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HomeMy WebLinkAboutItem 4.13 CAFR Annual Report STAFF REPORT CITY CLERK File #310-30 CITY COUNCIL DATE:December 15, 2015 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Comprehensive Annual Financial Report (CAFR) and Annual Audit for Fiscal Year Ending June 30, 2015 and Supplemental Reports Completed by the Auditors Prepared by Colleen Tribby, Administrative Services Director EXECUTIVE SUMMARY: The City of Dublin has compiled and published its Comprehensive Annual Financial Report (CAFR), for the fiscal year ending June 30, 2015. This report includes financial statements prepared by City staff along with the audit prepared by Maze and Associates Accountancy Corporation (Maze), the independent auditors selected by the City Council. The CAFR is a report which encompasses information beyond minimum financial reporting requirements. The Auditors have provided a “clean opinion” based on their review. The report has also been reviewed by the City Council Ad-Hoc Audit Subcommittee. The Auditors have also completed the following five supplemental reports: 1) a compliance audit of Alameda County Transportation Measure B Funds; 2) a compliance audit of the Alameda County Transportation Commission Fund (ACTC-VRF) Program; 3) a compliance audit of Alameda County Transportation Measure BB Funds; 4) a compliance audit of the State of California Transportation Development Act (TDA) Program; and 5) a review of the City’s Annual Appropriations Limit Calculation. FINANCIAL IMPACT: Summarized financial information is discussed in this staff report, and Attachment 1 provides a guide to key information found in the CAFR. The full CAFR is included as Attachment 2. RECOMMENDATION: Staff recommends that the City Council receive and file the reports. Reviewed By Assistant City Manager ITEM NO. 4.13 Page 1 of 6 DESCRIPTION: The City of Dublin has compiled and published its CAFR for the Fiscal Year ending June 30, 2015. The CAFR (Attachment 2) includes audited financial statements reviewed by Maze and Associates Accountancy Corporation (Maze), the independent auditor selected by the City Council, and concludes the fourth year of audit services under a five-year agreement approved by the City Council on April 17, 2012. Ad-Hoc Audit Committee Review The auditors met with the City Council Ad-Hoc Audit Committee, comprising Vice Mayor Gupta and Councilmember Wehrenberg, on December 1, 2015 to review the results of the audit. The interaction of the auditors directly with representatives of the elected body is a key component to audit standards, and provides committee members an opportunity to discuss the report and ask questions of the auditors. The Committee concurred with Staff’s recommendation that the City Council receive the report. Overall, based on their testing and review, the auditors granted the City a “clean opinion” (see Attachment 2, pages 1 - 3), meaning that the City’s financial statements present fairly, in all material respects, the financial position of the City. Financial Overview Attachment 1 provides a guide to key elements contained in the CAFR. Some of the important financial results include: New Reporting Element – In FY 2014-15, the City implemented the Governmental Accounting Standards Board Statement 68 (GASB 68), which sets new accounting and financial reporting requirements for government employer plans administered through irrevocable trust. The result of the implementation was the booking of a net pension liability of $7.8 million, shown on the City’s Statement of Net Position (Attachment 2, page 24). Increased Total Net Assets - Net assets increased by $22.5 million, as shown in Table 1 below. This change is on an entity-wide basis, and includes both capital assets as well as restricted funds. Included in the Management Discussion and Analysis section of the CAFR is a discussion of the changes in Net Assets (See Attachment 2 pages 5 - 21). It is important to note that the amount reported as Total Net Assets includes: 1) $444.9 million (71.0% of total assets) in investments in capital assets (e.g. land, infrastructure, buildings, and equipment). These are not assets that are available for future spending. 2) $74.7 million (11.9% of the total assets) are assets subject to external restrictions on how they can be used, such as development impact fee funds. Page 2 of 6 TABLE 1: SUMMARY OF NET POSITION June 30, 2015 and 2014 Governmental Activities June 30, 2015June 30, 2014$ Change% Change Item Current and other assets 203,229,738 166,738,992 36,490,746 21.9% Notes receivable (See Note5) 9,632,631 10,320,132 (687,501) -6.7% OPEB asset (Note 12) (4,647) 35,889 (40,536)-112.9% Capital assets 450,582,357 451,658,172 (1,075,815)-0.2% Total assets 663,440,079 628,753,185 34,686,8945.5% Deferred Outflows of Resources 1,067,859 - 1,067,859N/A Current Liabilities 21,175,782 17,954,413 3,221,36917.9% Noncurrent Liabilities 13,939,534 6,542,008 7,397,526113.1% Total Liabilities 35,115,316 24,496,421 10,618,89543.3% Deferred Inflows of Resources 2,645,492 - 2,645,492N/A Net investment in capital assets 444,832,546 445,529,366 (696,820) -0.2% Restricted 74,738,219 60,808,540 13,929,679 22.9% Unrestricted 107,176,363 97,918,858 9,257,5059.5% (See Note 8 to Financials for Classification) Total net assets 626,747,129 604,256,764 22,490,3653.7% Memorandum on Internal Control (MOIC) (Attachment 3) The professional standards adhered to by the Auditors require them to record a formal process of communicating directly with the City Council. As part of the FY 2014-15 CAFR process, the auditors met with the City Council Ad-Hoc Audit Committee at the start of their field testing as well as at the conclusion of the audit to review the final report. The MOIC to the City Council is included as Attachment 3. The MOIC contains a description of new GASB requirements implemented by the City during the audit year, upcoming GASB requirements that are not yet effective, and discusses the status of prior-year audit recommendations. For the FY 2014-15 CAFR, the report did not contain any recommendations on process improvements. Designations of Fund Balances The City’s Fund Balance and Reserves Policy conforms to required standards enacted by the Governmental Accounting Standards Board (GASB). A listing of the FY 2014-15 year-end reserves established in accordance with this policy is shown on CAFR page 64 (Attachment 2). The following table summarizes the fund balances for all City funds: Page 3 of 6 TABLE 3: GOVERNMENTAL FUND BALANCE CHANGES TABLE 2: GOVERNMENTAL FUND BALANCE CHANGES June 30, 2015 and 2014 June 30, 2015June 30, 2014$ Change% Change General Fund 97,706,494 79,577,762 18,128,732 22.8% Affordable Housing Fund 13,607,857 10,064,299 3,543,55835.2% Capital Improvement Funds 50,385,192 41,339,587 9,045,60521.9% Other Governmental Funds 10,745,411 9,404,895 1,340,51614.3% Total Governmental Funds 172,444,954 140,386,543 32,058,41122.8% As shown above, General Fund Reserves totaled $97.7 million as of June 30, 2015: $21.3 million of that is available for cash flow purposes, equating to 4.0 months of budgeted operating expenditures in FY 2015-16. This is in accordance with the City Policy, which sets the cash flow goal at between two and four months of the budget. Additional Reports Prepared by Auditors In addition to the audit of the financial statements, the auditor engagement also included the completion of specialized reports. The five supplemental reports include: 1) A compliance audit of Alameda County Transportation Commission (ACTC) Measure B Funds; 2) A compliance audit of the ACTC Vehicle Registration Fee Program; 3) A compliance audit of the ACTC Measure BB Program; 4) A compliance audit of the State of California Transportation Development Act (TDA) Program; 5) A review of the City’s Annual Appropriations Limit Calculation. The City did not meet the threshold of $500,000 in expenditures of federal funds in FY 2014-15, and therefore was not required to complete a Federal Grant – Single Audit Report. The following is a brief summary of each supplemental report. ACTC Measure B Funds Report (Attachment 4): The Alameda County Transportation Commission provides local funding via two local programs: 1) Local Street Improvements; and 2) Bicycle and Pedestrian Improvements. During FY 2014- 15, the following projects were funded by Measure B: 1) Bicycle Master Plan Program Implementation and update of 2007 Bikeway and Pedestrian Master Plan; 2) Amador Valley Boulevard Improvements; 3) Street Slurry Seal Programs; and 4) Street Overlay Program. The compliance audit found that, based on the information reviewed and presented, the expenditures were materially in compliance with the program requirements. As of June 30, 2015, the Local Streets fund balance of $534,805 is assigned to a Capital Reserve for the continued street improvement projects, and the Bike / Pedestrian fund balance of $132,039 is restricted to the appropriate related bike and pedestrian program improvements. Page 4 of 6 ACTC Vehicle Registration Fee Report (Attachment 5): The City of Dublin uses a Special Revenue Fund to account for the funds collected through the ACTC’s Vehicle Registration Fee. The goal of the program is to sustain the County’s transportation network through a distribution of the funds throughout the County on successive five-year cycles. As of June 30, 2015, the ACTC VRF fund had a balance of $174,188 in restricted funds. The FY 2014-15 Budget appropriated funds from this source to support a portion of the maintenance costs for citywide traffic signals upgrades. ACTC Measure BB Report (Attachment 6): Alameda County Measure BB was approved by the voters in November 2014, with 70% of the vote. The fee is expected to generate about $30 billion over the next 30 years funded by an additional one-half cent sales tax to be used for transportation related expenditures. The program includes four categories of projects: 1) Transit; 2) Affordable Transit for Seniors and People with Disabilities; 3) Local Streets and Roads; and 4) Bicycle and Pedestrian Path and Safety. As of June 30, 2015, the Measure BB Fund had a restricted fund balance of $72,149 for Local Streets and Roads, and $24,352 restricted for Bicycle and Pedestrian improvements. There were no expenditures of these funds in FY 2014-15. TDA Funds Report (Attachment 7): TDA grants are granted by the State and distributed through the Metropolitan Transportation Commission (MTC) which is the agency responsible for allocation of duns to eligible claimants within the greater San Francisco Bay area. The TDA grants allocated to the City of Dublin are for pedestrian and bicycle pathway improvement projects. During FY 2014-15, $150,043 was spent on the Accessible Pedestrian Signal Retrofit Project, bringing the fund balance to zero. As of June 30, 2015, the remaining grant funding is $148,311, which has been awarded to the City and will be received as expenditures happen. Appropriation Limit Schedule Report (Attachment 8): State law requires the adoption of an Appropriations Limit (“Limit”) which must be included in the Budget document. The City Council adopts the Limit by resolution and it is adjusted annually based on factors establish in State Law. The Limit applies only to appropriations that are funded by “proceeds of taxes.” The Limit for the City of Dublin is substantially more than the amount of revenue generated from taxes. The Auditors reviewed the calculation used to develop the $270,028,591 Limit as presented in the FY 2015-16 Budget. There were no exceptions noted in the findings. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of the report was sent to Katherine Yuen, Partner Maze and Associates. Page 5 of 6 ATTACHMENTS: 1. Summary – Key Information Comprehensive Annual Financial Report for the Year Ended June 30, 2015. 2. City of Dublin Comprehensive Annual Financial Report – Fiscal Year 2014-15 3. Memorandum on Internal Control and Required Communications for the Year Ended June 30 2015 4. Alameda County Transportation Commission Measure B Funds (Street and Bicycle – Pedestrian) Report 5. Alameda County Transportation Vehicle Registration Funds (VRF) Report 6. ACTC Measure BB Program Report 7. State of California Transportation Development Act (TDA) Program Report 8. Appropriation Limit Schedule Report Page 6 of 6 e 1 , . • - ,41.iti,,,•,,,_ ,. _ ,, , )tiallhl f 7 'i , T. *.i43,'-e ,,,,,,-;.444 1 Mri - 1 0 1_,. = 1 V --.4: -- - _01.111 . I,.• ,■ 1 _ _ . ,.. • .: I.%FL 1 • , 1 i .11 -— .7 L ILI i : L ..... - -.... •.r. , -- 3W.E. 1 4 i7 a • I i 11.2 1 , --401111■11111. ' N--- -----)%/ . , 19 ,!!../am ■404 c,2 \ I \\ - ( '>- -----s. City of Dublin CALIFORNIA Dublin Wild Maeda Clly 'I'll, 2011 Comprehensive Annual Financial Report Fiscal Year ended June 30, 2015 CITY OF DUBLIN,CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30,2015 Prepared by ADMINISTRATIVE SERVICES DEPARTMENT This Page Left Intentionally Blank INTRODUCTORY SECTION This Page Left Intentionally Blank CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30,2015 I INTRODUCTORY SECTION: I Table of Contents i Letter of Transmittal v GFOA Certificate of Achievement xi Principal Officers xii Organizational Chart xiii FINANCIAL SECTION:I Independent Auditor's Report 1 Management's Discussion and Analysis 5 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position 24 Statement of Activities 26 Fund Financial Statements: Governmental Funds: Balance Sheet 30 Reconciliation of the Governmental Funds-Balance Sheet with the Statement of Net Position 33 Statement of Revenues,Expenditures,and Changes in Fund Balances 34 Reconciliation of the Net Change in Fund Balances-Total Governmental Funds with the Statement of Activities 36 Statement of Revenues,Expenditures and Changes in Fund Balance—Budget and Actual: General Fund 37 Affordable Housing Special Revenue Fund 38 i CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30,2015 FINANCIAL SECTION(Continued): Proprietary Funds: Statement of Net Position 40 Statement of Revenue,Expenses and Changes in Fund Net Position 41 Statement of Cash Flows 42 Fiduciary Funds: Statement of Fiduciary Net Position 44 Notes to Basic Financial Statements 45 Required Supplemental Information: Schedule of the Plan's Proportionate Share of the Net Pension Liability and Related Ratios 82 Schedule of Contributions 83 Other Post-Employment Benefits-Schedule of Funding Progress 84 Supplemental Information: General Fund-Budget Versus AduaL Schedule of Budget Versus Actual Revenue by Sources 88 Schedule of Budget Versus Actual Departmental Expenditures 92 Budgeted Major Governmental Funds Other than General Fund and Special Revenue Funds: Schedules of Revenues,Expenditures and Changes in Fund Balance—Budget and Actual: General Improvements Projects Capital Projects Fund 94 Community Improvements Projects Capital Projects Fund 95 Parks Projects Capital Projects Fund 96 Streets Projects Capital Projects Fund 97 Public Facilities Impact Fees Capital Projects Fund 98 Fire Impact Fees Capital Projects Fund 99 Traffic Impact Fees Capital Projects Fund 100 Dublin Crossing Contribution Capital Projects Fund 101 ii CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30,2015 I FINANCIAL SECTION(Continued): Non-major Governmental Funds: Combining Balance Sheets 108 Combining Statements of Revenues,Expenditures,and Changes in Fund Balances 114 Schedule of Revenues,Expenditures,and Changes in Fund Balances-Budget and Actual 120 Internal Service Funds: Combining Statements of Net Position 152 Combining Statements of Revenues,Expenses and Changes in Fund Net Position 154 Combining Statements of Cash Flows 156 Fiduciary Funds: Statement of Changes in Assets and Liabilities—All Agency Funds 160 I STATISTICAL SECTION: I Net Position by Component 164 Changes in Net Position 166 Fund Balances of Governmental Funds 168 Changes in Fund Balances of Governmental Funds 170 Assessed Value of Taxable Property 173 Direct and Overlapping Property Tax Rates 174 Principal Property Taxpayers 176 Property Tax Levies and Collections 177 Ratio of Outstanding Debt by Type 178 Direct and Overlapping Debt 179 Legal Debt Margin Information 180 111 CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30,2015 STATISTICAL SECTION(Continued): I Demographic and Economic Statistics 182 Property Value,Construction and Bank Deposits 183 Principal Employers 185 Full-time Equivalent City and Contract Government Employees by Function 186 Operating Indicators by Function/Program 188 Capital Assets Statistics by Function/Program 190 Top 25 Sales Tax Producers 192 Miscellaneous Statistical Data 193 iv December 15,2015 DUBLINHonorable Mayor and Members of the City Council: CALIFORNIA Y tY THE NEW AMERICAN Presented with this transmittal is the City of Dublin(City)Comprehensive Annual BACKYARD Financial Report (CAFR) for the year ended June 30, 2015. The information in this Comprehensive Annual Financial Report is prepared in accordance with Generally Accepted Accounting Principles (GAAP) as established by the Governmental Accounting Standards Board(GASB). The responsibility for the accuracy and fairness of this report rests with the City. Management Staff are responsible for preparing a complete report which is based upon reliable information. Maze and Associates Accountancy Corporation, a firm of licensed public accountants, has issued an unqualified ("clean") opinion on the City of Dublin's financial statements for the year ended June 30, 2015. The independent auditor's report has been included in this Comprehensive Annual Financial Report. This letter of transmittal is designed to assist with an individual's review of the City's financial statements. Specifically it is intended to offer the reader useful information in assessing the economic conditions impacting the City of Dublin. It also complements the separate Management's Discussion and Analysis (MD&A) narrative section, which provides financial highlights of the City and additional analysis of trends reported as part of the financial statements. The MD&A is located immediately following the report of the independent auditors. CITY PROFILE The City of Dublin was incorporated in 1982 and is located in Alameda County, a City Council growing area in the eastern portion of the San Francisco Bay Area. In 2011, the 925.833.6650 City was named an "All-America City" by the National Civic League, one of the City Manager 925.833.6650 nation's oldest and most prestigious civic organizations. In 2012, the City Community Development celebrated its 30th anniversary as an incorporated city. 925.833.6610 Economic Development The City provided for a permanent staffing level of approximately 87 full-time 925.833.6650 equivalent City employees in the FY 2014-15 budget cycle, and budgeted for an Finance/IT 925.833.6640 additional 75 to 100 temporary'employees during the summer recreational season. Fire Prevention The City serves an estimated population of 51,784 covering a land area of 14.91 925.833.6606 square miles. The City's strategic location offers opportunities for employers, Human Resources retail outlets, and high quality residential neighborhoods. 925.833.6605 Parks&Community Services The City operates under the Council-Manager form of government. Policy making 925.833.6645 Police and legislative authority are vested in the City Council, which consists of an 925.833.6670 elected Mayor, who serves a two-year term, and four Council members each Public Works elected to a four-year term. The City Council is responsible for the City's 925.833.6630 ordinances, operating resolutions, adoption of the annual budget, hiring the City Manager and City Attorney and confirming the appointments made by the Mayor 100 Civic Plaza to commissions and committees. The City Manager is responsible for the Dublin,CA 94568 following activities: implementing the policies, ordinances, and directives of the P 925.833.6650 F 925.833.6651 V www.dublin.ca.gov City Council; overseeing the day-to-day operations of the City; and appointing the Directors of the City's departments. Current City services include: City Manager; Human Resources; Administrative Services (Finance/Information Systems); City Attorney; City Clerk; Police; Fire; Community Development (Building/Planning/Housing); Economic Development/Public Information; Parks and Community Services; and Public Works (including Engineering and Maintenance). The City contracts with both public agencies and private firms to provide a variety of key services including: Building Inspection; Fire; Police; and Public Works maintenance. A total of 127.18 FTE contract employees were included in the City budget in FY 2014-15. HIGHLIGHTS The City of Dublin is located at the intersection of Interstates 580 and 680 approximately 35 miles east of San Francisco. The City delivers a broad range of community services and has a wide range of housing types available to meet the demands of various employers throughout the region. Over the past several years residential builders and developers have constructed a variety of new housing options, which include a mix of transit-oriented development adjacent to the City's two Bay Area Rapid Transit (BART) stations, as well as single family homes and condominium / townhome developments. The relatively close proximity to additional job centers and colleges and universities in the Bay Area create an attractive environment. Much of the recent growth in the community, which is now in its final phases of completion, was planned in the voter-approved 1994 Eastern Dublin Specific Plan. This vision has allowed a strong foundation and quality neighborhoods and public facilities to be built citywide. Equally exciting,new developments in the Downtown Dublin Specific Plan area and throughout the rest of the community have brought a wonderful range of new retail, office and transit-oriented residential development that will support a high quality of life in Dublin. The City remains committed to working to attract new quality investment and services to our community. New development over the past decade has had positive budgetary impacts, allowing the City to make significant investment in our community-serving facilities, such as our excellent parks. While careful financial stewardship has put Dublin in a strong fiscal position, it is important that we look to ensure the stability of the community's long-term fiscal condition so that we may continue to provide high-quality services. Key City accomplishments during FY 2014-15 include the following: Parks& Community Services • Celebrated the 32nd Annual St. Patrick's Day Festival, which drew an attendance of approximately 85,000. • Held the 3rd annual"splatter"event with an estimated 15,000 in attendance. • Coordinated the "Live Healthy Dublin — Activ-8 Challenge" with 37 teams, comprised of 143 participants. • Began construction of the Emerald Glen Recreation and Aquatic Complex. • Updated the Parks and Recreation Master Plan to meet parkland and facility requirements. • Completed design for Fallon Sports Park — Phase 2, which includes two lighted synthetic turf soccer fields, a lighted 90-foot baseball diamond, a bocce ball court,and other amenities. vi Public Works and Environmental Services • Installed Accessible Pedestrian Signals for the visually-impaired at four key intersections in the City, and improved pedestrian safety and accessibility in a targeted area by adding Rectangular Rapid Flashing Beacon(RRFB)pedestrian warning devices. • Installed buffered bicycle lanes along Village Parkway to enhance safety and comfort for bicyclists. • Amended the Construction& Demolition Ordinance to increase the diversion requirement from 50%to 65%for remodels and 75%for new construction. • Implemented the Green Shamrock Business Recognition Program. • Worked with Dublin San Ramon Services District to implement the Governor's mandate to reduce potable water consumption in new development through enhanced microspray irrigation and improved use of recycled water. • Adopted a new ordinance declaring that e-cigarettes be regulated in the same manner as tobacco products and smoking pollution. • Coordinated the 31st Annual "Dublin Pride Week" festivities, including a Volunteer Day that brought out 600 volunteers to clean up targeted areas in Dublin, a Bay Friendly Gardening/Water Conservation Workshop, a food drive, and a household hazardous waste collection event. • Coordinated the 6th Annual"Creek Clean-Up"event. • Continued to implement a long-term Trash Reduction Plan in order to reduce litter by 70%in the City's storm drains, creeks, and waterways by the end of 2017. Administrative Departments • Adopted a new marketing plan and initiated development of a new website and mobile app,to promote better communication with residents and prospective businesses. • Graduated the 10th class of students from Inside Dublin, a program designed to give residents an inside look at municipal operations, and encourage community involvement. • Completed an Information Technology Master Plan that will assist the City in prioritizing IT infrastructure and software upgrade projects over the next five years. • Implemented a new and enhanced Geographic Information System(GIS)portal. Economic Development • Provided permitting assistance to a range of new businesses, including shops and restaurants at Persimmon Place,Village Parkway, and Fallon Gateway. • Expanded social media with the "Discover Dublin for the Holidays Campaign," and participated in a Restaurant Month promotion with Visit Tri-Valley. • Created Startup Dublin to assist technology entrepreneurs. Community Development • Provided a $6.4 million loan for the 66-unit Veterans Family Housing Development in Downtown Dublin. The transit-oriented development will provide much needed housing targeted to veterans and their families. • Adopted a State-mandated General Plan Housing Element Update to ensure a balanced approach to residential development that addresses the need for affordable senior and workforce housing for a diverse community. • Processed several General Plan amendments to reduce density in long-planned developments,resulting in quality residential neighborhoods while preserving sensitive open space and reducing long-term impacts on area schools. • Expanded online permit services to include inspection scheduling and plan check tracking so residents and businesses can easily access the status of their building permits with more than 80% of inspection scheduling handled online. • Revised and updated the City's First-Time Homebuyer Program and the Below Market Rate Program to be more useful to program participants and ensure the program is sustainable. vii Police Services • Purchased 55 personal worn body cameras to outfit all sworn staff. • Purchased two new police evidence vehicles, one new patrol vehicle, and four unmarked detective/administration vehicles. • Operated a successful Holiday Crime Suppression Unit during the holiday season, significantly decreasing the amount of property crimes. • Facilitated a Citizens Academy and Youth Academy for 40 community participants. • Welcomed two new Crime Prevention Sheriff Technicians to lead the City's ongoing efforts to keep neighborhoods safe. • Along with Fire Services, conducted the annual Independence Day Special Operation with the goal of controlling the use of illegal fireworks and the protection of public safety. • Participated in the National Drug "Take-Back Initiative" event, resulting in 210 pounds of prescription drugs collected. • Facilitated the Drug Abuse Resistance Education (DARE) program to Dublin 5th graders with 735 graduates. • Conducted two Tobacco Permit Compliance Operations, checking 36 locations to ensure businesses are not selling tobacco products to minors. Fire • Opened the Alameda County Fire Department Fleet Maintenance Facility(July 2014), which is used to service 460 apparatus, including apparatus from other fire departments in the region. • Improved emergency response by activating automatic vehicle locators, which ensures that the closest available unit responds to emergencies. • Offered Community Emergency Response Training(CERT)to prepare residents for disasters. Also in FY 2014-15, the City received numerous awards and honors for its accomplishments in various areas of community services and improvements. These include the following: • Top awards for Emerald Vista (developed in partnership with Eden Housing), including: California League of Cities' "Helen Putnam Award" for Housing Programs and Innovation; "Jack Kemp Award" from the Urban Land Institute; and"Red Tape to Red Carpet—Excellence in Workforce Housing"from the Silicon Valley Leadership Group. • 2014 Spotlight Awards from California League of Cities: Platinum Spotlight Award for 31.2% Energy Savings; Gold Spotlight Award for 12% Natural Gas Savings; Platinum Spotlight Award for Sustainability Best Practice Activities. • Two awards of excellence in budgeting: one from the Government Finance Officers Association (GFOA) and one from the California Society of Municipal Finance Officers (CSMFO) for the FY 2014-15 and FY 2015-16 Budget. • "A" Grade from the American Lung Association. • Recognition by the Metropolitan Transportation Commission Regional Streets and Roads Program for achievement in pavement maintenance,with Alameda County's highest pavement condition index. • Two awards from the California Association of Local Economic Development (CALED) for Startup Dublin and the Small Business Toolkit. • Designation of"Best City in Northern California for Young Families"by NerdWallet.com. FINANCIAL OUTLOOK Growth in the City of Dublin's major revenue streams continues to reflect a healthy and thriving community. Following a 2% loss in overall Assessed Valuation (AV) during the recession, the City went from a total AV of$8.4 billion in FY 2011-12 to $11.1 billion in FY 2014-15, owing to real estate values viii that have been restored, higher sales prices, and new developments coming on line. The City's property tax revenues, which made up 31% of total revenues in FY 2014-15, have grown 1%, 6%, 7%, and 16% over the last four years. Sales tax revenue also continues to grow, with an average increase of 10%per year over the last four years, and making up 20% of total revenues in FY 2014-15. While the City experienced growth in nearly all sectors, Autos and Transportation, General Consumer Goods, and Restaurants and Hotels showed the largest growth. Nine of the top 25 sales tax producers in FY 2014-15 were car dealerships, remaining consistent with the last several years. The Persimmon Place project (including Whole Foods, Nordstrom Rack and Home Goods) opened in early 2015, with the first full year of tax receipts expected in FY 2015- 16. The City's Sales Tax Reimbursement Program, which offers a temporary tax incentive to eligible companies,has been instrumental in bringing in new retailers, and is continuing in FY 2015-16. Development-related revenue is the third largest revenue stream to the City, making up 11% of the total budget in FY 2014-15. Building permit revenue and development services revenue (planning and engineering services) increased a combined 3% over FY 2013-14, but the yearly increases since the recession have been extremely varied: since FY 2010-11, development revenue increased 52%, 18%, 7%, and 3%, in the respective years. As a high level of development continues,the City Council has recognized these funding sources as one-time sources, versus the ongoing revenues that sustain the fundamental City operations. It is also crucial to differentiate ongoing expenditures, which are linked to departmental activities, from total expenditures,which include transfers out to CIP projects. Those transfers are typically funded by the planned use of Committed Reserves, with one-time sources like Community Benefit Payments, or through the special designation of surplus reserves, as approved by the City Council. As ongoing costs rise, City operations will depend upon a similarly growing ongoing revenue stream, and one- time sources should continue to be used in funding the CIP, or to shore up contingency reserves for future needs. While FY 2014-15 finished with a General Fund surplus of roughly $19.5 million (before transfers