HomeMy WebLinkAboutItem 4.07 Annual Audit Report for FY 2005-06
CITY CLERK
File # D(3OJ~-~ca
~ CoC>o-~
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: February 20, 2007
SUBJECT:
ATTACHMENTS:
RECOMMENDATION:
FINANCIAL STATEMENT:
Annual Audit Report for Fiscal Year 2005-2006 And Additional
2006/07 Appropriation of$16,500 For Actuarial Services
Report Prepared by: Ad Hoc Audit Subcommittee - Vice Mayor A
Kasie Hildenbrand and Councilmember Tony Oravetz; and Paul S. \~'11L
Rankin, Administrative Services Director
1.
2.
3.
Comprehensive Annual Financial Report of June 30, 2006
Recommendations to Management June 30, 2006
Budget Change Form
1.
2.
3.
Receive the Reports
Confirm the Reservations of Fund Balances.
Authorize an additional appropriation of $16,500 for
actuarial services in 2006/2007.
Authorize the City Manager to enter into an agreement with
Bartel & Associates, LLC for actuarial services.
4.
See Staff Report.
DESCRIPTION: The City of Dublin has compiled and published its Comprehensive Annual
Financial Report (CAFR) for the Fiscal Year ending June 30, 2006. This report, which is included as
Attachment 1, includes audited financial statements reviewed by Caporicci and Larson, CPA's (C&L).
This firm is the independent auditor selected by the City Council and this is the third year that C&L has
conducted the financial audit for the City.
The financial section of the report includes an unqualified opinion issued by C&L. The Auditors also met
with the City Council Ad Hoc Audit Committee (Vice Mayor Hildenbrand and Councilmember Oravetz)
on January 10, 2007 to review the results of the audit. Overall, based on their testing and review the
Auditors found no matters of concern, involving the City's internal controls and financial reporting that
were considered to be a material weakness.
FINANCIAL STATEMENTS
The City Financial Statements are included in the Comprehensive Annual Financial Report (CAFR). The
scope included in a CAFR exceeds the minimum amount of information required. The format is in
compliance with the requirements for a Certificate of Achievement from the Government Finance Officers
Association.
COPY TO:
G :\Audit\FY 2005-06 \Agendas\Final\agndastmtC AFR _ Audit06.doc
Page 1 of 4
ITEMNO.~
The City's audit report for Fiscal Year 2005-2006 begins with a transmittal letter (pages v - ix). This
provides a general overview of the components which make up the report. Beginning on page 3 - page 13
is the required Management Discussion and Analysis (MD&A). These sections provide a good overview
of the financial activities of the City. The focus is 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 and is of primary importance in
evaluating the City's fiscal condition. In the (MD&A) section the focus is on the major funds.
A significant portion of the CAFR is comprised of financial statements and schedules for the various
funds used to account for the City's revenue and expenditures. Since some funding sources have
restricted uses Governmental Accounting standards requires the information be maintained to accurately
account for transactions. In addition the financial statements include a Government Wide Statement of
Net Assets, which is similar to financial statements presented by private corporations. It is important for
readers to keep in mind the unique nature of government services and what is reported as assets. For
example, land dedicated for streets and parks are reported as part of the Noncurrent Assets retained by the
City. These are not liquid assets available to fund programs or on-going activities.
Pages 121 - 142 comprise the statistical section of the CAFR includes graphs of relevant historical data.
With the 2005/06 CAFR the Government Accounting Standards Board required some new schedules and
comparisons in the statistical section. The presentation of information over a longer period can be helpful
in identifying trends and/or the timing of key changes which have impacted the City's financial condition.
DISCUSSION OF RETIREE MEDICAL INSURANCE OBLIGATIONS (GASB 45)
With the 2005/06 report the City has implemented GASB 45 prior to the required timeframe. The City
would be required to implement these requirements beginning with Fiscal Year 2008/09. The City of
Dublin has for several years allocated funds to an internal service fund in order to set-aside funding for
this future obligation. The City also had a valid actuarial report prepared based on 6/30/2004 data in order
to implement the accounting requirements.
GASB 45 addresses how an agency reports costs associated with retiree medical and other benefits
received after an employee retires. Since an employee is "earning" these benefits during the employee's
entire career, the financial statements should reflect those future costs each year. In the past it was typical
to only show expenses for employees already retired. The Auditors were pleased that the City was able to
begin reporting this as part of the 2005/06 CAFR. The disclosure information appears on pages 57 - 61.
The next step will be the implementation of GASB 43 for the City Plan. This requires that the City
transfer assets held in the Internal Service Fund ($4,983,128) to a trust which will assure that the sole use
of the funds shall be for retiree medical purposes. Until the funds are transferred to a trust the GASB rules
require the City to disclose that its liability is unfunded.
The California Public Employees Retirement System has just announced that they will offer pooled
investment within a trust established under the provisions of the IRS code. In order to participate the City
needs an updated Actuarial Report. Staff have contacted an Bartel & Associates, an actuary who
provides this service for public agencies. The firm is familiar with requirements of the newly announced
Public Employee Retirement System (PERS) Pre-funding Plan and Trust and would be prepared to begin
the work as soon as the City can provide the necessary data. Once the work begins it will take 4-6 weeks
to produce the report.
It is recommended that an additional $16,500 be appropriated to the Finance Department - Contract
Services to allow Staff to proceed with Actuarial Work associated with Retiree plans as shown in
Page 2 of 4
Attachment 3. A portion of the cost will be offset by a contribution from the City of San Ramon, as the
report will also calculate liabilities associated with the Dougherty Regional Fire Authority (DRF A).
DRF A obligations are shared by the two cities.
DESIGNATIONS OF FUND BALANCES
As part of the closing entries recorded on the finacial statements is the designation of funds for specified
uses. A complete listing of both fund reserves and designations for all funds is shown on page 53 of the
report. A "Reservation" implies that there is a strong legal basis which restricts the discretion of the City
Council to use the funds for any desired purpose. A "Designation" is less restrictive and subject to policy
decisions by the City Council, which allow discretion. Some ofthe key designations are discussed below.
A. Designation For Authorized Expenditures
This designation is established to allow the City Council to carryover any unused funds as of June 30,
2006, to fund future year operations and projects for each of those funds with a positive fund balance.
The City Council is requested to confirm the designation for all funds with a positive fund balance as of
June 30, 2006, as part of accepting this report.
B. Other General Fund Designations of Fund Balance
The Administrative Services Director presented, as part of the preliminary year end financials presented to
Council in October 2006, estimated reserve amounts in the Fund Balance for the General Fund. The City
Council is requested to confirm these designations as part of accepting the final audit report. In addition,
as a result of closing entries an addition of $ 192,718 is made to the reserve for future authorized
expenditures. The Auditors have also made a change in the presentation which was previously shown as a
liability for accrued leave balances. This amount is now shown in the General Long Term Account Group
and the City will include a designation of fund balance in the General Fund. The chart below reflects the
actual amounts available for designation at the close of 2005/06.
$622,569
$3,005,548
$125,000
$622,569
$1,518,711
$5,271,828
$1,518,711
$ 4,456,541
$815,287
AD-HOC AUDIT COMMITTEE OBSERVATION - GENERAL FUND DESIGNATIONS
During the review of the designations reported in the General Fund (page 53 of the CAFR), the Ad Hoc
Audit Committee identified areas for further discussion. The first involves a request that the Auditors
review the Agreement which established the Culvert Maintenance Funds, and determine whether the
amount of $280,000 should be reflected as a legal reservation, instead of under the designation category.
The City Council Audit Committee was provided with a brief overview of the philosophy behind several
of the current designations. These funds provide the City with protection in the event that there was a
catastrophic event which interrupted the City revenue stream or required large scale capital investment in
order to recover. In addition, to the extent that the City has General Fund reserves the interest from
investing these funds becomes a significant locally controlled revenue.
Page 3 of 4
The Committee questioned whether the City Council had the discretion to reassign the General Fund
reserve of $1 million for affordable housing for other uses. The Audit Committee suggested that as the
City faces other capital project needs that may require General Fund financing, that perhaps it was
appropriate to reconsider the priority of a separate General Fund designation for affordable housing. Staff
would recommend that if this is a desirable direction that alternatives be presented as some of the refined
costs are better known about upcoming projects such as the Shannon Community Center bid award or
other proj ects that may be presented in the 2007/2008 Budget.
RECOMMENDATIONS TO MANAGEMENT (Mana2ement Letter)
As part of the Audit Review the independent auditors do present recommendations for consideration by
the City (Attachment 2). These are not of a nature that impacts the overall "clean opinion". Rather the
process allows the Auditors to note certain practices and policies, and allow Management to respond to
the input. Sometimes items in a Management Letter are mentioned to give early notice of upcoming
accounting requirements. It can also consist of suggestions based on best practices, or issues currently
faced by other government agencies.
The Management Letter provides an overview of the status of implementing GASB 43 and GASB 45
related to Retiree Medical benefits, which was discussed earlier in this report. .
In 2006, the Auditors recommended that the City Staff expand upon current personnel rules to clearly
establish a policy related to fraud in the workplace. The Auditors explained to the Audit Committee that
they did not find any evidence of improprieties in the scope of their work. Rather, they made the
recommendation as a proactive measure to assure that employees have a clear understanding of what can
constitute fraud and procedurally how it would be investigated.
As discussed in the Management Response on page 1 of Attachment 2, Staff have drafted an
Administrative Policy, which addresses fraud in the workplace. The City Attorney is in the process of
reviewing the policy. Once the document is finalized it will be issued by the City Manager and distributed
to all personnel. The importance of ethics in government has been a topic emphasized by the League of
Cities and other professional organizations. Discussion of the policy with employees will provide another
opportunity to reinforce these values.
CONCLUSION
Staff recommends that the City Council:
1) Receive and file the reports;
2) Confirm the designation of Fund Balances as presented in the annual audit report; and
3) Authorize the Budget Change in order to initiate actuarial work.
Page 4 of 4
AcomprehenSive
nnual
Financial
Report
Fiscal Year
Ended
June 30, 2006
City of Dublin
A~I
City of
Dub lin
Dublin, California
Comprehensive Annual Financial Report
For the year ended June 30, 2006
City of Dublin
Comprehensive Annual Financial Report
For the year ended June 30, 2006
Table of Contents
Page
INTRODUCTORY SECTION
Table of Contents.................................................................................................................. ..... ................................. i
Letter of Transmittal.................................................................................................................................................. v
Government Finance Officers Association (GFOA) Award ................................................................................ x
Principal Officers ...................................................................................................................................................... xi
Organizational Chart............................. .............................. ............................................... .... ........ ......................... xii
FINANCIAL SECTION
Independent Auditors' Report............................................................. ................................... .......................... ......1
Management's Discussion and Analysis ............................................................. ............................ .................. ...3
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets ...................................................................... ....................................................... .19
Statement of Activities and Changes in Net Assets................................................................................20
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet.......... .......................... ................................... ................ ......................... ... ........... ........... .24
Reconciliation of the Governmental Funds Bala.nce Sheet
to the Government-Wide Statement of Net Assets ....................................................................27
Statement of Revenues, Expenditures and Changes in Fund Ba1ances.........................................28
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Government-Wide
Statement of Activities and Changes in Net Assets...................................................................30
Proprietanj Fund Financial Statements:
Statement of Net Assets........... ............................................................................................................ .31
Statement of Revenues, Expenses and Changes in Net Assets ......................................................32
Statement of Cash Flows.................... .......................... ..................................................................... ...33
Fiducianj Fund Financial Statements:
Statement of Fiduciary Net Assets....... ........................................................................... ............... .... .34
Index to Notes to Basic Financial Statements........................................................ ............... ............... ......... ..35
Notes to Basic Financial Statements.. ..................... ........... ....................... ........... ............... ..... ............ ........ ....37
City of Dublin
Comprehensive Annual Financial Report
For the year ended June 30, 2006
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued
Required Supplementary Information:
Budgets and Budgetary Accounting........................................................................................................ .66
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and ActuaL.................................. ..................................... ............................ .............................67
Schedule of Funding Progress - Miscellaneous Plan of the California Public Employee
Retirement System.................... ...................... ................... ................... ..................... ..... .................... ..69
Supplementary Information:
General Fund:
Schedule of Budget versus Actual Revenues by Sources.......................................................................74
Schedule of Budget versus Actual Department Expenditures ..............................................................76
Major Funds:
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
Traffic Impact Fees Capital Projects Fund........ ............. ..................... ............................ ................... 79
Public Facilities Fees Capital Projects Fund.. .......................... ............. ..... .......... .... ........... ..... ...... ....80
Fire Impact Fees Capital Projects Fund.. ......................... ................... ........................ ................. ..... ..81
Housing and Noise Mitigation Special Revenue Fund ...................................................................82
Non-Major Governmental Funds:
Combining Balance Sheet............................................................................................................... ........... .86
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..........................90
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
Special Criminal Activity Special Revenue Fund.. ........ ....... ............ ............... ............... .................. 94
Vehicle Abatement Special Revenue Fund......... ............................................................................... 95
Supplemental Law Enforcement Special Revenue Fund ................................................................96
Traffic Safety Special Revenue Fund................................................................ ..................................97
State Gas Tax Special Revenue Fund................................................................................. .................98
CDBG Special Revenue Fund.............................................................................................................. 99
Transportation Development Act Special Revenue Fund .............................................................100
FEMA Special Revenue Fund............................................................................................................1 01
Measure B Sales Tax Transportation Special Revenue Fund ........................................................102
State Transportation Improvement Special Revenue Fund ..........................................................103
Measure D Recycling Special Revenue Fund ..................................................................................104
Garbage Service Special Revenue Fund......................................... ...... .............................. ..............105
Measure B Bike and Pedestrian Special Revenue Fund.................................................................106
EMS Special Revenue Fund........................................... ....................................................................107
Traffic Congestion Relief Special Revenue Fund........... ........................ ............ .... ........ ............ .....1 08
ii
City of Dublin
Comprehensive Annual Financial Report
For the year ended June 3D, 2006
Table of Contents, Continued
Page
FINANCIAL SECTION, Continued
Supplementary Information, Continued
Non-Major Governmental Funds, Continued:
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual, Continued:
Street Lighting Special Revenue Fund............... ............................................................................. .109
Stagecoach Landscape Special Revenue Fund..... ........... ............... ................................. ................11 0
Dougherty Landscape and Lighting Special Revenue Fund ........................................................111
Santa Rita Assessment District 97-1 Special Revenue Fund .........................................................112
Dublin Street Lighting Assessment Special Revenue Fund ..........................................................113
Park Dedication Fees Capital Project Fund .....................................................................................114
Internal Service Funds:
Combining Statement of Net Assets.................................................................................................... ...116
Combining Statement of Revenues, Expenses and Changes in Net Assets ......................................117
Combining Statement of Cash Flows..................................................................................................... .118
Agency Fund:
Statement of Changes in Net Assets ... ..... .............. ............. ....... ........................ ........ ..... ........ ............... .120
STATISTICAL SECTION
General Governmental Activities Tax Revenues by Sources and
Governmental Activities Tax Revenues Sources................................................................. ................. .121
Net Assets by Component........................ ......................... ..................... ................ ................................ ....... .122
Changes in Net Assets............................................................................................ ............................. ........... .123
Fund Balances of Governmental Funds..................................... ........................................................... ...... ..124
Changes in Fund Balances of Governmental Funds ...................................................................................126
Assessed Value and Estimated Actual Value of Taxable Property ...........................................................128
Direct and Overlapping Property Tax Rates................ ............... ................................................................ .129
Principal Property Taxpayers........................... ....................... ...................................................................... .130
Property Tax Levies and Collections............................................................................................................ .131
Direct and Overlapping Dept..................................................................... ................................................... .132
Legal Debt Margin Information..................................................... ............................................................ ....133
Demographic and Economic Statistics.................................................................. ................... ................. ....135
Property Value, Construction and Bond Deposits ......................................................................................136
Principal Employers ............................................ ....... ............ ..................... ...................... ....... ....................... .137
Full-time Equivalent City Government Employees by Function..............................................................138
Operating Indicators by Function............................ .......................................... .......... ..... ............................ .139
Capital Assets Statistics by Function........................................... ..................................... ........... ................. .140
Top 25 Sales Tax Producers...................................................................... ............................................... .... ....141
Miscellaneous Statistical Data........... ......................................................................... ................ .... .... ...... ......142
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CITY OF DUBLIN
100 Civic Plaza, Dublin, California 94568
Website: http://www.ci.dublin.ca.us
December 6, 2006
FIonorable Mayor and
Members of the City Council
Presented with this transmittal is the City of Dublin (City) Comprehensive Annual financiall\eport (CAFR)
fOJ the yem ended June 10.. 2006. The information in this Comprehensive Annual Financial Eeport IS
prepared in accordance ';'lith Generallv Accepted Accounting Principles (GAAP) as established by the
Govenunental Accounting Standards eoard (CASB) and includes the report prepared by' the City's
mdcpendent certified pJblic accountants. 'TIll:' responsibility for the accuracy and fairness of tl-HS report
nests with the (,
TIm; fi'port has been formatted to comply with the financial reporting model developed by GovC:"IJUnen[2.J
Accounting Standarcls Board (CA::,U) Statement 34 and includes the following:
Government"wlde financial statements designed to provide readers with a broad ov'~rVlC','. d IJH'
City in a manner similar to a pnvate sector business, including a statement of net assets and
statement of activities. It is irnportaHt to note the following regarding these statements:
.. The ~;!aterncnt of Net Assets and Statement of Activities represent <1. combination of aI! of thE
CIty'S funds. including the City's General Fund and other restricted Spe/jar E.('venw:~ anti
Capital F'nJlects funds. Information on individual funds can be found in the cOlllbining
stdlpnwnLs contained ifl the CAFR.
t rhe amount reported as "unrestricted" in the net asset section on the statement of net aSGctc,
ha;, been dcsigrlated for severa! General Fund projects previously authorized by C:otlrkiL ~b
d]';CUS3Cd m additional detail 111 the notes to the financial statements: in addition to funds
pn~viously deSIgnated for retiree health costs as well as building and equipment r(~placemenj-
(accounted for in the City's Internal Service Funds),
. The amount reported as "invested in capital assets" in the net asset seCTIon on the stat.eJnent
of net assets represents: Infrasb"ucture; Buildings and Improvements; and Machinery and
Equipment net of depreciation. This amount is not availabIc for funding of additional City
projects.
To assist with. an indIvidual's review of the City's financial statements, a narrative secti.on called the
tvIanagernent's Discussion and Analysis (MDA) has been mcluded. The MDA reports on the
financial highlights of the City and provides additional analysis 9T1 the vmiances and trends
n:vortec1 as pal. t of the financial statements. In addition, theMDA discloses ~,ignificant items
affecting the financial condition of the City.
Area Code (925) . City Manager 833-6650 . City Council 833-6650 . Personnel 833-6605 . Economic Development 833-6650
Finance 833-6640 . Public Works/Engineering 833-6630 ~ Parks & Community Services 833-6645 . Police 833-6670
Planning/Code Enforcement 833-6610 . Building Inspection 833-6620 . Fire Prevention Bureau 833-6606
Printed on Recycled Paper
higher interest revenues due to a recent rise in the rate of return earned on the City's investments. The City
anticipates that there will be sufficient reserves to cover any unanticipated revenue shortfalls for Fiscal Year
2006-2007.
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 2005-2006, the City began or continued work on several goals and objectives, including the
following:
. Planned events to recognize the 25th anniversary of the City's incorporation.
. Undertake a site master plan, programming and financial feasibility study for the Dublin Historic
Park
. Assist the Dublin Housing Authority in evaluating potential renovation/ redevelopment of their
Arroyo Vista Housing
. Complete new Senior Center
. Coordinate design for the new Community Center at Shannon Park
. Coordinate grand re-opening of Murray Schoolhouse to commemorate the 150th anniversary of the
Schoolhouse
. Developed a Public Art Master Plan
. Prepared the Dublin Village Historic Area Specific Plan to guide future development adjacent to the
City Historic Park. (The Plan was formally adopted by the City Council in September 2006).
. Completed pre-zoning and Developer agreement to facilitate the annexation of 73.97 acres (Fallon
Crossing) .
. Revised the cost structure for building permits related to solar energy systems to reduce the cost of
installation.
. Coordinated the transition of waste collection services and the implementation of new waste
diversion programs
. Participated in a multi-agency study (Tri-Valley Triangle Analysis) which has a goal to prioritize
regional transportation improvements (1-580; 1-680 and State Route 84).
. Proceeded with the design and property acquisition required to improve the intersection of Dublin
Boulevard and Dougherty Road.
. Proceeded with the design of improvements for the Fallon Road / 1-580 interchange to allow for
review of the proposed improvements by federal and state agencies.
Trends in residential and non-residential development went in opposite directions. The market for new
housing of all types softened during Fiscal Year 2005-2006, with permits issued for 903 new residential
units compared to 1,163 in the previous Fiscal Year. The valuation of residential permits issued decreased
by 37% from approximately $284 million in Fiscal Year 2004-2005 to approximately $208 million in Fiscal
Year 2005-2006. However, non-residential activity increased during Fiscal Year 2005-2006. The projected
valuation of new commercial development totaled in excess of $96.4 million a 71 % increase measured
based on the construction valuation. In the previous year the valuation of non-residential permits issued
was $56.5 million. The additions of these new residential and commercial properties are anticipated to be
added to the City's taxable assessed value for Fiscal Year 2006-2007.
vii
ACCOUNTING SYSTEM AND BUDGETARY CONTROL
Note 1 in the Basic 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 make budget adjustments between line items which are within
the same Department and/ or to authorize transfers from the Contingent Reserve. Expenditures may not
exceed budgeted appropriations at the departmental level without City Council approval. However, the
City Manager is authorized to transfer funds from the contingent reserve to operating departments salary
and benefit accounts when required due to a.) employee turnover or change in status b.) City Council
approved funding for increases in employees salaries and benefits and c.) City Council approved funding
for increase in contract or labor rates.
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, 2006 is $1,201,000. The debt service schedule will
result in full repayment by 2012. This amount is repayable from 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, 2006. 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 many Bay Area cities. The coverage limit for Fiscal Year 2005-2006 was $15
million per occurrence for general liability claims, 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 insurance pool purchases the required employee bonds from a commercial surety company. In
accordance with GASB 10, the City established a liability of $242,382 for claim deductib1es. 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 2005-2006 was $35,120. In addition, the City is also a member of the Cities
Group, a Joint Powers Authority which provides insurance coverage for worker's compensation.
