149,733 27,036,370 - - 52,357,857 Capital Improvement Projects - - - - - - - - - 7,270,307 4,154,129 11,424,436 Developer Contribution - Heritage Park 19,000 - - - - - - - - - - 19,000 Developer Contribution - Nature Park 60,000 - - - - - - - - - - 60,000 Downtown Community Benefit Program 1,049,000 - - - - - - - - - - 1,049,000 Housing - 29,121,150 - - - - - - - - - 29,121,150 Subtotal Restricted Fund Balance 1,938,000 29,121,150 - - - - 25,171,754 149,733 27,036,370 7,270,307 16,123,221 106,810,535 Committed to: Economic Stability 8,000,000 - - - - - - - - - - 8,000,000 Downtown Public Improvements 8,454,625 - - - - - - - - - - 8,454,625 Emergency Communications 532,113 - - - - - - - - - - 532,113 Fire Services OPEB 5,324,225 - - - - - - - - - - 5,324,225 Innovations and New Opportunities 1,065,471 - - - - - - - - - - 1,065,471 Maintenance Facility 58,350 - - - - - - - - - - 58,350 Don Biddle Community Park 1,500,000 - - - - - - - - - - 1,500,000 Historic Park Cemetery Expansion 1,447,764 - - - - - - - - - - 1,447,764 One Time Initiatives 5,497,010 - - - - - - - - - - 5,497,010 Contribution to Public Facility Fee 6,000,000 - - - - - - - - - - 6,000,000 Fallon Sports Park 3,110,500 - - - - - - - - - - 3,110,500 Utility Undergrounding 1,170,190 - - - - - - - - - - 1,170,190 Dublin Sports Ground 1,502,671 - - - - - - - - - - 1,502,671 Economic Development 126,359 - - - - - - - - - - 126,359 Public Safety 2,000,000 - - - - - - - - - - 2,000,000 Cultural Arts Center 4,539,197 - - - - - - - - - - 4,539,197 Advance to Public Facility Fee 7,500,000 - - - - - - - - - - 7,500,000 Subtotal Committed Fund Balance 57,828,475 - - - - - - - - - - 57,828,475 Assigned to: Non-street CIP 2,462,100 - - - - - - - - - - 2,462,100 Employees Accrued Leave 1,044,730 - - - - - - - - - - 1,044,730 Operating Carryovers 1,724,011 - - - - - - - - - - 1,724,011 ClP Carryovers 3,502,246 - - - - - - - - - - 3,502,246 Catastrophic Loss and Recovery 17,702,316 - - - - - - - - - - 17,702,316 Service Continuity Obligations 3,150,000 - - - - - - - - - - 3,150,000 Pension and Post Employment Benefits 15,000,000 - - - - - - - - - - 15,000,000 Fiscally Responsible Adjustment 325,000 - - - - - - - - - - 325,000 Internal Service Fund 1,500,000 - - - - - - - - - - 1,500,000 Municipal Regional Permit 2,282,905 - - - - - - - - - - 2,282,905 HVAC Replacement 4,202,041 - - - - - - - - - - 4,202,041 Relocate Parks 250,000 - - - - - - - - - - 250,000 Pension Rate Stabilization 2,000,000 - - - - - - - - - - 2,000,000 Parks and Street Contingency Maintenance 226,227 - - - - - - - - - - 226,227 Commercial Facade Improvement Grant 374,157 - - - - - - - - - - 374,157 Police Service Building 258,925 - - - - - - - - - - 258,925 Village Parkway Pavement 5,000,000 - - - - - - - - - - 5,000,000 Climate Action Plan 3,000,000 - - - - - - - - - - 3,000,000 Subtotal Assigned Fund Balance 64,004,658 - - - - - - - - - - 64,004,658 Unassigned Fund Balance: Fund Balance Deficits - - (3,017,852) - - - - - - - (504,854) (3,522,706) Unrealized Gain on Investments/(Loss) 8,453,240 - - - - - - - - - - 8,453,240 Cash Flow Per City Policy 58,411,787 - - - - - - - - - - 58,411,787 Subtotal Unassigned Fund Balance 66,865,027 - (3,017,852) - - - - - - - (504,854) 63,342,321 Total Fund Balance (Deficit)190,649,221$ 29,121,150$ (3,017,852)$ -$ -$ -$ 25,171,754$ 149,733$ 27,036,370$ 7,270,307$ 15,643,367$ 292,024,050$ Major Funds City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 75 8. FUND BALANCES, Continued A. Minimum Fund Balance Policies The City's Reserve Policy requires the City to maintain an Unrestricted General Funds, for cash flow purposes, of minimum equal to two months of budgeted operating expenditures with a goal to achieve a maximum of four months. As of June 30, 2020 the cash flow reserves, which are part of the Unassigned Fund Balance, were above the minimum at approximately 8 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. B. Fund Balance Deficits The funds listed in the table below had fund balance deficits as of June 30, 2020. These deficits are expected to be eliminated by future revenues. 9. DEFERRED COMPENSATION PLAN 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. 10. PENSION PLAN A. General Information about the CalPERS 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 comprised 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 two rate plans (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. Fund Fund Deficit Measure BB Grants Special Revenue Fund 3,017,852$ TDA Fund 71,773 State Grant Park 354,170 Federal COVID-19 Financial Assistance Fund 53,911 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 76 10. PENSION PLAN, Continued A. General Information about the CalPERS Pension Plan, Continued 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 as of June 30, 2020, are summarized as follows: 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 measurement period ended June 30, 2019, the City's contributions to the Plan were $1.241,065. B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2020, the City reported $15,505,908 in net pension liabilities for its proportionate share of the net pension liability of the Plan. The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2019, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2018 rolled forward to June 30, 2019 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. Miscellaneous Miscellaneous PEPRA Hire Date Prior to January 1, 2013 After January 1, 2013 Benefit formula 2.7% @ 55 2% @ 62 Benefit vesting schedule 5 years service 5 years service Benefit payment Monthly for life Monthly for life Retirement age 55 62 Monthly benefits, as a % of annual salary 2.70% 2.00% Required employee contribution rates 8.000% 6.250% Required employer contribution rates 13.182% 6.999% Required unfunded liability payment 910,035$ 2,686$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 77 10. PENSION PLAN, Continued B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued The City's proportionate share of the net pension liability for the Plan as of the measurement dates June 30, 2017 and 2018 was as follows: For the year ended June 30, 2020, the City recognized net pension expense of $2,949,603 for the Miscellaneous Plan on the Statement of Activities. As of June 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Proportion - June 30, 2018 0.14569% Proportion - June 30, 2019 0.15132% Change - Increase (Decrease) 0.00563% Deferred Outflows of Resources Deferred Inflows of Resources Pension contributions subsequent to measurement date 1,522,330$ -$ Changes of assumptions 739,392 262,109 Differences between expected and actual experience 1,076,950 83,442 Changes in employer's proportion 507,260 198,072 Differences between the employer's contribution and the employer's proportionate share of contributions 2,660 1,105,294 Net differences between projected and actual earnings on plan investments - 271,098 Total 3,848,592$ 1,920,015$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 78 10. PENSION PLAN, Continued B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued The $1,522,330 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2021. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Fiscal Year Ending June 30: 2021 680,676$ 2022 (360,550) 2023 31,350 2024 54,771 Thereafter - 1% Decrease 6.15% Net Pension Liability 24,703,399$ Current Discount Rate 7.15% Net Pension Liability 15,505,908$ 1% Increase 8.15% Net Pension Liability 7,914,029$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 79 10. PENSION PLAN, Continued B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued Actuarial Assumptions - For the measurement period ended June 30, 2019, the total pension liabilities were determined by rolling forward the June 30, 2018 total pension liability. The June 30, 2018 total pension liabilities were based on the following actuarial methods and assumptions: All other actuarial assumptions used in the June 30, 2018 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. Discount Rate - The discount rate used to measure the total pension liability was 7.15% 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 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% 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. 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. Valuation Date June 30, 2018 Measurement Date June 30, 2019 Actuarial Cost Method Entry-Age Normal Cost Method Actuarial Assumptions: Discount Rate 7.15% Inflation 2.50% Projected Salary Increases Varies by entry age and service Investment Rate of Return (1)7.15% Mortality Derived by CalPERS' Membership Data for all Funds (1) Net of pension plan administrative expenses City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 80 10. PENSION PLAN, Continued B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued 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. Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. 11. OTHER POST EMPLOYMENT BENEFITS A. City of Dublin Retiree Health Plan Plan Description - City of Dublin (City) Retiree Health Plan is a single-employer defined benefit healthcare plan administered by the California Public Employees Retirement System (CalPERS). The plan provides medical insurance benefits to eligible retirees and their eligible dependents in accordance with Public Employee Retirement Law (Article 2). The Public Employees Retirement System Board of Administration has the responsibility to approve health benefit plans and may contract with carriers offering health benefit plans. The Board of Administration is responsible for adopting all rules and regulations, including the scope and content of basic health plans. The California Government Code also defines certain rules for contract agencies, such as the City of Dublin, to purchase health insurance benefits. Asset Class (1) Assumed Asset Allocation Real Return Years 1 - 10 (2) Real Return Years 11+ (3) Global Equity 50.00% 4.80% 5.98% Fixed Income 28.00% 1.00% 2.62% Inflation Sensitive 0.00% 0.77% 1.81% Private Equity 8.00% 6.30% 7.23% Real Assets 13.00% 3.75% 4.93% Liquidity 1.00% 0.00% -0.92% Total 100.00% (2) An expected inflation of 2.00% used for this period. (3) An expected inflation of 2.92% used for this period (1) In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 81 11. OTHER POST EMPLOYMENT BENEFITS, Continued A. City of Dublin Retiree Health Plan, Continued Contributions - 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 contribution and cost sharing varies depending on: date of hire; the dependent status; and plan selected. The City contributes PEMHCA to retirees hired after January 1, 2016. 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. For the measurement period 2018-19, the City contributed $1,116,396. Employees Covered Net OPEB Liability The City’s net OPEB liability was measured as of June 30, 2019 and the total OPEB liability used to the calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019, based on the following actuarial methods and assumptions: Inactive employees or beneficiaries currently receiving benefits 67 Inactive employees entitled to but not yet receiving benefits 5 Active employees 92 Total 164 Valuation Date June 30, 2019 Measurement Date June 30, 2019 Actuarial Cost Method Entry-Age Normal Cost Method Actuarial Assumptions: Discount Rate 6.25% Inflation 2.75% Contribution Policy Contributes full ADC Salary Increases Varies by Entry Age and Service Investment Rate of Return 6.25% Mortality CalPERS 1997-2015 Experience Study Post Retirement Benefit Increase Post-retirement mortality pro jected fully generational with Scale MP-2019 Healthcare Trend Non-Medicare - 7.25% for 20211, decreasing to an ultimate rate of 4.0% in 2076 and later years Medicare - 6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and later years City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 82 11. OTHER POST EMPLOYMENT BENEFITS, Continued A. City of Dublin Retiree Health Plan, Continued Net OPEB Liability, Continued The long-term expected rate of return on OPEB plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table on the following page. Discount Rate The discount rate used to measure the total OPEB liability was 6.25 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Target Expected Real Asset Class Allocation* Rate of Return Global Equity 59.00% 4.82% Fixed Income 25.00% 1.47% TIPS 5.00% 1.29% Commodities 3.00% 0.84% REITS 8.00% 3.76% Assumed Long-Term Rate of Inflation 2.75% Assumed Long-Term Investment Expenses n/a Expected Long-Term Net Rate of Return, Rounded 6.25% Discount Rate** 6.25% * P olicy target effective October 1, 2018 **The fiduciary net position is projected to be sufficient to m ake projected benefit payments, and the plan assets are expected to be invested using the strategy to achieve the expected return. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 83 11. OTHER POST EMPLOYMENT BENEFITS, Continued A. City of Dublin Retiree Health Plan, Continued Changes in the Net OPEB Liability The changes in the Net OPEB liability for the OPEB Plan are as follows: Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2019: Total OPEB Plan Fiduciary Net OPEB Liability Net Position Liability/(Asset) Balance at June 30, 2019 $ 18,304,030 $ 20,028,771 $ (1,724,741) Changes in the year: Service cost 843,905 - 843,905 Interest on the total pension liability 1,169,182 - 1,169,182 Differences between actual and expected experience (1,450,926) - (1,450,926) Changes in assumptions (716,501) - (716,501) Changes in benefit terms - - - Contribution - employer - 1,073,623 (1,073,623) Contribution - employee - - - Net investment income - 1,244,479 (1,244,479) Administrative expenses - (6,155) 6,155 Benefit payments , including refunds of employee contributions (882,052) (882,052) - Net changes (1,036,392) 1,429,895 (2,466,287) Balance at June 30, 2020 $ 17,267,638 $ 21,458,666 $ (4,191,028) Increase (Decrease) Current 1% Decrease Discount Rate 1% Increase (5.25%) (6.25%) (7.25%) Net OPEB Liability (Asset) $ (1,967,741) (4,191,028)$ (6,016,634)$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 84 11. OTHER POST EMPLOYMENT BENEFITS, Continued A. City of Dublin Retiree Health Plan, Continued Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2019: Recognition of Deferred Outflow and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss: OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB For the fiscal year ended June 30, 2020, the City recognized OPEB expense of $233,508. For the fiscal year ended June 30, 2020, the City reported deferred outflows of resources related to OPEB from the following sources: Current Healthcare 1% Decrease Trend Rate 1% Increase (6.25% - 3.0%) (7.25% - 4.0%) (8.25% to 5.0%) Net OPEB Liability (Asset) $ (6,040,829) (4,191,028)$ (1,995,876)$ Net difference between projected 5 years and actual earnings on OPEB plan investments All other amounts Expected average remaining service lifetime (EARSL) (6.5 years at June 30, 2018) Deferred Outflows of Resources Deferred Inflows of Resources OPEB contributions subsequent to measurement date $ 1,116,396 $ - Differences between actual and expected experience - 1,227,707 Changes in assumptions - 606,270 Net differences between projected and actual earnings on plan investments - 446,096 Total 1,116,396$ 2,280,073$ City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 85 11. OTHER POST EMPLOYMENT BENEFITS, Continued A. City of Dublin Retiree Health Plan, Continued OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB, Continued The $1,116,396 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2019 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2021. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows: B. Dougherty Regional Fire Authority Health Plan The City provides certain health care benefits for Dougherty Regional Fire Authority retirees as required under contract signed with PERS and the dissolution agreement of the Authority. The cost of retiree health care benefits is recognized as expenditure as premiums are paid. For the year ended June 30, 2020 those cost totaled $39,867. 12. HEALTH, GENERAL LIABILITY, AND WORKERS’ COMPENSATION COVERAGE A. Risk Pool The City participates in the PLAN JPA, 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 PLAN JPA and the purchase of commercial insurance for large losses. PLAN JPA provides the first $5 million of coverage as self-funded general liability and automobile liability coverage per occurrence. PLAN JPA 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. PLAN JPA also provides $2 million of employee bonds (theft coverage) in excess of a $10,000 deductible. Fiscal Year Ending June 30: 2021 (529,592)$ 2022 (527,592) 2023 (391,593) 2024 (331,119) 2025 (333,450) Thereafter (166,727) City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 86 12. HEALTH, GENERAL LIABILITY, AND WORKERS’ COMPENSATION COVERAGE, Continued A. Risk Pool, Continued PLAN JPA also provides property insurance coverage. This coverage also comprises self-insured layer combined with commercial insurance. The first $100,000 of losses are self-funded by PLAN JPA from premiums collected from the participants in the program. PLAN JPA purchases an insurance policy to cover losses above $100,000 per occurrence and the annual aggregate losses of the pool are insured above $225,000. 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 PLAN JPA 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 PLAN JPA can be obtained from Bickmore, 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833. B. Workers’ Compensation Coverage The City participates in The Cities Group, created by a joint powers agreement (JPA) 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, 2020, the City paid The Cities Group $6,833 in premium. 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 PLAN JPA 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, $42,372, is adequate to cover IBNR claims. Therefore no adjustment was made in fiscal year 2019-2020 as the City's exposure is for the $5,000 deductible per general liability claim. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 87 13. JOINT POWERS AGREEMENTS The City participates in joint ventures discussed below through separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each joint venture is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint venture, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of these joint ventures are not the City's responsibility and the City does not have an equity interest in the assets of each joint venture except upon dissolution of the joint venture. A. Animal Control Services The Cities of Dublin, Pleasanton, and Livermore and the County of Alameda have entered a joint powers agreement, dated September 15, 1992, under which Alameda County constructed an animal shelter facility on County's property. The agreement provided that the County would retain ownership of the land and that each participating agencies would receive an equity interest in the facility. Certificates of Participation were issued to construct the facility. Under the agreement the entities will share in the debt service costs of the project based upon their use of the animal shelter. In fiscal year 2019-2020, the City contributed $190,631 or 12.27% toward the annual operating shelter services and $36,490 representing 3.23% of the animal field service expenditures. The City has not recorded an equity interest for the animal shelter agreement. As noted above the ongoing financial interest is limited to the statistics of live animals handled in the appropriate fiscal year. No Joint Powers Authority was established as part of this agreement therefore, separate financial statements are not issued. 14. OTHER COMMITMENTS AND CONTINGENT LIABILITIES The City participates in several Federal and State grant programs. These programs have been audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act and applicable State requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. The City is a defendant in a number of lawsuits that have arisen in the normal course of business, the outcome of which cannot be predicted with certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a material adverse effect on the financial position of the City. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 88 14. OTHER COMMITMENTS AND CONTINGENT LIABILITIES, Continued 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, 2020, was $2,788,913 which is net of the $68,636 in payments made by the City to reduce this contingent liability during the year. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for reimbursement of these improvements. B. 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, 2020 was $109,238,770. The reduction of $2,681,429 to the credit balance was mainly due to credit used for the fiscal years which was $4,036,540. C. Alameda County Fire Department (ACFD) The City of Dublin contracts to have the Alameda County Fire Department to provide fire services. As part of the contract, the City pays for its share of ACFD's retiree health plan and retirement plan. In 2012 ACFD began working with CalPERS to create side funds within its OPEB trust to allow for member agencies to fund their share of the obligation. In preparation for this, in June 2012 the City Council authorized a contribution of $6.487 million towards the liability that was then moved to a General Fund Reserve, which was reclassified as an assigned fund balance upon the City's implementation of GASB Statement No. 54. Since then, the City continued to add funds to that fund balance assignment. After ACFD successfully implemented the OPEB trust side funds, the City was notified that as of June 30, 2020, the City’s Actuarial Accrued Liability (AAL) for benefits was $12,950,000 and the Actuarial Value of Plan Asset was $11,744,000 resulting in an Unfunded Actuarial Accrued Liability (UAAL) of $1,206,000. 