out to capital projects), it is long-term fiscal sustainability that remains at the forefront of budget discussions. Despite the continued growth in property and sales tax,there will be a decrease in development revenues as major projects are completed and the City gets closer to its build out. These factors, combined with projected increases to operational expenditures, could result in deficit spending in the General Fund by FY 2020-21. In the next few years, the City of Dublin will begin the transformation from a growing city to a maintenance city: that is, as the community matures, new development activity slows, and the associated funding sources decline, the City will need to shift its focus to maintaining its assets, infrastructure, and services in a way that is sustainable. FINANCIAL PLANNING AND POLICIES The City Council adopted a 10-Year Strategic Plan, which is updated every two years. Five specific strategies were identified to establish the framework and overarching policy focus for the delivery of public services to the community. The Budget document has a section containing the Strategic Plan and Goals and Objectives. Adjustments to programs presented by the City Manager in the Budget document were tied to the prioritization of elements within the Strategic Plan. The last Strategic Planning meeting was held March 7, 2015, when the City Council discussed the general assumptions used in the City's 10-Year Financial Forecast. A key outcome of the Strategic Planning meeting was the City Council's decision to identify long-term fiscal sustainability as the key strategic initiative and to direct Staff to make sure fiscal sustainability becomes a major factor in future decisions, including the FY 2015-16 budget and beyond. ix The City adopts a balanced operational budget in accordance with City policies,and uses a two-year budget format. The City Council adopts a final budget and appropriates funds in advance of the July 1st start of the new Fiscal Year. In terms of major capital investments, constructed with Impact Fees, the City has operated utilizing a pay-as-you-go philosophy. The City has typically operated with no debt fmancing, though an equipment lease was initiated in FY 2012-13 to fund various energy-efficient improvements, including solar panels at City facilities, which have reduced ongoing utility costs and will eventually fully offset the cost of the project. This project aligned with City Council strategy focused on supporting environmental sustainability. The financial policies currently used for budgeting also provide for the use of Internal Service funds to assure resources are available to finance the replacement of public safety vehicles and apparatus, computer systems, and some building components. The importance of being prepared to address long-term needs has always been a key principle supported by the City Council. The City has also proactively financed contributions to fund long-term retiree medical liabilities. The City Council adopted a policy in accordance with GASB Statement 54, which establishes the components of Fund Balance within the General Fund and how changes as the result of operations are to be administered. The policy continues to support the long-term philosophy to be prudent and maintain funds for future liabilities which may be both known as well as unknown. The City Council has also set aside funds for specific projects and activities with the understanding that some goals require a long-term view and incremental funding over a number of years before the project is undertaken. AWARDS The Government Finance Officers' Association (GFOA) has recognized the City of Dublin for its Comprehensive Annual Financial Report covering the period ending June 30, 2014. A copy of the award from this entity is included in this report. This award represents the 24rd consecutive year that the City's report was recognized by the GFOA. In order to be recognized,the City was required to produce an easily readable and efficiently organized report. The report must also meet the standard for generally accepted accounting principles and legal requirements. ACKNOWLEDGEMENTS The preparation of this report was made possible by the collaborative efforts of staff in the Administrative Services Department and other departments. A special thanks and acknowledgement goes to Yuliana Tjeng, Senior Accountant, and Lisa Hisatomi, Assistant Director of Administrative Services, as well as the professional staff at Maze and Associates. Of course the ultimate thanks are afforded to the Mayor and City Council in their support and commitment to have the City's financial reporting strive for excellence. Sincerely, 7Z. 4( ZL _r7 Christopher L.Foss Colleen Tribby City Manager Director of Administrative Services x Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Dublin California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2014 *or"0404.0 Executive Director/CEO xi CITY OF DUBLIN PRINCIPAL OFFICERS Fiscal Year 2014/2015 Mayor David Haubert Vice Mayor Councilmember Abe Gupta Kevin Hart Councilmember Councilmember Don Biddle Doreen Wehrenberg ADMINISTRATION PERSONNEL City Manager Chris Foss Assistant City Manager Linda Smith City Attorney John Bakker Administrative Services Director Colleen Tribby City Clerk Caroline Soto Chief of Police Dennis Houghtelling Community Development Director Luke Sims Economic Development Director Lori Taylor Fire Marshal Bonnie Terra Human Resources Director Julie Carter Parks&Community Services Director Paul McCreary Public Work Director Gary Huisingh xii Organizational Chart Citizens of Dublin City Council City Attorney City Manager Assistant City Manager Police Public Works — Services Parks& Economic Community — Development - Services Human Community Resources - Development Fire Services F- City Clerk — Non Administrative Departmental - Services - xiii This Page Left Intentionally Blank NMAZE & ASSOCIATES INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council of the City of Dublin ,California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the City of (City), California, as of and for the year ended June 30, 2015, and the related notes to the financial statements which collectively comprise the City's basic financial statements as listed in the Table of Contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of these financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. T 925.930.0902 Accountancy Corporation F 925.930.0135 3478 Buskirk Avenue,Suite 215 E maze®mazeassociates.com Pleasant Hill,CA 94523 1 w mazeassociates.com Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities,each major fund,and the aggregate remaining fund information of the City, as of June 30,2015,and the respective changes in the financial position and cash flows,where applicable,thereof and the respective budgetary comparisons listed as part of the basic financial statements for the year then ended in conformity with accounting principles generally accepted in the United States of America. Emphasis of Mailers The city adjusted its beginning balances of net position in governmental activities as discussed in Note 1M to the financial statements Management adopted the provisions of the following Governmental Accounting Standards Board Statements,which became effective during the year ended June 30, 2015 that had material effects on the financial statements,as discussed in Note 1L to the financial statements. • Statement No.68,Accounting and Financial Reporting for Pensions—an amendment for GASB Statement No. 27. • Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB No 68. The emphasis of these matters does not constitute a modification to our opinions. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management's Discussion and Analysis, Schedule of Changes in the Net Pension Liability and Related Ratios, Schedule of Contributions and Other Post-Employment Benefits Schedule of Funding Progress be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America,which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements,and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements as a whole. The Introductory Section, Supplemental Information, and Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis and are not required parts of the financial statements. 2 The Supplemental Information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the fmancial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplemental Information is fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic fmancial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 20, 2015, on our consideration of the City's internal control over fmancial reporting and on our tests of its compliance with certain provisions of laws, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over fmancial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over fmancial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. • 4030(444. V CI Pleasant Hill,California November 20,2015 3 This Page Left Intentionally Blank Management's Discussion and Analysis (MDA)June 30,2015 As management of the City of Dublin (City), we offer readers of the City's fmancial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2015. Please read this overview in conjunction with the accompanying letter of transmittal and the accompanying basic financial statements. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements,which are comprised of three components: • Government-wide Financial Statements — These include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the City as a whole and about the overall financial condition of the City in a manner similar to a private-sector business. • Fund Financial Statements — These statements provide additional information about the City's major funds, including how services were financed in the short term and fund balances available for financing future projects. • Notes to the Financial Statements —The notes provide additional detail that is essential to a full understanding of the information provided in the Government-wide and Fund Financial Statements. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees. GOVERNMENT-WIDE FINANCIAL STATEMENTS-DESCRIPTION These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All current year's revenues and expenses are accounted for regardless of when the cash is paid or received. These statements report the City's net position and changes to the net position during the fiscal year. Net position - the difference between assets and liabilities - are one way to measure the City's financial position.Over time, increases or decreases in the net position are among indicators used to assess whether the financial condition of the City is improving or deteriorating. However, it is also important to consider other nonfinancial factors, such as: changes in the City's property tax values, sales tax outlets, and the condition of the City's infrastructure (i.e. parks and streets),to accurately assess the overall health of the City. The Government-wide statements present information about the City's activities, all of which are considered governmental in nature. These include services provided for police, fire, community development, streets, and culture and leisure. These services are funded from monies received from property, sales and other taxes, direct charges for services provided, grants, contributions from other agencies,and impact fees collected from new development. 5 w mow GOVERNMENT-WIDE FINANCIAL STATEMENTS—ANALYSIS Table 1 provides and analysis summarizing the year to year change in the Government-Wide net assets reported for the City of Dublin. By definition the "net assets" are represented as the difference between total assets and total liabilities. TABLE 1: SUMMARY OF NET POSITION June 30,2015 and 2014 Governmental Activities June 30,2015 June 30,2014 $Change % Change Item Current and other assets 203,229,734 166,738,992 36,490,742 21.9% Notes receivable(See NoteS) 9,632,631 10,320,132 (687,501) -6.7% OPEB asset(Note 12) - 35,889 (35,889) N/A Capital assets 450,582,357 451,658,172 (1,075,815) -0.2% Total Assets 663,444,722 628,753,185 34,691,537 5.5% Deferred Outflows of Resources 1,067,859 - 1,067,859 N/A Current liabilities 21,175,785 17,954,413 3,221,372 17.9% Noncurrent liabilities 13,944,180 6,542,008 7,402,172 113.1% Total Liabilities 35,119,965 24,496,421 10,623,544 43.4% Deferred Inflows of Resources 2,645,492 - 2,645,492 N/A Net investment in capital assets 444,832,546 445,529,366 (696,820) -0.2% Restricted 74,738,217 60,808,540 13,929,677 22.9% Unrestricted 107,176,361 97,918,858 9,257,503 9.5% (See Note 8 to Financials for Classification) Total Net Assets 626,747,124 604,256,764 22,490,360 3.7% As illustrated in the above table, the City's net position increased by $22.5 million (3.7%) during FY 2014-15.This is primarily due to the following: • Total assets increased approximately $34.7 million, due primarily to increases in cash and investments, which are part of current assets. Cash and Investments in the General Fund increased approximately $18.7 million, due to the net effect of increased revenue (by $8.2 million) and decreased expenses (by $7.7 million) as compared to last fiscal year. The increased revenue reflects gains in Property and Sales Taxes,development-related revenue,and recreation program revenues,all of which trend with the health of the local economy and the continued housing development in the City. Prior year General Fund expenditures were significantly higher due to spending on the Maintenance Yard and Public Safety Complex projects, which were completed early this fiscal year. The Affordable Housing Fund received a combined total of $3.6 million in payments of notes receivable and large development in-lieu fees that also contributed to higher cash and investments. Cash and investments in the Public Facility Impact Fees increased a total of$3.5 million, and Traffic Impact Fees increased approximately $4.6 million, both trending with the increased level of development the City experienced during the fiscal year. 6 • Total liabilities also increased in FY 2014-15, with a total change of$10.6 million from the prior year. Current liabilities primarily represent obligations outstanding for current operations (accounts payable), capital projects(such as retention payable), deferred revenue, and deposits held.The overall increase of$3.2 million was due to two large cash bonds from developer during the year.Noncurrent liabilities increased significantly due to the booking of the City's Net Pension Liability of $7.8 million, in accordance with implementation of the new Governmental Accounting Standard (GASB 68&71 -see Note 10). • The City's $444.8 million in capital assets represents 70.9% of the total reported net assets, staying relatively consistent with the prior year. Capital asset investments include the City's investments in land, infrastructure,buildings, and equipment.As the City uses these capital assets to provide current services to residents, the assets are not available for future spending. The change in annual capital assets reflects both the addition of capital assets (including construction in progress), less accumulated depreciation. • Restricted assets, including impact fee funds and grant funds, are resources that have external restrictions on their use. In FY 2014-15 the City's restricted assets increased by $13.9 million, due primarily to the collection of impact fees for specific development projects, notably in the Public Facility Fees Fund and Traffic Impact Fees Fund, as well as the Public Art Fund (Special Revenue). These funds are restricted to specific capital improvement use. Approximately $107.2 million of the City's total assets(an increase of$9.3 million over the prior year)are unrestricted and may be used to meet the City's ongoing obligations to the community and to creditors.The bulk of unrestricted assets are attributable to portions of the General Fund balance that are already committed and assigned for specific purposes,in accordance with the City's Fund Balance and Reserves Policy. 7 GOVERNMENTAL ACTIVITIES, Table 2 below provides a summary of major program expense categories,program revenues used to fund specific expenses, and general City revenues available for funding all City programs. The information presented here provides detail behind the numbers shown in the Summary of Net Position(Table 1). TABLE 2: SUMMARY OF CHANGES IN NET POSITION June 30,2015 and 2014 June 30,2015 June 30,2014 $Change %Change Revenues Program Revenues Charges For Services 21,569,439 19,581,052 1,988,387 10.2% Operating Contributions&Grants 955,677 1,674,815 (719,138) -42.9% Capital Grants&Contributions 21,931,981 20,914,994 1,016,987 4.9% Total Program Revenue 44,457,097 42,170,861 2,286,236 5.4% General Revenues Property Taxes 29,437,951 24,099,126 5,338,825 22.2% Special Assessments Taxes 1,264,204 1,187,182 77,022 6.5% Sales Taxes 19,211,823 17,833,314 1,378,509 7.7% Other Taxes 6,159,654 5,427,627 732,027 13.5% Investment income,unrestricted 550,272 853,147 (302,875) -35.5% Intergovernmental,unrestricted 2,428,248 191,574 2,236,674 1167.5% Other general revenues 735,139 125,211 609,928 487.1% Total General Revenue 59,787,291 49,717,181 10,070,110 20.3% Total Revenues 104,244,388 91,888,042 12,356,346 13.4% Expenses Governmental activities: General government 10,774,480 15,169,979 (4,395,499) -29.0% Police 15,325,113 15,166,855 158,258 1.0% Fire 12,198,769 11,402,920 795,849 7.0% Public works 15,336,225 12,442,002 2,894,223 23.3% Park and community services 12,149,716 11,011,182 1,138,534 10.3% Economic development 679,313 982,542 (303,229) -30.9% Community development 5,713,196 5,810,987 (97,791) -1.7% Total Governmental Activites 72,176,812 71,986,467 190,345 0.3% Increase In Net Position 32,067,576 19,901,575 12,166,001 61.1% Net Position-Beginning of Year 594,679,548 A 584,355,189 10,324,359 1.8% Net Position-End of Year 626,747,124 604,256,764 22,490,360 3.7% *As a result of the implementation of GASB Statements 68 and 71, the City made an adjustment of $9,577,216 to the beginning net position of its governmental activities. 8 As shown in Table 2, total revenues from all sources were $104.2 million and total expenses for all City programs were $72.2 million in FY 2014-15. The City's net position increased $32.1 million, compared to $19.9 million in the prior year: that change is due predominantly to increased revenue in Property and Sales taxes,revenues related to development projects and several one-time grants related to transportation and parks,and revenue from recreation programs. Revenues Overall revenues increased $12.4 million, or 13.4%, in FY 2014-15 compared to the prior year. Changes included: • Charges for Services increased$2.0 million due mainly to the net change of increases in building permit activity and zoning revenue associated with the acceleration of development within the City, charges for recreation programs and residential garbage/recycling, and an increase in Santa Rita charges for emergency services. • Capital Grants and Contributions increased $1.0 million due to increased one-time revenues (Community Benefit Payments), public facility fees, traffic impact fees, fire impact fees and public art in-lieu fees. • Property Taxes increased $5.3 million, resulting from an increase to overall assessed property valuations,and the incorporation of some recapture of previous values lost during the recession. • Sales Taxes increased $1.4 million, due to strong growth in the auto sales, consumer spending, and building and construction sectors. • Other Taxes increased$0.7 million,due to increases in franchise taxes and hotel taxes. • Intergovernmental increased by$2.2 million due to the booking of a one-time State grant(TDA), East Bay Regional Park and reimbursements from the State for the City's compliance with mandated Expenses Total expenses increased slightly, from $72.0 million in FY 2013-14 to $72.2 million in FY 2014-15 despite of decrease in the General Government expenses which was offset with increases in Public Works and Park and Community Services.The following factors contributed to the overall increase: • General Government expenses decreased by $4.4 million due to large expenses in the prior year related to development projects, including legal and consultant expenses. Insurance expenses related to Police Services were also booked under General Government in prior year but was moved to the Police program in FY 2014-15. • Public Works expenses increased by $2.9 million as a result of additional costs to maintain the new buildings (the Public Safety Complex and the Maintenance Yard Facility) as well as higher expenses in project engineering and inspection consultant in line with the increased level of development the City experienced during the fiscal year. • Parks and Community Services expenses increased$1.1 million as a result of higher costs related to the maintenance of City facilities, and to the cost of providing various recreational services such as sports and childcare programs,and City-sponsored events. 9 Revenues and Expenses by Category The following chart presents the Government-Wide FY 2014-15 revenues in a pie chart format (in thousands). Approximately 88% of the total revenue is related to four sources: 1)Property taxes, 28%; 2) Capital Grants and Contributions, 21%; 3) Charges for Services, 21%; and 4) Sales tax, 18%. This is relatively consistent with the prior year. Investment Income Other Taxes $550,0% Intergovernmental Other General $6,160,6% $2,428,2.3% Revenues $735,0% Charges for Services $21,569,21% Sales Taxes $19,212, 18% Operating Grants &Contributions Special Assessments $956, 1% $1,264, 1% ■••""""— Capital Grants &Contributions Property Taxes $21,932,21% $29,438, 28% 10 Government-Wide expenses in FY 2014-15 are shown below in the same pie chart format(in thousands). Of the $72.2 million in total expenses, Public Safety and Police are the largest program costs, making up a combined 42% of the total. Fire Services, Parks & Community Services and General Government follow at 17%, 17%, and 15%,respectively. Community Economic Development Development $5,713,8% $679, 1% General Government $10,774, 15% Parks&Community Services $12,150, 17% Police $15,325, 21% Public Works $15,336,21% Fire Services $12,199, 17% 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. 11 The City maintains forty-seven (47) individual Governmental funds. Information is presented separately in the Governmental fund balance sheet and in the Governmental fund statement of revenues, expenditures, and changes in fund balances for the following ten funds: General Fund; Affordable Housing Fund; four Capital Project Funds (General Improvement Projects; Community Improvement Projects; Parks Projects; Streets Projects); and four Impact Fee Funds (Public Facilities Impact Fees, Fire Impact Fees, Traffic Impact Fees, and Dublin Crossings Contribution). These funds either qualify or the City requested them to be classified as major funds due to their significance in the financing of new capital assets. Data from the other thirty-seven (37) Governmental funds are combined into a single aggregated presentation, labeled as Non-Major Governmental Funds. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for each of its Governmental funds. A budgetary comparison statement has been provided for each Governmental fund to demonstrate compliance with this budget. Proprietary funds: The City maintains one type of Proprietary fund. 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.These funds are also used to collect funds for future retiree medical costs, which are then transferred to a trust. In FY 2006-07,the City established an internal service fund component related to the pre-payment of the Public Employees Retirement System side fund obligation. Charges are made to departments based on payroll to fully recover advanced retirement payment over time. The City uses eight internal service funds to account for its fleet of vehicles, computer systems, other furniture and equipment, certain retiree 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 eight 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 Fiduciary fund section consists of six Agency Funds. The Dublin Boulevard Extension Agency Fund is an improvement district with outstanding bonds. The City's role is that of a trustee, or fiduciary, in collecting assessments and remitting bond payments. The City has no legal, contingent or moral obligation for the repayment of this debt and merely ensures that the assets received are used for their intended purposes. The City also provides a similar role for four Geologic Hazard Abatement Districts. California Public Resources Code section 25670 establishes that these Districts are a political subdivision of the State and not an agency or instrumentality of a local agency. The City contractually provides support to collect funds in a fiduciary capacity and may also arrange for activities funded by the Districts. The City served as the fiscal agent for Alameda County Associated Community Action Program(ACAP) beginning in 2011. The entity is a Joint Powers agency which the members have decided to proceed with closing out all activities. The City role was limited to holding funds collected from members and issuing payments as part of the close-out process. These fiduciary activities are excluded from the City's fund financial statements because these assets cannot be used to finance City operations. The activity for these funds, however, is provided for in a separate combining statement contained elsewhere in this report. 12 FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS At June 30, 2015, the City's governmental funds reported combined ending fund balances of $172.4 million, an increase of$32.0 million from the prior year. Table 3 below illustrates the net change in fund balances over the prior year for these funds. A discussion of the changes follows the table; individual and non-major funds may be found in the Supplemental. TABLE 3: GOVERNMENTAL FUND BALANCE CHANGES June 30,2015 and 2014 June 30,2015 June 30,2014 $Change % Change General Fund 97,706,494 79,577,762 18,128,732 22.8% Affordable Housing Fund 13,607,857 10,064,299 3,543,558 35.2% Capital Improvement Funds 50,385,192 41,339,587 9,045,605 21.9% Other Governmental Funds 10,745,411 9,404,895 1,340,516 14.3% Total Governmental Funds 172,444,954 140,386,543 32,058,411 22.8% GENERAL FUND The General Fund is the chief operating fund of the City. Approximately $1.5 million of the balance is non-spendable in the form of pre-paid expenses,advances to the Fire Impact Fee Fund and the PERS Side Fund, and an endowment fund related to a City owned historic cemetery. At the end of FY 2014-15, the unassigned fund balance of the General Fund was $21.3 million, representing approximately four months of budgeted FY 2015-16 expenditures, with total fund balance at $97.7 million. The unassigned amount reflects an amount calculated for the unrealized gain on investments as well as an amount related to cash flow for on-going operations. The remaining balances are committed or assigned in accordance with a policy adopted by the City Council as discussed in Note 8 to the financial statements. During FY 2014-15, General Fund revenues exceeded its expenditures by $19.5 million, before transfers out. Compared to the prior year, General Fund revenues came in$8.2 million higher, from$67.9 million in FY 2013-14 to $76.1 million in FY 2014-15. Excluding Community Benefit Payments, which are considered one-time in nature,revenue in FY 2014-15 came in approximately$5.3 million higher than the prior year. This is due mainly to gains in Property Taxes and Sales Taxes, which made up 28.2% and 18.4%,respectively,of all General Fund revenues in FY 2014-15. Expenditures in General Fund departments totaled $56.6 million in FY 2014-15, staying nearly $8.5 million under the final budget(not including transfers out), but coming in $1.3 million higher than actual expenditures in the prior year. This is primarily due to a$1.4 million increase in contracted services costs over the prior year. Also in FY 2014-15, The General Fund contributed$1.4 million towards capital project expenditures,via transfers out to Capital Improvement Project Funds. This is a decrease of nearly $9.0 million over the prior year,and is due primarily to transfers of$4.9 million and$3.2 million for the Maintenance Yard and the Public Safety Complex, respectively, in prior year- both of those projects were completed early in FY 2014-15. After transfers, total reserves increased nearly $18.1 million as of June 30, 2015. It is important to note that,of the total transferred out for capital projects,$1.4 million was covered by specific Committed Reserves. 13 AFFORDABLE HOUSING FUND The Affordable Housing Fund is a special revenue fund which accounts for funds associated with the Affordable Housing programs. The fund balance totaled $13.6 million at June 30, 2015, an increase of $3.5 million over the prior year. The change reflects $2.5 million developer fee revenue and loan principal of$1.4 million collected that were offset with program expenditures of$0.4 million incurred during the year. CAPITAL IMPROVEMENTS FUNDS As previously described the City has included seven specific capital funds in the information presented as part of the governmental funds.Four of the funds are used to capture expenditures related to active capital projects that are under way.The four funds are: General Improvement Projects;Community Improvement Projects; Parks Projects; and Streets Projects. The funding for the expenditures made in these funds is the result of transfers in from other funds. As of June 30, 2015 as in the prior year, none of these funds carried a balance.The following Capital Impact Fee Funds are also reported: Public Facilities Fee Fund:This fund includes fees collected to develop parks and other public facilities. Total revenue collected in FY 2014-15 was $8.8 million, an increase of$1.2 million from the prior year. This revenue is collected when developers process Final Maps, resulting in payments of park land dedication fees. Due to variations in project construction and acquisition timelines expenditure patterns will fluctuate. Expenses in FY 2014-15 totaled$0.08 million in this fund. The balance is restricted due to legal restrictions and it is not available for general purposes. Fire Impact Fees: This fund accounts for fees collected from new development to pay for the capital cost associated with the provision of Fire Services. Total revenue collected in FY 2014-15 was $0.4 million, approximately $0.2 million more than was collected in the prior year. In FY 2011-12 the City collected an advance payment from the Jordan Ranch project, which will reduce fees collected as the property develops since the developers will have credits in-lieu of paying cash at the time of receiving a building permit. In addition,collections will fluctuate with the normal variations in development activity. The negative fund balance associated with this fund represents the repayment of a long term advance, including interest, made from the City General Fund. In FY 2014-15 the amount owed to the General Fund decreased by $445,179 after accounting for interest on the outstanding balance. The total balance owed to the General Fund, as of June 30, 2015 is $0.5 million. The balance is restricted due to legal restrictions and it is not available for general purposes. Traffic Impact Fee Funds: The funds account for fees collected to construct major traffic improvements necessary to facilitate development. Fees are levied and collected on development in proportion to its impact on the transportation needs. Revenue collected in FY 2014-15 totaled $6.3 million (including interest earned), approximately $1.5 million more than collected in the prior year. The City expended approximately $0.6 million in payments to reduce outstanding obligations. In addition, approximately $1.4 million was transferred to the Streets Capital Project Fund, primarily for future project design expenses. This resulted in a net increase of fund balance by$4.4 million. The balance is restricted due to legal restrictions and it is not available for general purposes. 