CASH MANAGEMENT
Cash temporarily idle during the year was invested in accordance with adopted investment policies. The
City's yield on all of its investments as of June 30, 2006 was 4.061 %. This was an increase from 3.289%
reported for the year ended June 30, 2005. As of June 30, 2006, the City's portfolio of Federal Security
investments had an average weighted maturity of 1.4 years. In addition, the City has sufficient investments
viii
in the State's Local Agency Investment Fund (LAIF) 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 the City's financial records. The
information presented includes a review of operations and changes in financial position. This report
includes the Auditor's unqualified opinion on the City's combined financial statements.
AWARDS
The Government Finance Officers' Association (GFOA) has recognized the City of Dublin for its
Comprehensive Annual Financial Report covering the period ending June 30, 2005. A copy of the award
from this entity is included in this report. This award represents the sixteenth consecutive year that the
City's report was recognized by the GFOA. In order to be recognized, the City was required to produce an
easily readable and efficiently organized report. The report must also meet the standard for generally
accepted accounting principles and legal requirements.
ACKNOWLEDGMENTS
Among the responsibilities assigned to the Administrative Services Department are the functions
associated with Finance. It is especially appropriate to recognize the efforts of Fred Marsh, Finance
Manager, Administrative Analyst Lisa Hisatomi, Finance Technicians Lynn Harrington, Katie Mooney and
Diane Stanley and Office Assistants Wartda Oppenheim and Rebecca Roberts in preparing this report.
The City is fortunate to have these dedicated staff members who devoted extensive time and energy in
preparing such a comprehensive report. The City has had its financial reports recognized by GFOA for
many years, which is a significant accomplishment. Staff also appreciates the professional effort expended
by the independent auditors of Caporicci & Larson, Certified Public Accountants, in the preparation of the
financial statements.
The 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,
(?a.J ):,/~
Paul S. Rankin
Administrative Services Director
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CeI"tificate of
Achievelnent
for Excellence
in Financial
Reporting
Presented to
City of Dllblill
Calif ofIlia
For its Comprehensive AIUlual
Financial Rep0l1
for the Fiscal Year Ended
J uue 30, 2005
A Certificate of Achievement for Excellence in Financial
Reponing is presented by the GO\'emment Finance OHker
Association of the "Cnited States and Canada to
go\'enunent units and public employee retirement
systems whose comprehensive annllal linancial
reports {CAFRs) achieve the highest
standards in go\'erIUl1ent accounting
and tlnancial reponing.
President
~/~
Executive Director
x
CITY OF DUBLIN
PRINCIPAL OFFICERS
June 30, 2006
Mayor
Janet Lockhart
Vice Mayor
Tony Oravetz
Councibnember
Claudia McCormick
ADMINISTRATION PERSONNEL
City Manager
Assistant City Manager
Administrative Services Director
City Attorney
City Clerk
Chief of Police
Public Works Director
Community Development Director
Parks & Community Services Director
Fire Chief
xi
Councilmember
Kasie Hildenbrand
Councilmember
George Zika
Richard Ambrose
Joni Pattillo
Paul Rankin
Elizabeth Silver
Fawn Holman
Gary Thuman
Melissa Morton
Jeri Ram
Diane Lowart
Bill McCammon
Legend
. Elected
Appointed
Volunteers
CITY OF DUBLIN ORGANIZATIONAL CHART
City staff
Residents of Dublin
~:
City Council
I I I
Heritage & Parks & Community City Manager Planning City
Cultural Arts Services Commission Attorney
Commission Commission City Clerk
Elections I
Economic Development I
Assistant City Manager
I I Housing
Central SeNices Committee
Youth Senior Human Resources (Pilot)
Advisory Center Disaster Preparedness
Committee Advisory Waste Management
Committee Community Cable TV
CrossinQ Guards
I
I I I I I
Police Services Community Parks & Administrative Public Works Fire
Development Community Services Services Services
Building Management
Police Building & Safety Recreation Finance Traffic Signals
Animal Control Planning Library SeNices Information Street Lighting
Housing Cultural Activities Systems! Street Maintenance
Heritage Center Technology street Sweeping
Dublin Cemetery Street Tree Maintenance
Parks & Facilities Mgmnt Street Landscaping Maint
Child Care Park Maintenance
Engineering
Ic L
Caporicci & Larson
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Dublin
Dublin, California
We have audited the accompanying financial statements of governmental activities, each major fund,
and the aggregate remaining fund information of the City of Dublin, California (City), as of and for the
year ended June 30, 2006, which collectively comprise the City's basic financial statements as listed in the
table of contents. These financial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these basic financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards in the United States
and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the basic financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the basic financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall basic financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, such basic 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 as of June 30, 2006, and the respective changes in financial position and cash
flows, where applicable, thereof for the year then ended in conformity with generally accepted
accounting principles in the United States.
As described in Note 1 to the basic financial statements, the City adopted Statement of the Governmental
Accounting Standards Board No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and
Insurance Recoveries, No. 44, Economic Condition Reporting: The Statistical Section (an amendment of NCGA
Statement 1), No. 45, Accounting and Financial Reporting btj Employers for Postemployment Benefits Other than
Pension, No. 46, Net Assets Restricted by Enabling Legislation, and No. 47, Accounting for Termination
Benefits.
In accordance with Government Auditing Standards, we have also issued our report dated September 22, 2006,
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. The purpose of that report is to describe
the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards and
should be considered in assessing the results of our audit.
Toll Free Ph: (877) 862-2200
Toll Free Fax: (866) 436-0927
Oakland
180 GranclAve., Suite 136';
Oakland, California 94612
Orange County
9 Corporate Park, Suite 100
Irvine, California 92606
Sacramento
7T! Campus Commons Rd., Suite 200
Sacramento, California 95825
San Diego
48';8 Mercury, Suite 106
San Diego, California 92111
To the Honorable Mayor and Members of the City Council
of the City of Dublin
Dublin, California
Page 2
The accompanying Required Supplementary Information, such as management's discussion and
analysis, budgetary comparison information and other information as listed in the table of contents are
not a required part of the basic financial statements but are supplementary information required by the
Governmental Accounting Standards Board. We have applied certain limited procedures, which
consisted principally of inquires 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 oprmons on the financial statements that
collectively comprise the City's basic financial statements. The accompanying supplementary
information is presented for purpose of additional analysis and is not a required part of the basic
financial statements. The supplementary information has 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. The introductory section and
statistical tables have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and accordingly, we express no opinion on them.
~~. 1- 6:u~
Oakland, California
October 6, 2006
2
CITY OF DUBLIN
Management's Discussion and Analysis (MDA)
June 30, 2006
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 30,2006.
Please read this overview in conjunction with the accompanying letter of transmittal and the accompanying
basic financial statements.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements,
which are comprised of three components:
. Government-wide financial statements - These include the Statement of Net 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 17-21 of this report.
. 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 23-34 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 35-64 of this report.
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 pages 65-69 of this report.
GOVERNMENT-WIDE FINANCIAL STATEMENTS AND FINANCIAL ANALYSIS
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 among indicators used to assess 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 values; and sales tax outlets; and the condition of the City's infrastructure (i.e. parks and
streets), to accurately assess the overall health of the City.
3
CITY OF DUBLIN
Management's Discussion and Analysis (MDA)
June 30, 2006
The Government-Wide statements present information about the City's activities, all of which are
considered governmental in nature. These include services provided for police, fire, community
development, streets and culture and leisure. These services are funded from monies received from
property, sales, and other taxes, direct charges for services provided, grants, contributions from other
agencies and impact fees collected from new development.
As shown in Table 1, during Fiscal Year 2005-06, the City's net assets, representing the difference between
total assets and total liabilities, increased by $11.6 million (2.4%) to $494.1 million from $482.5 million (as
restated) in Fiscal Year 2004-05. The increase resulted from lower than expected General Fund expenditures
and the receipt of impact fees due to new development occurring within the City. Impact Fee funds are
used to finance future improvements to the City's infrastructure, including its parks and streets and fire
facilities.
Table 1 below summarizes the City's net assets.
TABLE 1
Governmental Activities
Item June 30, 2006 June 30, 2005 $ Change % Change
Current and other assets $123,055,160 $112,679,924 $10,375,236 9,2%
Capital assets 387,888,143 383,667,187 4,220,956 1,1%
Total assets 510,943,303 496,347,111 14,596,192 2.9%
Other liabilities 16,807,912 13,843,107 2,964,805 21.4%
Total Liabilities 16,807,912 13,843,107 2,964,805 21.4%
Invested in capital assets 387,888,143 383,667,187 4,220,956 1.1%
Restricted 48,480,463 45,288,468 3,191,995 7.0%
Unrestricted
(See Note 7 to Financials for Council Designations) 57,766,785 53,548,349 4,218,436 7,9%
Total net assets $494,135,391 $482,504,004 $11,631,387 2.4%
A significant portion of the City's net assets ($387.9 million or 78.4%) 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. The City's total liabilities of $16.8
million represents obligations outstanding for current operations, capital projects and deposits held for
development projects.
$48.5 million or 9.8% of the assets as of June 30, 2006 represent resources that are subject to external
restrictions on how they may be used by outside agencies and state regulations. Unrestricted net assets
($57.8 million or 11.7%) may be used to meet the government's ongoing obligations to citizens and
creditors.
However, as discussed in the notes to the financial statements, much of the $57.8 million of unrestricted net
assets includes the unreserved portion of General Fund balance which has either been designated for future
equipment replacement and retiree health care costs or has been designated by Council for use on several
future projects and to cover economic uncertainties. This represents an increase of $4.2 million over Fiscal
Year 2004-05.
4
CITY OF DUBLIN
Management's Discussion and Analysis (MDA)
June 30, 2006
Total revenues from all sources were $71.3 million and total expenditures for all City programs were $59.7
million.
For Fiscal Year 2005-06, the City had no long term debt outstanding at June 30, 2006.
Governmental Activities The charts on the following page summarize major expenditure program
categories, program revenues used to fund specific expenditure programs, and general City revenues
available for funding all City programs.
Table 2 - Changes in Net Assets
Fiscal Year Ending June 30th
2006 2005 $ Change % Change
Expenses - Governmental Activities
General government $ 4,940,585 $ 3,081,581 $ 1,859,004 60,3%
Public safety 20,314,535 19,047,262 1,267,273 6.7%
Highways and streets 13,894,865 19,810,590 (5,915,725) -29.9%
Health and welfare 1,887,417 1,722,224 165,193 9,6%
Culture and leisure services 10,074,239 8,954,495 1,119,744 12.5%
Community development 8,553,888 7,210,558 1,343,330 18.6%
Total governmental activities expenses 59,665,529 59,826,710 (161,181) -0,3%
Program revenues:
Governmental activities:
Charges for services:
General government 4,011 5,198 (1,187) -22.8%
Public safety 1,270,233 1,197,925 72,308 6,0%
Highways and streets 2,167,740 2,451,377 (283,637) -11,6%
Health and welfare 2,092,566 1,541,361 551,205 35,8%
Culture and leisure services 1,751,965 1,617,013 134,952 8.3%
Community development 6,629,383 6,969,366 (339,983) -4,9%
Operating grants and contributions 238,053 169,906 68,147 40.1%
Capital grants and contributions 18,900,426 42,585,906 (23,685,480) -55,6%
Total governmental activities
program revenues 33,054,377 56,538,052 (23,483,675) -41.5%
Net revenues (expenses): $ (26,611,152) $ (3,288,658) $ (23,322,494) 709.2%
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes 16,891,670 14,167,079 2,724,591 19.2%
Sales tax 14,363,863 14,152,987 210,876 1,5%
Other taxes 3,343,943 3,181,939 162,004 5.1%
Motor vehicle in lieu, unrestricted 856,766 413,075 443,691 107.4%
Investment income, unrestricted 2,505,911 2,704,647 (198,736) -7.3%
Other general revenues 280,386 199,233 81,153 40.7%
Total governmental activities 38,242,539 34,818,960 3,423,579 9.8%
Changes in net assets 11,631,387 31,530,302 (19,898,915) -63.1 %
Net Assets - Beginning of Year 481,132,095 168,450,146 312,681,949 185,6%
Prior Period Adjustment 1,371,909 281,151,647 (279,779,738) -99.5%
Net Assets - End of Year $ 494,135,391 $ 481,132,095 $ 13,003,296 2,7%
5
CITY OF DUBLIN
Management's Discussion and Analysis (MDA)
June 30, 2006
Revenues by Source (In Millions)
Total Revenues $71.3 Million
Other Taxes -
6.0% $4.2
Charges for
Services -19.5%
$13.9
Sales Tax -
20.1% $14.4
Cont/Grants
- 26.8% $19.1
Other Revenues .
3.9% $2.8
Property Taxes -
23.7% $16.9
Expenses by Program (In Millions)
Total Expenses - $59.7 Million
Community
Development -
14.3% $8.6
Health and
Welfare - 3.2%
$1.8
General
Government -
8.3% $4.9
Highways and
Streets - 23.30/.
$13.9
Culture Leisure
16.9%$10.1
Public Safety -
34.0% $20.3
6
CITY OF DUBLIN
Management's Discussion and Analysis (MDA)
June 30, 2006
Governmental activities increased the City's net assets by $11.6 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 $17.0 million in development impact and housing in lieu fees in its Governmental
funds, which will be used to fund current and future streets and parks improvements and
development of new affordable housing opportunities.
. During Fiscal Year 2005-2006, the City transferred $900,000 worth of capital assets to its Equipment
and Building Replacement Internal Service Funds. These had all previously been fully expensed in
its General and Capital Project funds. This transfer was recognized as contribution revenue in the
Equipment and Building Replacement Internal Service Funds.
. The City continued to see significant increases in General Fund property taxes collected resulting
from new commercial and residential growth that occurred during the last few fiscal years.
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 twenty-six 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, for the Traffic Impact Fees, Public Facilities Fees and Fire
Impact Fees Capital Project Funds and for the Housing and Noise Mitigation Special Revenue Fund. These
funds either qualify or the City requested them to be classified as major funds due to their significance in
the financing of new capital assets. Data from the other twenty-one 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.
7
CITY OF DUBLIN
Management's Discussion and Analysis (MDA)
June 30, 2006
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 and funding of future retiree medical costs. 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 four internal service funds are combined into a single,
aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal
service funds is provided in the form of combining statements elsewhere in this report.
Fiduciary Funds The 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.
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As of June 30, 2006, the City's governmental funds reported combined ending fund balances of $97.1
million, an increase of $6.6 million over the prior year. Of the increase, $2.7 million occurred in the City's
Public Facility Fee Capital Projects Fund and $3.1 Million in the City's General Fund and 0.8 Million
occurred in the City's other governmental funds. The increase in combined ending fund balances is
primarily attributable to lower than expected General Fund expenditures, and the receipt of impact fees due
to new development occurring within the City. The use of the impact fees are restricted for capital related
improvements required to support new growth. The following provides a more detailed financial analysis
by fund type.
GENERAL FUND
The General Fund is the chief operating fund of the City. At the end of Fiscal Year 2005-06, unreserved
fund balance of the General Fund was $48.8 million and total fund balance of the General Fund was $50.9
million. As discussed in Note 7 to the financial statements, the entire amount of unreserved fund balance
has been designated by Council for use on several future projects and to cover economic uncertainties.
8
CITY OF DUBLIN
Management's Discussion and Analysis (MDA)
June 30, 2006
During Fiscal Year 2005-06, the General Fund revenues exceeded its expenditures by $3.1 million. This
includes $1.5 million in carryovers for various capital projects and other one time expenditures. The
primary reasons for the variance were due to lower than anticipated operating costs and CIP expenditure
timing extended beyond the end of the Fiscal Year.
Significant changes in Revenues and Expenditures that affected this increase in General Fund balance are
discussed below:
a. Revenue Highlights
Actual Revenues in the General Fund were over its final budget by approximately $492,000 primarily
due to the following:
Property Taxes increased over the prior year primarily due to new residential and commercial units
(mostly in Eastern Dublin) constructed in Fiscal Year 2004-05 and included for the first time on the
2005-06 tax roll. The City's taxable assessed value increased from $5.5 billion in Fiscal Year 2004-05
to $6.3 billion in Fiscal Year 2005-06, a 14.5% 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. Because significant development is occurring on
land that was previously undeveloped the growth in assessed value can be dramatic. In addition,
the City continued to receive additional property tax payments in lieu of a portion of vehicle license
fees previously received from the State of California.
Taxes Other Than Property increased from the prior year primarily due to an increase in sales tax
collections at the City's major retail outlets, an increase in Transient Occupancy Taxes collected due
to an increase in occupancy rates at the City's Hotels over the prior Fiscal Year and an increase in
franchise taxes collected resulting from the residential growth occurring within the City.
Licenses and Permits decreased from the prior year due to a reduction in the number of building
permits issued for new residential units.
Revenue from Use of Money and Property decreased from the prior year primarily due to a
temporary decline in the market value of the investments held in u.s. governmental securities. The
City anticipates holding all of these investments until maturity, thereby recovering the amount of
these temporary declines in future years. Excluding these market value adjustments, the City's
actual interest earnings received increased over the prior year due to an increase in the rate of return
earned on the City's investments.
Intergovernmental Revenues are higher than in the prior year due to the receipt of a one time
payment of additional vehicle license fees from the State of California.
Charges for Services are higher than in the prior year resulting from additional reimbursements
received from Alameda County for fire service calls to the Santa Rita County jail.
Other Revenues showed a decrease from the previous year due to reimbursements received in the
prior Fiscal Year from other entities for expenditures incurred on the undergrounding of utilities on
a portion of Dublin Boulevard.
9
CITY OF DUBLIN
Management's Discussion and Analysis (MDA)
June 30, 2006
b. Expense Highlights
General Fund Actual expenditures were under its final budget by $5.3 million largely due to: capital
projects being carried over to Fiscal Year 2006-07; lower than expected use of contract personnel in the
Planning and Building divisions; and lower than expected costs incurred for contract police and park
maintenance services.
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.
After taking into account these adjustments, actual expenditures were $5.3 million lower than final
budget amounts. Of the total, $2.4 million related to either capital projects whose final costs were lower
than were originally anticipated or were carried over to Fiscal Year 2006-2007. Most of the other budget
to actual variances were due to delays in development occurring within the City (some of which will be
carried over to Fiscal Year 2006-2007), department salary and benefit savings and lower than anticipated
costs for contract public safety services.
CAPIT AL PROJECTS AND SPECIAL REVENUE FUNDS
The City's other major funds consist of the Traffic Impact Fees, Public Facilities Fees and Fire Impact Fees
Capital Project funds and the Housing and Noise Mitigation Special Revenue Fund. These funds account
for fees received from developers due to the impacts placed on the City from their new developments or to
meet the City's affordable housing requirements. The funds received from developers are used to expand
affordable housing opportunities within the City, or for required infrastructure, including additional
streets, parks, public and fire station facilities. At the end of Fiscal Year 2005-06, total fund balance of these
funds was $42.1 million, as listed below:
Beginning Change for Ending Fund
Fund Name Fund Balance Fiscal Year Balance
Trafffic Impact Fees $18,238,374 $1,319,425 $19,557,799
Public Facilities Fees 8,712,054 2,704,425 11,416,479
Fire Impact Fees 308,691
Housing and Noise Mitigation Fees 12,847,554 195,508 13,043,062
Total $37,595,693 $4,528,049 $42,123,742
10
CITY OF DUBLIN
Management's Discussion and Analysis (MDA)
June 30, 2006
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. The positive change in
fund balance for all funds listed was due to impact and housing in lieu fees collected on new residential and
commercial development.
The capital project fund revenues collected during the year and existing fund balances were used to pay for
the following expenditures during Fiscal Year 2005-06
Traffic Impact Fees
. Partial design of two significant projects: the Fallon Road Interchange; and Scarlett Drive/Iron
Horse Extension
. Contribution to Bay Area Rapid Transit (BART) to enable BART to proceed with the construction of
a new BART station
. Design and purchase of right of way for the Dougherty Road Widening project
Public Facilities Fees
. Completion of construction of Emerald Glen Park Phase III
. Purchase of eight acres of land to be included in the future Fallon Sports Park
. Completion of construction of new senior center
PROPRIET ARY FUNDS
The City's proprietary funds (i.e. internal service funds, consisting of the Equipment Replacement, Fire
Equipment and Station Replacement, Building Replacement and Retiree Health Care 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, 2006 totaled $9.8 million, as
listed below:
Fund Name
Equipment Replacement
Fire Equipment and Station Replacement
Building Replacement
Retiree Health Care
Total
Beginning Fund
Balance
Change for
Fiscal Year
Ending Fund
Balance
$1,904,408
1,195,370
1,500,196
4,328,789
$8,928,763
$368,537
190,530
132,204
135,973
$827,244
$2,272,945
1,385,900
1,632,400
4,464,762
$9,756,007
Council has designated the entire $9.8 million for future replacement of equipment, vehicles and building
improvements and funding of future retiree medical costs.
11
CITY OF DUBLIN
Management's Discussion and Analysis (MDA)
June 30, 2006
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets The City's investment in capital assets for its governmental activities as of June 30, 2006,
amounts to $387.9 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 bellow. During the current fiscal year, the City's
investment in capital assets increased by approximately $4.2 million (1.1 %).
Item
Land
Streets right of way
Construction in Progress
Infrastructure
Buildings and Improvements
Machinery and Equipment
Less Accumulated Depreciation
Total
TABLE 3
Governmental Activities
June 30, 2006
$149,748,902
29,347,848
7,545,520
288,385,572
57,045,042
6,241,588
(150,426,329)
$387,888,143
June 30, 2005
$144,327,102
24,587,573
15,205,552
276,637,482
50,044,589
6,115,049
(133,250,160)
$383,667,187
$ Change
$5,421,800
$4,760,275
$11,748,090
$7,000,453
$126,539
(17,176,169)
$4,220,956
% Change
4%
19%
-50%
4%
14%
2%
13%
1%
Major capital asset events during the current fiscal year included the projects listed below:
TABLE 4
Fiscal Year
2005-2006
Ex enditures
$605,799
$3,392,018
$191,846
$350,767
$189,368
$1,250,000
$3,978,125
$381,296
$131,566
$371,287
$5,424,804
In addition, approximately $5.8 million of street improvements were dedicated to the City by developers
during Fiscal Year 2005-2006. 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 2005-06, 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 $239.5 million. Additional information on long-term debt is located in
note 5 of this report.
