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Home My WebLink AboutItem 4.03 AnnualAuditRptFY01-2 CITY CLERK File#[ . / AGENDA STATEMENT CITY COUNCIL MEETING DATE: March 18, 2003 SUBJECT: Annual Audit Report for Fiscal Year 2001-2002 Report Prepared by: Carole Perry, Administrative Services Director and Fred Marsh, Finance Manager ATTACHMENTS: 1. Comprehensive Annual Financial Report, dated June 30, 2002 RECOMMENDATION.' ~.cx 1. Receive the Reports 2. Confirm the Reservations of Fund Balances for Fiscal Year 2001-2002 FINANCIAL STATEMENT: See Staff Report. DESCRIPTION: The City of Dublin has compiled and published its Comprehensive Annual Financial Report (CAFR), Attachment 1, for the Fiscal Year ending June 30, 2002. This report includes financial statements prepared by Vavrinek, Trine, Day, & Co. (VTD), the independent auditors selected by the City Council. This is the seventh year that VTD has conducted this audit for the City. The financial section of the report includes an unqualified opinion issued by VTD. The audit was also reviewed on March 6, 2003 by the City Council Ad Hoc Audit Committee. The Committee met with the auditors to review the information and discuss the report. The auditors issued one finding involving the City's internal controls, recommending that the City establish more formalized guidelines for its fixed assets and also consider establishing a higher limit for the capitalization of assets. The Finance Department is currently working on a proposal that addresses the auditor's recommendation. This recommendation is, in part, the result of the Government Accounting Standards Board Statement 34 (GASB 34), which represents a major change in financial reporting for local governments. However, it should be noted that the audit did not reveal any items that are considered to be a material weakness (requiring disclosure in .a management letter). It should also be noted that the City completed its "conversion" to the GASB 34 reporting format one year ahead of schedule. As such, the City's audit report for Fiscal Year 2001-2002 has been prepared in compliance with the new principles of GASB 34. The transmittal letter (pages viii - xi) and the Management Discussion and Analysis (pages 3 - 12), provide a good overview of the financial activities of the City. This letter focuses on significant trends, as well as major changes associated with the City's major funds (i.e. General Fund and Impact Fee funds). The General Fund represents the largest portion of the City's revenues and expenditures; therefore, is of primary importance in evaluating the City's fiscal condition. The statistical section in the CAFR (pages 111-123) includes graphs of relevant historical data. This visual presentation can be helpful in identifying trends and/or the timing of key changes which have impacted the City's financial condition.. COPIES TO: Kevin Pulliam, VTD Gall Smith, VTD /~ ~ ITEM NO. G:~Audit~FY 2001-02\cuff\agenda statement for final audit report, doc ~' ~ ~ DESIGNATIONS OF FUND BALANCES A. For Recycling Programs - Measure D Recycling Fund During the last six fiscal years the City has received Mitigation and Recycled Product Grant Funds from County Waste Management Authority (WMA), which were to be utilized solely for designated Recycling Programs. All of these funds have been accounted for in the Measure D Recycling Fund. As of June 30, 2002, the City will have $125,449 available to carryover to Fiscal Year 2002-2003. These funds have been shown as a separate restricted fund balance, in order to segregate them from the remainder of the Measure D Funds, since they will be a source of funding for enhanced recycling programs. The City Council is requested to confirm the designation as part of accepting this report. B. For Authorized Expenditures This designation is established to allow the City Council to carryover any unused funds as of June 30, 2002, to fund future year operations and projects for each of those funds with a positive fund balance. Included as part of this designation, $534,970 will be added to the General Fund for this reserve category. This represents the amount of the General Fund surplus for Fiscal Year 2001-2002, over and above the amounts discussed in Section C below. The City Council is requested to confirm the designation for all funds with a positive fund balance as of June 30, 2002, as part of accepting this report. C. Other General Fund Designations of Fund Balance The City Manager proposed, as part of his transmittal letter in the Preliminary Budget and Financial Plan for Fiscal Year 2002-03, that the anticipated surplus for Fiscal Year 2001-02 be allocated to the projects listed below as follows: General Fund Designation Proposed Amount Open Space / Downtown $626,360 Affordable Housing $626,360 Energy Projects $715,781 CIP Carryovers $2,032,767 The City Council is requested to confirm these designations as part of accepting this report. CONCLUSION Staff recommends that the City Council receive and file the reports and confirm the designation of Fund Balances as presented in the audit. CITY OF DUBLIN DUBLIN, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2002 Prepared By: Administrative Services Department INTRODUCTORY SECTION CITY OF DUBLIN COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2002 TABLE OF CONTENTS INTRODUCTORY SECTION ~ Table of Contents ......................... ; ......... ~ ............................................................... i Elected Officials and Administration Personnel Organizational Chart .............................................. GFOA Certificate of Achievement for Excellence in Financial Reporting .................................. vi CSMFO Certificate of Award for Outstanding Financial Reporting ....................................... vii Letter of Transmittal ................................................................................................ viii FINANCIAL SECTION Independent Auditors' Report Managements' Discussions and Analysis (Required Supplementary Information) .................. 3 Basic Financial Statements Government-wide Financial Statements: Statement of Net Assets ...... Statement of Activities ...... Fund Financial Statements: Balance Sheet - Governmental Funds ...... ........................................................... 16 Reconciliation of Fund Balance to Net Assets ....................................................... 18 Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds ................................................................................... 19 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................... 2I Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund CITY OF DUBLIN COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2002 .TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued) Basic Financial Statements, (Continued) Statement of Net Assets - Proprietary Funds ............................................................ : 23 Statement of Revenues, Expenses, and Changes in Net Assets - Proprietary Funds ................ 24 Statement of Cash Flow - Proprietary Funds ............................................................ 25 Statement of Fiduciary Net Assets - Fiduciary Funds ................................................... 26 Notes To Basic Financial Statements ......................................................................... 27 Required Supplementary Information Schedule of Funding Progress Miscellaneous Plan of the California Public Employee Retirement System ...... Combining and Individual Fund Statements and Schedules General Fund Schedule of Budget Versus Actual Revenues by Source ............................................. 52 SChedule of Budget Versus Actual Departmental Expenditures .................................... 54 Major Fund Budgetary Comparison Schedules Schedule of Revenues, Expenditures, and Changes in Fund Balance - Major Capital Project Funds ........................................ 7 Non-major Governmental Funds Combining Balance Sheet ............................................................................... 3 Combining Statement of Revenues, l~xpenditures and Changes in Fund Balance ................ 69 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Non-major Governmental Funds ......................................... 75 CITY OF DUBLIN COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2002 TABLE OF CONTENTS (Continued) FINANCIAL SECTION (Continued) ~ Basic Financial Statements, (Continued) Internal Service Funds Combining Statement of Net Assets .......... ........................................................ 103 Combining Statement of Revenues, Expenses and Changes in Net Assets ...................... I05 Combining Statement of Cash Flows Agency Funds Statement of Changes in Assets ......................................................................... 110 STATISTICAL SECTION Governmental Expenditures by Function - All Governmental Fund Types - Last Ten Fiscal Years General Governmental Revenues by Source - All Governmental Fund Types - Last Ten Fiscal Years ............................. : .......................................................... 112 Assessed Value of Taxable Property - Last Ten Fiscal Years ................................................ I 13 Property Tax Rates - All Direct and Overlapping Governments ~ Last Ten Fiscal Years 114 Computation of Legal Debt Margin ........................................................................... 115 Computation of Direct and Overlapping Debt ................................................................. 116 Demographic Statistics - Last Ten Fiscal Years ............................................................... 117 Property Value, Construction, and Bank Deposits - Last Ten Fiscal Years ................................ 118 Schedule of 1993 Certificates of Participation Coverage - Fiscal Years 1994-1999 ...................... 119 Property Tax Levies and Collections - Last Ten Fiscal Years ............................................... 120 Principal Property Taxpayers Top 25 Sales Tax Producers ....................................................................................... 122 Miscellaneous Statistical Data .................................................................................... 123 iii CITY OF DUBLIN ELECTED OFFICIALS June 30, 2002 Mayor Janet Lockhart Vice Mayor Councilmember Claudia McCormick Tony Oravetz Councilmember Councilmember Tim Sbranti George Zika ADMINISTRATION PERSONNEL City Manager Richard C. Ambrose Assistant City Manager Joni L. Pattillo Administrative Services Director Carole Perry City Attorney Elizabeth Silver City Clerk Kay Keck Chief of Police Gary Thuman Public Works Director Lee Thompson Community Development Director Eddie Peabody Parks & Community Services Director Diane Lowart Fire Chief Bill McCmnmon CITY OF DUBLIN ORGANIZATIONAL CHART Residents of Dublin I' CityCounci, _l Heritage & Parks & Community City Manager t Planning Cultural Arts Services City Commission Commission . Commission City Clerk Attorney I Elections Economic Development Assistant City Manager I I Central Services < i Y°uth / I.'. Seni°rI Human Resources Advisory Center Disaster Preparedness Committee Advisory Waste Management Committee Cable TV Crossing Guards Police Services Community Parks & Administrative Public Works Fire Development Community Services Services Police Building Management Services Animal Control Building & Safety Recreation Finance Traffic Signals · Fire Parking Planning Library Services Treasurer Street Lighting Suppression Administration Cultural Activities Information Systems/ Street Maintenance Fire Heritage Center Technology Street Sweeping Prevention Dublin Cemetery Street Tree Maint Parks & Facilities Mgmnt Street Landscape Maint Park Maintenance 6/2002 Engineering Certificate of Achievement for Exc~llence '~ 'in Financial Reporting Presented to City of Dublin, California. For its Compr~h~iv~ ~nU~l .......... Financial Report fpr the Fiscal Year Ended June 30, 2001 A Certificate ~>f Achievement for Excellence in Financial Reporting is presented by the .Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CP2b-Rs) achieve the highest gandards in ~overnment accounting .and financial reportin§. ecutive Director Certificate of Award Outstanding Financial Reporting. 2000-2001 · Presented to the " ' City of Dublin This certificate is issued itt recognition of meetittg~rofessional standards attd criteria itt t'eportittg ' which reflect a high level of qualitj, itt the atmual financial statements attd itt the underlyittg accountittg system fi'am which the reports wet:e prepared. . Februat~ 20, 2002 Chair, l'rol[essionai & Technical Standards Committee Dedicated to Excellence itt Municipal Financial Managentent February 13, 2003 Honorable Mayor and Members of the City Council Presented with this transmittal is the City of Dublin Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2002. 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) and includes the report prepared by the City's independent certified public accountants, Vavrinek, Trine, Day & Co, LLP. The responsibility for the accuracy and fairness of this report rests with the City. This year's report has been reformatted to comply with the new financial reporting model developed by Governmental Accounting Standards Board (GASB) Statement 34. The new financial reporting model has resulted in significant changes to the format of the City's financial statements. It is intended to improve financial reporting by providing additional information not previously available in local government financial statements. Major changes to the City's CAFR include the following: · New government-wide financial statements designed to provide readers with a broad overview of the City in a manner similar to a private sector business~ including a statement of net assets and statement of activities. It is important to note the following regarding these statements: o The Statement of Net Assets and Statement of Activities represent a combination of all of the City's funds, including the City's General Fund and other Special Revenue and Capital Projects funds which are restricted in nature. Information on individual funds can still be found in the combining statements contained in the CAFR. o The amount reported as "unrestricted" in the net asset section on the statement of net assets has been designated for several General Fund projects previously authorized by Council, as discussed in additional detail in the notes to the financial statements, in addition to funds previously designated for building and equipment replacement (accounted for in the City's Internal Service Funds). o The amount reported as "invested in capital assets" in the net asset section on the statement of net assets represents the portion of fixed assets to be depreciated over the remaining life of the assets and is not available for funding of additional City projects. o The amount reported as "infrastructure" only represents the current year additions to the City's infrastructure base, which includes road and park improvements. As one of the high priority goals adopted by Council for Fiscal Year 2002-2003, Staff is planning to perform a complete inventory of the City's infrastructure dating back to the City's incorporation in 1982, which once complete will replace the amount reported for infrastructure in the financials. viii To assist with an individual's review of the City's financial statements, a new narrative section called the Management's Discussion and Analysis (MDA) has been added. The MDA reports on the financial highlights of the City and provides additional analysis on the variances and trends reported as part of the financial statements. In addition, the MDA is designed to disclose any significant events or decisions that affect the financial condition of the City. As a result of the addition of the MDA to the City's CAFR, the financial analysis previously contained in the City's transmittal letter has been removed. ECONOMIC CONDITION AND OUTLOOK The City of Dublin is located at the intersection of Interstates 580 and 680 approximately 35 miles east of San Francisco. The City has a wide range of housing types available to meet the demands of various employers throughout the region. The City has a large retail base which serves local residents as well as those in surrounding communities. The largest employers include: public agencies such as the County of Alameda and the Dublin Unified School District; corporate offices such as Sybase, E Loan, Franklin Resources, Humphrey Instruments, Micro Dental Laboratories, Pacific Bell and Supergen; retailers such as Best Buy, Home Expo Design, Circuit City, Good Guys, Mervyns, Target and a Regal IMAX 21 screen theater, and auto dealers such as Crown Chevrolet, Tri Valley Pontiac/Buick/GMC, Dublin Honda, Dublin Toyota, Shamrock Ford, Stoneridge Motors and Dublin Auto Center. Economic conditions throughout the State deteriorated during Fiscal Year 2001-2002, largely attributed to two key factors. The first relates to the fallouts that occurred in the Hi-Tech Industry. The second resulted from the national events of September 11,2001. Retail Sales are an obvious indicator of the general economic climate. The General Fund Sales Tax in 2001-2002 decreased by 1% over the amount attributable to the prior year ($12.8 million in FY 2001/02 vs. $ I3.0 million in FY 2000/2001). A significant amount of the City's retail sales are attributable to the sales of new and used automobiles which declined over the amount reported for the prior year. This was partially offset by increased sales that occurred within the City's Hacienda Crossings Shopping Center. The future economic outlook for the City is geared towards enhancing the City's existing economic base, while seeking opportunities for expansion and adding diversity to the current retail base. There is the ability to accommodate significant new development projects in the City's Eastern Dublin Specific Plan Area, as evidenced by several development agreements entered into with the Alameda County Surplus Property Authority and the developers for Dublin Ranch during the past few fiscal years. The economic outlook for the City of Dublin for Fiscal Year 2002-03 continues to be impacted by the downturn 'in the State economy and the national events of September 11,200 I. As a result, the City has reduced its estimated revenues in several of its major revenue categories for Fiscal Year 2002-03, although the City anticipates that there will be sufficient reserves to cover any revenue shortfalls. MAJOR INITIATIVES The City of Dublin is an active and vibrant community, with a municipal government that is proactive and prepared to respond to changes which are occurring. Each year the City Council adopts Goals and Objectives for the upcoming year and evaluates the progress achieved on the goals previously established. The City's Goals and Objectives program is the process by which the City Council formulates major initiatives for the City. In Fiscal Year 2001-02, the City 'began work on several capital projects, including the following: · Civic Center Library Emerald Glen Fire Station and Fire Station t8 · Freeway Interchange Improvements · Widening of Dublin Boulevard · Freeway Underpass Art Project · Alamo Canal Bike Path ix In addition, the City updated its inclusionary zoning ordinance to provide for additional affordable housing. The market for new housing of ali types continued to be slow during Fiscal Year 2001-2002, with permits issued for 487 new residential units, a drop of 5% from the previous Fiscal Year. The valuation of these new residential units was estimated to be $I23 million, adding to the City's taxable assessed value for Fiscal Year 2002-2003. Non residential activity decreased during Fiscal Year 2001-02, as previously approved plans for another hotel and the completion of additional office buildings have been withdrawn. ACCOUNTING SYSTEM AND BUDGETARY CONTROL Note 2 in the General Purpose Financial Statements provides a detailed explanation of the significant accounting policies. In developing and evaluating the City's accounting system, consideration is given to the adequacy of controls. Internal accounting controls are designed to provide reasonable assurance regarding: safeguarding of assets against loss, accuracy and reliability of accounting data, and adherence to prescribed policies. The concept of reasonable assurance recognizes that the cost of a control should not exceed benefits likely to be derived and that the evaluation of costs and benefits require estimates and judgments by management. The City Manager develops and presents a budget for approval by the City Council on an annual basis. The budget includes appropriations for both operating programs and capital improvement projects. The budget is