15. DEBT WITHOUT GOVERNMENT COMMITMENT On August 31, 2017, the City issued $32,740,000 of City 2017 Improvement Area No. 1 Special Tax Bonds by and through its Community Facilities District No. 2015-1 (Dublin Crossing) Improvement Area No. 1. The Bonds are special tax obligations of the City, authorized pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being California Government Code Section 53311, et seq. The bonds were issued to construction and acquire certain public facilities and/or reimburse the payment of fees for capital improvements. City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2020 89 15. DEBT WITHOUT GOVERNMENT COMMITMENT, Continued On July 18, 2019 the City issued $37,745,000 of City 2019 Improvement Area No. 2 Special Tax Bonds by and through its Community Facilities District No. 2015-1 (Dublin Crossing) Improvement Area No. 2. The Bonds are special tax obligations of the City, authorized pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being California Government Code Section 53311, et seq. The bonds were issued to construction and acquire certain public facilities and/or reimburse the payment of fees for capital improvements. The Bonds are not general obligations of the City nor any political subdivision and the full faith and credit of the City is not pledged for the repayment thereof. Since these debts do not constitute an obligation of the City and the City is not obligated to make payment beyond the available bond reserves, these bonds have not been reflected in the long-term debt in the accompanying financial statements. The outstanding indebtedness on June 30, 2020 was $70,485,000. 16. TAX ABATEMENTS 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, 2020, under these sales-tax reimbursement agreements, the City has abatements totaling $137,500. Pursuant to the Sales and Use Tax law (chapter 8 - Article 1 - section 7056), in order to protect the confidential information of sales taxes collected and abatements provided to each of the specific agencies, the City has presented the aggregate amount abated during the current fiscal year. 17. PRIOR PERIOD ADJUSTMENTS The City recorded a prior period adjustment to remove the net OPEB liability relating to DRFA previously recorded in error. Net Position, as Net OPEB Deferred Outflows Net Position, as Previously Reported Liability of Resources Restated at at June 30, 2019 related to DRFA related to DRFA June 30, 2020 Government-Wide Statements Governmental Activities 814,365,409$ 573,269$ (41,888)$ 814,896,790$ Prior Period Adjustments 90 91 REQUIRED SUPPLEMENTARY INFORMATION 92 This page intentionally left blank City of Dublin Required Supplementary Information For the year ended June 30, 2020 93 1. DEFINED BENEFIT PENSION PLAN A. Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years* B. Schedule of Contributions – Last 10 Years* Fiscal year: 2020 2019 2018 2017 2016 2015 * Measurement date: 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Proportion of the net pension liability 0.15132% 0.14569% 0.14518% 0.15006% 0.14788% 0.12593% Proportionate share of the net pension liability 15,505,908$ 14,038,811$ 14,398,145$ 12,984,969$ 10,150,590$ 7,835,901$ Covered payroll 10,124,753$ 9,753,107$ 10,443,838$ 9,268,029$ 8,463,027$ 8,716,918$ Proportionate Share of the net pension liability as percentage of covered payroll 153.15.% 143.94.% 137.86.% 140.10.% 119.94.% 89.89.% Plan fiduciary net position as a percentage of the total pension liability 75.26.% 75.26.% 73.31.% 74.06.% 78.40.% 79.82.% Notes to Schedule: * Fiscal year 2015 was the 1st year of implementation. Fiscal year 2020 2019 2018 2017 2016 2015 * Contractually required contribution (actuarially determined) 1,522,330$ 1,241,065$ 1,018,096$ 988,634$ 869,497$ 1,411,959$ Contribution in relation to the actuarially determined contributions (1,522,330) (1,241,065) (1,018,096) (1,738,634) (869,497) (1,411,959) Contribution deficiency (excess)-$ -$ -$ (750,000)$ -$ -$ Covered payroll $ 11,248,715 $ 10,124,753 $ 9,753,107 $ 10,443,838 $ 9,268,029 $ 8,463,027 Contributions as a percentage of covered payroll 13.53% 12.26% 10.44% 26.79% 22.41% 18.59% Note to Schedule Valuation date** 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 * Fiscal year 2015 was the 1st year of implementation. ** Date of actuarial valuation used to determine the contractually required contribution. City of Dublin Required Supplementary Information For the year ended June 30, 2020 94 2. OTHER POST EMPLOYMENT BENEFITS (OPEB) A. City Retiree Health Plan - Schedule of Changes in Net OPEB Liability and Related Ratios During the Measurement Period – Last 10 Years (1) (1) Fiscal year 2018 was the 1st year of implementation. Measurement Period 2019 2018 2017 Total OPEB Liability Service Cost 843,905$ 852,382$ 827,000$ Interest on the total OPEB liability 1,169,182 1,099,559 1,032,000 Differences between expected and actual experience (1,450,926) - - Changes of assumptions (716,501) - - Benefit payments, including refunds of employee contributions (882,052) (776,911) (805,000) Net change in total OPEB liability (1,036,392) 1,175,030 1,054,000 Total OPEB liability - beginning 18,304,030 17,129,000 16,075,000 Total OPEB liability - ending (a)17,267,638$ 18,304,030$ 17,129,000$ Plan Fiduciary Net Position Contributions - employer 1,073,623$ 1,588,507$ 1,878,000$ Net investment income 1,244,479 1,431,381 1,665,000 Benefit payments, including refunds of employee contributions (882,052) (776,911) (805,000) Administrative expense (6,155) (33,206) (8,000) Net change in plan fiduciary net position 1,429,895 2,209,771 2,730,000 Plan fiduciary net position - beginning 20,028,771 17,819,000 15,089,000 Plan fiduciary net position - ending (b)21,458,666$ 20,028,771$ 17,819,000$ Net OPEB liability/(asset) - ending (a) - (b)(4,191,028)$ (1,724,741)$ (690,000)$ Plan fiduciary net position as a percentage of the total OPEB liability 124.3% 109.4% 104.0% Covered-employee payroll 10,037,794$ 9,997,000$ 10,431,000$ Net OPEB liability as a percentage of covered-employee payroll -41.8% -17.3% -6.6% City of Dublin Required Supplementary Information For the year ended June 30, 2020 95 2. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued B. DRFA Retiree Health Plan - Schedule of Changes in Total OPEB Liability and Related Ratios During the Measurement Period – Last 10 Years (1) (1) Fiscal year 2018 was the 1st year of implementation. C. Schedule of City Retiree Health Plan Contributions – Last 10 Years (1) (1) Fiscal year 2018 was the 1st year of implementation. Measurement Period 2019 2018 2017 Total OPEB Liability Service Cost -$ -$ -$ Interest on the total OPEB liability 21,375 21,087 18,608 Changes in benefit terms - - - Differences between expected and actual experience (42,037) (2,375) - Changes of assumptions 8,160 (13,873) (40,627) Benefit payments, including refunds of employee contributions (41,888) (41,174) (42,587) Net change in total OPEB liability (54,390) (36,335) (64,606) Total OPEB liability - beginning 573,269 609,604 674,210 Total OPEB liability - ending (a)518,879$ 573,269$ 609,604$ Covered-employee payroll Not Applicable Not Applicable Not Applicable Net OPEB liability as a percentage of covered-employee payroll Not Applicable Not Applicable Not Applicable Fiscal Year Ended June 30 2020 2019 2018 Actuarially Determined Contribution (ADC) 138,000$ 851,000$ 861,000$ Contributions in relation to the ADC (1,116,396) (1,075,930) (1,589,000) Contribution deficiency (excess) (978,396) (224,930) (728,000) Covered-employee payroll 10,533,380$ 10,037,794$ 9,997,000$ Contributions as a percentage of covered-employee payroll 10.60% 10.72% 15.89% This page intentionally left blank 96 SUPPLEMENTARY INFORMATION 97 This page intentionally left blank 98 Schedule of Budget Versus Actual Revenues By Sources General Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) Property taxes: Current year secured 36,288,609$ 36,698,609$ 37,872,078$ 1,173,469$ Current year unsecured 1,934,792 1,934,792 1,971,750 36,958 Supplemental property tax 1,253,653 1,253,653 1,437,350 183,697 Prior year secured 390,810 390,810 381,783 (9,027) Prior year unsecured - - (2,533) (2,533) Property tax penalties - - 126,071 126,071 In lieu property tax 7,006,890 7,256,890 7,299,836 42,946 Sub-total 46,874,754 47,534,754 49,086,335 1,551,581 Taxes other than property: Sales and use tax 21,227,378 21,227,378 21,032,455 (194,923) Real property transfer tax 750,000 750,000 632,828 (117,172) Hotel transient occupancy tax 1,400,000 1,400,000 1,567,987 167,987 Franchise taxes 4,649,400 4,649,400 5,079,508 430,108 Sub-total 28,026,778 28,026,778 28,312,778 286,000 Licenses and permits: Animal licenses 7,000 7,000 6,074 (926) Building permits 4,646,546 4,146,546 3,546,120 (600,426) Business license 130,000 130,000 151,758 21,758 Construction and demolition permits 20,864 20,864 15,949 (4,915) Encroachment permits 84,500 84,500 36,610 (47,890) Fire permits 71,055 71,055 54,265 (16,790) Grading permits 5,000 5,000 10,175 5,175 Planning permits 60,758 60,758 69,033 8,275 Miscellaneous permits 20,092 20,092 14,700 (5,392) Sub-total 5,045,815 4,545,815 3,904,684 (641,131) Fines and forfeitures: Parking citations 72,432 72,432 62,945 (9,487) Business license penalties 4,000 4,000 - (4,000) Other court fines 35,000 35,000 22,183 (12,817) Sub-total 111,432 111,432 85,128 (26,304) Revenues from use of money and property: Interest 2,000,000 2,000,000 3,602,131 1,602,131 Internal designated - - 50,314 50,314 Change in fair market value - - 6,433,261 6,433,261 Rents and concessions: Field and court rentals 185,480 185,480 239,620 54,140 Facility rentals 396,141 396,141 308,894 (87,247) Leased property 522,506 382,506 425,878 43,372 Sub-total 3,104,127 2,964,127 11,060,098 8,095,971 City of Dublin For the year ended June 30, 2020 Budgeted Amounts 99 Schedule of Budget Versus Actual Revenues By Sources (Continued) General Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) Intergovernmental: Motor vehicle-in-lieu - - 51,110 51,110 Mandated costs 10,000 10,000 16,617 6,617 Homeowner's property tax relief 224,919 224,919 238,698 13,779 Sub-total 234,919 234,919 306,425 71,506 Charges for services: General government Building use insurance 26,816 26,816 19,772 (7,044) Sales of maps and documents 500 500 95 (405) Public safety Police charges for services 39,140 39,140 40,121 981 Fire charges for services 180,000 180,000 289,936 109,936 Santa Rita fire services 764,160 764,160 1,251,744 487,584 Waste mangement Waste management admin fees 1,030,134 1,030,134 1,306,029 275,895 Environmental programs EV charges 2,000 2,000 21,725 19,725 Parks and community services Aquatic programs 1,259,943 1,259,943 753,910 (506,033) Cemetery 6,222 6,222 1,320 (4,902) Cultural arts 193,225 193,225 112,581 (80,644) Family programs 1,329,242 1,329,242 781,084 (548,158) Community events and festivals 156,325 156,325 45,426 (110,899) Heritage center 17,650 17,650 8,063 (9,587) Preschool programs 251,822 251,822 164,227 (87,595) Recreational activities 300,000 300,000 140,917 (159,083) Senior programs 92,420 92,420 68,145 (24,275) Sports programs 773,118 773,118 638,449 (134,669) Community development Engineering plan checking 2,892,500 2,892,500 2,114,067 (778,433) Local share permit surcharge - SMIP 14,332 14,332 17,809 3,477 Local share permit surcharge - Zone 7 drainage fees 17,067 17,067 3,440 (13,627) Zoning and subdivision fees 722,575 722,575 624,573 (98,002) Local share permit surcharge - Green building 740 740 920 180 Public works PFD development services - - 288,456 288,456 Sub-total 10,069,931 10,069,931 8,692,809 (1,377,122) Budgeted Amounts City of Dublin For the year ended June 30, 2020 100 Schedule of Budget Versus Actual Revenues By Sources (Continued) General Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) Developer fees: Developer fees - - 36,428 36,428 Sub-total - - 36,428 36,428 Other revenues: Contributions 96,745 97,645 65,600 (32,045) Sales of property 202,910 202,910 140,470 (62,440) Miscellaneous 70,000 80,665 138,816 58,151 Reimbursement - general 445,051 636,024 1,012,566 376,542 Reimbursement - public damage - 29,016 30,396 1,380 Reimbursement - community benefit assessment 200,000 641,000 - (641,000) Sub-total 1,014,706 1,687,260 1,387,848 (299,412) Total revenues by sources 94,482,462$ 95,175,016$ 102,872,533$ 7,697,517$ Budgeted Amounts City of Dublin For the year ended June 30, 2020 101 Schedule of Budget Versus Actual Departmental Expenditures General Fund For the year ended June 30, 2020 Variance with Final Budget Actual Positive Original Final Amounts (Negative) General government: City council 513,787 516,287 455,832 60,455 City manager 1,322,373 1,322,373 1,405,865 (83,492) City clerk 593,347 623,347 530,425 92,922 Election 3,120 3,120 1,273 1,847 Human resources 829,472 904,472 747,782 156,690 Insurance 534,766 686,766 688,570 (1,804) City attorney 927,780 927,780 669,143 258,637 Finance 2,124,795 2,163,145 1,684,163 478,982 Non departmental ISF 1,838,100 3,949,796 1,613,248 2,336,548 Disaster preparedness 148,103 258,103 287,731 (29,628) Crossing guards 225,842 241,401 168,906 72,495 Animal control 421,653 421,653 227,122 194,531 Waste management 78,896 78,896 48,127 30,769 Community TV 144,135 142,995 118,773 24,222 Economic development 1,240,031 4,284,662 3,887,249 397,413 Public information 364,103 516,461 439,241 77,220 Library services 950,722 950,722 783,480 167,242 Dougherty Regional Fire Authority 701,026 705,523 690,859 14,664 Sub-total 12,962,051 18,697,502 14,447,789 4,249,713 Police: Police admin/support services 3,505,108 3,769,688 3,388,018 381,670 Patrol 10,303,814 10,039,234 9,313,482 725,752 Traffic 1,186,404 1,186,404 1,475,274 (288,870) Investigations 2,686,471 2,686,471 3,269,386 (582,915) Crime prevention/school resource services 1,786,732 1,786,732 1,640,699 146,033 Communications/dispatch 1,395,240 1,500,947 1,254,996 245,951 Police operations support 2,016,930 2,030,117 1,716,232 313,885 Sub-total 22,880,699 22,999,593 22,058,087 941,506 Fire: Administration 13,820,485 13,820,485 13,398,257 422,228 Fire prevention 486,863 486,863 479,632 7,231 Fire station maintenance 227,225 232,616 191,384 41,232 Sub-total 14,534,573 14,539,964 14,069,273 470,691 City of Dublin Budgeted Amounts 102 Schedule of Budget Versus Actual Departmental Expenditures (Continued) General Fund For the year ended June 30, 2020 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Public works: Building management 1,817,370 1,695,005 1,566,172 128,833 Public safety complex 272,884 206,264 133,653 72,611 Traffic signals 92,104 160,214 90,426 69,788 Street lighting 28,649 28,649 22,267 6,382 Parks/facilities development 315,831 342,134 327,024 15,110 Public works administration 863,588 1,012,604 966,645 45,959 Street maintenance 42,745 107,988 72,639 35,349 Street sweeping 172,466 228,466 211,284 17,182 Street landscaping 1,713,872 1,816,596 1,426,130 390,466 Street tree maintenance 288,318 288,318 251,564 36,754 Environmental services 683,412 704,112 572,973 131,139 Engineering 3,361,656 3,546,729 2,502,379 1,044,350 Park maintenance 3,963,482 3,963,483 3,772,838 190,645 Sub-total 13,616,377 14,100,562 11,915,994 2,184,568 Parks and community services: Cultural and special events 1,015,946 1,015,946 682,646 333,300 Heritage Center 512,475 509,352 481,526 27,826 Parks and community services administration 1,234,627 1,287,551 1,197,151 90,400 Shannon Center 1,604,878 1,624,878 1,187,135 437,743 Stager and other facility operations 1,055,220 1,055,220 905,443 149,777 Senior Center 736,838 764,861 676,807 88,054 The Wave 2,732,368 2,785,050 2,005,114 779,936 Sub-total 8,892,352 9,042,858 7,135,822 1,907,036 City of Dublin Budgeted Amounts 103 Schedule of Budget Versus Actual Departmental Expenditures (Continued) General Fund For the year ended June 30, 2020 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Community development: Planning 2,569,782 2,604,211 1,908,331 695,880 Building and safety 3,474,967 3,509,967 2,716,589 793,378 Sub-total 6,044,749 6,114,178 4,624,920 1,489,258 Total current expenditures 78,930,801 85,494,657 74,251,885 11,242,772 Total expenditures 78,930,801$ 85,494,657$ 74,251,885$ 11,242,772$ Budgeted Amounts City of Dublin 104 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 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 fund 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 drain systems. The Public Facilities 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 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 Crossing Project, separate from any developer impact fees generated by the project. BUDGETED MAJOR GOVERNMENTAL FUNDS OTHER THAN GENERAL FUND AND SPECIAL REVENUE FUNDS 105 This page intentionally left blank 106 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Improvement Projects Capital Projects Fund For the year ended June 30, 2020 Variance with Final Budget Actual Positive Original Final Amounts (Negative) EXPENDITURES: Capital outlay: General improvements 3,585,900$ 17,027,307$ 9,828,253$ 7,199,054$ Total expenditures 3,585,900 17,027,307 9,828,253 7,199,054 REVENUES OVER (UNDER) EXPENDITURES (3,585,900) (17,027,307) (9,828,253) 7,199,054 OTHER FINANCING SOURCES (USES): Transfers in 3,585,900 17,027,307 9,828,253 (7,199,054) Total other financing sources (uses)3,585,900 17,027,307 9,828,253 (7,199,054) Net change in fund balance -$ -$ - -$ FUND BALANCE: Beginning of year - End of year -$ City of Dublin Budgeted Amounts 107 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Parks Project Capital Projects Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) EXPENDITURES: Capital outlay: Parks 8,110,304$ 22,764,916$ 6,180,120$ 16,584,796$ Total expenditures 8,110,304 22,764,916 6,180,120 16,584,796 REVENUES OVER (UNDER) EXPENDITURES (8,110,304) (22,764,916) (6,180,120) 16,584,796 OTHER FINANCING SOURCES (USES): Transfers in 8,110,304 22,764,916 6,180,120 (16,584,796) Total other financing sources (uses)8,110,304 22,764,916 6,180,120 (16,584,796) Net change in fund balance -$ -$ - -$ FUND BALANCE: Beginning of year - End of year -$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 108 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Streets Projects Capital Projects Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) EXPENDITURES: Capital outlay: Streets 14,909,405$ 25,771,220$ 5,488,030$ 20,283,190$ Total expenditures 14,909,405 25,771,220 5,488,030 20,283,190 REVENUES OVER (UNDER) EXPENDITURES (14,909,405) (25,771,220) (5,488,030) 20,283,190 OTHER FINANCING SOURCES (USES): Transfers in 14,909,405 25,889,229 5,606,039 (20,283,190) Total other financing sources (uses)14,909,405 25,889,229 5,606,039 (20,283,190) Net change in fund balance -$ 118,009$ 118,009 -$ FUND BALANCE: Beginning of year (118,009) End of year -$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 109 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Public Facilities Impact Fees Capital Projects Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 71,920$ 71,920$ 623,344$ 551,424$ Developer fees 6,593,298 2,429,143 4,730,443 2,301,300 Total revenues 6,665,218 2,501,063 5,353,787 2,852,724 EXPENDITURES: Current: Parks and community services - 55,812 48,141 7,671 Debt service: Principal 1,368,187 1,368,187 1,368,186 1 Total expenditures 1,368,187 1,423,999 1,416,327 7,672 REVENUES OVER (UNDER) EXPENDITURES 5,297,031 1,077,064 3,937,460 2,860,396 OTHER FINANCING SOURCES (USES): Transfers (out) (5,174,904) (15,044,967) (2,301,523) 12,743,444 Total other financing sources (uses)(5,174,904) (15,044,967) (2,301,523) 12,743,444 Net change in fund balance 122,127$ (13,967,903)$ 1,635,937 15,603,840$ FUND BALANCE: Beginning of year 23,535,817 End of year 25,171,754$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 110 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Fire Impact Fees Capital Projects Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 2,385$ 2,385$ 3,090$ 705$ Developer fees 187,915 101,016 66,606 (34,410) Total revenues 190,300 103,401 69,696 (33,705) EXPENDITURES: Current: General government 60,000 100,000 100,000 - Total expenditures 60,000 100,000 100,000 - REVENUES OVER (UNDER) EXPENDITURES 130,300 3,401 (30,304) (33,705) Net change in fund balance 130,300$ 3,401$ (30,304) (33,705)$ FUND BALANCE: Beginning of year 180,037 End of year 149,733$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 111 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Traffic Impact Fees Capital Projects Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 204,147$ 204,147$ 526,154$ 322,007$ Developer fees 3,545,487 1,211,450 1,754,821 543,371 Total revenues 3,749,634 1,415,597 2,280,975 865,378 EXPENDITURES: Current: General government 500,000 3,498,404 2,846,599 651,805 Public works - 67,758 26,083 41,675 Total expenditures 500,000 3,566,162 2,872,682 693,480 REVENUES OVER (UNDER) EXPENDITURES 3,249,634 (2,150,565) (591,707) 1,558,858 OTHER FINANCING SOURCES (USES): Transfers (out) (9,890,241) (11,205,243) (1,010,824) 10,194,419 Total other financing sources (uses)(9,890,241) (11,205,243) (1,010,824) 10,194,419 Net change in fund balance (6,640,607)$ (13,355,808)$ (1,602,531) 11,753,277$ FUND BALANCE: Beginning of year 28,638,901 End of year 27,036,370$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 112 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Dublin Crossing Contribution Capital Project Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 83,119$ 83,119$ 172,432$ 89,313$ Other revenues 1,000,000 1,000,000 - (1,000,000) Total revenues 1,083,119 1,083,119 172,432 (910,687) OTHER FINANCING SOURCES (USES): Transfers (out) - (3,500,724) (3,500,724) - Total other financing sources (uses)- (3,500,724) (3,500,724) - Net change in fund balance 1,083,119$ (2,417,605)$ (3,328,292) (910,687)$ FUND BALANCE: Beginning of year 10,598,599 End of year 7,270,307$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 113 This page intentionally left blank 114 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 (SLES/COPS)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. 