12
CITY OF DUBLIN
Management's Discussion and Analysis (MDA)
June 30, 2006
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
Given the state of the local economy, caution was exercised in developing the City's budget for Fiscal Year
2006-07. The City's adopted budget for Fiscal Year 2006-07 for all funds was $107.5 million, which includes
an appropriation of $50.6 million for operations, $43.7 million for Capital Projects and a $13.2 million set
aside to reserves. The amount budgeted for operations represents an increase of approximately 9% over
Fiscal Year 2005-06 and is primarily due to projected increases in personnel costs and contract public safety
services necessary to provide services in a growing community. There are also costs relating to processing
of new development that is continuing to occur within the City.
Major Capital Projects funded for Fiscal Year 2006-2007 include work on the following capital projects:
. City Cablecast System
. Building Permit System
. Dublin Ranch Neighborhood Parks
. Dougherty Hills Park - Dog Park
. Fallon Sports Park
. Shannon Community Center Reconstruction
. Eastern Dublin Arterial Street Improvements
. Construction of Improvements to Fallon Road Freeway Interchange
. Dougherty Road Improvements - Houston Place to 1-580
. St. Patrick's Way - Regional Street to Golden Gate Drive
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. A copy of this financial report is
also located at the City's website - www.ci.dublin.ca.us.
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14
BASIC
FINANCIAL STATEMENTS
15
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16
GOVERNMENT -WIDE
FINANCIAL STATEMENTS
17
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18
City of Dublin
Statement of Net Assets
June 30, 2006
Governmental
Activities
ASSETS
Current assets:
Cash and invesbnents $ 109,886,691
Accounts receivable 4,556,450
Accrued interest receivable 866,405
Prep aids 2,080
Other assets 1,762,000
Total current assets 117,073,626
Noncurrent assets:
Notes Receivable 4,731,534
Long-term receivable 1,250,000
Capital assets (non-depreciable):
Land 149,748,902
Streets right of way 29,347,848
Construction in progress 7,545,520
Capital assets (depreciable):
Infrastructure 288,385,572
Buildings and improvements 57,045,042
Machinery and equipment 6,241,588
Less accumulated depreciation (150,426,329)
Total capital assets 387,888,143
Total noncurrent assets 393,869,677
Total assets 510,943,303
LIABILITIES
Current liabilities:
Accounts payable 10,720,088
Accrued wages 198,760
Deposits payable 3,859,482
Unearned revenue 130,491
Due to Other 314,934
Contract retention payable 170,904
Compensated absences 35,000
Liabilities insurance claims payable 242,382
Total current liabilities 15,672,041
Noncurrent liabilities:
OPEB obligation 548,302
Compensated absences 587,569
Total noncurrent liabilities 1,135,871
Total liabilities 16,807,912
NET ASSETS
Invested in capital assets 387,888,143
Restricted for:
Public safety 334,639
Impact fee projects 30,974,276
Highways and streets 3,346,137
Health and welfare 13,825,411
Total restricted 48,480,463
Umestricted 57,766,785
Total net assets $ 494,135,391
See accompanying Notes to Basic Financial Statements,
19
City of Dublin
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2006
Program Revenues
Operating Capital
Charges for Contributions Contributions
Expenses Services and Grants and Grants
Governmental activities:
General government $ 4,940,585 $ 4,Ol1 $ $
Public safety 20,314,535 1,270,233 115,747 142,102
Highways and streets 13,894,865 2,167,740 7,898,485
Health and welfare 1,887,417 2,092,566 122,306 169,411
Culture and leisure 10,074,239 1,751,965 10,690,428
Community development 8,553,887 6,629,383
Total governmental activities $ 59,665,529 $ 13,915,898 $ 238,053 $ 18,900,426
General revenues:
Taxes:
Property taxes
Sales tax
Vehicle license taxes
Other taxes
Total taxes
Intergovernmental (unrestricted)
Miscellaneous
Umestricted investment earnings
Total general revenues
Change in net assets
Net assets:
Beginning of year, as restated (Note 12)
End of year
See accompanying Notes to Basic Financial Statements,
20
Net (Expenses)!
Revenue and
Changes in
Net Assets
Total
Program Governmental
Revenues Activities
$ 4,011 $ (4,936,574)
1,528,082 (18,786,453)
10,066,225 (3,828,640)
2,384,283 496,866
12,442,393 2,368,154
6,629,383 (1,924,504)
$ 33,054,377 (26,611,152)
16,891,670
14,363,863
856,766
3,343,943
35,456,242
163,809
116,577
2,505,911
38,242,539
11,631,387
482,504,004
$ 494,135,391
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22
FUND FINANCIAL STATEMENTS
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 Project Fund - is used to account for impact fees received from developers
of properties, which can only be used for the design, development, and construction of new public facilities
within the City.
The Fire Impact Fees Capital Projects Fund - is used to account for fees received from developers of
properties, which can only be used for the design, development, and construction of fire capital expansion
projects within the City.
The Housing and Noise Mitigation Special Revenue 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 citywide
affordable housing projects and noise mitigation projects in Eastern Dublin.
23
City of Dublin
Balance Sheet
Governmental Funds
June 30, 2006
Capital Projects Funds
Traffic Public Fire
Impact Facilities Impact
General Fees Fees Fees
ASSETS
Cash and investments $ 58,634,846 $ 16,791,120 $ 11,508,942 $
Accounts receivable 3,271,092 896,520
Accrued interest receivable 845,716 20,689
Notes Receivable
Due from other funds 77,173
Prep aids 2,080
Other Assets 1,762,000
Long-term receivables 1,250,000
Advances to other funds 1,893,598
Total ass ets $ 64,724,505 $ 20,720,329 $ 11,508,942 $
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable $ 8,985,657 $ 1,162,530 $ 86,085 $
Accrued wages and other payroll liabilities 198,760
Deposits payable 3,859,482
Contract retention payable 95,922 6,378
Liabilities insurance claims payable 242,382
Deferred Revenue 130,491
Due to other funds
Due to Other 314,934
Advances from other funds 1,893,598
Total liabilities 13,827,628 1,162,530 92,463 1,893,598
Fund Balances:
Reserved 2,080,678 19,557,799 11,416,479
Unreserved, designated reported in:
General fund 48,816,199
Unreserved, undesignated, reported in:
Capital projects funds (1,893,598)
Total fund balances 50,896,877 19,557,799 11,416,479 (1,893,598)
Total liabilities and fund balances $ 64,724,505 $ 20,720,329 $ 11,508,942 $
See accompanying Notes to Basic Financial Statements.
24
Special Revenue
Housing and Non-Major
Noise Governmental
Mitigation Funds Total
$ 8,374,261 $ 4,272,087 $ 99,581,256
388,838 4,556,450
866,405
4,731,534 4,731,534
77,173
2,080
1,762,000
1,250,000
1,893,598
$ 13,105,795 $ 4,660,925 $ 114,720,496
$ 62,733 $ 392,021 $ 10,689,026
198,760
3,859,482
68,604 170,904
242,382
130,491
77,173 77,173
314,934
1,893,598
62,733 537,798 17,576,750
13,043,062 4,123,127 50,221,145
48,816,199
(1,893,598)
13,043,062 4,123,127 97,143,746
$ 13,105,795 $ 4,660,925 $ 114,720,496
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26
City of Dublin
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Assets
June 30,2006
Fund Balances of Governmental Funds
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities are not current financial resources and therefore are not
reported in the Governmental Funds Balance Sheet.
Non depreciable assets (Land and construction in progress)
Depreciable buildings, property, equipment and infrastructure, net
Total capital assets
Compensated absences payable, are not due and payable in the current period and therefore are not
reported in the governmental fund financial statements:
OPEB liability, are not due and payable in the current period and therefore are not reported in the
governmental fund financial statements:
Internal service funds are used by management to charge the cost 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 Government-Wide Statement of Net Assets,
Net Assets of Governmental Activities
See accompanying Notes to Basic Financial Statements.
27
$ 97,143,746
179,362,413
159,261,484
338,623,897
(622,569)
(29,936)
59,020,253
$ 494,135,391
City of Dublin
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2006
Capital Projects Funds
Traffic Public Fire
Impact Facilities Impact
General Fees Fees Fees
REVENUES:
Property taxes $ 16,775,906 $ $ $
Sales tax 14,363,863
Other taxes 3,207,372
Intergovernmental 1,020,574
Licenses and permits 3,142,223
Charges for service 5,774,669
Interest 1,447,812 568,982 324,377
Use of property 123,154
Fines and forfeitures 149,467
Developer fees 5,859,694 7,453,376 383,741
Other revenue 400,245
Special assessments
Total revenues 46,405,285 6,428,676 7,777,753 383,741
EXPENDITURES:
Current:
General government 4,907,956 75,050
Public safety 19,746,838
Highways and streets 1,779,004
Health and welfare 23,829
Culture and leisure 5,948,563
Community development 7,798,412
Capital outlay:
General 606,779 59,381
Community improvement 780,955
Parks 1,037,008 5,013,947
Streets 660,582 5,109,251
Total expenditures 43,289,926 5,109,251 5,073,328 75,050
REVENUES OVER (UNDER) EXPENDITURES 3,115,359 1,319,425 2,704,425 308,691
OTHER FINANCING SOURCES (USES):
Transfer in 15,189
Transfer out
Total other financing sources (uses) 15,189
NET CHANGE IN FUND BALANCES 3,130,548 1,319,425 2,704,425 308,691
FUND BALANCES:
Beginning of year, as restated 47,766,329 18,238,374 8,712,054 (2,202,289)
End of year $ 50,896,877 $ 19,557,799 $ 11,416,479 $ (1,893,598)
See accompanying Notes to Basic Financial Statements.
28
Special Revenue
Housing and Non-Major
Noise Governmental
Mitigation Funds Total
$ $ 115,764 $ 16,891,670
443,196 14,807,059
3,207,372
1,572,762 2,593,336
3,142,223
1,315,436 7,090,105
363,661 154,601 2,859,433
123,154
190,869 340,336
209,411 3,112,052 17,018,274
426,470 826,715
645,230 645,230
573,072 7,976,380 69,544,907
4,983,006
795,537 20,542,375
757,123 2,536,127
1,883,121 1,906,950
5,948,563
384,164 17,357 8,199,933
666,160
57,663 838,618
4,138,532 10,189,487
1,332,617 7,102,450
384,164 8,981,950 62,913,669
188,908 (1,005,570) 6,631,238
6,600 21,789
(21,789) (21,789)
6,600 (21,789)
195,508 (1,027,359) 6,631,238
$
12,847,554
13,043,062 $
5,150,486
4,123,127 $
90,512,508
97,143,746
29
City of Dublin
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes
in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets
For the year ended June 30, 2006
Net Change in Fund Balance - Total Governmental Funds
$
6,631,238
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 acquisition of capital assets as expenditures in various functions and in capital outlay,
However, in the Government-Wide Statement of Activities and Changes in Net Assets, the cost of those assets is
allocated over their estimated useful lives as depreciation expense, This is the amount of capital assets adclitions
recorded in the current period. This amount excludes the internal service funds capital asset additions of $1,127,250
18,796,715
In the Statement of Activities, capital assets donated to the City are reported as general revenue, whereas in the
governmental funds, capital assets donated do not increase financial resources, Thus, the change in net assets
differs from the change in fund balances by the value of the asset donated,
1,752,011
Changes in long term compensated absences in governmental activities are not reported in governmental funds.
(18,116)
Depreciation expense on capital assets is reported in the Government-Wide Statement of Activities and Changes in
Net Assets, but it does not require the use of current financial resources. Therefore, depreciation is not reported as
an expenditure in governmental funds, This amount excludes the internal service funds depreciation of $2,043,223
(15,589,165)
Accrual of OPEB liability does not require the use of current financial resources and therefore not recorded as
expenditures on the governmental funds statements
(29,936)
Internal service funds are used by management to charge the costs of certain activities to individual funds, The net
(expense) of the internal service funds is reported with governmental activities.
88,640
Change in Net Assets of Governmental Activities
$
11,631,387
See accompanying Notes to Basic Financial Statements,
30
City of Dublin
Statement of Net Assets
Proprietary Funds
June 30,2006
Governmental
Activities
Internal Service
Funds
ASSETS
Current assets:
Cash and inveshnents $ 10,305,435
Accounts receivable
Total current assets 10,305,435
Capital Assets:
Land 6,842,037
Construction in progress 437,820
Buildings and improvements 50,804,818
Machinery and equipment 5,597,838
Less: accumulated depreciation (14,418,267)
Total capital assets 49,264,246
Total assets 59,569,681
LIABILITIES
Current liabilities:
Accounts payable 31,062
Total current liabilities 31,062
Noncurrent assets:
OPEB Obligation 518,366
Total noncurrent liabilities 518,366
Total liabilities 549,428
NET ASSETS
Invested in capital assets 49,264,246
Unrestricted 9,756,007
Total net assets $ 59,020,253
See accompanying Notes to Basic Financial Statements,
31
City of Dublin
Statement of Revenues, Expenses, and Changes in Net Assets
Proprietary Funds
For the year ended June 30,2006
Governmental
Activities
Internal Service
Funds
OPERATING REVENUES:
Charges for services $ 1,790,983
Other revenue 939,047
Total operating revenues 2,730,030
OPERATING EXPENSES:
Supplies and services 570,476
OPEB expenses 472,096
Depreciation 1,865,854
Total operating expenses 2,908,426
Operating income (loss) (178,396)
NONOPERATING REVENUES:
Interest income 267,036
Total nonoperating revenues 267,036
Change in net assets 88,640
NET ASSETS:
Beginning of year 58,931,613
End of year $ 59,020,253
See accompanying Notes to Basic Financial Statements.
32
City of Dublin
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2006
Governmental
Activities
Internal Service
Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipt from customers
Payments to suppliers
Other
$
1,793,060
(555,117)
939,047
2,176,990
Net cash provided (used) by operating activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets
Net cash provided (used) by capital and related financing activities
(1,127,250)
(1,127,250)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash provided (used) by investing activities
267,036
267,036
Interest received
Net increase (decrease) in cash and cash equivalents
1,316,776
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
$
8,988,659
10,305,435
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation
Net effect of changes in:
Accounts receivable
Accounts payable
OPEB Obligation
Net cash provided (used) by operating activities
$
(178,396)
1,865,854
2,077
(30,911)
518,366
2,176,990
$
See accompanying Notes to Basic Financial Statements,
33
City of Dublin
Statement of Fiduciary Net Assets
Fiduciary Fund
June 30,2006
Agency Fund
ASSETS
Cash and inveshnents $ 210,634
Restricted cash and investments 181,893
Total assets $ 392,527
LIABILITIES
Due to bondholders $ 392,527
Total liabilities $ 392,527
See accompanying Notes to Basic Financial Statements,
34
City of Dublin
Index to Notes to Basic Financial Statements
For the year ended June 30, 2006
Page
1. Summary of Significant Accounting Policies.......... .............. ...... .......................... .... ..... ....... .......................... 38
2. Cash, Cash Equivalents and Investments........................................................................................................ 46
3. Interfund Transactions............ .............. ............................................................................................................. 49
4. Capital Assets.................................................................................................................................................... ... 51
5. Special Assessment District Debt (Non-Obligatory) ...................................................................................... 52
6. Joint Powers Agreements................................................................................................................................... 52
7. Fund Equity.......................................................................................................................................................... 53
8. Risk Management.................................. .............................................................................................................. 54
9. Pension Plan......................................................................................................................................................... 55
10. Post Employment Health Care Plan... ....................... ................... ....... ............... .......... ............ ................. ...... 57
11. Cormnitment and Contingent Liabilities................................................................................. ........................ 61
12. Deficit Fund Balance.................................................. .............. ........................................................................... 64
13. Prior Period Adjustments................................................................................................................................... 64
35
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36
NOTES TO BASIC
FINANCIAL STATEMENTS
37
City of Dublin
Notes to Basic Financial Statements
For the year ended June 30, 2006
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Dublin, California, (City) have been prepared in conformity with
generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental
Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental
accounting and financial reporting principles. The more significant of the City's accounting policies are
described below.
A. Reporting Entity
The City 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 on February 1, 1982. The population at January 1,
2006, was 41,907, 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, 2006, the City's staff was comprised of 87 full-
time employees who were responsible for City-provided services. In addition, the City employs
approximately 75 seasonal recreation personnel. The City provides many traditional municipal services
through contracts with both public and private agencies. Approximately 127 contract employees
provide a variety of municipal services from City facilities.
The basic financial statements of the City include the financial activities of the City as well as the Dublin
Information, Ine. (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 Administrative
Service Director and is dependent on the City for its cash flows. The financial activity of DII is merged
(termed 'blended') with that of the City and is accounted for in a special revenue fund. 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 1933 Certificates of Participation.
B. Basis of Accounting and Measurement Foclls
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 expenditures, 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.
Government-Wide Financial Statements
The City's Government-Wide Financial Statements include a Statement of Net Assets and a Statement of
Activities and 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.
38
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Foclls, Continued
Government-Wide Financial Statements, Continued
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
programs 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 revenue
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 Revenues,
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 Housing Noise Mitigation Special Revenue Fund and 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.
All governmental funds are accounted for on a spending or "current financial resources" 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 property
taxes, sales taxes, transient occupancy taxes, interest revenues, charges for services, and courts fines
(when measurable). Licenses, use of property, and permit revenues are not susceptible to accrual
because they generally are not measurable until received in cash.
39
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30,2006
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Governmental Fund Financial Statements, Continued
Expenditures are generally recognized under the modified accrual basis of accounting when the related
fund liability is incurred, except for principal and interest on genera110ng term obligations which are
recognized when due. Because of their current financial resources focus, expenditures recognition for
governmental 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 Project Fund - is used to account for impact fees received from
developers of properties, which can only be used for the design, development, and construction of
new public facilities within the City.
The Fire Impact Fees Capital Projects Fund - is used to account for fees received from developers of
properties, which can only be used for the design, development, and construction of fire capital
expansion projects within the City.
The Housing and Noise Mitigation Special Re'Venue Fund - is used to account for in-lieu housing fees
and noise mitigation 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.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Assets, a Statement of Revenues,
Expenses, and Changes in Net Assets, and a Statement of Cash Flows. All proprietary funds are
accounted for using the accrual basis of accounting and the If economic resources" measurement focus.
Their revenues are recognized when they are earned, and their expenses are recognized when they are
incurred. All liabilities associated with their activity are also included on the Statement of Net Assets.
The City's proprietary funds are: Internal Service Funds which are used to account for the financing of
goods or services provided by 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.
40
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Proprietary Fund Financial Statements, Continued
Because the principal users of the internal services are the City's governmental activities, the financial
information of the internal services 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.
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.
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. Since these assets are being held for the benefit of a third party, these funds are not
incorporated into the government-wide statements.
The City's only fiduciary fund is an agency fund, which uses the accrual basis of accounting to account
for amounts held for debt service on the Dublin Boulevard Extension Special Assessment District. The
Agency fund is custodial in nature (assets equal liabilities ) and therefore does not involve measurement
of results of operations. The City is not responsible for payment of the bonds and acts only as an agent
to collect assessments, pay bondholders, and initiate foreclosure proceedings.
C. Capital Assets
Capital assets, which include buildings, machinery and equipment, and infrastructure assets (roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and park
improvements), are reported in the Governmental Activities columns of the Government-Wide
Financial Statements. Capital assets are defined by the City as assets with an initial, individual cost of
more than $2,500 for general capital assets and $100,000 for infrastructure capital assets. Such assets are
recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated
capital assets are valued at their estimated fair market value on the date donated.
Capital assets are depreciated over their estimated useful lives using the straight-line method. This
means the cost of the asset is divided by its expected usefu11ife 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 usefu11ife of these assets. The amount charged to depreciation expense each
year represents that year's pro rata share of the cost of capital assets.
41
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Capital Assets, Continued
Depreciation of capital assets is charged as an expense against operations each year and the total
amount of depreciation taken over the years, called accumulated depreciation, 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.
Building and improvements
Machinery and equipment
Infrastructure Streets
20-38 Years
3-15 Years
20-75 Years
D. Use of Restricted Resources
When both restricted and umestricted resources are available for use, it is the City's policy to use
restricted resources first, and then unrestricted resources as needed.
E. Cash and Investments
GASB Statement No. 31, "Accounting and Financial Reporting for Certain Investments and External Pools",
requires 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).
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.
In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No.
3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas:
· Interest Rate Risk
· Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and
investments, highly sensitive investments, credit quality at year-end and other disclosures.
42
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30,2006
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
F. Deferred Compensation Plan
City employees may defer a portion of their compensation under a City sponsored deferred
compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan,
participants are not taxed on the deferred portion of their compensation until it is distributed to them;
distributions may be made only at termination of employment, retirement, death, or in an emergency as
defined by the Plan. In accordance with GASB Statement No. 32, the funds have been placed in a trust
administered by ICMA Retirement Corporation and are not available to the City's general creditors.
Accordingly, the City does not report the assets in the financial statements.
G. 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 the collection of all delinquencies. The City receives
proportionate shares of prior year collections including interest and penalties. Secured and unsecured
property taxes are levied on January 1 of the preceding fiscal year. The property tax assessments are
formally due on November 1 and February 1, and become delinquent as of December 10 and Apri110,
respectively. Taxes become a lien on the property effective January 1 of the preceding year.
H. Post Employment Health Care Benefits
The City provides certain health care benefits for retirees, including those previously employed by the
Dougherty Regional Fire Authority (DRFA) 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 expenditures as premiums are paid.
1. Net Assets
Government-Wide Financial Statements
In the Government-Wide Financial Statements, net assets are classified in the following categories:
Invested in Capital Assets, Net of Related Debt - This amount consists of capital assets net of
accumulated depreciation and reduced by outstanding debt that attributed to the acquisition,
construction, or improvement of the assets.
Restricted Net Assets - This amount is restricted by external creditors, grantors, contributors, or laws
or regulations of other governments.
Unrestricted Net Assets - This amount is all net assets that do not meet the definition of "invested in
capital assets, net of related debt" or "restricted net assets."
43
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
1. Net Assets, Continued
Fund Financial Statements
Governmental fund balances represent the net current assets of each fund. Net current assets generally
represent a fund's cash and receivables, less its liabilities. Portions of a fund's balance may be reserved
or designated for future expenditures.