approved by Budget Activity based upon the identified funding sources. The adopted accounting procedures authorize the City Manager to transfer budget amounts between line items within the same Department. Expenditures may not exceed budgeted appropriations at the departmental level without City Council approval, except as provided for in the City Council resolution adopting the budget. DEBT ADMINISTRATION The City has no outstanding General Obligation debt. However, the City does administer funds for debt issued pursuant to the 1915 Improvement Act for the Dublin Boulevard Extension Assessment District. The total amount of assessment debt outstanding at June 30, 2002 is $1,671,000. This amount is repayable fi.om property assessments levied on properties benefiting from the improvements, and the City has no legal, contingent or moral obligation for the repayment of this debt. Revenues collected were sufficient to finance all required debt service expenditures for the year ending June 30, 2002. There were no material delinquent assessment revenues at year end.. RISK MANAGEMENT The City of Dublin is a member of ABAG PLAN Corporation. This is a public agency pool providing liability insurance coverage to 31 Bay Area cities. The coverage limit for Fiscal Year 2001-02 was $10 million per occurrence, which does not cover damage resulting from an earthquake. The City of Dublin has selected a $50,000 deductible. The pool also provides property insurance coverage with a $5,000 deductible except for vehicle losses, which carry a $10,000 deductible. The pool purchases the required employee bonds from a commercial surety company. In accordance with GASB I0, the City established a liability of $137,210 for claim deductibles. This includes a provision for losses which may be "incurred but not reported" (IBNR). The actual cost for liability claims paid by the City for Fiscal Year 2001-02 was $61,460. CASH MANAGEMENT Cash temporarily idle during the year was invested in accordance with adopted investment policies. The amount of interest earned on all Governmental and Proprietary Fund Types was approximately $4.0 million. The City's yield on all of its investments as of June 30, 2002 was 3.75%. At June 30, 2002, the City's portfolio of Federal Security investments had an average weighted maturity of 2.8 years. In addition, the City has sufficient investments in the State's Local Agency Investment Fund (LAI~) and money market accounts which offer same day liquidity. The City has positioned its cash needs to allow it to hold all securities to maturity, on a quarterly basis the City Council is provided with a report on investment activity. The investment strategy emphasizes the safety of the portfolio and liquidity to match anticipated cash flow needs. The portion of the portfolio containing U.S. Notes and Agency Obligations does not include any repurchase agreements. INDEPENDENT AUDIT Each year the City of Dublin obtains an independent annual audit of thc City's financial records. The information presented includes a review of operations and changes in financial position. This report includes thc Auditor's unqualified opinion on the City's combined financial statements. AWARDS The Government Finance Officers' Association (GFOA) and the California Society of Municipal Finance Officers' (CSMFO) have both recognized the City of Dublin for its Comprehensive Annual Financial Report covering the period ending June 30, 2001. Copies of the awards from these entities are included in this report. These awards represent the twelfth consecutive year that thc City's report was recognized by the GFOA. In order to bc recognized, thc City was required to produce an easily readable and efficiently organized report. Thc report must also meet thc standard for generally accepted accounting principles and legal requirements. ACKNOWLEDGMENTS Among thc responsibilities assigned to thc Administrative Services Department are the functions associated with Finance. It is especially appropriate to recognize the efforts of Finance Manager Fred Marsh, Administrative Analyst Lisa Hisatomi, Finance Technicians Lynn Harrington, Katie Mooney and Diane Stanley and Office Assistants Wanda Oppenheim and Rebecca Roberts in preparing this report. The City is fortunate to have these dedicated staff members who are willing to devote extensive time and energy in preparing such a comprehensive report. The City has had its financial reports recognized by GFOA and CSFMO for many years, which is a significant accomplishment, since this task is often undertaken only by larger organizations. Staff also appreciates thc professional effort expended by the independent auditors of Vavrinek, Trine, Day & Co., LLP in thc preparation of thc financial statements. Thc City Council is recognized for its continued support and encouragement. Staff intends for the report to be a source of pride and accomplishment; representing excellence in financial reporting and exemplifying the high priority given to the provision of quality services. Sincerely, Carole Perry Administrative Services Director xi FINANCIAL SECTION This page left blank intentionally. INDEPENDENT AUDITORS' REPORT The Honorable City Council of The City of Dublin, California We have audited the accompanying financial statements of the govermuental activities, each major fund, and the aggregate remaining fund information of the City of Dublin, as of and for the year ended June 30, 2002, which collectively comprise the City of Dublinfs basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Dublin's management. 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, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin, California, as of June 30, 2002, and the respective changes in financial positions and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated September 27, 2002, 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 grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. As discussed in the Notes to the basic financial statements, the accompanying financial statements reflect certain changes required as a result of the implementation of GASB Statement No. 34 for the year ended June 30, 2002. This results in a change to the format and content of the basic financial statements. The required supplementary information, such as management's discussion is not a required part of the basic finmacial statements, but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The other supplementary information listed in the table of contents, including combining schedules and additional budgetary comparison schedules, are presented for purposes of additional analysis and are not a required part of the basic financial statements. These schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. eleasanton, California ~ September 27, 2002 ~)~ ~)(~ ~ 2 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2002 As management of the City of Dublin (City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2002. Please read this overview in conjunction with the accompanying letter of transmittal and the accompanying basic financial statements. FINANCIAL HIGHLIGHTS · During Fiscal Year 2001-02, the City's net assets, representing the difference between total assets and total liabilities, increased by $35.8 million to $131.9 million. The increase primarily resulted from the receipt of impact fees due to new development occurring within the City to be used to fund future improvements to the City's infrastructure, including its parks and streets. · Of the total, $43.0 million represents its investments in capital assets, $43.3 represents net assets restricted by outside agencies and state regulations for specific purposes and $45.6 million of unrestricted net assets may be used to meet the government's ongoing obligations to its citizens and creditors. · As discussed in Note 7 to the financial' statements, all of the $45.6 million of unrestricted net assets includes funds that have either been designated for future equipment replacement or that has been. designated by Council for use on several future projects and to cover economic uncertainties. · Total revenues from all sources were $67.8 million and total expenditures for all City programs were $32.0 million. · For Fiscal Year 2001-02, the City had no long term debt outstanding at June 30, 2002. · As of June 30, 2002, the City's governmental funds reported combined ending fund balances of $82.6 million, an increase of $17.1 million in comparison with the prior year. The increase in combined ending fund balances is primarily attributable to impact fees collected from developers to be used for capital improvements. · The unreserved portion of fund balance in the City's General Fund balance increased to $39.3 million. As discussed in the notes to the financial statements, the entire amount has been designated by Council for use on several future projects and to cover economic uncertainties. · During Fiscal Year 2001-02, the General Fund revenues exceeded its expenditures by $4.5 million. · Actual Revenues in the General Fund were under its final budget by $1.0 million primarily due to smaller than expected collections from sales tax and development related permits and fees. · Actual expenditures were under its final budget by $5.0 million largely due to capital projects being carried over to Fiscal Year 2002-03 and lower than expected development related expenditures due to the drop off in development related expenditures. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which are comprised of three components: · Government-wide financial statements - These include the Statement of Net Assets and Statement of Activities. These statements provide information about the activities of the City as a whole and about the overall financial condition of the City in a manner similar to a private-sector business. These statements are described in more detail in a subsequent section in this MDA and can be found on pages 14-15 of this report. CITY OF DUBLIN Management's DiscusSion and Analysis (MDA) June 30, 2002 · 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. These statements are described in more detail in a subsequent section of this MDA and can be found on pages 16-26 of this report.. · 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. The notes can be found on pages 27-49 of this report. A. Government-Wide Financial Statements These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All current year's revenues and expenses are accounted for regardless of when the cash is paid or received. These statements report the City's net assets and changes in them. Net assets, the difference between assets and liabilities, are one way to measure the City's financial position. Over time, increases or decreases in net assets are indicators of whether the financial condition of the City is improving or deteriorating. However, it is also important to consider other non-financial factors, such as changes in the City's property tax and sales tax bases or in the condition of the City's infrastructure (i.e. parks and streets), to accurately assess the overall health of the City. These 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. B. Fund Financial Statements These statements provide more detailed information about the City's major funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 32 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 General fund and for all of the City's Capital Project Funds, as they either qualify or the City requested them to be classified as major funds due to their significance in the financing of new capital assets. Data from the other 26 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. Management's Discussion and Analysis (MDA) June 30, 2002 The City adopts an annual appropriated budget for each of its governmental funds. A budgetary comparison statement has been provided for each governmental fund to demonstrate compliance with this budget. Proprietary funds The City maintains one type of proprietary fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions and to build up reserves for future replacement of capital assets. The City uses internal service funds to account for its fleet of vehicles, computer systems, other furniture and equipment, retiree health employee costs and contributions, and improvements to City buildings. Because these services solely benefit the governmental function, they have been included within governmental activities in the government-wide financial statements. Proprietary fund financial statements provide the same type of information as the government-wide financial statements, only in more detail. All three internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. Fiduciary Funds The City acts as a trustee, or fiduciary, in collecting assessments and remitting bond payments for one Assessment District. 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. Therefore, these fiduciary activities are excluded from the City's fund financial statements because these assets cannot be used to finance operations. The activity for this fund, however, is provided for in a separate combining statement contained elsewhere in this report. C. 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. The notes can be found on pages 27-49 of this report. D. Other Information 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. Required information can be found on page __ of this report. The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages __ __ of this report. GOVERNMENT-WIDE FINANCIAL ANALYSIS The City's combined net assets for the Fiscal Year ended June 30, 2002 was $131.9 million. A significant portion of the City's net assets ($43.0 million or 33%) reflects its investment in capital assets (e.g. land, infrastructure, buildings, equipment). The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. An additional portion of the City's net assets ($43.3 million or 33%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($45.6 million or 34%) may be used to meet the government's ongoing obligations to citizens and creditors. It should be noted, however, that the entire balance has previously been designated by the City Council for future projects, including replacement of buildings and equipment, as described in additional detail in the notes to the financials. Table 1 on the following page summarizes the City's net assets. CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2002 TABLE 1 Governmental Activities Item June 30, 2002 Current and other assets $ 99,191,259 Capital assets 42,960,899 Total assets $142,152,158 Other liabilities $10,272,898 Total Liabilities $10,272,898 Invested in capital assets 42,960,899 Restricted 43,279,073 Unrestricted See Note 7 to Financials for Council Designations) 45,639,288 Total net assets $131,879,260 Governmental activities. The charts below summarize major expenditure program categories, program revenues used to fund specific expenditure programs, and general City revenues available for funding all City programs. Note that a Schedule of Changes in Net Costs/Revenues is not presented due to the exclusion of comparative data in this report, as previously mentioned in the MDA. Beginning with Fiscal Year 2002-2003, this schedule will be included. TABLE 2 Program Net Cost Expenses Revenues Of Activity Governmental Activities General Government $ 4,658,653 $ 9,741,765 $ (5,083,1t2) Police 7,001,107 612,983 6,388,124 Fire 4,866,217 2,050,075 2,816,142 Other Public Safety 582,249 41,480 540,769 Community Development 4,557,634 4,803,099 (245,465) Highways and Streets 5,277,778 16,534,036 (11,256,258) Health and Welfare 1,193,542 2,703,507 (1,509,965) Culture and Leisure 3,901,126 1,840,151 2,060,975 Total Governmental Activities $32,038,306 $38,327,096 $ (6,288,790) General revenues: Property taxes $ 9,447,544 Sales Tax 12,813,111 Motor Vehicle In Lieu Tax 1,940,341 Transient Occupancy Tax 810,220 Other taxes 1,820,648 Unrestricted Interest Earnings 2,127,156 Other 511,652 Total General Revenues $29,470,672 Increase in net assets 35,759,672 Net assets - July 1, 2001 69,011,204 Prior Period Adjustment 27,108,594 Net assets - June 30, 2002 $131,879,470 CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2002 Revenues by Source (In Millions) Total Revenues $61.9 Million Other taxes 7% - Charges for 11% - $4.6 $7.8 Sales Tax 19% - $12.8 Other Revenues 4% - $2.6 Property taxes ~_ 14% - $9.4 Cont/Grants 45% - $30.5 Expenses by Program (In Millions) Total Expenses -$32.0 Million Culture and General Leisure 12% - $3.9 15% - $4.7 Health and Welfare 40/0 - $1.2 Highways and Streets 16% - $5.3 Police 22% - $7.0 Community / Fire / Other 17% - Development 14% -~ $5.5 $4.6 ~~ CITY OF DUBLIN ~ 5~w"~.,/~ JuneManagement's30, 2002 Discussion and Analysis (MDA) Governmental activities increased the City's net assets by $35.8 million, thereby accounting for all of the total growth in the net assets of the City. Key elements of this increase are as follows: · The City collected over $18.8 million in development impact fees in its Capital Project Funds, which will be used to fund future streets and parks improvements and the building of two new fire stations. · During Fiscal Year 2001-2002, the City transferred approximately $15 million worth of capital assets (including amounts incurred for its library, swim center, fire stations and community center) to its Building Internal Service Fund. These had all previously been fully expensed in its General and Capital Project funds. This transfer was recognized as a contribution revenue in the Building Internal Service Fund. · The City continued to see significant increases in General Fund property taxes collected resulting from the significant amount of commercial and retail growth that occurred during the last two fiscal years and large increases in housing prices. · Although total General Fund sales taxes decreased slightly from the prior year, the City still experienced strong retail sales from its automotive dealers and at its retail shopping centers. FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. As of June 30, 2002, the City's governmental funds reported combined ending fund balances of $82.6 million, an increase of $17.1 million in comparison with the prior year. Of the increase, $4.5 million occurred in the City's General Fund unreserved fund balance, $10.5 million occurred from the City's impact fee funds reserved for use on future capital projects and $1.1 million in the City's other Governmental Funds which are reserved under various grant restrictions and state and local requirements for spending these funds. As discussed in Note 7 to the financial statements, almost the entire amount of the General Fund has been designated by Council for use on several, future projects and to cover economic uncertainties GENERAL FUND The General Fund is the chief operating fund of the City. At the end of Fiscal Year 2001-02, unreserved and total fund balance of the General Fund was $39.3 million. As discussed in Note 7 to the financial statements, the entire amount has been designated by Council for use on several future projects and to cover economic uncertainties. During Fiscal Year 2001-02, the General Fund revenues exceeded its expenditures by $4.5 million. This includes $2.7 million in carryovers for various capital projects. In the City Manager's transmittal letter in the City's Operating Budget for Fiscal Year 2002-03, a $8.2 million surplus (including $6.9 million of anticipated carryovers for Capital Projects) was anticipated for Fiscal Year 2001-02. The primarY reason for the variance was due to the City using General Fund monies instead of Public Facility Fee Funds to pay for the early construction costs of the City's new library. The City will use the Public Facility Fee Funds for the remaining construction costs to be incurred in Fiscal Year 2002-03. Significant changes in Revenues and Expenditures that affected this increase in General Fund balance are as follows: a. Revenue Highlights Property Taxes increased over the prior year due to new residential and commercial units (mostly in Eastern Dublin) constructed in Fiscal Year 2000-01 and included for the first time on the 2001-02 tax roll. In addition, there continued to be a general overall increase in property values in the City due primarily to a strong housing market. The City's taxable assessed value increased from $3.0 billion in Fiscal Year 2000-01 to $3.7 billion in CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2002 Fiscal Year 2001-02, a 23% increase over the prior Fiscal Year. The taxable assessed value on the property in Eastern Dublin will continue to increase as new residential and commercial units are constructed by developers. Taxes Other Than Property decreased from the prior year primarily due to a.) a decline in transient occupancy taxes received due to the national events of September 11, 2001 as well as