14 NON-MAJOR FUNDS The City's non-major funds, which are all Special Revenue Funds, are presented in the basic financial statements in the aggregate. Total fund balance increased$1.3 million,from $9.4 million in the prior year to $10.7 million in FY 2014-15. Based on the designated use of the funds they can be arranged by function as shown in Table 4 below: TABLE 4: ANALYSIS OF FUND BALANCES- NON-MAJOR GOVERNMENTAL FUNDS,ARRANGED BY FUNCTION June 30,2015 and 2014 June 30,2015 June 30,2014 $Change %Change Function Public Safety 937,415 902,161 35,254 3.9% Transportation 4,134,387 4,197,427 (63,040) -1.5% Environmental 1,041,709 960,102 81,607 8.5% Parks,Culture,Arts 3,338,687 2,314,755 1,023,932 44.2% Health& Welfare 88,326 82,383 5,943 7.2% Maintenance Districts 1,204,887 948,066 256,821 27.1% TOTAL FUND BALANCE 10,745,411 9,404,895 1,340,516 14.3% The full fund balances of these Special Revenue Funds are legally restricted to use under the programs indicated in the Table above, are not available for general purposes. The Parks, Culture and Arts category shows an increase in fund balance due to the collection of some large Public Arts In-Lieu fees, totaling $0.9 million, from various developers. The increase in Maintenance District balances is largely due to capital expenditures for the Energy Efficiency Upgrade project. More information about these aggregated non-major funds can be found in the combining statements following the required supplementary information. 15 0. GENERAL FUND BUDGETARY HIGHLIGHTS A summary of the budgetary comparison schedule for the General Fund is shown in Table 5 below. The complete schedule, as required, is included in the supplementary information following the notes to the financial statements. TABLE 5:SUMMARY OF GENERAL FUND ORIGINAL AND FINAL BUDGET AND ACTUAL Period Ending June 30,2015 Budget Amounts Actual Variance from Original Final Amount Final Budget REVENUE Taxes 48,398,777 52,705,527 54,168,662 1,463,135 Intergovernmental 193,620 193,620 483,300 289,680 Licenses and permits 3,864,977 5,225,552 6,025,685 800,133 Charges for services 7,139,807 8,437,904 10,338,553 1,900,649 Use of money&property 1,384,618 1,384,618 1,551,845 167,227 Fines and forfeitures 138,260 138,260 124,529 (13,731) Other revenue 2,784,178 3,143,878 3,406,685 262,807 Total Revenue 63,904,237 71,229,359 76,099,259 4,869,900 EXPENDITURE General government 7,687,814 11,488,993 6,673,470 4,815,523 Police 16,299,006 16,309,297 15,425,566 883,731 Fire 11,928,157 11,928,157 11,599,771 328,386 Public Works 6,263,377 7,050,935 6,802,671 248,264 Parks and Community Services 10,566,724 10,956,654 9,621,233 1,335,421 Economic Development 1,027,724 1,165,676 808,272 357,404 Community development 5,424,980 6,196,666 5,646,266 550,400 Total Expenditure 59,197,782 65,096,378 56,577,249 8,519,129 OTHER FINANCING SOURCES(USES) Transfer out (1,353,216) (6,374,182) (1,393,278) 4,980,904 Total other financing sources (uses) (1,353,216) (6,374,182) (1,393,278) 4,980,904 NET CHANGE IN FUND BALANCE 3,353,239 (241,201) 18,128,732 18,369,933 Over the course of the year, revisions were made to the City budget with adjustments that generally fall into one of the following three categories: • Adjustments to carry over operating budgets from the prior year. • Adjustments to carry over capital expenditure budgets, typically in the form of transfers out to capital improvement funds,from the prior year. • Adjustments to revenue and expenditure budgets based on current economic conditions, new revenue sources,and/or operational spending needs after the original budget was adopted. 16 In the General Fund total actual revenues exceeded the final budget by $4.8 million as of June 30, 2015, due mainly to the following factors: • Taxes: $1,463,135 higher than budget. Sales Tax came in$226,591 higher than budget,as a result of overall growth across nearly all sectors. The Business and Industry sector (which typically trends with development activity) showed the higher gain as projected by the City. Property Transfer Tax came in $389,428 higher, linked to increased assessed valuations; high hotel occupancy and room rates brought Transient Occupancy Tax revenue in $369,409 over budget; Garbage and Cable franchise fee revenue came in $347,017 above budget, due both to rate increases and expanded services. • Licenses and Permits: $800,133 higher than budget.Building Permits came in$708,400 higher as a result of the acceleration of development activity during FY 2014-15. It is important to note that these revenues are not long-term in nature, and that long-term forecasts incorporate a significant reduction in such development-related income. Because there is a lag between the receipt of revenue and the expense of related funds to provide the services,the City continues to maintain a Service Continuity Reserve(currently at$2,771,500)to ensure that there are future funds to cover expenditures when development activity slows. • Intergovernmental: $289,680 higher than budget. This is due to a series of payments from the State, totaling $254,961, in reimbursement for past compliance with State mandates, via the Senate Bill 90 claiming process, • Charges for Service: $1,900,649 higher than budget. The increase is related to the different method of booking the Fire Services from Santa Rita jail. In the past, the City recorded the revenue in arrears. However,the revenue recognition methodology has been altered to reflect the timely revenue balance causing the revenue to double up in FY 2014-15. The increase was also contributed by higher Zoning fee revenue tied to the overall increase in development activity as well as increase in revenue from Family and Sports Programs. • Other Revenue: $262,807 higher than budget. This is primarily due to Community Benefit Payments coming in$188,725 higher than budget.The City does not typically budget for these on an ongoing basis,unless there are some large,known payments at the beginning of the year. With the accelerated development in FY 2014-145 the City also received a number of smaller payments that were related to existing development agreements. General Fund expenditures came in $8.5 million lower than the final budget, reflecting overall savings across departments.The following is a discussion of the changes: • General Government: $4,815,523 lower than budget. The bulk of the budget savings is related to the budgeted transfer of$3.5 million to the Public Facilities Fees Funds that did not occur during the year. Instead. A reserve was set up for the possible future transfer of funds, which would be considered an interfund loan to be repaid over time. Additionally, there were several vacancies throughout the year in administrative departments, and some unused salary contingencies (typically used for merit increases), accounting for $322,102 in budget savings. Services and supplies also came in lower(by$177,318),primarily due to lower insurance premiums,according to the City's plan of coverage and claim history. Contracted services reflects the largest operating savings for the administrative group,at$795,378 lower than budget,for a variety of contracts that were opened via the purchase order process,with the work extending and/or being carried over to the current fiscal year. • Public Safety: Police came in $883,731 lower than budget due primarily to the unanticipated decrease in insurance premiums,that was not accounted for in the contract at the beginning of the year, as well as to due to a Neighborhood Resources Officer moving from the City books to the contract with the County. Costs for Fire Services also came in lower than budget($328,386) due 17 to overall contract savings in nearly every category (personnel, vehicle, services and supplies, etc.). • Public Works: $248,264 lower than budget, due primarily to savings in potable water, with an increased reliance on recycled water at City facilities. • Parks and Community Services: $1,335,421 lower than budget. Some of the budget savings ($296,659)was a result of staff vacancies throughout part of the year, and services and supplies also came in lower than budget. Savings of$117,282 in Utilities reflects the savings the City is experiencing as it moves more facilities to recycled water for parks maintenance. In addition, some budgets for small-scale maintenance projects and routine upgrades were not utilized until the beginning of the current fiscal year (e.g. park drainage and maintenance, community center enhancements, Senior Center marquee upgrade). • Economic Development: $357,404 lower than budget. This is a result of the carryover budgets from the prior year for the Commercial Façade Improvement Program, which the City is continuing into FY 2015-16, as well as to remaining budget for the Marketing and Branding Campaign which is also continued in to the current fiscal year. • Community Development: $550,400 lower than budget. The primary driver of budget savings in this department is the remaining budgets for specific contracted services related to development. These fluctuate with the City's activities and with the timelines for projects, and are typically carried over to the next budget year until the projects are closed. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City's investment in capital assets for its governmental activities, as of June 30, 2015, amount to $451.0 million (net of accumulated depreciation). These 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 Table 6 below. During FY 2014-15, the City's investment in capital assets • increased by approximately $6.8 million (1.0%), due to primarily to additions to infrastructure and to project construction in progress. TABLE 6: SUMMARY OF INVESTMENT IN CAPITAL ASSETS June 30,2015 and 2014 Governmental Activities June 30,2015 June 30,2014 $Change % Change Land 171,301,925 171,301,925 (0) 0.0% Streets Right of Way 35,425,288 35,425,288 (0) 0.0% Construction in Progress 24,698,855 32,519,388 (7,820,533) -24.0% Infrastructure 386,792,064 383,700,250 3,091,814 0.8% Buildings and Improvements 75,790,207 70,721,237 5,068,970 7.2% Machinery and Equipment 14,835,775 8,354,971 6,480,804 77.6% Subtotal 708,844,113 702,023,059 6,821,054 1.0% Less:Accumulated Depreciation (258,261,756) (250,364,887) (7,896,869) 3.2% Total Net of Depreciation 450,582,357 451,658,172 (1,075,815) -0.2% 18 The City continued its active Capital Improvement Program with significant progress made on a variety of community assets. A comprehensive list of all CIP expenditures during FY 2014-15 is presented in Table 7 below(this includes project costs that may not have any impact on changes to capital assets,such as repairs or planning costs). For more detailed information of capital assets balances, see Note 6 to the financial statements. 19 TABLE 7: SUMMARY OF CAPITAL IMPROVEMENT PROJECT ACTIVITY As of June 30,2015 FINAL PROJECT NAME BUDGET ACTUAL STATUS GENERAL IMPROVEMENTS 62,177 1,241,494 Police Building Renovation - 31,857 In Progress Maintenance Yard Facility Improvements - 883,578 In Progress Electronic Agenda System - 27,902 In Progress Public Safety Complex - 7,022 Complete Energy Efficiency Upgrade - 13,361 Complete Network System Upgrade 22,000 89,790 In Progress Geographic Information System 19,000 43,247 In Progress Civic Center Modification Design&Construction - 122,339 In Progress ADA Transition Plan 21,177 22,400 Annual COMMUNITY IMPROVEMENTS 326,037 68,190 San Ramon Road Landscape Renovation 239,065 405 In Progress Sidewalk Safety Repair 86,972 67,785 Annual PARKS 25,657,572 4,742,329 Emerald Glen Park Recreation&Aquatic Complex 14,931,256 3,315,812 In Progress Dublin Crossing Community Park 167,448 97,220 In Progress Passatempo Park - 897 Complete Dublin Heritage Park Cemetery Phase 816,960 6,928 In Progress Positano Hills Neighborhood Park - 181,637 Complete Library Expansion-Center for 21st Cnty 129,756 26,447 In Progress Fallon Sports Park Ph II 7,530,599 656,963 In Progress Public Art-Emerald Glen Recreation 154,904 91,977 In Progress Jordan Ranch Neighborhood Park 1,802,899 39,509 In Progress Fallon Sports Park 113,750 13,500 In Progress Shannon Park Water Play Area - 56,266 In Progress Tennis Court Resurfacing Project 10,000 255,175 Complete STREETS 7,273,436 3,568,143 St. Patrick Way-Regional Street to Golden Gate Dr - 52,089 In Progress Citywide St Storm Drain Condition 160,042 184 In Progress Traffic Sign Inventory and Safety Review 65,434 - In Progress Citywide Signal Communication Upgrade 33,623 3,670 In Progress City Irrigation Improvements - 113,288 In Progress Amador Plaza Road Bicycle and Pedestrian - 14,330 In Progress Dougherty Rd. Improve- Sierra Ln 5,964,802 1,204,549 In Progress Dublin Blvd-Sierra Ct to Dublin 38,840 93,447 In Progress Storm Drain Bypass San Ramon Rd - 30,176 In Progress AVB Crosswalk Improvements - 164,182 Complete Accessible Pedestrian Signal Retr - 5,502 Complete Street Overlay Program 321,507 1,082,862 Annual Slurry Seal Program 654,954 772,184 Annual Dublin Ranch Street Light Pole Painting 34,234 31,680 Annual TOTAL 33,319,222 9,620,157 20 Debt In FY 2012-13, the City entered into a lease financing arrangement to fund planned energy-efficient improvements through an Energy Services Performance Contract with Chevron Solutions. The total amount financed was $6.8 million, which was added to the City's long-term debt category, with an average repayment of$0.6 million annually for fourteen years. FY 2013-14 was the first year the City began to repay this debt. For more detailed information of debt balances and repayment schedules, see Note 7 to the financial statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The City is currently preparing its budget for FY 2016-17, which is the first year in a two-year budget cycle. Although Property Tax and Sales Tax have shown significant gains in the last two years, contract costs and ongoing maintenance of new facilities remains a concern in the long-term perspective. As discussed in the Transmittal Letter, the current level of development revenue is not expected to continue as the City nears build-out. While that is not likely to occur in the next five years, the City is planning for that eventuality by shoring up funding now to fund future capital projects and bridge the eventual gaps related to declines in revenue. The FY 2016-17 operational budget will likely remain largely unchanged from what was adopted in June 2015;however, increased property and sales taxes will allow the City to consider one-time contributions to capital projects, contingency reserves, or to other long-term liabilities. With these things in mind, the City will continue to focus on the following primary goals: 1) Fully fund current City operations; 2) Continue funding future capital endeavors now, through the setting aside of specific reserves;and 3)Maintain adequate operating reserves over the long term. Copies of the adopted Budget and Financial Plan are available online at www.dublin.ca.gov. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the financial position of the City for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional fmancial information should be addressed to the following address: City of Dublin, Finance Department, 100 Civic Plaza, Dublin, CA 94568. A copy of this financial report is also located at the City's website—www.dublin.ca.gov. 21 This Page Left Intentionally Blank CITY OF DUBLIN Comprehensive Annual Financial Report For the Year Ended June 30,2015 GOVERNMENT-WIDE FINANCIAL STATEMENTS STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES 23 1 CITY OF DUBLIN STATEMENT OF NET POSITION JUNE 30,2015 Governmental Activities ASSETS Current assets: Cash and investments(Note 3) $197,010,818 Accounts receivable 5,728,428 Accrued interest receivable 400,087 Prepaids 90,401 Total current assets 203,229,734 Noncurrent assets: Notes receivable(Note 5) 9,632,631 Capital assets(non-depreciable)(Note 6): Land 171,301,925 Streets right of way 35,425,288 Construction in progress 24,698,855 Capital assets(depreciable)(Note 6): Infrastructure 386,792,065 Building and improvements 75,790,206 Vehicles and equipment 14,835,774 Less accumulated depreciation (258,261,756) Total capital assets 450,582,357 Total noncurrent assets 460,214,988 Total Assets 663,444,722 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pension(Note 10) 1,067,859 LIABILITIES Current liabilities: Accounts payable 13,786,799 Accrued wages and other payroll liabilities 549,073 Deposits payable 5,279,199 Contract retention payable 55,434 Other payables 131,657 Unearned revenue 302,888 Compensated absences-Due within one year(Note 1G) 667,276 Long-term debt(Note 7): Due in one year 403,459 Total current liabilities 21,175,785 Noncurrent liabilities: Net OPEB obligation-City of Dublin(Note 11A) 4,647 Net OPEB obligation-Dublin Regional Fre Authority(Note 11B) 315,269 Net pension liability(Note 10) 7,837,436 Claims payables(Note 12) 154,500 Compensated absence(Note 1G) 285,976 Long-term debt(Note 7): Due in more than one year 5,346,352 Total noncurrent liabilities 13,944,180 Total Liabilities 35,119,965 24 CITY OF DUBLIN STATEMENT OF NET POSITION(Continued) JUNE 30,2015 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pension(Note 10) 2,645,492 NET POSITION(Note 8) Net Investment in capital assets 444,832,546 Restricted for. Public safety 937,415 Impact fee projects 53,376,143 Highways and streets 5,899,512 Health and welfare 14,177,662 Culture and leisure 347,485 Total restricted 74,738,217 Unrestricted 107,176,361 Total Net Position $626,747,124 See accompanying notes to financial statements 25 a _ CITY OF DUBLIN STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30,2015 Program Revenues Operating Capital Charges for Grants and Contributions Expenses Services Contributions and Grants Governmental Activities: General government $10,774,480 $5,777,971 $764,655 $21,931,556 Police 15,325,113 399,802 5,000 Fire 12,198,769 1,746,581 Public works 15,336,225 2,978,235 425 Park and community services 12,149,716 3,009,383 97,320 Economic development 679,313 12,000 Community development 5,713,196 7,657,467 76,702 Total Governmental Activities $72,176,812 $21,569,439 $955,677 $21,931,981 General revenues: Taxes Property taxes Special assessment taxes Sales tax Other taxes Total Taxes Intergovernmental(unrestricted) Miscellaneous Unrestricted investment earnings(loss) Total general revenues Change in Net Position Net position: Beginning of year,as adjusted(1M) End of year See accompanying notes to financial statements 26 Net(Expense) Revenue and Changes in Net Position Total Program Governmental Revenues Activities $28,474,182 $17,699,702 404,802 (14,920,311) 1,746,581 (10,452,188) 2,978,660 (12,357,565) 3,106,703 (9,043,013) 12,000 (667,313) 7,734,169 2,020,973 $44,457,097 (27,719,715) 29,437,951 1,264,204 19,211,823 6,159,654 56,073,632 2,428,248 735,139 550,272 59,787,291 32,067,576 594,679,548 $626,747,124 27 This Page Left Intentionally Blank FUND FINANCIAL STATEMENTS The funds described below were determined to be Major Funds by the City in Fiscal Year 2014-2015. Individual non-major funds may be found in the Supplemental. The General Fund-is the governments primary operating fund.It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Affordable Housing Special Revenue Fund- is used to account for in-lieu fees received from developers of properties,which can only be used for the design, development, and construction of citywide affordable housing projects and/or support of affordable housing programs. The General Improvements Projects Capital Projects Fund- is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets, Parks, or Community Improvements projects. The Community Improvements Projects Capital Projects Fund- is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would promote or enhance redevelopment, revitalization, beautification of the City's infrastructure and are not General Improvements, Streets or Parks related projects. The Parks Projects Capital Projects Fund-is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct,improve,or enhance the City's parks and facilities. The Streets Projects Capital Projects Fund - is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's trails, highways, streets,roads,bridges,as well as street lighting,and storm drain systems. The Public Facilities Impact Fees Capital Projects Fund - is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of new public facilities within the City. The Fire Impact Fees Capital Projects Fund- is used to account for impact fees received from developers of properties,which can only be used for the design,development,and construction of fire capital expansion projects within the City. The Traffic Impact Fees Capital Projects Fund- is used to account for impact fees received from developers of properties, which can only be used for the design, development and construction of street and highway projects which serve as part of the City's transportation network. The Dublin Crossing Contribution Capital Projects Fund-accounts for community benefit payments specific to the Dublin Crossings Project,separate from any developer impact fees generated by the project. 29 CITY OF DUBLIN GOVERNMENTAL FUNDS BALANCE SHEET JUNE 30,2015 Capital Projects Funds Special Revenue Fund General Community Affordable Improvements Improvements Parks General Housing Projects Projects Projects ASSETS Cash and investments(Note 3) $104,602,678 $13,668,824 $28,420 $4,281 $1,121,988 Accounts receivable 4,378,067 500 51,259 Accrued interest receivable 400,087 Due from other funds(Note 4B) 3,357,283 Notes receivable(Note 5) 9,632,631 Advances to ISF PERS Side Fund(Note 4C) 918,005 Advances to other funds(Note 4C) 456,729 Prepaids 50,898 Total Assets $114 3,747 $23,301,955 =$79 679 S4 281 , $1,121,988 LIABILITIES Accounts payable $10,233,092 S49,660 $63,757 S110 $1,117,021 Accrued wages and other payroll liabilities 549,073 Deposits payable 5,217,381 11,807 Contract retention payable 3,317 Other payables 131,657 Unearned revenue 302,888 Due to other funds(Note 4B) Advances from other funds(Note 4C) Total Liabilities 16,434,091 61,467 63,757 3,427 1,117,021 DEFERRED INFLOWS OF RESOURCES Unavailable revenue-accounts receivable 23,162 Unavailable revenue-loans receivable 9,632,631 Total Deferred Inflows of Resources 23,162 9,632,631 FUND BALANCES(DEFICITS)(Note 8) Non-spendable 1,475,691 Restricted 500,000 13,607,857 Committed 38,531,179 15,922 854 4,967 Assigned 35,875,264 Unassigned 21,324,360 Total Fund Balances(Deficits) 97,706,494 13,607,857 15,922 854 4,967 Total Liabilities,Deferred Inflows of Resources and Fund Balances $114,163,747 $23301955 S79,679 S4,281 $1,121,988 , , See accompanying notes to financial statements 30 Capital Projects Funds Public Fire Traffic Dublin Other Total Streets Facilities Impact Impact Crossing Governmental Governmental Projects Impact Fees Fees Fees Contribution Funds Funds $719,140 $36,113,026 $18,079,311 $10,966,597 $185,304,265 194,358 936,717 5,560,901 400,087 3,357,283 9,632,631 918,005 456,729 50,898 $719,140 $36,113,026 $18,273,669 $11,903,314 $205,680,799 $688,523 $9,275 $1,013,014 $290 $273,047 $13,447,789 549,073 488 25,757 23,766 5,279,199 52,117 55,434 131,657 302,888 2,439,428 $13,878 42,887 861,090 3,357,283 456,729 456,729 740,640 2,448,703 470,607 1,013,502 68,934 1,157,903 23,580,052 23,162 9,632,631 9,655,793 1,475,691 33,664,323 17,260,167 11,114,501 76,146,848 38,552,922 35,875,264 (21,500) (470,607) (68,934) (369,090) 20,394,229 (21,500) 33,664,323 (470,607) 17,260,167 (68,934) 10,745,411 172,444,954 $719140 S.221322.6. $18,273,669 $11,903,314 $205,680,799 31 This Page Left Intentionally Blank CITY OF DUBLIN Reconciliation of the GOVERNMENTAL FUNDS--BALANCE SHEET with the STATEMENT OF NET POSITION JUNE 30,2015 Total fund balances reported on the governmental funds balance sheet $172,444,954 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following: CAPITAL ASSETS Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. 400,336,744 ALLOCATION OF INTERNAL SERVICE FUND NET POSITION Internal service funds are not governmental funds. However,they are used by management to charge the costs of certain activities,such as insurance and central services and maintenance to individual governmental funds.The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Position Cash and investments $11,706,553 Prepaid items 39,503 Accounts receivable 167,527 Capital assets 50,245,613 Accounts payable and accruals (339,010) Interfund balance (918,005) Capital lease (5,749,811) 55,152,370 ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES Revenues which are deferred on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities. 9,655,793 LONG-TERM ASSETS AND LIABILITIES The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds: Collective net pension liability,and related deferred outflows and inflows of resources (9,415,069) Net OPEB obligation-City of Dublin (315,269) Net OPEB obligation-Dublin Regional Fire Authority (4,647) Compensated absences (953,252) Non-current portion of general liability claims (154,500) (1,427,668) NET POSITION OF GOVERNMENTAL ACTIVITIES $626,747,124 See accompanying notes to financial statements 33 CITY OF DUBLIN GOVERNMENTAL FUNDS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30,2015 Special Revenue Fund Capital Projects Funds General Community Affordable Improvements Improvements Parks General Housing Projects Projects Projects REVENUES Property taxes $29,437,951 Sales tax 18,571,056 Other taxes 6,159,654 Intergovernmental 483,300 Licenses and permits 6,025,685 Charges fix service 10,338,553 $26,468 Interest 550,264 118,833 Use of property 1,001,582 1,351,228 Fines and forfeitures 124,529 Developer fees 2,479,989 Other revenue 3,406,685 Special assessments Total Revenues 76,099,259 3,976,518 EXPENDITURES Current General Government 6,673,470 96,748 Police 15,425,566 Fire 11,599,771 Public works 6,802,671 Park and community services 9,621,233 Economic development 808,272 Community development 5,646,266 341,512 Capital outlay: General improvements $1,241,494 Community improvements $68,190 Parks $4,742,328 Streets Total Expenditures 56,577,249 438,260 1,241,494 68,190 4,742,328 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 19,522,010 3,538,258 (1,241,494) (68,190) (4,742,328) OTHER FINANCING SOURCES(USES) Transfers in(Note 4A) 5,300 1,241,494 68,190 4,742,329 Transfers(out)(Note 4A) (1,393,278) Total Other Financing Sources(Uses) (1,393,278) 5,300 1,241,494 68,190 4,742,329 NET CHANGE IN FUND BALANCES 18,128,732 3,543,558 1 BEGINNING FUND BALANCES(DEFICIT) 79,577,762 10,064,299 15,922 854 4,966 ENDING FUND BALANCES(DEFICIT) $97,706,494 $13,607,857 $15,922 $854 $4,967 See accompanying notes to financial statements 34 Capital Projects Funds Public Fire Traffic Dublin Other Total Streets Facilities Impact Impact Crossing Governmental Governmental Projects Impact Fees Fees Fees Contribution Funds Funds $29,437,951 $640,766 19,211,822 6,159,654 2,762,522 3,245,822 6,025,685 3,372,913 13,737,934 $229,303 $103,738 $17 69,781 1,071,936 2,352,810 196,100 320,629 8,534,908 $434,307 6,154,171 974,797 18,578,172 13,248 53,079 3,473,012 1,264,201 1,264,201 8,764,211 434,307 6,271,157 17 9,334,159 104,879,628 3,006 551,338 50,000 3,288,578 10,663,140 271,866 15,697,432 330,474 11,930,245 869 1,678,146 8,481,686 79,711 30,059 9,731,003 808,272 71,402 6,059,180 1,241,494 68,190 4,742,328 $3,568,142 3,568,142 3,568,142 79,711 3,006 552,207 50,000 5,670,525 72,991,112 (3,568,142) 8,684,500 431,301 5,718,950 (49,983) 3,663,634 31,888,516 3,568,143 9,625,456 (4,305,724) (1,364,415) (69,026) (2,323,118) (9,455,561) 3,568,143 (4,305,724) (1,364,415) (69,026) (2,323,118) 169,895 1 4,378,776 431,301 4,354,535 (119,009) 1,340,516 32,058,411 (21,501) 29,285,547 (901,908) 12,905,632 50,075 9,404,895 140,386,543 ($21,500) $33,664,323 ($470,607) $17,260,167 ($68,934) $10,745,411 $172,444,954 35 CITY OF DUBLIN Reconciliation of the NET CHANGE IN FUND BALANCES-TOTAL GOVERNMENTAL FUNDS with the STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30,2015 The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues,Expenditures and Changes in Fund Balance,which measures only changes in current assets and current liabilities on the modified accrual basis,with the Change in Net Position of Governmental Activities reported in the Statement of Activities,which is prepared on the full accrual basis. NET CHANGE IN FUND BALANCES-TOTAL GOVERNMENTAL FUNDS $32,058,411 Amounts reported for governmental activities in the Statement of Activities are different because of the following: CAPITAL ASSET TRANSACTIONS Governmental Funds report capital outlays as expenditures.However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense. Capitalized expenditures are therefore added back to fund balance 8,527,662 Depreciation expense is deducted from the fund balance. The amount excludes the depreciation of$1,877,903 for Internal Service Funds (8,189,857) ACCRUAL OF NON-CURRENT ITEMS The amounts below included in the Statement of Activities do not provide or(require)the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds(net change): Unearned revenue (664,338) Compensated absences 25,996 Claims liability 40,557 Collective net pension liability 162,147 OPEB asset-City of Dublin (40,536) OPEB obligation-Dublin Regional Fire Authority (11,903) ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition,maintenance,and insurance to individual funds. The portion of the net revenue(expense)of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities. Change in Net Assets-All Internal Service Funds 159,437 CHANGE IN NET POSITIONS OF GOVERNMENTAL ACTIVITIES $32,067,576 See accompanying notes to financial statements 36 CITY OF DUBLIN GENERAL FUND STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) REVENUES Property taxes $25,898,281 $29,290,511 $29,437,951 $147,440 Sales tax 17,686,696 18,361,216 18,571,056 209,840 Other taxes 4,813,800 5,053,800 6,159,654 1,105,854 Intergovernmental 193,620 193,620 483,300 289,680 Licenses and permits 3,864,977 5,225,552 6,025,685 800,133 Charges for services 7,139,807 8,437,904 10,338,553 1,900,649 Interest 368,581 368,581 550,264 181,683 Use of property 1,016,037 1,016,037 1,001,582 (14,455) Fines and forfeitures 138,260 138,260 124,529 (13,731) Other revenue 2,784,178 3,143,878 3,406,685 262,807 Total Revenues 63,904,237 71,229,359 76,099,259 4,869,900 EXPENDITURES Current: General government 7,687,814 11,488,993 6,673,470 4,815,523 Police 16,299,006 16,309,297 15,425,566 883,731 Fire 11,928,157 11,928,157 11,599,771 328,386 Public works 6,263,377 7,050,935 6,802,671 248,264 Park and community services 10,566,724 10,956,654 9,621,233 1,335,421 Economic development 1,027,724 1,165,676 808,272 357,404 Community development 5,424,980 6,196,666 5,646,266 550,400 Total Expenditures 59,197,782 65,096,378 56,577,249 8,519,129 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 4,706,455 6,132,981 19,522,010 13,389,029 OTHER FINANCING SOURCES(USES) Transfers(out)(Note 4A) (1,353,216) (6,374,182) (1,393,278) 4,980,904 Total Other Financing Sources(Uses) (1,353,216). (6,374,182) (1,393,278) 4,980,904 NET CHANGE IN FUND BALANCE $3,353,239 ($241,201) 18,128,732 $18,369,933 BEGINNING FUND BALANCE 79,577,762 ENDING FUND BALANCE $97,706,494 See accompanying notes to financial statements 37 CITY OF DUBLIN AFFORDABLE HOUSING SPECIAL REVENUE FUND STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) REVENUES: Interest $46,737 $46,737 $118,833 $72,096 Loan repayment 1,351,228 1,351,228 Charges for services 43,360 43,360 26,468 (16,892) Developer fees 1,234,416 2,434,416 2,479,989 45,573 Total Revenues 1,324,513 2,524,513 3,976,518 1,452,005 EXPENDITURES: Current General government 29,550 104,550 96,748 7,802 Community development 650,121 7,215,358 341,512 6,873,846 Total Expenditures 679,671 7,319,908 438,260 6,881,648 REVENUES OVER(UNDER)EXPENDITURES 644,842 (4,795,395) 3,538,258 8,333,653 OTHER FINANCING SOURCES(USES) Transfers in(Note 4A) 6,600 6,600 5,300 (1,300) Total Other Financing Sources(Uses) 6,600 6,600 5,300 (1,300) NET CHANGE IN FUND BALANCE $651,442 ($4,788,795) 3,543,558 $8,332,353 BEGINNING FUND BALANCE 10,064,299 ENDING FUND BALANCE $13,607,857 See accompanying notes to financial statements 38 PROPRIETARY FUNDS Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise.The intent of the City is that the cost of providing goods and services be financed primarily through user charges. 