Reserves are restrictions placed by outside entities, such as other governments, which restrict the
expenditures of the reserved funds to the purpose intended by the entity which provided the funds.
The City cannot modify or remove these restrictions or reserves. In addition, the City Council may
reserve funds by resolution to set aside funds which are not available for current appropriation or
expenditure.
Designations are imposed by City Council to reflect future spending plans or concerns about the
availability of future resources. Designations may be modified, amended or removed by City Council
action.
The City had the following reserves and designations:
Resen.led 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.
Reserved 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.
Resen.led for long-term advances 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.
Reserved for recllcling programs is the portion of fund balance set aside for revenue received from the
Alameda County Waste Management Authority to be used solely for recycling.
Reserved for public safeht programs represents the net amounts available from grant and other sources
restricted to use on public safety programs.
Reserved for street maintenance and construction represents amounts available and restricted to use on
projects related to street maintenance and construction.
Reserved for health and welfare programs includes amounts restricted for use on programs including
housing, noise mitigation, and garbage services.
Reserved for capital impro-uement projects represents amounts collected from developers to be spent on
specific projects impacted by the development.
Designated for economic uncertainht is the portion of fund balance to be used in the event of economic
uncertainty .
Designated for other represents the amount of resources set aside to fund or partially fund the various
projects. The amount designated for authorized expenditures represents the amount not specifically
identified with an individual project.
44
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
J. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions. These estimates and assumptions affect the
reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In
addition, estimates affect the reported amount of expenses. Actual results could differ from these
estimates and assumptions.
K. New Pronouncements
In 2006, the City adopted new accounting standards in order to conform to the following Governmental
Accounting Standards Board Statement:
~ GASB Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for
Insurance Recoveries - The Statement establishes accounting and financial reporting standards for
impairment of capital assets. A capital asset is considered impaired when its service utility has
declined significantly and unexpectedly. This Statement also clarifies and establishes accounting
requirements for insurance recoveries.
~ Statement No. 44, Economic Condition Reporting: The Statistical Section (Amendment of NCGA
Statement 1) - The Statement establishes the objectives of the statistical section and the five
categories of information it contains; financial trends information, revenue capacity information,
debt capacity information, demographic and economic information, and operating information.
~ Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits
Other Than Pensions - The Statement improves the relevance and usefulness of financial reporting
by requiring systematic, accrual-basis measurement and recognition of OPEB cost over a period
that approximates employees' years of service and providing information about actuarial
accrued liabilities associated with OPEB and whether and to what extent progress is being made
in funding the plan.
~ GASB Statement No. 46, Net Assets Restricted by Enabling Legislation - The Statement addresses
selected issues and amends GASB Statement No. 34, Basic Financial Statements and Management's
Discussion and Analysis for State and Local Governments. The Statement enhances the usefulness
and comparability of net asset information and clarifies the meaning of legal enforceability. The
Statement also specified accounting and financial reporting requirements for restricted net
assets.
~ GASB Statement No. 47, Accounting for Termination Benefits - The Statement provides accounting
guidance for state and local governmental employers regarding benefits (such as early-
retirement incentives and severance benefits) provided to employees that are terminated. The
Statement requires recognition of the cost of involuntary termination benefits in the period in
which a government becomes obligated to provide benefits to terminated employees.
45
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
2. CASH, CASH EQUIVALENTS AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized investments of
all funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is allocated
to the funds based on average monthly cash and investment balances in these funds.
A. Cash Deposits
The carrying amount of the City's cash deposits was $ 307,092 at June 30, 2006. Bank balances before
reconciling items were $926,642 at that date, the total amount of which was insured or collateralized with
securities held by the pledging financial institutions in the City's name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the
City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this
manner shall have the effect of perfecting a security interest in such collateral superior to those of a general
creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California law
also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value
of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits,
which are fully insured up to $100,000 per depositor by the Federal Deposit Insurance Corporation. The
City, however, has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be
held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and
investments is allocated on an accounting period basis to the various funds based on the period-end cash
and investment balances. Interest income from cash and investments with fiscal agents is credited directly
to the related fund.
B. Investments
Under the provisions of the City's investment policy, and in accordance with Section 53601 of the California
Government Code, the City is authorized to invest or deposit in the following investments:
. Bankers' Acceptances
. Commercial paper
· Local Agency Investment Fund
. Negotiable certificates of deposit
· Repurchase agreements
. Mutual Funds
. Securities of the Federal government or its agencies
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for
External Investments Pools, investments should be stated at fair value. The City reported its investments at
fair value. For the year ended June 30, 2006, the unrealized loss on investments amounted to $1,198,081.
Interest and investment earnings before recognition of unrealized loss was $4,334,055 as of June 30, 2006.
46
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
2. CASH, CASH EQUIV ALENTS AND INVESTMENTS, Continued
C. Summary of Cash and Investments
The following is a summary of pooled cash and investments, including restricted cash and investments
at June 30, 2006:
Government-Wide
Statement of Fiduciary
Net Assets Funds
Governmental Statement of
Activities Net Assets Total
Cash and investments $ 109,886,691 $ 210,634 $ 110,097,325
Restricted cash and investments 181,893 181,893
Total $ 109,886,691 $ 392,527 $ 110,279,218
D. Risks Disclosures
Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest
rates, the City's investment policy provides that final maturities of securities cannot exceed five years.
Specific maturities of investments depend on liquidity needs. At June 30, 2006, the City's pooled cash
and investments had the following maturities:
Maturity
Percentage of
Investment
Less than one year
One to three years
Three to five years
62%
31%
7%
The average life of the federal security portfolio was 1.4 years.
47
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
2. CASH, CASH EQUIV ALENTS AND INVESTMENTS, Continued
D. Risks Disclosures, Continued
Deposits and investments held by the City at June 30, 2006 are summarized below:
Inveshnent Maturities (in years)
Inveshnent Type Fair Value 1 year or less 1-5 years
City Treasury:
Deposits:
Cash on hand $ 1,725 $ 1,725 $
Deposits with banks 307,092 307,092
Total deposits 308,817 308,817
lnveshnents:
Federal Home Loan Bank 56,092,116 31,196,820 24,895,296
Federal National Mortgage Association 11,179,311 6,419,911 4,759,400
Federal Home Loan Mortgage Corporation 14,361,116 9,587,916 4,773,200
Federal Farm Credit Bureau 418,764 418,764
Mutual Funds 21,229,304 21,229,304
California Local Agency lnveshnent Fund 6,507,897 6,507,897
Total inveshnents 109,788,508 75,360,612 34,427,896
Total City Treasury 110,097,325 75,669,429 34,427,896
Cash with fiscal agents 181,893 181,893
Total City and fiscal agent cash and inveshnents $ 110,279,218 $ 75,669,429 $ 34,609,789
At June 30, 2006, the City had the following investments credit risk ratings:
The Credit Risk Ratings listed below meet or exceed the acceptable credit risk ratings established in the
City's investment policy.
Credit Quality Ratings
Moody's S&P
Investments:
Federal Home Loan Bank
Federal Home Loan Mortgage Corporation
Federal National Mortgage Association
Federal Farm Credit Bureau
Mutual Funds
California Local Agency lnveshnent Fund
Aaa AAA
Aaa AAA
Aaa AAA
Aaa AAA
Aaa AAA
Not Rated
Cash with fiscal agents
Not Rated
48
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
2. CASH, CASH EQUIV ALENTS AND INVESTMENTS, Continued
E. Investments in Local Agency Investment Fund
The City valued its investments in LAIF as of June 30, 2006, at amortized cost which approximates the
fair value. If the fair value was to be calculated it would be calculated by multiplying the account
balance with LAIF times a fair value factor of 99.8186%, which is determined by LAIF. This fair value
factor was determined by dividing all LAIF participants' total aggregate amortized cost by total
aggregate fair value.
The City's investments with Local Agency Investment Funds (LAIF) at June 30, 2006, included a portion of
the pooled funds invested in Structured Notes and Asset-Backed Securities. These investments included
the following:
· Structured Notes are debt securities (other than asset-backed securities) whose cash flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more
indices and/ or that have embedded forwards or options.
· Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers
to receive a share of the cash flows from a pool of assets such as principal and interest repayments
from a pool of mortgages (such as CMO) or credit card receivables.
As of June 30, 2006, the City had $6,507,897 invested in LAIF, which had invested 2.567% of the pool
investment funds in Structured Notes and Asset-Backed Securities.
3. INTERFUND TRANSACTIONS
Due To/From
During the normal course of business the General Fund may advance to other funds to cover deficit cash
balances caused by expenditures for reimbursement type grants. During the fiscal year advances were
made to the Community Development Block Grant Fund, Transportation Development Act Fund, FEMA
Disaster Assistance Fund, and the Garbage Service Fund in the amounts of $14,866, $45,144, $15,747 and
$1,416 respectively. When the reimbursement is received, normally shortly after year end, the interfund
liability is liquidated. The following interfund balances existed at June 30, 2006:
Due from other funds
Due to other funds
Major Fund
General Fund
Non Major Funds
Total
$
$
77,173
77,173
49
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
3. INTERFUND TRANSACTIONS, Continued
Advances Tolfrom
During the 2004-2005 and 2005-2006 Fiscal Years the General Fund advanced funds to the Fire Impact Fees
Capital Projects fund to aid in the financing of fire station construction projects. The advance will be repaid
through future revenues to the Fire Impact Fees Fund. Interest accrues, on the advance, at a rate equal to
the City's return on its investment portfolio. The following interfund balances existed at June 30, 2006:
Advances to other funds
Advances from other funds
Major Fund
General Fund
Major Fund:
Fire Impact Fees
Total
$
$
1,893,598
1,893,598
Transfers In/Out
Interfund transfers for the year ended June 30, 2006 were as follows:
Transfers in
Transfers out:
Major Fund
Housing and
General Fund Noise Mitigation
Fund
Total
Non Major Funds
Total
$
$
15,189 $
15,189 $
6,600 $
6,600 $
21,789
21,789
Transfers In to the General Fund in the amount of $15,189 are reimbursements to the General Fund from the
Vehicle Abatement Fund for vehicle abatement services. Transfers In to the Housing and Noise Mitigation
Fund in the amount of $6,600 are reimbursement to Housing and Noise Mitigation Fund from the CDBG
fund for administrative costs.
50
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
4. CAPITAL ASSETS
A. Government-Wide Financial Statements
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.
The following is a summary of capital assets for governmental activities:
Balance Balance
July 1 June 30
2005 Addition Deletion Transfers 2006
Capital assets, not being depreciated:
Land $ 144,327,102 $ 5,421,800 $ $ $ 149,748,902
Streets right of way 24,587,573 3,769,336 1,017,648 29,374,557
Construction in progress 15,205,552 2,331,864 (9,991,896) 7,545,520
Total capital assets, not being depreciated 184,120,227 11,523,000 (8,974,248) 186,668,979
Capital assets, being depreciated:
Infrastructure 276,637,482 9,747,586 1,973,795 288,358,863
Buildings and improvements 50,044,589 7,000,453 57,045,042
Equipment 6,115,049 405,389 (278,850) 6,241,588
Total capital assets, being depreciated 332,797,120 10,152,975 (278,850) 8,974,248 351,645,493
Less accumulated depreciation for:
Infrastructure (119,088,388) (15,304,938) (134,393,326)
Buildings and improvements (10,293,801) (1,637,543) (11,931,344)
Equipment (3,867,971) (512,538) 278,850 (4,101,659)
Total accumulated depreciation (133,250,160) (17,455,019) 278,850 (150,426,329)
Total capital assets being depreciated, net 199,546,960 (7,302,044) 8,974,248 201,219,164
Governmental activities capital assets, net $ 383,667,187 $ 4,220,956 $ $ $ 387,888,143
Depreciation expense was charged to functions/programs of the primary government as follows:
Total depreciation expense - governmental activities
$ 1,866,310
11,432,282
4,156,427
$ 17,455,019
General government
Highways and streets
Culture and leisure
B. Fund Financial Statements
The fund governmental financial statements do not present general government capital assets but are
shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide
Statement of Net Assets.
51
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
5. SPECIAL ASSESSMENT CITY DEBT (NON-OBLIGATORY)
The Dublin Boulevard Extension Special Assessment District, formed within City limits, had outstanding
debt with a balance of $1,201,000 at June 30,2006. Proceeds of the debt, which was issued in 1991 were used
to finance improvements within City 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 City. Activities of the
City are reported in the Dublin Boulevard Extension Assessment District Agency Fund.
6. JOINT POWERS AGREEMENTS
The City participates in joint ventures with other municipal entities through Joint Powers Agreements
(IP As) established under the Joint Exercise of Powers Act of the State of California.
Toint 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. The City's share for the 2005-2006 fiscal
year based upon the statistics of live animals handled in the shelter in calendar year 2006 was $39,189
representing 12.35 percent of the debt service requirements. In addition, $186,664 was paid for the City's
share of operating expenses and field service expenses.
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 noteissued.
52
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
7. FUND EQUITY
In the Fund Financial Statements, reserves and designations segregate portions of fund balance that are
either not available or have been earmarked for specific purposes. The various reserves and designations
are established by actions of the City Council and Management and can be increased, reduced or eliminated
by similar actions.
In Governmental Funds, fund reservations and designations are presented as a component of fund balance
as follows:
Traffic Public Fire Housing and
General Impact Facilities Impact Noise Non-Major
Fund Fees Fees Fees "Mitigation Funds
Reserved:
Prepaid expenditures $ 2,080 $ $ $ $ $
Cemetery endowment 60,000
Long-term advances 1,893,598
Long-term receivables
Recycling programs 710,791
Public safety programs 467,337
Street maintenance
and construction 2,933,441
Health and welfare programs 11,558
Pole painting
Public Art 125,000
Capital improvement projects 19,557,799 11,416,479
Total reserved 2,080,678 19,557,799 11,416,479 4,123,127
Unreserved, designated:
Economic uncertainty 2,970,720
Downtown open space 1,378,235
Senior center 172,873
OF carryovers 1,518,711
Capital improvement 2,635,621
Culvert Maintenance 280,000
Affordable housing 1,000,000 13,OO,(x)2
Designated for authorized
expenditures 38,860,039
Total unreserved designated 48,816,199 13,OO,(x)2
Unreserved, undesignated (1,893,598)
Total fund equity $ 50,896,877 $ 19,557,799 $ 11,416,479 $ (1,893,598) $ 13,043,(x)2 $ 4,123,127
53
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30,2006
8. 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 $500,000,000. 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 $100,000 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, 2006, the City contributed $231,138 for current year
coverage.
The ABAG PLAN is governed by a board consisting of representatives from member municipalities.
The board controls the operations of the 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 the ABAG PLAN for liability coverage are based on a formula which
considers the ratio of the City's payroll to the total payrolls of all entities participating in the same layer
of each program, in each program year's loss history and population. Actual surpluses or losses are
shared according to a formula developed from overall loss costs and spread to member entities on a
percentage basis after a retrospective rating.
There have been no significant reductions in any of the City's areas of insurance coverage and no
settlement amounts have exceeded coverage.
Audited financial information for the ABAG PLAN can be obtained from ABAG PLAN, P.O. Box 2050,
Oakland, California 94604-2050.
B. Workers Compensation Coverage
The City participates in the Cities Group, created by a joint powers agreement to provide workers
compensation coverage paid from the pooled contributions of its membership with no deductible to the
City. Any claim in excess of $1 million is covered up to $10 million through a separate reinsurance
policy purchased by the Cities Group. The Group acts as an administrator, claim adjuster and provides
other risk management services as provided by State law. Each member of the Group pays a premium
commensurate with the level of coverage requested and shares surpluses and deficits proportionately to
its participation in the Group. During the year ended June 30,2006, the City paid the Group $96,159 in
premiums. At June 30, 2006, the Group reported that the City's interest amounted to $201,441.
Financial Statements may be obtained from the Cities Group, PO Box 111, Burlingame, CA 94011-0111
54
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
8. RISK MANAGEMENT, Continued
C. Liability for Uninsured Claims
The GASB requires municipalities to record their liability for uninsured claims and reflect the current
portion of this liability as 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 and the Cities Group plans. GASB Statement No. 10, "Financial Reporting
for Risk Financing and Related Insurance Issues" require that this amount be separately identified and
recorded as a liability.
The City's liability for uninsured claims, limited to general liability and workers compensation claims as
discussed above, includes a provision for incurred but not reported losses. This amount was estimated
based on claims experience. The claim liability for the current and prior years are as follows:
June 30, 2006 June 30, 2005 June 30, 2004
Beginning balance $ 238,441 $ 137,210 $ 137,210
Provision for claims 197,084 207,019 87,871
Claims paid (193,143) (105,788) (87,871)
Ending balance $ 242,382 $ 238,441 $ 137,210
9. PENSION PLAN
A. PERS
Plan Description - The City'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 (Ca1PERS), a cost sharing multiple-employer plan administered by
Ca1PERS, 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 selects
optional benefit provisions from the benefit menu by contract with Ca1PERS and adopts those benefits
through local ordinance or resolution. Ca1PERS issues a separate comprehensive annual financial
report. Copies of the Ca1PERS's annual financial report may be obtained from the CalPERS Executive
Office, 400 P Street Sacramento, California 95814.
Funding PoliClI - Active plan members in the Miscellaneous Plan are required to contribute 8 percent of
their annual covered salary, 7 percent of which the City pays on behalf of the employees in the amount
of $482,651. The City 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 Cal PERS Board of Administration. The required employer contribution rate for fiscal year 2005-
2006 was 11.909% for miscellaneous employees. (The City 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 CaIPERS.
55
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
9. PENSION PLAN, Continued
A. PERS, Continued
Annual Pension Cost - For fiscal year 2005-2006, the City's annual pension cost was $1,058,213 and was
equal to the City's required and actual contributions. The required contribution for fiscal year 2005-
2006 was determined as part of the June 30, 2003, actuarial valuation using the entry age normal
actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions
included (a) 7.75 percent investment rate of return (net of administrative expenses); (b) projected salary
increases that vary by duration of service ranging from 3.25 percent to 14.45 percent for miscellaneous
members; and (c) 0.25 percent cost-of-living adjustment. Both (a) and (b) include an inflation
component of 3.0 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 period 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 average remaining amortization period at June 30, 2003 was 17
years for miscellaneous employees for prior and current service unfunded liabilities.
Three Year Trend Information for the Miscellaneous Plan
Annual Percentage
Pension Cost of APC Net Pension
Fiscal Year (APe) Contributed Obligation
6/30/2004 $ 350,269 100% $
6/30/2005 569,893 100%
6/30/2006 1,058,213 100%
B. Social Security/Public Agency Retirement Systems (PARS)
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 alternate 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.
The City entered into an agreement with the PARS to provide an alternative retirement system for the
part-time employees. The PARS plan was effective December 25, 2005, and replaced Social Security.
56
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
10. POSTEMPLOYMENT HEAL THCARE PLAN
A. City of Dublin Retiree Health Plan
Plan Description. City of Dublin (City) Retiree Health Plan is a single-employer defined benefit healthcare
plan administered by the California Public Employees Retirement System (CaIPERS). The plan provides
medical insurance benefits to eligible retirees and their eligible dependents. In accordance with Public
Employee Retirement Law (Article 2), the Public Employees Retirement System Board of Administration has
the responsibility to approve health benefit plans and may contract with carriers offering health benefit
plans. The Board of Administration is responsible for adopting all rules and regulations, including the scope
and content of basic health plans. The California Government Code also defines certain rules for contract
agencies, such as the City of Dublin, to purchase health insurance benefits.
Funding PoliCl). There is no requirement imposed by CalPERS, to contribute any amount beyond the pay-as-
you-go contributions. The cost of monthly insurance premiums may be shared between the retiree and the
City. The cost sharing varies depending on: date of hire (a vesting schedule is in place for employees hired
after April 1, 2004); the dependent status; and plan selected. A minimum employer monthly contribution
requirement is established and may be amended by the CalPERS Board of Administration and applicable
laws. Within the parameters of the law, individual contracting agencies, such as the City, are allowed to
establish and amend the level of contributions made by the employer towards the monthly cost of the plans.
Changes to the employer contribution rate towards retiree benefits are recorded in a resolution adopted by
the City Council.
The City has established a policy to make contributions to an Internal Service Fund, for the purpose of
funding its calculated obligations over a period of time. The amount necessary to prefund benefits is based
on projections from the most recent actuarial study completed in accordance with GASB Statement 45,
Accounting and Financial Reporting for Postemployrnent Benefits Other than Pensions. For fiscal year 2006, the
City made a total of $613,591 in contributions, of which $87,572 represented current contributions and
$526,019 represented amounts added to the City's Retiree Health Care Internal Service Fund to set aside
funds for future benefits. Retirees contributed approximately $1,401 or approximately 1.6% of the total
premiums. The retiree contributions reflect coverage selected that exceeded the monthly contribution
established by the City.
Annual OPEB Cost and Net OPEB Obligation. The City Retiree Health Plan annual other postemployment
benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer
(ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The
ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each
year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty
years. The following table shows the components of the City of Dublin annual OPEB costs for the year, the
amount actually contributed to the plan, and changes in the City's net OPEB obligation to the City Retiree
Health Plan:
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contributions made
Increase (decrease) in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation - end of year
$
605,938
605,938
(87,572)
518,366
$
518,366
57
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
10. POSTEMPLOYMENT HEALTHCARE PLAN, Continued
A. City of Dublin Retiree Health Plan, Continued
The City Retiree Health annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
and the net OPEB obligation for 2006 are as follows:.
Fiscal Percentage of Net
Year Annual Annual OPEB OPEB
Ended OPEB Cost Cost Contributed Obligation
6/30/2006 $ 605,958 14.45% $ 518,366
Funded Status and Funding Progress. As of June 30, 2004, the most recent actuarial valuation date, the plan
was 0% funded. The actuarial accrued liability for benefits was $4,973,780.
In accordance with GASB Statement 45 as of June 30, 2006, the City had not yet selected a trust
arrangement to retain the assets for the Retiree Health Obligation. Contributions for this purpose are
being recorded in an Internal Service Fund for Employee Benefits, with the intent that they will be
transferred to a trust once one is selected. As of June 30, 2006, the Internal Service Fund held a total of
$4,983,128 for this purpose.