the weak economy and b.) a decline in sales taxes received from car sales also due to the weak economy. Revenue from Use of Money and Property decreased from the prior year primarily due to a significantly lower rate of return on the City's investments in comparison to the previous year due to significant interest rate reductions in the bond market for U.S. securities as well as for those investments held in LAIF. Charges for Services are higher than in the same period of the prior year due to additional monies received for planning and engineering plan check fees for work performed by staff and consultants on new development occurring within the City. In addition, a one time capital grant of $250,000 was received from AT&T to upgrade equipment for the Tri Valley's community service television station. Other Revenues showed an decrease over the previous year due to a $2 million contribution from a developer in the previous fiscal year to partially fund construction of the new Civic Center Library. b. Expense Highlights General Government expenditures increased over the prior year due to higher amounts paid for insurance premiums and claims, additional staffing in the Administrative Services and City Manager divisions, increased building maintenance costs, funding of computer technical support for "Computers in Our Schools" program and increased legal costs related to development. The development related legal costs are reimbursed by the project applicant and offset by revenue. Public Safety costs increased over the prior year due to increased Police expenditures resulting from the hiring of additional Police officers, increased fees for bookings at the County Jail, higher fees for dispatch services and a cost of living adjustment from Alameda County for contract Police personnel. Fire expenditures also increased due to a cost of living adjustment from the Alameda County Fire Department for contract fire personnel. Culture and Leisure Services expenditures increased over the prior year due to higher expenditures for park maintenance and additional expenditures incurred for Parks and Community Services programs and other special events, including the annual St. Patrick's Day and Day on the Glen celebrations and concerts at the Civic Center. Community Development expenditures increased over the prior year due to additional time spent by consultants on various development projects, primarily in the Eastern Dublin Specific Plan area. These costs are reimbursed by the project applicant and offset by revenue. Capital Outlay increased by $3.1 million over Fiscal Year 2000-01, primarily due to expenses incurred on construction of the City's new library which will be completed in Fiscal Year 2002-03. Due to the one-time nature of capital projects, fluctuations from year to year are common. c. Budgetary Highlights Over the course of the year, the City Council revised the City budget with adjustments that fall into one of the following three categories: · Changes made to adjust appropriations for capital project carryovers from the prior year Changes made in the mid year report to adjust revenues and augment current year appropriations · Other revenue and expenditure adjustments approved after the original budget was adopted. Budget adjustments approved by Council during Fiscal Year 2001-2002 included the following: CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2002 Energy related improvements to the Civic Center · Capital project carryover of construction expenditures for the City's new library · Council chamber improvements to provide for live broadcasting of council meetings · Additional appropriations for construction of two freeway Interchanges · Additional appropriations for consultant work related to new development After taking into account these adjustments, actual expenditures were $5.0 million lower than final budget amounts. Of the total, $3.1 million related to either capital projects whose final costs were lower than were originally anticipated or were carried over to Fiscal Year 2002-03. Most of the other budget to actual variances were due to either delays in development occurring within the City (some of which will be carried over to Fiscal Year 2002-03) or department labor savings created by vacant positions. CAPITAL pROJECT FUNDS The City's Capital Project Funds account for fees received from developers due to the impacts placed on the City resulting from their new developments. The funds received from developers are used to pay for required infrastructure, including additional streets, parks, public and fire station facilities. At the end of Fiscal Year 2001- 02, total fund balance of these funds was $40.3 million. As discussed in the notes to the financial statements, the entire amount has been designated by Council for use on various capital projects in the City's five year capital improvement program. During Fiscal Year 2001-02, the Capital Project funds revenues exceeded their expenditures by $12.7 million. The increase was due to impact fees received from new development and advances received from developers to pay for improvements on two freeway interchanges. These revenues and existing fund balances were used to pay for the following major capital projects during Fiscal Year 2001-02 · Design of three freeway interchanges and construction of the Tassajara Road Interchange · Construction of the Civic Center Library · Design and construction for the Widening of Dublin Boulevard · Design of two new fire stations PROPRIETARY FUNDS The City's proprietary funds (i.e. internal service funds) provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets in the City's proprietary funds at June 30, 2002 totaled $6.3 million, all of which the Council has designated for future replacement of equipment, vehicles and building improvements. The total growth in net assets for Fiscal Year 2001-02 was $15.0 million, as discussed previously in the analysis section related to governmental activities. Capital Asset and Debt Administration Capital assets. The City's investment in capital assets for its governmental activities as of June 30, 2002, amounts to $43.0 million (net of accumulated depreciation). This investment in capital assets includes land and streets right of way, buildings, park and roadway improvements, vehicles and other equipment and construction in progress, as summarized in the schedule on the following page. During the current fiscal year, the City's investment in capital assets increased by approximately $11.6 million (36.8%). CITY OF DUBLIN Management's Discussion and Analysis (MDA) June 30, 2002 TABLE 3 Governmental Activities Item June 30, 2002 Land 9,775,002 Streets right of way 580,739 Construction in Progress 11,333,675 I nfrastru ctu re 1,264,402 Buildings and Improvements 17,883,959 Machinery and Equipment 2,123,122 Total $42,960,899 Major capital asset events during the current fiscal year included the following projects TABLE 4 Fiscal Year 2001-2002 Capital Projec~ Status of Project Expenditures Dublin Boulevard Widening - Dougherty to Scarlett Complete $1,608,554 Civic Center Library In Progress $7,898,769 Emerald Park Fire Station In Progress $ 289,661 Fallon Fire Station In Progress $ 290,638 Dublin Boulevard Widening - Village Parkway to Sierra In Progress $ 989,745 Additional information on the City's capital assets can be found in Note 4 of this report. Long-term debt At the end of Fiscal Year 2001-02, the City had no debt outstanding. State statutes limit the amount of general obligation debt a governmental entity may issue to 15 percent of its total assessed valuation. The current debt limitation for the City is $568.4 million. Additional information on the City's long-term debt can be found in note 5 on pages 30-32 of this report. Economic Factors and Next Year's Budgets Given the state of the local economy and the amount of deficits being forecast as part of the State's budget, caution was exercised in developing the City's budget for Fiscal Year 2002-03. The City's adopted budget for Fiscal Year 2002-03 for all funds was $86.5 million, which includes an appropriation of $34.0 million for operations, $49.5 million for Capital Projects and a $3.0 million to reserves. The amount budgeted for operations represents an increase of approximately 16% over Fiscal Year 2001-02 and is primarily due to projected increases in personnel costs, contract public safety services, the addition of a new group of fire fighters in preparation for the opening of a new fire station and continued consultant costs relating to new development occurring within the City. Major Capital Projects funded for Fiscal Year 2002-03 include work on the following capital projects: · Construction of Civic Center Library · Improvements to three freeway interchanges · Emerald Glen Community Park, Phase I1 CITY OF DUBLIN Management's Discussion and Analysis (MDA) jUne 30, 2002 · Renovation of Dublin Sports Grounds · Widening of Dublin Boulevard · Design of a new senior center · Construction of two new fire stations Primary funding sources for these projects include one time grants, impact fees received from new development and one time General Fund reserves set aside for these projects. 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. BASIC FINANCIAL STATEMENTS GOVERNMENT-WIDE FINANCIAL STATEMENTS CITY OF DUBLIN STATEMENT OF NET ASSETS JUNE 30, 2002 Governmental Activities ASSETS Cash and investments $ 95,245,166 Accounts receivable 3,107,247 Accrued interest receivable 823,625 Prepaids 15,221 Capital assets (net of accumulated depreciation): Land 9,775,002 Streets right of way 580,739 Construction in progress 11,333,675 Infrastructure 1,264,402 Buildings and improvements 17,883,959 Machinery and equipment 2,123,122 Total Assets 142,152,158 LIABILITIES Accounts payable 7,734,442 Accrued wages 255,597 Accumulated unpaid general leave 400,671 Deposits payable 1,547,401 Liability insurance claims payable 137,210 Deferred revenues 146,433 Due to other governments 51,144 Total Liabilities 10,272,898 NET ASSETS Invested in capital assets 42,960,899 Restricted for: Public safety 355,671 Impact fee projects 33,075,302 Highways and streets 2,393,702 Health and welfare 7,514,398 Unrestricted (Note #6) 45,579,288 Total Net Assets $ 131,879,260 See accompanying notes to financial statements. 14 CITY OF DUBLIN STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2002 Program Revenues Operating Capital Net Charges for Contributions Contributions Governmental Expenses Services and Grants and Grants Activities Governmental Activities: Generalgovernment $ 4,658,653 $ 202,732 $ 83,179 $ 414,074 $ (3,958,668) Public safety Police 7,001,107 371,035 197,907 44,041 (6,388,124) Fire 4,866,217 537,648 1,512,427 (2,816,142) Other 582,249 4,929 36,551 (540,769) Community development Planning/Building safety 2,699,403 3,457,958 758,555 Engineering 1,590,534 1,345,141 (245,393) Economic development 267,697 (267,697) Highways and streets 5,277,778 28,021 923,154 15,582,861 11,256,258 Health and welfare 1,193,542 978,499 262,318 1,462,690 1,509,965 Culture and leisure 3,901,126 848,701 4,134,617 1,082,192 Total Governmental Activities $32,038,306 $ 7,774,664 $ 1,503,109 $23,150,710 $ 390,177 General Revenues: Taxes: Property taxes $ 9,015,980 Special assessment property taxes 431,564 Transient occupancy taxes 810,220 Franchise taxes 1,385,816 Sales tax 12,813,111 Motor vehicle in lieu tax 1,940,341 Real property transfer tax 434,832 Unrestricted investment earnings 2,127,156 Other 511,652 Total General Revenues 29,470,672 Change in Net Assets 29,860,849 Net Assets, Beginning of Year 74,909,817 Prior Period Adjustment 27,108,594 Net Assets, End of Year $131,879,260 See accompanying notes to financial statements. 15 FUND FINANCIAL STATEMENTS CITY OF DUBLIN GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30, 2002 ASSETS General Cash and investments $ 43,953,450 Accounts receivable 1,612,310 Accrued interest receivable 823,625 Due from other funds 1,124,963 Prepaids 15,221 Total Assets $ 47,529,569 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable 5,665,052 Accrued wages 255,597 Accumulated unpaid general leave 400,671 Deposits payable 1,547,401 Liability insurance claims payable 137,210 Deferred revenues 146,433 Due tO other funds Due to other governments 51,144 Total Liabilities 8,203,508 FUND BALANCES Reserved For: Prepaid expenditures 15,221 Cemetery endowment 60,000 Recycling programs Public safety programs Street maintenance and construction Health and welfare programs Community development programs Capital improvement projects Unreserved, reported in: General fund (Note #7) 39,250,840 Total Fund Balances 39,326,061 Total Liabilities and Fund Balances $ 47,529,569 See accompanying notes to financial statements. 16 Capital Projects Funds Traffic Public Park Fire Other Impact Facilities Dedication Impact Govermnental Fees Fees Fees Fees Funds Totals $ 22,638,271 $8,101,249 $ 1,356,508 $2,114,579 $ 10,729,047 $ 88,893,104 47,247 1,446,499 3,106,056 823,625 1,124,963 15,221 $ 22,685,518 $8,101,249 $ 1,356,508 $2,114,579 $ 12,175,546 $ 93,962,969 1,039,150 40,350 2,503 100,549 846,812 7,694,416 255,597 400,671 1,547,401 137,210 146,433 1,124,963 1,124,963 51,144 1,039,150 40,350 2,503 100,549 1,971,775 11,357,835 15,221 60,000 201,854 201,854 601,046 601,046 2, t42,788 2,142,788 7,252,544 7,252,544 5,539 5,539 21,646,368 8,060,899 1,354,005 2,014,030 33,075,302 39,250,840 21,646,368 8,060,899 1,354,005 2,014,030 10,203,77l 82,605,134 $ 22,685,518 $8,101,249 $ 1,356,508 $2,114,579 $ 12,175,546 $ 93,962,969 17 CITY OF DUBLIN GOVERNMENTAL FUNDS RECONCILIATION OF THE FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2002 Fund Balances of Governmental Funds $ 82,605,134 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets net of depreciation are not included as a financial resource in the governmental funds. 6,776,940 Internal service funds are used by management to charge the costs of certain activities, such as asset replacement and retiree health care, to individual funds. The assets and liabilities of the internal service funds are included in the govern- ment-wide Statement of Net Assets. 42,497,186 Net Assets of Govermnental Activities $ 131,879,260 See accompanying notes to financial statements. 18 CITY OF DUBLIN GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2002 General REVENUES Property taxes $ 8,794,712 Taxes other than property 15,443,977 Licenses and permits 2,327,251 Intergovernmental 2,076,649 Charges for services 4,464,260 Interest 1,843,674 Use of property 85,937 Fines and forfeitures 118,191 Developer fees Other revenue 493,723 Special assessments Total Revenues 35,648,374 EXPENDITURES current: General government 3,929,919 Public safety 11,608,468 Highways and streets 1,094,100 Health and welfare 52,015 Culture and leisure 4,012,730 Community development 4,643,652 Capital outlay General 4,582,889 Community improvement 273,285 Parks 100,849 Streets 580,010 Debt Service Principal 251,004 Torsi Expenditures 31,128,921 Excess (Deficiency) of Revenues Over (Under) Expenditures 4,519,453 OTHER FINANCING SOURCES (USES) Transfers in 16,785 Transfers out Total Other Financing Sources (Uses) 16,785 Net Change in Fund Balances 4,536,238 Fund Balances, Beginning of Year 34,789,823 Prior Period Adjustment Fund Balances, End of Year (Note//7) $ 39,326,061 See accompanying notes to financial statements. 19 Capital Projects Funds Park Fire Other Traffic Public Dedication Impact Governmental Impact Fees Facilities Fees Fees Fees Funds Totals $ 91,100 $ 8,885,812 206,812 15,650,789 2,327,251 2,625,477 4,702,126 865,791 5,330,051 $ 894,035 $ 428,175 $ .58,533 $ 73,367 445,631 3,743,415 85,937 149,023 267,214 I3,353,737 2,786,737 932,917 1,439,060 1,173,231 19,685,682 32,993' 526,716 431,564 431,564 14,247,772 3,214,912 991,450 t,512,427 6,021,622 61,636,557 3,929,919 914,729 12,523,197 452,247 1,546,347 1,144,442 1,196,457 4,012,730 34,659 4,678,311 3,737,041 580,300 8,900,230 5,203 1,620 73,426 353,534 49,479 76,112 226,440 4,085,146 2,259,994 6,925,150 251,004 4,(185,146 3,791,723 76,112 581,920 4,879,497 44,543,319 10,162,626 (576,811)__ 915,338 930,507 1,142,125 17,093,238 16,785 (16,78.5) (16,785) (16,785) 10,162,626 (576,811) 915,338 930,507 1,125,340 17,093,238 420,542 3,192,937 38,403,302 11,483,742 8,637,710 18,125 1,083,523 5,885,494 27,108,594 $21,646,368 $ 8,060,899 $1,354,005 $2,014,030 $ 10,203,771 $ 82,605,134 20 CITY OF DUBLIN RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2002 Net Change in Fund Balances ~ Total Governmental Funds $ 17,093,238 Amounts reported for governmental activities in the Statement of Activities differs from the amounts reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the costs of ~hose assets is allocated over their estimated useful lives as depreciation expense or are allocated to the appropriate functional expense when the cost is below the capitalization threshhold. This amount represents the cost of assets capitalized less depreciation expense. 3,435,883 Principal payments on long-term debt are recorded as expenditures in governmental funds. These payments reduce the liability at the government-wide level and do not affect the Statement of Activities. 251,004 Internal service funds are used by management to charge the costs of certain activities, such as asset replacement and retiree health care, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities. 9,080,724 Change in Net Assets of Governmental Activities $ 29,860,849 See accompanying notes to financial statements. 21 CITY OF DUBLIN STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2002 Vai'iance with Final Budget- Budgeted Amounts Actual Positive REVENUE~ Or!ginal Final Amounts (Negative) Property taxes $ 8,258,100 $ 8,258,100 $ 8,794,712 $ 536,612 Taxes other than property 15,939,830 15,939,830 15,443,977 (495,853) Licenses and permits 2,957,140 2,957,140 2,327,251 (629,889) Intergovermnental 1,948,150 1,948,150 2,076,649 I28,499 Charges for services 3,859,216 4,792,586 4,464,260 (328,326) Interest 1,688,988 1,688,988 1,843,674 154,686 Use of property 98,590 98,590 85,937 (12,653) Fines and forfeitures 102,000 102,000 118,191 16,191 Other revenue 978,239 880,972 493,723 (387,249) Total Revenues 35,830,253 36,666,356 .35,648,374 (1,017,982) EXPENDITURES Current: General government 3,888,202 4,225,914 3,929;919 295,995 Public safety 11,750,655 11,808,935 11,608,468 200,467 Highways and streets 1,121,336 1,127,147 1,094,100 33,047 Health and we lfare 64,495 64,495 52,015 12,480 Culture and Ieisure 4,251,174 4,354,294 4,012,730 341,564 Community development 5,618,130 5,594,915 4,643,652 951,263 Capital outlay General 4,042,237 6,095,010 4,582,889 1,512,121 Community improvement 1,170,874 1,198,376 273,285 925,091 Parks 400,969 414,859 100,849 314,010 Streets 961,108 942,893 580,010 362,883 Debt SerVice Principal 251,004 251,004 251,004 Total Expenditures 33,520,184 36,077,842 31,128,921 .4,948,921 Excess of Revenues Over Expenditures 2,310,069 588,514 4,519,453 3,930,939 OTHER FINANCING SOURCES (USES) Transfers in 22,215 22,215 16,785 (5,430) Total Other Financing Sources 22,215 22,215 16,785 (5,430) Net Change in Fund Balance 2,332,284 610,729 4,536,238 3,925,509 Fund Balance, Beginning of Year ... 34,789,823 34,789,823 34,789,823 Fund Balance, End of Year (Note #7) $ 37,122,10._~7 $ 35,400,552 $ 39,326,061 $ 3,925,509 See accompanying notes to financial statements. 22 CITY OF DUBLIN PRopRIETARY FUNDS STATEMENT OF NET ASSETS JUNE 30, 2002 \ Governmental Activities - Internal Service ASSETS Funds Current Assets Cash and iavestments $ 6,352,062 Receivable: Accounts 1,191 Total Current Assets 6,353,253 Noncurrent Assets Land 6,842,037 Construction in progress 9,738,800 Buildings and improvements 23,246,806 Machinery and equipment 4,000,609 Less: accumulated depreciation (7,644,293) Total Noncurrent Assets 36,183,959 Total Assets 42,537,212 LIABILITIES Current Liabilities Accounts payable 40,026 Total Liabilities 40,026 NET ASSETS Invested in capital assets 36,183,959 Unrestricted 6, 313,227 TotalNet Assets $ 42,497,186 See accompanying notes to financial statements. 23 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2002 Governmental Activities - Internal Service OPERATING REVENUES Funds Charges for services Other revenue $ 1,103,650 22,267 Total Operating Revenues 1,125,917 OPERATING EXPENSES Supplies and services 224,567 Depreciation 1,113,722 Total Operating Expenses 1,338,289 Operating Loss (212,372) NONOPERATING REVENUES Interest income 262,598 Income Before Contributions 50,226 CONTRIBUTIONS 9,030,498 Change in Net Assets 9,080,724 Total Net Assets, Beginning of Year 27,517,849 Prior Period Adjustment 5,898,613 Total Net Assets, End of Year $ 42,497,186 See accompanying notes to financial statements. 