39 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF NET POSITION JUNE 30,2015 Governmental Activities- Internal Service Funds ASSETS Current Assets: Cash and investments(Note 3) $11,706,553 Accounts receivable 167,527 Prepaid items 39,503 Total current assets 11,913,583 Noncurrent Assets: Capital assets(Note 6): Land 10,774,792 Construction in progress 3,403,773 Building and improvements 63,094,195 Vehicles and equipment 6,756,164 Less:accumulated depreciation (33,783,311) Total noncurrent assets 50,245,613 Total Assets 62,159,196 LIABILITIES Current Liabilities: Accounts payable and accruals 339,010 Capital lease(Note 7) 4031459 Total current liabilities 742,469 Non-Current Liabilities: Capital lease(Note 7) 5,346,352 Advances from other fimds(Note 4C) 918,005 Total Liabilities 7,006,826 NET POSITION(Note 8) Net investment in capital assets 44,495,802 Unrestricted 10,656,568 Total Net Position $55,152,370 See accompanying notes to financial statements 40 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF REVENUE,EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30,2015 Governmental Activities- Internal Service Funds OPERATING REVENUES Charges for services $3,991,331 Other revenue 1,152,515 Total Operating Revenues 5,143,846 OPERATING EXPENSES Supplies and services 344,237 OPEB expenses 1,842,228 Depreciation 2,594,736 Interest and fiscal charges 156,897 Total Operating Expenses 4,938,098 Operating Loss 205,748 NONOPERATING REVENUES(EXPENSES) Interest income 72,904 Gain from sales of property 50,680 Total Nonoperating Revenues 123,584 Loss Before Transfers 329,332 Transfer out(Note 4A) (169,895) Change in net position 159,437 Net Position-Beginning of year 54,992,933 Net Position-Ending of year $55,152,370 See accompanying notes to financial statements 41 CITY OF DUBLIN PROPRIETARY FUNDS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30,2015 Governmental Activities- Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from other funds $3,933,455 Payments to suppliers and service providers (2,538,738) Other revenues 1,152,515 Net cash flows from operating activities 2,547,232 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payments to other funds (532,925) Cash Flows from Noncapital Financing Activities (532,925) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest paid on capital lease (156,897) Capital lease repayment (378,995) Purchase of capital assets (1,407,412) Proceeds from sales of capital assets 276,976 Cash Flows from Capital and Related Financing Activities (1,666,328) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 72,904 Cash Flows from Investing Activities 72,904 Net Cash Flows 420,883 Cash and investments at beginning of year 11,285,670 Cash and investments at end of year $11,706,553 Reconciliation of operating loss to net cash provided by operating activities: Operating loss $205,748 Adjustments to reconcile operating loss to net cash provided by operating activities: Depreciation 2,594,736 Interest and fiscal charges 156,897 Change in assets and liabilities: Accounts receivable (57,876) Prepaid items (2,039) Accounts payable and accruals (350,234) Net cash flows from operating activities $2,547,232 See accompanying notes to financial statements 42 FIDUCIARY FUNDS Agency funds are used to account for assets held by the City as an agent for individuals, private organizations, and other governments. The fmancial activities of these funds are excluded from the Entity-wide fmancial statements,but are presented in separate Fiduciary Fund financial statements. 43 CITY OF DUBLIN FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET POSITION JUNE 30,2015 Agency Fund ASSETS Cash and investments(Note 3) $3,851,091 Accounts receivable 8,352 Due from trustee 433 Total Assets $3,859,876 LIABILITIES Accounts payable $1,023 Due to trustee 3,850,350 Due to bondholders 8,503 Total Liabilities $3,859,876 See accompanying notes to financial statements 44 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES I The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and fmancial reporting principles. Significant accounting policies are summarized below: A. Reporting Entity The City is a residential community with a significant regional commercial base, located in the TriValley area of Alameda County, California at the crossroads of Interstate Freeways 580 and 680. The City was incorporated as a municipal corporation on February 1, 1982. The total population estimate published by the California Department of Finance for January 1, 2015 was 55,844. This figure includes prisoners housed at the Alameda County Sheriffs Department Santa Rita Jail and at the Federal Correctional Institute. The City of Dublin was ranked based on total population at #159 out of 482 cities within California. The City operates under the Council-Manager form of government, with five elected Council members served by a full-time City Manager and staff. At June 30, 2015, the City's staff was comprised of 87 authorized permanent employees who were responsible for City-provided services.The City provides many traditional municipal services through contracts with both public and private agencies. Approximately 127.18 contract employees provide a variety of municipal services from City facilities.As of June 30,2015, the City had approximately 108 temporary and seasonal personnel that were on active payroll status. B. Basis of Presentation The City's Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A. These Standards require that the financial statements described below be presented. Government-wide Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City). These statements include the financial activities of the overall City government, except for fiduciary activities. Governmental activities generally are financed through taxes,intergovernmental revenues,and other nonexchange transactions. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the City's governmental activities.Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and(c)fees,grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues,including all taxes,are presented as general revenues. 45 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) I Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds. Separate statements for each fund category—governmental, proprietary, and fiduciary—are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings,result from nonexchange transactions or ancillary activities. C. Major Funds Major funds are defined as funds that have either assets, liabilities,revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds. The City reported the following major governmental funds in the accompanying financial statements: The General Fund- is the governments primary operating fund. It accounts for all financial resources of the City,except those required to be accounted for in another fund. The Affordable Housing Special Revenue Fund - is used to account for in-lieu fees received from developers of properties,which can only be used for the design,development,and construction of citywide affordable housing projects and/or support of affordable housing programs. The General Improvements Projects Capital Projects Fund-is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets,Parks,or Community Improvements projects. The Community Improvements Projects Capital Projects Fund- is used to manage the programming of funds and activities associated with major Capital Improvements Projects.The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would promote or enhance redevelopment,revitalization,beautification of the City's infrastructure and are not General Improvements, Streets or Parks related projects. The Parks Projects Capital Projects Fund- is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's parks and facilities. The Streets Projects Capital Projects Fund- is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's trails,highways,streets,roads,bridges,as well as street lighting,and storm drain systems. 46 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 I NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) I The Public Facilities Impact Fees Capital Projects Fund-is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of new public facilities within the City. The Fire Impact Fees Capital Projects Fund-is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of fire capital expansion projects within the City. The Traffic Impact Fees Capital Projects Fund - is used to account for impact fees received from developers of properties,which can only be used for the design,development and construction of street and highway projects which serve as part of the City's transportation network. The Dublin Crossing Contribution Capital Projects Fund— accounts for community benefit payments specific to the Dublin Crossings Project,separate from any developer impact fees generated by the project. The City also reports the following fund types: Internal Service Funds—Account for replacement of assets and internal charges collected for the purpose of funding retirement plan side-fund obligations,post-retirement healthcare activities, and the financing and funding for the energy efficiency capital lease project. These activities are provided to City departments on a cost-reimbursement basis. Fiduciary Funds — The City maintains one type of Fiduciary Funds - Agency Funds. The financial activities of these funds are excluded from the Government-wide financial statement, but are presented in separate Fiduciary Fund financial statements. Agency Funds are used to account for assets held by the City as an agent for the following purposes: The Dublin Boulevard Extension Assessment District is an Agency Fund, which is used to account for amounts held for debt service on the Dublin Boulevard Extension Project. The Agency Fund is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of operations. The City is not responsible for payment of the bonds and acts only as an agent to collect assessments, pay bondholders,and initiate foreclosure proceedings. The Associated Community Action Program(ACAP) is an Agency Fund. The City acts as the fiscal agent to collect and account for the contributions received and to coordinate administrative services leading to the agency ceasing its operation. ACAP is a Joint Powers Authority (JPA), whose members include the Alameda County and eleven of the thirteen incorporated cities in the County. (The cities of Berkeley and Oakland are not members). The JPA was formed to provide and administer social service related programs. The Agency fund is custodial in nature(assets equal liabilities)and therefore does not involve measurement of results of operations. The Fallon Village, Schaefer Ranch, Fallon Village Annex/Jordan Ranch, and Fallon Crossing Geological Hazard Abatement Districts(GHAD)are Agency Funds. Each fiscal year,the District Engineer prepares an Engineer's Report which includes the budget for the GHADs for that year. The annual budget consists of regular site monitoring, annual inspections, contract services for annual mitigation and repairs, and administrative costs. The funds collected through special assessment are placed into a dedicated reserve fund. The reserve fund is set aside to be used to mitigate and repair large, geologic hazards, such as landsides in the respective Subdivisions. 47 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) I D. Basis of Accounting The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources. Those revenues susceptible to accrual at both the City-wide and Fund level are property,sales and franchise taxes, current service charges, and interest revenue. Fines and licenses and permits are not susceptible to accrual because they are not measurable until received in cash. Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange,include taxes,grants,entitlements,and donations.On the accrual basis,revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants,categorical block grants,and general revenues. Certain indirect costs are included in program expenses reported for individual functions and activities. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the government's business-type activities and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1)charges to customers or applicants for goods,services,or privileges provided,2)operating grants and contributions,and 3)capital grants and contributions,including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise,general revenues include all taxes. 48 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) I Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's internal service funds are charges to customers for sales and services. Operating expenses for internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. E. Property Tax Revenues Alameda County assesses properties and bills, collects, and distributes property taxes to the City. The County remits the entire amount paid and handles the collection of all delinquencies. The City receives proportionate shares of prior year collections including interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. The property tax assessments are formally due on November 1 and February I, and become delinquent after December 10 and April 10, respectively.Taxes become a lien on the property effective January 1 of the preceding year. F. Use of Restricted Resources When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first,and then unrestricted resources as needed. G. Compensated Absences The City records a long-term compensated absences liability to recognize the financial effect of unused general leave and other accrued compensated leave. The liability will be paid from future resources primarily from the general fund. Compensated absences activities were as follows for the year ended June 30,2015: General Compensated Leave Leave Total Beginning Balance $945,174 $34,074 $979,248 Additions 828,558 5,144 833,702 Payments (834,936) (24,762) (859,698) Ending Balance $938,796 $14,456 $953,252 Current Portion $657,157 $10,119 $667,276 49 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) I H. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid costs in both government-wide and fund financial statements,using the consumption method. Prepaid costs in governmental funds are equally offset with nonspendable fund balance to indicate they do not constitute resources available for appropriation. Prepaids in governmental funds are treated using the consumption method,where the prepaid expenditure is recognized in the period in which the service is provided or the item is put into use. L Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (GAAP)requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.Actual results could differ from those estimates. J. New Funds In fiscal year 2014-2015,the City created the following new funds: The Measure BB Sales Tax Streets and Roads Fund—to account for an Alameda County voter approved increase in sales tax used for improvements on streets and roads. The Measure BB Sales Tax Bike/Pedestrian Fund — to account for an Alameda County voter approved increase in sales tax used for improvements on bike and pedestrian projects. IL Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position or balance sheet report is a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s)and so will not be recognized as an outflow of resources(expense expenditure)until then. In addition to liabilities,the statement of financial position or balance sheet report is a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s)and so will not be recognized as an inflow of resources(revenue)until that time. 50 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) I L. Implementation of Governmental Accounting Standards Board(GASB)Pronouncements Management adopted the provisions of the following Governmental Accounting Standards Board(GASB) Statements,which became effective during the year ended June 30,2015. GASB Statement No. 68 — In June 2012, GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27. The primary objective of this Statement is to improve accounting and fmancial reporting by state and local governments for pensions. This Statement establishes standards for measuring and recognizing liabilities, deferred outflows of resources, and deferred inflows of resources, and expense/expenditures. For defined benefit pensions, this Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. This Statement had a material impact on the City's fmancial statements. See Note 1M below. GASB Statement No. 69—In 2014, the GASB issued Statement No. 69, Government Combinations and Disposals of Government Operation. This Statement requires disclosures to be made about government combinations and disposals of government operations to enable financial statement users to evaluate the nature and financial effects of those transactions. This Statement did not have a material impact on the fmancial statements for the fiscal year 2015. GASB Statement No. 71—In 2014,GASB issued Statement No. 71,Pension Transition for Contributions Made Subsequent to the Measurement Date—an amendment of GASB Statement No. 68. The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or non-employer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. This Statement had a material impact on the City's financial statements. See Note 1M below. M. Prior Period Adjustment As a result of the implementation of GASB Statements 68 and 71, the City made an adjustment of $9,577,216 to the beginning net position of its governmental activities. NOTE 2—BUDGETS AND BUDGETARY ACCOUNTING I The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: > Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of fmancing 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. 51 Ammoirmierresmor CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 2—BUDGETS AND BUDGETARY ACCOUNTING(Continued)I • The City Manager is authorized to transfer budgeted amounts between line items, provided that the transfer is within the same fund, regardless of the specific department activity. This include the authority to transfer from the General Fund budgeted contingency amounts that are approved by the City Council during the budget adoption. The City Manager is authorized to increase revenue and expenditure budget for various departmental functions,when the net budget impact is zero. > Formal budgetary integration is employed as a management control device during the year for the general fund,special revenue funds and capital projects funds. > Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent with generally accepted accounting principles in the United States. > The City Manager is authorized to increase the appropriations for the following fiscal year in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to the year-end,but are expected to be expended in the next year consistent with the original purpose. > As part of the annual Budget adoption the City Council authorizes Staff to carry-over unexpended capital project appropriations, for those projects where work and expenditures will continue in the subsequent year. NOTE 3—CASH AND INVESTMENTS I The City's dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash as described under the policy section below. A. Policies California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110%of the City's cash on deposit,or first trust deed mortgage notes with a market value of 150%of the deposit, as collateral for these deposits. Under California law, this collateral is held in a separate investment pool by another institution in the City's name and places the City ahead of general creditors of the institution. The City pools cash from all sources and all funds,except certain specific investments within funds and cash with fiscal agents, so that it can be invested at the maximum yield,consistent with safety and liquidity,while individual funds can make expenditures at any time. The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called security instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Individual investments are generally made by the City's fiscal agents as required under its debt issues. In order to maximize security, the City employs the Trust Department of a bank as the custodian of all City managed investments,regardless of their form. The City's investments are carried at fair value,as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year. 52 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 3-CASH AND INVESTMENTS(Continued) I B. Classification Cash and investments are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City agreements. City: Cash and investments $197,010,818 Fiduciary Funds(separate statement): Cash and investments 3,851,091 Total cash and investments $200,861,909 Cash and investments as of June 30,2015,consist of the following: Cash on hand $5,325 Deposits with financial institutions 1,158,398 Investments 199,698,186 Total cash and investments $200,861,909 Proprietary fund type cash and investments are used in the preparation of the statement of cash flows as investments are not allocated to specific funds. Each of these funds' allocation of pooled cash and investments is considered cash and cash equivalents. C Investments Authorized by the California Government Code and the City's Investment Policy The City's Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City's Investment Policy where the City's Investment Policy is more restrictive. Minimum Maximum Maximum Maximum Credit Percentage Investment Authorized Investment Type Maturity Quality of Portfolio In One Issuer Negotiable Certificates of Deposit 5 years A-1 30% 20% Bankers'Acceptances 180 days A-1 40% 20%of Portfolio U.S.Treasury Bills and Notes 5 years N/A No Limit No Limit U.S.Government Agency Securities 5 years N/A 25%for callable 35% California Asset Management Program N/A N/A No Limit No Limit Commercial Paper 270 days A-1 25% 20%of Portfolio Time Certificates of Deposit 1 year N/A 10% No Limit State Local Agency Investment Fund N/A N/A 75% No Limit Asset-Backed Securities N/A AA 20% 5% Medium Term Notes 5 years A 30% 5% Money Market Funds N/A AAA 20% No Limit Municipal Securities 5 years A No Limit 0 53 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 3-CASH AND INVESTMENTS(Continued) I D. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally,the longer the maturity of an investment,the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity. Information about the sensitivity of the fair values of the City's investments(including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity or earliest call date: 12 Months 13 to 24 25 to 60 Investment Type or less Months Months Total Asset-Backed Securities $472,380 $7,043,089 $7,515,469 U.S.Treasury Notes $4,504,102 6,013,124 25,721,679 36,238,905 Medium-Term Notes 2,682,360 4,402,056 22,495,134 29,579,550 U.S.Government Agency Securities 14,043,368 16,999,892 27,369,221 58,412,481 Local Agency Investment Fund 46,014,928 46,014,928 California Asset Management Program 19,647,451 19,647,451 Money Market Funds 2,289,402 2,289,402 Total Investments $89,181,611 $27,887,452 $82,629,123 $199,698,186 The City is a participant in the Local Agency Investment Fund (LAN) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City reports its investment in LAW at the fair value amount provided by LAW,which is the same as the value of the pool share.The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations,mortgage-backed securities, other asset-backed securities, loans to certain state funds, United States Treasury Notes and Bills, and floating rate securities issued by federal agencies,government-sponsored enterprises,and corporations. At June 30,2015,these investments matured in an average of 239 days. The City is a participant in the California Asset Management Program(CAMP). CAMP is an investment pool offered by the California Asset Management Trust(the Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act (California Government Code Sections 6500 et seq., or the "Act") for the purpose of exercising the common power of its Participants to invest certain proceeds of debt issues and surplus funds. The Pool's investments are limited to investments permitted by subdivisions (a) to (n), inclusive,of Section 53601 of the California Government Code. The City reports its investments in CAMP at the fair value amounts provided by CAMP,which is the same as the value of the pool share. At June 30, 2015, the fair value approximated is the City's cost. At June 30, 2015,these investments have an average maturity of 32 days. The City's investments include Asset-Backed Securities in the amount of $6,167,676 that are highly sensitive to interest rate fluctuations to a greater degree than already indicated above. 54 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 3-CASH AND INVESTMENTS(Continued) I E. Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The actual ratings as of June 30, 2015 were provided by Standard and Poor's investment rating system except as noted. The Local Agency Investment Fund was not rated as of June 30,2015. Investment Type AAA/AAAm AA+ AA AA- A+ A Total Asset-Backed Securities $6,167,676 $6,167,676 U.S.Treasury Notes $36,238,905 36,238,905 Medium-Term Notes 2,682,360 3,242,558 $2,774,769 $4,690,022 $6,735,651 $9,454,190 29,579,550 U.S.Government Agency Securities 58,412,481 58,412,481 California Asset Management Program 19,647,451 19,647,451 Money Market Funds 2,289,402 2,289,402 Totals $30,786,889 $97,893,944 $2,774,769 $4,690,022 56,735,651 $9,454,190 152,335,465 Not rated Asset-Backed Securities 1,347,793 State Local Agency Investment Fund 46,014,928 Total Investments $199,698,186 F Concentration of Credit Risk Included in the table at Note D above are the following significant investments in any one issuer other than U.S.Treasury securities,mutual funds,and external investment pools. Reporting Reported Unit Issuer Investment Type Amount Entity-wide Federal Farm Credit Bank US Government Agency Securities $17,991,427 Federal Home Loan Bank US Government Agency Securities 12,797,563 Federal Home Loan Mortgage Corporation US Government Agency Securities 16,003,871 Federal National Mortgage Association US Government Agency Securities 11,602,319 55 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 4-INTERFUND TRANSACTIONS I A. Transfers Between Funds Transfers between funds during the fiscal year ended June 30,2015 were as follows: . Amount Fund Making Transfer Fund Receiving Transfers Transferred General Fund General Improvements Projects Capital Projects Fund $1,184,887 Community Improvements Projects Capital Projects Fund 68,190 Parks Projects Capital Projects Fund 140,017 Streets Projects Capital Projects Fund 184 1,393,278 Capital Projects Funds: Public Facilities Impact Fees Fund Parks Projects Capital Projects Fund 4,305,724 Traffic Impact Fees Fund Streets Projects Capital Projects Fund 1,364,415 Dublin Crossing Contributions Fund Parks Projects Capital Projects Fund 69,026 5,739,165 Special Revenue Funds: Non-Major Funds Streets Projects Capital Projects Fund 2,090,256 Parks Projects Capital Projects Fund 227,562 Affordable Housing Special Revenue Fund 5,300 2,323,118 Internal Service Funds: Building Replacement Internal Service Fund General Improvements Projects Capital Projects Fund 361 Equipment Replacement Internal Service Fund General Improvements Projects Capital Projects Fund 43,247 Energy Efficiency Internal Service Fund General Improvements Projects Capital Projects Fund 12,999 Streets Projects Capital Projects Fund 113,288 169,895 $9,625,456 (A) To fund capital project expenditures (B) To fund General Fund staffing/administrative costs for the project (C) To fund Affordable Housing Fund staffing/administrative costs for the project B. Current Interfund Balances Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. At June 30,2015,the following funds have balances due to the General Fund: Due to other funds Public Facilities Impact Fees Capital Project Fund $2,439,428 Fire Impact Fees Capital Project Fund 13,878 Dublin Crossing Contribution Capital Project Fund 42,887 Non-Major Funds 861,090 Total $3,357,283 56 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 I NOTE 4-INTERFUND TRANSACTIONS(Continued) I C Advances Between Funds 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 of the Fire Impact Fees Fund. Interest accrues on the advance at a rate equal to the City's return on its investment portfolio. During the fiscal year 2007-2008, the General Fund made a long-term advance to the Internal Service Fund PERS Side Fund to prepay CaIPERS for the City's Side Fund Obligation.The Side Fund was created in 2005 when CaIPERS assigned agencies with less than 100 participants to a risk sharing pool. The City had an unfunded liability at the time the City was assigned to the pool.As part of Ca1PERS Employer Contribution Rate,the City was scheduled to pay 4.319%of payroll for the next 17 years to eliminate the current side fund obligation. The benefit of prepayment resulted in reduction of the Employer Contribution rate in fiscal year 2007-2008 from 15.894%to 11.575%. The advance from General Fund is repaid annually, calculated at the rate of 4.319%of the total salary and be recorded as an Internal Service Fund retirement benefit expenditure with an offset to reduce the General Fund long-term advance. The following interfund balances existed at June 30,2015: Advances from other funds General Fund Fire Impact Fees Capital Projects Fund $456,729 PERS Side Fund Internal Service Fund 918,005 Total $1,374,734 NOTE 5—NOTES RECEIVABLE I The following table summarizes the notes receivable outstanding as of June 30,2015: First Time Homebuyer Loan Program $1,798,384 Eden(Wicklow)Square Senior Affordable Housing 2,786,177 Eden(Emerald Vista)Construction Loan-Family Housing 3,351,901 Eden(Emerald Vista)Construction Loan-Senior Housing 1,696,169 Total $9,632,631 Revolving Home Loans-As part of the City of Dublin First Time Homebuyer Loan Program(FTHLP),the City provides financial assistance, in the form of a deferred loan. The program targets first time homebuyers within a certain income range purchasing their first home in Dublin. Monthly payments of principal and interest are generally deferred until the homes are sold,or are in default. In certain situations the loan may also be due when the homeowners refinance their primary mortgage. The total outstanding amount due, including accrued simple interest at 3.5%per annum, as of June 30, 2015 was $1,798,384.As of June 30,2015,there were no loans in default. 