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 transportation 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 Alameda County voter approved increase in sales tax used for bike and pedestrian related projects. Transportation Fund for Clean Air (TFCA)established to account for a portion of vehicle registration fee used for achieving the reduction of motor vehicle emissions. Road Maintenance & Rehabilitation Account (RMRA)established to account for Senate Bill 1 that increases gasoline and diesel taxes and vehicle registration fees to fund for basic road maintenance, rehabilitation, and critical safety projects on local streets and roads. NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE 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. 115 ACTC Vehicle Registration Fee established to account for an Alameda County Transportation Commission (ACTC) voter approved increase in vehicle registration fee that is distributed by ACTC to be used for street road system maintenance. TDA established to account for the financial activities associated with allocations funded by the State of California Transportation Development Act (TDA) 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 pitch-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. AVI Economic Benefit/business Assistance Program established to account for the grant received from Amador Valley Industry and to provide business owners funding for eligible environmental related improvements. Storm Water Management established to account for the following activities: Storm Water Management established to account for the funds received from the State and designated specifically for the use of storm water related activities. Village Parkway Storm Water Management established to account for funds designated for management of the Village Parkway area storm water units. Box Culvert established to account for the funds designated for the maintenance and repairs of box culvert in the East Dublin area. SPECIAL REVENUE FUNDS, Continued NON-MAJOR GOVERNMENTAL FUNDS 116 Parks, Cultural, and Arts: Public Art established 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 established 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 established to account for event ticket sales and donations, to be spent on special events citywide. Community Development Block Grant (CDBG)used to account for grants and expenditures related to Community Development Block Grants received. HCD Housing Related Parks Grant established to account for a Housing-Related Park (HRP) Grant funding from the Department of Housing and Community Development pursuant to the Housing and Emergency Shelter Trust Fund Act of 2006 (Proposition IC.) State Grant Park used to account for local assistance grant funding from the State for park constructions. COVID-19 Grants established to account for the use of funds received from the Federal Coronavirus Aid, Relief and Economic Security (CARES) Act to provide funding for necessary expenses incurred due to the COVID-19 public health emergency. Federal COVID-19 Financial Assistance established to account for the use of funds from an East Bay Community Energy Grant to provide funding for rental assistance for lower income households impacted by COVID-19. Maintenance Districts established to account for revenue and related expenditures of lighting and landscape districts. SPECIAL REVENUE FUNDS, Continued NON-MAJOR GOVERNMENTAL FUNDS 117 City of Dublin Combining Balance Sheet Governmental Funds June 30, 2020 Special Supplemental Criminal Vehicle Law Traffic Federal Asset Activity Abatement Enforcement Safety Seizure ASSETS Cash and investments 429,287$ 215,138$ 155,792$ 67,264$ 642$ Accounts receivable - 17,169 - 6,118 - Notes receivable - - - - - Prepaids - - - - - Total assets 429,287 232,307 155,792 73,382 642 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 1,751 - - 12,115 - Deposits payable 399,151 - - - - Contract retention payable - - - - - Unearned revenue - - - - - Due to other funds - - - - - Total liabilities 400,902 - - 12,115 - Fund Balances: Nonspendable - - - - - Restricted: Public safety programs 28,385 232,307 155,792 61,267 642 Street maintenance and construction - - - - - Health and welfare programs - - - - - Culture and leisure - - - - - Capital improvement projects - - - - - Unassigned - - - - - Total fund balances 28,385 232,307 155,792 61,267 642 Total liabilities, deferred inflows of resources, and fund balances 429,287$ 232,307$ 155,792$ 73,382$ 642$ Special Revenue Funds 118 Emergency Measure B Measure B Measure BB Medical Enforcement Sales Tax Sales Tax Measure B Sales Tax Services Grants State Gas Tax Local Streets Bike/Pedestrian Grants Streets and Roads 223,317$ 132,994$ 2,572,424$ 211,832$ 170,410$ -$ 391,482$ 968 - - 95,538 34,744 271,109 85,615 - - - - - - - - - - - - - - 224,285 132,994 2,572,424 307,370 205,154 271,109 477,097 46,065 - 58,732 - 2,500 - - - - - - - - - - - 821 - - - - - - - - - - - - - - - - 86,522 - 46,065 - 59,553 - 2,500 86,522 - - - - - - - - 178,220 132,994 - - - - - - - 2,512,871 307,370 202,654 184,587 477,097 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 178,220 132,994 2,512,871 307,370 202,654 184,587 477,097 224,285$ 132,994$ 2,572,424$ 307,370$ 205,154$ 271,109$ 477,097$ Special Revenue Funds 119 City of Dublin Combining Balance Sheet Governmental Funds June 30, 2020 ACTC Measure BB Transportation Road Maint & Vehicle Sales Tax for Clean Air Rehab Account Registration Bike/Pedestrian (TFCA) (RMRA) Fee TDA ASSETS Cash and investments 169,782$ -$ 895,687$ 239,480$ -$ Accounts receivable 28,309 - 170,796 51,206 - Notes receivable - - - - - Prepaids - - - - - Total assets 198,091 - 1,066,483 290,686 - LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable - - - 6,130 - Deposits payable - - - - - Contract retention payable - - - - - Unearned revenue - - - - - Due to other funds - - - - 71,773 Total liabilities - - - 6,130 71,773 Fund Balances: Nonspendable - - - - - Restricted: Public safety programs - - - - - Street maintenance and construction 198,091 - 1,066,483 284,556 - Health and welfare programs - - - - - Culture and leisure - - - - - Capital improvement projects - - - - - Unassigned - - - - (71,773) Total fund balances 198,091 - 1,066,483 284,556 (71,773) Total liabilities, deferred inflows of resources, and fund balances 198,091$ -$ 1,066,483$ 290,686$ -$ Special Revenue Funds 120 AVI Economic Benefit/Business Storm Miscellaneous Community Garbage/ Assistance Water Box Special Development Recycling Program Management Culvert Public Art Revenue Block Grant 1,005,541$ -$ 241,787$ 388,625$ 4,154,129$ 272,958$ -$ 98,463 - - - - 34,934 43,554 - 519,461 - - - - - - - - - - - - 1,104,004 519,461 241,787 388,625 4,154,129 307,892 43,554 18,634 15,151 - - - - 2,936 - - - - - 2,299 - - - - - - - - 22,972 - - - - - - - 26,646 - - - - 40,618 41,606 41,797 - - - 2,299 43,554 - - - - - - - - - - - - - - - - 241,787 388,625 - - - 1,062,398 - - - - 20,427 - - 477,664 - - - 285,166 - - - - - 4,154,129 - - - - - - - - - 1,062,398 477,664 241,787 388,625 4,154,129 305,593 - 1,104,004$ 519,461$ 241,787$ 388,625$ 4,154,129$ 307,892$ 43,554$ Special Revenue Funds 121 City of Dublin Combining Balance Sheet Governmental Funds June 30, 2020 Federal COVID-19 1983-1 1983-2 State Grant COVID-19 Financial Street Stagecoach Park Grants Assistance Lighting Landscape ASSETS Cash and investments -$ -$ 3,452$ 498,989$ 262,372$ Accounts receivable 980,534 - - 1,989 - Notes receivable - - - - - Prepaids - 25,000 - - - Total assets 980,534 25,000 3,452 500,978 262,372 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable - 25,000 - 20,074 8,099 Deposits payable - - - - - Contract retention payable - - - - - Unearned revenue - - - - - Due to other funds 1,334,704 - 57,363 - - Total liabilities 1,334,704 25,000 57,363 20,074 8,099 Fund Balances: Nonspendable - 25,000 - - - Restricted: Public safety programs - - - - - Street maintenance and construction - - - 480,904 254,273 Health and welfare programs - - - - - Culture and leisure - - - - - Capital improvement projects - - - - - Unassigned (354,170) (25,000) (53,911) - - Total fund balances (354,170) - (53,911) 480,904 254,273 Total liabilities, deferred inflows of resources, and fund balances 980,534$ 25,000$ 3,452$ 500,978$ 262,372$ Special Revenue Funds Maintenance Districts 122 1986-1 1997-1 1999-1 Dublin Total Nonmajor Dougherty Santa Rita East Dublin Crossing Governmental Landscape Landscape Street Lighting CFD No. 2017-1 Funds 453,655$ 1,023,696$ 1,150,169$ 166,716$ 15,497,620$ 210 6,766 1,609 180 1,929,811 - - - - 519,461 - - - - 25,000 453,865 1,030,462 1,151,778 166,896 17,971,892 9,096 37,225 22,148 - 285,656 - - - - 401,450 - - - - 821 - - - - 22,972 - - - - 1,617,626 9,096 37,225 22,148 - 2,328,525 - - - - 25,000 - - - - 789,607 444,769 993,237 1,129,630 166,896 9,333,830 - - - - 1,082,825 - - - - 762,830 - - - - 4,154,129 - - - - (504,854) 444,769 993,237 1,129,630 166,896 15,643,367 453,865$ 1,030,462$ 1,151,778$ 166,896$ 17,971,892$ Special Revenue Funds Maintenance Districts 123 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2020 Special Supplemental Criminal Vehicle Law Traffic Federal Asset Activity Abatement Enforcement Safety Seizure REVENUES: Intergovernmental -$ 43,169$ 155,948$ -$ -$ Charges for service - - - - - Interest 787 4,611 2,862 2,450 13 Fines and forfeitures - - - 111,712 - Developer fees - - - - - Other revenue 14,609 - - - - Special assessments - - - - - Total revenues 15,396 47,780 158,810 114,162 13 EXPENDITURES: Current: General Government - - - - - Police 16,601 - 100,000 - - Fire - - - - - Public works - - - 209,142 - Park and community services - - - - - Total expenditures 16,601 - 100,000 209,142 - REVENUES OVER (UNDER) EXPENDITURES (1,205) 47,780 58,810 (94,980) 13 OTHER FINANCING SOURCES (USES): Transfers (out) - (24,215) - - - Total other financing sources (uses)- (24,215) - - - Net change in fund balances (1,205) 23,565 58,810 (94,980) 13 FUND BALANCES (DEFICITS): Beginning of year 29,590 208,742 96,982 156,247 629 End of year 28,385$ 232,307$ 155,792$ 61,267$ 642$ Special Revenue Funds 124 Measure BB Emergency Measure B Measure B Sales Tax Medical Enforcement Sales Tax Sales Tax Bike Measure B Streets and Services Grants State Gas Tax Local Streets /Pedestrian Grants Roads -$ 33,466$ 1,393,603$ 577,055$ 209,866$ 184,587$ 516,735$ - - - - - - - 3,733 2,240 54,698 8,944 4,086 - 7,848 - - - - - - - - - - - - - - - - 220 - - - - 203,886 - - - - - - 207,619 35,706 1,448,521 585,999 213,952 184,587 524,583 - - - - - - - - 2,486 - - - - - 175,640 - - - - - - - - 588,858 - 7,578 - - - - - - - - - 175,640 2,486 588,858 - 7,578 - - 31,979 33,220 859,663 585,999 206,374 184,587 524,583 - - (1,073,596) (822,068) (319,885) - (354,100) - - (1,073,596) (822,068) (319,885) - (354,100) 31,979 33,220 (213,933) (236,069) (113,511) 184,587 170,483 146,241 99,774 2,726,804 543,439 316,165 - 306,614 178,220$ 132,994$ 2,512,871$ 307,370$ 202,654$ 184,587$ 477,097$ Special Revenue Funds 125 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2020 Measure BB ACTC Sales Tax Transportation Road Maint & Vehicle Bike/ for Clean Air Rehab Account Registration Pedestrian (TFCA) (RMRA) Fee TDA REVENUES: Intergovernmental 170,864$ -$ 1,118,465$ 289,579$ -$ Charges for service - - - - - Interest 3,388 - 15,049 5,477 - Fines and forfeitures - - - - - Developer fees - - - - - Other revenue - - 72,599 - - Special assessments - - - - - Total revenues 174,252 - 1,206,113 295,056 - EXPENDITURES: Current: General Government - - - - - Police - - - - - Fire - - - - - Public works - - - 205,986 - Park and community services - - - - - Total expenditures - - - 205,986 - REVENUES OVER (UNDER) EXPENDITURES 174,252 - 1,206,113 89,070 - OTHER FINANCING SOURCES (USES): Transfers (out) (181,041) (344) (815,044) (51,737) (72,503) Total other financing sources (uses)(181,041) (344) (815,044) (51,737) (72,503) Net change in fund balances (6,789) (344) 391,069 37,333 (72,503) FUND BALANCES (DEFICITS): Beginning of year 204,880 344 675,414 247,223 730 End of year 198,091$ -$ 1,066,483$ 284,556$ (71,773)$ Special Revenue Funds 126 AVI Economic Benefit/Business Storm Miscellaneous Community Garbage/ Assistance Water Box Special Development Recycling Program Management Culvert Public Art Revenue Block Grant 236,501$ -$ -$ -$ -$ -$ 105,195$ 5,508,322 - - - - 144,091 - 23,011 8,203 4,949 7,757 93,142 4,314 - - - - - - - - - - - - 9,305 1,634 - - 100,000 - - - - - - - - - - - - 5,767,834 108,203 4,949 7,757 102,447 150,039 105,195 5,503,129 47,063 - - - 30,192 105,195 - - - - - - - - - - - - - - 75,462 - 10,000 - - - - - - - - 44,312 - - 5,578,591 47,063 10,000 - 44,312 30,192 105,195 189,243 61,140 (5,051) 7,757 58,135 119,847 - - - - - (574,737) - - - - - - (574,737) - - 189,243 61,140 (5,051) 7,757 (516,602) 119,847 - 873,155 416,524 246,838 380,868 4,670,731 185,746 - 1,062,398$ 477,664$ 241,787$ 388,625$ 4,154,129$ 305,593$ -$ Special Revenue Funds 127 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2020 Federal COVID-19 1983-1 1983-2 State Grant COVID-19 Financial Street Stagecoach Park Grants Assistance Lighting Landscape REVENUES: Intergovernmental 980,534$ -$ -$ -$ -$ Charges for service - - - - - Interest - - - 8,342 4,486 Fines and forfeitures - - - - - Developer fees - - - - - Other revenue - - - - - Special assessments - - - 313,740 99,901 Total revenues 980,534 - - 322,082 104,387 EXPENDITURES: Current: General Government - - 53,911 - - Police - - - - - Fire - - - - - Public works - - - 216,697 59,039 Park and community services - - - - - Total expenditures - - 53,911 216,697 59,039 REVENUES OVER (UNDER) EXPENDITURES 980,534 - (53,911) 105,385 45,348 OTHER FINANCING SOURCES (USES): Transfers (out) (1,334,704) - - - - Total other financing sources (uses)(1,334,704) - - - - Net change in fund balances (354,170) - (53,911) 105,385 45,348 FUND BALANCES (DEFICITS): Beginning of year - - - 375,519 208,925 End of year (354,170)$ -$ (53,911)$ 480,904$ 254,273$ Maintenance Districts Special Revenue Funds 128 1986-1 1997-1 1999-1 Dublin Total Nonmajor Dougherty Santa Rita East Dublin Crossing Governmental Landscape Landscape Street Lighting CFD No. 2017-1 Funds -$ -$ -$ -$ 6,015,567$ - - - - 5,652,413 8,095 17,846 21,382 2,166 319,879 - - - - 111,712 - - - - 10,939 - - - - 187,428 133,125 368,560 307,797 96,247 1,523,256 141,220 386,406 329,179 98,413 13,821,194 - - - - 5,739,490 - - - - 119,087 - - - - 175,640 83,202 217,007 204,190 1,895 1,879,056 - - - - 44,312 83,202 217,007 204,190 1,895 7,957,585 58,018 169,399 124,989 96,518 5,863,609 - - (2,126) - (5,626,100) - - (2,126) - (5,626,100) 58,018 169,399 122,863 96,518 237,509 386,751 823,838 1,006,767 70,378 15,405,858 444,769$ 993,237$ 1,129,630$ 166,896$ 15,643,367$ Maintenance Districts Special Revenue Funds 129 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Special Criminal Activity Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 644$ 644$ 787$ 143$ Other revenues - - 14,609 14,609 Total revenues 644 644 15,396 14,752 EXPENDITURES: Current: Police - 44,415 16,601 27,814 Total expenditures - 44,415 16,601 27,814 REVENUES OVER (UNDER) EXPENDITURES 644 (43,771) (1,205) 42,566 Net change in fund balance 644$ (43,771)$ (1,205) 42,566$ FUND BALANCE: Beginning of year 29,590 End of year 28,385$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 130 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Vehicle Abatement Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 34,000$ 34,000$ 43,169$ 9,169$ Interest 6,106 6,106 4,611 (1,495) Total revenues 40,106 40,106 47,780 7,674 OTHER FINANCING SOURCES (USES): Transfers (out) - (75,000) (24,215) 50,785 Total other financing sources (uses)- (75,000) (24,215) 50,785 Net change in fund balance 40,106$ (34,894)$ 23,565 58,459$ FUND BALANCE: Beginning of year 208,742 End of year 232,307$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 131 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Supplemental Law Enforcement Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 100,000$ 100,000$ 155,948$ 55,948$ Interest 73 73 2,862 2,789 Total revenues 100,073 100,073 158,810 58,737 EXPENDITURES: Current: Police 100,000 100,000 100,000 - Total expenditures 100,000 100,000 100,000 - REVENUES OVER (UNDER) EXPENDITURES 73 73 58,810 58,737 Net change in fund balance 73$ 73$ 58,810 58,737$ FUND BALANCE: Beginning of year 96,982 End of year 155,792$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 132 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Traffic Safety Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 1,588$ 1,588$ 2,450$ 862$ Fines and forfeitures 160,000 160,000 111,712 (48,288) Total revenues 161,588 161,588 114,162 (47,426) EXPENDITURES: Current: Public works 302,092 303,689 209,142 94,547 Total expenditures 302,092 303,689 209,142 94,547 REVENUES OVER (UNDER) EXPENDITURES (140,504) (142,101) (94,980) 47,121 Net change in fund balance (140,504)$ (142,101)$ (94,980) 47,121$ FUND BALANCE: Beginning of year 156,247 End of year 61,267$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 133 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Federal Asset Seizure Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest -$ -$ 13$ 13$ Total revenues - - 13 13 EXPENDITURES: Current: Police - 2,602 - 2,602 Total expenditures - 2,602 - 2,602 REVENUES OVER (UNDER) EXPENDITURES - (2,602) 13 2,615 Net change in fund balance -$ (2,602)$ 13 2,615$ FUND BALANCE: Beginning of year 629 End of year 642$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 134 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Emergency Medical Services Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest -$ -$ 3,733$ 3,733$ Special assessments 200,089 200,089 203,886 3,797 Total revenues 200,089 200,089 207,619 7,530 EXPENDITURES: Current: Fire 191,779 191,779 175,640 16,139 Total expenditures 191,779 191,779 175,640 16,139 REVENUES OVER (UNDER) EXPENDITURES 8,310 8,310 31,979 23,669 Net change in fund balance 8,310$ 8,310$ 31,979 23,669$ FUND BALANCE: Beginning of year 146,241 End of year 178,220$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 135 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Enforcement Grants Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 50,000$ 33,466$ (16,534)$ Interest 44 44 2,240 2,196 Total revenues 44 50,044 35,706 (14,338) EXPENDITURES: Current: Police - 50,000 2,486 47,514 Total expenditures - 50,000 2,486 47,514 REVENUES OVER (UNDER) EXPENDITURES 44 44 33,220 33,176 Net change in fund balance 44$ 44$ 33,220 33,176$ FUND BALANCE: Beginning of year 99,774 End of year 132,994$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 136 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual State Gas Tax Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 1,578,330$ 1,578,330$ 1,393,603$ (184,727)$ Interest 17,300 17,300 54,698 37,398 Other revenues - - 220 220 Total revenues 1,595,630 1,595,630 1,448,521 (147,109) EXPENDITURES: Current: Public works 679,692 728,718 588,858 139,860 Total expenditures 679,692 728,718 588,858 139,860 REVENUES OVER (UNDER) EXPENDITURES 915,938 866,912 859,663 (7,249) OTHER FINANCING SOURCES (USES): Transfers (out) (1,769,833) (3,592,111) (1,073,596) 2,518,515 Total other financing sources (uses)(1,769,833) (3,592,111) (1,073,596) 2,518,515 Net change in fund balance (853,895)$ (2,725,199)$ (213,933) 2,511,266$ FUND BALANCE: Beginning of year 2,726,804 End of year 2,512,871$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 137 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B Sales Tax Local Streets Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 500,000$ 500,000$ 577,055$ 77,055$ Interest 354 354 8,944 8,590 Total revenues 500,354 500,354 585,999 85,645 OTHER FINANCING SOURCES (USES): Transfers (out) (506,640) (915,675) (822,068) 93,607 Total other financing sources (uses)(506,640) (915,675) (822,068) 93,607 Net change in fund balance (6,286)$ (415,321)$ (236,069) 179,252$ FUND BALANCE: Beginning of year 543,439 End of year 307,370$ - City of Dublin For the year ended June 30, 2020 Budgeted Amounts 138 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B Sales Tax Bike / Pedestrian Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 170,000$ 170,000$ 209,866$ 39,866$ Interest 875 875 4,086 3,211 Total revenues 170,875 170,875 213,952 43,077 EXPENDITURES: Current: Public works 17,961 17,961 7,578 10,383 Total expenditures 17,961 17,961 7,578 10,383 REVENUES OVER (UNDER) EXPENDITURES 152,914 152,914 206,374 53,460 OTHER FINANCING SOURCES (USES): Transfers (out) (123,000) (412,782) (319,885) 92,897 Total other financing sources (uses)(123,000) (412,782) (319,885) 92,897 Net change in fund balance 29,914$ (259,868)$ (113,511) 146,357$ FUND BALANCE: Beginning of year 316,165 End of year 202,654$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 139 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B