The covered payroll (annual payroll of active employees covered by the plan) was 6,320,280. The ratio
of VAAL to the covered payroll was 8.2 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the hea1thcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates
are made about the future. The Schedule of Funding Progress, presented as Required Supplementary
Information following the notes to the financial statements, presents multiyear trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liabilities for benefits. Since this is the first year of including this information in the financial
report, the data presented is limited.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and the plan members) and include the
types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit
costs between the employer and plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effects of short-term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
58
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
10. POSTEMPLOYMENT HEALTHCARE PLAN, Continued
A. City of Dublin Retiree Health Plan, Continued
In the June 30, 2004 actuarial valuation, the actuarial cost method used was: Entry Age Normal, level
dollar. Entry age is based on current age minus years of service. The actuarial assumptions included a
6.25 percent investment rate of return (net of administrative expenses), calculated based on the funded
level of the plan at the valuation date. An annual hea1thcare cost trend rate of 11 percent initially,
reduced over a six year period to an ultimate rate of 5 percent. The actuarial value of assets was
determined using the market value of investments. The VAAL is being amortized as a level dollar
closed 30 year basis. The remaining amortization period at June 30,2004, was thirty years.
Dougherty Regional Fire Authority Background. In 1988, the cities of Dublin and San Ramon formed
Dougherty Regional Fire Authority (DRF A), a joint powers agency (JP A). The JP A provided fire
services to all of Dublin and the southern portion of San Ramon. In 1997, the two cities decided to
change how Fire Services would be provided in each City. As a result JP A personnel were absorbed by
the two new service providers pursuant to a mutual agreement. The JP A has remained intact to
conclude the financial affairs of the entity. This includes residual retiree obligations and workers
compensation liabilities. Dublin's share of all DRF A close-out expenses, including retiree medical
benefits, is 57.51 % of the actual costs, with the City of San Ramon paying 42.49% of the costs. The two
cities have entered into a binding agreement to share these expenses on this basis. The City of Dublin is
presenting information only for its contractual share of the obligations.
B. Dougherty Regional Fire Authority Health Plan
Plan Description. City of Dublin share of DRF A Retiree Health Plan, is a single-employer defined benefit
hea1thcare plan administered by the California Public Employees Retirement System (CaIPERS). The
Plan provides medical insurance benefits to eligible retirees and their eligible dependents. In accordance
with Public Employee Retirement Law (Article 2), the Public Employees Retirement System Board of
Administration has the responsibility to approve health benefit plans and may contract with carriers
offering health benefit plans. The Board of Administration is responsible for adopting all rules and
regulations, including the scope and content of basic health plans. The California Government Code
also defines certain rules for contract agencies, such as DRF A, to purchase health insurance benefits.
Funding Policy. There is no requirement imposed by CalPERS, to contribute any amount beyond the
pay-as-you-go contributions. The cost of monthly insurance premiums may be shared between the
retiree and DRF A. The cost sharing varies depending on: the bargaining unit; dependent status; and
plan selected. A minimum employer monthly contribution requirement is established and may be
amended by the Ca1PERS Board of Administration and applicable laws. Within the parameters of the
law, individual contracting agencies such as the DRF A, are allowed to establish and amend the level of
contributions made by the employer towards the monthly cost of the plans. Changes to the employer
contribution rate towards retiree benefits are recorded in a resolution adopted by the DRF A
Management Committee.
For fiscal year 2006, the City contributed $46,270 to the plan, all of which was for current premiums. No
other contributions were made.
59
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
10. POSTEMPLOYEMENT HEALTHCARE PLAN, Continued
B. Dougherty Regional Fire Authority Health Plan, Continued
Annual OPEB Cost and Net OPEB Obligation. The DRFA Retiree Health Plan (City of Dublin Share)
annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement 45, Accounting and Financial Reporting for Postemployment Benefits Other
than Pensions. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover costs. This plan is in a unique status since there are no active members and no "normal" cost
component. Therefore, 100% of the calculated ARC relates to the amortization of unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the
components of the City of Dublin share of DRF A annual OPEB cost for the year, the amount actually
contributed to the plan, and changes in the Dublin Share of DRF A net OPEB and the City of Dublin
share of the obligation to DRF A Retiree Health Plan:
Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
$
76,206
Annual OPEB cost (expense)
Contributions made
76,206
(46,270)
29,936
Increase in net OPEB obligation
Net OPEB obligation - beginning of year
Net OPEB obligation-end of year
$
29,936
The DRFA Retiree Health (City of Dublin Share) annual OPEB cost, the percentage of annual OPEB cost
contributed to the plan, and the net OPEB obligation for 2006 were as follows:
Fiscal Percentage of Net
Year Annual Annual OPEB OPEB
Ended OPEB Cost Cost Contributed Obligation
6/30/2006 $ 76,206 60.72% $ 29,936
Funded Status and Funding Progress. As of June 30, 2004, the most recent actuarial valuation date, the plan
was not funded. Therefore both the actuarial accrued liability for benefits, and the unfunded actuarial
accrued liability (VAAL) equaled $1,050,421. Since there are no active employees, it is not possible to
calculate a comparison of the liability to the payrolL
60
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
10. POSTEMPLOYEMENT HEALTHCARE PLAN, Continued
B. Dougherty Regional Fire Authority Health Plan, Continued
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about, mortality, and the healthcare cost trend. Amounts determined regarding the funded
status of the plan and the annual required contributions of the employer are subject to continual
revision as actual results are compared with past expectations and new estimates are made about the
future. The Schedule of Funding Progress, presented as Required Supplementary Information following
the notes to the financial statements, presents multiyear trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for
benefits. Since this is the first year of including this information in the financial report, the data
presented is limited.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on
the substantive plan (the plan as understood by the employer and the plan members) and include the
types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit
costs between the employer and plan members to that point. The actuarial methods and assumptions
used include techniques that are designed to reduce the effects of short-term volatility in actuarial
accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the
calculations.
In the June 30, 2004 actuarial valuation, the actuarial cost method used was: Entry Age Normal, level
dollar. Entry age is based on current age minus years of service. The actuarial assumptions included a
6.25 percent investment rate of return (net of administrative expenses), calculated based on the funded
level of the plan at the valuation date. An annual hea1thcare cost trend rate of 11 percent initially,
reduced over a six year period to an ultimate rate of 5 percent. The actuarial value of assets was
determined using the market value of investments. The VAAL is being amortized as a level dollar
closed 30 year basis. The remaining amortization period at June 30, 2004, was thirty years.
11. COMMITMENT AND CONTINGENT LIABILITIES
A. Grant Programs
The City participates in several Federal and State grant programs. No cost allowances 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.
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.
61
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
11. COMMITMENT AND CONTINGENT LIABILITIES, Continued
C. Reimbursements to the City
On January 23, 1996, the City adopted a fee for the purpose of reimbursing the City of Pleasanton for the
costs of making improvements to the interchanges on Interstate 580 at Hacienda Drive and Tassajara
Road/Santa Rita Road that benefit development in both Pleasanton and future development in Eastern
Dublin. The Cities entered into an agreement on November 3, 1998, to allow for an automatic annual
escalator factor in the amount of the fee assessed to developers based upon the LAIF interest rate and to
repay the City of P1easanton. The amount of the contingent liability outstanding at June 30, 2006, was
$5,039,342, which is net of the $273,878 in payments made by the City to reduce this contingent liability
during the year. The accounting for the amount due is not recorded as indebtedness since future
payments are contingent upon the future collection of development fees assessed for reimbursement of
these improvements.
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, 2006, is $2,370,660, which includes $126,084 of interest for the current year and $805,193 of
payments on the loan. 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. BART Agreement
In 1990, the City and Bay Area Rapid Transit City (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.
62
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
11. COMMITMENT AND CONTINGENT LIABILITIES, Continued
D. BART Agreement, Continued
Long Term Ad'Uance
BART's long term advance to the City, including accrued interest as of June 30, 2006 is $2,239,049, which
has no specific due date. Under the City's agreement with BART, interest on the advance accrues at a
rate based on BART's average rate of return on its investments. During the year ended June 30, 2006
unpaid interest incurred was added to the balance owed in the amount of $51,762. 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 the 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 County Surplus Property Authority
The City entered into an agreement with the Alameda County Surplus Property Authority for the
repayment of the City's Short Term BART Advance by the Authority. Under the terms of the
agreement, interest on the advance shall accrue at a rate based on the Alameda County Treasurers
return on investments. As of June 30, 2006, the advance is $2,340,384, which includes accrued interest of
$73,558 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 De'Uelopment Agreements
The City entered into several agreements with various developers and merchant builders who are
developing numerous residential and commercial projects throughout the City. The City agreed to
grant the developers impact fee credits since the developers constructed certain improvements beyond
what was needed to serve their specific projects. The value of credits does not increase for inflation nor
do they accrue interest. Any unused credits may be used by the developers on other projects located
within the Traffic Impact Fee area. The value of the credits as of June 30, 2006 was $49,678,227. For the
current year, additions to the credits amounted to $5,582,918 and credits used amounted to $6,890,289.
The accounting for the amounts due are not recorded as indebtedness since the payments (use of
credits) are contingent upon the collection of development fees from building growth that has not yet
occurred.
63
City of Dublin
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2006
12. DEFICIT FUND BALANCE
The Fire Impact Fees Fund ended the fiscal year with a $1,893,598 deficit fund balance. The General Fund
has advanced money to this fund to cover current cash flow needs. Repayment of the advance is expected
to come from future revenues to this fund.
13. PRIOR PERIOD ADJUSTMENTS
A. Government-Wide Financial Statements:
Prior period adjustment was recorded by the City to reflect proper recording of sales tax received from
the state not captured in prior years.
Total government-wide activities
Net Assets,
as Previously Prior Period Net Assets,
Reported Adjustments as Restated
$ 481,132,095 $ 1,371,909 $ 482,504,004
$ 481,132,095 $ 1,371,909 $ 482,504,004
Government-Wide Activities:
Net Assets
B. Fund Financial Statements:
The City recorded the following reclassification to City funds to more accurately reflect certain
transactions in the prior years:
General Fund - Prior period adjustment was recorded by the City to reflect proper recording of sales tax
received from the state not captured in prior years and to remove long-term compensated absences
liabilities incorrectly recorded in prior years. Compensated absences liabilities were correctly reported
in the Government-wide Financial Statements. As a result, there was no effect on the Government-wide
financial statements.
Fund Balance
as Previously
Reported
Prior Period Adjustments
Compensated
Sales Taxes Absences
Fund Balance,
as Restated
Major Fund:
General Fund
Total government-wide activities
$ 45,789,966 $ 1,371,909 $
$ 45,789,966 $ 1,371,909 $
604,454 $ 47,766,329
604,454 $ 47,766,329
64
REQUIRED
SUPPLEMENTARY INFORMATION
65
City of Dublin
Required Supplementary Information
For the year ended June 30, 2006
1. BUDGETS AND BUDGETARY ACCOUNTING
The City follows these procedures in establishing the budgetary data reflected in the basic financial
statements:
. Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the
fiscal year commencing the following July 1. The operating budget includes proposed expenditures
and the means of financing them.
. The public is given an opportunity to comment on the budget at a noticed City Council meeting.
Prior to July 1, the budget is legally enacted through passage of a resolution.
. 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 be allowed to transfer funds
from the contingent reserve to operating departments salary and benefits 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 increase in contract or labor
rates. Expenditures may not exceed budgeted appropriations at the departmental level without City
Council approval.
. Formal budgetary integration is employed as a management control device during the year for the
general fund, special revenue funds and capital projects funds.
. Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent
with generally accepted accounting principles in the United States.
. All unexpended appropriations lapse at the end of the fiscal year.
66
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Required Supplementary Information, Continued
For the year ended June 30, 2006
Variance with
Final Budget -
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes $ 15,716,461 $ 15,716,461 $ 16,775,906 $ 1,059,445
Sales tax 14,984,884 14,984,884 14,363,863 (621,021)
Other taxes 3,052,400 3,052,400 3,207,372 154,972
Intergovernmental 528,208 528,208 1,020,574 492,366
Licenses and permits 2,380,013 2,380,013 3,142,223 762,210
Charges for service 5,256,561 5,277,561 5,774,669 497,108
Interest 1,757,524 1,757,524 1,447,812 (309,712)
Use of property 141,201 141,201 123,154 (18,047)
Fines and forfeitures 132,200 132,200 149,467 17,267
Other revenue 1,713,573 1,942,464 400,245 (1,542,219)
Total revenues 45,663,025 45,912,916 46,405,285 492,369
EXPENDITURES:
Current:
General government 5,526,335 5,539,008 4,907,956 631,052
Public safety 20,615,237 20,656,885 19,746,838 910,047
Highways and streets 1,821,445 1,845,894 1,779,004 66,890
Health and welfare 15,000 34,315 23,829 10,486
Culture and leisure 6,337,038 6,402,452 5,948,563 453,889
Community development 8,433,682 8,635,759 7,798,412 837,347
Capital outlay:
General 1,319,558 1,383,213 606,779 776,434
Community improvement 522,329 884,277 780,955 103,322
Parks 1,498,597 1,680,115 1,037,008 643,107
Streets 1,185,241 1,488,019 660,582 827,437
Total expenditures 47,274,462 48,549,937 43,289,926 5,260,011
REVENUES OVER (UNDER) EXPENDITURES (1,611,437) (2,637,021) 3,115,359 5,752,380
OTHER FINANCING SOURCES (USES):
Transfer in 15,189 15,189
Transfer out
Total other financing sources (uses) 15,189 15,189
NET CHANGE IN FUND BALANCES $ (1,611,437) $ (2,621,832) 3,130,548 $ 5,752,380
FUND BALANCES:
Beginning of year, as restated 47,766,329
End of year $ 50,896,877
67
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68
City of Dublin
Required Supplementary Information, Continued
For the year ended June 30, 2006
Schedule of Funding in Progress
Miscellaneous Plan of the California Public Emplollee Retirement System
Entry Age
Actuarial Actuarial Actuarial
Valuation Asset Accrued
Date* Value Liability
Unfunded
(Over funded)
Unfunded Actuarial
(Overfunded) Liability as
Actuarial Percentage of
Accrued Funded Covered
Liability Ratio Covered Payroll
(B-A) (A/B) Payroll (CjE)
$ 45,699 99.4% $ 4,760,484 1.0%
59,359,278 88.5% 120,692,360 49.2%
100,556,115 85.2% 160,107,449 62.8%
6/30/2002 $ 7,261,051 $ 7,306,750
CalPERS Risk Pool Information (See note below)
6/30/2003 456,062,164 515,421,442
6/30/2004 580,960,891 681,517,006
As of the actuarial valuation date of June 30, 2003, the City's miscellaneous plan became part of a CalPERS
Risk Pool for employers with less than 100 active plan members. The schedule of funding progress for
miscellaneous employees presented above for fiscal years 2003 and 2005 are for the whole pool and not that
of the City individually. For Fiscal Year 2005-2006 CalPERS changed the City's from a pool with benefits of
2% at 55 to a pool with benefits of 2.7% at 55 due to the City's enhanced benefit plan. As a result, the 2003
amounts have been restated to reflect this change.
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70
SUPPLEMENTARY INFORMATION
71
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72
GENERAL FUND
The General Fund is used to account for all financial resources except those required to be accounted for in
another fund.
73
City of Dublin
Schedule of Budget Versus Actual Revenues by Sources
General Fund
For the fiscal year ended June 30, 2006
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Property Taxes:
Current year secured $ 11,276,000 $ 11,276,000 $ 11,668,198 $ 392,198
Current year unsecured 831,000 831,000 906,835 75,835
Prior year secured 199,000 199,000 240,662 41,662
Prior year unsecured 46,000 46,000 4,495 (41,505)
Supplemental property tax 789,000 789,000 1,167,891 378,891
Pilot tax 55,661 55,661 54,640 (1,021)
In lieu property tax 2,398,000 2,398,000 2,599,432 201,432
Property tax penalties 121,800 121,800 133,753 11,953
Sub-total 15,716,461 15,716,461 16,775,906 1,059,445
Taxes Other Than Property:
Sales & use tax 14,984,884 14,984,884 14,363,863 (621,021)
Real property transfer tax 745,600 745,600 690,404 (55,196)
Hotel transient occupancy tax 680,500 680,500 727,612 47,112
Franchise taxes 1,626,300 1,626,300 1,789,356 163,056
Sub-total 18,037,284 18,037,284 17,571,235 (466,049)
License and Permits:
Building permits 2,146,363 2,146,363 2,910,233 763,870
Animal licenses 6,000 6,000 4,613 (1,387)
Encroachment permits 23,000 23,000 17,799 (5,201)
Business license 132,000 132,000 136,571 4,571
Fire permits 72,650 72,650 73,007 357
Sub-total 2,380,013 2,380,013 3,142,223 762,210
Fines and Forfeitures:
Parking fines 66,300 66,300 67,563 1,263
Other court fines 63,000 63,000 77,893 14,893
Other fines & penalties 2,900 2,900 4,011 1,111
Sub-total 132,200 132,200 149,467 17,267
Revenue From Use of Money and Property:
Interest 1,757,524 1,757,524 1,447,812 (309,712)
Rent & Concession:
Field rentals 65,275 65,275 61,276 (3,999)
Building 22,056 22,056 19,278 (2,778)
Pool 11,235 11,235 14,006 2,771
Heritage Center 4,125 4,125 4,149 24
Community gym 38,510 38,510 24,445 (14,065)
Sub-total 1,898,725 1,898,725 1,570,966 (327,759)
74
City of Dublin
Schedule of Budget Versus Actual Revenues by Sources
General Fund, Continued
For the fiscal year ended June 30, 2006
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Intergovernmental Revenues:
Motor vehicle in-lieu tax $ 333,000 $ 333,000 $ 856,766 $ 523,766
Off highway vehicle in-lieu tax 1,350 1,350 1,502 152
Homeowner's property tax relief 164,300 164,300 162,306 (1,994)
Intergovernmental - Federal 29,558 29,558 (29,558)
Sub-total 528,208 528,208 1,020,574 492,366
Charges for Services:
Zoning & subdivision fees 1,766,046 1,766,046 1,642,416 (123,630)
Plan check & inspection fees 1,553,500 1,553,500 2,040,799 487,299
Fire plan check and inspection fees 309,500 309,500 314,704 5,204
Sale of maps and documents 13,700 13,700 5,849 (7,851)
Special police services 23,000 23,000 24,734 1,734
Fire service charge 172,900 172,900 320,752 147,852
Cultural arts 58,560 79,560 111,449 31,889
Park and Recreation Fees:
Recreation instruction 132,780 132,780 118,000 (14,780)
Preschool 100,890 100,890 103,459 2,569
Special events 152,040 152,040 191,452 39,412
Playgrounds 232,542 232,542 223,420 (9,122)
Teens 69,420 69,420 49,158 (20,262)
Adult sports 63,669 63,669 35,204 (28,465)
Aquatics 207,870 207,870 156,120 (51,750)
Senior 55,070 55,070 69,097 14,027
Youth sports 138,964 138,964 149,711 10,747
Heritage Center 1,300 1,300 159 (1,141)
Building use insurance 1,230 1,230 1,692 462
Zone 7 drainage fees 5,430 5,430 12,287 6,857
OUI program 600 600 1,009 409
Booking fees recovery 2,300 2,300 22,045 19,745
Solid waste fees 124,300 124,300 114,785 (9,515)
Cemetery 6,720 6,720 4,695 (2,025)
Internment
Cable support fees 64,230 64,230 61,673 (2,557)
Sub-total 5,256,561 5,277,561 5,774,669 497,108
Other Revenues:
Sale of property 181,130 181,130 52,282 (128,848)
Contributions 211,250 213,750 178,179 (35,571 )
Miscellaneous 10,000 10,000 9,115 (885)
Reimbursement - general 1,301,193 1,527,584 145,696 (1,381,888)
Reimbursement - public damage 10,000 10,000 14,973 4,973
Sub-total 1,713,573 1,942,464 400,245 (1,542,219)
Total revenues by sources $ 45,663,025 $ 45,912,916 $ 46,405,285 $ 492,369
75
City of Dublin
Schedule of Budget Versus Actual Departmental Expenditures
General Fund
For the fiscal year ended June 30, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
General Government:
City Council $ 280,704 $ 300,704 $ 246,714 $ 53,990
City Manager 997,923 997,923 960,957 36,966
Central services 538,556 545,720 429,560 116,160
City Attorney 824,252 824,252 623,050 201,202
Administrative services 1,642,603 1,648,603 1,526,105 122,498
Building management 734,657 734,657 709,411 25,246
Insurance cost center 397,038 422,038 399,684 22,354
Election cost center 2,890 2,890 2,244 646
Nondepartmental 107,712 62,221 10,231 51,990
Sub-total 5,526,335 5,539,008 4,907,956 631,052
Public Safety:
Police 11,358,537 11,361,037 10,519,026 842,011
Crossing guards 72,283 82,140 79,559 2,581
Animal control 208,898 225,853 225,853
Traffic signals and street lighting 10,610 18,110 12,608 5,502
Disaster preparedness 74,721 67,557 59,513 8,044
Fire services 8,890,188 8,902,188 8,850,279 51,909
Sub-total 20,615,237 20,656,885 19,746,838 910,047
Highways and Streets:
Public works administration 808,577 808,577 783,633 24,944
Street maintenance 30,314 30,314 30,314
Street sweeping 148,000 152,302 135,923 16,379
Street tree maintenance 99,430 119,577 119,577
Street landscape maintenance 735,124 735,124 709,557 25,567
Sub-total 1,821,445 1,845,894 1,779,004 66,890
Health and Welfare:
Waste management 19,315 8,829 10,486
Child care 15,000 15,000 15,000
Social services
Housing programs
Sub-total 15,000 34,315 23,829 10,486
Culture and Leisure:
Library services 615,611 628,271 618,993 9,278
Heritage and Culture Arts 417,992 446,806 428,643 18,163
Park maintenance 1,692,165 1,712,065 1,390,354 321,711
Community cable television 66,407 66,407 63,061 3,346
Parks and community services 3,236,369 3,240,409 3,153,869 86,540
Parks and facilities management 308,494 308,494 293,643 14,851
Sub-total 6,337,038 6,402,452 5,948,563 453,889
76
City of Dublin
Schedule of Budget Versus Actual Departmental Expenditures
General Fund, Continued
For the fiscal year ended June 30, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Community Development:
Planning/building safety $ 5,899,049 $ 5,899,759 $ 5,126,930 $ 772,829
Engineering 2,194,005 2,380,372 2,380,372
Economic development 340,628 355,628 291,110 64,518
Sub-total 8,433,682 8,635,759 7,798,412 837,347
Capital Outlay:
General improvements 1,319,558 1,383,213 606,779 776,434
Community improvements 522,329 884,277 780,955 103,322
Parks 1,498,597 1,680,115 1,037,008 643,107
Street construction and improvements 1,185,241 1,488,019 660,582 827,437
Sub-total 4,525,725 5,435,624 3,085,324 2,350,300
Total expenditures $ 47,274,462 $ 48,549,937 $ 43,289,926 $ 5,260,011
77
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78
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, 2006
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest $ 402,342 $ 402,342 $ 568,982 $ 166,640
Developer fees 8,112,000 8,112,000 5,859,694 (2,252,306)
Total revenues 8,514,342 8,514,342 6,428,676 (2,085,666)
EXPENDITURES:
Current:
General government
Capital outlay:
Community improvement
Streets 36,028,246 37,647,069 5,109,251 32,537,818
Total expenditures 36,028,246 37,647,069 5,109,251 32,537,818
REVENUES OVER (UNDER) EXPENDITURES (27,513,904) (29,132,727) 1,319,425 30,452,152
OTHER FINANCING SOURCES (USES):
Transfer in
Transfer out (52,884) 52,884
Total other financing sources (uses) (52,884) 52,884
Net change in fund balance $ $ (52,884) 1,319,425 $ 1,372,309
FUND BALANCE:
Beginning of year 18,238,374
End of year $ 19,557,799
79
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, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Pinal Amounts (Negative)
REVENUES:
Interest $ 222,958 $ 222,958 $ 324,377 $ 101,419
Developer fees 7,074,121 7,074,121 7,453,376 379,255
Total revenues 7,297,079 7,297,079 7,777,753 480,674
EXPENDITURES:
Capital outlay:
General 67,700 83,600 59,381 24,219
Parks 1,276,383 7,205,956 5,013,947 2,192,009
Total expenditures 1,344,083 7,289,556 5,073,328 2,216,228
Net change in fund balance $ 5,952,996 $ 7,523 2,704,425 $ 2,696,902
FUND BALANCE:
Beginning of year 8,712,054
End of year $ 11,416,479
80
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, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest $ $ $ $
Developer fees 445,800 445,800 383,741 (62,059)
Total revenues 445,800 445,800 383,741 (62,059)
EXPENDITURES:
Current:
General Government 445,800 75,050 370,750
Total expenditures 445,800 75,050 370,750
Net change in fund balance $ 445,800 $ 308,691 $ 308,691
FUND BALANCE:
Beginning of year (2,202,289)
End of year $ (1,893,598)
81
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, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest $ 240,323 $ 240,323 $ 363,661 $ 123,338
Developer fees 997,400 997,400 209,411 (787,989)
Total revenues 1,237,723 1,237,723 573,072 (664,651)
EXPENDITURES:
Community Development 938,120 959,540 384,164 575,376
Total expenditures 938,120 959,540 384,164 575,376
REVENUES OVER (UNDER) EXPENDITURES 299,603 278,183 188,908 (89,275)
OTHER FINANCING SOURCES (USES):
Transfers in 6,600 6,600
Transfers out
Total financing sources (uses) 6,600 6,600
Net change in fund balance $ 299,603 $ 284,783 195,508 $ (89,275)
FUND BALANCE:
Beginning of year 12,847,554
End of year $ 13,043,062
82
NON-MAJOR
GOVERNMENTAL FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major
capital projects) that are legally restricted to expenditures for specific purposes.