24 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2002 Governmental Activities - Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 1,131,221 Payments to suppliers (I 99,682) NET CASH PROVIDED BY OPERATING ACTIVITIES 931,539 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Fixed asset purchases (219,304} CASH FLOWS FROM INVESTING ACTIVITIES Interest received 262,598 NET INCREASE IN CASH AND CASH EQUIVALENTS 974,833 CASH AND CASH EQUIVALENTS', Beginning of Year 5,377,229 CASH AND CASH EQUIVALENTS, End of Year $ 6,352,062 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating toss $ (212,372) Adjustments to reconcile operating income to cash flows from operating activities: Depreciation 1,113,722 Net effect of changes in: Accounts receivable 5,304 Accounts payable 24,885 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 931,539 NONCASH CAPITAL FINANCING ACTIVITIES Contributed fixed assets $ 14,929,111 See accompanying notes to financial statements. 25 CITY OF DUBLIN FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET ASSETS JUNE 30, 2002 ASSETS Agency Fund Cash and investments $ 187,509 Restricted cash and investments 170,522 Total Assets $ 358,031 LIABILITIES Due to bondholders $ 358,031 Total Liabilities $ 358,031 See accompanying notes to financial statements. 26 NOTES TO FINANCIAL STATEMENTS CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 50, 2002 NOTE gl -SUMMARY OF SIGNIF[CANT ACCOUNT, tNG POLICIES The accounting policies of the City of Dublin conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles. In June 1999, the GASB unanimously approved Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis -for State and Local Governments. The significant changes in the Statement include the following: · A change in the fund financial statements to focus on the major funds. · For the first time the financial statements include: · A Management Discussion and Analysis (MD&A) section providing an analysis of the City's overall financial position and results of operations. · Financial statements prepared using full accrual accounting for all of the City's activities, including infrastructure (roads, traffic signals, etc.) and long-term debt. These and other changes are reflected in the accompanying financial statements (including the notes to financial statements). The City has elected to defer retroactive reporting of infrastructure (assets acquired prior to July 1, 2001) to a future year as provided for by the statement. The City plans to report these assets at June 30, 2003. A. ..R. eporting EntiOt The City of Dublin is a residential community with a significant regional commercial base, located in the Tri- Valley area of Alameda County, California at the crossroads of Interstate Freeways 580 and 680. The City was incorporated as a municipal corporation February 1, 1982. The population at January 1, 2002, was 33,520, including prisoners housed at the Alameda County Sheriff's Department Santa Rita Jail and the Federal Correctional Institute. 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, 2002, the City's staff was comprised of 76 full-time employees who were responsible for City-provided services. In addition, the City employs approximately 30- 75 seasonal recreation personnel. The City provides many traditional municipal services through contracts with both public and private entities. Approximately 104 contract employees provide a variety of municipal services from City facilities. 27 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The basic financial statements of the City of Dublin include the financial activities of the City as well as Dublin Information, Inc. (DII). DII is a separate legal entity, which assists in providing financing to the City. DII is governed by the same governing board as the City plus the City Manager and Assistant City Manager and is dependent on the City for its cash flows. If financial activity had occurred within DII it would have been aggregated and merged (termed 'blended') with those of thc ~ity in the Dublin Information, Inc. The ownership of assets previously owned by DII was transferred to the City as of February 1, 1999, in conjunction with the early retirement of the 1993 COPs. There was no activity during the fiscal year 2001- 2002. B. Description o_fFunds The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and exp&nditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped in the basic financial statements as follows: .GOVERNMENTAL FUND TYPES General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. * 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. o Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of mai or capital facilities (other than those financed by proprietary funds). _PROPRIETARY FUND TYPES · Internal Service Funds are used to account for the financing of goods provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis. FDUCIARY FUND TYPE · Agency Funds are used to account for assets held by the City as an agent for individuals, private orgmfizations, other governments and/or other funds, in accordance with the conditions of the agreements. Agency funds are purely custodial and thus do not involve measurement of results of operations. 28 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #1 - SUMM,4R Y OF SIGNIFIC,4NT~4CCOUNTING POLICIES (Continued) C. Basis Of Accounting~Measurement Focus Government- Wide Financial Statements The City Government-Wide Financial Statements include a Statement of Net Assets and a Statement of Activities (including changes in Net Assets). These statements present summaries of Governmental Activities for the City. Fiduciary activities of the City are not included in these statements. These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets and infrastructure as well as long-term debt, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. The types of program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Charges for services include revenues from customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. Grant and contributions include revenues restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenue are reported instead as general revenue. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Assets have been eliminated. Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenue, Expenditures, and Changes in Fund Balances for all major governmental funds and aggregated non-major funds. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the Government-Wide Financial Statements. The City has presented the Traffic Impact Fee Capital Projects Fund as major because it met the qualifications of GASB Statement No. 34. In addition, the City has elected to present the following funds as major because of their significance to the City as a whole: the Public Facilities Fees Capital Projects Fund, the Park Dedication Fees Capital Projects Fund, and the Fire Impact Fees Capital Projects Fund. 29 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #1 - SUMMARY OF SIGNIFICANT A CCO UNTING POLICIES (Continued) All governmental funds are accounted for on a spending or financial flow measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is their net current assets, which is considered only to be a measure of available spendable resources. Governmental fund operating statements present a summary of sources and uses of available spendable resources during a period by presenting increases and decreases in net current assets. Under modified accrual basis of accounting, revenues are recognized in the accounting period in which they both become measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (generally 60-days after year-end) are recognized when due. Those revenues susceptible to accrual are property taxes, sales taxes, transient occupancy taxes, interest revenues, and charges for services. Fines, licenses, use of property and permit revenues are not susceptible to accrual because they generally are not measurable until received in cash. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on general long term obligations which are recognized when due. Because of their current financial resoumes focus, expenditure recognition for govermnental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund expenditures or fund liabilities. The City reports the following major governmental funds: 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 Traffic Impact Fees Capital Projects Fund is used to account for fees received from developers of properties, which can only be used for the design, development and construction of street projects within the City. The Public Facilities 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 Park Dedication Fees Capital Projects Fund is used to account for park dedication fees received in lieu of property from developers pursuant to the Quimby Act. The Fire Impact Fees Capital Projects Fund is used to account for fees received from developers of properties, which can only be used for the design, deyelopment, and construction of fire capital expansion projects within the City. 30 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cbntinued) Proprietary Fund Financial Statements Proprietary funds financial statements include a Statement of Net Assets, a Statement of Revenues, Expenses, and Changes in Net Assets, and a Statement of Cash Flows. Alt proprietary fund types are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. Proprietary funds are accounted for on a cost of services or capital maintenance measurement focus, which means that all assets and all liabilities associated with their activity are included on the Statement of Net Assets. The City's internal service funds are presented in the proprietary fund financial statements. Because the principal users of the internal services are the City's governmental activities, the financial information of the internal service funds are consolidated into the governmental activities column when presented in the government-wide financial statements. To the extent possible, the cost of these services is reported in the appropriate functional activity. The City reports the following proprietary funds: Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other department or agencies of the City on a cost-reimbursement basis. The City uses internal service funds to account for asset replacement and post-retirement health care activities. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's proprietary funds are charges to customers for services. Operating expenses include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. In accordance with GASB Statement No. 20, for proprietary fund accounting, the City applies all applicable GASB pronouncements and all applicable FASB Statements and Interpretations, Accounting Principles Board (APB) Opinions and Accounting Research Bulletins (ARB) issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. The City also applies all FASB Statements and Interpretations issued after November 30, 1989, except for those that conflict with or contradict GASB pronouncements. Fiduciary Fund Financial Statements Fiduciary Fund Financial Statements include a Statement of Net Assets. The fiduciarY funds are used to report assets held in a trustee or agency capacity for others and therefore are not available to support City programs. The reporting focus is on net assets and changes in net assets and are reported using accounting principles similar to proprietary funds. Since these assets are being held for the benefit ora third party, these funds are not incorporated into the government-wide statements. 31 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City's only fiduciary fund is an agency fund, which is used to account for amounts held for debt service on the Dublin Boulevard Extension Special Assessment District. 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. D. Capital Assets Depreciation, and Long-Term Liabilities 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 colurm~s of the Government-Wide Financial Statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $1,000. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair market value on the date donated. Capital assets are depreciated over their estimated useful lives using the straight-line method. This means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets over the useful life of these assets. The amount charged to depreciation expense each year represents that year's pro rata share of the cost of capital assets. Depreciation of capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, is reported on the Statement of Net Assets of the Government-Wide Financial Statements as a reduction in the book value of the capital assets. The City has assigned the useful lives listed below to capital assets. Buildings and improvements 37.5 Years Machinery and equipment 3-15 Years Infrastructure Streets 30 Years GASB Statement No. 34 requires the City to report and depreciate new infrastructure assets effective with the beginning of the current year. Infrastructure assets include roads, bridges, sidewalks, curbs and gutters, park improvements, traffic siguals, etc. Neither their historical cost nor related depreciation has historically been reported in the financial statements. The retroactive reporting of infrastructure is subject to an extended implementation period and is first effective for fiscal years ending 2006. The City has deferred implementation of the retroactive reporting of infrastructure and plans to do so during the fiscal year ending June 30, 2003. 32 ~ CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E, Budgets and Budgeta~_ Accounting The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: 1. 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. 2. The public is given an opportunity to comment on the budget at a noticed City Council meeting. 3. Prior to July 1, the budget is legally enacted through passage of a resolution. 4. The City Manager is authorized to transfer budgeted amounts between line items within any department. Any revisions, which alter total departmental expenditures of the City must be approved by City Council except as follows: The City Manager will bc allowed to transfer funds from the contingent reserve to operating department's salary related and health and welfare accounts when required due to employee turnover or change in status, City Council approved funding for increases in employees salaries and benefits, and City Council approved funding for increases in contract or labor rates. Expenditures may not exceed budgeted appropriations at the departmental level without City Council approval. 5. Formal budgetary integration is employed as a management control device during the year for tl~e general fund, special revenue funds and capital projects funds. 6. Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America. 7. Ail unexpended appropriations lapse at the end of the fiscal year. F. Cash Flows Proprietary fund type cash and investments are used in the preparation of the statement of cash flows as investments are not allocated to specific funds. Each of these funds' allocation of pooled cash and investments is considered cash and cash equivalents. 33 : CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) G. Investments' The city has adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No 31, "Accounting and Financial Reporting for Certain Investments and External Pools", which require governmental entities to report certain investments at fair value in the balance sheet and recognize the corresponding change in the fair value of investments in the year in which the change occurred. In accordance with GASB Statement No. 31, the'City has adjusted certain investments to fair value (when material). H. 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 City revised the plan to no longer make the funds available to the City's general creditors and accordingly, the City does not report the assets in the financial statements. L Property Tax Alameda County assesses properties and bills, collects, and distributes property taxes to the City. The County remits the entire amount paid and handles all delinquencies. The City receives proportionate shares of prior year collections including retaining interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. Secured property tax is due in two installments, on November 1 and March 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1, and becomes delinquent on August 31. The term 'unsecured' refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenues are recognized by the City in the fiscal year they are assessed provided they become available within 60 days of year-end. J. Accumulated Unpaid General Leave The City accounts for I00 percent of the liability for accumulated unpaid general leave in the General Fund since the City's policy is to liquidate any unpaid general leave from currently available expendable resources rather than future resources. The City offers its employees general leave benefits, which are composed of time off for illnesses and vacations. Employees receive benefits in the form of time off or in cash if employment with the City ceases. CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #1 -SUMMAR Y OF SIGNIFICANT ACCOUNTING POLICIES (Continued) K. Post Employment Health Care Benefits The City provides certain health care benefits for 24 retirees as required under a contract signed with PERS. All former employees who retire with the City under PERS are eligible for these benefits. The cost of retiree health care benefits is recognized as an expenditure as premiums are paid. For the year ended June 30, 2002 those costs totaled $82,466. £. Deferred Revenue Deferred revenues are recorded in governmental funds to the extent that cash is received but the measurable and availability revenue recognition criteria is not met. M. Use o_f 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. NOTE #2 - CASH AND INVESTMENTS The City pools cash from all sources and all funds except that held by fiscal agents under debt indentures so that it can be safely invested at maximum yields, consistent with safety and liquidity, while individual funds can make expenditures at any time. Cash and Investment Summary Cash $ 509,177 Investments 95,094,020 Total $ 95,603,197 Cash and investments are reported in the funds as follows: Governmental funds $ 88,893,104 Proprietary funds 6,352,062 Fiduciary funds Restricted 170,522 Unrestricted 187,509 Total $ 95,603,197 The cash and investments of the fiduciary funds are not included in the government-wide financial statements. 35 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #2 - CASH AND INVESTMENTS (Continued) A. Cash Deposits and Collateral BANK BALANCE CATEGORY CARRYING 1 2 3 TOTAL AMOUNT Categorized Cash in banks $ I00,000 $ 337,338 $ 437,338 $ 408,877 Certificates of deposit 99,000 99,000 99,000 Total Deposits $199,000 $ $ 337,338 $ 536,338 507,877 Uncategorized: Petty cash 1,300 Total Cash $ 509,177 California law requires banks and savings and loan institutions to pledge government securities with a market value of 110 percent of the deposit or first trust deed mortgage notes with a value of 150 percent of the deposit, as collateral for all municipal deposits. This collateral places the City ahead of general creditors of the institution. The City has waived collateral requirements for the portion of deposits covered by federal deposit insurance. These categories are as follows: Category 1: Cash on hand or insured by the Federal Deposit Insurance Corporation or collateralized With securities held by the City or by its agent in the City's name. Category 2: Collateralized with securities held by the pledging financial institution's trust department or agent in the City's name. Category 3: Uncollateralized - (This includes any bank balance that is collateralized with securities held by the pledging financial institution or by its trust department or agent but not in the City's name). B. .Categorization o~f Credit Risk o_f Securities Instrumentx The GASB issued Statement No. 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools," effective for periods beginning after June 15, 1997. The statement generally applies to investments in external investment pools, investments purchased with maturities greater than one year, mutual funds, and certain investment agreements. Generally, governmental entitles need to report the "fair value" changes for these investments at year-end and records these gains or losses on their income Statement. 