Grants Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ -$ 184,587$ 184,587$ Total revenues - - 184,587 184,587 OTHER FINANCING SOURCES (USES): Transfers (out) - (8,965) - 8,965 Total other financing sources (uses)- (8,965) - 8,965 Net change in fund balance -$ (8,965)$ 184,587 193,552$ FUND BALANCE: Beginning of year - End of year 184,587$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 140 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB Sales Tax Streets and Roads Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 450,000$ 450,000$ 516,735$ 66,735$ Interest 1,355 1,355 7,848 6,493 Total revenues 451,355 451,355 524,583 73,228 OTHER FINANCING SOURCES (USES): Transfers (out) (442,000) (639,619) (354,100) 285,519 Total other financing sources (uses)(442,000) (639,619) (354,100) 285,519 Net change in fund balance 9,355$ (188,264)$ 170,483 358,747$ FUND BALANCE: Beginning of year 306,614 End of year 477,097$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 141 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB Sales Tax Bike / Pedestrian Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 140,000$ 140,000$ 170,864$ 30,864$ Interest 2,041 2,041 3,388 1,347 Total revenues 142,041 142,041 174,252 32,211 OTHER FINANCING SOURCES (USES): Transfers (out) (120,000) (273,541) (181,041) 92,500 Total other financing sources (uses)(120,000) (273,541) (181,041) 92,500 Net change in fund balance 22,041$ (131,500)$ (6,789) 124,711$ FUND BALANCE: Beginning of year 204,880 End of year 198,091$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 142 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Transportation for Clean Air (TFCA) Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 146,000$ -$ (146,000)$ Total revenues - 146,000 - (146,000) OTHER FINANCING SOURCES (USES): Transfers (out) (345) (146,345) (344) 146,001 Total other financing sources (uses)(345) (146,345) (344) 146,001 Net change in fund balance (345)$ (345)$ (344) 1$ FUND BALANCE: Beginning of year 344 End of year -$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 143 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Road Maintenance & Rehabilitation Account (RMRA) Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 1,046,742$ 1,046,742$ 1,118,465$ 71,723$ Interest 5,902 5,902 15,049 9,147 Other revenues 71,317 71,317 72,599 1,282 Total revenues 1,123,961 1,123,961 1,206,113 82,152 OTHER FINANCING SOURCES (USES): Transfers in 67,853 67,853 - (67,853) Transfers (out) (1,118,059) (1,598,013) (815,044) 782,969 Total other financing sources (uses)(1,050,206) (1,530,160) (815,044) 715,116 Net change in fund balance 73,755$ (406,199)$ 391,069 797,268$ FUND BALANCE: Beginning of year 675,414 End of year 1,066,483$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 144 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ACTC Vehicle Registration Fee Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 250,000$ 250,000$ 289,579$ 39,579$ Interest 1,819 1,819 5,477 3,658 Total revenues 251,819 251,819 295,056 43,237 EXPENDITURES: Current: Public works 205,986 205,986 205,986 - Total expenditures 205,986 205,986 205,986 - REVENUES OVER (UNDER) EXPENDITURES 45,833 45,833 89,070 43,237 OTHER FINANCING SOURCES (USES): Transfers (out) (181,200) (216,744) (51,737) 165,007 Total other financing sources (uses)(181,200) (216,744) (51,737) 165,007 Net change in fund balance (135,367)$ (170,911)$ 37,333 208,244$ FUND BALANCE: Beginning of year 247,223 End of year 284,556$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 145 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual TDA Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 210,000$ -$ (210,000)$ Total revenues - 210,000 - (210,000) OTHER FINANCING SOURCES (USES): Transfers (out) (730) (210,730) (72,503) 138,227 Total other financing sources (uses)(730) (210,730) (72,503) 138,227 Net change in fund balance (730)$ (730)$ (72,503) (71,773)$ FUND BALANCE: Beginning of year 730 End of year (71,773)$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 146 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Garbage / Recycling Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 210,100$ 210,100$ 236,501$ 26,401$ Charges for services 4,759,988 5,490,347 5,508,322 17,975 Interest 6,401 6,401 23,011 16,610 Other revenues 1,000 1,000 - (1,000) Total revenues 4,977,489 5,707,848 5,767,834 59,986 EXPENDITURES: Current: General government 4,777,232 5,507,591 5,503,129 4,462 Public works 284,150 209,041 75,462 133,579 Total expenditures 5,061,382 5,716,632 5,578,591 138,041 REVENUES OVER (UNDER) EXPENDITURES (83,893) (8,784) 189,243 198,027 OTHER FINANCING SOURCES (USES): Transfers (out) - (170,306) - 170,306 Total other financing sources (uses)- (170,306) - 170,306 Net change in fund balance (83,893)$ (179,090)$ 189,243 368,333$ FUND BALANCE: Beginning of year 873,155 End of year 1,062,398$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 147 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual AVI Economic Benefit / Business Assistance Program Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest -$ -$ 8,203$ 8,203$ Other revenues 100,000 100,000 100,000 - Special assessments - - - - Total revenues 100,000 100,000 108,203 8,203 EXPENDITURES: Current: General government 100,000 619,461 47,063 572,398 Total expenditures 100,000 619,461 47,063 572,398 REVENUES OVER (UNDER) EXPENDITURES - (519,461) 61,140 580,601 Net change in fund balance -$ (519,461)$ 61,140 580,601$ FUND BALANCE: Beginning of year 416,524 End of year 477,664$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 148 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Storm Water Management Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 2,970$ 2,970$ 4,949$ 1,979$ Total revenues 2,970 2,970 4,949 1,979 EXPENDITURES: Current: Public works 12,040 12,040 10,000 2,040 Total expenditures 12,040 12,040 10,000 2,040 REVENUES OVER (UNDER) EXPENDITURES (9,070) (9,070) (5,051) 4,019 Net change in fund balance (9,070)$ (9,070)$ (5,051) 4,019$ FUND BALANCE: Beginning of year 246,838 End of year 241,787$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 149 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Box Culvert Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 5,011$ 5,011$ 7,757$ 2,746$ Total revenues 5,011 5,011 7,757 2,746 Net change in fund balance 5,011$ 5,011$ 7,757 2,746$ FUND BALANCE: Beginning of year 380,868 End of year 388,625$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 150 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Public Art Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 33,650$ 33,650$ 93,142$ 59,492$ Developer fees - - 9,305 9,305 Total revenues 33,650 33,650 102,447 68,797 EXPENDITURES: Current: Parks and community services 53,500 80,190 44,312 35,878 Total expenditures 53,500 80,190 44,312 35,878 REVENUES OVER (UNDER) EXPENDITURES (19,850) (46,540) 58,135 104,675 OTHER FINANCING SOURCES (USES): Transfers (out) (335,400) (1,184,635) (574,737) 609,898 Total other financing sources (uses)(335,400) (1,184,635) (574,737) 609,898 Net change in fund balance (355,250)$ (1,231,175)$ (516,602) 714,573$ FUND BALANCE: Beginning of year 4,670,731 End of year 4,154,129$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 151 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Misellaneous Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Charges for services 183,000$ 183,000$ 144,091$ (38,909)$ Interest 3,479 3,479 4,314 835 Developer fees 1,583 1,583 1,634 51 Total revenues 188,062 188,062 150,039 (38,023) EXPENDITURES: Current: General government 42,442 42,442 30,192 12,250 Total expenditures 42,442 42,442 30,192 12,250 REVENUES OVER (UNDER) EXPENDITURES 145,620 145,620 119,847 (25,773) Net change in fund balance 145,620$ 145,620$ 119,847 (25,773)$ FUND BALANCE: Beginning of year 185,746 End of year 305,593$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 152 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 100,570$ 100,570$ 105,195$ 4,625$ Total revenues 100,570 100,570 105,195 4,625 EXPENDITURES: Current: General government 100,570 115,696 105,195 10,501 Total expenditures 100,570 115,696 105,195 10,501 REVENUES OVER (UNDER) EXPENDITURES - (15,126) - 15,126 Net change in fund balance -$ (15,126)$ - 15,126$ FUND BALANCE: Beginning of year - End of year -$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 153 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1983-1 Street Lighting Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 3,051$ 3,051$ 8,342$ 5,291$ Special assessments 326,067 326,067 313,740 (12,327) Total revenues 329,118 329,118 322,082 (7,036) EXPENDITURES: Current: Public works 224,984 224,984 216,697 8,287 Total expenditures 224,984 224,984 216,697 8,287 REVENUES OVER (UNDER) EXPENDITURES 104,134 104,134 105,385 1,251 Net change in fund balance 104,134$ 104,134$ 105,385 1,251$ FUND BALANCE: Beginning of year 375,519 End of year 480,904$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 154 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1983-2 Stagecoach Landscape Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 1,781$ 1,781$ 4,486$ 2,705$ Special assessments 100,588 100,588 99,901 (687) Total revenues 102,369 102,369 104,387 2,018 EXPENDITURES: Current: Public works 100,804 100,804 59,039 41,765 Total expenditures 100,804 100,804 59,039 41,765 REVENUES OVER (UNDER) EXPENDITURES 1,565 1,565 45,348 43,783 Net change in fund balance 1,565$ 1,565$ 45,348 43,783$ FUND BALANCE: Beginning of year 208,925 End of year 254,273$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 155 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1986-1 Dougherty Landscape Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 4,943$ 4,943$ 8,095$ 3,152$ Special assessments 158,347 158,347 133,125 (25,222) Total revenues 163,290 163,290 141,220 (22,070) EXPENDITURES: Current: Public works 134,447 134,447 83,202 51,245 Total expenditures 134,447 134,447 83,202 51,245 REVENUES OVER (UNDER) EXPENDITURES 28,843 28,843 58,018 29,175 Net change in fund balance 28,843$ 28,843$ 58,018 29,175$ FUND BALANCE: Beginning of year 386,751 End of year 444,769$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 156 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1997-1 Santa Rita Landscape Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 5,577$ 5,577$ 17,846$ 12,269$ Special assessments 379,190 379,190 368,560 (10,630) Total revenues 384,767 384,767 386,406 1,639 EXPENDITURES: Current: Public works 327,928 327,928 217,007 110,921 Total expenditures 327,928 327,928 217,007 110,921 REVENUES OVER (UNDER) EXPENDITURES 56,839 56,839 169,399 112,560 Net change in fund balance 56,839$ 56,839$ 169,399 112,560$ FUND BALANCE: Beginning of year 823,838 End of year 993,237$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 157 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1999-1 East Dublin Street Lighting Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 3,441$ 3,441$ 21,382$ 17,941$ Special assessments 320,721 320,721 307,797 (12,924) Total revenues 324,162 324,162 329,179 5,017 EXPENDITURES: Current: Public works 208,183 208,183 204,190 3,993 Total expenditures 208,183 208,183 204,190 3,993 REVENUES OVER (UNDER) EXPENDITURES 115,979 115,979 124,989 9,010 OTHER FINANCING SOURCES (USES): Transfers (out) (37,285) (761,615) (2,126) 759,489 Total other financing sources (uses)(37,285) (761,615) (2,126) 759,489 Net change in fund balance 78,694$ (645,636)$ 122,863 768,499$ FUND BALANCE: Beginning of year 1,006,767 End of year 1,129,630$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 158 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Community Facilities District No. 2017-1 Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 174$ 174$ 2,166$ 1,992$ Special assessments 39,274 39,274 96,247 56,973 Total revenues 39,448 39,448 98,413 58,965 EXPENDITURES: Current: Public works 17,166 17,166 1,895 15,271 Streets 7,556 7,556 - 7,556 Total expenditures 24,722 24,722 1,895 22,827 REVENUES OVER (UNDER) EXPENDITURES 14,726 14,726 96,518 81,792 Net change in fund balance 14,726$ 14,726$ 96,518 81,792$ FUND BALANCE: Beginning of year 70,378 End of year 166,896$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 159 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual State Grant Park Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 1,358,000$ 980,534$ (377,466)$ Total revenues - 1,358,000 980,534 (377,466) REVENUES OVER (UNDER) EXPENDITURES - 1,358,000 980,534 (377,466) OTHER FINANCING SOURCES (USES): Transfers (out) - (1,358,000) (1,334,704) 23,296 Total other financing sources (uses)- (1,358,000) (1,334,704) 23,296 Net change in fund balance -$ -$ (354,170) (354,170)$ FUND BALANCE: Beginning of year - End of year (354,170)$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 160 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual COVID-19 Grants Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Property taxes -$ -$ -$ -$ Sales tax - - - - Other taxes - - - - Intergovernmental - - - - Licenses and permits - - - - Charges for services - - - - Interest - - - - Use of property - - - - Fines and forfeitures - - - - Developer fees - - - - Other revenues - - - - Special assessments - - - - Total revenues - - - - EXPENDITURES: Current: General government - - - - Police - - - - Fire - - - - Public works - - - - Parks and community services - - - - Economic development - - - - Community development - - - - Capital outlay:- General improvements - - - - Community improvements - - - - Parks and community services - - - - Streets - - - - Debt service:- Principal - - - - Total expenditures - - - - REVENUES OVER (UNDER) EXPENDITURES - - - - OTHER FINANCING SOURCES (USES): Proceeds from long-term debt - - - - Transfers in - - - - Transfers (out) - - - - Total other financing sources (uses)- - - - Net change in fund balance -$ -$ - -$ FUND BALANCE: Beginning of year - End of year -$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 161 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Federal COVID-19 Financial Assistance Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 811,404$ -$ (811,404)$ Total revenues - 811,404 - (811,404) EXPENDITURES: Current: General government - 811,404 53,911 757,493 Total expenditures - 811,404 53,911 757,493 REVENUES OVER (UNDER) EXPENDITURES - - (53,911) (53,911) Net change in fund balance -$ -$ (53,911) (53,911)$ FUND BALANCE: Beginning of year - End of year (53,911)$ City of Dublin For the year ended June 30, 2020 Budgeted Amounts 162 INTERNAL SERVICE FUNDS Vehicle Replacement this fund is an interest bearing Internal Service Fund established to finance necessary vehicle replacements. Building Replacement this fund is an interest bearing Internal Service Fund established to finance future major building component repair expenditures. Equipment Replacement this fund is an interest bearing Internal Service fund established to finance necessary equipment replacements. Retiree Health Care this fund is an interest bearing Internal Service Fund established to account for the contribution made to the California Employers' Retiree Benefit Trust Fund for future retiree health care benefits. Information Technology accounts for all information and technology costs, including staffing. 163 City of Dublin Combining Statement of Net Position Internal Service Funds June 30, 2020 Vehicle Building Equipment Replacement Replacement Replacement ASSETS Current assets: Cash and investments 3,559,908$ 9,902,784$ 6,659,491$ Prepaids - - - Total current assets 3,559,908 9,902,784 6,659,491 Capital Assets: Land - 10,774,792 - Construction in progress - 3,333,121 51,564 Infrastructure - 622,831 122,183 Building and improvements - 63,177,051 - Vehicles and equipment 5,801,039 - 1,719,231 Less accumulated depreciation (3,803,726) (40,424,546) (881,441) Net capital assets 1,997,313 37,483,249 1,011,537 Total assets 5,557,221 47,386,033 7,671,028 LIABILITIES Current liabilities: Accounts payable and accruals 11,655 - 23,557 Due to other funds - - - Total current liabilities 11,655 - 23,557 Total liabilities 11,655 - 23,557 NET POSITION (DEFICIT) Net investment in capital assets 1,997,313 37,483,249 1,011,537 Unrestricted 3,548,253 9,902,784 6,635,934 Total net position (deficit)5,545,566$ 47,386,033$ 7,647,471$ 164 Retiree Information Health Care Technology Total -$ 943,398$ 21,065,581$ 178,472 252,995 431,467 39,436 1,196,393 21,358,012 - - 10,774,792 - 717,562 4,102,247 - - 745,014 - 42,732 63,219,783 - 46,084 7,566,354 - (22,187) (45,131,900) - 784,191 41,276,290 39,436 1,980,584 62,634,302 (11,719) 60,146 83,639 14,299 - 14,299 2,580 60,146 97,938 2,580 60,146 97,938 - 784,191 41,276,290 36,856 1,136,247 21,260,074 36,856$ 1,920,438$ 62,536,364$ 165 City of Dublin Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the year ended June 30, 2020 Vehicle Building Equipment Replacement Replacement Replacement OPERATING REVENUES: Charges for services 526,265$ 220,593$ 872,675$ Other revenue - - - Total operating revenues 526,265 220,593 872,675 OPERATING EXPENSES: Supplies and services (778,224) (271,470) 245,789 Retiree health premiums - - - Depreciation 330,275 2,114,107 144,601 Total operating expenses (447,949) 1,842,637 390,390 OPERATING INCOME (LOSS)974,214 (1,622,044) 482,285 NONOPERATING REVENUES (EXPENSES): Interest income 70,235 179,187 123,099 Total nonoperating revenues (expenses)70,235 179,187 123,099 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS:1,044,449 (1,442,857) 605,384 Transfers in - 1,000,000 229,066 Transfers (out)- (393,881) (37,604) Total transfers - 606,119 191,462 Change in net position 1,044,449 (836,738) 796,846 NET POSITION (DEFICIT): Beginning of year 4,501,117 48,222,771 6,850,625 End of year 5,545,566$ 47,386,033$ 7,647,471$ 166 Retiree Information Health Care Technology Total 928,474$ 1,549,554$ 4,097,561$ 797,980 - 797,980 1,726,454 1,549,554 4,895,541 - 1,583,140 779,235 1,726,129 - 1,726,129 - 10,260 2,599,243 1,726,129 1,593,400 5,104,607 325 (43,846) (209,066) 2,991 24,261 399,773 2,991 24,261 399,773 3,316 (19,585) 190,707 - - 1,229,066 - (276,131) (707,616) - (276,131) 521,450 3,316 (295,716) 712,157 33,540 2,216,154 61,824,207 36,856$ 1,920,438$ 62,536,364$ 167 City of Dublin Combining Statement of Cash Flows Internal Service Funds For the year ended June 30, 2020 Vehicle Building Equipment Replacement Replacement Replacement CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers 526,265$ 220,593$ 872,675$ Payments to suppliers and service providers 789,879 271,470 (347,455) Other revenues - - - Net cash provided by (used in) operating activities 1,316,144 492,063 525,220 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash receipts from other funds - 1,000,000 229,066 Cash disbursements to other funds - (393,881) (37,604) Net cash provided by (used in) noncapital financing activities - 606,119 191,462 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of capital assets (1,168,526) (393,876) (162,646) Net cash used in capital and related financing activities (1,168,526) (393,876) (162,646) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 70,235 179,187 123,099 Net cash provided by investing activities 70,235 179,187 123,099 Net Cash Flows 217,853 883,493 677,135 CASH AND CASH EQUIVALENTS - Beginning of year 3,342,055 9,019,291 5,982,356 CASH AND CASH EQUIVALENTS - End of year 3,559,908$ 9,902,784$ 6,659,491$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss)974,214$ (1,622,044)$ 482,285$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 330,275 2,114,107 144,601 Change in assets and liabilities Prepaids - - - Accounts payable and accruals 11,655 - (101,666) Net cash provided by (used in) operating activities 1,316,144$ 492,063$ 525,220$ 168 Retiree Information Health Care Technology Total 1,067,510$ 1,549,554$ 4,236,597$ (1,904,555) (1,751,993) (2,942,654) 797,980 - 797,980 (39,065) (202,439) 2,091,923 - - 1,229,066 14,299 (276,131) (693,317) 14,299 (276,131) 535,749 - (36,131) (1,761,179) - (36,131) (1,761,179) 2,991 24,261 399,773 2,991 24,261 399,773 (21,775) (490,440) 1,266,266 21,775 1,433,838 19,799,315 -$ 943,398$ 21,065,581$ 325$ (43,846)$ (209,066) - 10,260 2,599,243 (14,320) (210,562) (224,882) (164,106) 41,709 (212,408) (39,065)$ (202,439)$ 2,091,923$ 169 This page intentionally left blank 170 AGENCY FUNDS 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 on 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 Crossing (North Tassajara) Geologic Hazard Abatement District this assessment district was established to account for the maintenance of open space areas in accordance with a condition of approval for the fallon Crossings development project. The boundary of the District encompasses 68 acres of land located on the northeast side of Tassajara Road, about 2 1/4 Miles north of Interstate Highway 580, Tassajara Road and Moller Creek, a tributary of Tassajara Creek, border the western and northeastern limits of the site. Dublin Crossing Community Facilities District (CFD) No. 2015-1 (Dublin Crossing) Fund is used to account for bond issuances to finance capital facilities and infrastructure within the CFD secured by the collection of Special Taxes on real property within the CFD. The Agency Fund is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of operations. CFD bonds are not debt obligations of the City. Dublin Boulevard Extension Assessment District to account form the special assessment established to fund the improvements to Dublin Boulevard. Geologic Hazard Abatement Districts two districts were formed under provisions in the California Public 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. 