Special 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 (SLESjCOPS) - Established to account for police 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.
Community Development Block Grant (CDBG) Fund - Used to account for grants and expenditures related
to community development block grants.
Transportation Development Act - Established to account for Transportation Development Act grant
receipts and related expenditures for bike paths and access ramps for the handicapped.
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.
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. This fund
also accounts for other locally derived funds for recycling related activities
83
NON-MAJOR
GOVERNMENTAL FUNDS
Garbage Service Fund - Established to account for the use of funds received which are levied by the county
on behalf of the City for garbage pick-up and removal and recycling services.
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.
EMS 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.
Maintenance Districts - Established to account for revenue and related expenditures of lighting and
landscape districts.
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.
84
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85
City of Dublin
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2006
Special Revenue Funds
Special Supplemental
Criminal Vehicle Law
Activity Abatement Enforcement Traffic Safety State Gas Tax
ASSETS
Cash and investments $ 24,984 $ 119,622 $ 87 $ 141,408 $ 2,158,301
Accounts receivable 18,957
Total assets $ 24,984 $ 119,622 $ 87 $ 160,365 $ 2,158,301
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable $ $ $ $ 9,505 $ 264,986
Contract retention payable 25,030
Due to other funds
Total liabilities 9,505 290,016
Fund Balances:
Reserved for:
Pole painting
Recycling programs
Public safety programs 24,984 119,622 87 150,860
Street maintenance and construction 1,868,285
Health and welfare programs
Capital improvement projects
Total fund balances 24,984 119,622 87 150,860 1,868,285
Total liabilities and fund balances $ 24,984 $ 119,622 $ 87 $ 160,365 $ 2,158,301
86
Special Revenue Funds
Community Transportation Measure B State Measure B
Development Development Sale Tax Transportation Measure D Garbage Bike and
Block Grant Act FEMA Transportation Improvement Recycling Service Pedestrian
$ $ $ $ 206,770 $ $ 716,757 $ $ 187,208
32,447 45,144 15,747 52,130 52,884 46,991 12,974 16,667
$ 32,447 $ 45,144 $ 15,747 $ 258,900 $ 52,884 $ 763,748 $ 12,974 $ 203,875
$
17,581
$
$
$
$
$
47,964
4,993
$
$
38,581
1,416
14,866
45,144
15,747
32,447
45,144
15,747
38,581
52,957
1,416
87
City of Dublin
Combining Balance Sheet
Non-Major Governmental Funds, Continued
June 30, 2006
Special Revenue Funds
Maintenance Districts
Traffic Dougherty
Congestion Street Stagecoach Landscape &
EMS Relief Lighting Landscape Lighting
ASSETS
Cash and inveshnents $ 14,495 $ 129,819 $ 133,373 $ 53,469 $ 78,574
Accounts receivable 39,011 52,473 1,241 388 320
Total assets $ 53,506 $ 182,292 $ 134,614 $ 53,857 $ 78,894
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable $ 14,416 $ $ 1,920 $ 5,654 $ 8,565
Contract retention payable
Due to other funds
Total liabilities 14,416 1,920 5,654 8,565
Fund Balances:
Reserved for:
Pole painting
Recycling programs
Public safety programs 39,090
Street maintenance and construction 182,292 132,694 48,203 70,329
Health and welfare programs
Capital improvement projects
Total fund balances 39,090 182,292 132,694 48,203 70,329
Total liabilities and fund balances $ 53,506 $ 182,292 $ 134,614 $ 53,857 $ 78,894
(Continued)
88
Capital
Projects Funds
Santa Rita
Assessment
District 97-1
Dublin Street
Lighting
Assessment
Park
Dedication
Total
Non-Major
Governmental
Funds
$
230,754
735
$
76,466
729
$
$ 4,272,087
388,838
$ 4,660,925
$
231,489
$
77,195
$
$ 21,194 $ 236 $ $ 392,021
68,604
77,173
21,194 236 537,798
65,006 65,006
710,791
334,643
210,295 11,953 2,797,254
11,558
203,875
210,295 76,959 4,123,127
$ 231,489 $ 77,195 $ $ 4,660,925
(Concluded)
89
City of Dublin
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2006
Special Revenue Funds
Special Supplemental
Criminal Vehicle Law
Activity Abatement Enforcement Traffic Safety State Gas Tax
REVENUES:
Property taxes $ $ $ $ $
Taxes other than property
Intergovernmental 20,603 100,000 732,542
Charges for service
Interest 646 3,325 698 3,906 56,957
Fines and forfeitures 190,869
Developer fees
Other revenue 2,000
Special assessments
Total revenues 2,646 23,928 100,698 194,775 789,499
EXPENDITURES:
Current:
General government
Public safety 1,287 3,595 100,789 225,649
Highways and streets 320,193
Health and welfare
Community development 6,000
Capital outlay:
Community improvement
Parks
Streets 558,089
Total expenditures 1,287 3,595 100,789 225,649 884,282
REVENUES OVER
(UNDER) EXPENDITURES 1,359 20,333 (91) (30,874) (94,783)
OTHER FINANCING SOURCES (USES):
Transfer in
Transfer out (15,189)
Total other financing sources (uses) (15,189)
NET CHANGE IN FUND BALANCES 1,359 5,144 (91) (30,874) (94,783)
FUND BALANCES:
Beginning of year 23,625 114,478 178 181,734 1,963,068
End of year $ 24,984 $ 119,622 $ 87 $ 150,860 $ 1,868,285
90
(6,600)
(6,600)
$
$
$
(287,500)
$
507,819
220,319
$
52,884
52,884
91
103,994
$
606,797
710,791
(2,336)
$
13,894
11,558
91,051
$
112,824
203,875
(Continued)
City of Dublin
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds, Continued
For the year ended June 30, 2006
Special Revenue Funds
Maintenance Districts
Traffic Dougherty
Congestion Street Stagecoach Landscape &
EMS Relief Lighting Landscape Lighting
REVENUES:
Property taxes $ 115,764 $ $ $ $
Taxes other than property
Intergovernmental 152,440 180,501
Charges for service
Interest 236 1,791 5,153 1,433 1,828
Fines and forfeitures
Developer fees
Other revenue 5,243 360
Special assessments 228,932 62,133 91,422
Total revenues 268,440 182,292 239,328 63,566 93,610
EXPENDITURES:
Current:
General government
Public safety 267,350 196,867
Highways and streets 2,096 63,619 62,361
Health and welfare
Community development 5,927 940 941
Capital outlay:
Community improvement 18,107
Parks
Streets 75,000
Total expenditures 267,350 279,890 64,559 81,409
REVENUES OVER
(UNDER) EXPENDITURES 1,090 182,292 (40,562) (993) 12,201
OTHER FINANCING SOURCES (USES):
Transfer in
Transfer out
Total other financing sources (uses)
NET CHANGE IN FUND BALANCES 1,090 182,292 (40,562) (993) 12,201
FUND BALANCES:
Beginning of year 38,000 173,256 49,196 58,128
End of year $ 39,090 $ 182,292 $ 132,694 $ 48,203 $ 70,329
(Continued)
92
Capital
Special Revenue Funds Projects Funds
Maintenance Districts Total
Santa Rita Dublin Street Non-Major
Assessment Lighting Park Governmental
District 97-1 Assessment Dedication Funds
$ $ $ $ 115,764
443,196
1,572,762
1,315,436
6,295 2,430 29,144 154,601
190,869
3,112,052 3,112,052
426,470
212,143 50,600 645,230
218,438 53,030 3,141,196 7,976,380
795,537
222,780 65,503 757,123
1,883,121
1,028 2,521 17,357
57,663
4,088,183 4,138,532
1,332,617
223,808 68,024 4,088,183 8,981,950
(5,370) (14,994) (946,987) (1,005,570)
(21,789)
(21,789)
(5,370)
(14,994)
(946,987)
(1,027,359)
$
215,665
210,295
$
91,953
76,959
946,987
$
5,150,486
$ 4,123,127
(Concluded)
93
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, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest $ 512 $ 512 $ 646 $ 134
Other revenue 2,500 2,500 2,000 (500)
Total revenues 3,012 3,012 2,646 (366)
EXPENDITURES:
Current:
Public safety 14,775 14,775 1,287 13,488
Total expenditures 14,775 14,775 1,287 13,488
Net change in fund balance $ (11,763) $ (11,763) 1,359 $ 13,122
FUND BALANCE:
Beginning of year 23,625
End of year $ 24,984
94
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, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovemmental $ 31,580 $ 31,580 $ 20,603 $ (10,977)
Interest 3,153 3,153 3,325 172
Total revenues 34,733 34,733 23,928 (10,805)
EXPENDITURES:
Current:
Public safety 5,480 5,480 3,595 1,885
Total expenditures 5,480 5,480 3,595 1,885
REVENUES OVER (UNDER) EXPENDITURES 29,253 29,253 20,333 (8,920)
OTHER FINANCING (USES):
Transfers out (29,253) (15,189) 14,064
Total other financing (29,253) (15,189) 14,064
Net change in fund balance $ 34,733 $ 5,480 5,144 $ 5,144
FUND BALANCE:
Beginning of year 114,478
End of year $ 119,622
95
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Supplemental Law Enforcement Special Revenue Fund
For the year ended June 30, 2006
Variance with
Pinal Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovemmental $ 100,000 $ 100,000 $ 100,000 $
Interest 14 14 698 684
Total revenues 100,014 100,014 100,698 684
EXPENDITURES:
Current:
Public safety 100,000 100,789 100,789
Total expenditures 100,000 100,789 100,789
Net change in fund balance $ 14 $ (775) (91) $ 684
FUND BALANCE:
Beginning of year 178
End of year $ 87
96
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, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest $ 4,352 $ 4,352 $ 3,906 $ (446)
Fines and forfeitures 156,000 156,000 190,869 34,869
Total revenues 160,352 160,352 194,775 34,423
EXPENDITURES:
Current:
Public safety 234,700 234,700 225,649 9,051
Total expenditures 234,700 234,700 225,649 9,051
Net change in fund balance $ (74,348) $ (74,348) (30,874) $ 43,474
FUND BALANCE:
Beginning of year 181,734
End of year $ 150,860
97
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, 2006
Variance with
Pinal Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ 761,400 $ 761,400 $ 732,542 $ (28,858)
Interest 56,721 56,721 56,957 236
Total revenues 818,121 818,121 789,499 (28,622)
EXPENDITURES:
Current:
Public safety
Highways and streets 330,474 335,940 320,193 15,747
Community development 6,000 6,000 6,000
Capital outlay:
Streets 910,578 922,300 558,089 364,211
Total expenditures 1,247,052 1,264,240 884,282 379,958
Net change in fund balance $ (428,931) $ (446,119) (94,783) $ 351,336
FUND BALANCE:
Beginning of year 1,963,068
End of year $ 1,868,285
98
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, 2006
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ 76,792 $ 76,792 $ 106,583 $ 29,791
Total revenues 76,792 76,792 106,583 29,791
EXPENDITURES:
Current:
Health and welfare 60,427 60,427 60,427
Capital outlay:
Community improvement 9,765 39,556 39,556
Total expenditures 70,192 99,983 99,983
REVENUES OVER (UNDER) EXPENDITURES 6,600 (23,191) 6,600 29,791
OTHER FINANCING (USES):
Transfers out (6,600) (6,600)
Total other financing (uses) (6,600) (6,600)
Net change in fund balance $ 6,600 $ (29,791) $ 29,791
FUND BALANCE:
Beginning of year
End of year $
99
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Transportation Development Act Special Revenue Fund
For the year ended June 30, 2006
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovemmental $ 45,144 $ 45,144 $ 45,144 $
Total revenues 45,144 45,144 45,144
EXPENDITURES:
Capital outlay:
Streets 45,144 45,144 45,144
Total expenditures 45,144 45,144 45,144
REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
Net change in fund balance $ $ $
FUND BALANCE:
Beginning of year
End of year $
100
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - FEMA Special Revenue Fund
For the year ended June 30,2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ 15,747 $ 15,747 $ 15,747 $
Total revenues 15,747 15,747 15,747
EXPENDITURES:
Current:
Public Safety 15,747 15,747
Total expenditures 15,747 15,747
Net change in fund balance $ 15,747 $ $
FUND BALANCE:
Beginning of year
End of year $
101
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Measure B Sales Tax Transportation Special Revenue Fund
For the year ended June 30, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes other than property $ 274,802 $ 274,802 $ 337,716 $ 62,914
Interest 10,652 10,652 10,743 91
Total revenues 285,454 285,454 348,459 63,005
EXPENDITURES:
Capital outlay:
Streets 631,048 635,959 635,959
Total expenditures 631,048 635,959 635,959
Net change in fund balance $ (345,594) $ (350,505) (287,500) $ 63,005
FUND BALANCE:
Beginning of year 507,819
End of year $ 220,319
102
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - State Transportation Improvement Special Revenue Fund
For the year ended June 30,2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ $ $ $
Total revenues
OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
Net change in fund balance $ $ $
FUND BALANCE:
Beginning of year 52,884
End of year $ 52,884
103
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, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ 211,223 $ 211,223 $ 219,202 $ 7,979
Interest 20,880 20,880 17,890 (2,990)
Other revenue 407,000 407,000 418,867 11,867
Total revenues 639,103 639,103 655,959 16,856
EXPENDITURES:
Current:
Highways and streets 5,564 5,564 4,824 740
Health and welfare 514,242 514,242 496,792 17,450
Capital outlay:
Community improvement
Parks 31,310 57,270 50,349 6,921
Total expenditures 551,116 577,076 551,965 25,111
Net change in fund balance $ 87,987 $ 62,027 103,994 $ 41,967
FUND BALANCE:
Beginning of year 606,797
End of year $ 710,791
104
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, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services $ 1,350,461 $ 1,350,461 $ 1,315,436 $ (35,025)
Interest 8,130 8,130
Total revenues 1,350,461 1,350,461 1,323,566 (26,895)
EXPENDITURES:
Current:
Health and welfare 1,360,664 1,360,664 1,325,902 34,762
Total expenditures 1,360,664 1,360,664 1,325,902 34,762
Net change in fund balance $ (10,203) $ (10,203) (2,336) $ 7,867
FUND BALANCE:
Beginning of year 13,894
End of year $ 11,558
105
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Measure B Bike and Pedestrian Special Revenue Fund
For the year ended June 30, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Taxes other than property $ 85,698 $ 85,698 $ 105,480 $ 19,782
Interest 3,445 3,445 3,996 551
Total revenues 89,143 89,143 109,476 20,333
EXPENDITURES:
Capital outlay:
Streets 67,400 67,400 18,425 48,975
Total expenditures 67,400 67,400 18,425 48,975
Net change in fund balance $ 21,743 $ 21,743 91,051 $ 69,308
FUND BALANCE:
Beginning of year 112,824
End of year $ 203,875
106
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - EMS Special Revenue Fund
For the year ended June 30,2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes $ 117,680 $ 117,680 $ 115,764 $ (1,916)
Intergovernmental 152,440 152,440 152,440
Interest 28 28 236 208
Total revenues 270,148 270,148 268,440 (1,708)
EXPENDITURES:
Current:
Public safety 270,120 270,120 267,350 2,770
Total expenditures 270,120 270,120 267,350 2,770
Net change in fund balance $ 28 $ 28 1,090 $ 1,062
FUND BALANCE:
Beginning of year 38,000
End of year $ 39,090
107
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, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental $ $ $ 180,501 $ 180,501
Interest 1,791 1,791
Total revenues 182,292 182,292
OTHER FINANCING (USES):
Transfers out
Total other financing (uses)
Net change in fund balance $ $ 182,292 $ 182,292
FUND BALANCE:
Beginning of year
End of year $ 182,292
108
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, 2006
Variance with
Pinal Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest $ 4,273 $ 4,273 $ 5,153 $ 880
Other revenue 5,000 5,000 5,243 243
Special assessments 220,300 220,300 228,932 8,632
Total revenues 229,573 229,573 239,328 9,755
EXPENDITURES:
Current:
General government:
Public safety 208,083 208,083 196,867 11,216
Highways and streets 2,415 2,415 2,096 319
Community development 6,250 6,250 5,927 323
Capital outlay:
Streets 75,000 75,000 75,000
Total expenditures 291,748 291,748 279,890 11,858
Net change in fund balance $ (62,175) $ (62,175) (40,562) $ 21,613
FUND BALANCE:
Beginning of year 173,256
End of year $ 132,694
109
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, 2006
Variance with
Final Budget-
Budgeted Amounts Actual Positive
Original Pinal Amounts (Negative)
REVENUES:
Interest $ 1,318 $ 1,318 $ 1,433 $ 115
Special assessments 62,198 62,198 62,133 (65)
Total revenues 63,516 63,516 63,566 50
EXPENDITURES:
Current:
Highways and streets 74,425 74,425 63,619 10,806
Community development 1,350 1,350 940 410
Total expenditures 75,775 75,775 64,559 11,216
Net change in fund balance $ (12,259) $ (12,259) (993) $ 11,266
FUND BALANCE:
Beginning of year 49,196
End of year $ 48,203
110
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, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest $ 1,587 $ 1,587 $ 1,828 $ 241
Other Revenue 360 360
Special assessments 91,254 91,254 91,422 168
Total revenues 92,841 92,841 93,610 769
EXPENDITURES:
Current:
Highways and streets 74,509 74,609 62,361 12,248
Community development 1,350 1,350 941 409
Capital outlay:
Community improvement 32,920 32,920 18,107 14,813
Total expenditures 108,779 108,879 81,409 27,470
Net change in fund balance $ (15,938) $ (16,038) 12,201 $ 28,239
FUND BALANCE:
Beginning of year 58,128
End of year $ 70,329
111
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, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest $ 5,076 $ 5,076 $ 6,295 $ 1,219
Special assessments 225,567 225,567 212,143 (13,424)
Total revenues 230,643 230,643 218,438 (12,205)
EXPENDITURES:
Current:
Highways and streets 241,236 241,236 222,780 18,456
Community development 1,400 1,400 1,028 372
Total expenditures 242,636 242,636 223,808 18,828
Net change in fund balance $ (11,993) $ (11,993) (5,370) $ 6,623
FUND BALANCE:
Beginning of year 215,665
End of year $ 210,295
112
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - Dublin Street Lighting Assessment Special Revenue Fund
For the year ended June 30,2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest $ 3,224 $ 3,224 $ 2,430 $ (794)
Special assessments 65,291 65,291 50,600 (14,691 )
Total revenues 68,515 68,515 53,030 (15,485)
EXPENDITURES:
Current:
Highways and streets 70,517 70,517 65,503 5,014
Community development 2,750 2,750 2,521 229
Total expenditures 73,267 73,267 68,024 5,243
Net change in fund balance $ (4,752) $ (4,752) (14,994) $ (10,242)
FUND BALANCE:
Beginning of year 91,953
End of year $ 76,959
113
City of Dublin
Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual- Park Dedication Fees Capital Project Fund
For the year ended June 30, 2006
Variance with
Final Budget -
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES:
Interest $ $ $ 29,144 $ 29,144
Developer fees 2,638,304 2,638,304 3,112,052 473,748
Total revenues 2,638,304 2,638,304 3,141,196 502,892
EXPENDITURES:
Capital outlay:
Parks 5,456,020 4,131,051 4,088,183 42,868
Total expenditures 5,456,020 4,131,051 4,088,183 42,868
Net change in fund balance $ (2,817,716) $ (1,492,747) (946,987) $ 545,760
FUND BALANCE:
Beginning of year 946,987
End of year $
114
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.