36 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #2 - C~4SH AND INVESTMENTS (Continued) Methods and assumptions used to estimate fair value: The City maintains investment accounting records on amortized cost and adjusts those records to 'fair value' on an annual basis. The City's investment custodian provides market values on each investment instrument on a monthly basis. The investments h'eld by the City are widely traded in the financial markets and trading values are readily available from numerous published sources. Unrealized gains and losses are recorded on an annual basis and the carrying value of its investments is considered 'fair value'. State of California State Treasurer's Local Agency Investment Fund ('LAIF'): The City holds an investment in LAIF that is subject to being adjusted to "fair value". The City is required to disclose its methods and assumptions used to estimate the fair value of its holdings in LAIF. The City relied upon information provided by the State Treasurer in estimating the City's fair value position of its holdings in LAIF. The City had a contractual withdrawal value of $39,714,622 whose pro-rata share of fair value was estimated by the State Treasurer to be $39,825,034. The fair value change in this investment for the year came to an amount that was not material for presentation in the financial statements. The State Treasurer's Local Agency Investment Fund ("LAW") is a governmental investment pool managed and directed by the California State Treasurer and is not registered with the Securities and Exchange Commission. An oversight committee, comprised of California State officials and various participants, provide oversight to the management of the fund. The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer's office. The City is a voluntary participant in the investment pool. CATEGORY REPORTED FAIR 1 2 3 AMOUNT VALUE Investments: Categorized U.S. Government Agency Securities $ 44,928,199 ~ .. $ 44,928,199 $ 44,928,199 Total Categorized Investments $ 44,928,199 $ $ 44,928,199 44,928,199 Uncategorized: Local Agency Investment Fund (LAIF) (I) (2) 39,714,622 39,825,034 Morgan Stanley/Dean Witter U.S. Govermnent Securities Mutual Fund (2) 1,632,162 1,632,162 Nations Bank Government Reserves Capital Fund (2) 7,188,000 7,188,000 U.S. Treasury Money Market Funds (2) 1,631,037 1,631,037 Total Uncategorized Investments 50,165,821 50~276,233 Grand Total Investments $ 95,094,020 $ 95,204,432 (1) The management of the State of California Pooled Money Investment Account (generally referred to as LAIF) has indicated to the City that as of June 30, 2002, the amortized cost of the pool was $47,756,784,489 and the fair value for the pool was $47,889,555,193. Included in LAI~'s investment portfolio are certain derivative securities or similar products in the form of structured notes, totaling $551,578,000 and asset-backed securities, totaling $921,063,000. LAIF% (and the City's) exposure to risk (credit, market or legal) is not currently available. 37 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #2 - CASH f4ND INVESTMENTS (Continued) (2) Pooled Investments - Pooled investments are not categorized because of their pooled, rather than individual, nature. The City categorizes its individual securities instruments in ascending order to reflect the relative risk of loss of these instruments. This risk is called Credit Risk, the lower the number, the lower the risk. The three levels of risk prescribed by accounting principles generally accepted in the United States of America are described below: Category 1: Insured or registered for which securities are held by the City or its agent in the City's name. Category2: Uninsured and unregistered for which securities are held by the counterparty's trust department or agent in the City's name. Category 3: Uninsured and unregistered for which securities are held by the counterparty's trust or its trust department or agent but not in the City's name. C. Authorized Investments The City's investment policy and the California Government Code allow the City to invest in the following tYPes of investments, subject to certain limitations as described in the City's investment policy: Securities of the U.S. Government, or its agencies Certificates of Deposit Bankers Acceptances Local Agency Investment Fund (State Pool) Deposits Repurchase Agreements Commercial Paper Mutual Funds D. Market 2~isk and Investment Maturities The City limits market risk by limiting the tYPes and maturities of its investments and by not borrowing against its investments. Investment yield is ranked after safety and liquidity in making investment decisions. All investments are held to maturity and maturities are matched to the City's projected cash flow needs. Investments matured as follows at June 30: 2002 Available immediately $ 50,165,821 Maturities of less than one year 4,054,060 Maturities of one to five years 40,874,139 Total $ 95,094,020 38 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #2 - CASH AND INVESTMENTS (Continued) E. Return on Investments The City's return on investments comprises only interest income; there were no gains or losses on sales of securities since all were held to maturity. This income is allocated among funds on the basis of their average month-end cash and investment balances. NOTE #3 - INTERFUND TRANSACTIONS A. Interfund Balances During the normal course of business the General Fund may advance money to other funds to cover deficit cash balances caused by expenditures for reimbursement type grants. When the reimbursement is received, normally shortly after year-end, the interfunds liabilities is liquidated. The following 'interfund balances existed at June 30, 2002: Interfund Receivable Interfund Payable Amount Nonmajor Special Revenue Funds: General Fund Federal Police Grant $ 18,886 General Fund OTS Grant 3,702 General Fund Community Development Block Grant 48,108 General Fund Intermodal Surface Transportation General Fund Efficiency Act 501,474 General Fund State Transportation Improvement 189,312 General Fund Garbage Service 4,549 General Fund CMA Grant 358,932 Total $ 1,124,963 B. Inter_fund Transfers With Council approval, resoumes may be transferred from one City fund to another. Transfers are used to move revenue from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them. Interfund transfers for the year ended June 30, 2002, consisted of the following: Fund Receiving Transfer Fund Making Transfer Amount Noranajor Special Revenue Funds: General Fund Vehicle Abatement $ 8,696 General Fund Community Development Block Grant 6,600 General Fund FEMA 438 General Fund Storm Water Runoff 1,051 Total $ 16,785 39 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #4 - CAPITAL ASSETS In accordance with GASB 34, the City has reported all capital assets including infrastructure in the Government- Wide Statement of Net Assets. The City has elected to use the basic approach as defined by GASB Statement No. 34 for all infrastructure reporting, whereby depreciation expense and accumulated depreciation has been recorded. The City has elected to use the deferral period for the retroactive reporting of infrastructure values (infrastructure constructed or acquired prior to July 1, 2001) as provided for by GASB Statement No. 34. The plan is to report these values at June 30, 2003. 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. Capital asset activity for the year ended June 30, 2002, was as follows: Balance Beginning of Balance Year Increases Decreases End of Year Capital Assets, Not Being Depreciated: Land $ 9,775,002 $ 9,775,002 Streets Right of Way $ 580,739 580,739 Construction in progress 1,156,188 10,177,487 11,333,675 Total CapitaI Assets, Not Being Depreciated 10,93 I,I 90 10,758,226 21,689,416 Capital Assets, Being Depreciated: Infrastructure 1,309,510 1,309,510 Buildings and improvements 23,369,853 172,227 23,542,080 Equipment 4,154,465 567,823 $ (185,347) 4,536,941 Total Capital Assets, Being Depreciated 27,524,318 2,049,560 (185,347) 29,388,531 Less Accumulated Depreciation For: Infrastructure (45,108) (45,108) Buildings and improvements (4,954,797) (703,324) (5,658,121) Equipment (2,111,773) (487,393) 185,347 (2,413,819) Total Accumulated Depreciation (7,066,570) .. (1,235,825) 185,347 (8,117,048) Total Capital Assets Being Depreciated, Net 20,457,748 813,735 21,271,483 Governmental Activities Capital Assets, Net $ 31,388,938 $ 11,571,961 $ $ 42,960,899 Depreciation expense was charged to functions/programs of the primary government as follows: General Government $ 67,15 3 Highways and Streets 45,108 Culture and Leisure 9,842 Capital assets held by the City's internal service funds are charged to the various functions based on their usage of the assets 1,113,722 Total Depreciation Expense - Governmental Activities $ 1,235,825 40 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #5- LONG TERM OBLIGATIONS The City generally incurs long-term debt to finance projects or purchase assets, which will have useful lives equal to or greater than the related debt. The City's debt issues and transactions are summarized below and discussed in detail subsequently. A. Long-Term Debt Changes in long-term debt for the year ended June 30, 2002 are as follows: Balance Balance July 1, 2001 Additions Retirements June 30, 2002 Dublin Unified School District $ 251,004 $ (251,004) $ The City has entered into an agreement with the Dublin Unified School District to provide construction and annual funding assistance with the maintenance costs of a gymnasium. The City.will reimburse the District for part of the cost of the construction of the gym in the amount of $1,004,016 in four equal annual payments beginning in Fiscal Year 1998-99. During the year ended June 30, 2002, the fourth and final payment of $251,004 was made. The reimbursement was repaid out of the General Fund. B. SpeciaI Assessment District Debt The Dublin Boulevard Extension Special Assessment District, formed within City limits, had outstanding debt with a balance of $1,67 t,000 at June 30, 2002. Proceeds of the debt were used to~ finance improvements within District boundaries. The City has no legal, contingent or moral obligation for the repayment of this debt and acts solely as the collecting and paying agent for the District and activities of the District are reported in the Dublin Boulevard Extension Assessment District Agency Fund. NOTE #6- CLASSIFICATION OF NET ASSETS In the Goverranent-Wide financial statements net assets are classified in the £ollowing categories: Invested in Capital Assets This category groups all capital assets, including infrastructure, into one component of net assets. Accumulated depreciation on these assets reduces this category. Restricted Net Assets This category presents the external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. 41 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #6- CLASSIFICATION OF NET ASSETS (Continued) Unrestricted Net Assets This category represents the net assets of the City that are not restricted for any project or other purpose. This balance consists primarily of unreserved General Fund fund balance and unrestricted Internal Services Fund net assets. See Note #7 for additional information on unreserved General Fund fund balance. NOTE #7- CLASSIFICATION OF FUND BALANCE In the Fund financial statements, fund equity consists of reserved and unreserved amounts. Reserved fund equity represents that portion of a fund balance or net assets, which has been appropriated for expenditure or is legally segregated for a specific future use. The remaining portion is unreserved. Fund balances are reserved as follows: · Reserve for prepaid expenditures is the portion of fund balance set aside to indicate that these items do not represent available, spendable resources even though they are a component of assets. · Designated for cemetery endowment is the portion of fund balance to be retained. This represents funds transferred by the Dublin Cemetery Association, when the City acquired the cemetery. · Reserve for recycling programs is the portion of the fund balances set aside for revenue received from the Alameda County Waste Management Authority to be used solely for recycling. · Reserve for public safety programs represents the net amounts available from grant and other sources restricted to use on public safety programs. · Reserve for street maintenance and construction represents amounts available and restricted to use on projects related to street maintenance and construction. · Reserve for health and welfare programs includes amounts restricted for use on programs including housing, noise mitigation, and garbage services. · Reserve for community development programs includes amounts restricted for the development of bicycle and pedestrian paths and walkways throughout the City. · Reserve for capital improvement projects represents amounts collected from developers to be spent on specific projects impacted by the development. 42 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #7- CLASSIFICATION OF FUND BALANCE (Continued) A portion of unreserved fund balance may be designated to indicate plans for financial resource use in a future period, such as for general contingencies or capital projects. The General Fund had the following components of unreserved fund balance at June 30, 2002. General Fund: Designated Economic uncertainty $ 1,369,133 Downtown improvements/Open space 2,215,956 Library 7,369 Senior center 2,135,910 Emerald Glen fire station 2,552,324 Senior center van 50,000 Energy projects 715,781 Capital improvement project carryovers 2,032,767 Affordable housing 626,360 Authorized expenditures 27,545,240 Total General Fund Unreserved Fund Balance $ 39,250,840 · Designated for economic uncertainty is the portion of fund balance to be used in the event of economic uncertainty. · Designated for senior center, library, downtown improvements and open space, senior center van, Emerald Glen fire station, affordable housing, and capital improvement project carryovers are the portions of fund balance to be used to partially fund these projects in future years. NOTE #8 - JOINT POWERS AGREEMENTS The City pmticipates in joint ventures with other municipal entities through Joint Powers Agreements (JPAs) established under the Joint Exercise of Powers Act of the State of California. Joint Ventures 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 property. Certificates of Participation were issued to construct the facility. Under the agreement the entities will share in the debt service costs of the project based upon their use of the animal shelter. The original total principal portion of the scheduled debt is $4,523,877. Dublin's share for the 2001-2002 fiscal year, based upon the statistics of live animals handled in the shelter in calendar year 1999, was $39,426 representing 11.5 percent of the debt service requirements. In addition, $99,510 was paid for the City's share of operating expenses. 43 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #8 - JOINT POWERS AGREEMENTS (Continued) 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. NOTE #9- RISK MANAGEMENT A. Risk Pool The City participates in the ABAG PLAN Corporation, which covers general liability claims in an amount up to $10,000,000 and property insurance coverage for members up to $l,000,000,000. The City has a deductible or uninsured liability for general liability of up to $50,000 per claim. The deductible for property claims is $5,000 per occurrence, excluding auto claims, which have a $10,000 deductible. Once the City's deductible is met ABAG PLAN becomes responsible for payment of all claims up to the limit. During the fiscal year ended June 30, 2002, the City contributed $1 I8,599 for current year coverage and received a refund of $28,893 of prior years excess contributions. A_BAG PLAN is governed by a board consisting of representatives from member municipalities. The board controls the operations of ABAG PLAN including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board. The City's contributions to ABAG PLAN for liability coverage are based on a formula which considers the ratio of the City's payroll to the total payrolls of all entities participating in the same layer of each program, in each program year's loss history and population. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. There have been no significant reductions in any of the City's areas of insurance coverage and no settlement amounts have exceeded coverage. Audited financial information for ABAG PLAN can be obtained from ABAG PLAN, P.O. Box 2050, Oakland, CA 94604-2050. B. Liabili~_ for Uninsured Claims-Adoption qf GASB Statement No. 10 The GASB requires municipalities to record their liability for uninsured claims and to reflect the current portion of this liability as an expenditure in their financial statements. As discussed, above, the City has coverage for such claims, but it has retained the risk for the deductible, or uninsured portion of these claims in the ABAG PLAN. 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. 44 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #9- RISK MANAGEMENT (Continued) The City's liability for uninsured claims, limited to general liability claims as discussed above, includes a provision for IBNR losses. This amount was estimated based on claims experience. Since incorporation in 1982, the City has never had a loss which exceeded the amount of insurance coverage. The claim liability for the current and prior years are as follows: June 30, 2002 June 30, 2001 Beginning balance $ 137,210 $ 137,210 Provision for claims 61,460 47,664 Claims paid (61,460) (47,664) Ending balance $ 137,210 $ 137,210 The City has obtained a workers' compensation insurance policy from the State Compensation Insurance Fund, which has no deductible. NOTE iii 0 - PENSION PLAN A. PERS Plan Description. The City of Dublin's defined benefit pension plan, (Miscellaneous Plan), provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The Miscellaneous Plan is part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), 'an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements are established by State statutes within the Public Employees' Retirement Law. The City of Dublin selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance or resolution. CalPERS issues a separate comprehensive annual financial report. Copies of the CalPERS's annual financial report may be obtained from the CalPERS Executive Office - 400 P Street - Sacramento, California, 95814. Funding Policy. Active plan members in the Miscellaneous Plan are required to contribute 7 percent of their annual covered salary, which the City pays on behalf of the employees. The City of Dublin is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rate for Fiscal Year 2001-2002 was 3.148 percent for miscellaneous employees. (Dublin has only miscellaneous employees.) The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by CalPERS. 45 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NO TE #10 - PENSION PLAN (Continued) Annual Pension Cost. For Fiscal Year 2001-2002, the City of Dublin's annual pension cost was $489,099 and was equal to the City's required and actual contributions. The required contribution for Fiscal Year 2001-2002 was determined as part of the June 30, 2000, actuarial valuation (the most recent year available) using the entry age normal actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions included (a) 8.5 percent investment rate of return (net of administrative expenses); (b) projected salary increases that vary by duration of service ranging from 4.5 percent to 14.95 percent for miscellaneous members; and (c) zero percent cost-of-living adjustment. Both (a) and (b) include an inflation component of 4.5 percent. The actuarial value of Miscellaneous Plan's assets was determined using a technique that smoothes the effect of short-term volatility in the market value of investments over a two to five year per/od depending on the size of investment gains and/or losses. Miscellaneous Plan's unfunded actuarial accrued liability (or excess assets) is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization period ends June 30, 2011. Three-year Trend Information for the Miscellaneous Plan Annual Percentage Fiscal Year Pension Cost of APC Net Pension Ending (APC) Contributed Obligation 6/30/2000 $ 267,564 100% $ 0 6/30/2001 $ 419,314 100% $ 0 6/30/2002 $ 489,099 100% $ 0 B. Social Security The Omnibus Budget Reconciliation Act of 1990 (OBRA) mandates that public sector employees who are not members of their employer's existing retirement system as of January 1, 1992 be covered by either Social Security or an alternative plan. The City's part-time, seasonal and temporary employees are covered under Social Security, which requires these employees and the City to each contribute 6.2 percent of the employees' pay. NOTE #11 - COMMITMENT AND CONTINGENT LIABILITIES A. Grant Programs The City participates in several Federal and State grant programs. No cost disallowances were proposed as a result of the City's financial audit; 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. 