171 This page intentionally left blank 172 City of Dublin Combining Statement of Assets and Liabilities All Agency Funds June 30, 2020 Dublin Boulevard Fallon Community Extension Crossing Facilities Assessment Fallon Schnaefer (North District Total District Village Ranch Tassajara) No. 2015-1 Agency Funds Assets: Cash and investments 9,184$ 6,129,834$ 4,885,051$ 1,176,419$ 29,810,317$ 42,010,805$ Accounts receivable - 6,301 5,688 2,216 15,508 29,713 Total assets 9,184$ 6,136,135$ 4,890,739$ 1,178,635$ 29,825,825$ 42,040,518$ Liabilities: Accounts payable -$ 10,564$ 29,127$ 1,309$ 24,494$ 65,494$ Due to trustee - 6,125,571 4,861,612 1,177,326 29,801,331 41,965,840 Due to bondholders 9,184 - - - - 9,184 Total liabilities 9,184$ 6,136,135$ 4,890,739$ 1,178,635$ 29,825,825$ 42,040,518$ Geologic Hazard Abatement Districts 173 City of Dublin Agency Funds Statement of Changes in Agency Funds Assets and Liabilities For the year ended June 30, 2020 Balance Balance July 1, 2019 Additions Deductions June 30, 2020 Dublin Boulevard Extension Assessment District Assets: Cash and investments 9,001$ 183$ -$ 9,184$ Total assets 9,001$ 183$ -$ 9,184$ Liabilities: Due to bondholders 9,001$ 183$ -$ 9,184$ Total liabilities 9,001$ 183$ -$ 9,184$ Fallon Village Geologic Hazardous Abatement District Assets: Cash and investments 5,190,597$ 1,206,921$ 267,684$ 6,129,834$ Accounts receivable 3,966 10,267 7,932 6,301 Total assets 5,194,563$ 1,217,188$ 275,616$ 6,136,135$ Liabilities: Accounts payable 36,283$ 204,999$ 230,718$ 10,564$ Due to trustee 5,158,280 967,291 - 6,125,571 Total liabilities 5,194,563$ 1,172,290$ 230,718$ 6,136,135$ Schaefer Ranch Geologic Hazardous Abatement District Assets: Cash and investments 4,397,231$ 604,985$ 117,165$ 4,885,051$ Accounts receivable - 5,688 - 5,688 Total assets 4,397,231$ 610,673$ 117,165$ 4,890,739$ Liabilities: Accounts payable 17,822$ 104,326$ 93,021$ 29,127$ Due to trustee 4,739,409 122,203 - 4,861,612 Total liabilities 4,757,231$ 226,529$ 93,021$ 4,890,739$ 174 Balance Balance July 1, 2019 Additions Deductions June 30, 2020 Fallon Crossing (North Tassajara) Geologic Hazardous Abatement District Assets: Cash and investments 752,582$ 450,471$ 26,634$ 1,176,419$ Accounts receivable 2,066 4,282 4,132 2,216 Total assets 754,648$ 454,753$ 30,766$ 1,178,635$ Liabilities: Accounts payable 297$ 11,001$ 9,989$ 1,309$ Due to trustee 754,351 422,975 - 1,177,326 Total liabilities 754,648$ 433,976$ 9,989$ 1,178,635$ Communities Facilities District No. 2015-1 Assets: Cash and investments 12,195,414$ 49,331,781$ 31,716,878$ 29,810,317$ Accounts receivable 4,079 19,587 8,158 15,508 Total assets 12,199,493$ 49,351,368$ 31,725,036$ 29,825,825$ Liabilities: Accounts payable 333$ 3,004,033$ 2,979,872$ 24,494$ Due to other 12,199,160 17,602,171 - 29,801,331 Total liabilities 12,199,493$ 20,606,204$ 2,979,872$ 29,825,825$ Totals - All Agency Funds Assets: Cash and investments 22,544,825$ 51,594,341$ 32,128,361$ 42,010,805$ Accounts receivable 10,111 39,824 20,222 29,713 Total assets 22,554,936$ 51,634,165$ 32,148,583$ 42,040,518$ Liabilities: Accounts payable 54,735$ 3,324,359$ 3,313,600$ 65,494$ Due to other 12,199,160 17,602,171 - 29,801,331 Due to trustee 10,652,040 1,512,469 - 12,164,509 Due to bondholders 9,001 183 - 9,184 Total liabilities 22,914,936$ 22,439,182$ 3,313,600$ 42,040,518$ 175 This page intentionally left blank 176 Index Financial Trends Revenue Capacity Debt Capacity Demographic and Economic Information 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. STATISTICAL SECTION This part of the City of Dublin’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. These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. 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 issues additional debt in the future. These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 177 2011 2012 2013 Governmental Activities Net Investment In Capital Assets 433,779,703$ 433,548,888$ 432,722,323$ Restricted 21,453,867 36,714,724 52,548,095 Unrestricted 76,303,907 86,063,259 99,084,771 Total primary government 531,537,477$ 556,326,871$ 584,355,189$ Source: City of Dublin Administrative Services Department Fiscal Year CITY OF DUBLIN NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (Accrual Basis of Accounting) 178 2014 2015 2016 2017 2018 2019 2020 445,529,366$ 444,832,546$ 460,963,292$ 487,123,214$ 501,516,781$ 531,251,006$ 539,809,963$ 60,808,540 74,738,217 97,592,438 94,745,655 107,452,493 105,409,183 109,947,040 97,918,858 107,176,361 111,725,077 120,464,219 141,008,993 177,705,220 193,382,816 604,256,764$ 626,747,124$ 670,280,807$ 702,333,088$ 749,978,267$ 814,365,409$ 843,139,819$ ////// Fiscal Year 179 2011 2012 2013 Expenses Governmental Activities General government 9,322,322$ 10,116,219$ 10,265,476$ Police Fire Public works Parks and community service Economic development Public safety 24,413,496 26,781,283 26,846,045 Highways and streets 10,142,946 6,709,217 7,241,263 Health and Welfare 12,749,042 146,204 3,753,875 Culture and leisure services 9,304,429 9,804,128 10,772,868 Community development 5,482,552 6,089,415 9,979,877 Interest on long-term debt Total Governmental Activities Expenses 71,414,787 59,646,466 68,859,404 Program Revenues Governmental Activities Charges for Services General government 225,109$ 140,418$ 142,353$ Police Fire Public works Parks and community service Economic development Public safety 1,821,404 1,061,352 2,482,060 Highways and streets 450,937 738,662 470,063 Health and Welfare 2,874,952 3,063,223 3,422,782 Culture and leisure services 2,214,407 1,909,812 2,463,146 Community development 5,546,417 9,051,970 9,540,241 Operating Contributions and Grants 2,220,247 1,008,318 1,135,050 Capital Contributions and Grants 15,745,614 23,668,070 28,689,753 Total Governmental Activities Program Revenues 31,099,087$ 40,641,825$ 48,345,448$ Source: City of Dublin Administrative Services Department Fiscal Year CITY OF DUBLIN CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual Basis of Accounting) 180 2014 2015 2016 2017 2018 2019 2020 17,665,221$ 10,774,480$ 19,280,680$ 13,549,013$ 16,120,440$ 14,460,805$ 24,851,393$ 15,325,113 18,316,420 17,080,942 19,423,830 21,814,982 22,483,378 12,198,769 14,725,476 13,687,195 13,315,788 14,152,331 14,122,166 15,336,225 13,883,008 18,351,543 17,103,824 24,131,711 21,103,350 12,149,716 14,625,459 11,193,876 15,640,280 12,750,878 10,548,537 679,313 555,564 864,697 683,362 926,223 27,770,111 4,305,390 43,787 4,057,796 9,018,161 9,169,788 5,713,196 11,410,946 14,249,950 7,074,630 5,606,118 5,406,572 125,881 71,986,467 72,176,812 92,797,553 88,977,216 89,531,822 93,843,048 98,515,396 153,544$ 5,777,971$ 5,209,378$ 5,402,925$ 6,060,099$ 6,520,152$ 7,507,286$ 399,802 362,054 322,231 335,929 330,280 244,363 1,746,581 1,633,056 1,426,973 1,551,899 1,708,807 1,603,243 2,987,235 2,698,767 3,386,621 3,517,700 3,132,543 2,471,032 3,009,383 2,931,553 2,950,625 4,638,050 5,287,193 3,237,611 2,164,085 484,801 3,631,344 2,753,911 10,393,367 7,657,467 13,217,027 9,334,477 10,139,788 7,742,076 4,402,789 1,674,815 955,677 1,629,137 8,008,289 12,577,699 7,633,916 4,940,586 20,914,994 21,931,981 38,433,119 21,133,748 23,438,110 34,517,687 9,192,691 42,170,861$ 44,466,097$ 66,114,091$ 51,965,889$ 62,259,274$ 66,872,654$ 33,599,601$ Fiscal Year 181 2011 2012 2013 Net (Expense)/Revenue Governmental Activities (40,315,700)$ (19,004,641)$ (20,513,956)$ General Revenues and Other Changes in Net Position Governmental Activities Taxes Property taxes 21,918,484 22,246,360 23,590,102 Special assessment taxes Sales tax 12,969,119 14,996,932 15,359,340 Other taxes 3,798,515 4,295,675 5,054,257 Motor vehicle tax, unrestricted 250,974 Investment income, unrestricted 536,047 865,719 (399,590) Other general revenues 1,079,419 1,389,349 4,938,165 Total Governmental Activities 40,552,558 43,794,035 48,542,274 Change in Net Position Governmental Activities 236,858$ 24,789,394$ 28,028,318$ Source: City of Dublin Administrative Services Department Fiscal Year CITY OF DUBLIN CHANGES IN NET POSITION LAST TEN FISCAL YEARS (Accrual Basis of Accounting) 182 2014 2015 2016 2017 2018 2019 2020 (29,815,606)$ (27,710,715)$ (26,683,462)$ (37,011,327)$ (27,272,548)$ (26,970,394)$ (64,915,795)$ 25,286,308 29,437,951 33,598,601 36,964,785 40,628,040 44,293,602 49,086,335 1,359,212 1,416,721 1,472,933 1,469,840 1,523,257 17,833,314 1,264,204 22,070,547 21,186,333 21,134,636 26,297,803 22,506,975 5,427,627 19,211,823 6,606,016 6,834,545 43,787 8,223,510 7,280,323 6,159,654 853,147 2,937,999 (710,595) (558,269) 8,589,252 10,485,543 316,785 1,022,209 3,644,670 3,371,819 3,335,600 2,483,530 2,276,391 49,717,181 57,095,841 70,217,045 69,063,608 66,056,727 91,357,537 93,158,824 19,901,575$ 29,385,126$ 43,533,583$ 32,052,281$ 38,784,179$ 64,387,143$ 28,243,029$ Fiscal Year 183 2011* 2012 2013 General Fund Reserved Unreserved, designated for: Advance to TVTD W. BART station contribution Affordable Housing Authorized expenditures Capital improvments Cash Flow & Operation Stability Catastrophic Loss & Business Recovery Capital Improvements Projects Carryover Compensated Absences Economic Uncertainty Emergency Communication System Fire Retiree Medical Innovation & New Opportunities Investment Market Value Adjustment Operation Carryover Service Continuity Obligation Unreserved, undesigned Non-Spendable 4,096,768$ 3,433,886$ 2,836,130$ Restricted 500,000 Committed 27,893,755 24,176,650 36,020,171 Assigned 17,407,053 22,080,677 23,912,896 Unassigned 14,745,685 15,072,535 14,047,932 Total General Fund 64,143,261$ 64,763,748$ 77,317,129$ All Other Governmental Funds Reserved Unreserved, Reported In: Special Revenue Funds Capital Projects Funds Undesignated Non-spendable Restricted 21,453,867$ 38,073,638$ 53,646,702 Committed Assigned Unassigned (1,735,988) (1,358,914) (1,098,607) Total All Other Governmental Funds 19,717,879$ 36,714,724$ 52,548,095$ Total Governmental Funds 83,861,140$ 101,478,472$ 129,865,224$ * GASB 54 implemented in fiscal year 10/11 Source: City of Dublin Administrative Services Department CITY OF DUBLIN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting) Fiscal Year 184 2014 2015 2016 2017 2018 2019 2020 43,787 2,465,678$ 1,475,691$ 729,883$ 198,878$ 7,391$ 12,818$ 13,061$ 500,000 500,000 579,000 1,762,000 1,938,000 1,938,000 1,938,000 34,124,267 38,531,179 38,928,755 36,213,714 43,740,492 47,267,326 57,828,475 29,259,333 35,875,264 39,078,695 50,126,807 57,267,840 60,771,810 64,004,658 13,228,484 21,324,360 29,867,693 34,114,263 39,158,943 61,235,819 66,865,027 79,621,549$ 97,706,494$ 109,184,026$ 122,415,662$ 142,112,666$ 171,225,773$ 190,649,221$ 650 25,000 61,710,448 75,646,848 84,453,929 82,686,743 105,476,681 107,090,763 104,872,535 21,743 (923,409) (930,131) 13,138,509 11,808,233 (1,998,366) (3,737,589) (3,522,706) 60,787,039$ 74,738,460$ 97,592,438$ 94,494,976$ 103,478,965$ 103,353,174$ 101,374,829$ 140,408,588$ 172,444,954$ 206,776,464$ 216,910,638$ 245,591,631$ 274,578,947$ 292,024,050$ Fiscal Year 185 2011 2012 2013 Revenues Property taxes 22,067,074$ 22,398,847$ 23,742,336$ Taxes other than property 17,210,947 19,761,015 20,915,025 Intergovernmental 3,946,271 3,962,572 4,534,748 Licenses and permits 2,752,748 4,501,736 5,224,932 Charges for services 8,743,460 10,331,501 11,979,079 Investment income 952,819 1,068,138 (185,467) Use of property 978,642 659,857 580,507 Fines and forfeitures 303,595 284,993 326,027 Developer fees 9,390,001 15,965,329 19,545,692 Special assessments 904,739 944,455 980,775 Other revenues 4,135,091 4,509,762 9,134,201 Total Revenues 71,385,387 84,388,205 96,777,855 Expenditures Current: General Government 7,935,407 7,001,850 7,600,102 Police Fire Public works Park and community service Economic development Public safety 24,546,456 26,298,962 26,643,549 Highways and streets 3,030,540 2,768,068 3,096,498 Health and welfare 12,775,536 4,422,468 4,149,599 Culture and leisure services 7,223,808 8,248,229 8,919,816 Community development 5,609,603 7,362,732 8,586,129 Capital outlay: General 599,965 6,641,674 8,866,096 Health and welfare Community improvements 328,418 213,777 81,234 Culture and leisure 996,669 2,324,586 Parks 3,809,723 Streets 4,513,072 2,959,555 4,946,527 Debt service: Principal Total Expenditures 70,372,528 66,913,984 75,214,136 Excess of Revenues Over (Under) Expenditures 1,012,859 17,474,221 21,563,719 Other Financing Sources (Uses) Proceeds from Debt Transfers In 9,163,360 10,898,009 16,338,838 Transfers Out (9,163,360) (10,754,898) (9,515,805) Total Other Financing Sources (Uses) 143,111 6,823,033 Net Change In Fund Balances $1,012,859 $17,617,332 $28,386,752 Debt Service as a percentage of non-capital expenditures 0.0% 0.0% 0.0% Source: City of Dublin Administrative Services Department Fiscal Year CITY OF DUBLIN CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting) 186 2014 2015 2016 2017 2018 2019 2020 25,448,254$ 29,437,951$ 33,598,601$ 36,964,784$ 40,628,040$ 44,293,602$ 49,086,335$ 23,769,133 25,371,476 28,676,662 28,020,877 27,089,866 32,949,484 28,312,778 2,574,159 3,245,822 3,303,521 9,352,861 12,415,367 8,961,332 7,411,403 5,944,985 6,025,685 6,139,420 7,770,259 7,706,579 6,631,083 3,904,684 12,326,848 13,737,934 13,846,381 14,185,768 17,859,770 16,786,806 14,433,980 1,101,634 1,071,936 3,689,940 168,792 666,808 10,345,636 12,006,831 1,591,784 2,352,810 6,751,864 1,539,669 1,669,841 1,519,342 1,381,729 323,601 320,629 290,871 260,220 275,665 265,971 196,840 43,787 18,578,172 37,240,622 19,454,100 17,096,267 15,169,147 6,599,237 1,025,239 1,264,201 1,359,214 1,416,721 1,472,932 1,469,839 1,523,256 2,712,998 3,473,012 1,323,855 1,724,880 7,344,731 4,881,209 1,587,084 76,862,422 104,879,628 136,220,951 120,858,931 134,225,866 143,273,451 126,444,157 8,411,507 10,663,140 20,110,958 12,421,915 13,355,989 13,958,554 23,151,872 15,697,432 17,886,990 17,183,853 19,355,889 21,983,278 22,177,174 11,930,245 12,265,614 13,442,239 13,431,891 14,269,535 14,244,913 8,481,686 8,616,323 13,433,983 10,718,547 14,708,764 13,821,133 9,731,003 10,791,185 8,934,718 13,585,706 9,708,040 7,228,275 808,272 604,777 891,602 664,909 936,191 27,381,497 3,042,476 4,379,634 9,349,729 9,102,734 6,059,180 11,348,674 11,652,735 6,700,773 5,543,073 4,989,648 13,316,472 1,241,494 666,478 1,922,766 2,380,766 11,240,369 9,828,253 21,497 68,190 117,104 3,854 76,795 9,451,657 4,742,328 23,469,847 26,113,810 10,606,254 1,081,809 6,180,120 2,403,926 3,568,142 3,652,808 10,516,675 12,832,455 14,666,554 5,488,030 1,345,484 1,368,186 1,368,186 86,861,129 72,991,112 109,530,758 116,518,150 105,055,458 109,464,353 108,477,604 (9,998,707) 31,888,516 26,690,193 4,340,781 29,170,408 33,809,098 17,966,553 5,450,042 25,192,268 9,625,456 27,912,037 38,313,026 24,363,489 27,100,426 21,651,510 (20,385,523) (9,455,561) (29,903,351) (37,969,675) (24,852,904) (31,922,207) (22,172,960) 4,806,745 169,895 (1,991,314) 5,793,393 (489,415) (4,821,781) (521,450) ($5,191,962) $32,058,411 $24,698,879 $10,134,174 $28,680,993 $28,987,317 $17,445,103 0.0% 0.0% 0.0% 0.0% 1.7% 1.9% 1.5% Fiscal Year 187 Fiscal Year Real Property Net Taxable Ended Residential Commercial Industrial Unsecured/ Less: Assessed City Wide Avg. June 30 Property Property Property Other Property Exemptions Value Total Direct Tax Rate 2011 5,967,980,343 1,285,382,821 209,573,141 843,686,092 -115,875,189 8,190,747,208 0.2386% 2012 6,114,540,497 1,263,207,583 246,434,460 859,683,607 -120,225,737 8,363,640,410 0.2386% 2013 6,378,930,469 1,330,147,064 245,481,519 948,525,966 -112,296,063 8,790,788,955 0.2380% 2014 7,135,260,308 1,336,760,537 246,334,563 1,035,990,618 -172,869,596 9,581,476,430 0.2373% 2015 8,431,051,125 1,391,578,857 274,410,187 1,138,571,747 -185,639,690 11,049,972,226 0.2367% 2016 9,662,162,719 1,481,865,501 277,588,684 1,261,568,728 -152,705,687 12,530,479,945 0.2365% 2017 10,563,641,612 1,572,348,815 276,986,936 1,412,347,150 -151,208,054 13,674,116,459 0.2363% 2018 11,483,621,200 1,634,851,757 279,900,741 1,494,613,752 -91,891,868 14,801,095,582 0.2363% 2019 12,705,642,088 1,713,788,644 284,936,683 1,623,924,258 -181,733,659 16,146,558,014 0.2363% 2020 14,169,003,039 1,819,769,185 302,957,585 1,719,280,594 -181,569,809 17,829,440,594 0.2360% 116,410,913 5,205,377 Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls, 2010/11 through 2019/20 Note: Actual property value data not available in California. (1) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount by an annual calculation, to all the taxing entities within a tax rate area. (2) The City-wide Direct Tax Rate is an average, the actual tax rate for each property varies according to its tax rate area. This average tax rate is net of State Shifts of local property tax revenue to Education and net of Admin fees. CITY OF DUBLIN, CALIFORNIA Assessed Value of Taxable Property Last Ten Fiscal Years 188 This page intentionally left blank 189 CITY OF DUBLIN, CALIFORNIA Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate per $100 of assessed value) City Direct Rates Castro Valley Chabot-Las Positas Dublin East Bay Fiscal Basic Total Bay Area Unified Community Unified Regional Year Levy Direct Rapid Transit School Bonds College Boards Bonds 1A & B Park 2010-11 1.00000 0.23860 0.00570 0.10230 0.01950 0.08160 0.01080 2011-12 1.00000 0.23860 0.00310 0.10040 0.02110 0.10110 0.00840 2012-13 1.00000 0.23860 0.00410 0.09890 0.02140 0.09700 0.00710 2013-14 1.00000 0.23796 0.00430 0.09240 0.02190 0.09930 0.00510 2014-15 1.00000 0.23730 0.00750 0.08510 0.02140 0.11470 0.00780 2015-16 1.00000 0.23669 0.00450 0.08520 0.02170 0.10770 0.00850 2016-17 1.00000 0.23650 0.00260 0.00000 0.01980 0.07670 0.00670 2017-18 1.00000 0.00236 0.00800 0.00000 0.02460 0.09720 0.00320 2018-19 1.00000 0.00236 0.00700 0.00000 0.04430 0.14520 0.00570 2019-20 1.00000 0.00236 0.01200 0.00000 0.04220 0.14600 0.00600 Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls, 2010/11 through 2019/20 (1) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. These are voter approved levies in addition to the 1% State levy. (2) The City's share of the 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Overlapping Rates (1) 190 Flood Zone 7 Livermore Valley Total City's Share State Water Joint Unified County Wide Direct & Overlapping of 1% Levy per Bonds School Board Go Bond Tax Rate Proposition 13 0.02030 0.06740 0.00000 1.30760 0.2818 0.02500 0.06350 0.00000 1.32260 0.2818 0.03070 0.06270 0.00000 1.32190 0.2818 0.02280 0.06070 0.00000 1.30650 0.2818 0.02570 0.05960 0.00000 1.32180 0.2818 0.02500 0.04970 0.00000 1.30230 0.2817 0.03430 0.00000 0.00000 1.14010 0.2818 0.03330 0.00000 0.00000 1.16630 0.2818 0.03320 0.00000 0.01120 1.24660 0.2818 0.03090 0.00000 0.01080 1.24790 0.2818 191 CITY OF DUBLIN, CALIFORNIA Principal Property Tax Payers Current year and Nine Years Ago 2019-20 2010-11 Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Kaiser Foundation Hospitals $ 255,587,787 1 1.43% Avalon Dublin Station II, LP 171,932,223 2 0.96% GH Pacvest, LLC 139,433,300 3 0.78% 4800 Tassajara Road Apts Invest LLC 124,593,791 4 0.70% Dublin Station Owner, LLC 119,276,036 5 0.67% Dublin Crossing, LLC 114,106,648 6 0.64% Dublin Corporate Center Owner, LLC 113,299,560 7 0.63% Ross Dress for Less, Inc 112,215,466 8 0.63% Essex Dublin Owner, LP 107,625,352 9 0.60% Bere Island Properties I, LLC 96,092,894 10 0.54% Trust NOIP Dublin, LP $ 103,000,000 1 1.26% Dublin Corporate Center, LP 85,500,000 2 1.04% Avalon at Dublin Station, LP 84,406,681 3 1.03% Bere Island Properties I, LLC 83,224,142 4 1.02% 4800 Tassajara Road Apts Invest LLC 78,150,770 5 0.95% Tishman Speyer Archstone Smith Emerald 77,368,249 6 0.94% DR Horton Bay, Inc 73,781,334 7 0.90% BIT Holding Sixty-Three 71,208,094 8 0.87% Kaiser Foundation Hospitals 62,784,487 9 0.77% BJF ROF Jordan Ranch LLC 49,352,629 10 0.60% Subtotal $ 1,354,163,057 7.58% $ 768,776,386 9.38% Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls 192 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 June 30 Tax Levy Collections Collected Collections Collections of Levy 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% 2018 41,708,007 41,594,518 99.73% 362,487 41,957,005 100.60% 2019 45,499,386 45,357,078 99.69% 330,947 45,688,025 100.41% 2020 50,245,147 50,102,147 99.72% 379,250 50,481,396 100.47% Source: Alameda County Assessor Office 193 Total Property Tax Assessed Value of Taxable Property Percentage Outstanding Debt Applicable to Estimated Share of 6/30/2020 City of Dublin (1)Overlapping Debt OVERLAPPING TAX AND ASSESSMENT DEBT: Alameda County 218,000,000$ 5.769% 12,576,420$ Bay Area Rapid Transit District 1,282,740,000 2.225% 28,540,965 Chabot-Las Positas Community College District 626,920,000 13.427% 84,176,548 Dublin Joint Unified School District 536,817,544 99.978% 536,699,444 East Bay Regional Park District 155,835,000 3.483% 5,427,733 City of Dublin Community Facilities District No. 2015-1 70,395,000 100.00% 70,395,000 California Statewide Communities Development Authority 1915 Act Bonds 859,511 100.00% 859,511 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 738,675,621$ DIRECT AND OVERLAPPING GENERAL FUND DEBT Alameda County General Fund Obligations 830,130,000 5.769% 47,890,200 Alameda-Contra Costa Transit District Certificates of Participation 11,655,000 0.188% 21,911 City of Dublin Loans Payable 1,368,186 100.00% 1,368,186 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 49,280,297$ TOTAL DIRECT DEBT 1,368,186$ TOTAL OVERLAPPING DEBT 786,587,732$ COMBINED TOTAL DEBT (2)787,955,918$ RATIOS TO ASSESSED VALUATION: 4.13% Total Direct Debt ($1,368,186)..………..…………………………0.01% Combined Total Debt….………….…….