115
City of Dublin
Combining Statement of Net Assets
Internal Service Funds
June 30, 2006
Fire Equipment
Equipment and Station Building Retiree
Replacement Replacement Replacement Health Care Total
ASSETS
Current assets:
Cash and investments $ 2,304,007 $ 1,385,900 $ 1,632,400 $ 4,983,128 $ 10,305,435
Receivables:
Accounts
Total current assets 2,304,007 1,385,900 1,632,400 4,983,128 10,305,435
Noncurrent assets:
Land 6,842,037 6,842,037
Construction in progress 437,820 437,820
Buildings and improvements 50,804,818 50,804,818
Machinery and equipment 2,208,697 2,940,162 448,979 5,597,838
Less: accumulated depreciation (1,731,811 ) (1,390,708) (11,295,748) (14,418,267)
Total noncurrent assets 476,886 1,549,454 47,237,906 49,264,246
Total assets 2,780,893 2,935,354 48,870,306 4,983,128 59,569,681
LIABILITIES
Current liabilities:
Accounts payable 31,062 31,062
Total current liabilities 31,062 31,062
Noncurrent assets:
OPEB Obligation 518,366 518,366
Total noncurrent liabilities 518,366 518,366
Total liabilities 31,062 518,366 549,428
NET ASSETS
Invested in capital assets 476,886 1,549,454 47,237,906 49,264,246
Umestricted 2,272,945 1,385,900 1,632,400 4,464,762 9,756,007
Total net assets $ 2,749,831 $ 2,935,354 $ 48,870,306 $ 4,464,762 $ 59,020,253
116
City of Dublin
Combining Statement of Revenues, Expenses and Changes in Net Assets
Internal Service Funds
For the year ended June 30, 2006
Fire Equipment
Equipment and Station Building Retiree
Replacement Replacement Replacement Health Care Total
OPERATING REVENUES:
Charges for services $ 808,026 $ 234,638 $ 134,728 $ 613,591 $ 1,790,983
Other revenue 118,785 10,565 809,697 939,047
Total operating revenues 926,811 245,203 944,425 613,591 2,730,030
OPERATING EXPENSES:
Supplies and services 339,235 72,400 25,000 133,841 570,476
OPEB expenses 472,096 472,096
Depreciation 276,233 200,901 1,388,720 1,865,854
Total operating expenses 615,468 273,301 1,413,720 605,937 2,908,426
Operating income (loss) 311,343 (28,098) (469,295) 7,654 (178,396)
NONOPERATING REVENUES:
Interest income 59,026 36,334 43,357 128,319 267,036
Change in net assets 370,369 8,236 (425,938) 135,973 88,640
NET ASSETS:
Beginning of year 2,379,462 2,927,118 49,296,244 4,328,789 58,931,613
End of year $ 2,749,831 $ 2,935,354 $ 48,870,306 $ 4,464,762 $ 59,020,253
117
City of Dublin
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2006
Fire Equipment
Equipment and Station Building Retiree
Replacement Replacement Replacement Health Care Total
CASH FLOWS FROM OPERATING
ACTIVITIES:
Receipts from customers $ 810,103 $ 234,638 $ 134,728 $ 613,591 $ 1,793,060
Payments to suppliers (348,375) (76,742) (27,219) (102,781) (555,117)
Other 118,785 10,565 809,697 939,047
Net cash provided (used) by
operating activities 580,513 168,461 917,206 510,810 2,176,990
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING
ACTIVITIES:
Capital assets purchases (278,065) (18,607) (830,578) (1,127,250)
Net cash provided (used) for capital
and related financing activities (278,065) (18,607) (830,578) (1,127,250)
CASH FLOWS FROM
INVESTING ACTIVITIES:
Interest received 59,026 36,334 43,357 128,319 267,036
Net cash provided (used) for
investing activities 59,026 36,334 43,357 128,319 267,036
Net increase (decrease) in
cash and cash equivalents 361,474 186,188 129,985 639,129 1,316,776
CASH AND EQUIVALENTS:
Beginning of year 1,942,533 1,199,712 1,502,415 4,343,999 8,988,659
End of year $ 2,304,007 $ 1,385,900 $ 1,632,400 $ 4,983,128 $ 10,305,435
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY OPERATING
ACTIVITIES:
Operating income (loss) $ 311,343 $ (28,098) $ (469,295) $ 7,654 $ (178,396)
Adjustments to reconcile operating income
(loss) to cash flows from operating activities:
Depreciation 276,233 200,901 1,388,720 1,865,854
Net effect of changes in:
Accounts receivable 2,077 2,077
Accounts payable (9,140) (4,342) (2,219) (15,210) (30,911)
OPEB Obligation 518,366 518,366
Net cash provided (used) by
operating activities $ 580,513 $ 168,461 $ 917,206 $ 510,810 $ 2,176,990
118
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.
119
City of Dublin
Statement of Changes in Net Assets
Agency Fund
For the fiscal year ended June 30, 2006
Balance Balance
July 1, 2005 Additions Deletions June 30, 2006
Dublin Boulevard
Extension Assessment District
Assets:
Cash and investments $ 196,982 $ 245,385 $ (231,733) $ 210,634
Restricted cash and investments 175,727 6,166 181,893
Total assets $ 372,709 $ 251,551 $ (231,733) $ 392,527
Liabilities:
Due to bondholders $ 372,709 $ 251,551 $ (231,733) $ 392,527
Total liabilities $ 372,709 $ 251,551 $ (231,733) $ 392,527
120
City of Dublin
General Governmental Activities Tax Revenues by Source and
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
Fiscal
Year Property Transient
Ended Property Sales Franchise Transfer Occupancy
June 30 Tax Tax Tax Tax Tax Total
1997 $ 3,920,897 $ 7,108,598 $ 723,385 $ 138,062 $ 267,007 $ 12,157,949
1998 4,351,859 8,191,521 759,803 231,331 306,318 13,840,832
1999 4,866,093 8,859,652 849,959 282,733 389,664 15,248,101
2000 5,991,814 11,741,563 963,070 370,946 808,688 19,876,081
2001 7,174,290 13,204,429 1,313,087 575,282 1,010,799 23,277,887
2002 8,885,812 13,093,676 1,385,816 434,832 810,220 24,610,356
2003 10,142,650 13,573,607 1,394,953 379,089 717,083 26,207,382
2004 11,422,308 14,297,705 1,505,435 571,361 664,309 28,461,118
2005 14,167,079 14,517,465 1,559,900 831,003 663,632 31,739,079
2006 16,891,670 14,807,059 1,789,356 690,404 727,612 34,906,101
Source: City Finance Department
Note: The City experienced a dramatic decline in Transient Occupancy Taxes following the September 11, 2001 national
tragedy and the down turn that occurred in the San Francisco Bay Area economy that ocurred during 2001-2005.
The City has experienced signficant growth in most other types of taxes due to signficant residential and commercial
growth that has occurred during the last few years.
121
City of Dublin
Net Assets by Component
Last Five Fiscal Years
(accrual basis of accounting)
Fiscal Year
2002 2003 2004 2005 2006
Governmental activities:
Invested in capital assets,
net of related debt $ 42,960,899 $ 61,016,642 $ 80,050,710 $ 383,667,187 $ 387,888,143
Restricted 43,339,073 34,110,132 37,455,125 45,288,468 48,480,463
Unrestricted 45,579,288 50,413,267 50,943,803 52,176,440 57,766,785
Total governmental activities net assets $ 131,879,260 $ 145,540,041 $ 168,449,638 $ 481,132,095 $ 494,135,391
The City of Dublin implemented GASB 34 for the fiscal year ended June 30, 2002. Information prior to the implementation of GASB 34 is not
available. The significant increase in Capital Assets in Fiscal Year 2004-2005 is due to a retroactive valuation recorded for the City's existing
infrastructure in accordance with GASB 34.
Source: City Finance Department
122
City of Dublin
Changes in Net Assets
Last Five Fiscal Years
(accrual basis of accounting)
Fiscal Year
2002 2003 2004 2000 2006
Expenses:
Governmental activities:
General government $ 4,658,653 $ 6,135,344 $ 6,288,645 $ 3,081,581 $ 4,940,585
Public safety 12,449,573 14,026,216 17,135,716 19,047,262 20,314,535
Highways and streets 5,277,778 15,187,872 939,260 19,810,590 13,894,865
Health and welfare 1,193,542 1,349,228 3,755,564 1,722,224 1,887,417
Culture and leisure services 3,901,126 4,730,430 1,603,494 8,954,495 10,074,239
Community development 4,557,634 5,334,646 6,113,171 7,210,558 8,553,887
Interest on long-term debt
Total governmental activities expenses 32,038,306 46,763,736 35,835,850 59,826,710 59,665,529
Program revenues:
Governmental activities:
Charges for services:
General government 202,732 202,330 2,603 5,198 4,011
Public safety 913,612 1,073,145 851,864 1,197,925 1,270,233
Highways and streets 28,021 25,609 2,321,473 2,451,377 2,167,740
Health and welfare 978,499 1,033,317 1,558,930 1,541,361 2,092,566
Culture and leisure services 848,701 1,009,572 1,252,866 1,617,013 1,751,965
Community development 4,803,099 5,182,361 6,135,027 6,969,366 6,629,383
Operating grants and contributions 1,503,109 1,824,388 239,094 169,906 238,053
Capital grants and contributions 23,150,710 19,424,093 15,364,732 42,585,906 18,900,426
Total governmental activities
program revenues 32,428,483 29,774,815 27,726,589 56,538,052 33,054,377
Net revenues (expenses): $ 390,177 $ (16,988,921) $ (8,109,261) $ (3,288,658) $ (26,611,152)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes 9,447,544 10,783,414 11,422,308 14,167,079 16,891,670
Sales tax 12,813,111 13,193,407 13,940,263 14,152,987 14,363,863
Other taxes 2,630,868 2,491,125 2,865,226 3,181,939 3,343,943
Motor vehicle in lieu, unrestricted 1,940,341 2,072,440 1,682,152 413,075 856,766
Investment income, unrestricted 2,127,156 1,710,903 799,008 2,704,647 2,505,911
Other general revenues 511,652 398,413 309,901 199,233 280,386
Transfers
Total governmental activities 29,470,672 30,649,702 31,018,858 34,818,960 38,242,539
Changes in net assets $ 29,860,849 $ 13,660,781 $ 22,909,597 $ 31,530,302 $ 11,631,387
The City of Dublin implemented GASB 34 for the fiscal year ended June 30, 2002. Information prior to the implementation of GASB 34 is not
available.
Source: City Finance Department
123
City of Dublin
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
1997 1998 1999 2000
General Fund
Reserved $ 353,332 $ 316,310 $ 67,027 $ 73,144
Unreserved
Economic Uncertainty 1,369,133 1,369,133 1,369,133 1,369,133
Capital improvements 2,449,955
Affordable Housing
Designated for authorized
expenditures 21,513,332 24,498,396 15,631,867 21,019,752
Undesignated
Total general fund $ 23,235,797 $ 26,183,839 $ 17,068,027 $ 24,911,984
All Other Governmental Funds
Reserved $ 2,894,008 $ 8,711,825 $ 15,638,953 $ 23,366,124
Unreserved, reported in:
Special revenue funds
Capital projects funds
Undesignated (304,707) (248,048) (6,053) (4,142)
Total all other governmental funds $ 2,589,301 $ 8,463,777 $ 15,632,900 $ 23,361,982
Total All Governmental Funds $ 25,825,098 $ 34,647,616 $ 32,700,927 $ 48,273,966
Source: City Finance Department
Note: All Other Governmental Funds includes the City's Major Funds other than the General Funds and all Non Major Capital
Project and Special Revenue Funds
124
Fiscal Year
2001 2002 2003 2004 2005 2006
$ 65,175 $ 75,221 $ 529,811 $ 1,896,575 $ 2,275,433 $ 2,080,678
1,369,133 1,369,133 1,651,965 2,719,008 2,970,721 2,970,720
10,496,927 9,710,107 8,089,385 6,400,290 6,572,591 5,985,440
626,360 1,000,000 1,000,000 1,000,000
22,858,588 27,545,240 33,665,113 32,581,785 32,971,221 38,860,039
$ 34,789,823 $ 39,326,061 $ 43,936,274 $ 44,597,658 $ 45,789,966 $ 50,896,877
$ 30,722,073
$ 43,279,073
$ 34,665,390 $
37,395,125
$ 44,948,468 $
48,140,467
$ 30,722,073
$ 43,279,073
(1,075,338)
$ 33,590,052 $
(1,810,979)
35,584,146
(2,202,289)
$ 42,746,179 $
(1,893,598)
46,246,869
$ 65,511,896
$ 82,605,134
$ 77,526,326 $
80,181,804
$ 88,536,145 $
97,143,746
125
City of Dublin
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
1997 1998 1999 2000
Revenues:
Property taxes $ 3,920,897 $ 4,351,858 $ 4,866,093 5,991,816
Taxes other than property 8,389,176 9,563,695 10,458,693 13,962,982
Licenses and permits 1,092,183 1,398,677 2,472,217 3,897,965
Fines and forfeitures 60,999 71,017 126,734 197,914
Investment income 1,427,300 1,600,414 1,372,152 1,375,317
Use of property 78,488 70,461 90,539 85,831
Intergovernmental 2,091,210 2,159,609 2,633,035 3,056,557
Charges for services 2,174,687 3,199,115 4,189,973 4,041,472
Developer fees 614,549 845,948 2,257,955 10,337,149
Special assessments 243,987 276,346 253,175 318,355
Other revenues 248,362 527,960 276,065 767,795
Total revenues 20,341,838 24,065,100 28,996,631 44,033,153
Expenditures
Current:
General government 3,188,503 3,254,991 3,754,145 2,274,914
Public safety 6,968,912 8,566,630 9,145,346 9,892,983
Highways and streets 1,059,275 1,090,290 1,240,171 1,504,050
Health and welfare 734,423 764,979 851,699 893,254
Culture and leisure services 2,007,752 2,172,597 2,248,581 2,827,621
Community development 1,930,723 2,824,242 3,664,025 4,138,916
Capital outlay:
General 92,962 435,068 197,770 3,171,380
Community improvements 208,714 315,869 439,204 297,468
Parks 941,360 328,069 1,967,279 6,537,813
Streets 1,309,876 1,140,983 1,762,476 3,045,354
Debt service:
Principal 251,004 251,004
Total expenditures 18,442,500 20,893,718 25,521,700 34,834,757
Excess (deficiency) of
revenues over (under)
expenditures 1,899,338 3,171,382 3,474,931 9,198,396
Other financing sources (uses):
Transfers in 5,078 52,102 686,293 17,869
Transfers out (9,289) (60,487) (12,815,834) (949,510)
Total other financing
sources (uses) (4,211) (8,385) (12,129,541) (931,641)
Net change in fund balances $ 1,895,127 3,162,997 (8,654,610) 8,266,755
Debt service as a percentage of
noncapital expenditures 0.0% 0.0% 1.2% 1.2%
Source: City Finance Department
126
Fiscal Year
2001 2002 2003 2004 2005 2006
7,174,290 $ 8,885,812 $ 10,142,650 $ 11,422,308 14,167,079 16,891,670
16,185,183 15,650,789 16,064,732 17,038,810 17,572,000 18,014,431
3,028,655 2,327,251 2,421,885 3,090,992 3,520,141 3,142,223
242,363 267,214 274,284 272,153 292,658 340,336
2,725,077 3,743,415 2,709,459 857,734 2,948,612 2,859,433
114,614 85,937 139,019 130,741 125,835 123,154
4,129,090 4,702,126 11,412,577 4,942,167 3,312,079 2,593,336
4,486,440 5,330,051 5,680,902 5,789,970 6,623,303 7,090,105
8,882,375 19,685,682 10,195,565 13,455,274 14,361,337 17,018,274
384,649 431,564 501,424 593,201 744,100 645,230
2,736,852 526,716 672,895 1,152,096 954,949 826,715
50,089,588 61,636,557 60,215,392 58,745,446 64,622,093 69,544,907
3,085,725 3,929,919 4,363,241 6,193,881 6,535,408 4,983,006
10,960,752 12,523,197 13,948,110 17,222,501 19,163,929 20,542,375
1,445,943 1,546,347 1,850,944 2,072,806 2,272,310 2,536,127
1,139,399 1,196,457 1,352,083 3,762,260 1,734,787 1,906,950
3,332,421 4,012,730 4,611,564 5,098,102 5,377,134 5,948,563
4,572,981 4,678,311 5,399,648 6,363,727 7,404,619 8,199,933
1,367,829 8,900,230 12,574,726 2,170,910 1,250,772 666,160
1,477,404 353,534 478,309 734,113 462,751 838,618
182,710 226,440 2,370,369 5,425,790 9,237,426 10,189,487
9,099,539 6,925,150 18,345,206 7,045,878 2,828,616 7,102,450
251,004 251,004
36,915,707 44,543,319 65,294,200 56,089,968 56,267,752 62,913,669
13,173,881 17,093,238 (5,078,808) 2,655,478 8,354,341 6,631,238
16,202 16,785 18,580 21,905 1,336,275 21,789
(2,416,202) (16,785) (18,580) (21,905) (1,336,275) (21,789)
(2,400,000)
10,773,881 $ 17,093,238 (5,078,808) 2,655,478 8,354,341 6,631,238
1.0% 0.9% 0.0% 0.0% 0.0% 0.0%
127
City of Dublin
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
Fiscal City Wide Avg
Year Taxable Total
Ended Residential Commercial Industrial Unsecured I Less: Assessed Direct Tax
June 30 Property Property Property Other Property Exemptions Value Rate
1997 $ 1,133,616,524 $ 235,467,757 $ 102,696,908 $ 180,273,522 $ (53,787,504) $ 1,598,267,207 0.2523%
1998 1,180,150,877 247,373,249 106,842,182 203,198,518 (54,649,613) 1,682,915,213 0.2491 %
1999 1,325,055,883 269,605,070 123,225,613 246,256,948 (63,706,453) 1,900,437,061 0.2477%
2000 1,497,994,724 332,044,309 161,558,266 394,432,584 (66,691,923) 2,319,337,960 0.2447%
2001 1,852,468,604 439,284,508 178,875,023 595,033,189 (60,674,335) 3,004,986,989 0.2416%
2002 2,437,438,709 653,528,807 141,438,754 556,968,264 (64,396,816) 3,724,977,718 0.2398%
2003 2,825,719,751 877,069,998 140,636,627 534,477,740 (69,498,931) 4,308,405,185 0.2398 %
2004 3,233,586,490 998,908,661 147,997,335 561,725,805 (70,891,008) 4,871,327,283 0.2397%
2005 3,730,424,115 1,032,552,391 154,758,385 662,659,500 (72,612,237) 5,507,782,154 0.2397%
2006 4,520,222,157 1,052,701,438 162,182,398 652,279,788 (77,085,570) 6,310,300,211 0.2390%
NOTE:
In 1978 the voters of the State of Cali fomi a passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the
assessed value of the property being assessed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a
maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new
assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data
currently available with respect to the actual market value of taxable property. The City-wide Direct Tax Rate is an average, the actual tax rate
for each property varies according to its tax rate area. This average tax rate is net of State Shifts of local property tax revenue to Education and
net of admin fees.
Source: Alameda County Office of the Auditor-Controller
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128
City of Dublin
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
Fiscal Year
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
City Direct Rate: 0.2818 0.2818 0.2818 0.2818 0.2818 0.2818 0.2818 0.2818 0.2818 0.2818
Overlapping Rates:
Dublin Unified School District 0.3367 0.3340 0.3236 0.3043 0.3043 0.2957 0.2938 0.2938 0.2908 0.3326
Other Governmental Agencies 0.0178 0.0178 0.0178 0.0178 0.0178 0.0106 0.0121 0.0121 0.0121 0.0177
Bay Area Rapid Transit 0.0292 0.0287 0.0234 0.0067 0.0067 0.0067 0.0067 0.0067 0.0067 0.0115
Flood zone state bonds 0.0416 0.0407 0.0392 0.0374 0.0374 0.0387 0.0374 0.0374 0.0343 0.0359
East Bay parks bond 0.0400 0.0401 0.0412 0.0385 0.0385 0.0385 0.0434 0.0434 0.0434 0.0377
Chabot - Las Positas College 0.0275 0.0275 0.0275 0.0275 0.0275 0.0275 0.0275 0.0275 0.0461 0.0433
Alameda County Library 0.0556 0.0549 0.0557 0.0500 0.0500 0.0500 0.0500 0.0500 0.0500 0.0500
Alameda County 0.3104 0.3104 0.3104 0.3104 0.3104 0.3104 0.3104 0.3104 0.3104 0.3104
Total Direct Rate 1.1406 1.1359 1.1206 1.0744 1.0744 1.0599 1.0631 1.0631 1.0756 1.1210
NOTE:
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies
for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed
property values for the payment of voter approved bonds from various agencies.
Source: Alameda County Assessor's Office for Tax Rate Area 26-001 (Largest Tax Rate Area (TRA) in the City) This TRA represents 38% of the total
assessed value in the City. The City has a total of 38 different TRA administered by the County Tax Collector and the City share of Property Tax can
vary by each TRA.
129
City of Dublin
Principal Property Taxpayers
(Based on Secured 2005/2006 Tax Roll)
Current and Nine Years Ago
Taxpayer
Shops at Waterford LLC
Bit Holdings Fifty Six Inc
Toll California II Limited Partnership
Chang Lin, Et. AI
Acre Dublin LLC
Bere Island Properties I LLC Etal
Bit Investment Eleven Limited Partership
Capital Pacific Security Trust
Cisco Systems Inc
Park Sierra LLC
Bay Apartment Communities Inc.
Northwestern Mutual Life Insurance Company
Phoenix Mutual Life Insurance Company
RafaneIli and Nahas
Rafanelli and Nahas VM RafaneIli Vineyards
RReef Performance Partnership
Amador Lake Associates
Dublin Spring Inc.
Montgomery Ward Development
Dublin Properties Inc.