46 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #11 - COMMITMENT AND CONTINGENT LIABILITIES (Continued) B. Litigation The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation, which is likely to have a material adverse effect on the financial position of the City. C. Reimbursements to Ci_ty of Pleasanton On January 23, 1996, the City of Dublin adopted a fee for the purpose of reimbursing the City of Pleasanton for the costs of making improvements to the interchanges on Interstate 580 at Hacienda Drive and Tassajara Road/Santa Rita Road that benefit development in both Pleasanton and future development in Eastern Dublin. This reimbursement will occur through the assessment of fees on future development projects in the City of 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, 2002, was $5,756,028, which is net of the. $246,464 in payments made by the City of Dublin 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. The City has also entered into an agreement with the City of Pleasanton for the reimbursement of the cost of construction of a two-lane access road and the extension of Hacienda Drive. The advance as of June 30, 2002, is $3,063,260, which includes $147,477 interest and $185,188 in repayments for the current year. Interest accrues on the reimbursement at 7.48 percent per year. The reimbursement is to be repaid from proceeds of assessments, special taxes or fees imposed on the property east of Dougherty Road with no specific due date. The City's General Fund shall not be obligated to repay this obligation. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for reimbursement of these improvements. D. BARTAgreement In 1990, the City and Bay Area Rapid Transit District (BART) entered into a Settlement Agreement regarding the City's extension of Dublin Boulevard to the extension of Hacienda Drive. BART advanced the City $2,285,000 to purchase land and construct the road extensions. The advance was structured with two components: a Short Term and a Long Term Advance. These projects are now complete. Short Term Advance: The amount provided as a Short-Term Advance came due on December 31, 1995. In accordance with a separate agreement, the Alameda County Surplus Property Authority repaid this amount. See the related note on the Alameda County Surplus Property Authority below. 47 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #11 - COMMITMENT AND CONTINGENT LIABILITIES (Continued) Long Term Advance: BART% long term advance to the City, including accrued interest as of June 30, 2002 is $1,926,469, which has no specific due date. Under the City's Agreement with BART, interest on the advance accrues at a rate based on BARTts average rate of return on its investments. During the year ended June 30, 2002 unpaid interest incurred was added to the balance owed in the amount of $99;883. The City expects to repay principal and interest on BART's advance out of developer fees, charges and other non-tax revenues generated by future development in tl~e area of the BART station. The agreement states that in no event is the advance to be repaid from the City's General fund or from general revenues. The Agreement provides for the forgiveness by BART of any principal or interest still outstanding on March 27, 2010. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for repayment of the advance. E. Alameda Coun_ty Surplus Proper_tV Authori_tv The City entered into an agreement with the Alameda County Surplus Property Authority for the repayment of the City's Short Term BART Advance by the Authority. Under the terms of the agreement, interest on the advance shall accrue at a rate based on the Alameda County Treasurers return on investments. As of June 30, 2002, the advance is $2,132,050, which includes accrued interest of $69,109 for the current year, The advance is to be repaid from developer fees, charges, and other non-tax revenues from the benefiting area and has no specific due date. The City's General Fund shall not be obligated to repay this obligation. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for repayment of the advance. F. Other Development Agreements The City of Dublin 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 do not increase for inflation nor do they accrue interest. Any unused credits may be used by the developers on other projects located elsewhere in the City. The value of the credits as of June 30, 2002, was $37,804,953. For the current year, additions to the credits amounted to $12,556,529 and credits used amounted to $3,196,084. The accounting for the amounts due are not recorded as indebtedness since the payments (use of the credits) are contingent upon the collection of development fees from building growth that has not yet occurred. 48 CITY OF DUBLIN NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 NOTE #12-PRIOR PERIOD ADJUSTMENTS The City has recorded prior period adjustments in each of the capital projects funds and the housing and noise mitigation special revenue fund to change the way that development impact fees are accounted for. Prior to July I, 2001 development impact fees received by the funds were recorded as deferred revenue until they were spent, at which time the deferred revenue was taken into revenue. The developer fees are considered earned at the time they are received and should not be deferred until future expenditures are made. As a result, prior period adjustments were recorded for the beginning balances of the deferred revenue accounts in each of the impact fee funds as follows: Amount Capital Projects Funds Traffic Impact Fees $ 11,483,742 Public Facilities Fees 8,637,710 Park Dedication Fees 18, i 25 Fire Impact Fees 1,083,523 Special Revenue Fund Housing and Noise Mitigation 5,885,494 Total Adjustment $ 27,108,594 The total effect of these adjustments is also an adjustment to the government-wide net assets. I.n addition, the building replacement internal service fund recognized a prior period adjustment of $5,898,613 to record assets purchased by governmental funds during fiscal year 2000-01. The City intended for these assets to be tranJferred into the building replacement fund at June 30, 2001. The assets make up part of the beginning government-wide net assets, and therefore are not included in the prior period adjustment at the government-wide level. 49 REQUIRED SUPPLEMENTARY INFORMATION CITY OF DUBLIN REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS MISCELLANEOUS PLAN OF THE CALIFORNIA PUBLIC EMPLOYEE RETIREMENT SYSTEM JUNE 30, 2002 Actuarial Entry Age Unfunded Annual Valuation Value of Normal Accrued (Overfunded) Funded Covered UAAL as a Date Assets Liability Liability Ratio Payroll % of Payroll 6/30/1999 $5,683,503 $ 4,435,948 $ (1,247,555) 128.1% $2,555,919 (48.810)% 6/30/2000 $6,583,971 $ 5,142,366 $ (1,441,605) 128.0% $3,404,873 (42.300)% 6/30/2001 $7,235,624 $ 6,290,557 $ (945,077) 115.0% $3,880,432 (24.400)% 5O COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS CITY OF DUBLIN GENERAL FUND The General Fund is used to account for all financial resources except those required to be accounted for in another fund. 51 CITY OF DUBLIN SCHEDULE OF BUDGET VERSUS ACTUAL REVENUES BY SOURCE GENERAL FUND FOR TIlE FISCAL YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) Property Taxes Current Year Secured $ 6,927,000 $ 6,927,000 $ 7,276,662 ' $ 349,662 Current Year Unsecured 603,000 603,000 708,471 105,471 Prior Year Secured 72,000 72,000 112,046 40,046 Prior Year Unsecured 15,000 15,000 15,595 595 Supplemental Property Tax 543,000 543,000 477,724 (65,276) Pilot Tax 55,100 ·55,100 125,235 70,135 Property Tax Penalties 437000 43,000 78,979 35,979 · Sub-Total 8,258,100 8,258,100 8,794,712 536,612 Taxes Other Than Property · Sales & Use Tax 13,200,000 13,200,000 12,813,109 (386,891) Real Property Transfer Tax 450,000 450,000 434,832 (15,168) Hotel Transient Occupancy Tax ! ,035,000 1,035,000 810,220 (224,780) Franchise Taxes 1,254~830 1,254,830 1,385,816 130,986 Sub-Total 15,939,830 15,939,830 15,443,977 (495,853) License and Permits Building Permits 2,715,590 2,715,590 2,118,472 (597,118) Animal Licenses 4,150 4,150 4,929 779 Encroachment Permits 36,000 36,000' 28,020 (7,980) Business License 108,400 108,400 I 11,646 3,246 Fire Permits 93,000 93,000 64,184 (28,816) Sub-Total 2,957,140 2,957,140 2,327,251 (629,889) Fines and Forfeitures Parking Fines 62,000 62,000 63,733 1,733 Other Court Fines 36,000 36,000 50,781 14,781 Other Fines & Penalties 4,000 4,000 3,677 (323) Sub-Total 102,000 102,000 118,191 16,191 Revenue From Use of Money and Property Interest 1,688,988 1,688,988 1,843,674 154,686 Rents & Concession: Field Rentals 7,095 7,095 5,101 (1,994) Building 57,490 57,490 56,018 (1,472) Pool 9,120 9,120 9,932 812 Heritage Center 5,100 5,100 4,111 (989) Community Gym 19,785 19,785 10,775 (9,01 Sub-Total _ 1,787,578 1,787,578 1,929,611 142,033 Intergovernmental Revenues - State Motor Vehicle In-Lieu Tax 1,822,500 1,822,500 1,939,576 117,076 OffHighway Vehicle In-Lieu Fee 650 650 765 115 Homeowners Property Tax Relief 125,000 125,000 130,168 5,168 Sub-Total 1,948,150 1,948,150 2,070,509 122,359 CITY OF DUBLIN SCHEDULE OF BUDGET VERSUS ACTUAL REVENUES BY SOURCE (CONTINUED) GENERAL FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts .. (Negative) Intergovernmental Revenues-County Tobacco Control Program 6,140 6,140 Sub-Total 6,140 6,140 Charges for Services Zoning & Subdivision Fees 551,076 I, 199,971 1,339,490 139,519 Plan Check & Inspection Fees 1,821,700 1,821,700 1,345,141 (476,559) Fire Plan Chit & Insp Fees 123,000 123,000 136,708 13,708 Sale of Maps & Documents 18,000 18,000 18,306 306 Special Police Services 18,000 18,000 17,766 (234) Fire Service Charges 346,260 346,260 . 336,756 (9,504) Park & Recreation Fees: Recreation Instruction 107,742 107,742 133,953 26,21 ! Preschool 58,433 58,433 57,720 (713) Special Events 85,480 116,175 112,014 (4,161) Playgrounds 153,157 153,157 127,836 (25,321 ) Teens 41,755 41,755 36,689 (5,066) Adult Sports 50,525 50,525 46,082 (4,443) Aquatics 140,050 140,050 133,003 (7,047) Seniors 31,400 35,180 30,247 (4,933) Youth Sports 67,275 67,275 75,177 7,902 Heritage Center 200 200 134 (66) Building Use Insurance 5,200 5,200 5,434 234 Zone 7 Drainage Fees 12,400 12,400 4,473 (7,927) DUI Program 2,700 2,700 12,155 9,455 Booking Fees Recovery 63,700 63,700 79,640 15,940 Solid Waste Fee 102,000 102,000 105,126 3,126 Internment Fees 6,735 6,735 3,450 (3,285) Annexation Services 4,384 4,384 Cable Support Fee 52,428 52,428 52,576 148 Cable Capital Grant 250,000 250,000 Sub-Total 3,859,216 4,792,586 4,464,260 (328,326) Other Revenues Sate of Real & Personal Property 1,800 1,800 774 (I,026) Contributions 121,075 154,075 83,179 (70,896) Miscellaneous 27,D00 34,500 34~982 482 Reimbursement 803,564 665,797 367,381 (298,416) Reimbursement-Public Damage 24,800 24,800 7,407 (17,393) Sub-Total 978,239 880,972 493,723 (387,249) Total Revenues By Source $ 35,830,253 ..$ 36,666,356 $ 35,648,374 $ (1,017,982) CITY OF DUBLIN SCHEDULE OF BUDGET VERSUS ACTUAL DEPARTMENTAL EXPENDITURES GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) General government City Council $ 229,439 $ 266,439 $ 217,947 $ 48,492 City Manager 681,645 684,838 560,359 124,479 City Attorney 466,339 764,485 764,485 Central Services 283,066 311,657 297,050 14,607 Administrative Services 948,904 958,814 922,865 35,949 Building management 681,962 681,962 657,327 24,635 Insurance cost center 389,315 389,315 385,396 3,919 Elections cost center 1,532 22,532 14,508 8,024 Nondepartmental 206,000 145,872 109,982 35,890 Total General Govermnent 3,888,202 4,225,914 3,929,919 295,995 Public safety Police 6,795,478 6,804,324 6,668,235 136,089 Crossing guards 63,495 63,495 56,677 6,818 Animal control 180,757 180,757 138,936 41,821 Disaster preparedness 48,21 t 48,211 46,012 2,199 Fire Services 4,662,714 4,712,148 4,698,608 13,540 Total Public Safety 11,750,655 11,808,935 t 1,608,468 200,467 Highways and streets Public works administration 568,214 574,025 557,207 16,818 Street maintenance 145,606 145,606 138,789 6,817 Street tree maintenance 55,629 55,629 51,079 4,550 Street landscape maintenance 351,887 351,887 347,025 4,862 Total Highways and Streets 1,121,336 1,127,147 1,094,100 33,047 Health and welfare Child care 15,000 15,000 15,000 Waste management 8,395 8,395 1,807 6,588 Housing programs 41,100 4 I, 100 35,208 5,892 Total Health and Welfare 64,495 64,495 52,015 12,480 54 CITY OF DUBLIN SCHEDULE OF BUDGET VERSUS ACTUAL DEPARTMENTAL EXPENDITURES (CONTINUED) GENERALFUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts , (Negative). Culture and leisure Library services 400,725 400,725 376,276 24,449 Cultural activities 1.48,028 149,328 I 19,409 29,919 Heritage Center 82,958 84,170 69,082 15,088 Cemetery operations 39,687 39,687 30,078 9,609 Park maintenance 1,138,123 1,142,023 1,086,713 55,310 Community cable television 81,482 90,982 80,087 10,895 Parks and community services 2,181,440 2,266,572 2,109,044 157,528 Parks and facilities management 178,731 180,807 142,041 38,766 Total Culture and Leisure 4,251,174 4,354,294 4,012,730 341,564 Community development Planning/Building safety 3,370,314 3,311,970 2,762,885 549,085 Engineering 1,988,351 1,999,416 1,609,544 389,872 Economic development 259,465 283,529 271,223 12,306 Total Community Development 5,618,130 5,594,915 4,643,652 951,263 Capital Outlay General improvements 4,042,237 6,095,010 4,582,889 1,512,121 Community improvements 1,170,874 1,198,376 273,285 925,091 Parks 400,969 414,859 100,849 314,010 Street construction and improvements 961,108 942,893 580,010 362,883 Total Capital Outlay 6,575,188 8,651,138 5,537,033 3,114,105 Debt Service Principal 251,004 251,004 251,004 Total Debt Service 251,004 251,004 251,004 Total Expenditures $33,520,184 $36,077,842 $31,128,921 $ 4,948,921 55 CITY OF DUBLIN MAJOR FUND BUDGETARY COMPARISONS SCHEDULES Budgetary comparison statements are presented as part of the basic financial statements for the General Fund and all Major Special Revenue Funds as provided for by GASB Statement No. 34. The budgetary comparison schedules for the remaining major funds are presented to aid in additional analysis and are not a required part of the basic financial statements. 56 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 794,498 $ 794,498 $ 894,035 $ 99,537 Developer fees 24,424,370 24,424,370 13,353,737 (11,070,633) ?Oral Revenues 25,218,868 25,218,868 14,247,772 (10,971,096) EXPENDITURES Capital outlay Streets 15,131,302 15,830,258 4,085,146 11,745,112 Total Expenditures 15,131,302 15,830,258 4,085,146 11,745,112 Net Change in Fund Balance 10,087,566 9,388,610 10,162,626 774,016 Fund Balance, Beginning of Year Prior Period Adjustment 11,483,742 11,483,742 Fund Balance, End of Year $10,087,566 $ 9,388,610 $ 21,646,368 $ 12,257,758 57 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PUBLIC FACILITIES FEES CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 311,781 $ 311,781 $ 428,175 $ 116,394 Developer fees 4,928,802 4,928,802 2,786,737 (2,142,065) Total Revenues 5,240,583 5,240,583 3,214,912 (2,025,671) EXPENDITURES Capital outlay General 6,961,697 6,961,697 3,737,041 3,224,656 Community improvement 15,000 15,000 5,203 9,797 Parks 987,150 1,277,944 49,479 1,228,465 Total Expenditures 7,963,847 8,254,641 3,791,723 4,462,918 Net Change in Fund Balance (2,723,264) (3,014,058) (576,8 t 1) 2,437,247 Fund Balance, Beginning of'Year Prior Period Adjustment 8,637,710 8,637,710 Fund Balance, End of Year $ (2,723,264) $(3,014,058) $ 8,060,899 $ 11,074,957 58 ~ CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PARK DEDICATION CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 144,158 $ 144,158 $ 58,533 $ (85,625) Developer fees 3,089,551 3,089,551 932,917 (2,156,634) Total Revenues 3,233,709 3,233,709 991,450 (2,242,259) EXPENDITURES Capital outlay Parks 144,280 144,280 76,112 68,168 Total Expenditures 144,280 144,280 76,112 68,168 Net Change in Fund Balance 3,089,429 3,089,429 915,338 (2,174,091) Fund Balance, Beginning of Year 420,542 420,542 420,542 Prior Period Adjustment 18,125 18, 125 Fund Balance, End of Year $ 3,509,971 $ 3,509,971 $ 1,354,005 $ (2,155,966) 59 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FIRE IMPACT FEES CAPITAL PROJECTS FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 27,466' $ 27,466 $ 73,367 $ 45,901 Developer fees 2,999,150 2,999,150 1,439,060 (1,560,090) Total Revenues 3,026,616 3,026,616 1,512,427 (1,5t4,189) EXPENDITURES Capital outlay General 5,865,020 5,865,020 580,300 '5,284,720 Community improvelnent 2,000 1,620 380 Total Expenditures 5,865,020 5,867,020 581,920 5,285,100 Net Change in Fund Balance (2,838,404) (2,840,404) 930,507 3,770,911 Fund Balance, Beginning of Year Prior Period Adjustment 1,083,523 1,083,523 Fund Balance, End of Year $ (2,838,404) $ (2,840,404) $ 2,014,030 $ 4,854,434 60 CITY OF DUBLIN JUNE 30, 2002 NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Fund Descriptions Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. Special Criminal Activity Fund - Established to account for receipt of funds derived from asset forfeitures. Vehicle Abatement Fund - 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. Federal Police Grant - Established to account for police expenditures funded by a Federal grant. CLEEP Grant - Established to account for police technology expenditures funded by a State grant. Traffic Safety Fund - Established to account for the receipt of traffic fines and traffic safety expenditures. State Gas Tax Fund - Established to account for receipt of state gasoline taxes and expenditures. Office of Traffic and Safety (OTS) Grant - Established to account for police personnel expenditures funded by a Federal grant. Community Development Block Grant (CDBG) Fund - Used to account for grants and expenditures related to the community development block grants. Intermodal Surface Transportation Efficiency (ISTEA) Act - Established to account for street construction expenditures funded by a Federal grant. FEMA Fund - Established to account for expenditures funded with FEMA grants. Measure B Sales Tax Transportation Fund - Established to account for an Alameda County voter approved increase in sales tax used for improvements on streets and roads. State Transportation Improvement - Established to account for grant receipts from the state used for capital improvements on local streets. Transportation for Clean Air(TFCA) - Established to account for grant receipts from the State to be used for capital improvements on local streets. Storm Water Runoff Fund - Established to account for the use of funds received from fees collected to mitigate pollution within the City without specific sources and to comply with Federal requirements for National Pollution Discharge Elimination System (NPDES). 61 CITY OF DUBLIN JUNE 30, 2002 NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Fund Descriptions (Continued) Measure D Recycling Fund - 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. Garbage Service Fund - Established to account for the use of funds received which are levied by the county for garbage pick-up and removal and recycling services. Measure B Bike and Pedestrian - Established to account for an Alameda County voter approved increase in sales tax used for bike and pedestrian related projects. CMA Grant - Established to account for grant receipts from the Congestion Management Agency used for capital improvements on local streets. EMS Tax Fund - Established to account for excise taxes received to fund the costs of providing Emergency Medical Services. Traffic Congestion Relief - Established to account for traffic congestion relief expenditures funded by a State grant. Housing and Noise Mitigation - Established to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of citywide affordable housing projects and noise mitigation projects in Eastern Dublin. Maintenance Districts - Established to account for revenue and related expenditures of lighting and landscape activities. 