57 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 5-NOTES RECEIVABLE(Continued) I Details of the Revolving Home Loans as of June 30,2015 were as follows: REPAYMENT OF ORIGINAL LOAN ACCRUED PRINCIPAL AND LOAN# LOAN DATE AMOUNT INTEREST INTEREST LOAN BALANCE #07-01 2/16/2007 $39,915 $11,693 $51,608 #07-03 3/30/2007 60,039 17,346 77,385 #07-04 10/31/2007 50,000 13,420 63,420 #07-09 9/21/2007 26,036 7,145 33,181 #07-10 9/72007 49,536 13,595 63,131 #07-11 10/12/2007 38,141 10,310 48,451 #07-12 10/82007 33,051 9,682 42,733 #07-14 10/22007 19,610 5,318 24,928 #07-15 12/42007 24,536 6,505 31,041 #07-16 12282007 8,000 2,102 10,102 #07-18 2292008 24,170 6,204 30,374 #07-20 5/30/2008 19,175 4,755 23,930 #08-01 8/192008 25,377 6,105 31,482 #08-03 10/20/2008 33,750 7,916 41,666 #08-05 2/32009 22,619 5,080 27,699 #08-06 2/11/2009 55,404 12,373 67,777 #08-07 4/102009 27,425 5,975 33,400 #08-08 6/302009 39,576 8,315 47,891 #09-02 9292009 36,595 7,369 43,964 #10-02 1262011 40,000 6,202 46,202 #10-03 5/62011 26,700 3,881 30,581 #10-04 7/72011 30,000 3,130 ($33,130) #11-01 12/9/2011 26,025 3,257 29,282 #11-02 10/142011 29,999 3,895 33,894 #11-03 11222011 30,839 3,892 34,731 #11-04 12282011 35,249 4,327 39,576 #11-05 1/13/2012 29,999 3,636 33,635 #11-06 1/132012 36,415 4,414 40,829 #11-07 1/192012 36,682 4,425 41,107 #11-08 1/31/2012 35,249 4,212 39,461 #11-09 2/15/2012 36,671 4,329 41,000 #11-10 4/32012 38,586 4,381 42,967 #11-11 6292012 29,999 2,730 (32,729) #12-01 10/302012 29,999 2,802 32,801 #12-02 1/312013 40,000 3,379 43,379 #12-03 3/22/2013 36,749 2,928 39,677 #12-04 4/122013 36,749 2,854 39,603 #12-09 4/25/2013 36,749 2,809 39,558 #12-05 4262013 35,249 2,691 37,940 #12-07 5/15/2013 35,249 2,626 37,875 #12-08 5/102013 35,249 2,643 37,892 #12-06 6/12/2013 31,499 2,262 33,761 #13-01 7/312013 40,000 2,685 42,685 #13-02 8/302013 40,000 2,570 42,570 #13-03 1022013 40,000 2,443 42,443 #13-04 12/92013 40,000 2,183 42,183 #13-05 3/7/2014 36,888 1,701 38,589 TOTAL $1,609,748 $254,495 ($65,859) $1,798,384 58 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 5—NOTES RECEIVABLE(Continued) Eden Senior Affordable Housing Loan - (Wicklow Square) — On September 23, 2002, the City selected Eden Housing, Inc. as the developer for the affordable senior housing at the site of the former library located at 7606 Amador Valley Boulevard. This site also houses a senior center that the City constructed during fiscal year 2003-2004. On February 1,2004,the City entered into an agreement and provided a loan in the amount of$2,248,248 to the Dublin Senior Limited Partnership to support the senior housing project. The interest on the outstanding principal balance of the loan is accrued at the rate of 3%simple interest per annum. The entire outstanding principal balance of the loan, together with the interest accrued, shall be payable in full on February 8,2059,the 55th anniversary of the Initial Disbursement Date of February 18, 2004. Repayments commenced on June 1,2006,and on the first day of each June,60%of the Surplus Cash generated by the project during the previous calendar year are remitted to reduce the outstanding indebtedness. Any payment not paid when due shall bear interest at a rate equal to 10% annum from the due date until it is paid in full.The outstanding amount as of June 30,2015 was$2,786,177. Arroyo Vista Predevelopment✓Construction Loan—Family and Senior Projects—(Emerald Vista) -On June 1, 2011, the City entered into an agreement to provide a loan to Eden Dougherty, L.P., a California nonprofit public benefit corporation,with a not-to-exceed$7,600,000 principal amount in accordance to the Arroyo Vista Disposition and Development Agreement dated July 25, 2007 concerning the redevelopment of the real property located at 6700 Dougherty Road in the City of Dublin. The City agreed to provide a loan to Eden to assist in financing the development of the Family Project and Senior Project. The City determined that the development of the project is in the interests of health, safety and welfare of the residents of the City,and that the City financing is necessary to make the project affordable to low and very low income households for a term of not less than fifty-five years. The note will not bear interest until the earlier of(i) the date that the project's construction financing is either converted to a permanent loan or repaid in full, or (ii)twelve months following the date of issuance of the fmal certificate of occupancy or equivalent for the project; thereafter, the outstanding principal balance of the loan shall bear interest at a rate equal to three percent simple annual interest. Annual payments shall be due and payable on a residual receipts basis in accordance with the formula set forth in the note. The entire outstanding principal balance and accrued interest shall be paid in full on the earlier of(i)the fifty fifth anniversary of the date of issuance of the final certificate of occupancy or (ii) the fifty-seventh anniversary of the loan origination date. The City has the right to accelerate maturity date and declare all sums immediately due and payable to the City upon the occurrence of an event of developer default, including developer's failure to commence or complete construction of the project within times period specified in the note. At June 30, 2015, the outstanding amounts are$3,351,901 or the Family Project and$1,696,169 for the Senior Project. I NOTE 6—CAPITAL ASSETS I Capital assets,which include buildings,machinery and equipment, and infrastructure assets(roads,bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and park improvements), are reported in the Governmental Activities columns of the Government-Wide Financial Statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 for general capital assets and $100,000 for infrastructure capital assets. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair market value on the date donated. Capital assets are depreciated over their estimated useful lives using the straight-line method. This means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets over the useful life of these assets. The amount charged to depreciation expense each year represents that year's pro rata share of the cost of capital assets. 59 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 6—CAPITAL ASSETS(Continued) I Depreciation of capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, and is reported on the Statement of Net Assets of the government-wide financial statements as a reduction in the book value of the capital assets. The City has assigned the useful lives listed below to capital assets. Infrastructure 20-75 Years Building and Improvements 20-3 8 Years Vehicles and Equipment 3-15 Years Capital assets include land,buildings,and equipment used in City operations. Infrastructure includes roads, bridges, curbs, sidewalks, drainage systems, street and traffic lights, park improvements and other improvements used by all citizens. A. Current Year Activities Capital asset activity during the fiscal year were as follows: Balance at Balance at June 30,2014 Additions Retirements Transfers June 30,2015 Governmental activities Capital assets not being depreciated: Land $171,301,925 S171,301,925 Streets Right of Way 35,425,288 35,425,288 Construction in Progress 32,519,388 $7,793,505 ($15,614,038) 24,698,855 Total capital assets not being depreciated 239,246,601 7,793,505 (15,614,038) 231,426,068 Capital assets being depreciated: Infrastructure 383,700,250 3,091,815 386,792,065 Buildings and Improvements 70,721,237 ($20,880) 5,089,849 75,790,206 Vehicles and Equipment 8,354,971 1,211,134 (2,162,705) 7,432,374 14,835,774 Total capital assets being depreciated 462,776,458 1,211,134 (2,183,585) 15,614,038 477,418,045 Less accumulated depreciation for. Infrastructure (211,931,670) (7,057,508) (218,989,178) Buildings and Improvements (32,361,838) (2,384,545) 20,880 (34,725,503) Vehicles and Equipment (6,071,379) (625,707) 2,150,011 (4,547,075) Total Accumulated Depreciation (250,364,887) (10,067,760) 2,170,891 (258,261,756) Net governmental fund program Capital assets being depreciated 212,411,571 (8,856,626) (12,694) 15,614,038 219,156,289 Governmental activity capital assets,net $451,658,172 ($1,063,121) ($12,694) $450,582,357 60 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 6—CAPITAL ASSETS(Continued) I B. Project Commitments At June 30,2015,the City had outstanding commitments with contractors for the following projects: Project Commitment Facility Construction $38,853 Facility Modification 290,240 Park Construction 25,296,631 Park Improvements 28,568 Street Improvements 557,007 Street Repair/Maintenance 140,886 Street Signal Improvements 23,487 Technology Upgrade 48,245 C. Capital Asset Contributions Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. GASB Statement 34 requires that these contributions be accounted for as revenues at the time the capital assets are contributed. D. Depreciation Allocation Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or programs are as follows: Governmental Activities General Government $958,451 Police 195,380 Fire 476,038 Public Works 5,543,928 Parks and Community Service 2,885,337 Community Development 8,626 Total depreciation expense $10,067,760 NOTE 7—LONG TERM DEBT I A. Current Year Transactions and Balances Balance at Balance at Due Within July 1,2014 Retirements June 30,2015 One Year GOVERNMENTAL ACTIVITY DEBT 2012 Chevron Energy Capital Lease $6,128,806 ($378,995) $5,749,811 $403,459 Total Governmental Activity Debt $6,128,806 ($378,995) $5,749,811 $403,459 61 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 7—LONG TERM DEBT(Continued) , B. 2012 Chevron Energy Capital Lease On June 12, 2012, City entered into an Energy Services Performance Contract with Chevron Energy Solutions to implement the recommended efficiency improvements in the City's ongoing efforts to reduce energy consumption and develop long-term cost savings through increased energy efficiency. The total project cost was estimated to be$7,430,976.City expects the full cost of improvements including interest can be offset through estimated energy savings. The project was funded through a combination of Lease Financing and Internal Service Fund reserves. The total amount financed by the bank was approximately $6,755,824, with interest rate fixed at 2.56% which occurred on October 1,2012.The first payment was made on September 28,2013.The financing is a lease arrangement with Bank of America holding title to the improvements being installed. Once all lease payments are made,improvements are fully owned by the City. The payments will be made over a fourteen-year period. The amount of annual lease payments is intended to produce consistent savings each year. Therefore, for payments in the initial years, when certain rebates and incentives are received, the payments will be higher. The average annual lease payment over the repayment period is estimated to be approximately $578,704 per year. The City anticipates that energy savings and incentives are projected to fully offset these costs. C Debt Service Requirements Governmental Activities:Capital Lease Year ending June 30 Principal Interest 2016 $403,459 $147,195 2017 429,110 136,867 2018 455,999 125,881 2019 396,728 114,208 2020 424,629 104,052 2021-2025 2,480,902 343,035 2026-2027 1,158,984 44,951 Total $5,749,811 $1,016,189 I NOTE 8—NET POSITION AND FUND BALANCES I A. Net Position Net Position is the excess of all the City's assets and deferred outflow of resources over all its liabilities and deferred inflow of resources, regardless of fund. Net Assets are divided into three captions. These captions apply only to Net Assets,which is determined only for proprietary funds and at the Government- wide level,and are described below: Net Investment in Capital Assets, describes the portion of Net Position which is represented by the current net book value of the City's capital assets. 62 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 I NOTE 8—NET POSITION AND FUND BALANCES(Continued) I Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects and debt service requirements. Unrestricted describes the portion of Net Position which is not restricted to use. B. Fund Balances Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund's cash and receivables, less its liabilities. The City's fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint: Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and long-term interfund loans are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category. Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources. Committed fund balances have constraints imposed by resolution of the City Council which may be altered only by formal action (resolution) of the City Council to establish, modify, or rescind a fund balance commitment. The City Council commits fund balance through the adoption of a resolution prior to the end of the fiscal year. Once adopted,the limitation imposed by the resolution remains in place until similar action is taken to remove or revise the limitation. Only the highest level action (a resolution) can be considered a commitment for fund balance classification purposes. Assigned fund balances are amounts constrained by the City's intent to be used for a specific purpose,but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. This category includes nonspendable when it is the City's intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed. Through a council resolution, the City Council has designated the City Manager to determine the amount of assigned Fund balance. Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds. In accordance with policies adopted by the City Council,the"Unassigned"negative fund balance represents $242,263 associated equivalent to the unrealized loss on investments and $25,927,845 based on goals to accommodate general cash flow. 63 CITY OF DUBLIN • NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 8—NET POSITION AND FUND BALANCES(Continued) I Detailed classifications of the City's Fund Balances,as of June 30,2015,are stated below: ?Mar Feeds Affordable Omni Community Public Facilities Fie Impact Tibia Dobai Ommd Hamop lciptoemmt hRm mad Perim 9a46 impact Ft= Fora Fora Oasis Noo-I6tja Fond Fad Pi' e p pt a pm a pemd Feed Fad Cmtnlomim Rods Total Na.SpadWes hyoid Bytom $27.010 Camatq Fodowmmt 68,008 87.010 li'Tu36M to Fes Food 470,606 60.000 m LoarTaAdmantoPERSSd 918,005 {70.606 a deFee unseal N4.B aW pead Pad Debate 918405 884 Dedaktrdtan 1,{73,691 Public Eddy Promos Stmt Maktmaom and Cmacioctim $1938,122 .367.9 x Hakh d WatOtuProgrm s,M7,844 s 435344 Hake.Pei Maklamta 300,000 . 435,8{{ 433,SN Ragabo{Pmfm 300.000 Impact Fa Capital Projects 491,433 481,437 Capital Lepcemmn Projects 533.664,323 017,260,167 $9.974.090 Honig 813,607,857 2,991,194 2,991,194 13,607,837 Sub Teti Y46149ad)Lo4 Salami 304000 13,607,157 33,664,323 17,260,167 11,114,501 76,146,848 Caaalttd lei Bommic&da ity 6,000,000 Dowaown Publclmp,uavomm 1,000,000 515,972 5854 84,967 1,021.743 ANadablaliaae8 1.000,000 Bmat id Ola Aquatic CmtaAddtrad Scope 3,000,000 1.x.099 Pawpaw Come mtdao 741,000 3.000.000 ol Fie SIMMS OPBB 9,196,000 741,000 Iwm at sod dNaw Oppateeid. 1372,785 9.196,000 Mamma Folly 250,023 1,372,783 Historic Pick 8&ta[aRaoah 5,272,210 250.020 Civic Cora Remake 136,737 5,272,210 Shrum Qatar Poi*Lot 775,000 136,737 Ad to Pablo Facility Fee 6,004000 773,002 am It CSy/SmoolPsojcb 46,013 6.000.000 Feu Spam Pak. 2,000,000 46,013 Storm Dail Captive 400.000 7,004000 One Time Imitative 1.341,409 400.009 1,341,409 Sub Med Committal Padlidam 38,531,179 15,922 834 4,967 31.337.922 Mdpedtar Bapkcyea Accrual Leave 953,251 011.1.11C.17.115 866,562 95733011.1.11C.17.115 OP�� 1.133,753 133363 Naa.9seata OP Cammiavata 3,132,016 1.133.736 Civic Color Amanda. 1,962143 3,177.013 Comrttaimtolatmd Seek*Feed 2,004000 1,96214 CAWephitLon a m aid 14608,113 2000.099 O 9avinCemNytiae 2,771,500 10,608,100 aety Posies md Past BmplepmctBasaia 9,366,884 2771,904 Madly RapconliaAdjustmmt 325,000 9.86000 Meeidpd fissional Nook 2.230,000 325.000 7,250400 Matti Aniseed pad Dolma. 35,873,264 33,873,264 OaWped Pled J lma Feed Balms Deficits IIaaictaod..1newamteQou) 842,263) MOM 047pfi07) (68,93{) (369.090) (930.01) Cob Flow Per City Policy 21,366,623 (366263) 21,566,627 21324.360 (21300) (474607) (68,934) (369.090) 20394,229 Tidal Tool Islam. 997,704494 513,602337 315.972 fW 84.967 (821,900) 533,664323 0470,607) 917,260,167 (968,934) 81474511 $1777,444 G Minimum Fund Balance Policies The City's Reserve Policy requires the City to maintain an Unrestricted General Funds, for cash flow purposes, of minimum equal to two months of budgeted operating expenditures with a goal to achieve a maximum of four months. As of June 30, 2015 the cash flow reserves, which are part of the Unassigned Fund Balance,were above the minimum at approximately 3.6 months,however they were below the desired target of 4 months. Funds may be appropriated as to Undesignated Capital Contribution by designation from City Council only for high priority one time capital expenditures provided the minimum fund balance would remain. 64 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 I NOTE 8—NET POSITION AND FUND BALANCES(Continued) I D. Fund Equity Deficits The funds listed in the table below had fund balance deficits at June 30,2015. These deficits are expected to be eliminated by future revenues. Fund Fund Deficit Streets Projects Capital Projects Fund $21,500 Fire Impact Fees Capital Projects Fund 470,607 Dublin Crossing Contribution Capital Projects Fund 68,934 SAFETEA-LU Special Revenue Fund 368,511 Federal Transportation(TIGER)Special Revenue Fund 579 PERS Side Fund Internal Service Fund 918,005 Energy Efficiency Internal Service Fund 5,659,414 I NOTE 9—DEFERRED COMPENSATION PLAN City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan,participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination of employment,retirement,death,or in an emergency as defined by the Plan. In accordance with GASB Statement No. 32, the funds have been placed in a trust administered by ICMA Retirement Corporation and are not available to the City's general creditors. Accordingly, the City does not report the assets in the financial statements. I NOTE 10—PENSION PLANS I A. General Information about the Pension Plans Plan Descriptions—All qualified permanent and probationary employees are eligible to participate in the City's Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees' Retirement System (CaIPERS). Benefit provisions under the Plans are established by State statute and City resolution. CaIPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CaIPERS website. Benefits Provided— CaIPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service,equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. 65 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 I NOTE 10—PENSION PLANS(Continued) I The Plans'provisions and benefits in effect at June 30,2015,are summarized as follows: Miscellaneous Miscellaneous PEPRA Prior to On or after Hire date January 1,2013 January 1,2013 Benefit formula 2.0%or 2.7%@ 55 2%@ 62 Benefit vesting schedule 5 years service 5 years service Benefit payments monthly for life monthly for life Retirement age 55 62 Monthly benefits,as a%of eligible compensation 2%to 2.7% 2% Required employee contribution rates 7.947% 6.308% Required employer contribution rates 15.685% 6.250% Contributions— Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CaIPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year,with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2015, the contributions recognized as part of pension expense for each Plan were as follows: Miscellaneous Miscellaneous PEPRA Contributions-employer $1,108,919 $22,621 B. Pension Liabilities,Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30,2015,the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows: Proportionate Share of Net Pension Liability Miscellaneous $7,835,901 Miscellaneous PEPRA 1,535 Total Net Pension liability $7,837,436 66 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 10—PENSION PLANS(Continued) The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2014, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2013 rolled forward to June 30, 2014 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for each Plan as of June 30,2013 and 2014 was as follows: Miscellaneous Miscellaneous PEPRA Proportion-June 30,2013 0.32675% 0.00006% Proportion-June 30,2014 0.31705% 0.00006% Change-Increase(Decrease) -0.01% 0.00% For the year ended June 30,2015,the City recognized a negative pension expense of$162,147. At June 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Pension contributions subsequent to measurement date $1,063,191 Differences between actual and expected experience Changes in assumptions Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions 4,668 ($11,750) Net differences between projected and actual earnings on plan investments (2,633,742) Total $1,067,859 ($2,645,492) The $1,063,191 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Year Ended Increase(Decrease) June 30 in Pension Expense 2016 ($660,966) 2017 (660,966) 2018 (660,458) 2019 (658,434) 67 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 10—PENSION PLANS(Continued) I Actuarial Assumptions — The total pension liabilities in the June 30, 2013 actuarial valuations were determined using the following actuarial assumptions for both the Miscellaneous and Miscellaneous PEPRA plans: Valuation Date June 30,2013 Measurement Date June 30,2014 Actuarial Cost Method Entry-Age Normal Cost Method Actuarial Assumptions: Discount Rate 7.50% Inflation 2.75% Payroll Growth 3.0% Projected Salary Increase Varies by Entry Age and Service Investment Rate of Return 7.50%(1) Mortality Derived using CaIPERS'Membership Data for all Funds (2) (1) Net of pension plan investment expenses,including inflation (2)The mortality table used was developed based on CaIPERS'specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table,please refer to the 2014 experience study report. The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2013 valuation were based on the results of a January 2014 actuarial experience study for the period 1997 to 2011. Further details of the Experience Study can found on the CaIPERS website. Discount Rate—The discount rate used to measure the total pension liability was 7.50% for each Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CaIPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.Based on the testing,none of the tested plans run out of assets. Therefore, the current 7.50 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.50 percent will be applied to all plans in the Public Employees Retirement Fund(PERF).The stress test results are presented in a detailed report that can be obtained from the CaIPERS website. According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without reduction for pension plan administrative expense.The 7.50 percent investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.65 percent. Using this lower discount rate has resulted in a slightly higher Total Pension Liability and Net Pension Liability. CaIPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference. CaIPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management (ALM) review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will require Board action and proper stakeholder outreach. For these reasons, CaIPERS expects to continue using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the 2017-18 fiscal year. CaIPERS will continue to check the materiality of the difference in calculation until such time as we have changed our methodology. 68 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 10—PENSION PLANS(Continued) I The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation)are developed for each major asset class. In determining the long-term expected rate of return, CaIPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund.The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long- term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.These rates of return are net of administrative expenses. New Strategic Real Return Real Return Asset Class Allocation Years 1- 10(a) Years 11+(b) Global Equity 47.0% 5.25% 5.71% Global Fixed Income 19.0% 0.99% 2.43% Inflation Sensitive 6.0% 0.45% 3.36% Private Equity 12.0% 6.83% 6.95% Real Estate 11.0% 4.50% 5.13% Infrastructure and Forestland 3.0% 4.50% 5.09% Liquidity 2.0% -0.55% -1.05% Total 100% (a) An expected inflation of 2.5%used for these periods. (b) An expected inflation of 3.0%used for these periods. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate— The following presents the City's proportionate share of the net pension liability for each Plan,calculated using the discount rate for each Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate: Miscellaneous Miscellaneous PEPRA 1%Decrease 6.50% 6.50% Net Pension Liability $13,961,153 $2,735 Current Discount Rate 7.50% 7.50% Net Pension Liability $7,835,901 $1,535 1%Increase 8.50% 8.50% Net Pension Liability $2,752,524 $539 69 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 I NOTE 10—PENSION PLANS(Continued) I Pension Plan Fiduciary Net Position — Detailed information about each pension plan's fiduciary net position is available in the separately issued CaIPERS financial reports. I NOTE 11—OTHER POST EMPLOYMENT BENEFITS I The City provides certain health care benefits for retirees, as required under a contract signed with PERS. All former employees who retire with the City under PERS are eligible for these benefits. GASB 45 requires public agencies to estimate their Other Post Employment Benefits (OPEBs) and account for the future liability. Rather than use the "pay as you go" system and account for retiree benefits as they are due, GASB 45 requires the agencies to account for the expenses as benefits are accrued for the employees. On June 29, 2007, the City established an agreement with the California Public Employees' Retirement System (Ca1PERS) to set aside funds and deposit into the California Employer's Retiree Benefit Trust (CERBT) fund to accumulate, and distribute assets for the exclusive benefit of retirees and their beneficiaries. Plan assets are irrevocable and may not be used for any purpose other than funding post-retirement health care. The CERBT fund is an agent multiple employer plan and in order to ensure that the CERBT fund remains compliant with all reporting requirements,the CALPERS is responsible for publishing aggregate GASB 43 compliance Financial Statements,Notes, and Required Supplementary Information(RSI). The information may be found on CaIPERS web site at www.calpers.ca.gov. 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 Policy - There is no requirement imposed by CaIPERS, 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 CaIPERS Board of Administration and applicable laws. Within the parameters of the law, individual contracting agencies, such as the City, are allowed to establish and amend the level of contributions made by the employer towards the monthly cost of the plans. Changes to the employer contribution rate towards retiree benefits are recorded in a resolution adopted by the City Council. The City has established a policy to make contributions to an Internal Service Fund, for the purpose of funding its calculated obligations over a period of time, with the intent the funds will be transferred to CaIPERS periodically at which time the transfers will be recorded as Cash with Fiscal Agent in a Trust Fund. The amount necessary to fund future benefits is based on projections from the June 30, 2013 Actuarial Study completed by Bartel and Associates, LLC in accordance with GASB Statement 45, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. 70 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 11—OTHER POST EMPLOYMENT BENEFITS(Continued) I During fiscal year 2006-2007, the City made arrangements with CaIPERS to retain the OPEB assets to finance future Retiree Health Benefits. On June 29, 2007, the City transferred $5,468,611 from the Internal Service Fund into the California Employers' Retiree Benefit Trust Fund(CERBT). The City has elected a one-year amortization period for the OPEB plan assets deposited into the CERBT, as permitted under GASB Statement 45, paragraph 13F, amortization periods allow for a maximum of 30 years with no minimum years. Annual OPEB Cost and Net OPEB Obligation - The City's annual Other Post Employment Benefit (OPEB)cost(expense)is calculated based on the Annual Required Contribution of the employer(ARC), an amount actuarially determined in 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 $1,350,000 Annual OPEB expense 1,350,000 Contributions made (1,309,464) Decrease(increase)in net OPEB asset 40,536 Net OPEB asset-beginning of year 35,889 Net OPEB(obligation)-end of year ($4,647) The City Retiree Health annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2014-15,and the preceding years were as follows: Fiscal Annual Annual OPEB Net OPEB Year Ended OPEB Cost Cost Contributed Asset(Obligation) 6/30/2013 $1,181,000 102% $17,717 6/30/2014 1,306,000 101% 35,889 6/30/2015 1,350,000 97% (4,647) Funded Status and Funding Progress -As of June 30, 2013,the most recent actuarial valuation date,the plan was 64.6% funded. The Actuarial Accrued Liability (AAL) for benefits was $14,823,000 and the Actuarial Value of Plan Asset was $9,574,000 resulting in an Unfunded Actuarial Accrued Liability (UAAL) of$5,249,000. The covered payroll (annual payroll of active employees covered by the plan) was$8,972,000 and the ratio of UAAL to the covered payroll was 58.5 percent. Annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2015 were as follows: Underfunded Entry Age (Overfunded) Actuarial Actuarial Actuarial UAAL as a Actuarial Value of Accrued Accrued Funded Covered Percentage of Valuation Assets Liability liability Ratio Payroll Covered Payroll Date (A) (13) (B-A) (A/B) (C) [B-AYCI 6/30/2013 $9,574,000 $14,823,000 $5,249,000 64.59% $8,972,000 58.5% 71 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 11—OTHER POST EMPLOYMENT BENEFITS(Continued) Actuarial valuations for OPEB plans involves estimates of the value of the reported amounts and assumptions about the probability of events far into the future. These actuarially determined amounts are subject to continual revisions as actual results are compared to past expectation and new estimates are made about the future. The schedule of funding progress presented immediately following the financial statements as required supplementary information, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. 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 30,2013 actuarial valuation,the actuarial cost method used is Entry Age Normal(EAN) cost method. Under the EAN cost method,the plan's Normal Cost is developed as a level percent of payroll throughout the participants' working lifetime. Entry age is based on current age minus years of service. Actuarial Accrued Liability(AAL) is the cumulative value on the valuation date, of prior Normal Cost. For the retirees, the AAL is the present value of all projected benefit. The Unfunded AAL is being amortized as a level dollar closed 15 year basis, as a level percent of payroll with a remaining amortization period at June 30,2014 of 15 years. GASB 45 requires the interest rate to represent the underlying expected return for the source of funds used to pay benefits. The actuarial methods and assumptions included 6.75 percent interest rate, representing the long term expected rate of return on the CaIPERS Trust Fund including a margin for adverse earnings.Annual inflation assumed to increase at one half of the Kaiser family premium increase and Aggregate Payroll assumed to increase at 3.25 percent per annum. The study also used assumptions for the salary merit and longevity increases, and demographic assumptions such as mortality,withdrawal, and disability based on CaIPERS 1997-2007 Experience Study. Retirement assumption was also based on CaIPERS 1997-2007 Experience Study of the Miscellaneous Plan 2.7% at 55 years, with expected retirement age of approximate 58 for both females and males. The health care cost trend rate is the rate of change in per capita health claims costs over time as a result of factors such as medical inflation, utilization of healthcare services, plan design, and technological developments. The following table includes the annual healthcare cost trend rate used in the Actuarial Valuation: Year Non-Medicare Medicare HMO&PPO HMO&PPO 2013 Actual Premiums Actual Premiums 2014 Actual Premiums Actual Premiums 2015 8.0% 8.3% 2016 8.0% 8.3% 2017 8.0% 8.3% 2021+ 5.0% 5.0% 72 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 11—OTHER POST EMPLOYMENT BENEFITS(Continued) I B. Dougherty Regional Fire Authority Health Plan Dougherty Regional Fire Authority Background- In 1988, the cities of Dublin and San Ramon formed Dougherty Regional Fire Authority (DRFA), a Joint Powers Agency (JPA). The JPA 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,JPA personnel were absorbed by the two new service providers pursuant to a mutual agreement. The JPA has remained intact to conclude the fmancial affairs of the entity. This includes residual retiree obligations and workers compensation liabilities. Dublin's share of all DRFA close-out expenses, including retiree medical benefits, is 57.51% of the actual costs, with the City of San Ramon paying 42.49% of the costs. The two cities have entered into a binding agreement to share these expenses on this basis. The City of Dublin is presenting information only for its contractual share of the obligations. Plan Description - City of Dublin share of DRFA Retiree Health Plan is a single-employer defined benefit healthcare plan administered by the California Public Employees Retirement System (Ca1PERS). 