…………………………4.40% Source: California Municipal Statistics, Inc. Notes: (1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue and mortgage revenue and non-bonded capital lease obligations CITY OF DUBLIN, CALIFORNIA Direct and Overlapping Debt June 30, 2020 Total Overlapping Tax and Assessment Debt..…………………… 194 This page intentionally left blank 195 2010-11 2011-2012 2012-13 2013-14 Debt limit 311,498,340$ 318,144,981$ 333,865,688$ 361,622,926$ Total net debt applicable to limit - - - - Legal debt margin 311,498,340$ 318,144,981$ 333,865,688$ 361,622,926$ Total net debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% (1) Source: City of Dublin Administrative Services Department (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. Fiscal Year (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) CITY OF DUBLIN, CALIFORNIA Legal Debt Margin Information Last Ten Fiscal Years 196 Legal Debt Margin Calculation for Fiscal Year 2019-20 Assessed value (net) - June 30, 2020 (1) $ 17,829,440,594 Debt limit: 15% of assessed value 2,674,416,089 Less total bonded debt, general obligation - Legal debt margin (2) $ 2,674,416,089 Conversion Percentage for Calculation of Debt Limit (3) 25% $ 668,604,022 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 416,774,836$ 469,892,998$ 512,779,367$ 555,041,084$ 605,495,926$ 668,604,022$ - - - - - - 416,774,836$ 469,892,998$ 512,779,367$ 555,041,084$ 605,495,926$ 668,604,022$ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Fiscal Year 197 CITY OF DUBLIN, CALIFORNIA Demographic And Economic Statistics Last Ten Calendar Years (Dollars in Thousands) Per Capita Rank in Size Fiscal City Personal Personal Unemployment of Year Population (1) Income, in thousands (1) Income (1) Rate (2) California Cities (1) 2010 45,672 1,700,094 34,823 6.9% 179 2011 46,785 1,677,944 35,865 6.3% 182 2012 49,890 1,819,688 36,474 4.2% 175 2013 53,462 2,321,908 43,431 3.5% 181 2014 54,695 2,333,289 42,660 3.6% 185 2015 57,349 2,562,296 44,679 2.9% 156 2016 59,686 2,836,816 47,529 2.7% 153 2017 60,939 3,101,125 50,889 2.8% 153 2018 63,445 3,441,955 54,251 2.7% 147 2019 64,826 3,789,339 58,454 2.5% 140 Sources: (1) US Census Buraeu, most recent estimates July 1, 2019 (2) State of California, Employment Development Department March 2019 Benchmark 198 Total Number of Commercial Residential Fiscal Year Ended Building Permits Construction Value Construction Value 30-Jun Issued (1) (1) (1) Bank Deposits (2) 2011 1,471 40,005,124 165,324,045 1,281,183,000 2012 2,110 28,775,536 344,927,791 N/A 2013 2,425 21,139,964 386,984,935 N/A 2014 2,443 57,812,261 322,511,777 N/A 2015 2,068 60,793,275 295,988,465 N/A 2016 2,812 102,148,173 323,747,409 N/A 2017 2,806 177,500,725 308,916,668 N/A 2018 2,803 54,086,352 383,817,023 N/A 2019 2,350 119,498,163 272,846,465 N/A 2020 1,866 45,031,310 157,262,586 N/A Source: 1) City of Dublin Community Development Department Property Value, Construction, and Bank Deposits Last Ten Fiscal Years CITY OF DUBLIN, CALIFORNIA 2) Findley Reports, Inc Bank Deposits represents the amount of cash deposits held by financial institutions within the city annually, Jan thru Dec. 199 Estimated Estimated Number of Number of Employer Employees Rank Employees Rank United States Government & Federal Correction Institute 1,450 1 1,400 1 County of Alameda 975 4 1,165 2 Dublin Unified School District 1,096 3 1,115 3 Ross Stores Headquarters 1,100 2 1,100 4 Kaiser Permanente 600 5 510 5 Zeiss Meditec 450 6 450 6 TriNet N/A N/A 400 7 Target Stores 380 9 380 8 Patelco Credit Union 400 7 380 8 City of Dublin 400 8 332 10 Whole Foods 350 10 N/A N/A Subtotal 7,201 7,232 Total City Day Population Source: City of Dublin Economic Development Division 20202019 CITY OF DUBLIN, CALIFORNIA Principal Employers Current Year and Prior Year (Dollars in thousands) 200 This page intentionally left blank 201 2011 2012 2013 2014 2015 Function General government City Manager 6.00 6.50 6.50 6.50 6.34 Administrative Services 11.50 11.50 11.50 11.75 11.75 Economic Development 1.50 2.50 2.50 3.50 3.50 Other Services 3.32 3.57 3.09 3.45 3.95 Public Safety Police 59.00 59.00 59.00 60.00 59.00 Fire 39.74 39.64 39.64 39.64 39.64 Disaster Preparedness 0.46 0.46 0.59 0.59 0.33 Transportation Public Works 5.45 5.45 5.45 5.48 5.88 Streets Maintenance 9.85 9.85 10.08 10.32 11.60 Engineering 8.00 9.00 9.00 9.00 8.00 Health and welfare Environmental 2.50 3.00 2.59 2.59 1.50 Housing 3.00 2.25 2.25 2.50 2.50 Waste Management 0.33 0.33 1.08 1.08 1.83 Culture and leisure services Parks Community Services 15.60 15.55 16.25 15.50 16.81 Park Maintenance 8.94 9.36 10.10 11.65 13.07 Parks/ Facilities Management 2.00 2.25 2.25 3.45 4.30 Library Services 0.42 0.42 0.37 0.37 0.38 Heritage & Cultural Arts 3.59 3.26 3.70 5.92 4.40 Community Development Planning & Building 19.25 20.95 22.45 23.45 24.45 Total 200.45 204.84 208.39 216.74 219.23 Source: City of Dublin Administrative Services Department Note: Include Full Time, Part Time, Temporary, and Contract Employees CITY OF DUBLIN CALIFORNIA Full-Time Equivalent City and Contract Government Employees by Function Last Ten Fiscal Years 202 2016 2017 2018 2019 2020 6.34 7.34 7.34 5.90 5.95 11.75 11.75 11.75 12.00 12.00 3.50 3.50 3.50 3.80 3.80 4.20 4.93 4.54 5.75 6.35 61.00 61.00 63.00 65.00 67.00 39.91 39.99 39.99 39.58 39.58 0.33 0.33 0.33 0.25 0.25 5.45 6.45 6.45 6.35 6.35 14.10 16.25 17.31 22.27 22.27 8.00 10.75 10.75 9.25 9.25 1.50 3.00 3.00 2.60 2.60 2.56 1.75 1.75 1.90 1.90 1.83 0.33 0.33 0.35 0.35 16.10 17.80 17.80 11.99 10.63 15.55 15.68 17.45 17.27 17.27 4.96 4.74 3.92 6.11 5.22 0.38 0.42 0.42 0.00 0.00 3.50 4.30 4.30 5.00 5.00 24.64 26.39 25.91 28.38 29.14 225.60 236.70 239.84 243.75 244.91 203 Function/Program 2011 2012 2013 Police: Calls for Service 39,474 38,580 34,966 Citations Issued 9,023 9,229 8,699 Arrests 1,624 1,542 1,419 Fire: Emergency calls 2,244 2,323 2,688 Inspections 2,833 3,308 3,538 Building Plan Reviews and Consultations 498 1,319 1,492 Public Works: Bike Path Maintenance (hours) 603 625 668 Street Sign Maintenance (number of signs) 258 313 205 Curb Painting (linear feet) 5,464 6,523 6,400 Replace Street Asphalt (square feet) 57,000 26,000 37,000 Street Sweeping (curb miles) 5,294 5,519 5,901 Parks and Community Services: Museum Visitors 3,680 4,415 8,612 Afterschool Recreation (participants/day) 240 27 228 Preschool Classes Participants 628 610 571 Youth Basketball League Participants 710 729 812 Senior Center Average Daily Attendance 206 217 211 Community Development: Planning Applications 66 62 77 Building Permits 1,471 2,110 2,425 Building Inspections 11,308 15,961 26,045 Source: City of Dublin CITY OF DUBLIN CALIFORNIA Operating Indicators by Function/Program Last Ten Fiscal Years 204 2014 2015 2016 2017 2018 2019 2020 34,567 32,496 35,005 38,688 38,568 38,480 34,643 8,530 7,175 7,087 7,164 7,051 7,968 5,806 1,934 1,091 1,225 1,315 1,653 1,821 1,510 2,859 2,667 2,734 2,848 3,247 3,245 3,443 3,664 3,948 4,304 4,141 4,034 4,284 2,964 1,561 1,072 1,633 1,654 1,195 797 490 749 416 799 695 742 969 863 426 368 510 359 1,838 2,569 546 5,808 32,512 2,922 3,846 3,216 3,893 14,502 18,112 15,800 31,000 73,436 75,087 1,636,012 2,270,000 5,931 5,953 5,993 6,026 8,033 7,936 7,210 8,256 5,272 3,591 3,525 3,422 2,757 2,011 322 364 363 367 405 416 334 430 327 335 158 131 160 185 911 994 1,074 1,156 1,035 1,075 792 220 233 236 274 279 299 245 59 56 52 58 48 31 40 2,443 2,068 2,812 2,806 2,803 2,350 1,866 22,345 20,197 20,784 25,186 25,574 20,951 13,339 205 2011 2012 2013 Function/Program Public safety: Police stations 1 1 1 Fire stations 3 3 3 Public works: Street Lights 3,780 4,281 4,354 Miles of Streets 113 115 116 Miles of curbs 223 237 242 Traffic Signals 85 89 91 City Street Trees 7,418 7,268 7,408 City Landscape (acres) 57 65 67 Parks and recreation: Number of Community Facilities 7 7 7 Number of City Parks 18 18 18 Acres of City Parks 209 209 209 Acres of Open Space 125 125 125 Source: City of Dublin CITY OF DUBLIN, CALIFORNIA Capital Asset Statistics by Function/Program Last Ten Fiscal Years 206 2014 2015 2016 2017 2018 2019 2020 1 1 1 1 1 1 1 3 3 3 3 3 3 3 4,513 4,520 4,530 4,540 4,631 4,631 4,736 120 120 120 127 128 151 151 248 248 248 254 256 305 305 93 93 94 95 97 98 98 7,477 7,521 8,556 8,526 8,776 9,263 12,355 69 70 74 74 103 107 150 7 6 6 7 7 7 7 20 20 20 18 20 21 21 220 220 220 277 282 289 289 125 125 125 125 125 125 125 Fiscal Year 207 Business Name Business Category Ashley Homestore Home Furnishings Best Buy Electronics/Appliances Stores Carl Zeiss Ophthalmic Systems Health/Medical Chevrolet Motor Vehicle Dealer Dougherty Road Shell Service Station Dick's Sporting Goods Sporting Goods/Bike Store Dublin Hyundai Motor Vehicle Dealer Dublin Mazda Motor Vehicle Dealer Dublin Nissan Motor Vehicle Dealer Dublin Toyota Motor Vehicle Dealer Dublin Volkswagen Motor Vehicle Dealer Fallon Gateway Chevron Service Station Graybar Electric Electrical Equipment Hacienda Crossings Shell Service Stations HD Supply Lumber/Building Materials Henry Schein Health/Medical Honda Motor Vehicle Dealer Lowes Lumber/Building Materials Nordstrom Rack Family Apparel Pace Supply Plumbing/Electrical Supplies Safeway Grocery/Liquor Store Safeway Gas Service Stations Target Discount Department Store Tesla Motors Motor Vehicle Dealer Whole Foods Market Grocery/Liquor Store Source: City of Dublin Office of Economic Development CITY OF DUBLIN, CALIFORNIA Top 25 Sales Tax Producers 2019-20 208 General Date of Incorporation February 1, 1982 Form of Government Council/ Manager Total Population (Estimated per the California Dept. of Finance, January 1, 2020) 65,716 Number of Registered Voters 32,013 Employees, City, and Contract (Full Time Equivalent) 244.91 Area (Square Miles)14.91 Parks and Recreation Parks 21 Acres in Parks 289 Acres in Open Space 125 Public Education Elementary Schools 7 K-8 1 Middle Schools 2 High School 1 Continuation High School 1 Education Center 1 School Enrollment 12,977 Police Protection Number of Stations 1 Police Personnel (Full Time Equivalent) 67 Fire Protection Number of Stations 3 Fire Personnel (Full Time Equivalent) 39.58 Community Facilities Dublin Civic Center 1 Dublin Senior Center 1 Dublin Heritage Center 1 Dublin Public Library 1 Shannon Community Center 1 Emerald Glen Activity Center 1 The Wave (Aquatics Facility)1 Source: City of Dublin CITY OF DUBLIN, CALIFORNIA Miscellaneous Statistical Data June 30, 2020 209     City of Dublin Dublin, California Auditors’ Communication with Those Charged with Governance For the year ended June 30, 2020         December 11, 2020 To The Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin, California (City) for the year ended June 30, 2020. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. Our Responsibilities under U.S. Generally Accepted Auditing Standards and Government Auditing Standards As stated in our engagement letter dated April 17, 2020, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. As part of our audit, we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning internal control. As part of obtaining reasonable assurance about whether the financial statements are free from material misstatement, we performed tests of the City’s compliance with certain provisions of laws, regulations, contracts, and grants. However, providing an opinion on compliance with those provisions is not an objective of our audit. Planned Scope and Timing of the Audit An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit involves judgment about the number of transactions to be examined and the areas to be tested. Our audit included obtaining an understanding of the city and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. We performed the audit according to the timing previously communicated to you on the engagement letter. To The Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2     Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. 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 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:  Depreciable lives and estimated residual value of property and equipment  Investments valuations  Allowance for uncollectible accounts  Accumulated depreciation  Pension plans (actuarial assumptions)  Net Other Post-employment Benefits (OPEB) plan (actuarial assumptions) Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure(s) affecting the financial statements were:  Summary of Significant Accounting Policies  Cash and Investments  Long Term Debt  Capital Assets  Employee Retirement Plans  Other Postemployment Benefits (OPEB) Plan  Commitments and Contingencies The financial statement disclosures are neutral, consistent, and clear. To The Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3     Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has recorded all proposed adjustments. 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 the management representation letter dated December 11, 2020. 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 City’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 Matters We applied certain limited procedures to the required supplementary information (RSI) that 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 RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the combining and individual fund financial statements and budgetary comparison schedules which accompany the financial statements but are not RSI. 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 To The Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 4     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 section and statistical section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the use of City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 Measure B Funds Dublin, California Financial Statements and Independent Auditor’s Reports For the year ended June 30, 2020 City of Dublin Alameda County Transportation Commission – Measure B Funds Financial Statements For the year ended June 30, 2020 Table of Contents Page Independent Auditor’s Report .............................................................................................................................. 1 Financial Statements: Balance Sheets ..................................................................................................................................................... 5 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................................................................................. 6 Notes to Financial Statements .............................................................................................................................. 7 Supplementary Information: Budgets and Budgetary Accounting ................................................................................................................. 12 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Measure B – ACTC Streets and Roads Special Revenue Fund .................................................................. 13 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Measure B – ACTC Bikes and Pedestrians Special Revenue Fund ........................................................... 14 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...................................................................................................................... 15 Independent Auditor’s Report on Measure B Compliance ........................................................................... 17 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Report on the Financial Statements We have audited the accompanying financial statements of the Measure B Funds (Measure B Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2020 and the related notes to the financial statements. 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 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 entity’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 entity’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 opinion. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 2 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, 2020, and the changes 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 Measure B Funds and do not purport to, and do not, present fairly the financial positions of the City as of June 30, 2020, and the changes in its financial position 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 Matters Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Measure B Funds’ financial statements. The budgetary comparison information is presented for purposes of additional analysis and are not a required part of the financial statements. The budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary comparison information is fairly stated, in all material respects, in relation to the financial statements as a whole. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 3 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 11, 2020, 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 City’s internal control over financial reporting and compliance. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 4 This page intentionally left blank City of Dublin Alameda County Transportation Commission- Measure B Funds Balance Sheet ACTC ACTC Streets and Bikes and Roads Pedestrians Total ASSETS: Cash and investments 211,832$ 170,410$ 382,242$ Direct local distribution program receivables 95,537 34,745 130,282 Total assets 307,369$ 205,155$ 512,524$ LIABILITIES AND FUND BALANCES: Accounts payable and accrued liabilities -$ 2,500$ 2,500$ Total liabilities - 2,500 2,500 Fund Balances: Restricted 307,369 202,655 510,024 Total fund balances 307,369 202,655 510,024 307,369$ 205,155$ 512,524$ June 30, 2020 Total liabilities and fund balances See accompanying Notes to Financial Statements. 5 City of Dublin Alameda County Transportation Commission- Measure B Funds Statement of Revenues, Expenditures and Changes in Fund Balances ACTC ACTC Streets and Bikes and Roads Pedestrians Total REVENUES: Measure B revenue 577,055$ 209,866$ 786,921$ Interest Income 8,944 4,086 13,030 Total revenues 585,999 213,952 799,951 EXPENDITURES: Bikes and Pedestrians - 7,578 7,578 Streets and Roads 822,068 319,885 1,141,953 Total expenditures 822,068 327,463 1,149,531 EXPENDITURES (236,069) (113,511) (349,580) FUND BALANCES: Beginning of year 543,438 316,166 859,604 End of year 307,369$ 202,655$ 510,024$ For the year ended June 30, 2020 REVENUES OVER (UNDER) See accompanying Notes to Financial Statements. 6 City of Dublin Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements, Continued For the year ended June 30, 2020 7 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 are used to account for the City’s share of revenues earned and expenditures incurred under the City’s local streets and roads, and bike and pedestrian programs. The accompanying financial statements are for Measure B Funds only and are not intended to fairly present the financial position or results of operations of the City. B. Basis of Accounting and Measurement Focus 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 sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. C. Fund Accounting The operations of the Measure B Funds are accounted for in separate special revenue funds. The funds are separate accounting entities with a set of self-balancing accounts which comprise their assets, liabilities, fund equity, revenues, and expenses. D. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 expenditures during the reporting period. Actual results could differ from those estimates. 2. MEASURE B FUNDS Under Measure B, approved by the voters of Alameda County in 1986 (ACTA Old Measure B) and in 2000, (ACTC 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. Major projects funded by Measure B were as follows: Streets and Roads Program – To improve, repair, and overlay city streets. Bike and Pedestrian Program – To provide sidewalk and American Disability Act (ADA) improvements and to implement the bikeway network. City of Dublin Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements, Continued For the year ended June 30, 2020 8 3. CASH AND INVESTMENTS Measure B funds are pooled with the City’s cash and investments in order to generate optimum interest income. The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. Measure B Funds had the following cash and investments at June 30, 2020: Cash and Investments $ 382,242 A. Investments Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized: City of Dublin Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements, Continued For the year ended June 30, 2020 9 3. CASH AND INVESTMENTS, Continued A. Investments, Continued In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated at fair value using the aggregate method in all funds and component units. The City’s investments are carried at fair market value as required by generally accepted accounting principles. The City accounts for all changes in fair value that occurred during the year and are reflected in the fund balance for the fiscal year. These investment value changes are unrealized since the City’s policy is to generally hold and buy investments until maturity dates. B. Risk Disclosures Interest Risk – Interest rate risk is the fluctuation in fair value of investments due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investment not to exceed five years. Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its rating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks. Custodial Credit Risk – The custodial credit risk for an investment is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk. C. Local Agency Investment Fund The City is a voluntary 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’s investments with LAIF at June 30, 2020, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following: Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options. Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2020, the City invested in LAIF, which had invested 3.37% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 1.77% in the previous year. The LAIF fair value factor of 1.004912795 was used to calculate the fair value of the investments in LAIF. City of Dublin Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements, Continued For the year ended June 30, 2020 10 4. DIRECT LOCAL DISTRIBUTION PROGRAM RECEIVABLES The receivables represent the Measure B sales tax revenues for the fiscal year received from the Alameda County Transportation Commission after June 30, 2020. 5. COMMITMENTS AND CONTINGENCIES The City participates in several grant programs. These programs are 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. 11 SUPPLEMENTARY INFORMATION City of Dublin Alameda County Transportation Commission – Measure B Funds Supplementary Information For the year ended June 30, 2020 12 1. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: x 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. x The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution. x During the fiscal year, 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. x 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. x Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. x 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. City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B - ACTC Streets and Roads Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Measure B revenue 500,000$ 500,000$ 577,055$ 77,055$ Interest Income 354 354 8,944 8,590 Total revenues 500,354 500,354 585,999 85,645 EXPENDITURES: Streets and Roads 506,640 915,675 822,068 93,607 Total expenditures 506,640 915,675 822,068 93,607 Net change in fund balance (6,286)$ (415,321)$ (236,069) 179,252$ FUND BALANCE: Beginning of year 543,438 End of year 307,369$ Budgeted Amounts For the year ended June 30, 2020 13 City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B - ACTC Bikes and Pedestrians Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Measure B revenue 170,000$ 170,000$ 209,866$ 39,866$ Interest Income 875 875 4,086 3,211 Total revenues 170,875 170,875 213,952 43,077 EXPENDITURES: Bikes and Pedestrians 17,961 17,961 7,578 10,383 Streets and Roads 123,000 412,782 319,885 92,897 Total expenditures 140,961 430,743 327,463 103,280 Net change in fund balance 29,914 (259,868) (113,511) 146,357 FUND BALANCE: Beginning of year 316,166 End of year 202,655$ Budgeted Amounts For the year ended June 30, 2020 14 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of City Council of the City of Dublin 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 Measure B Funds (Measure B Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2020, and the related notes to the financial statements, and have issued our report thereon dated December 11, 2020. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’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. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Measure B Funds’ 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. 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. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 16 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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 INDEPENDENT AUDITOR’S REPORT ON MEASURE B COMPLIANCE To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Compliance We have audited the City of Dublin’s (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission applicable to the City’s Measure B 2000 Funds (Measure B Funds) for the year ended June 30, 2020. Management’s Responsibility Compliance with the requirements referred to above is the responsibility of the City’s management. Auditor’s Responsibility Our responsibility is to express an opinion on the City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Audit Standards issued by the Comptroller General of the United States; and the agreement between the City and Alameda County Transportation Commission. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a material effect on the Measure B Funds occurred. An audit also 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. Our audit does not provide a legal determination of the City’s compliance with those requirements. Opinion In our opinion the City complied, in all material respects, with the compliance requirements referred to above that are applicable to the Measure B Funds for the year ended June 30, 2020. Other Matter Under Measure B, approved by the voters of Alameda County in 2000, the City has received under Alameda County Transportation Improvement Authority Measure B a total of 12 months of revenue from July 2019 through June 2020. The Local Street and Roads program has received $577,055 and the Bike and Pedestrian program has received $209,866. This financial statement reflects twelve months of revenue for the Paratransit, Local Streets and Roads, and the Bike and Pedestrian programs. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 18 Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit, we considered the City’s internal control over compliance to determine the auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance 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, noncompliance 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 compliance requirement will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the agreement between the City and Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 Measure F Alameda County Vehicle Registration Fee Fund Dublin, California Financial Statements and Independent Auditor’s Reports For the year ended June 30, 2020 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Financial Statements For the year ended June 30, 2020 Table of Contents Page Independent Auditor’s Report ............................................................................................................................. 1 Financial Statements: Balance Sheet ...................................................................................................................................................... 3 Statement of Revenues, Expenditures and Changes in Fund Balance .............................................................................................................................. 4 Notes to Financial Statements ............................................................................................................................. 5 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..................................................................................................................... 11 Independent Auditor’s Report on Measure F Compliance ........................................................................... 13 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Report on the Financial Statements We have audited the accompanying financial statements of the Measure F Alameda County Vehicle Registration Fee Fund (VRF Fund) of the City of Dublin, California (City), as of and for the year ended June 30, 2020 and the related notes to the financial statements. 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 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 entity’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 entity’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. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the VRF Fund of the City as of June 30, 2020, and the changes 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 VRF Fund and do not purport to, and do not, present fairly the financial positions of the City as of June 30, 2020, and the changes in its financial position 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 December 11, 2020, 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 City’s internal control over financial reporting and compliance. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Balance Sheet June 30, 2020 ASSETS: Cash and investments 239,480$ Direct local distribution program receivables 51,206 Total assets 290,686$ LIABILITIES AND FUND BALANCES: Other accrued liabilities 6,130$ Total liabilities 6,130 Fund Balance: Restricted 284,556 Total fund balance 284,556 Total liabilities and fund balance 290,686$ See accompanying Notes to Financial Statements. 3 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Statement of Revenues, Expenditures and Changes in Fund Balance REVENUES: Measure F revenues 289,579$ Use of money and property 5,477 Total revenues 295,056 EXPENDITURES: Contractual services 205,986 Streets and roads 51,737 Total expenditures 257,723 EXPENDITURES 37,333 FUND BALANCE: Beginning of year 247,223 End of year 284,556$ For the year ended June 30, 2020 REVENUES OVER See accompanying Notes to Financial Statements. 4 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2020 5 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity All transactions of the Measure F Alameda County Vehicle Registration Fees are reported in a special revenue fund (VRF Fund) of the City of Dublin, California (City). The special revenue fund is included as part of the State Construction and Maintenance fund in the basic financial statements of the City. The Fund is used to account for the City’s revenues earned and expenditures incurred under the City’s various street maintenance and construction projects. The accompanying financial statements are for the VRF Fund only and are not intended to fairly present the financial position of the City. 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 sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. C. Fund Accounting The operations of the VRF Fund are accounted for as part of the State Construction and Maintenance Fund. Funds are separate accounting entities with a set of self-balancing accounts which comprise their assets, liabilities, fund equity, revenues, and expenditures. D. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 expenditures during the reporting period. Actual results could differ from those estimates. E. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2020 6 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Cash, Cash Equivalents, and Investments, Continued In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas: ƒInterest Rate Risk ƒCredit Risk ‰Overall ‰Custodial Credit Risk ‰Concentrations of Credit Risk In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and Asset-Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset- Backed Securities are subject to market risk as to change in interest rates. F. Revenues and Receivables During the course of normal operations, the fund carries various receivable balances for intergovernmental revenue and interest. Revenues are recorded when received in cash, except revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the fund, are Measure F vehicle registration fees. City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2020 7 2. MEASURE F ALAMEDA COUNTY VEHICLE REGISTRATION FEES The Measure F Alameda County Vehicle Registration Fee (VRF) 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: x Local Road Improvement and Repair Program (60 percent) x Transit for Congestion Relief (25 percent) x Local Transportation Technology (10 percent) x Pedestrian and Bicyclist Access and Safety Program (5 percent) 3. CASH AND INVESTMENTS The VRF Fund’s cash and investments are pooled with the City’s cash and investments in order to generate optimum interest income. The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. VRF Fund had the following cash and investments at June 30, 2020: Cash and Investments $ 239,480 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2020 8 3. CASH AND INVESTMENTS, Continued A. Investments 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. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated at fair value using the aggregate method in all funds and component units. The City’s investments are carried at fair market value as required by generally accepted accounting principles. The City accounts for all changes in fair value that occurred during the year and are reflected in the fund balance for the fiscal year. These investment value changes are unrealized since the City’s policy is to hold and buy investments until maturity dates. City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2020 9 3. CASH AND INVESTMENTS, Continued B. Risk Disclosures Interest Risk – Interest rate risk is the fluctuation in fair value of investment due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investment not to exceed five years. Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its rating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks. Custodial Credit Risk – The custodial credit risk for an investment is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk. C. Local Agency Investment Fund The City is a voluntary 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’s investments with LAIF at June 30, 2020, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following: Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options. Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2020, the City had invested in LAIF, which had invested 3.37% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 1.77% in the previous year. The LAIF fair value factor of 1.004912795 was used to calculate the fair value of the investments in LAIF. 4. DIRECT LOCAL DISTRIBUTION PROGRAM RECEIVABLES The receivables represent the Measure F VRF revenues for the fiscal year received from the Alameda County Transportation Commission after June 30, 2020. 5. COMMITMENTS AND CONTINGENCIES The City participates in several grant programs. These programs are subject to any 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. 10 This page intentionally left blank. INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of City Council of the City of Dublin 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 Measure F Alameda County Vehicle Registration Fee Fund (VRF Fund) of the City of Dublin, California (City), as of and for the year ended June 30, 2020, and the related notes to the financial statements, and have issued our report thereon dated December 11, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’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. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 12 Compliance and Other Matters As part of obtaining reasonable assurance about whether the VRF 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. 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. 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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 INDEPENDENT AUDITOR’S REPORT ON MEASURE F COMPLIANCE To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Compliance We have audited the City of Dublin’s (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission applicable to the City’s Measure F Alameda County Vehicle Registration Fee Fund (VRF Fund) for the year ended June 30, 2020. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to the VRF Fund. Auditor’s Responsibility Our responsibility is to express an opinion on City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the agreement between the City and Alameda County Transportation Commission applicable to Measure F Alameda County Vehicle Registration Fee Fund. Those standards and the agreement 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 the VRF Fund. 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 VRF Fund. However, our audit does not provide a legal determination of the City’s compliance. Opinion on Measure F Funds In our opinion, the City complied, in all material respects, with the types of compliance requirements related to the agreement between the City and Alameda County Transportation Commission applicable to the VRF Fund for the year ended June 30, 2020. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 14 Report on Internal Control Over Compliance Management of City 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 to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of 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 a federal 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 a federal 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 a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the agreement between the City and Alameda County Transportation Commission applicable to the VRF Fund. Accordingly, this report is not suitable for any other purpose. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 Measure BB Funds Dublin, California Financial Statements and Independent Auditor’s Reports For the year ended June 30, 2020 City of Dublin Alameda County Transportation Commission – Measure BB Funds Financial Statements For the year ended June 30, 2020 Table of Contents Page Independent Auditor’s Report ............................................................................................................................. 1 Financial Statements: Balance Sheets ...................................................................................................................................................... 5 Statement of Revenues, Expenditures and Changes in Fund Balances .............................................................................................................................. 6 Notes to Financial Statements ............................................................................................................................... 7 Supplementary Information: Budgets and Budgetary Accounting .................................................................................................................. 12 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Measure BB – ACTC Streets and Roads Special Revenue Fund ................................................................. 13 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Measure BB – ACTC Bikes and Pedestrians Special Revenue Fund .......................................................... 14 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................................................................................................................... 15 Independent Auditor’s Report on Measure BB Compliance ......................................................................... 17 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Report on the Financial Statements We have audited the accompanying financial statements of the Measure BB Funds (Measure BB Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2020 and the related notes to the financial statements. 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 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 entity’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 entity’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. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure BB Funds of the City as of June 30, 2020, and the changes 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 Measure BB Funds and do not purport to, and do not, present fairly the financial positions of the City as of June 30, 2020, and the changes in its financial position 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 Matters Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Measure BB Funds’ financial statements. The budgetary comparison information is presented for purposes of additional analysis and are not a required part of the financial statements. The budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary comparison information is fairly stated, in all material respects, in relation to the financial statements as a whole. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 3 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 11, 2020, 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 City’s internal control over financial reporting and compliance. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 4 This page intentionally left blank City of Dublin Alameda County Transportation Commission- Measure BB Funds Balance Sheets June 30, 2020 ACTC ACTC Streets and Bikes and Roads Pedestrians Total ASSETS: Cash and investments 391,482$ 169,782$ 561,264$ Direct local distribution program receivables 85,615 28,309 113,924 Total assets 477,097$ 198,091$ 675,188$ FUND BALANCES: Restricted 477,097 198,091 675,188 Total fund balances 477,097 198,091 675,188 Total fund balances 477,097$ 198,091$ 675,188$ See accompanying Notes to Financial Statements. 5 City of Dublin Alameda County Transportation Commission- Measure BB Funds Statement of Revenues, Expenditures and Changes in Fund Balances ACTC ACTC Streets and Bikes and Roads Pedestrians Total REVENUES: Measure BB revenue 516,735$ 170,864$ 687,599$ Use of money and property 7,848 3,388 11,236 Total revenues 524,583 174,252 698,835 EXPENDITURES: Bikes and Pedestrians - 20,000 20,000 Streets and Roads 354,100 161,041 515,141 Total expenditures 354,100 181,041 535,141 EXPENDITURES 170,483 (6,789) 163,694 FUND BALANCES: Beginning of year 306,614 204,880 511,494 End of year 477,097$ 198,091$ 675,188$ For the year ended June 30, 2020 REVENUES OVER (UNDER) See accompanying Notes to Financial Statements. 