62 CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET JUNE 30, 2002 Special Revenue Funds Special Supplemental Federal Criminal Vehicle Law Police Activity Abatement Enforcement Grant ASSETS Cash and investments $ 24,954 $ 100,166 $ 107,864 Accounts receivable $ 40,000 Total Assets $ 24,954 $ 100,166 $ I07,864 $ 40,000 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable 104,806 21,078 Due to other funds 18,886 Total Liabilities 104,806 39,964 FUND BALANCES Reserved For: Recycling programs Public safety programs 24,954 100,166 3,058 36 Street maintenance and construction Health and welfare programs Community development programs Total Fund Balances 24,954 100,166 3,058 36 Total Liabilities and Fund Balances $ 24,954 $ 100,166 $ 107,864 $ 40,000 63 Special Revenue Funds Community Intermodal Surface CLEEP Traffic State OTS Development Transportation Grant Safety Gas Tax Grant Block Grant Efficiency Act $ 48,663 $ 158,322 $ 1,852,006 21,872 $ 3,702 $ 53,606 $ 614,622 $ 48,663 $ 180,194 $ 1,852,006 $ 3,702 $ 53,606 $ 614,622 4,713 22,784 109,919 5,498 113,148 3,702 48,108 501,474 4,713 22,784 109,919 3,702 53,606 614,622 43,950 157,410 1,742,087 43,950 157,410 1,742,087 $ 48,663 $ 180,194 $ 1,852,006 $ 3,702 $ 53,606 $ 614,622 (CONTINUED) 64 CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (CONTINUED) JUNE 30, 2002 Special Revenue Funds Measure B State Sales Tax Transportation Transportation FEMA Transportation Improvement for Clean Air ASSETS Cash and investments $ 279,675 Accounts receivable 21,090 $ 189,312 $ 86,790 Total Assets $ - $ 300,765 $ 189,312 $ 86,790 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable 135,018 86,790 Due to other funds 189,312 Total Liabilities 135,018 189,312 86,790 FUND BALANCES Reserved For: Recycling programs Public safety programs Street maintenance and construction t 65,747 Health and welfare programs Community development programs Total Fund Balances 165,747 Total Liabilities and Fund Balances $ $ 300,765 $ 189,312 $ 86,790 65 Special Revenue Funds Storm Measure B Traffic Housing Water Measure D Garbage Bike and CMA Congestion and Noise Runoff Recycling Service Pedestrian Grant EMS Relief Mitigation $ 268,175 $ 68,828 $ 70,145 $ 7,259,090 $ 75 $ 13,628 $ 5,539 $ 358,932 26,097 7,248 $ 75 $ 268,175 $ 13,628 $ 5,539 $ 358,932 $ 94,925 $ 77,393 $ 7,259,090 66,321 68,828 41,329 15,625 4,549 358,932 66,321 4,549 358,932 68,828 41,329 15,625 201,854 26,097 75 36,064 9,079 7,243,465 5,539 75 201,854 9,079 5,539 26,097 36,064 7,243,465 $ 75 $ 268,175 $ 13,628 $ 5,539 $ 358,932 $'94,925 $ 77,393 $ 7,259,090 (CONTINUED) 66 CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (CONTINUED) JUNE 30, 2002 Special Revenue Funds Maintenance Districts Dougherty SantaRita Dublin Street Street Stagecoach Landscape Assessment Lighting Lighting Landscape & Lighting District 97-I Assessment ASSETS Cash and investments $195,965 $ 37,656 $ 37,814 $ 153,833 $ 65,89I Accounts receivable 2,170 274 488 812 242 Total Assets $198,135 $ 37,930 $ 38,302 $ 154,645 $ 66,133 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable 18,495 5,333 11,075 15,654 398 Due to other funds Total Liabilities 18,495 5,333 11,075 15,654 398 FUND BALANCES Reserved For: Recycling programs Public safety programs 179,640 65,735 Street maintenance and construction 32,597 27,227 138,991 Health and welfare programs Community development: programs Total Fund Balances 179,640 32,597 27,227 138,991 65,735 Total Liabilities and Fund Balances $198,135 $ 37,930 $ 38,302 $ 154,645 $ 66,133 67 : Total Non-major Governmental Funds $10,729,047 1,446,499 $12,175,546 846,812 1,124,963 1,971,775 201,854 601,046 2,142,788 7,252,544 5,539 10,203,771 $ 12,175,546 68 CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2002 Special Revenue Funds Special Supplemental Federal Criminal Vehicle Law Police Activity Abatement Enforcement Grant REVENUES Property taxes Taxes other than property Intergovernmental $ 18,031 $ 100,000 $ 60,195 Charges for services Interest $ 802 4,410 5,613 401 Fines and forfeitures Developer fees Other revenue 8,455 Special assessments Total Revenues 9,257 22,441 105,613 60,596 EXPENDITURES Current: Public safety 1,500 ' 166,543 61,251 Highways and streets Health and welfare Community development Capital outlay Community improvement Streets Total Expenditures '1,500 166,543' 61~251 Excess (Deficiency) of Revenues Over (Under) Expenditures 7,757 22,441 (60~930) (655) OTHER FINANCING SOURCES (USES) Transfers out {8,696) Total Other Financing Uses (8,696) Net Change in Fund Balances 7,757 13,745 (60,930) (655) Fund Balances, Beginning of Year 17,197 86,42I 63,988 691 Prior Period Adjustment Fund Balances, EndofYear $ 24,954 $ 100,166 $ 3,058 $ 36 69 Special Revenue Funds Community Intermodal Surface CLEEP Traffic State OTS Development Transportation Grant Safety Gas Tax Grant Block Grant Efficiency Act $ 40,032 622,502 $ 29,973 $ 77,567 $ 614,621 4,009 $ 6,415 $ 78,579 149,023 7,570 44,041 155,438 708,651 29,973 77,567 614,621 118,123 121,117 24,282 29,973 209,802 17,500 6,000 19,959 53,467 250,714 614~621 118,123 121,117 510,757 29,973 70,967 614,621 (74,082) 34,321 197,894 6,600 (6,600) (6,600) (74,082) 34,321 197,894 118,032 123,089 1,544,193 $ 43,950 $ 157,410 $ t,742,087 $ $ $ (CONTINUED) 7O CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2002 Special Revenue Funds Measure B State Sales Tax Transportation Transportation FEMA Transportation Improvement for Clean Air REVENUES Property taxes Taxes other than property $ 201,273 Intergovernmental $ 438 $ 275,026 $ 86,790 Charges for services Interest 13,230 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 438 214,503 275,026 86,790 EXPENDITURES Current: Public safety Highways and streets Health and welfare Community development Capital outlay Community improvement Streets 379,441 275,026 86,790 Total Expenditures 379,441 275,026 86,790 Excess (Deficiency) of Revenues Over (Under) Expenditures 438 (164,938) OTHER FINANCING SOURCES (USES) Transfers out (438) _ Total Other Financing Uses ,, (438) Net Change in Fund Balances (164,938) Fund Balances, Beginning of Year 330,685 Prior Period Adjustment Fund Balances, End of Year $ $ 165,747 $ - $ 71 Special Revenue Funds Storm Measure B Traffic Housing Water Measure D Garbage Bike and CMA Congestion and Noise Runoff Recycling Service Pedestrian Grant EMS Relief Mitigation $ 91,100 $ 5,539 $ 160,959 $ 358,932 99,113 $ 81,298 215 $ 865,576 8,820 7,797 146 5,212 $ 289,459 1,173,231 14,972 215 184,751 873,373 5,539 358,932 190,359 86,510 1,462,690 193,801 t53,752 877,057 96,133 8,586 358,932 294,470 153,752 877,057 358,932 193~801 294,470 104,719 215 30,999 (3,684) 5,539 (3,442) ~ 1,357,97I (1,o51) (1,051) (836) 30,999 (3,684) 5,539 (3,442) (207,960) 1,357,971 911 170,855 12,763 29,539 244,024 5,885,494 $ 75 $ 201,854 $ 9,079 $ 5,539 $ $ 26,097 36,064 7,243,465 (CONTINUED) 72 CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2002 Special Revenue Funds Maintenance Districts Dougherty Santa Rita Dublin Street Street Stagecoach Landscape Assessment Lighting Lighting ... Landscape & Lighting District 97-1 Assessment REVENUES Property taxes Taxes other than property Intergovernmental Charges for services Interest $ 8,705 $ 1,292 $ 1,732 $ 6,942 $ 2,067 Fines and forfeitures Developer fees Other revenue 1,996 Special assessments 178,501 54,081 84,051 72,037 42,894 Total Revenues 189,202 55;373 85,783 78,979 44,961 EXPENDITURES Current: Public safety 194,838 3,301 Highways and streets 1,854 47,908 97,236 95,247 200 Health and welfare Community development 6,527 3,057 3,353 3,239 3,897 Capital outlay Community hnprovement Streets Total Expenditures 203,219 50,965 100,589 98,486 7,398 Excess (Deficiency) of Revenues Over (Under) Expenditures (14,017) .. 4,408 (14,806). (19,5,.07) 37,563 . OTHER FINANCING SOURCES (USES) Transfers out Total Other Financing Uses Net Change in Fund Balances (14,017) 4,408 (14,806) (19,507) 37,563 Fund Balances, Beginning of Year 193,657 28,189 42,033 158,498 28,172 Prior Period Adjustment Fund Balances, End of Year $ 179,640 $ 32,597 $ 27,227 $ 138,991 $ 65,735 73 Total Non-major Governmental Funds $ 91,100 206,812 2,625,477 865,791 445,631 149,023 t, 173,231 32,993 ,, 431,564 6,021,622 914,729 452,247 1,144,442 34,659 73,426 2,259,994 4~879,497 1,142,125 (16,785) (16,785) 1,125,340 3,192,937 5,885,494 $ 10,203,771 74 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SPECIAL CRIMINAL ACTIVITY SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 670 $ 670 $ 802 $ 132 Other revenue 5,000 5,000 8,455 3,455 Total Revenues 5,670 5,670 9,257 3,587 EXPENDITURES Current: Public safety 3,500 3,500 1,500 2,000 Total Expenditures 3,500 3,500 1,500 2,000 Net Change in Fund Balance 2,170 2,170 7,757 5,587 Fund Balance, Beginning of Year 17,197 17,197 17,197 Fund Balance, End of Year $ 19,367 $ 19,367 $ 24,954 $ 5,587 = 75 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL VEHICLE ABATEMENT SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts A~tual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 19,600 $ 19,600 $ 18,031 $ (1,569) Interest 4,143 4,143 4,410 267 Total Revenues 23,743 23,743 22,441 (1,302) Excess of Revenues Over Expenditures 23,743 23,743 22,441 (1,302) OTHER FINANCING SOURCES (USES) Transfers out (15,750) (15,750) (8,696) 7,054 Total Other Financing Uses (15750) (15750) (8,696) 7,054 Net Change in Fund Balance 7,993 7,993 13,745 5,752 Fund Balance, Beginning of Year 86,421 86,421 86,421 Fund Balance, End of Year $ 94,414 $ 94,414 $ 100,166 $ 5,752 76 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SLES/COPS SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 100,000 $ 100,000 $ 100,000 Interest 247 247 5,613 $ 5,366 Total Revenues 100,247 100,247 105,613 5,366 EXPENDITURES Current: Public safety 100,000 166,543 166,543 Total Expenditures ! 00,000 166,543 166,543 Net Change in Fund Balance 247 (66,296) (60,930) 5,366 Fun'd Balance, Beginning of Year 63,988 63,988 63,988 Fund Balance, EndofYear $ 64,235 $ (2,308) $ 3,058 $ 5,366 77 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES.AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FEDERAL POLICE GRANT SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 40,000 $ 40,000 $ 60,195 $ 20,195 Interest 419 419 401 (18) Total Revenues 40,419 40,419 60,596 20,177 EXPENDITURES Current: Public safety 55,230 61,251 61,251 Total Expenditures 55,230 61,251 61,251 Net Change in Fund Balance (14,811) (20,832) (655) 20,177 Fund Balance, Beginning of Year 691 691 691 Fund Balance, EndofYear $ (14,120) $ (20,14t) $ 36 $ 20,177 78 CITY OF DUBLIN SCHEDULE OF REVENUES~ EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CLEEP GRANT SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 40,032 $ 40,032 Interest $ 3,277 $ 3,277 4,009 732 Total Revenues 3,277 3,277 44,041 40,764 EXPENDITURES Current: Public safety 106,400 114,837 118,123 (3,286) Total Expenditures 106,400 114,837 118,123 (3,286) Net Change in Fund Balance (103,123) (111,560) (74,082) 37,478 Fund Balance, Beginning of Year 118,032 118,032 118,032 Fund Balance, End of Year $ 14,909 $ 6,472 $ 43,950 $ 37,478 79 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRAFFIC SAFETY SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 4,656 $ 4,656 $ 6,415 $ 1,759 Fines and forfeitures 1'45,155 145,155 149,023 3,868 Total Revenues 149,811 149,811 155,438 5,627 EXPENDITURES Current: Public safety 150,185 150,185 121,117 29,068 Total Expenditures 150,185 150,185 121,117 29,068 Net Change in Fund Balance (374) (374) 34,321 34,695 Fund Balance, Beginning of Year 123,089 123,089 123,089 Fund Balance, End of Year $ 122,715 $ 122,715 $ 157,410 $ 34,695 8O CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL STATE GAS TAX SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 610,000 $ 610,000 $ 622,502 $ 12,502 Interest 69,733 69,733 78,579 8,846 Other revenue 7,570 7,570 Total Revenues 679,733 679,733 708,651 28,918 EXPENDITURES Current: Public safety 24,856 24,856 24,282 574 Highways and streets 175,084 209,802 209,802 Community development 6,000 6,000 6,000 Capital outlay Community improvement 28,850 28,850 19,959 8,891 Streets 907,524 866,835 250,714 616,121 Total Expenditures 1,142,314 1,136,343 510,757 625,586 Net Change in Fund Balance (462,581) (456,610) 197,894 654,504 Fund Balance, Beginning of Year 1,321,279 1,321,279 1,544,193 Fund Balance, End of Year $ 858,698 $ 864,669 $ 1,742,087 $ 654,504 81 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL OFFICE OF TRAFFIC SAFETY SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 34,100 $ 34,100 $ 29,973 $ (4,127) Total Revenues 34, 100 34, 100 29,973 (4,127) EXPENDITURES Current: Public safety 34,100 34,100 29,973 4,127 Total Expenditures 34,100 34, i 00 29,973 4,127 Net Change in Fund Balance Fund Balance, Beginning of Year Fund Balance, End of Year $ $ $ $ 82 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CDBG SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget ~ Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 75,488 $ 77,432 $ 77,567 $ 135 Total Revenues 75,488 77,432 77,567 135 EXPENDITURES Current: Health and welfare 17,500 17,500 17,500 Capital outlay Community improvement 51,523 53,467 53,467 Total Expenditures 69,023 70,967 70,967 Excess of Revenues Over Expenditures 6,465 6,465 6,600 135 OTHER FINANCING SOURCES (USES) Transfers out (6,465) (6,600) (6,600) Total Other Financing Uses (6,465) (6,600) (6,600) Net Change in Fund Balance (135) 135 Fund Balance, Beginning of Year Fund Balance, End of Year $ $ (135) $ $ 135 83 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ISTEA SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amoums (Negative) REVENUES Intergovernmental $ 972,750 $ 972,750 $ 614,621 $ (358,129) Total Revenues 972,750 972,750 614,621 (358,129) EXPENDITURES Capital outlay Streets 972,750 625,000 614,621 10,379 Total Expenditures 972,750 625,000 614,621 10,379 Net Change in Fund Balance 347,750 (347,750) Fund Balance, Beginning of Year Fund Balance, End of Year $ - $ 347,750 $ $ (347,750) 84 : CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL FEMA SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 438 $ 438 Total Revenues 438 438 Excess of Revenues Over Expenditures 438 438 OTHER FINANCING SOURCES (USES) Transfers out (438) (438) Total Other Financing Uses (.438) (438) Net Change in Fund Balance Fund Balance, Beginning of Year Fund Balance, End of Year $ $ $ $ 85 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MEASURE B SALES TAX SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 i Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Taxes other than property $ 230,500 $ 230,500 $ 201,273 $ (29,227) Interest 7,755 7,755 13,230 5,475 Total Revenues 238,255 238,255 214,503 (23,752) EXPENDITURES Capital outlay Streets 391,260 391,260 379,441 11,819 Total Expenditures 391,260 391,260 379,441 11,819 Net Change in Fund Balance (153,005) (153,005) (164,938) (11,933) Fund Balance, Beginning of Year 330,685 330,685 330,685 Fund Balance, End of Year $ 177,680 $ 177,680 $ 165,747 $ (11,933) 86 : CITY 0F DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL STATE TRANSPORTATION IMPROVEMENT SPECIAL REVENUE FUND FOR THE YEAR ENDED ,~UNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 2,112,507 $ 2,112,507 $ 275,026 $ (1,837,481) Total Revenues 2,112,507 2,112,507 275,026 '(1 ;837,481) EXPENDITURES Capital outlay Streets 2,112,507 2,144,026 275,026 1,869,000 Total Expenditures 2,112,507 2,144,026 275,026 1,869,000 Net Change in Fund Balance (31,519) 31,519 Fund Balance, Beginning of Year Fund Balance, End of Year $ $ (31,519) $ $ 31,519 87 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRANSPORTATION FOR CLEAN AIR SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 154,080 $ 86,790 $ (67,290) Total Revenues 154,080 86,790 (67,290) EXPENDITURES Capital outlay Streets 154,080 86,790 67,290 Total Expenditures 154,080 86,790 67,290 Net Change in Fund Balance Fund Balance, Beginning of Year Fund Balance, End of Year $ $ - $ $ 88 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL STORM WATER RUNOFF SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Charges for services $ 215 $ 215 Total Revenues 215 215 Excess of Revenues Over Expenditures 215 215 OTHER FINANCING SOURCES (USES) Transfers out (I ,051 ) (1,05 i) Total Other Financing Uses * (1,051) (1,051) Net Change in Fund Balance (1,051 ) (836) 215 Fund Balance, Beginning of Year $ 911 911 911 Fund Balance, End of Year $ 911 $ (140) $ 75 $ 215 89 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MEASURE D RECYCLING SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 153,353 $ 153,353 $ 160,959 $ 7,606 Interest 8,021 8,021 8,820 799 Other revenue 14, 972 14,972 Total Revenues 161,374 161,374 184,751 23,377 EXPENDITURES Current: Health and welfare 161,017 161,017 153,752 7,265 Capital outlay Parks 21,491 21,491 21,491 Total Expenditures 182,508 182,508 153,752 28,756 Net Change in Fund Balance (21,134) (21,134) 30,999 52,133 Fund Balance, Begimfing of Year 170,855 170,855 170,855 Fund Balance, EndofYear $ 149,721 $ 149,721 $ 201,854 $ 52,133 90 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GARBAGE SERVICE SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Charges for services $ 876,760 $ 876,760 $ 865,576 $ (11,184) Interest 4,843 4,843 7,797 2,954 Total Revenues 881,603 881,603 873,373 (8,230) EXPENDITURES Current: Health and welfare 888,560 888,560 877,057 11,503 Total Expenditures 888,560 888,560 877,057 11,503 Net Change in Fund Balance (6,957) (6,957) (3,684) 3,273 Fund Balance, Beginning of Year 12,763 12,763 12,763 Fund Balance, End of Year $ 5,806 $ 5,806 $ 9,079 $ 3,273 91 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MEASURE B BIKE AND PEDESTRIAN SPECIAL REVENUE FUND FOR TIlE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Taxes other than property $ 5,539 $ 5,539 Total Revenues 5,539 5,539 Net Change in Fund Balance 5,539 5,539 Fund Balance, Beginning of Year Fund Balance, End of Year $ $ $ 5,539 $ 5,539 . 92 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CMA GRANT SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 ~. Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Intergovernmental $ 400,000 $ 358,932 $ (41,068) Total Revenues 400,000 358,932 (41,068) EXPENDITURES Capital outlay Streets 400,000 358,932 41,068 Total Expenditures 400,000 358,932 41,068 Net Change in Fund Balance Fund Balance, Beginning of Year Fund Balance, End of Year $ - $ - $ $ 93 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL EMS SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - . Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Property taxes $ 90,175 $ 90,175 $ 91,100 $ 925 Intergovernmental 90,000 90,000 99,113 9,113 Interest 80 80 146 66 Total Revenues 180,255 180,255 190,359 10,104 EXPENDITURES Current: Public safety 177,100 193,801 193,801 Total ExPenditures 177,100 193,801 193,801 Net Change in Fund Balance 3,155 (13,546) (3,442) 10,104 Fund Balance, Beginning of Year 29,539 29,539 29,539 Fund Balance, End of Year $ 32,694 $ 15,993 $ 26,097 $ 10,104 94 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRAFFIC CONGESTION RELIEF SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final ganounts (Negative) REVENUES Intergovernmental $ 62,681 $ 62,681 $ 81,298 $ 18,617 Interest 6,468 6,468 5,212 (1,256) Total Revenues 69,149 69,149 86,510 17,361 EXPENDITURES Capital outlay Streets 294,470 294,470 294,470 Total Expenditures 294,470 294,470 294,470 Net Change in Fund Balance (225,321) (225,321) (207,960) 17,361 Fund Balance, Begirming of Year 244,024 244,024 244,024 Fund Balance, End of Year $ 18,703 $ 18,703 $ 36,064 $ 17,361 95 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL HOUSING AND NOISE MITIGATION SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 362,779 $ 362,779 $ 289,459 $ (73,320) Developer fees 2,277,396 2,277,396 1,173,231 (1,104,165) Total Revenues 2,640,175 2,640,175 1,462,690 (1,177,485) EXPENDITURES Current: Health and welfare 1,854,726 1,854,726 96,133 1,758,593 Community development 26,250 34,836 8,586 26,250 Total Expenditures 1,880,976 1,889,562 104,719 1,784,843 Net Change in Fund Balance 759,199 750,613 t ,357,971 607,358 Fund Balance, Beginning of Year Prior Period Adjustment 5,885,494 5,885,494 Fund Balance, EndofYear $ 759,199 $ 750,613 $ 7,243,465 $ 6,492,852 96 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL STREET LIGHTING SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 8,793 $ 8,793 $ 8,705 $ (88) Other revenue 6,000 6,000 1,996 (4,004) Special assessments 156,472 156,472 178,501 22,029 Total Revenues 171,265 171,265 189,202 17,937 EXPENDITURES Current: Public safety 188,133 194,838 194,838 Highways and streets 3,116 3,116 1,854 1,262 Community development 2,000 6,527 6,527 Total Expenditures 193,249 204,481 203,219 1,262 Net Change in Fund Balance (21,984) (33,216) (14,017) 19,199 Fund Balance, Begi~ming of Year 193,657 193,657 193,657 Fund Balance, End of Year $ 171,673 $ 160,441 $ 179,640 $ 19,199 97 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL STAGECOACH LANDSCAPE SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 953 $ 953 $ 1,292 $ 339 Special assessments 54,206 54,206 54,081 (125) Total Revenues 55,159 55,159 55,373 214 EXPENDITURES Current: Highways and streets 56,379 56,379 47,908 8,471 Community development 640 3,057 3,057 Total Expenditures 57,019 59,436 50,965 8,471 Net Change in Fund Balance (1,860) (4,277) 4,408 8,685 Fund Balance, Beginning of Year 28,189 28,189 28,I 89 Fund Balance, EndofYear $ 26,329 $ 23,912 $ 32,597 $ 8,685 98 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DOUGHERTY LANDSCAPE AND LIGHTING SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 2,086 $ 2,086 $ 1,732 $ (354) Special assessments 83,149 83,149 84,051 902 Total Revenues 85,235 85,235 85,783 548 EXPENDITURES Current: Highways and streets 82,175 99,582 97,236 2,346 Community development 3,145 3,353 3,353 Total Expenditures 85,320 102,935 100,589 2,346 Net Change in Fund Balance (85) (17,700) (14,806) 2,894 