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 DRFA,to purchase health insurance benefits. Funding Policy - There is no requirement imposed by Ca1PERS, to contribute any amount beyond the pay-as-you-go contributions. The cost of monthly insurance premiums may be shared between the retiree and DRFA. 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 DRFA, 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 DRFA Management Committee. For fiscal year 2014-2015, the City contributed $43,253 to the plan, all of which was for current premiums. No other contributions were made. Annual OPEB Cost and Net OPEB Obligation- The City of Dublin's share of the DRFA Retiree Health Plan annual other post employment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The ARC represents a level of funding that, if paid on an on-going basis, is projected to cover costs. This plan is in a unique status since there are no active members and no "normal" cost component. Therefore, 100% of the calculated ARC relates to the amortization of unfunded actuarial liabilities(or funding excess)over a period not to exceed thirty years. 73 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 I NOTE 11—OTHER POST EMPLOYMENT BENEFITS(Continued) The following table shows the components of the City of Dublin's share of DRFA annual OPEB cost for the year,the amount actually contributed to the plan and changes in the Dublin Share of DRFA net OPEB and the City of Dublin share of the obligation to DRFA Retiree Health Plan: Annual required contribution $71,294 Interest on net OPEB obligation 11,389 Adjustment to annual required contribution (28,830) Annual OPEB expense 53,853 Contributions made (41,950) Increase(decrease)in net OPEB obligation 11,903 Net OPEB(asset)-beginning of year 303,366 Net OPEB(asset)-end of year $315,269 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 fiscal year 2014-2015 and the two previous years were as follows: Fiscal Annual Annual OPEB OPEB Year Ended OPEB Cost Cost Contributed Obligation 6/30/2013 $59,273 77.08% $290,299 6/30/2014 53,295 75.48% 303,366 6/30/2015 53,853 80.32% 315,269 Funded Status and Funding Progress -As of June 30,2013,the most recent actuarial valuation date,the plan was not funded.Therefore,both the actuarial accrued liability for benefits and the unfunded actuarial accrued liability (UAAL) equaled $762,433. Since there are no active employees, it is not possible to calculate a comparison of the liability to the payroll. Actuarial Methods and Assumptions-Projections of benefits for financial reporting purposes are based on the substantive plan(the plan as understood by the employer and the plan members)and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets,consistent with the long-term perspective of the calculations. A sole or agent employer that meets any of the eligibility criteria in paragraph 11 of GASB 45 is permitted to apply the alternative measurement method set forth in paragraphs 33 through 35 of GASB45, which allows for certain simplifying modifications to the selection of assumptions for purposes of measuring the ARC (Annual Required Contribution) and the plan's actuarial accrued liabilities and funded status. In the June 30, 2013 actuarial valuation prepared by Bartel and Associates, LLP the actuarial used was Alternative Measurement Method with the Entry Age Normal (EAN) cost method. Under the EAN cost method,the plan's Normal Cost is developed as a level percent of payroll throughout the participants' working lifetime. The actuarial assumptions included a 4.0% investment rate of return (net of administrative expenses), calculated based on the funded level of the plan at the valuation date. The expected rate of increase in healthcare insurance premiums is based on projections of the Ca1PERS 1997-2011 Experience Study. The increases are as follows: 74 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 11—OTHER POST EMPLOYMENT BENEFITS(Continued) Year Non-Medicare Medicare HMO&PPO HMO&PPO 2013 Actual Premiums Actual Premiums 2014 Actual Premiums Actual Premiums 2015 8.0% 8.3% 2016 7.5% 7.8% 2017 7.0% 7.2% 2021+ 5.0% 5.0% The Actuarial Accrued Liability (AAL) is the cumulative value, on the valuation date, of prior Normal Costs. For retirees,the AAL is the present value of all projected benefits. Although GASB45 allows an amortization period not to exceed 30 years, due to the closed status of the plan, the unfunded AAL is amortized over 15 years as a level of dollar amount. NOTE 12-HEALTH,GENERAL LIABILITY AND WORKERS'COMPENSATION COVERAGE A. Risk Pool The City participates in the ABAG PLAN Corporation,a non-profit public benefit corporation established to provide liability insurance coverage, claims administration and risk management services, and legal defense to its participating members. The liability insurance coverage is provided by a combination self- insurance collectively funded by ABAG PLAN Corporation and the purchase of commercial insurance for large losses. ABAG PLAN provides the first $5 million of coverage as self-funded general liability and automobile liability coverage per occurrence. ABAG PLAN purchases commercial excess liability insurance in two layers of$10 million and $15 million each to provide total coverage of claims up to $30 million per occurrence. The City has a deductible of$50,000 per occurrence. ABAG PLAN also provides$1 million of employee bonds(theft coverage)in excess of a$5,000 deductible. ABAG PLAN also provides property insurance coverage. This coverage is also comprised of a self- insured layer combined with commercial insurance. The first $100,000 of losses are self-funded by ABAG PLAN form premiums collected from the participants in the program. ABAG PLAN purchases an insurance policy to cover losses above$100,000 per occurrence and the annual aggregate losses of the pool are insured above $250,000. The insurance provides coverage for property damage among all participants to $1 billion. The City deductible for property and vehicle losses is $5,000. For any single loss in excess of$25,000 the deductible is waived. The City's contributions to the ABAG PLAN for liability coverage are based on a formula which considers the ratio of the City's payroll to the total payrolls of all entities participating in the same layer of each program, in each program year's loss history and population. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. There have been no significant reductions in any of the City's areas of insurance coverage and no settlement amounts have exceeded coverage in the past three years. Audited financial information for the ABAG PLAN can be obtained from ABAG PLAN,P.O.Box 2050, Oakland,California 94604-2050. 75 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 12 - HEALTH, GENERAL LIABILITY AND WORKERS' COMPENSATION COVERAGE (Continued) B. Worker's Compensation Coverage The City participates in the Cities Group, created by a joint powers agreement to provide workers' compensation coverage paid from the pooled contributions of its membership with no deductible to the City. Any claim in excess of$1 million is covered up to $10 million through a policy with New York Marine Insurance Corp purchased by the Cities Group. The Cities Group acts as an administrator,claim adjuster and provides other risk management services as provided by State law. Each member of the Cities Group pays a premium commensurate with the level of coverage requested and shares surpluses and deficits proportionately to its participation in the Cities Group. During the year ended June 30,2015, the City paid Cities Group$6,327 in premiums. At June 30,2015,the City of Dublin's share of equity in the Cities group amounted to$17,622. Financial Statements may be obtained from the Cities Group,PO Box 111,Burlingame,CA 94011-0111. C. Liability for Uninsured Claims The GASB requires municipalities to record their liability for uninsured claims and reflect the current portion of this liability as expenditures in their financial statements. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or the uninsured portion of these claims in the ABAG PLAN and the Cities Group plans. GASB Statement No. 10, "Financial Reporting for Risk Financing and Related Insurance Issues" require that this amount be separately identified and recorded as a liability. The City's liability for uninsured claims, limited to general liability and workers compensation claims as discussed above, includes a provision for incurred but not reported (IBNR) losses. This amount was estimated based on claims experience. The reserve recorded,$154,500,is adequate to cover 3.09%IBNR claims. Therefore no adjustment was made in fiscal year 2014-2015 as the City's exposure is for the $50,000 deductible per General Liability claim. The City has no actual liabilities that are due and payable at June 30,2015. NOTE 13—JOINT POWERS AGREEMENTS The City participates in joint ventures discussed below through separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds,the power to make and execute contracts and the right to sue and be sued. Each joint venture is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint venture, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of these joint ventures are not the City's responsibility and the City does not have an equity interest in the assets of each joint venture except upon dissolution of the joint venture. 76 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 • NOTE 13—JOINT POWERS AGREEMENTS(Continued) A. Animal Control Services The Cities of Dublin,Pleasanton, and Livermore and the County of Alameda have entered a joint powers agreement, dated September 15, 1992, under which Alameda County constructed an animal shelter facility on County's property. The agreement provided that the County would retain ownership of the land and that each participating agencies would receive an equity interest in the facility. Certificates of Participation were issued to construct the facility. Under the agreement the entities will share in the debt service costs of the project based upon their use of the animal shelter. The original total principal portion of the scheduled debt is $4,523,877. The City's share for the annual debt service requirements are based upon the statistics of live animals handled in the shelter.In fiscal year 2014-2015 the City contributed $35,536 of the total annual debt service payment. In addition, the City contributed $143,284 or 13.51% toward the annual operating shelter services and $68,817 representing 8.22%of the animal field service expenditures. The City has not recorded an equity interest for the animal shelter agreement.As noted above the ongoing fmancial interest is limited to the statistics of live animals handled in the appropriate fiscal year.No Joint Powers Authority was established as part of this agreement therefore, separate fmancial statements are not issued. B. Associated Community Action Program(ACAP) The City is a member of ACAP, a Joint Powers Authority established in July 12, 1994, with a governing board comprised of elected officials from its 13 member agencies. The members include Alameda County and the Cities of Alameda,Albany, Dublin,Emeryville, Fremont,Hayward,Livermore,Newark, Piedmont, Pleasanton, San Leandro, and Union City. The purpose of the ACAP was to plan, develop, and administer social services programs under the federal Community Services Block Grant Program. These programs included housing assistance, jobs training and education, and youth development services. Due to significant financial issues,the Board of Directors of ACAP in February 2011 chose to terminate its participation in various state and federal program and to effectively cease its operations. Management Partners,Inc.was engaged to manage and implement the close of ACAP. The representatives of the members and the ACAP Board of Directors have determined that the original WA that created ACAP should be amended to reflect the current status of ACAP. On October 18,2011, the City Council approved an Amended and Restated Joint Powers Agreement to restructure ACAP's and delegate oversight powers to allow the County and the City Managers,rather than the elected officials,to continue its obligations such as records retention, legal and claims, and audit compliance and to limit future exposure for member agencies. During fiscal year 2014-2015 the City of Dublin has also acted as a fiscal agent,which was comprised of collecting contributions from the members, processing payments on behalf of ACAP, and issuing financial reports.In fiscal year 2014-2015,the ACAP Board of Directors determined that no contributions would be made by member agencies, unless additional close-out funds are needed. The City will incur a pro-rata share of the on-going costs. 77 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 13—JOINT POWERS AGREEMENTS(Continued) Unaudited condensed financial information as of June 30,2015 for ACAP is presented below: Total assets $237,984 Total liabilities 888,861 Total net assets (650,877) Total revenues (601) Total expenses 52,361 Increase(decrease)net position (52,962) NOTE 14—OTHER COMMITMENTS AND CONTINGENT LIABILITIES I The City participates in several Federal and State grant programs. These programs have been audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act and applicable State requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts,if any,to be immaterial. The City is a defendant in a number of lawsuits that have arisen in the normal course of business, the outcome of which cannot be predicted with certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a material adverse effect on the financial position of the City. A. Reimbursements to the City of Pleasanton On January 23, 1996,the City adopted a fee for the purpose of reimbursing the City of Pleasanton for the costs of making improvements to the interchanges 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 Pleasanton. The amount of the contingent liability outstanding at June 30, 2015, was $3,672,837 which is net of the $334,476 in payments made by the City to reduce this contingent liability during the year. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for reimbursement of these improvements. B. 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, 2015, the balance was $189,259 which includes accrued interest. The advance is to be repaid from developer fees, charges, and other non-tax revenues from the benefiting areas and has no specific due date. The City's General Fund shall not be obligated to repay this obligation. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for repayment of the advance. 78 CITY OF DUBLIN NOTES TO BASIC FINANCIAL STATEMENTS Fiscal Year Ended June 30,2015 NOTE 14—OTHER COMMITMENTS AND CONTINGENT LIABILITIES(Continued) C. Other Development Agreements The City entered into several agreements with various developers and merchant builders who are developing numerous residential and commercial projects throughout the City. The City agreed to grant the developers' impact fee credits since the developers constructed certain improvements beyond what was needed to serve their specific projects. The value of credits does not increase for inflation nor do they accrue interest. Any unused credits may be used by the developers on other projects located within the Traffic Impact Fee area. The value of the credits as of June 30,2015 was$106,682,565. The addition of$2,047,118 to the credit balance was mainly due to value appreciation by converting parkland acreage to a dollar value,and credit used for the fiscal years was$12,659,644. 79 This Page Left Intentionally Blank REQUIRED SUPPLEMENTAL INFORMATION City of Dublin Cost-Sharing Multiple-Employer Defined Pension Plan-Miscellaneous Plans As of June 30,2015 Schedule of the Plan's Proportionate Share of the Net Pension Liability and Related Ratios as of the Measurement Date Last 10 Years* 2015 Miscellaneous Miscellaneous PEPRA 6/30/2014 6/30/2014 Plan's proportion of the Net Pension Liability(Asset) 0.12593% 0.00002% Plan's proportion share of the Net Pension Liability(Asset) $7,835,901 . $1,535. Plan's Covered Employee Payroll $8,425,970 $290,948 Plan's Proportionate Share of the Net Pension Liability/(Asset)as a Percentage of its Covered-Employee Payroll 93.00% 0.53% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 83.03% 83.03% Plan's Proportionate Share of Aggregate Employer Contributions $1,036,660 $203 *-Fiscal year 2015 was the 1st year of implementation,therefore only one year is shown. 82 City of Dublin Cost-Sharing Multiple Employer Defined Pension Plan-Miscellaneous Plans For the Fiscal Year Ended June 30,2015 Schedule of Contributions Last 10 Years* 2015 Miscellaneous Miscellaneous PEPRA Fiscal Year 2014-2015 Fiscal Year 2014-2015 Actuarially determined contribution $1,411,959 $19,063 Contributions in relation to the actuarially determined contributions (1,411,959) (19,063) Contribution deficiency(excess) $0 $0 Covered-employee payroll $8,180,553 $282,474 Contributions as a percentage of covered- employee payroll 17.26% 6.75% Notes to Schedule Valuation date: 6/30/2013 6/30/2013 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age Amortization method Level percentage of payroll,closed Remaining amortization period 30 years Asset valuation method 5-year smoothed market Inflation 2.75% Salary increases Varies by Entry Age and Service Investment rate of return 7.5%Net of Pens ion Plan Investment and Administrative Expenses; includes Inflation Retirement age 50 Safety,57 yrs.Safety PEPRA Mortality Derived using CaIPERS Membership Data for all Funds *-Fiscal year 2015 was the 1st year of implementation,therefore only one year is shown. 83 City of Dublin Other Post-Employment Retirement Benefits For the Fiscal Year Ended June 30,2015 Schedule of Funding Progress Underfunded Entry Age (Overfunded) Actuarial Actuarial Actuarial UAAL as a Actuarial Value of Accrued Accrued Funded Covered Percentage of Valuation Assets Liability Liability y Ratio Payroll Covered Payroll Date (A) (B) (B-A) (A/B) (C) [(B-AYC7 6/30/2004 SO $4,973,780 $4,973,780 0.00% $6,320,280 78.7% 6/30(2007 5,694,000 6,159,000 465,000 92.45% 6,697,747 6.9% 6/30/2009 5,326,000 6,990,000 1,664,000 76.19% 7,618,000 21.8% 6/30/2011 6,823,000 11,557,000 4,734,000 59.04% 7,830,000 60.5% 6/30/2013 9,574,000 14,823,000 5,249,000 64.59% 8,972,000 58.5% 84 SUPPLEMENTARY INFORMATION This Page Left Intentionally Blank BUDGETED MAJOR GOVERNMENTAL FUNDS OTHER THAN GENERAL FUND AND SPECIAL REVENUE FUNDS The General Improvements Projects Capital Projects Fund- is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets,Parks,or Community Improvements projects. The Community Improvements Projects Capital Projects Fund- is used to manage the programming of funds and activities associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would promote or enhance redevelopment, revitalization, beautification of the City's community and are not General Improvements, Streets or Parks related projects. The Parks Projects Capital Projects Fund- is used to manage the programming of funds and activities associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's parks and facilities. The Streets Projects Capital Projects Fund- is used to manage the programming of funds and activities associated with major the Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's highways,streets,roads,bridges,lighting,or the storm drain systems. The Public Facilities Impact Fees Capital Projects Fund- is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of new public facilities within the City. The Fire Impact Fees Capital Projects Fund- is used to account for fees received from developers of properties,which can only be used for the design,development,and construction of fire capital expansion projects within the City. The Traffic Impact Fees Capital Projects Fund-is used to account for fees received from developers of properties,which can only be used for the design, development and construction of street projects within the City. The Dublin Crossing Contribution Capital Projects Fund—accounts for community benefit payments specific to the Dublin Crossings Project, separate from any developer impact fees generated by the project. 87 A , CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) Property taxes: Current year secured $19,738,751 $23,130,981 S22,292,207 (S838,774) Current year unsecured 1,193,100 1,193,100 1,353,039 159,939 Supplemental property tax 455,818 455,818 773,560 317,742 Prior year secured 387,000 387,000 381,222 (5,778) Prior year unsecured 5,125 5,125 31,421 26,296 Property tax penalties 88,048 88,048 74,715 (13,333) In lieu property tax 4,030,439 4,030,439 4,531,787 501,348 Sub-total 25,898,281 29,290,511 29,437,951 147,440 Taxes other than property: Sales and use tax 12,863,200 13,584,778 13,811,369 226,591 In lieu sales tax 4,823,496 4,776,438 4,759,687 (16,751) Real property transfer tax 475,000 715,000 1,104,428 389,428 Hotel transient occupancy tax 950,000 950,000 1,319,409 369,409 Franchise taxes 3,388,800 3,388,800 3,735,817 347,017 Sub-total 22,500,496 23,415,016 24,730,710 1,315,694 Licenses and permits: Animal licenses 7,000 7,000 5,817 (1,183) Building permits 3,379,111 4,739,686 5,448,086 708,400 Business license 139,932 139,932 159,815 19,883 Construction and demolition permits 124,654 124,654 131,868 7,214 Encroachment permits 57,000 57,000 125,073 68,073 Fire permits 96,196 96,196 93,859 (2,337) Grading permits 2,652 2,652 3,432 780 Planning permits 52,740 52,740 49,157 (3,583) Miscellaneous permits 5,692 5,692 8,578 2,886 Sub-total 3,864,977 5,225,552 6,025,685 800,133 Fines and forfeitures: Parking citations 72,430 72,430 73,483 1,053 Business license penalties 2,250 2,250 3,758 1,508 Other court fines 63,580 63,580 47,288 (16,292) Sub-total 138,260 138,260 124,529 (13,731) 88 CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30,2015(Continued) Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) Revenue from use of money and property: Interest $368,581 $368,581 $602,111 $233,530 Internal designated 5,186 5,186 Change in fair market value of investments (57,033) (57,033) Rent and concession Field and court rentals 193,550 193,550 227,096 33,546 Facility rentals 305,910 305,910 340,482 34,572 Leased property 516,577 516,577 434,004 (82,573) Sub-total 1,384,618 1,384,618 1,551,846 167,228 Intergovernmental revenues: Motor vehicle in-lieu 21,909 21,909 Mandated costs 10,000 10,000 254,961 244,961 Homeowner's property tax relief 183,620 183,620 206,430 22,810 Sub-total 193,620 193,620 483,300 289,680 Charges for services: General government Building use insurance 16,000 16,000 23,297 7,297 Sale of maps and documents 3,700 3,700 712 (2,988) Public safety Police charges for services 56,720 56,720 50,447 (6,273) Fire charges for services 256,090 408,350 617,760 209,410 Santa Rita fire services 570,000 345,000 1,026,809 681,809 Waste management Waste management admin fees 715,000 715,000 796,288 81,288 Environmental Programs EV Charges 1,712 1,712 Parks and community services Aquatics programs 176,170 176,170 191,104 14,934 Cemetery 1,150 1,150 920 (230) Cultural arts 133,140 133,140 180,474 47,334 Family programs 515,767 515,767 698,641 182,874 Heritage Center 10,740 10,740 19,013 8,273 Preschool programs 446,700 446,700 412,639 (34,061) Recreational activities 385,607 459,024 524,801 65,777 Senior programs 81,150 81,150 101,778 20,628 Sports programs 529,197 778,697 879,589 100,892 Community Development Engineering plan checking 2,250,373 2,840,373 2,848,471 8,098 Local share permit surcharge-SMIP 2,799 2,799 2,918 119 Building plan checking 500 500 454 (46) Local share permit surcharge-Zone 7 drainage fees 9,900 9,900 19,881 9,981 Zoning and subdivision fees 979,104 1,437,024 1,940,845 503,821 Sub-total 7,139,807 8,437,904 10,338,553 1,900,649 89 CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL REVENUE BY SOURCES FOR THE YEAR ENDED JUNE 30,2015(Continued) Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) Other revenues: Contributions $100,250 $104,250 $114,320 $10,070 Sales of property 285 285 Miscellaneous 101,791 107,491 126,296 18,805 Rem-general 133,461 133,461 181,186 47,725 Reimbursement-public damage 22,502 22,502 19,699 (2,803) Reimbursement-Community benefit assessment 2,426,174 2,776,174 2,964,899 188,725 Sub-total 2,784,178 3,143,878 3,406,685 262,807 Total Revenue by Sources $63,904,237 $71,229,359 $76,099,259 $4,869,900 90 This Page Left Intentionally Blank CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL DEPARTMENTAL EXPENDITURES FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) General government City Council $463,391 $505,391 $364,521 $140,870 City Manager 1,006,558 1,089,174 1,092,679 (3,505) City Clerk 357,895 365,093 335,081 30,012 Election 95,520 95,520 57,858 37,662 Human resources 580,230 591,957 576,334 15,623 Insurance 436,360 474,860 374,292 100,568 City attorney 777,810 852,810 499,536 353,274 Finance 1,391,034 1,472,519 1,267,946 204,573 Information systems 938,557 940,957 903,839 37,118 Non departmental ISF 781,880 4,213,478 375,240 3,838,238 Disaster preparedness 94,110 96,100 92,072 4,028 Crossing guards 121,929 121,929 121,510 419 Animal control 268,893 291,790 247,637 44,153 Waste management 264,497 268,265 258,641 9,624 Community TV 109,150 109,150 106,284 2,866 Sub-total 7,687,814 11,488,993 6,673,470 4,815,523 Police Police admin/support services 2,355,037 2,355,037 1,689,322 665,715 Patrol 6,843,578 6,843,578 6,903,869 (60,291) Traffic 944,790 944,790 977,052 (32,262) Investigations 1,889,580 1,889,580 2,071,000 (181,420) Crime prevention/school resource services 1,170,820 1,170,820 1,286,532 (115,712) Communications/dispatch 1,113,608 1,113,609 946,029 167,580 Neighborhood resources 441,714 441,714 187,500 254,214 Police operations support 1,539,879 1,550,169 1,364,262 185,907 Sub-total 16,299,006 16,309,297 15,425,566 883,731 Fire Administration 11,319,704 11,319,704 11,081,102 238,602 Fire prevention 307,884 307,884 271,244 36,640 Operations 61,000 61,000 43,253 17,747 Fire station maintenance 239,569 239,569 204,172 35,397 Sub-total 11,928,157 11,928,157 11,599,771 328,386 Public works Building management 1,001,419 1,008,419 1,070,146 (61,727) Public Safety Complex 80,142 80,142 65,502 14,640 Traffic signals 10,500 10,500 10,500 Street lighting 14,101 14,101 13,555 546 Public works administration 981,388 1,011,826 975,797 36,029 Street maintenance 141,218 141,218 102,681 38,537 Street sweeping 129,879 129,879 115,084 14,795 Street landscaping 1,161,071 1,182,286 1,023,631 158,655 Street tree maintenance 133,539 133,539 118,033 15,506 Environmental services 211,847 220,499 213,513 6,986 Engineering 2,398,273 3,118,526 3,094,229 24,297 Sub-total 6,263,377 7,050,935 6,802,671 248,264 92 CITY OF DUBLIN GENERAL FUND SCHEDULE OF BUDGET VERSUS ACTUAL DEPARTMENTAL EXPENDITURES FOR THE YEAR ENDED JUNE 30,2015(Continued) Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) Parks and Community Services Library services 803,754 803,754 779,030 24,724 Paric maintenance 3,152,965 3,226,201 2,701,089 525,112 Historic facility operations and rentals 289,275 321,127 218,495 102,632 Heritage center programs 374,131 374,131 286,236 87,895 Community events and festivals 552,435 552,435 568,679 (16,244) Facility operations and rentals 1,321,031 1,350,752 1,136,150 214,602 Parks and community services administration 721,518 738,531 640,757 97,774 Family programs 531,436 531,436 525,319 6,117 Recreational activities 535,109 579,159 540,745 38,414 Preschool programs 293,711 293,711 283,431 10,280 Senior programs 480,695 493,825 473,081 20,744 Sports programs 597,106 746,806 711,926 34,880 Aquatic programs 416,502 416,502 361,584 54,918 Parks/facilities development 497,056 528,284 394,711 133,573 Sub-total 10,566,724 10,956,654 9,621,233 1,335,421 Economic development Economic development 627,996 781,948 533,779 248,169 Public information 399,728 383,728 274,493 109,235 Sub-total 1,027,724 1,165,676 808,272 357,404 Community development Human services 274,510 274,510 195,783 78,727 Housing programs 96,802 98,478 99,685 (1,207) Planning 2,272,771 2,664,004 2,522,541 141,463 Building and safety 2,780,897 3,159,674 2,828,257 331,417 Sub-total 5,424,980 6,196,666 5,646,266 550,400 Total Expenditures $58,170,058 $65,096,378 $56,577,249 $8,519,129 93 CITY OF DUBLIN GENERAL IMPROVEMENTS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) EXPENDITURES: Capital outlay: General improvements $62,177 $4,450,479 $1,241,494 $3,208,985 Total Expenditures 62,177 4,450,479 1,241,494 3,208,985 REVENUES OVER(UNDER)EXPENDITURES (62,177) (4,450,479) (1,241,494) 3,208,985 OTHER FINANCING SOURCES(USES) Transfers in 4,450,478 1,241,494 (3,208,984) Total Other Financing Sources(Uses) 4,450,478 1,241,494 (3,208,984) NET CHANGE IN FUND BALANCE ($62,177) ($Q $1 BEGINNING FUND BALANCE 15,922 ENDING FUND BALANCE $15,922 94 CITY OF DUBLIN COMMUNITY IMPROVEMENTS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) EXPENDITURES: Capital outlay: Community improvements $326,037 $446,589 $68,190 $378,399 Total Expenditures 326,037 446,589 68,190 378,399 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (326,037) (446,589) (68,190) 378,399 OTHER FINANCING SOURCES(USES) Transfers in 326,037 446,589 68,190 (378,399) Total Other Financing Sources(Uses) 326,037 446,589 68,190 (378,399) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE 854 ENDING FUND BALANCE $854 95 CITY OF DUBLIN PARKS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) EXPENDITURES: Capital outlay: Parks $25,657,572 $41,188,692 $4,742,328 $36,446,364 Total Expenditures 25,657,572 41,188,692 4,742,328 36,446,364 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (25,657,572) (41,188,692) (4,742,328) 36,446,364 OTHER FINANCING SOURCES(USES) Transfers in 25,657,572 41,188,692 4,742,329 (36,446,363) Total Other Financing Sources(Uses) 25,657,572 41,188,692 4,742,329 (36,446,363) NET CHANGE IN FUND BALANCE 1 $1 BEGINNING FUND BALANCE 4,966 ENDING FUND BALANCE $4,967 96 CITY OF DUBLIN STREETS PROJECTS CAPITAL PROJECTS FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) EXPENDITURES: Capital outlay: Streets $7,273,436 $16,067,761 $3,568,142 $12,499,619 Total Expenditures 7,273,436 16,067,761 3,568,142 12,499,619 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (7,273,436) (16,067,761) (3,568,142) 12,499,619 OTHER FINANCING SOURCES(USES) Transfers in 7,273,436 16,067,761 3,568,143 (12,499,618) Total Other Financing Sources(Uses) 7,273,436 16,067,761 3,568,143 (12,499,618) NET CHANGE IN FUND BALANCE 1 $1 BEGINNING FUND BALANCE(DEFICIT) (21,501) ENDING FUND BALANCE(DEFICIT) ($21,500) 97 CITY OF DUBLIN PUBLIC FACILITIES IMPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) REVENUES: Interest $97,214 $229,303 $132,089 Developer fees 7,084,453 8,534,908 1,450,455 Total Revenues 7,181,667 8,764,211 1,582,544 EXPENDITURES: Parks and community service $61,609 215,427 79,711 135,716 Total Expenditures 61,609 215,427 79,711 135,716 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (61,609) 6,966,240 8,684,500 1,718,260 OTHER FINANCING SOURCES(USES) Transfers in 3,500,000 (3,500,000) Transfers out (14,152,490) (39,557,962) (4,305,724) 35,252,238 Total Other Financing Sources(Uses) (14,152,490) (36,057,962) (4,305,724) 31,752,238 NET CHANGE IN FUND BALANCE ($14,214,099) ($29,091,722) 4,378,776 $33,470,498 BEGINNING FUND BALANCE 29,285,547 ENDING FUND BALANCE $33,664,323 98 CITY OF DUBLIN FIRE IMPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) REVENUES: Developer fees $188,860 $280,250 $434,307 $154,057 Total Revenues 188,860 280,250 434,307 154,057 EXPENDITURES: Current: General government 5,000 3,006 1,994 Total Expenditures 5,000 3,006 1,994 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 188,860 275,250 431,301 156,051 NET CHANGE IN FUND BALANCE $188,860 $275,250 431,301 $156,051 BEGINNING FUND BALANCE(DEFICIT) (901,908) ENDING FUND BALANCE(DEFICIT) ($470,607) 99 CITY OF DUBLIN TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) REVENUES: Interest $36,403 $36,403 $103,738 $67,335 Developer fees 2,189,044 3,561,269 6,154,171 2,592,902 Other revenue 13,248 13,248 Total Revenues 2,225,447 3,597,672 6,271,157 2,673,485 EXPENDITURES: Current: General government $350,000 635,000 551,338 83,662 Public works 130,079 869 129,210 Total Expenditures 350,000 765,079 552,207 212,872 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 1,875,447 2,832,593 5,718,950 2,886,357 OTHER FINANCING SOURCES(USES) Transfers out (1,112,129) (3,988,186) (1,364,415) 2,623,771 Total Other Financing Sources(Uses) (1,112,129) (3,988,186) (1,364,415) 2,623,771 NET CHANGE IN FUND BALANCE $763,318 ($1,155,593) 4,354,535 $5 510,128 BEGINNING FUND BALANCE 12,905,632 ENDING FUND BALANCE $17,260,167 100 CITY OF DUBLIN DUBLIN CROSSING CONTRIBUTION CAPITAL PROJECTS FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual Amounts (Negative) REVENUES: $17 $17 Interest Total Revenues 17 17 EXPENDITURES Current: General government 50,000 (50,000) Total Expenditures 50,000 (50,000) EXCESS(DEFICIENCY)OF REVENUES (49,983) (49,983) OVER EXPENDITURES OTHER FINANCING SOURCES(USES) Transfers out ($118,800) ($118,880) (69,026) 49,854 Total Other Financing Sources(Uses) (118,800) (118,880) (69,026) 49,854 NET CHANGE IN FUND BALANCE ($118,800) ($118,880) (119,009) ($129) BEGINNING FUND BALANCE 50,075 ENDING FUND BALANCE(DEFICIT) ($68,934) 101 This Page Left Intentionally Blank NON-MAJOR GOVERNMENTAL FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects)that are legally restricted to expenditures for specific purposes. SPECIAL REVENUE FUND PUBLIC SAFETY: SPECIAL CRIMINAL ACTIVITY Established to account for receipt of funds derived from asset forfeitures. VEHICLE ABATEMENT Established to account for the use of funds received from vehicle registration of Dublin residents for the towing of abandoned vehicles in city limits. SUPPLEMENTAL LAW ENFORCEMENT(SLESJCOPS) Established to account for police expenditures funded by a State grant. TRAFFIC SAFETY Established to account for the receipt of traffic fines and traffic safety expenditures. FEDERAL ASSET SEIZURE Established to account for the receipts and expenditures of the Federal seizure funds. EMERGENCY MEDICAL SERVICES(EMS) Established to account for excise taxes received to fund the costs of providing Emergency Medical Services. ENFORCEMENT GRANTS Established to account for miscellaneous grants received for police expenditures not reported in the above funds. TRANSPORTATION: STATE GAS TAX Established to account for the receipt of state gasoline taxes and expenditures. SAFETEA-LU Established to account for the revenue received from the U.S. Department of Transportation under the Safe, Accountable,Flexible,Efficient Transportation Equity Act:A Legal for Users fund. 103 NON-MAJOR GOVERNMENTAL FUNDS(Continued) MEASURE B SALES TAX—LOCAL STREETS Established to account for an Alameda County voter sales tax used for improvements on streets and roads. MEASURE B SALES TAX—BIKE PEDESTRIAN Established to account for an Alameda County voter approved increase in sales tax used for bike and pedestrian related projects. MEASURE BB SALES TAX—STREETS AND ROADS Established to account for an Alameda County voter approved increase in sales tax used for improvements on streets and roads. MEASURE BB SALES TAX—BIKE/PEDESTRIAN Established to account for an Alameda County voter approved increase in sales tax used for bike and pedestrian related projects. CONGESTION MANAGEMENT AGENCY Established to account for funds received from the Alameda County Congestion Management Agency. HIGHWAY SAFETY TRAFFIC REDUCTION BOND Established to account for the receipts of funds for local streets and road improvements. FEDERAL TRANSPORTATION(TIGER) Established to account for the receipts of Federal grants for approved street and trail improvements funded by a one-time Federal grants. ACTC VEHICLE REGISTRATION FEE Established to account for an Alameda County Transportation Commission(ACTC)voter approved increase in vehicle registration fee that is distributed by ACTC to be used for street and road system maintenance. TDA Established to account for the financial activities associated with allocations funded by the State of California Transportation Development Act(TDA)for the Pedestrian/Bicycle Projects." ENVIRONMENTAL: GARBAGE/RECYCLING Established to account for the following activities: Measure D Recycling Established to account for the use of funds received which are levied by the County pursuant to a charter amendment and are provided for recycling and related activities. This fund also accounts for other locally derived funds for recycling related activities. 