6 City of Dublin Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements, Continued For the year ended June 30, 2020 7 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity All transactions of the Alameda County Transportation Commission – Measure BB Funds (Measure BB 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 BB Funds are used to account for the City’s share of revenues earned and expenditures incurred under the City’s paratransit, local streets and roads, and bike and pedestrian programs. The accompanying financial statements are for Measure BB Funds only and are not intended to fairly present the financial position or results of operations of the City. B. Basis of Accounting and Measurement Focus 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 sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. C. Fund Accounting The operations of the Measure BB Funds are accounted for in separate special revenue funds. The funds are separate accounting entities with a set of self-balancing accounts which comprise their assets, liabilities, fund equity, revenues, and expenses. D. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 expenditures during the reporting period. Actual results could differ from those estimates. 2. MEASURE BB FUNDS Under Measure BB, approved by the voters of Alameda County in 2014, 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. Major projects funded by Measure BB were as follows: Streets and Roads Program – To improve, repair, and overlay city streets. Bike and Pedestrian Program – To provide sidewalk and American Disability Act (ADA) improvements and to implement the bikeway network. City of Dublin Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements, Continued For the year ended June 30, 2020 8 3. CASH AND INVESTMENTS Measure BB funds are pooled with the City’s cash and investments in order to generate optimum interest income. The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. Measure BB Funds had the following cash and investments at June 30, 2020: Cash and Investments $561,264 A. Investments 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. City of Dublin Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements, Continued For the year ended June 30, 2020 9 3. CASH AND INVESTMENTS, Continued A. Investments, Continued In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated at fair value using the aggregate method in all funds and component units. The City’s investments are carried at fair market value as required by generally accepted accounting principles. The City accounts for all changes in fair value that occurred during the year and are reflected in the fund balance for the fiscal year. These investment value changes are unrealized since the City’s policy is to generally hold and buy investments until maturity dates. B. Risk Disclosures Interest Risk – Interest rate risk is the fluctuation in fair value of investments due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investment not to exceed five years. Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its rating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks. Custodial Credit Risk – The custodial credit risk for an investment is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk. C. Local Agency Investment Fund The City is a voluntary 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’s investments with LAIF at June 30, 2020, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following: Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options. Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2020, the City had invested in LAIF, which had invested 3.37% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 1.77% in the previous year. The LAIF fair value factor of 1.004912795 was used to calculate the fair value of the investments in LAIF. City of Dublin Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements, Continued For the year ended June 30, 2020 10 4. DIRECT LOCAL DISTRIBUTION FROGRAM RECEIVABLES The receivables represent the Measure BB sales tax revenues for the fiscal year received from the Alameda County Transportation Commission after June 30, 2020. 5. COMMITMENTS AND CONTINGENCIES The City participates in several grant programs. These programs are 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. 11 SUPPLEMENTARY INFORMATION City of Dublin Alameda County Transportation Commission – Measure BB Funds Supplementary Information For the year ended June 30, 2020 12 1. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: x 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. x The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution. x During the fiscal year, 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. x 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. x Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. x 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. City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB - ACTC Streets and Roads Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Measure BB revenue 450,000$ 450,000$ 516,735$ 66,735$ Use of money and property 1,355 1,355 7,848 6,493 Total revenues 451,355 451,355 524,583 73,228 EXPENDITURES: Streets and Roads 442,000 639,619 354,100 285,519 Total expenditures 442,000 639,619 354,100 285,519 Net change in fund balance 9,355$ (188,264)$ 170,483 358,747$ FUND BALANCE: Beginning of year 306,614 End of year 477,097$ Budgeted Amounts For the year ended June 30, 2020 13 City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB - ACTC Bikes and Pedestrians Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Measure BB revenue 140,000$ 140,000$ 170,864$ 30,864$ Use of money and property 2,041 2,041 3,388 1,347 Total revenues 142,041 142,041 174,252 32,211 EXPENDITURES: Bikes and Pedestrians 20,000 20,000 20,000 - Streets and Roads 100,000 253,541 161,041 92,500 Total expenditures 120,000 273,541 181,041 92,500 Net change in fund balance 22,041$ (131,500)$ (6,789) 124,711$ FUND BALANCE: Beginning of year 204,880 End of year 198,091$ Budgeted Amounts For the year ended June 30, 2020 14 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of City Council of the City of Dublin 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 Measure BB Funds (Measure BB Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2020, and the related notes to the financial statements, and have issued our report thereon dated December 11, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting in relation to Measure BB Funds (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 City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’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. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 16 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Measure BB Funds’ 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. 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. 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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 INDEPENDENT AUDITOR’S REPORT ON MEASURE BB COMPLIANCE To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Compliance We have audited the City of Dublin’s (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission applicable to the City’s Measure BB Funds (Measure BB Funds) for the year ended June 30, 2020. Management’s Responsibility Management of the City is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its Measure BB Funds. Auditor’s Responsibility Our responsibility is to express an opinion on City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the agreement between the City and Alameda County Transportation Commission applicable to Measure BB. Those standards and the agreement 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 the Measure BB Funds. 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 Measure BB Funds. However, our audit does not provide a legal determination of the City’s compliance. Opinion In our opinion, the City complied, in all material respects, with the types of compliance requirements related to the agreement between the City and Alameda County Transportation Commission applicable to Measure BB for the year ended June 30, 2020. Other Matter Under Measure BB, approved by the voters of Alameda County in 2014, the City has received a total of 12 months of revenue from July 2019 through June 2020. The Local Street and Roads program has received $516,735, and the Bike and Pedestrian program has received $170,864. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 18 Internal Control Over Compliance Management of City 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 to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of 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 a federal 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 a federal 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 a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of agreement between the City and Alameda County Transportation Commission applicable to Measure BB. Accordingly, this report is not suitable for any other purpose. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 Transportation Development Act Fund Dublin, California Financial Statements and Independent Auditor’s Reports For the year ended June 30, 2020 City of Dublin Transportation Development Act Fund Financial Statements For the year ended June 30, 2020 Table of Contents Page Independent Auditor’s Report ................................................................................................................................. 1 Financial Statements: Balance Sheet .......................................................................................................................................................... 3 Statements of Revenues, Expenditures and Changes in Fund Balances ............................................................................................................................. 4 Notes to Financial Statements ............................................................................................................................. 5 Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................ 7 Independent Auditor’s Report on Transportation Development Act Funds Compliance .................................................................................. 9 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Report on the Financial Statements We have audited the accompanying financial statements of the Transportation Development Act Fund (TDA Fund) of the City of Dublin, California (City), as of and for the year ended June 30, 2020, and the related notes to the financial statements. 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 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 entity’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 entity’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. To the Honorable Mayor and Members of City Council of the City Dublin Dublin, California Page 2 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the TDA Fund of the City as of June 30, 2020, and the changes 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 TDA Fund and do not purport to, and do not, present fairly the financial positions of the City as of June 30, 2020, and the changes in its financial position 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 December 11, 2020, 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 City’s internal control over financial reporting and compliance. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 City of Dublin Transportation Development Act Fund Balance Sheet June 30, 2020 2020 ASSETS Intergovernmental receivables 72,503$ Total assets 72,503$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Due to City of Dublin 71,773$ Total liabilities 71,773 Deferred inflows of resources: Unavailable revenues 72,503 Fund Balances: Unassigned (71,773) Total liabilities, deferred inflows of resources, and fund balances (71,773)$ See accompanying Notes to Financial Statements. 3 City of Dublin Transportation Development Act Fund Statements of Revenues, Expenditures and Changes in Fund Balances For the year ended June 30, 2020 2020 Revenues: TDA Revenues -$ Total Revenues - Expenditures: Citywide Bicycle and Pedestrians Improvements 72,503 Total Expenditures 72,503 Net change in fund balances (72,503) Fund Balances: Beginning of year 730 End of year (71,773)$ See accompanying Notes to Financial Statements. 4 City of Dublin Transportation Development Act Fund Notes to Financial Statements For the year ended June 30, 2020 5 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Dublin, California (City) has received funds under the Transportation Development Act (TDA), Article 3.0 which provides funding for the Update Bike and Pedestrian Master Plan project. The project is funded by the Metropolitan Transportation Commission (MTC). All transactions of the Transportation Development Act Fund (TDA Fund) of the City are included as a separate capital project fund in the basic financial statements of the City. The financial statements are intended to present the TDA Fund, and not the financial position and the changes in fund balances of the City as a whole. B. Basis of Accounting and Measurement Focus The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available (generally 60 days after year-end), 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 sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. C. Fund Accounting The operations of the TDA Fund are accounted for in a separate capital projects fund. The fund is a separate accounting entity with a set of self-balancing accounts which comprise its assets, liabilities, fund equity, revenues, and expenses. D. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 expenditures during the reporting period. Actual results could differ from those estimates. City of Dublin Transportation Development Act Fund Notes to Financial Statements For the year ended June 30, 2020 6 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Receivables During the course of normal operations, the fund carries various receivable balances for unreimbursed eligible TDA expenditures. F. Deferred inflows of resources In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. G. Fund balance The TDA fund balance is restricted by third party to be used in accordance with the Transportation Development Act (TDA). The fund had a deficit balance and reported the fund balance as unassigned as of June 30, 2020. The TDA funds are distributed on a reimbursement basis for which a claim has yet to be filed, which resulted in the fund having a deficit balance. INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of City Council of the City of Dublin 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 Fund (TDA Fund) of the City of Dublin, California (City), as of and for the year ended June 30, 2020, and the related notes to the financial statements, and have issued our report thereon dated December 11, 2020. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting in relation to the TDA Fund (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 City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’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. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page Two 8 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. 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. 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 entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 INDEPENDENT AUDITOR’S REPORT ON TRANSPORTATION DEVELOPMENT ACT FUNDS COMPLIANCE To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Compliance We have audited the City of Dublin’s (City) compliance with the types of compliance requirements described in Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission applicable to the City’s Transportation Development Act Fund (TDA Fund) for the year ended June 30, 2020. Management’s Responsibility Compliance with the requirements referred to above is the responsibility of the City’s management. Auditor’s Responsibility Our responsibility is to express an opinion on the City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Audit Standards issued by the Comptroller General of the United States; Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a material effect on the TDA Fund occurred. An audit also 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. Our audit does not provide a legal determination of the City’s compliance with those requirements. Opinion In our opinion the City complied, in all material respects, with the compliance requirements referred to above that are applicable to the Transportation Development Act funds for the year ended June 30, 2020. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California 10 Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit, we considered the City’s internal control over compliance to determine the auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance 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, noncompliance 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 compliance requirement will not be prevented, or detected and corrected, on a timely basis. 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 that might be deficiencies, significant deficiencies, or material weaknesses in internal control over compliance. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. 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 Act. Accordingly, this report is not suitable for any other purpose. This report is intended for the information of the Mayor, City Council Members, management, and the Metropolitan Transportation Commission and is not intended to be and should not be used by anyone other than these specified parties. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 Dublin, California Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Schedule For the fiscal year ending June 30, 2021 INDEPENDENT ACCOUNTANTS’ REPORT ON LIMITED PROCEDURES REVIEW OF APPROPRIATIONS LIMIT UNDER ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California We have performed the procedures enumerated below to the accompanying Appropriations Limit Schedule of the City of Dublin (City) for the fiscal year ending June 30, 2021. These procedures, which were agreed to by the City and the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution ), were performed solely to assist you in meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. The City management is responsible for the Appropriations Limit Schedule. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or any other purpose. The procedures performed and our findings are described below: 1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the fiscal year ending June 30, 2021, and determined that the limit and annual calculation factors were adopted by resolution of City Council. We also determined that the population and inflation options were selected by a recorded vote of City Council. Findings: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and agreed the resulting amount to the current year’s limit. Findings: No exceptions were noted as a result of our procedures. 3. We agreed the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City. Findings: No exceptions were noted as a result of our procedures. 4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Schedule to the prior year appropriations limit adopted by the City Council during the prior year. Findings: No exceptions were noted as a result of our procedures. To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 We were not engaged to and did not conduct an examination, the objective of which would be the expression of an opinion on the accompanying Appropriation Limit Schedule. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by Article XIII-B of the California Constitution. This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. Badawi and Associates Certified Public Accountants Berkeley, California December 11, 2020 City of Dublin Appropriations Limit Schedule Amount Source A. Appropriations limit for the year ended June 30, 2020 372,487,106$ Prior year resolution B. Calculation Factors: 1. Population increase % 1.0282 State Department of Finance 2. Inflation increase %1.0393 County of Alameda 3. Total adjustment factor % 1.0686 B1*B2 C. Annual Adjustment Increase 25,552,615 [(B3-1)A)] D. Other Adjustments - E. Total Adjustments 25,552,615 (C+D) F.Appropriations limit for the year ending June 30, 2021 398,039,721$ (A+E) For the fiscal year ending June 30, 2021 City of Dublin Notes to Appropriations Limit Schedule For the fiscal year ending June 30, 2021 1. PURPOSE OF LIMITED PROCEDURES REVIEW Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit. 2. METHOD OF CALCULATION Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-1987, adjusted for the inflation and population factors discussed in Notes 3 and 4 below. 3. INFLATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance), or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City of Dublin for the fiscal year 2020-2021 represents the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. 4. POPULATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction’s own population, or the annual percentage change in population in the County where the jurisdiction is located. The factor adopted by the City of Dublin for fiscal year 2020-2021 represents the annual percentage change in population for the City. 5. OTHER ADJUSTMENTS A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services, to, or from, another government agency or private entity. There were no adjustments made for fiscal year ending June 30, 2021.