Fund Balance, Beginning of Year 42,033 42,033 42,033 Fund Balance, End of Year $ 41,948 $ 24,333 $ 27,227 $ 2,894 99 CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL SANTA RITA ASSESSMENT DISTRICT 97-1 SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Fh~al Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 6,793 $ 6,793 $ 6,942 $ 149 Special assessments 91,323 91,323 72,037 (19,286) Total Revenues 98,116 98,116 78,979 (19,137) EXPENDITURES Current: Highways and streets 158,259 158,259 95,247 63,012 Community development 665 3,239 3,239 Total Expenditures 158,924 161,498 98,486 63,012 Net Change in Fund Balance (60,808) (63,382) (19,507) 43,875 Fund Balance, Beginning of Year 158,498 158,498 · 158,498 Fund Balance, EndofYear $ 97,690 $ 95,116 $ 138,991 $ 43,875 100 : CITY OF DUBLIN SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DUBLIN STREET LIGItTING ASSESSMENT SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2002 Variance with Final Budget - Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES Interest $ 1,562 $ 1,562 $ 2,067 $ 505 Special assessments 44,298 44,298 42,894 (1,404) Total Revenues 45,860 45,860 44,961 (899) EXPENDITURES Current: Public safety 42,502 42,502 3,301 39,201 Highways and streets 610 610 ' 200 410 Community development 665 3,897 3,897 Total Expenditures 43,777 47,009 7,398 39,611 Net Change in Fund Balance 2,083 (1,149) 37,563 38,712 Fund Balance, Beginning of Year 28,172 28,172 28,172 Fund Balance, End of Year $ 30,255 $ 27,023 $ 65,735 $ 38,712 101 : CITY OF DUBLIN INTERNAL SERVICE FUNDS Internal Service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost reimbursement basis. The City has established four of these types of funds: Equipment Replacement, Fire Equipment and Station Replacement, Building Replacement, and Retiree Health Care. 102 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS JUNE 30, 2002 Fire Equipment Equipment and Station Building Replacement Replacement Replacement ASSETS Current Assets Cash and investments $ 1,015,543 $ 1,190,963 $ 1,043,901 Receivable: Accounts 1,191 Total Current Assets 1,016,734 1,190,963 1,043,901 Noncurrent Assets Land 6,842,037 Construction in progress 9,738,800 Buildings and improvements 23,246,806 Machinery and equipment 1,670,250 1,902,259 428,100 Less: accumulated depreciation (786,299) (860,355) (5,997,639) Total Noncurrent Assets 883,951 1,041,904 34,258,104 Total Assets 1,900,685 2,232,867 35,302,005 LIABILITIES Current Liabilities Accounts payable 31,803 Total Liabilities 31,803 NET AS SETS Invested in capital assets 883,951 1,041;904 34,258,104 Unrestricted 984,931 1,190,963 1,043,901 TotalNet Assets $ 1,868,882 $ 2,232,867 $ 35,302,005 103 Retiree Health Care Total . $ 3,101,655 $ 6,352,062 1,191 3,101,655 6,353,253 6,842,037 9,738,800 23,246,806 4,000,609 (7,644,293) 36,183,959 3,101,655 42,537,212 8.223 40,026 8,223 40,026 36,183,959 3,093,432 6,313,227 $ 3,093,432 $42,497,I86 104 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2002 Fire Equipment Equipment and Station Building Replacement Replacement Replacement OPERATING REVENUES Charges for services $ 478,982 $ 141,780 $ 108,953 Other revenue 22,267 Total Operating Revenues 501,249 141,780 108,953 OPERATING EXPENSES Supplies and services 139,624 2,477 Depreciation 300,514 119,726 693,482 Total Operating Expenses 440,138 119,726 695,959 Operating Income (Loss) 61,111 22,054 (587,006) NONOPERATING REVENUES Interest income 38,889 49,312 44,100 Income (Loss) Before Contributions 100,000 71,366 (542,906) CONTRIBUTIONS 306,936 19,337 8,704,225 Change in Net Assets 406,936 90,703 8,161,319 Total Net Assets, Beginning of Year 1,461,946 2,142,164 21,242,073 Prior Period Adjustment 5,898,613 TotalNet Assets, EndofYear $ 1,868,882 $ 2,232,867 $ 35,302,005 105 Retiree Health Care Total $ 373,935 $ 1,103,650 22,267 373,935 1,125,917 82,466 224,567 1,113,722 82,466 1,338,289 291,469 (212,372) 130,297 262,598 421,766 50,226 9,03O,498 421,766 9,080,724 2,671,666 27,517,849 5,898,613 $ 3,093,432 $ 42,497,186 106 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2002 Fire Equipment Equipment and Station Building Replacement Replacement Replacement CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers $ 506,553 $ 141,780 $ 108,953 Payments to suppliers (110,497) (4,247) NET CASH PROVIDED BY OPERATING ACTIVITIES 396,056 141,780 104,706 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Fixed asset purchases (168,692) ,,, (50,612) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 38,889 49,312 44,100 NET INCREASE IN CASH AND CASH EQUIVALENTS 266,253 191,092 98,194 CASH AND CASH EQUIVALENTS, Beginning of Year 749,290 999,871 945~707 CASH AND CASH EQUIVALENTS, End of Yeax $ 1,015,543 $ 1,190,963 $ 1,043,901 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) 61,111 22,054 (587,006) Adjustments to reconcile operating income to cash flows from operating activities: Depreciation 300,514 119,726 693,482 Net effect of changes in: Accounts receivable 5,304 Accounts payable 29,127 (1,770) NET CASH PROVIDED BY OPERATING ACTIVITIES $ 396,056 $ 141,780 $ 104;706 NONCASH CAPITAL FINANCING ACTIVITIES Contributed fixed assets $ 306,936 $ 19,337 $ 14,602,838 107 Retiree Health Care Total $ 373,935 $ 1,131,221 . {84,938) (199,682) 288,997 931,539 (219,304) 130,297 262,598 419,294 974,833 2,682,36~1 5,377,22~... $ 3,101,655 $ 6,352,062 291,469 (212,372) 1,113,722 5,304 . (2,472) 24,885 $ 288,997 $ 931,539 $ 14,929,1ll 108 CITY OF DUBLIN AGENCY FUND Agency funds are used to account for assets held by the City in a fiduciary capacity for individuals, governmental entities and others. These funds carry out the specifications of trust indentures, ordinance or other regulations. Dublin Boulevard Extension Assessment District Fund - To account for the special assessment established to fund the improvements to Dublin Boulevard. 109 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2002 Balance Balance July 1, 2001 Additions Deletions June 30, 2002 Dublin Boulevard Extension Assessment District ASSETS Cashand investments $ 147,619 $ 39,890 $ 187,509 Restricted cash and investments 166,814 3,708 170,522 Accounts receivable 31,968 $ (31,968) Total Assets $ 346,401 $ 43,598 $ (31,968) $ 358,031 LIABILITIES Due to bondholders $ 346,401 $ 43,598 $ (31,968) $ 358,031 110 STATISTICAL SECTION CITY OF DUBLIN GOVERNMENTAL EXPENDITURES BY FUNCTION ALL GOVERNMENTAL FUND TYPES LAST TEN FISCAL YEARS Fiscal General Facilities Health and Highways Community Cullum and Capital Year Government Rents Public Safety Welfare and Streets Development Leisure Outlay Principal Total 1992-1993 $1,347,055 $1,718,970 $ 6,014.989 $ 76,729 $ 998.843 $1,409,594 $ 1,733,786 $2.697,724 $15,997,690 1993-1994 1,389,537 1,532,816 6,001,166 542,698 830,936 1,107,770 1,709,218 1,118,384 14.232,525 1994-1995 1,488.844 1.553,744 6.325.219 696,817 944,564 1.354,796 1,765,990 1,370,902 15,500,876 1995-1996 %392,265 1,604,480 6.986,737 1,183,933 1,043,009 '~,832,754 1,847,110 3,338,607 19,228,895 1996-1997 1,691,724 %496.816 6,968,912 734,423 1,059,275 1,930,723 2,007.715 2.552,912 18,442.500 1997-1998 1.761,618 1,493,348 8,566,630 764,979 1.090,290 2,824.242 .2,172,422 2,219.989 20,893,718 1998-1999 2.139.738 1,614.407 9.145.346 85'~,699 %240,171 3,664,325 2,248,581 4,617.733 25,521,700 1999-2000 2,274,914 9,892.983 893,254 1,504,050 4,138,916 2,827,621 13,052,015 251.004 34,834,757 2000-2001 3.085,725 10.960.642 1,139,399 1,446,053 4.572,981 3,332,421 12,077,482 301,004 36,915,707 2001-2002 3,929.919 12.523.197 1,196.457 1,546,347 4.678,31I 4,012,730 16,405,354 251,004 44,543.319 Source: City of Dublin Annual Financial Report Total Governmental Expenditures 50 000 000 ................... 45 00O 000 I ................... J ......... J" J ....... 30,000,000 .................. 25.09o000 ............... ~ ................... ~ ........ / ..... i'"~ ...... ~ i ........ ~ ._ .i ..... I J / ............i .......... ~ ....... L ..... . .v.vvv.vvv 'i ............... J j ~ ~ ' ' 5,ooo,ooo .j ............................................... ! ............................. 'l ..................................... Fiscal Years lll CITY OF DUBLIN GENERAL GOVERNMENTAL REVENUES BY SOURCE ALL GOVERNMENTAL FUND TYPES LAST TEN FISCAL YEARS Developer Property Taxes Fees and / Special Licenses inter- Charges for Use of Money Fines / Other Fiscal Year Assessments Sales Taxes Other Taxes and Permits Governmental Services and Property Revenue Tolal 1992-1993 $ 3,951,806 $ 5,484,502 $ 842.460 $ 281,921 $ 2,610,875 $ 1,171,564 $ 951,267 $ 175,273 $ 1,5,669,668 1993-1994 4,149,388 5,969,342 752,363 340,995 1,798,037 1,323,196 1,008,044 422.785 15,764,150 1994-1995 4,307,753 6,470,287 772,630 337,551 2,375.377 1.798,343 1,210,885 648,497 17,921,323 1995-1996 4,185.731 6,760,413 1,006,729 466,199 3,674,119 3,596,000 1,376,647 180.130 21,245,968 1996-1997 4,164,884 7,108,598 1,280,578 t,092,183 2,091,210 2,789,236 1,505,788 309,381 20,341,838 19974998 4,628,201 8,025,448 1,538,247 1.398,677 2,159,609 4,045,063 1,670,875 598,977 24,065,097 1995-1999 5,119,268 8,687,091 ' 1,771,602 2.472,217 2,633,035 6,447,928 1,462,691 402.799 28,996,631 1999-2000 6.310,171 11.548.901 2,414,081 3,697,965 3.056.557 14,378,621 1,461,148 965.709 44,033.153 2000-2001 7,558,939 12,985,986 3,199,197 3,028,655 4,129,090 13.368,815 2.839,691 2,979,215 50,089,588 2001-2002 9,317,376 12,813.111 2,837,678 2,327,251 4,702.126 25,015,733 3.829.352 793,930 61,636,557 Source: City of Dublin Annual Financial Report Total Governmental Revenues ,,o.o0o.®o $40.000.0o0. & ,3o.ooo,~oo~ i ....... ~ ..... ~ ............... 112 CITY OF DUBLIN ASSESSED VALUE OF TAXABLE PROPERT~ LAST TEN FISCAL YEARS Utility State Unsecured Fiscal Year Secured Property Board Roll Property Total 1992-1993 $1,344,318,745 $ 4,536,700 $ 92,379,123 $1,441,234,568 19934994 1,400,427,455 4,536,700 97,399,163 1,502,363,318 1994-1995 1,426,206,284 4,497,120 97,359,845 1,528,063,249 1995-1996 1,434,712,474 4,024,540 94,522,217 1,533,259,231 1996-1997 1,519,119,484 4,028,118 115,801,947 1,638,949,549 1997-1998 1,565,651,517 2,395,606 114,868,090 1,682,915,213 1998-1999 1,782,911,790 2,395,606 115,129,665 1,900,437,061 1999-2000 2,220,043,442 2,395,606 131,207,312 2,353,646,360 2000-2001 2,869,933,657 2,636,107 132,417,225 3,004,986,989 2001-2002 3,566,460,426 2,636,107 155,881,185 3,724,977,718 Source: Alameda County Office of the Auditor-Controller (All figures shown are net of exemptions.) Total Assessed Value of Taxable Property '4'°°t " $3-50' $3.00 $2.50 $2.oo $1.50 _ ~ $0.50 Fiscal Years 113 : CITY OF DUBLIN PROPERTY TAX RATES ALL DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS Dublin Basic San County BayArea East Bay Ramon Alameda Total Rate Fiscal Wide Levy School Flood Zone Rapid Parks Services County Per $1000 Year , ($1/$100) Districts State Bonds Transit Bond District Library Valuation 1992~1993 1.0000 0.0878 0.0132 0.0258 0.0074 * 0.0061 1.1403 1993-1994 1.0000 0.0717 0.0182 0.0240 0.0069 * 0.0060 1.1268 1994-1995 1.0000 0,0799 0.0166 0.0235 0.0066 * 0.0057 1.1323 1995-1996 1.0000 0.0648 0.0191 0.0230 0.0094 * 0.0057 1.1220 1996-1997 1.0000 0.0858 0.0187 '0.0225 0.0080 * 0.0056 1.1406 1997-1998 1.0000 0.0831 0.0178 0.0220 0.0081 * 0.0049 1.1359 1998-1999 1.0000 0.0727 0.0163 0.0167 0.0092 * 0.0057 1.1206 1999-2000 1.O000 0.0534 0.0145 0.0065 * 1.0744 2000-2001 1.0000 0.0534 0.0145 0.0065 * 1.0744 2001-2002 1.0000 0.0376 0.0158 0.0065 * ~ 1.0599 Source: Alameda County Office of The Auditor-Controller Rates Shown for Tax Code Area 26-001 which represents the largest portion of properly taxes collected in the City. · No longer assessed, bonded debt fully repaid. 114 : CITY OF DUBLIN COMPUTATION OF LEGAL DEBT MARGIN June 30, 2002 Assessed valuation: Assessed value $ 3,724,977,718 Add back exempt real property $ 64,396,816 Total Assessed Value $ 3,789,374,534 Legal debt margin: Debt limitation - 15 percent of total assessed value $ 568,406,180 Percent of debt limit authorized and issued 0,00% Source: City of Dublin Finance Department Excludes 1915 Act Bonds since they are not General Obligation Debt of the City of Dublin. 115 CITY OF DUBLIN COMPUTATION OF DIRECT AND OVERLAPPING DEB'I June 30, 2002 Percentage Net Debt Applicable to Outstanding City of Applicable to Dublin City of Dublin Jurisdiction OVERLAPPING TAX AND ASSESSMENT DEBT: Dublin Joint Unified School District 99.840% $ 39,075,176 Castro Valley Unified School District 0.080% $ 17,241 East Bay Regional Park District 2.030% $ 3,404,157 City of Dublin 1915 Act Bonds 100.000% $ 1,671,000 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 44,767,574 DIRECT AND OVERLAPPING GENERAL, FUND OI~I, IGATION DEBT. Alameda County General Fund Obligations 3.397% $ 19,517,424 Alameda County Pension Obligations 3.397% $ 15,203,891 Alameda County Superintendent of Schools Certificates of Participation 3.397% $ 149,298 Alameda - Contra Costa Transit District Certificates of Participation 0.004% $ 921 Chabot-Las Positas Com'ty College District Certificates of Participation 7.465% $ 326,594 Castro Valley Unified School District Certificates of Participation 0.084% $ 2,243 TOTAL DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 35,200,371 COMBINED TOTAL DEBT $ 79,967,945 (1) Ratios to Assessed Valuation: Total Overlapping Tax and Assessment Debt. 1.19% Combined Total Debt 2.41% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/2002:$0 (1) Excludes tax and revenue anticipation notes; revenue, mortgage revenue and tax allocation bonds, and non-bonde~ capital lease obligations. Souce: California Municipal Statistics, Inc. 116 : CITY OF DUBLIN DEMOGRAPHIC STATISTICS LAST TEN FISCAL YEARS City Rank in Alameda Population Size of Fiscal City County % of California Year I~opulation Population County Cities 1992-1993 25,853 1,337,126 1.93% 224 1993-1994 26,270 1,347,930 1.95% 225 1994-1995 26,581 1,362,893 1.95% 228 1995-1996 26,267 1,356,102 1.94% 226 1996-1997 25,544 1,371,793 1.86% 225 1997-1998 26,725 1,401,227 1.91% 224 1998-1999 28,707 1,433,309 2.00% 222 1999-2000 32,519 1,434,162 2.32% 205 2000-2001 32,570 1,474,143 2.21% 209 2001-2002 33,520 1,486,618 2.25% 209 Source: State of California Department of Finance - Population Research Unit Note: The City's Population for Fiscal Year 1999-2000 was adjusted downward based upon the 2000 U.S. Census City Population 40,000 35,000 ·,_~ 30,000 25,000 , 20,000 15,000 10,000 5,000 I o Fiscal Years 117 CITY OF DUBLIN PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS LAST TEN FISCAL YEARS Total Number of Commercial Residential Fiscal Permits Construction Construction Year Issued Value Value Bank Deposits * 1992-1993 828 $ 5,477,619 $ 7,732,367 $ 533,885,000 1993-1994 721 8,162,579 3,490,667 555,554,000 1994-1995 739 6,718,045 2,368,943 549,989,000 1995-1996 814 4,927,911 15,638,274 568,924,000 1996-I 997 790 6,855,980 64,610,527 611,507,000 1997-1998 1020 29,159,270 83,205,153 641,921,000 1998-1999 1552 93,428,185 135,438,240 684,749,000 1999-2000 2521 107,242,721 180,258,804 715,313,000 2000-2001 1828 113,618,557 155,286,401 809,281,000 2001-2002 1015 63,476,079 123, t 49,627 Not Available Source: Findley Repods, Inc. and City of Dublin Building Department Status Reports · Bank Deposits represents the amount of cash deposits held by financial institutions within the City of Dublin. - - -I~ - o Commercial Construction Value · , Residential Construction Value 118 : CITY OF DUBLIN SCHEDULE OF 1993 CERTIFICATES.OF PARTICIPATION COVERAGE FISCAL YEARS ENDED 1994-1999 Debt Service Requirement Direct Operating Net Revenue Fiscal Gross Expenses Available for Year Revenue (1) (2) Debt Service Principal interest (3) Total Coverage 1993-1994 $1,564,715 $ 12,874 $1,551,841 $910,000 $ 622,816 $1,532,816 101.24% 1994-1995 1,565,843 18,821 1,547,022 645,000 908,744 1,553,744 99.57% 1995-1996 1,594,060 18,518 1,575,542 705,000 916,027 1,621,027 99.70% 1996-1997 1,592,322 4,211 1,588,111 730,000 887,518 1,617,518 98.18% 1997-1998 1,598,447 8,385 1,590,062 765,000 856,351 1,621,351 98.07% 1998-1999 1,671,633 518 1,671,115 920,000 935,707 1,855,707 90.05% (1) Gross Revenue includes Facilities Rent and Interest Income. (2) Direct Operating Expenses excludes Interest and Depreciation. (3) Excludes Amortization of Bond Discount. Source: City of Dublin Annual Financial Report Note: Available reserves from the General Fund were used to retire the remaining $13,850,000 outstanding on this bond issue on February 1, 1999. 119 : CITY OF DUBLIN PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Percent of Total Total Tax Fiscal Property Tax Property Tax Collected to Year Levied Collected Tax Levied 1992-1993(1) $3,597,733 $3,432,895 95.42% 1993-1994 3,735,472 3,632,944 97.26% 1994-1995 3,836,151 3,614,558 94.22% 1995-1996 3,833,915 3,614,671 94.28% 1996-1997 3,921,703 3,713,665 94.70% 1997-1998 4,18,4,413 4,074,407 97.37% 1998-1999 4,798,501 4,517,234 94.14% 1999-2000 5,765,531 5,499,897 95.39% 2000-2001 7,333,215 6,959,769 94.91% 2001-2002 9,187,641 8,655,872 94.21% (1) In Fiscal Year 1992/93, state law was enacted which permanently reduced the City's share of the property tax levy and shifted it to the schools. Amount levied for all subsequent years is net of property tax shift to schools. Source: FIDL Coren & Cone and Alameda County Office of the Auditor-Controller 120 CITY OF DUBLIN PRINCIPAL PROPERTY TA3(PAYERS (Based on Secured 200'1/2002 Tax Roll) JUNE 30, 2002 Percent of Total Taxpayer Assessed Value Assessed Value 1 Hong Y. Lin & L. Hong & S. Chang $93,307,749 2.46% 2 DP, Acquisition 76,522,025 2.02% 3 Bere Island Prop~rties I LLC Et. Al 72,000,000 1.90% 4 Toll CA II Limited Partnership 62,008,896 1.64% 5 Security Capital Pacific Trust 59,948,484 1.58% 6 Rreef American REiT Corporation Y 49,042,110 1.29% 7 California State Teachers Retirement 46,600,000 1.23% 8 U.S. Property Fur~d GMBH & Company KG 34,082,200 0.90% 9 Park Sierra LLC 31,424,131 0.83% 10 HHH investment Company 30,365,454 0.80% 11 Calwest Industria[ Properties 25,634,000 0.68% 12 Shea Homes Limited Partnership 24,275,600 0.64% 13 Bay Apartment Communities Inc. 24,275,272 0.64% 14 Regal Cinemas Ir~c. 24,252,879 0.64% 15 DCA Corporate Center LLC 24,069,312 0.64% 16 Northwestern Mutual Life Insurance 21,482,616 0.57% 17 Shamrock Ford Inc. 20,629,461 0.54% 18 Koll Dublin Corporate Center 20,087,740 0.53% 19 PFRS Dublin Cori:)oration 17,884,261 0.47% 20 Phoenix Mutual Life Insurance Company 17,065,740 0.45% 21 Rafanelli & Nahas 16,570,883 0.44% 22 Brookfield Chantemar LLC 16,446,900 0.43% 23 Bonanza Markets 15,726,232 0.42% 24 Creekside North Trust 14,398,575 0.38% 25 Pan Pacific Retai!l Properties 14,226,412 0.38% Total $852,326,932 22.50% Source: HDL Co[pen & Cone, Alameda County Assessor Combined Tax Roils 121 CITY OF DUBLIN TOP 25 SALES TAX PRODUCERS 200'1-2002 BUSINESS NAME BUSINESS CATEGORY Alameda County Auction Used Automotive Dealers Babies R Us Family Apparel Barnes & Noble Stationery / Book Stores Bed Bath & Beyond Home Furnishings Best Buy Radio/Appliance Stores Cai Steam East Bay Plumbing/Electrical Supplies Carl Zeiss Opthalmic Systems Health Services Circuit City Radio/Appliance Stores Crown Chevrolet/Olds/Cadillac/Isuzu New Motor Vehicle Dealers Dublin Dodge Nissan Volkwagen & HYundai New Motor Vehicle Dealers Dublin Honda New Motor Vehicle Dealers Dublin Toyota New Motor Vehicle Dealers Expanets Office Supplies / Furniture Good Guys Radio/Appliance Stores Mervyn's Department Stores Micro Porcelaiin Dental Lab Health Services Old Navy Clothing Men's Apparel Orchard Supply Hardware Hardware Stores Shamrock Ford New Motor Vehicle Dealers Sprinkler Irrigation Specialists Lumber/Building Materials Stoneridge Motors New Motor Vehicle Dealers T J Maxx Family Apparel Target Discount Department Stores Toys R Us Specialty Stores Tri Valley Buick Pontiac GMC New Motor Vehicle Dealers Percent of Total City Sales Tax Paid By Top 25 Accounts = 58% Firms Listed Alphabetically Period: April 200f thru March 2002 Source: Hinderliter, de Llamas and Associates, State Board of Equalization 122 CITY OF DUBLIN MISCELLANEOUS STATISTICAL DATA JUNE 30, 2002 Date of Incorporation February 1982 FIRE PROTECTION: Form of Government Council/Manager Employees (City and Contract) 180 Number of Stations 2 Population 33,520 Number of Fire Personnel 31 Area 12.20 Sq. Miles Miles of Streets 65 POLICE PROTECTION: Miles of Curbs 205 Number of Stations 1 Signalized Intersections 49 Number of Police Personael 47.5 Number of Street Lights 2,550 PARKS AND RECREATION: COMMUNITY FACILITIES: Parks 14 Dublin Civic Center Acres in Parks 102.5 Dublin Senior Center Acres in Open Space 122 Shannon Community Center Dublin Swim Center Heritage Center Number of Registered Voters 13,325 (As of November 2002) EDUCATION: I. Public Elementary Schools 5 Middle School 1 High School 1 Continuation High School I II. Public $chool Enrollment: September 2002 4,356 Source: City of Dublin and Dublin Unified School District Records 123