104 NON-MAJOR GOVERNMENTAL FUNDS(Continued) Garbage Service Established to account for the use of funds received which are levied by the county on behalf of the City for garbage pick-up and removal and recycling services. Local Recycling Established to account for locally derived funds collected for a commercial organic and recycling program and activities retained by the City at the end of the franchise held by Waste Management Inc. These funds are independent of the funds distributed by Stop Waste pursuant to the Alameda County Recycling Measure. AVI ECONOMIC BENEFIT/BUSINESS ASSISTANCE PROGRAM Established to account for the grant received from Amador Valley Industry and to provide business owners funding for eligible environmental related improvements. STORM WATER MANAGEMENT Established to account for the following activities: Storm Water Management Established to account for the funds received from the State and designated specifically for the use of storm water related activities. Dublin/Dougherty Storm Water Management Established to account for funds designated for the management of the Dublin/Dougherty area storm water units. Village Parkway Storm Water Management Established to account for funds designated for management of the Village Parkway area storm water units. BOX CULVERT Established to account for the funds designated for the maintenance and repairs of box culvert in the East Dublin area. PARKS.CULTURAL.AND ARTS: EAST BAY REGIONAL PARK DISTRICT Establish to account for the funds received from the East Bay Regional Park District from the Measure WW- Extend Existing East Bay Regional Park District Bond With No Increase In Tax Rate approved by voters on November 4,2008. PUBLIC ART Establish to account for the fees received from developers of properties,which can only be used for the purchase design,development,and construction of Public Art projects within the City of Dublin. 105 NON-MAJOR GOVERNMENTAL FUNDS(Continued) MISCELLANEOUS SPECIAL REVENUE Established to account for the following activities: Cable TV Facilities Established to account for Cable TV Facilities fees collected from Cable Television providers and passed through to the City for local cable television as allowed under State and Federal franchising laws. Noise Mitigation Establish to account for the fees received from developers of properties,which can only be used for the noise mitigation measures. Citywide Events(Customer Service)Fund Establish to account for event ticket sales and donations,to be spent on special events citywide. COMMUNITY DEVELOPMENT BLOCK GRANT(CDBG) Used to account for grants and expenditures related to Community Development Block Grants received. MAINTENANCE DISTRICTS: Established to account for revenue and related expenditures of lighting and landscape districts. 106 This Page Left Intentionally Blank CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEETS JUNE 30,2015 Special Revenue Funds Special Supplemental Criminal Vehicle Law Activity Abatement Enforcement Traffic Safety ASSETS Cash and investments $122,481 $292,421 $45,842 $339,044 Accounts receivable 18,407 Total Assets $122 481 $292 421 $45,842 $357,451 LIABILITIES Accounts payable $1,280 $30,000 $35,936 Deposits payable 21,860 Due to other funds Total Liabilities 23,140 30,000 35,936 FUND BALANCE(DEFICIT) Fund balance(Deficit): Restricted Public safety programs 99,341 $292,421 15,842 321,515 Street maintenance and construction Health and welfare programs Recycling programs Capital improvement projects Unassigned Total Fund Balances(Deficits) 99,341 292,421 15,842 321,515 Total Liabilities and Fund Balances $122,481 $292 421 $45,842 $357 451 108 Special Revenue Funds Emergency Measure B Measure B Federal Asset Medical Enforcement Sales Tax Sales Tax Seizure Services Grants State Gas Tax SAFETEA-LU Local Streets Bike/Pedestrian $152,214 $91,485 $5,593 $3,584,149 $436,232 $94,985 46,311 98,573 37,054 $152,214 $137,796 $5,593 $3,584,149 $534,805 $132,039 $2,490 $84,817 $22,532 $368,511 2,490 84,817 22,532 368,511 149,724 52,979 $5,593 3,561,617 $534,805 $132,039 (368,511) 149,724 _ 52,979 5,593 3,561,617 (368,511) 534,805 132,039 $1_ 52,214 $137,796 $5,593 $3,584,149 $534,805 $132,039 (Continued) 109 CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEETS JUNE 30,2015 Special Revenue Funds Highway Measure BB Measure BB Congestion Safety Sales Tax Sales Tax Management Traffic Streets and Roads Bike/Pedestrian Agency Reduction Bond ASSETS Cash and investments $1,242 $117 $4,327 Accounts receivable 70,907 24,235 $290,981 Total Assets $72,149 $24,352 $290,981 $4,327 LIABILITIES Accounts payable Deposits payable Due to other funds $290,981 Total Liabilities 290,981 FUND BALANCE(DEFICIT) Fund balance(Deficit): Restricted Public safety programs Street maintenance and construction $72,149 $24,352 $4,327 Health and welfare programs Recycling programs Capital improvement projects Unassigned Total Fund Balances(Deficits) 72,149 24,352 4,327 Total Liabilities and Fund Balances $72,149 $24 352 $290.981 $4,327 110 Special Revenue Funds ACTC Federal Vehicle AVI Economic Storm Transportation Registration Garbage/ Benefit/Business Water (TIGER) Fee TDA Recycling Assistance Program Management Box Culvert $139,350 $175 $463,192 $38 $200,045 $360,193 $22,917 44,777 54,525 $22,917 $184,127 $175 $517,717 $38 $200,045 $360,193 $9,939 $36,284 $23,496 $175 23,496 9,939 175 36,284 174,188 $200,045 $360,193 481,433 $38 (579) (579) 174,188 481 s 433 38 200,045 360,193 $22917 $184127 $175 $517,717 $38 $200,045 $360,193 , , (Continued) 111 CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEETS JUNE 30,2015 Special Revenue Funds East Bay Miscellaneous Community Regional Special Development Park District Public Art Revenue Block Grant ASSETS Cash and investments $2,991,194 $393,380 Accounts receivable $156,549 44,489 $24 029 Total Assets $156,549 $2,991,194 $437,869 $24 029 LIABILITIES Accounts payable $144 $2,651 Deposits payable 1,906 Due to other finals $156,549 21,378 Total Liabilities 156,549 2,050 24,029 FUND BALANCE(DEFICIT) Fund balance(Deficit): Restricted Public safety programs Street maintenance and construction Health and welfare programs 435,819 Recycling programs Capital improvement projects $2,991,194 Unassigned Total Fund Balances(Deficits) 2,991,194 435,819 Total Liabilities and Fund Balances $156,549 $2,991194 $437869 $24 029 , , 112 Special Revenue Funds Maintenance Districts Total 1983-1 1983-2 1986-1 1997-1 1999-1 Non-Major Street Stagecoach Dougherty Santa Rita East Dublin Governmental Lighting Landscape Landscape Landscape Street Lighting Funds $189,443 $82,468 $173,475 $319,224 $484,288 $10,966,597 1,357 112 574 920 936,717 $190,800 $82,468 $173,587 $319,798 $485,208 $11,903,314 $2,342 $862 $22,015 $19,059 $2,696 $273,047 23,766 861,090 2,342 862 22,015 19,059 2,696 1,157,903 937,415 188,458 81,606 151,572 300,739 482,512 6,268,602 435,819 481,471 2,991,194 (369,090) 188,458 81,606 151,572 300,739 482,512 10,745,411 $190,800 $82,468 $173,587 $319,798 $485,208 $11,903,314 113 CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30,2015 Special Revenue Funds Special Supplemental Criminal Vehicle Law Activity Abatement Enforcement Traffic Safety REVENUES Property taxes Taxes other than property Intergovernmental $36,369 $113,163 Charges for service Interest $1,011 1,760 179 $1,905 Fines and forfeitures 196,100 Developer fees Other revenue 28,896 Special assessments Total Revenues 29,907 38,129 113,342 198,005 EXPENDITURES Current: General government Police 1,915 100,000 Fire Public works 114,603 Park and community services Community development Total Expenditures 1,915 100,000 114,603 REVENUES OVER (UNDER)EXPENDITURES 27,992 38,129 13,342 83,402 OTHER FINANCING SOURCES(USES) Transfer out Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES 27,992 38,129 13,342 83,402 FUND BALANCES(DEFICITS): Beginning of year 71,349 254,292 2,500 238,113 End of year $99,341 $292,421 $15,842 $321,515 114 Special Revenue Funds Emergency Measure B Measure B Federal Asset Medical Enforcement Sales Tax Sales Tax Seizure Services Grants State Gas Tax SAFETEA-LU Local Streets Bike/Pedestrian $396,556 $149,070 $180,884 $7,301 $1,515,839 $1,553 366 34 22,258 $23 4,656 408 24,183 174,067 1,553 355,317 7,335 1,562,280 23 401,212 149,478 163,811 6,140 330,474 485,494 49,627 163,811 330,474 6,140 485,494 49,627 (162,258) 24,843 1,195 1,076,786 23 401,212 99,851 (766,974) (404,396) (682,726) (20,592) (766,974) (404,396) (682,726) (20,592) (162,258) 24,843 1,195 309,812 (404,373) (281,514) 79,259 311,982 28,136 4,398 3,251,805 35,862 816,319 52,780 $149,724 $52,979 $5,593 $3,561,617 ($368,511) $534,805 $132,039 (Continued) 115 CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30,2015 Special Revenue Funds Highway Measure BB Measure BB Congestion Safety Sales Tax Sales Tax Management Traffic Streets and Roads Bike/Pedestrian Agency Reduction Bond REVENUES Property taxes Taxes other than property $70,906 $24,234 Intergovernmental Charges for service Interest 1,243 118 $28 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 72,149 24,352 28 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES 72,149 24,352 28 OTHER FINANCING SOURCES(USES) Transfer out Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES 72,149 24,352 28 FUND BALANCES(DEFICITS): Beginning of year 4,299 End of year $72,149 $24,352 $4,327 116 Special Revenue Funds ACTC Federal Vehicle AVI Economic Storm Transportation Registration Garbage! Benefit/Business Water (TIGER) Fee TDA Recycling Assistance Program Management Box Culvert $252,863 $207,189 $189,927 $25,735 3,203,145 847 3,325 1,351 $2,346 253,710 207,189 3,396,397 27,086 2,346 3,255,178 $161,330 48,867 10,000 161,330 3,304,045 10,000 92,380 207,189 92,352 17,086 2,346 (3,670) ($150,043) (30,176) (3,670) (150,043) (30,176) 88,710 57,146 92,352 (13,090) 2,346 ($579) 85,478 (57,146) 389,081 $38 213,135 357,847 ($579) $174,188 $481,433 $38 $200,045 $360,193 (Continued) 117 CITY OF DUBLIN NON-MAJOR GOVERNMENTAL FUNDS COMBINING STATEMENTS OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30,2015 Special Revenue Funds East Bay Miscellaneous Community Regional Special Development Park District Public Art Revenue Block Grant REVENUES Property taxes Taxes other than property Intergovernmental $156,549 $76,703 Charges for service $169,768 Interest $17,632 2,149 Fines and forfeitures Developer fees 969,432 5,365 Other revenue Special assessments Total Revenues 156,549 987,064 177,282 76,703 EXPENDITURES Current: General government 33,400 Police Fire Public works Park and community services 30,059 Community development 71,402 Total Expenditures 30,059 33,400 71,402 REVENUES OVER (UNDER)EXPENDITURES 156,549 957,005 143,882 5,301 OTHER FINANCING SOURCES(USES) Transfer out (122,085) (105,477) (5,300) Total Other Financing Sources(Uses) (122,085) (105,477) (5,300) NET CHANGE IN FUND BALANCES 34,464 851,528 143,882 1 FUND BALANCES(DEFICITS): Beginning of year (34,464) 2,139,666 291,937 (1) End of year $2,991,194 $435,819 118 Special Revenue Funds Maintenance Districts Total 1983-1 1983-2 1986-1 1997-1 1999-1 Nonmajor Street Stagecoach Dougherty Santa Rita East Dublin Governmental Lighting Landscape Landscape Landscape Street Lighting Funds $640,766 2,762,522 3,372,913 $900 $363 $827 $1,806 $2,693 69,781 196,100 974,797 53,079 288,634 85,614 132,723 307,225 275,938 1,264,201 289,534 85,977 133,550 309,031 278,631 9,334,159 3,288,578 271,866 330,474 301,706 47,219 77,091 243,000 139,209 1,678,146 30,059 71,402 301,706 47,219 77,091 243,000 139,209 5,670,525 (12,172) 38,758 56,459 66,031 139,422 3,663,634 (31,679) (2,323,118) (31,679) (2,323,118) (12,172) 38,758 56,459 66,031 107,743 1,340,516 200,630 42,848 95,113 234,708 374,769 9,404,895 $188,458 $81,606 $151,572 $300,739 $482,512 $10,745,411 119 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 SPECIAL CRIMINAL ACTIVITY Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $211 $211 $1,011 $800 Fines and forfeitures Developer fees Other revenue 28,896 28,896 Special assessments Total Revenues 211 211 29,907 29,696 EXPENDITURES Current General government Police 3,980 23,980 1,915 22,065 Fire Public works Park and community services Community development Total Expenditures 3,980 23,980 1,915 22,065 REVENUES OVER (UNDER)EXPENDITURES (3,769) (23,769) 27,992 51,761 OTHER FINANCING SOURCES(USES) Transfers(out) Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES $3,769 ($23,769) 27,992 $51,761 FUND BALANCE(DEFICITS): Beginning of year 71,349 End of year $99,341 120 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 VEHICLE ABATEMENT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $30,460 $30,460 $36,369 $5,909 Charges for service Interest 1,481 1,481 1,760 279 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 31,941 31,941 38,129 6,188 EXPENDITURES Current: General government Police 755 755 755 Fire Public works Park and community services Community development Total Expenditures 755 755 755 REVENUES OVER (UNDER)EXPENDITURES 31,186 31,186 38,129 6,943 OTHER FINANCING SOURCES(USES) Transfers(out) (21,000) (21,000) 21,000 Total Other Financing Sources(Uses) (21,000) (21,000) 21,000 NET CHANGE IN FUND BALANCES $10,186 $10,186 38,129 $27,943 FUND BALANCE(DEFICITS): Beginning of year 254,292 End of year $292,421 121 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 SUPPLEMENTAL LAW ENFORCEMENT Variance Budgeted Amounts Positive Oriel Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $100,000 $100,000 $113,163 $13,163 Charges for service Interest 179 179 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 100,000 100,000 113,342 13,342 EXPENDITURES Current: General government Police 100,000 100,000 100,000 Fire Public works Park and community services Community development Total Expenditures 100,000 100,000 100,000 REVENUES OVER (UNDER)EXPENDITURES 13,342 13,342 OTHER FINANCING SOURCES(USES) Transfers(out) Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES 13,342 $13,342 FUND BALANCE(DEFICITS): Beginning of year 2,500 End of year $15,842 122 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 TRAFFIC SAFETY Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $788 $788 $1,905 $1,117 Fines and forfeitures 148,280 148,280 196,100 47,820 Developer fees Other revenue Special assessments Total Revenues 149,068 149,068 198,005 48,937 EXPENDITURES Current: General government Police Fire Public works 111,253 111,253 114,603 (3,350) Park and community services Community development Total Expenditures 111,253 111,253 114,603 (3,350) REVENUES OVER (UNDER)EXPENDITURES 37,815 37,815 83,402 45,587 OTHER FINANCING SOURCES(USES) Transfers(out) (65,434) (65,434) 65,434 Total Other Financing Sources(Uses) (65,434) (65,434) 65,434 NET CHANGE IN FUND BALANCES ($27,619) ($27,619) 83,402 $111,021 FUND BALANCE(DEFICITS): Beginning of year 238,113 End of year $321,515 123 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 FEDERAL ASSET SEIZURE Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $1,843 $1,843 $1,553 ($290) Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 1,843 1,843 1,553 (290) EXPENDITURES Current: General government Police 4,500 304,500 163,811 140,689 Fire Public works Park and community services Community development Total Expenditures 4,500 304,500 163,811 140,689 REVENUES OVER (UNDER)EXPENDITURES (2,657) (302,657) (162,258) 140,399 OTHER FINANCING SOURCES(USES) Transfers(out) Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES ($2,657) ($302,657) (162,258) $140,399 FUND BALANCE(DEFICITS): Beginning of year 311,982 End of year $149,724 124 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 EMERGENCY MEDICAL SERVICES Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $177,630 $177,630 $180,884 $3,254 Charges for service Interest 86 86 366 280 Fines and forfeitures Developer fees Other revenue Special assessments 159,000 174,067 15,067 Total Revenues 177,716 336,716 355,317 18,601 EXPENDITURES Current: General government Police Fire 330,201 330,475 330,474 1 Public works Park and community services Community development Total Expenditures 330,201 330,475 330,474 1 REVENUES OVER (UNDER)EXPENDITURES (152,485) 6,241 24,843 18,602 OTHER FINANCING SOURCES(USES) Transfers(out) Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES ($152,485) $6,241 24,843 $18,602 FUND BALANCE(DEFICITS): Beginning of year 28,136 End of year $52,979 125 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 ENFORCEMENT GRANT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $1,230 $6,300 $7,301 $1,001 Charges for service Interest 27 27 34 7 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 1,257 6,327 7,335 1,008 EXPENDITURES Current: General government Police 1,225 6,295 6,140 155 Fire Public works Park and community services Community development Total Expenditures 1,225 6,295 6,140 155 REVENUES OVER (UNDER)EXPENDITURES 32 32 1,195 1,163 OTHER FINANCING SOURCES(USES) Transfers(out) Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES $32 $32 1,195 $1,163 FUND BALANCE(DEFICITS): Beginning of year 4,398 End of year $5,593 126 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 STATE GAS TAX Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $1,226,420 $1,226,420 $1,515,839 $289,419 Charges for service Interest 10,650 10,650 22,258 11,608 Fines and forfeitures Developer fees Other revenue 24,183 24,183 Special assessments Total Revenues 1,237,070 1,237,070 1,562,280 325,210 EXPENDITURES Current: General government Police Fire Public works 557,867 632,867 485,494 147,373 Park and community services Community development Total Expenditures 557,867 632,867 485,494 147,373 REVENUES OVER (UNDER)EXPENDITURES 679,203 604,203 1,076,786 472,583 OTHER FINANCING SOURCES(USES) Transfers(out) (624,954) (1,386,988) (766,974) 620,014 Total Other Financing Sources(Uses) (624,954) (1,386,988) (766,974) 620,014 NET CHANGE IN FUND BALANCES $54,249 ($782,785) 309,812 $1,092,597 FUND BALANCE(DEFICITS): Beginning of year 3,251,805 End of year $3,561,617 127 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 SAFETEA-LU Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $23 $23 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 23 23 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES 23 23 OTHER FINANCING SOURCES(USES) Transfers(out) ($470,000) (404,396) 65,604 Total Other Financing Sources(Uses) (470,000) (404,396) 65,604 NET CHANGE IN FUND BALANCES ($470,000) (404,373) $65,627 FUND BALANCE(DEFICITS): Beginning of year 35,862 End of year ($368,511) 128 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 MEASURE B SALES TAX STREETS AND ROADS Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property $363,526 $363,526 $396,556 $33,030 Intergovernmental Charges for service Interest 13,238 13,238 4,656 (8,582) Fines and forfeitures Developer fees Other revenue 6,267,000 6,267,000 (6,267,000) Special assessments Total Revenues 6,643,764 6,643,764 401,212 (6,242,552) EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES 6,643,764 6,643,764 401,212 (6,242,552) OTHER FINANCING SOURCES(USES) Transfers(out) (4,588,507) (7,261,123) (682,726) 6,578,397 Total Other Financing Sources(Uses) (4,588,507) (7,261,123) (682,726) 6,578,397 NET CHANGE IN FUND BALANCES $2,055,257 ($617,359) (281,514) $335,845 FUND BALANCE(DEFICITS): Beginning of year 816,319 End of year $534,805 129 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 MEASURE B SALES TAX BIKE/PEDESTRIAN Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property $127,956 $127,956 $149,070 $21,114 Intergovernmental Charges for service Interest 448 448 408 (40) Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 128,404 128,404 149,478 21,074 EXPENDITURES Current: General government Police Fire Public works 17,962 65,700 49,627 16,073 Park and community services Community development Total Expenditures 17,962 65,700 49,627 16,073 REVENUES OVER (UNDER)EXPENDITURES 110,442 62,704 99,851 37,147 OTHER FINANCING SOURCES(USES) Transfers(out) (30,000) (59,481) (20,592) 38,889 Total Other Financing Sources(Uses) (30,000) (59,481) (20,592) 38,889 NET CHANGE IN FUND BALANCES $80,442 $3,223 79,259 $76,036 FUND BALANCE(DEFICITS): Beginning of year 52,780 End of year $132,039 130 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 MEASURE BB SALES TAX STREETS AND ROADS Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property $70,906 $70,906 Intergovernmental Charges for service Interest 1,243 1,243 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 72,149 72,149 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES 72,149 72,149 OTHER FINANCING SOURCES(USES) Transfers(out) Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES 72,149 $72,149 FUND BALANCE(DEFICITS): Beginning of year End of year $72,149 131 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 MEASURE BB SALES TAX BIKE/PEDESTRIAN Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property $24,234 $24,234 Intergovernmental Charges for service Interest 118 118 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 24,352 24,352 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES 24,352 24,352 OTHER FINANCING SOURCES(USES) Transfers(out) Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES 24,352 $24,352 FUND BALANCE(DEFICITS): Beginning of year End of year $24,352 132 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 CONGESTION MANAGEMENT AGENCY Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES OTHER FINANCING SOURCES(USES) Transfers(out) ($621,513) ($621,513) $621,513 Total Other Financing Sources(Uses) (621,513) (621,513) 621,513 NET CHANGE IN FUND BALANCES ($621,513) ($621,513) $621,513 FUND BALANCE(DEFICITS): Beginning of year End of year 133 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 HIGHWAY SAFETY TRAFFIC REDUCTION BOND Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $28 $28 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 28 28 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES 28 28 OTHER FINANCING SOURCES(USES) Transfers(out) Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES 28 $28 FUND BALANCE(DEFICITS): Beginning of year 4,299 End of year $4,327 134 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 FEDERAL TRANSPORTATION (TIGER) Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES OTHER FINANCING SOURCES(USES) Transfers(out) Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES FUND BALANCE(DEFICITS): Beginning of year ($579) End of year ($579) 135 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 ACTC VEHICLE REGISTRATION FEE Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $217,160 $217,160 $252,863 $35,703 Charges for service Interest 349 349 847 498 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 217,509 217,509 253,710 36,201 EXPENDITURES Current: General government Police Fire Public works 172,429 172,429 161,330 11,099 Park and community services Community development Total Expenditures 172,429 172,429 161,330 11,099 REVENUES OVER (UNDER)EXPENDITURES 45,080 45,080 92,380 47,300 OTHER FINANCING SOURCES(USES) Transfers(out) (33,623) (76,683) (3,670) 73,013 Total Other Financing Sources(Uses) (33,623) (76,683) (3,670) 73,013 NET CHANGE IN FUND BALANCES $11,457 ($31,603) 88,710 $120,313 FUND BALANCE(DEFICITS): Beginning of year 85,478 End of year $174,188 136 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 TDA Variance Budgeted Amounts Positive Oripginal Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $207,400 $207,400 $207,189 ($211) Charges for service Interest 979 979 (979) Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 208,379 208,379 207,189 (1,190) EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES 208,379 208,379 207,189 (1,190) OTHER FINANCING SOURCES(USES) Transfers(out) (183,565) (150,043) 33,522 Total Other Financing Sources(Uses) (183,565) (150,043) 33,522 NET CHANGE IN FUND BALANCES $208,379 $24,814 57,146 $32,332 FUND BALANCE(DEFICITS): Beginning of year (57,146) End of year 137 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 GARBAGE/RECYCLING Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $157,000 $271,940 $189,927 ($82,013) Charges for service 3,093,531 3,135,487 3,203,145 67,658 Interest 1,596 1,596 3,325 1,729 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 3,252,127 3,409,023 3,396,397 (12,626) EXPENDITURES Current: General government 3,196,011 3,291,276 3,255,178 36,098 Police Fire Public works 74,493 140,753 48,867 91,886 Park and community services Community development Total Expenditures 3,270,504 3,432,029 3,304,045 127,984 REVENUES OVER (UNDER)EXPENDITURES (18,377) (23,006) 92,352 115,358 OTHER FINANCING SOURCES(USES) Transfers(out) (86,000) 86,000 Total Other Financing Sources(Uses) (86,000) 86,000 NET CHANGE IN FUND BALANCES ($18,377) ($109,006) 92,352 $201,358 FUND BALANCE(DEFICITS): Beginning of year 389,081 End of year $481,433 138 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 AVI ECONOMIC BENEFIT/BUSINESS ASSISTANCE PROGRAM Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES OTHER FINANCING SOURCES(USES) Transfers(out) Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES FUND BALANCE(DEFICITS): Beginning of year $38 End of year $38 139 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 STORM WATER MANAGEMENT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $769,570 $769,570 $25,735 ($743,835) Charges for service Interest 5,005 5,917 1,351 (4,566) Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 774,575 775,487 27,086 (748,401) EXPENDITURES Current: General government Police Fire Public works 10,000 10,000 Park and community services Community development Total Expenditures 10,000 10,000 REVENUES OVER (UNDER)EXPENDITURES 774,575 765,487 17,086 (748,401) OTHER FINANCING SOURCES(USES) Transfers(out) (766,713) (30,176) 736,537 Total Other Financing Sources(Uses) (766,713) (30,176) 736,537 NET CHANGE IN FUND BALANCES $774,575 ($1,226) (13,090) ($11,864) FUND BALANCE(DEFICITS): Beginning of year 213,135 End of year $200,045 140 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 BOX CULVERT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $2,185 $2,185 $2,346 $161 Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 2,185 2,185 2,346 161 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES 2,185 2,185 2,346 161 OTHER FINANCING SOURCES(USES) Transfers(out) Total Other Financing Sources(Uses) NET CHANGE IN FUND BALANCES $2,185 $2,185 2,346 $161 FUND BALANCE(DEFICITS): Beginning of year 357,847 End of year $360,193 141 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 EAST BAY REGIONAL PARK DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $156,549 $156,549 Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 156,549 156,549 EXPENDITURES Current: General government Police Fire Public works Park and community services Community development Total Expenditures REVENUES OVER (UNDER)EXPENDITURES 156,549 156,549 OTHER FINANCING SOURCES(USES) Transfers(out) (122,085) ($122,085) Total Other Financing Sources(Uses) (122,085) (122,085) NET CHANGE IN FUND BALANCES $34,464 34,464 FUND BALANCE(DEFICITS): Beginning of year (34,464) End of year 142 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 PUBLIC ART Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $7,789 $7,789 $17,632 $9,843 Fines and forfeitures Developer fees 616,500 969,432 352,932 Other revenue Special assessments Total Revenues 7,789 624,289 987,064 362,775 EXPENDITURES Current: General government Police Fire Public works Park and community