2006
Assessed Value
$120,381,158
116,782,555
117,145,829
102,180,876
107,483,658
77,853,684
65,943,000
64,450,852
62,425,500
45,618,596
$880,265,708
Percent of Total
Assessed Value
1.91%
1.85%
1.86%
1.62%
1.70%
1.23%
1.05%
1.02%
0.99%
0.72%
13.95%
Source: HDL Coren & Cone, Alameda County Assessor Combined Tax Rolls
130
1997
Assessed Value
$22,581,972
19,874,760
15,732,982
15,331,606
13,513,377
13,651,929
12,539,650
12,473,731
9,839,952
8,782,200
$144,322,159
Percent of Total
Assessed Value
1.41%
1.24%
0.99%
0.96%
0.85%
0.85%
0.79%
0.78%
0.62%
0.55%
9.04%
City of Dublin
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Collected within the
Year Total Tax Fiscal Year of the Levy Collected in Total Collections to Date
Ended Levy for Percentage Subsequent Percentage
June 30 Fiscal Year Amount of Levy Years Amount of Levy
1997 $ 3,921,703 $ 3,713,665 94.3% $ 123,353 $ 3,837,018 97.8%
1998 4,184,413 4,074,407 94.7% 92,357 4,166,764 99.6%
1999 4,798,501 4,517,234 97.4% 86,600 4,603,834 95.9%
2000 5,765,531 5,499,897 94.1% 98,390 5,598,287 97.1%
2001 7,333,215 6,959,769 95.4% 127,641 7,087,410 96.6%
2002 9,187,641 8,655,872 94.9% 215,980 8,871,852 96.6%
2003 10,732,663 10,142,650 94.2% 412,595 10,555,245 98.3%
2004 11,858,495 11,826,609 94.5% 31,886 11,858,495 100.0%
2005 12,626,880 12,354,685 97.8% 245,157 12,599,842 99.8%
2006 13,909,466 13,530,450 97.3% N/A 13,530,450 97.3%
Source: Alameda County Office of the Auditor-Controller (for levies), City Finance Department
Property Tax Collection
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131
City of Dublin
Direct and Overlapping Debt
June 30, 2006
City Assessed Valuation $ 6,310,300,211
Percentage
Applicable to City Outstanding Debt Estimated Share of
of Dublin 6/30/05 Overlapping Debt
Overlapping Debt Repaid with Property Taxes
Bay Area Rapid Transit District 1.758% $ 100,000,000 $ 1,758,000
Chabot-Las Positas Community College District 9.489% $ 89,275,849 $ 8,471,385
Dublin Joint Unified School District 99.827% $ 81,685,000 $ 81,543,685
Castro Valley Unified School District 0.0700% $ 72,145,000 $ 50,502
Livermore Valley Joint Unified School District 0.4390% $ 101,170,000 $ 444,136
East Bay Regional Park District 2.5670% $ 111,170,000 $ 2,853,734
City of Dublin 1915 Act Bonds 100.0000% $ 1,201,000 $ 1,201,000
Total overlapping debt repaid with property taxes $ 556,646,849 $ 96,322,442
Overlapping Other Debt
Alameda County General Fund Obligations 4.399% $ 611,306,000 $ 26,891,351
Alameda County Pension Obligations 4.399% $ 282,077,926 $ 12,408,608
Alameda County Superintendent of Schools Certificates of Participation 4.399% $ 1,285,000 $ 56,527
Alameda - Contra Costa Transit District Certificates of Participation 0.003% $ 19,855,000 $ 596
Chabot-Las Positas Community College District Certificates of Participation 9.489% $ 7,820,000 $ 742,040
Castro Valley Unified School District Certificates of Participation 0.070% $ 1,300,000 $ 910
Total Overlapping Other Debt $ 923,643,926 $ 40,100,032
COMBINED TOTAL DEBT $ 136,422,474
Notes:
For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by detennining the portion of another governmental unit's taxable
assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value. Overlapping
governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates
the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the
City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not imply that every
taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Source:
As reported by California Municipal Statistics, Ine.
132
City of Dublin
Legal Debt Margin Information
Last Ten Fiscal Years
Debt limit percentage
Fiscal Year
1997 1998 1999 2000
$ 1,638,949,549 $ 1,682,915,213 $ 1,900,437,061 $ 2,353,646,360
22,402,304 54,649,613 63,706,453 32,383,523
$ 1,661,351,853 $ 1,737,564,826 $ 1,964,143,514 $ 2,386,029,883
25% 25% 25% 25%
$ 415,337,963 $ 434,391,207 $ 491,035,879 $ 596,507,471
15% 15% 15% 15%
$ 62,300,694 $ 65,158,681 $ 73,655,382 $ 89,476,121
Assessed valuation
Add back exempted real property
Total assessed valuation
Conversion ratio
Converted assessed valuation
Debt limit
Total net debt applicable to limit:
General obligation bonds
Legal debt margin
$ 62,300,694
$ 65,158,681
73,655,382
89,476,121
Total debt applicable to the limit
as a percentage of debt limit
0.0%
0.0%
0.0%
0.0%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this
provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each
parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations
shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the
25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments
located within the state.
Source: City Finance Department
Excludes 1915 Act Bonds since they are not General Obligation Debt of the City of Dublin.
133
Fiscal Year
2001 2002 2003 2004 2005 2006
$ 3,004,986,989 $ 3,724,977,718 $ 4,308,405,185 $ 4,871,327,283 $ 5,507,782,154 $ 6,310,300,211
60,674,335 64,396,816 70,891,008 70,891,008 72,612,237 77,085,570
$ 3,065,661,324 $ 3,789,374,534 $ 4,379,296,193 $ 4,942,218,291 $ 5,580,394,391 $ 6,387,385,781
25% 25% 25% 25% 25% 25%
$ 766,415,331 $ 947,343,634 $ 1,094,824,048 $ 1,235,554,573 $ 1,395,098,598 $ 1,596,846,445
15% 15% 15% 15% 15% 15%
$ 114,962,300 $ 142,101,545 $ 164,223,607 $ 185,333,186 $ 209,264,790 $ 239,526,967
114,962,300
142,101,545
164,223,607
185,333,186
209,264,790
239,526,967
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
134
City of Dublin
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year Ended Personal Income Per Capita Unemployment Rank in Size of
June 30 City Population (in Thousands) Personal Income Rate California Cities
1997 25,544 $ 715,973 $ 28,029 2.90% 225
1998 26,725 787,292 29,459 2.60% 224
1999 28,707 906,395 31,574 2.40% 222
2000 32,519 1,100,963 33,856 2.00% 205
2001 32,570 1,252,838 38,466 1.70% 209
2002 33,520 1,279,525 38,172 2.60% 209
2003 35,545 1,343,174 37,788 4.00% 204
2004 38,330 1,478,886 38,583 4.00% 193
2005 39,931 1,633,977 40,920 3.40% 192
2006 41,907 1,777,192 42,408 3.00% 190
Source: State of California Department of Finance - Population Research Unit (population), City Finance Department
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135
City of Dublin
Property Value, Construction and Bank Deposits
Last Ten Fiscal Years
Fiscal Year Ended June Total Number of Commercial Residential
30 Permits Issued Construction Value Construction Value Bank Deposits *
1997 790 $ 6,855,980 $ 64,610,527 $ 611,507,000
1998 1020 29,159,270 83,205,153 641,921,000
1999 1552 93,428,185 135,438,240 684,749,000
2000 2521 107,242,721 180,258,804 715,313,000
2001 1828 113,618,557 155,286,401 809,281,000
2002 1015 63,476,079 123,149,627 900,670,000
2003 1157 46,448,163 178,361,169 980,220,300
2004 1154 18,575,621 242,563,776 488,343,000
2005 1275 56,481,612 283,817,542 566,441,000
2006 1199 96,389,754 207,862,999 N/A
Source: Findley Reports, Inc (as reported for bank deposits), City of Dublin Building Department Status Reports
(for Building Permit and Valuation Data)
* Bank Deposits represents the amount of cash deposits held by financial institutions
within the City of Dublin as reported by Findley Reports
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136
City of Dublin
Principal Employers
Current Year
Sybase Corporation
MicroDental Laboratories
County of Alameda
Dublin Unified School District
United States Government
Zeiss Meditec
Franklin Resources
AT&T
City of Dublin
Safeway
Source: Finance and Economic Development Divisions
Note: Current Information regarding number of employees was not available.
Information regarding Principal Employers in prior Fiscal Years was also not available.
137
City of Dublin
Full-time Equivalent City and Contract Government Employees by Function
Last Ten Fiscal Years
Full-Time, Part-time and Contract Employees as of Fiscal Year Ended June 30 of
1997 * 1998 1999 2000 2001 2002 2003 2004 2005 2006
General government
City Manager/City Clerk 3 3 3 4 4 6 6 6 6 6
Adminstrative Services 6 6 7 8 10 10 11 11 12 12
Central Services / Bldg Management 2 2 2 2 2 3 4 4 4 4
Public Safety:
Police 39 40 40 43 43 48 53 54 54 57
Fire * 29 29 30 30 31 31 40 41 41
Transportation
Public Works 4 5 5 5 6 6 7 7 7 7
Street Maintenance 6 6 6 6 6 6 7 9 9 10
Health and welfare
Housing 1 1 1 2 2
Culture and leisure services
Parks Community Services 8 9 9 11 11 14 14 14 16 16
Parks.jFacilities Maintenance 5 5 5 6 8 8 8 10 10 10
Parks/Facilities Management 1 1 2 2 2 2 2
Community development
Planning/Economic Development 11 11 12 14 15 15 15 15 17 17
Building 3 4 7 8 9 11 11 11 15 18
Engineering 4 6 7 14 13 13 14 14 14 14
Total 91 126 132 152 158 174 184 198 209 216
Source: City Finance Department
* For Fiscal Year 1996-1997, Fire Personnel were employed by a separate governmental entity
138
City of Dublin
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year Ended June 30 of
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Function
Police:
Calls for Service 38,236 39,116 35,981 39,976 46,970 50,613 52,708 49,379 48,388 46,197
Citations Issued 6,235 7,211 6,672 7,308 9,624 8,364 10,501 11,081 10,911 10,595
Arrests 1,076 1,224 1,506 1,344 1,272 1,418 1,376 1,614 1,631 2,020
Fire:
Emergency calls NjA 1,111 1,427 1,634 1,645 1,797 1,872 1,724 1,742 1,771
Inspections NjA 2,773 6,051 7,873 7,129 5,182 5,021 4,951 3,249 4,122
Building Plan Reviews and Consultations NjA NjA NjA 843 989 1,270 1,381 1,249 858 1,006
Public works:
Bike Path Maintenance (hours) 112 184 118 100 270 141 230 428 783 726
Street Sign Maintenance (number of signs) 277 285 299 326 317 211 643 308 353 435
Curb Painting (linear feet) 9,297 6,304 5,492 5,128 1,637 2,749 2,993 1,607 1,404 3,991
Replace Street Asphalt (square feet) 65,000 114,000 101,600 256,895 19,545 12,320 5,500 3,000 7,500 13,800
Street Sweeping (curb miles) 4,027 4,038 4,069 4,304 4,336 4,529 5,116 5,371 5,686 5,730
Parks and recreation:
Museum Visitors 580 593 425 420 1,012 793 300 900 800 1,350
Park Maintenance (Acres) 60 60 60 60 77 84 101 127 127 127
Afterschool Recreation (participantsj day) 81 112 115 128 126 134 140 128 129 138
Preschool Classes 176 180 171 171 177 176 214 268 224 285
Basketball Teams 290 290 352 360 397 445 476 536 547 580
Senior Center Average Daily Attendance 70 94 102 92 92 97 111 110 110 149
Community Development:
Planning Applications NjA NjA 53 54 44 56 78 71 73 72
Building Permits 1,019 1,020 1,552 2,521 1,828 1,429 1,617 1,639 1,837 1,842
Building Inspections 7,770 13,075 21,514 28,232 19,073 16,492 24,682 31,571 33,534 34,244
Source: City Finance Department
139
City of Dublin
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year Ended June 30 of
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Function
Public Safety:
Police Stations 1 1 1 1 1 1 1 1 1 1
Fire Stations 2 2 2 2 2 2 3 3 3 3
Public works:
Street Lights 1,797 1,797 1,904 2,173 2,383 2,504 2,872 2,958 3,469 3,752
Miles of Streets 60 60 60 63 63 65 81 81 81 81
Miles of Curbs 164 164 164 172 172 180 202 202 202 202
Traffic Signals 23 27 30 31 42 49 55 60 62 67
City Street Trees 2,927 2,927 2,927 3,174 3,174 4,585 5,148 5,401 5,955 6,084
City Landscape (acres) 21 21 21 22 22 33 38 38 43 45
Parks and recreation:
Number of Community Facilities 4 5 5 5 5 5 6 6 6 6
Number of City Parks 8 8 8 8 9 9 11 11 11 11
Acres of City Parks 60 60 60 60 77 84 109 109 109 109
Acres of Open Space 107 107 107 107 107 107 122 122 126 126
Source: City Finance Department
140
City of Dublin
Top 25 Sales Tax Producers
2005-2006
BUSINESS NAME
BUSINESS CATEGORY
Alameda County Auction
Arco AM/PM
Arlen Ness Enterprises
Barnes and Noble
Bed Bath & Beyond
Best Buy
Cal Steam East Bay
Carl Zeiss Ophthalmic Systems
Circuit City
Crown Chevrolet/ aids/Cadillac / Isuzu
Dublin Dodge/Nissan/V olkswagen/Hyundai
Dublin Honda
Dublin Toyota
Expo Design Center
Ford of Dublin
Mervyn's
Micro Porcelain Dental Lab
Safeway
Safeway Gas Sales
Stoneridge Motors
Sybase
T J Maxx
Target
Toys R Us
Tri Valley Buick Pontiac GMC
Used Automotive Dealers
Service Stations
Automobile Supply Stores
Specialty Stores
Home Furnishings
Radio/ Appliance Stores
Plumbing/Electrical Supplies
Health Services
Radio/ Appliance Stores
New Motor Vehicle Dealers
New Motor Vehicle Dealers
New Motor Vehicle Dealers
New Motor Vehicle Dealers
Lumber/Building Materials
New Motor Vehicle Dealers
Department Stores
Health Services
Grocery Stores Liquor
Service Stations
New Motor Vehicle Dealers
Office Equipment
Family Apparel
Discount Department Stores
Specialty Stores
New Motor Vehicle Dealers
Percent of Total City Sales Tax Paid By Top 25 Accounts = 56.56%
Note: State Law does not allow disclosure of the top ten sales tax providers to the City
Firms Listed Alphabetically
Period: April 2005 thru March 2006
Source: Hinderliter, de Llamas and Associates, State Board of Equalization
$15
Sales Taxes
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Fiscal Year
141
City of Dublin
Miscellaneous Statistical Data
June 30, 2006
Date of Incorporation
Form of Government
Employees (City and Contract)
Population
Area
Miles of Streets
Miles of Curbs
Signalized Intersections
Number of Street Lights
PARKS AND RECREATION:
Parks
Acres in Parks
Acres in Open Space
Number of Registered Voters
(As of November 2006)
EDUCATION:
I. Public
Elementary Schools
Middle School
High School
Continuation High School
II. Public School Enrollment:
December 2004
Source: City of Dublin and Dublin
February 1982 FIRE PROTECTION:
Council/Manager Number of Stations 3
208 Number of Fire Personnel 40
41,907 POLICE PROTECTION:
14.01 Sq. Miles Number of Stations 1
81.1 Number of Police Personnel 48
202
64
3,455 COMMUNITY FACILITIES:
Dublin Civic Center
Dublin Senior Center
11 Shannon Community Center
109.14 Dublin Swim Center
125.9 Heritage Center
Dublin Library
16,431
5
2
1
1
4,627
142
City of
Dub lin
,
r'"
Dublin, California
Recommendations to Management
For the year ended June 30, 2006
I C:':"'L
,,,,_':,k,
Caporicci & Larson
Certified Public Accountants
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Ic L
Caporicci & Larson
Certified Public Accountants
To the Honorable Mayor and Members of City Council
of the City of Dublin
Dublin, California
In planning and performing our audit of the basic financial statements of the City of Dublin
(City) for the year ended June 30, 2006, we considered the City's internal control to plan our
auditing procedures for the purpose of expressing our opinion on the financial statements and
not to provide assurance on internal control.
However, during our audit, we noted certain matters involving internal control and other
operational matters that are presented for your consideration. This letter does not affect our
report dated September 14, 2006, on the financial statements of the City. We will review the
status of these comments during our next audit engagement. Our comments and
recommendations, all of which have been discussed with management, are intended to
improve internal control or result in other operating efficiencies. We will be pleased to discuss
these comments in further detail at your convenience, to perform any additional study of these
matters, or to assist you in implementing the recommendations.
We wish to thank the members of the Finance Department and City management for their
assistance during our audit.
This report is intended solely for the information and use of the City Council, management,
and others within the City.
~.U-(. 1- &:u~
Oakland, California
September 14, 2006
Toll Free Ph: (877) 862-2200
Toll Free Fax: (866) 436--lJ927
Oakland
180 Grand Ave., Suite 1365
Oakland, California 94612
Orange County
':I Corporate Park, Suite 100
Irvine, California 92606
Sacramento
777 Campus Commons Rd., Suite 200
Sacnunento, California 95825
San Diego
4858 Mercury, Suite 106
San Diego, California 92111
City of Dublin
Recommendations to Management
For the year ended June 30,2006
Table of Contents
Page
A. Fraud Policies and Procedures ... ........ ....... ...................................... .,. ............... ............... ........ ......... 1
B. Status of Prior Year Observations - New Pronouncements.......................................................... 2
City of Dublin
Recommendations to Management
For the year ended June 30, 2006
A. FRAUD POLICIES AND PROCEDURES
Observation
We recognize that the City has administrative rules and procedures including personnel rules
that specify a requirement for all City Officials comply with all laws and regulations. Further
our audit did not detect any evidence of fraud. The City does not have detailed written fraud
policies and procedures. The policies and procedures would identify fraud risk areas and
provide guidelines for the City's staff on communicating, preventing and deterring fraud on all
levels.
Recommendation
We recommend that the City adopt and implement formal written fraud policies and
procedures to enhance awareness by City personnel of fraud risk areas.
Management Response
As noted by the Auditors the City has established personnel rules which clearly identify that a
violation of laws and regulations can result in disciplinary action. A more detailed
Administrative Policy is supportive of recent efforts by government agencies statewide to
clearly reinforce the importance of ethical business dealings by those serving the public. As
with other public agencies the City of Dublin has enacted the requirements of AB1234, which
requires Ethics Training biannually for specified officials.
Staff is currently drafting an Administrative Policy that communicates the City's standards and
assists in defining how to prevent and deter fraud. Once finalized, the policy will be
implemented by the City Manager and communicated to all employees.
1
City of Dublin
Recommendations to Management
For the year ended June 30, 2006
B. STATUS OF PRIOR YEAR OBSERVATIONS - NEW PRONOUNCEMENTS
Observation
The Governmental Accounting Standards Board (GASB) had issued GASB Statement No. 43,
Financial Reporting for Pas temp laymen t Benefit Plans Other than Pension Plans and GASB
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits
other than Pensions which the City has to implement in fiscal years ending June 30, 2008 and
2009 respectively. These statements will require the disclosure of the liability related to Other
Post Employment Benefits (OPEB).
GASB's financial reporting and accounting requirements allows the unfunded liabilities to not
be recorded, but to be amortized up to thirty years for OPEB plans. Although these unfunded
liabilities are not recorded and not presented on the face of the financial statements, these
amounts are disclosed in the Notes to the Financial Statements and in Required Supplementary
Information as required by GASB. In addition, these disclosures also present a description
about the Plans, actuarial assumptions used in the Plans, contributions actuarially required and
made, and a three year funding progress (or lack of progress) in the Plans.
Recommendation
We recommend that the City prepare for the implementation of these statements by obtaining
an actuarial study to determine the City's liability. In addition, the City should decide, by
Council action, whether the liability will be funded or if the City will continue to utilize the
pay-as-you-go method for these expenditures.
City Response
The City has been proactive in responding to planning for the requirements stated in GASB
Statement 45. In 2001 a Retiree Health Internal Service Fund has been established with initial
funding of $2.4 million. Annual contributions based on actuarial projections have been made
to accumulate funds required for the payment of these benefits. During Fiscal Year 2004-2005
the City obtained its second actuarial report calculating a projection of the required
contributions that the City must make in order to fully fund this liability. This information will
be useful in developing an implementation plan for GASB 45 with key milestones for decisions
in order to meet the required implementation for the fiscal year ending June 30, 2009.
Status
During the fiscal year ended June 30, 2006, the City implemented GASB Statement No. 45. The
City has not yet selected a trust arrangement to retain the assets for the Retiree Health
Obligation. Contributions for this purpose are being recorded in an Internal Service Fund for
Employee Benefits, with the intent that they will be transferred to a trust once one is selected,
which Staff expects to be reported as part of the 2006/2007 CAFR.
2
CITY OF DUBLIN
BUDGET CHANGE FORM
CHANGE FORM #
New Appropriations (City Council Approval Required):
Budget Transfers:
_2L- From Unappropriated Reserves
(If Other than General Fund, Fund No-
From New Revenues
From Budgeted Contingent Reserve (1080-799,000)
Within Same Department Activity
Between Departments (City Council Approval Required)
Other
Name:
Name: General Fund- Finance - Professional
Contract Services
AMOUNT
$16,500
Account #:
Name:
Account #: 001-10400-740-000
Name:
Account #:
Name:
Account #:
Name:
Account #:
Name:
Account #:
Name:
Account #:
Name:
Account #:
Name:
Account #:
Account #:
ASD/Fin Mgr
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Signature
REASON FOR BUDGET CHANGE ENTRY:
The City is need of an updated Actuarial Study in order to place assets designated for Retiree Medical costs into
an independent trust. When the 2006/07 Budget was prepared it was unknown as to what the requirements of
the trust would be. PERS announced its requirements in February 2007 and is in a position to begin acceptance
of funds. This will allow the City to fully implement Government Accounting Standards Board Stements 43
and 45 in Fiscal Year 200612007.
City Manager:
Date:
Signature
As approved at the City Council Meeting on: Date:
Mayor:
Date:
Signature
Posted By:
Date:
Signature
G;\OPEB. RETIREE MEDICALlbudget change fannBartel.doc
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