services 30,000 30,000 30,059 (59) Community development Total Expenditures 30,000 30,000 30,059 (59) REVENUES OVER (UNDER)EXPENDITURES (22,211) 594,289 957,005 362,716 OTHER FINANCING SOURCES(USES) Transfers(out) (268,654) (318,654) (105,477) 213,177 Total Other Financing Sources(Uses) (268654) (318,654) (105,477) 213,177 NET CHANGE IN FUND BALANCES ($290,865) $275,635 851,528 $575,893 FUND BALANCE(DEFICITS): Beginning of year 2,139,666 End of year $2,991,194 143 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 MISCELLANEOUS SPECIAL REVENUE Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service $149,000 $149,000 $169,768 $20,768 Interest 2,265 2,265 2,149 (116) Fines and forfeitures Developer fees 2,319 2,319 5,365 3,046 Other revenue Special assessments Total Revenues 153,584 153,584 177,282 23,698 EXPENDITURES Current General government 35,340 35,340 33,400 1,940 Police Fire Public works Park and community services Community development Total Expenditures 35,340 35,340 33,400 1,940 REVENUES OVER (UNDER)EXPENDITURES 118,244 118,244 143,882 25,638 OTHER FINANCING SOURCES(USES) Transfers in Transfers(out) (325,000) 325,000 Total Other Financing Sources(Uses) (325,000) 325,000 NET CHANGE IN FUND BALANCES $118,244 ($206,756) 143,882 $350,638 FUND BALANCE(DEFICITS): Beginning of year 291,937 End of year $435,819 144 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 COMMUNITY DEVELOPMENT BLOCK GRANT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental $74,002 $78,002 $76,703 ($1,299) Charges for service Interest Fines and forfeitures Developer fees Other revenue Special assessments Total Revenues 74,002 78,002 76,703 (1,299) EXPENDITURES Current: General government Police Fire Public works Park and community services Community development 67,402 71,402 71,402 Total Expenditures 67,402 71,402 71,402 REVENUES OVER (UNDER)EXPENDITURES 6,600 6,600 5,301 (1,299) OTHER FINANCING SOURCES(USES) Transfers in Transfers(out) (6,600) (6,600) (5,300) 1,300 Total Other Financing Sources(Uses) (6,600) (6,600) (5,300) 1,300 NET CHANGE IN FUND BALANCES 1 $1 FUND BALANCE(DEFICITS): Beginning of year (1) End of year 145 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES 1N FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 1983-1 STREET LIGHTING MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $1,186 $1,186 $900 ($286) Fines and forfeitures Developer fees Other revenue Special assessments 287,128 287,128 288,634 1,506 Total Revenues 288,314 288,314 289,534 1,220 EXPENDITURES Current General government Police Fire Public works 283,811 323,811 301,706 22,105 Park and community services Community development Total Expenditures 283,811 323,811 301,706 22,105 REVENUES OVER (UNDER)EXPENDITURES 4,503 (35,497) (12,172) 23,325 OTHER FINANCING SOURCES(USES) Transfers in Transfers(out) (2,800) (2,800) 2,800 Total Other Financing Sources(Uses) (2,800) (2,800) 2,800 NET CHANGE IN FUND BALANCES $1,703 ($38,297) (12,172) $26,125 FUND BALANCE(DEFICITS): Beginning of year 200,630 End of year $188,458 146 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 1983-2 STAGECOACH LANDSCAPE MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $308 $308 $363 $55 Fines and forfeitures Developer fees Other revenue Special assessments 82,417 82,417 85,614 3,197 Total Revenues 82,725 82,725 85,977 3,252 EXPENDITURES Current: General government Police Fire Public works 78,217 78,217 47,219 30,998 Park and community services Community development Total Expenditures 78,217 78,217 47,219 30,998 REVENUES OVER (UNDER)EXPENDITURES 4,508 4,508 38,758 34,250 OTHER FINANCING SOURCES(USES) Transfers in Transfers(out) (750) (750) 750 Total Other Financing Sources(Uses) (750) (750) 750 NET CHANGE IN FUND BALANCES $3,758 $3,758 38,758 $35,000 FUND BALANCE(DEFICITS): Beginning of year 42,848 End of year $81,606 147 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 1986-1 DOUGHERTY LANDSCAPE MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Prey taxes Taxes other than property Intergovernmental Charges for service Interest $406 $406 $827 $421 Fines and forfeitures Developer fees Other revenue Special assessments 129,648 129,648 132,723 3,075 Total Revenues 130,054 130,054 133,550 3,496 EXPENDITURES Current: General government Police Fire Public works 130,380 130,380 77,091 53,289 Park and community services Community development Total Expenditures 130,380 130,380 77,091 53,289 REVENUES OVER (UNDER)EXPENDITURES (326) (326) 56,459 56,785 OTHER FINANCING SOURCES(USES) Transfers in Transfers(out) (1,110) (1,100) 1,100 Total Other Financing Sources(Uses) (1,110) (1,100) 1,100 NET CHANGE IN FUND BALANCES ($1,436)4 ($1,426) 56,459 $57,885 FUND BALANCE(DEFICITS): Beginning of year 95,113 End of year $151,572 148 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 1997-1 SANTA RITA LANDSCAPE MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $1,352 $1,352 $1,806 $454 Fines and forfeitures Developer fees Other revenue Special assessments 329,784 329,784 307,225 (22,559) Total Revenues 331,136 331,136 309,031 (22,105) EXPENDITURES Current: General government Police Fire Public works 326,152 326,152 243,000 83,152 Park and community services Community development Total Expenditures 326,152 326,152 243,000 83,152 REVENUES OVER (UNDER)EXPENDITURES 4,984 4,984 66,031 61,047 OTHER FINANCING SOURCES(USES) Transfers in Transfers(out) (3,000) (3,000) 3,000 Total Other Financing Sources(Uses) (3,000) (3,000) 3,000 NET CHANGE IN FUND BALANCES $1,984 $1,984 66,031 $64,047 FUND BALANCE(DEFICITS): Beginning of year 234,708 End of year $300,739 149 4 CITY OF DUBLIN BUDGETED NON-MAJOR FUNDS SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30,2015 1999-1 EAST DUBLIN STREET LIGHTING MAINTENANCE DISTRICT Variance Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Property taxes Taxes other than property Intergovernmental Charges for service Interest $2,384 $2,384 $2,693 $309 Fines and forfeitures Developer fees Other revenue Special assessments 260,368 260,368 275,93$ 15,570 Total Revenues 262,752 262,752 278,631 15,879 EXPENDITURES Current: General government Police Fire Public works 146,715 146,715 139,209 7,506 Park and community services Community development Total Expenditures 146,715 146,715 139,209 7,506 REVENUES OVER (UNDER)EXPENDITURES 116,037 116,037 139,422 23,385 OTHER FINANCING SOURCES(USES) Transfers in n Transfers(out) (78,442) (78,442) (31,679) 46,763 Total Other Financing Sources(Uses) (78,442) (78,442) (31,679) 46,763 NET CHANGE IN FUND BALANCES $37,595 $37,595 107,743 $70,148 FUND BALANCE(DEFICITS): Beginning of year 374,769 End of year - $482,512 150 INTERNAL SERVICE FUND Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost reimbursement basis. The City has established five of these types of funds: VEHICLE REPLACEMENT This fund is an interest bearing Internal Service Fund established to finance necessary vehicle replacements. BUILDING REPLACEMENT This fund is an interest bearing Internal Service Fund established to fmance future major building component repair expenditures. EQUIPMENT REPLACEMENT This fund is an interest bearing Internal Service Fund established to finance necessary equipment replacements. MAINTENANCE AND REPAIR This fund is an interest bearing Internal Service Fund established to account for the on-going maintenance and repairs of vehicle and office equipment. RETIREE HEALTH CARE This fund is an interest bearing Internal Service Fund established to account for the contribution made to the California Employers' Retiree Benefit Trust Fund for future retiree health care benefits. PERS SIDE FUND This fund was established to account for the repayment to the general fund for the advance made in fiscal year 2007-2008 to pay CaIPERS for the City's Side Fund obligation. The Side Fund was created in 2005 when Ca1PERS assigned agencies with less than 100 participants to a risk sharing pool. The City elected to pre-pay its obligation from the General Fund reserves and an internal service charge is made each year to repay the reserve. PARK REPLACEMENT This fund was established to fmance future major maintenance and repairs of City's parks. ENERGY EFFICIENCY This fund was established to account for the financing and construction of the Energy Efficiency Upgrade Capital Project. 151 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF NET POSITION JUNE 30,2015 Vehicle Building Equipment Maintenance Replacement Replacement Replacement and Repair ASSETS Current Assets: Cash and investments $2,718,053 $4,880,222 $2,950,492 $504,359 Prepaid items 39,503 Accounts receivable 62 Total current assets 2,718,053 4,880,222 2,950,554 543,862 Noncurrent Assets: Land 10,774,792 Construction in progress 3,314,299 89,474 Building and improvements 63,094,195 Vehicles and equipment 4,432,912 2,323,252 Less:accumulated depreciation (2,633,415) (29,847,474) (1,302,422) Total non-current assets 1,799,497 47,335,812 1,110,304 Total Assets 4,517,550 52,216,034 4,060,858 543,862 LIABILITIES Current Liabilities: Accounts payable and accruals 31,036 203 27,976 Capital lease Total current liabilities 31,036 203 27,976 Noncurrent Liabilities: Capital lease Advances from other funds Total non-current liabilities Total Liabilities 31,036 203 27,976 NET POSITION(DEFICIT) Net Investment in capital assets 1,799,497 47,335,812 1,110,304 Restricted Unrestricted 2,687,017 4,880,222 2,950,351 515,886 Total Net Position $4,486,514 $52,216,034 $4,060,655 $515,886 152 Retiree PERS Park Energy Health Care Side Fund Replacement Efficiency Total $138,537 $424,493 $90,397 $11,706,553 39,503 167,465 167,527 306,002 424,493 90,397 11,913,583 10,774,792 3,403,773 63,094,195 6,756,164 (33,783,311) 50,245,613 306,002 424,493 90,397 62,159,196 279,795 339,010 403,459 403,459 279,795 403,459 742,469 5,346,352 5,346,352 $918,005 918,005 918,005 5,346,352 6,264,357 279,795 918,005 5,749,811 7,006,826 (5,749,811) 44,495,802 26,207 (918,005) 424,493 90,397 10,656,568 $26,207 ($918,005) $424,493 ($5,659,414) $55,152,370 153 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30,2015 Vehicle Building Equipment Maintenance Replacement Replacement Replacement and Repair OPERATING REVENUES Charges for services $362,066 $150,240 $677,064 $491,376 Other revenue 617,286 Total Operating Revenues 979,352 150,240 677,064 491,376 OPERATING EXPENSES Supplies and services 2,920 341,317 OPEB expenses Depreciation 408,979 2,113,178 72,579 Interest and fiscal charges Total Operating Expenses 408,979 2,113,178 75,499 341,317 Operating Income(Loss) 570,373 (1,962,938) 601,565 150,059 NONOPERATING REVENUES(EXPENSES) Interest income 17,420 29,932 19,189 2,847 Gain from sale of property 50,618 62 Total Nonoperating Revenues(Expenses) 68,038 29,932 19,251 2,847 Income(Loss)Before Transfers 638,411 (1,933,006) 620,816 152,906 Transfer(out) (361) (43,247) Net transfers (361) (43,247) Change in Net Position 638,411 (1,933,367) 577,569 152,906 BEGINNING NET POSITION(DEFICIT) 3,848,103 54,149,401 3,483,086 362,980 ENDING NET POSITION(DEFICIT) $4,486,514 $52,216,034 $4,060,655 $515,886 154 Retiree PERS Park Energy Health Care Side Fund Replacement Efficiency Total $1,306,999 $363,030 $104,664 $535,892 $3,991,331 535,229 1,152,515 1,842,228 363,030 104,664 535,892 5,143,846 344,237 1,842,228 1,842,228 2,594,736 156,897 156,897 1,842,228 156,897 4,938,098 363,030 104,664 378,995 205,748 353 2,477 686 72,904 50,680 353 2,477 686 123,584 353 363,030 107,141 379,681 329,332 (126,287) (169,895) (126,287) (169,895) 353 363,030 107,141 253,394 159,437 25,854 (1,281,035) 317,352 (5,912,808) 54,992,933 $26,207 ($918,005) $424,493 ($5,659,414) $55,152,370 155 CITY OF DUBLIN INTERNAL SERVICE FUNDS COMBINING STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED JUNE 30,2015 Vehicle Building Equipment Maintenance Replacement Replacement Replacement and Repair CASH FLOWS FROM OPERATING ACTIVITIES Receipts from other funds $362,066 $150,240 $677,002 $491,376 Payments to suppliers and service providers 8,046 (13,174) (2,717) (338,613) Other revenues 617,286 Cash Flows from(used for)Operating Activities 987,398 137,066 674,285 152,763 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Payments to other funds (361) (43,247) Cash Flows(used for)Noncapital Financing Activities (361) (43,247) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (1,054,960) (352,452) Interest paid on capital lease Capital lease repayment Sales of capital assets 50,618 226,296 62 Cash Flows from Capital and Related Financing Activities (1,004,342) 226,296 (352,390) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 17,420 29,932 19,189 2,847 Cash Flows from Investing Activities 17,420 29,932 19,189 2,847 Net Cash Flows 476 392,933 297,837 155,610 Cash and investments at beginning of year 2,717,577 4,487,289 2,652,655 348,749 Cash and investments at end of year $2,718,053 $4,880,222 $2,950,492 $504,359 Reconciliation of operating income(loss)to net cash flows from operating activities: Operating income(loss) $570,373 ($1,962,938) $601,565 $150,059 Adjustments to reconcile operating income(loss) to net cash flows from operating activities: Depreciation 408,979 2,113,178 72,579 Interest and fiscal charges Change in assets and liabilities: Accounts receivable (62) Prepaid expenses (2,039) Accounts payable and accruals 8,046 (13,174) 203 4,743 CAah Flows from Operating Activities $987,398 $137,066 $674,285 $152,763 156 Retiree PERS Park Energy Health Care Side Fund Replacement Efficiency Total $1,249,185 $363,030 $104,664 $535,892 $3,933,455 (1,859,135) (333,145) (2,538,738) 535,229 1,152,515 (74,721) 363,030 104,664 202,747 2,547,232 (363,030) (126,287) (532,925) (363,030) (126,287) (532,925) (1,407,412) (156,897) (156,897) (378,995) (378,995) 276,976 (535,892) (1,666,328) 353 2,477 686 72,904 353 2,477 686 72,904 (74,368) 107,141 (458,746) 420,883 212,905 317,352 549,143 11,285,670 $138,537 $424,493 $90,397 $11,706,553 $363,030 $104,664 $378,995 $205,748 2,594,736 156,897 156,897 ($57,814) (57,876) (2,039) (16,907) (333,145) (350,234) ($74,721) $363,030 $104,664 $202,747 $2,547,232 157 * This Page Left Intentionally Blank 158 AGENCY FUNDS Agency Funds are used to account for assets held by the City in a fiduciary capacity for individuals, governmental entities and others.These funds carry out the specifications of trust indentures,ordinance or other regulations. DUBLIN BOULEVARD EXTENSION ASSESSMENT DISTRICT To account for the special assessment established to fund the improvements to Dublin Boulevard. ASSOCIATED COMMUNITY ACTION PROGRAM This fund was established for the City to act as the fiscal agent to collect and account for the contributions received from twelve cities in Alameda County and to coordinate administrative service for the closing of the ACAP,a Joint Powers Agency,in social services related programs serving Alameda County communities. GEOLOGIC HAZARD ABATEMENT DISTRICTS Two districts were formed under provisions in the California Public Resource Code, which establishes in section 25670 that a District is a political subdivision of the State and is not an agency or instrumentality of a local agency. The City acts as a trustee of the funds collected and may contractually provide or arrange for services paid for by the District.Fiscal Year 2008-2009 was the first year that tax roll assessments were levied by the Districts. Fallon Village Geologic Hazard Abatement District This assessment district was established in 2007, in accordance with a condition of approval for the Fallon Village development project. The District was formed to provide a mechanism for ongoing maintenance of open space areas within the development. The boundary of this assessment district encompasses approximately 175 acres of land,located generally east of Fallon Road. Schaefer Ranch Geologic Hazardous Abatement District This assessment district was established in 2006, in accordance with a condition of approval for the Fallon Village development project. The District was formed to provide a mechanism for ongoing maintenance of open space areas within the development. The boundary of this assessment district encompasses approximately 500 acres of land,located at the westerly boundary of the City limits north of Interstate 580,and south of the unincorporated area of Alameda County. Fallon Village Annex/Jordan Ranch Geologic Hazard Abatement District This assessment district was established to account for the maintenance of open space areas within the Jordan Ranch development. On May 3,2011 the City Council approved Resolution No. 52-11 which modified the boundaries of the Fallon Village District. The Jordan Ranch property was annexed into the Fallon Village Geologic Hazard Abatement District subject to a separate Engineers report. Fallon Crossing(North Tassajara)Geologic Hazard Abatement District This assessment district was established to account for the maintenance of open space areas in accordance with a condition of approval for the Fallon Crossings development project. The boundary of the District encompasses 68 acres of land located on the northeast side of Tassajara Road, about 2 V4 miles north of Interstate Highway 580, Tassajara Road and Moller Creek, a tributary of Tassajara Creek, border the western and northeastern limits of the site. 159 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30,2015 Balance Balance June 30,2014 Additions Deductions June 30,2015 Dublin Boulevard Extension Assessment District Assets Cash and investments $8,118 $385 $8,503 $8,118 $385 $8,503 Liabilities Due to bondholders $8,118 $385 $8,503 $8,118 $385 $8,503 Associated Community Action Program Assets Cash and investments $115,291 $50,400 $64,891 Accounts receivable $115,291 $50,400 $64,891 Liabilities Accounts payable $2,370 $1,422 $948 Due to trustee 112,921 48,978 63,943 $115,291 $50,400 $64,891 Fallon Village Geologic Hazardous Abatement District Assets Cash and investments $1,144,462 $704,420 $61,595 $1,787,287 Accounts receivable 5,923 4,212 5,923 4,212 $1,150,385 $708,632 $67,518 $1,791,499 Liabilities Accounts Payable $75 $75 Due to trustee $1,150,385 708,557 $67,518 1,791,424 $1,150,385 $708,557 $67,518 $1,791,499 160 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30,2015(Continued) Balance Balance June 30,2014 Additions Deductions June 30,2015 Schaefer Ranch Geologic Hazardous Abatement District Assets Cash and investments $1,328,727 $574,770 $54,455 $1,849,042 Accounts receivable 1,902 1,961 1,902 1,961 $1,330,629 $576,731 $56,357 $1,851,003 Liabilities Accounts Payable $105 $105 Due to trustee 1,330,524 $576,731 56,252 $1,851,003 $1,330,629 $576,731 $56,357 $1,851,003 Fallon Village Annex/Jordan Ranch Geologic Hazardous Abatement District Assets Due from trustee $1,800 $433 $1,800 $433 $1,800 $433 $1,800 $433 Liabilities Due to City $1,800 $433 $1,800 $433 $1,800 $433 $1,800 433 Fallon Crossing(North Tassajara) Geologic Hazardous Abatement District Assets Cash and investments $56,570 $96,615 $11,817 $141,368 Accounts receivable 2,179 2,179 $56,570 $98,794 $11,817 $143,547 Liabilities Accounts Payable Due to trustee $56,570 $98,794 $11,817 $143,547 $56,570 $98,794 $11,817 $143,547 161 CITY OF DUBLIN AGENCY FUNDS STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FOR THE YEAR ENDED JUNE 30,2015(Continued) Balance Balance June 30,2014 Additions Deductions June 30,2015 Totals-All Agency Funds Assets Cash and investments $2,653,168 $1,376,190 $178,267 $3,851,091 Accounts receivable 7,825 8,352 7,825 8,352 Due from trustee 1,800 433 1,800 433 $2,662,793 $1,384,975 $187,892 $3,859,876 Liabilities Accounts payable $2,475 $75 $1,527 $1,023 Due to City 1,800 433 1,800 433 Due to trustee 2,650,400 1,384,082 184,565 3,849,917 Due to bondholders 8,118 385 8,503 $2,662,793 $1,384,975 $187,892 $3,859,876 162 STATISTICAL SECTION This part of the City's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. In contrast to the financial section,the statistical section information is not subject to independent audit. Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well being have changed over time: 1. Net Position by Component 2. Changes in Net Position 3. Fund Balances of Governmental Funds 4. Changes in Fund Balance of Governmental Funds Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax: 1. Assessed Value and Estimated Actuarial of Taxable Property 2. Direct and Overlapping Property Tax Rates 3. Principal Property Taxpayers 4. Property Tax Levies and Collections Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future: 1. Ratio of Outstanding Debt by Type 2. Direct and Overlapping Debt 3. Legal Debt Margin Information Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place: 1. Demographic and Economic Statistics 2. Property Value,Construction and Bank Deposits 3. Principal Employers Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs: 1. Full-Time Equivalent City and Contract Government Employees by Function 2. Operating Indicators by Function 3. Capital Asset Statistics by Function 4. Top 25 Sales Tax Producers 5. Miscellaneous Statistical Data Sources Unless otherwise noted, the information in these schedules is derived from the Comprehensive Annual Financial Reports for the relevant year. 163 ionaimmow City of Dublin Net Position by Component Last Ten Fiscal Years (accrual basis of accounting) 2006 2007 2008 2009 2010 Primary government Governmental activities: Net investment in capital wets $387,888,143 $399,631,407 $411,619,671 $423,474,384 $436,857,107 Restricted 48,480,463 45,647,928 48,572,719 36,906,687 25,004,384 Unrestricted 57,766,785 61,789,687 68,456,077 66,597,197 70,203,471 Total primary government $494,135,391 $507,069,022 $528,648,467 $526,978,268 $532,064,962 Data Source:City of Dublin Administrative Services Department Note:The City adjusted certain beginning balances during fiscal year 20142015.Financial data shown for proceeding years were not adjusted for the presentation. 164 2011 2012 2013 2014 2015 $433,779,703 $433,548,888 $432,722,323 $445,529,366 $444,832,546 21,453,867 36,714,724 52,548,095 60,808,540 74,738,217 76,303,907 86,063,259 99,084,771 97,918,858 107,176,361 $531,537,477 $556,326,871 $584,355,189 $604,256,764 $626,747,124 165 City of Dublin Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) 2006 2007 2008 2009 2010 Governmental activities: General government $ 4,940,586 $ 8,866,758 $ 7,790,286 $ 8,721,545 $ 8,396,199 Police Fire Public works Parks and community service Economic development Public safety 20,314,535 22,306,240 23,282,634 23,880,635 23,797,696 Highways and streets 13,894,865 17,182,208 20,196,4% 20,368,655 15,969,371 Health and welfare 1,887,417 1,816,800 1,689,353 1,869,428 3,615,077 Culture and leisure services 10,074,239 14,080,040 12,200,759 11,563,136 10,757,355 Community development 8,553,887 11,157,417 8,276,993 7,175,272 5,112,469 Total governmental activities 59,665,529 75,409,463 73,436,521 73,578,671 67,648,167 Program revenues: Governmental activities: Charges for services: General government 4,011 208,247 216,334 215,711 219,386 Police Fire Public works Parks and community service Economic development Public safety 1,270,233 2,284,955 1,301,328 1,545,935 1,600,890 Highways and streets 2,167,740 745,727 13,794 598,542 8,078,369 Health and welfare 2,092,566 2,483,619 3,301,877 3,050,719 2,798,092 Culture and leisure services 1,751,965 1,508,752 1,722,627 1,719,501 2101,867 Community development 6,629,383 9,432,854 5,599,417 4,720,221 3,775,102 Operating grants and contributions 238,053 2,813,079 2,747,497 2,245,945 2,229,043 Capital grants and contributions 18,900,426 25,973,730 37,393,930 14,599,068 12,254,443 Total governmental activities 33,054,377 45,450,963 52,296,804 28,695,642 33,057,192 Net revenues(expenses): $ (26,611,152) $ (29,958,500) $ (21,139,717) $ (44,883,029) $ (34,590,975) General revenues and other changes in net assets: Governmental activities: Taxes: Property taxes 16,891,670 20,266,216 22,229,039 23,311,587 22,287,783 Special assessment taxes Sales tax 14,363,863 14,025,869 14,225,661 12,832,417 12183,267 Other taxes 3,343,943 3,508,587 3,504,501 2,180,846 3,201,219 Motor vehicle tax,unrestricted 856,766 261,276 197,245 160,242 141,221 Investment income,unrestricted 2,505,911 4,053,187 4,399,908 4,266,601 758,016 Other general revenues 280,386 1,109,734 1,202,074 461,137 1,106,163 Total governmental activities 38,242,539 43,224,869 45,758,428 43,212,830 39,677,669 Changes in net assets $ 11,631,387 $ 13,266,369 $ 24,618,711 $ (1,670,199) $ 5,086,694 Data Source:City of Dublin Administrative Services Department 166 2011 2012 2013 2014 2015 $ 9,322,322 $ 10,116,219 $ 10,265,476 $ 17,665,221 $ 10,774,480 15,325,113 12,198,769 15,336,225 12,149,716 679,313 24,413,496 26,781,283 26,846,045 27,770,111 10,142,946 6,709,217 7,241,263 4,305,390 12,749,042 146,204 3,753,875 4,057,796 9,304,429 9,804,128 10,772,868 9,018,161 5,482,552 6,089,415 9,979,877 9,169,788 5,713,196 71,414,787 59,646,466 68,859,404 71,986,467 72,176,812 225,109 140,418 142,353 153,544 5,777,971 399,802 1,746,581 2,978,235 3,009,383 1,821,404 1,061,352 2482,060 2,164,085 450,937 738,662 470,063 484,801 2,874,952 3,063,223 3,422,782 3,631,344 2,214,407 1,909,812 2,463,146 2,753,911 5,546,417 9,051,970 9,540,241 10,393,367 7,657,467 2,220,247 1,008,318 1,135,050 1,674,815 955,677 15,745,614 23,668,070 28,689,753 20,914,994 21,931,981 31,099,087 40,641,825 48,345,448 42,170,861 44,457,097 $ (40,315,700) $ (19,004,641) $ (20,513,956) $ (29,815,606) $ (27,719,715) 21,918,484 22,246,360 23,590,102 25,286,308 29,437,951 1,264,204 12,969,119 14,996,932 15,359,340 17,833,314 19,211,823 3,798,515 4,295,675 5,054,257 5,427,627 6,159,654 250,974 536,047 865,719 (399,590) 853,147 550,272 1,079,419 1,389,349 4,938,165 316,785 3,163,387 40,552,558 43,794,035 48,542,274 49,717,181 59,787,291 $ 236,858 $ 24,789,394 $ 28,028,318 $ 19,901,575 $ 32,067,576 167 v City of Dublin Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2006 2007 2008 2009 2010 General Fund Reserved $ 2,080,678 $ 5,741,942 $ 5,623,014 $ 5,343,610 $ 5,922,446 Unreserved,designated for: Advance to TVTD W.BART station contribution - - - - 1,000,000 Affordable Housing 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Authorized expenditures 38,860,039 44,328,550 42,181,292 34,474,209 3,960 Capital improvements 5,985,440 4,258,539 8,884,334 11,049,175 7,394,088 Cash Flow&Operation Stability - - - - 8,860,000 Catastrophic Loss&Business Recovery - - - - 8,420,000 Capital Improvements Projects Carryover - - - - 203,507 Compensated Absences - - 744,041 791,582 802,311 Economic Uncertainty 2,970,720 2,970,722 2,970,722 5,868,847. 5,868,847 Emergency Communication System - - - 210,000 1,000,000 Fire Retiree Medical - - 500,000 750,000 4,500,000 Innovation&New Opportunities - - - - 13,000,000 Investment Market Value Adjustment - - 1,508,906 2,334,061 1,516,569 Operation Carryover - - - 301,874 171,100 Service Continuity Obligation - - - - 1,350,000 Unreserved,undesignated - - - - - Non-Spendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - - - Total general fund $ 50,896,877 $ 58,299,753 $ 63,412,309 $ 62,123,358 $ 61,012,828 All Other Governmental Funds Reserved $ 48,140,467 $ 43,485,046 $ 50,789,419 $ 34,570,414 $ 25,004,384 Unreserved,designated,reported in Special revenue funds Capital projects funds Undesignated (1,893,598) (1,791,762) (1,837,021) (1,841,336) (3,168,929) Non-Spendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - Total all other governmental funds $ 46,246,869 $ 41,693,284 $ 48,952,398 $ 32,729,078 $ 21,835,455 Total All Governmental Funds $ 97,143,746 $ 99,993,037 $112,364,707 $ 94,852,436 $ 82,848,283 Data Source:City of Dublin Administrative Services Department Note: All Other Governmental Funds includes the City's Major and Non Major Capital Project and Special Revenue Funds, exduding the General Fund. In FY2011 the City implemented GASB No.54-the new Fund Balance Reporting and Governmental Fund Type Definitions. This Statement establishes the definitions for new categories for reporting fund balance and revises the definitions for governmental fund types. As a result five new components of fund balance were established: Non-Spendable,Restricted,Committed, Assigned,and Unassigned.Prior to FY2011,the Fund Balances were reported as Reserved and Unreserved Fund Balances. Post FY2010,the Reserved Fund Balances were further categorized as Non-Spendable,Restricted and Committed and the Unreserved Fund Balances were classified as Assigned and Unassigned. 168 2011 2012 2013 2014 2015 $ - $ - $ - $ - $ 4,096,768 3,433,886 2,836,130 2,465,678 1,475,691 - - 500,000 500,000 500,000 27,893,755 24,176,650 36,020,171 34,124,267 38,531,179 17,407,053 22,080,677 23,912,896 29,259,333 35,875,264 14,745,685 15,072,535 14,047,932 13,228,484 21,324,360 $ 64,143,261 $ 64,763,748 $ 77,317,129 $ 79,577,762 $ 97,706,494 $ - $ - $ - $ - $ - 21,453,867 38,073,638 53,646,702 61,710,448 75,646,848 - - - 21,743 (1,735,988) (1,358,914) (1,098,607) (923,409) (930,131) $ 19,717,879 $ 36,714,724 $ 52,548,095 $ 60,787,039 $ 74,738,460 $ 83,861,140 $ 101,478,472 $ 129,865,224 $ 140,364,801 $ 172,444,954 169 City of Dublin Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 2006 2007 2008 2009 2010 Revenues: Property taxes $16,891,670 $20,266,213 $22,229,039 $23,306,302 $22,286,209 Taxes other than property 18,014,431 17,967,499 18,188,593 15,436,466 15,783,099 Intergovernmental 2,593,336 2,845,936 3,431,314 2,393,153 7,951,237 Licenses and permits 3,142,223 2,572,069 1,784,644 1,623,029 2,260,364 Charges for services 7,090,105 9,476,984 8,101,935 7,759,628 7,100,403 Investment income 2,859,433 5,840,949 6,101,736 5,597,303 1,475,308 Use of property 123,154 203,240 335,151 989,081 1,491,413 Fines and forfeitures 340,336 342,098 360,496 318,737 312,778 Developer fees 17,018,274 8,618,271 18,226,041 1,875,841 4,387,339 Special assessments 645,230 716,144 797,520 826,717 868,348 Other revenues 826,715. 960,534 2,497,249 3,312,774 1,778,477 Total revenues 69,544,907 69,809,937 82,053,718 63,439,031 65,694,975 Expenditures Current General government 4,983,006 5,619,088 5,590,247 6,047,115 8,957,744 Police Fire Public works Parks and community service Economic development Public safety 20,542,375 22,148,312 23,629,954 23,951,223 24,241,160 Highways and streets 2,536,127 2,726,599 2,719,532 3,168,513 2,985,311 Health and welfare 1,906,950 1,626,197 1,706,918 1,888,631 3,653,297 Culture and leisure services 5,948,563 6,874,596 7,207,896 7,621,663 7,267,805 Community development 8,199,933 8,173,711 8,335,105 7,364,651 5,300,211 Capital outlay: General 666,160 377,026 411,293 4,221,956 742,754 Health and welfare - 75,526 - - - Community improvements 838,618 95,672 218,058 68,236 82,333 Culture and leisure - - - - - Parks 10,189,487 10,711,807 8,820,229 9,409,692 10,706,350 Stets 7,102,450 5,532,110 11,042816 13,742,919 13,762,167 Debt service: Principal - - - - - Total expenditures 62,913,669 63,960,644 69,682,048 77,484,599 77,699,132 Excess(deficiency of revenues over(under) expenditures 6,631,238 5,849,293 12,371,670 (14,045,568) (12004,157) Other financing sources(uses): Transfers in 21,789 90,399 77,528 26,232 25,777,410 Transfers out (21,789) (90,399) (77,528) (26,232) (25,777,410) Total other financing sources(uses) - - - - - Net change in fund balances $ 6,631,238 $ 5,849,293 $ 12,371,670 $ (14,045,568) $ (12,004,157) Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.0% 0.0% 0.0% Data Source:City of Dublin Administrative Services Department 170 2011 2012 2013 2014 2015 $22,067,074 $22,398,847 $23,742,336 $25,448,254 $29,437,951 17,210,947 19,761,015 20,915,025 23,769,133 25,371,476 3,946,271 3,962,572 4,534,748 2,574,159 3,245,822 2,752,748 4,501,736 5,224,932 5,944,985 6,025,685 8,743,460 10,331,501 11,979,079 12,326,848 13,737,934 952,819 1,068,138 (185,467) 1,101,634 1,071,936 978,642 659,857 580,507 1,591,784 2,352,810 303,595 284,993 326,027 323,601 320,629 9,390,001 15,965,329 19,545,692 15,757,068 18,578,172 904,739 944,455 980,775 1,025,239 1,264,201 4,135,091 4,509,762 9,134,201 2,712,998 3,473,012 71,385,387 84,388,205 96,777,855 92,575,703 104,879,628 7,935,407 7,001,850 7,600,102 8,411,507 10,663,140 15,697,432 11,930,245 8,481,686 9,731,003 808,272 24,546,456 26,298,962 26,643,549 27,381,497 3,030,540 2,768,068 3,096,498 3,042,476 12,775,536 4,422,468 4,149,599 4,379,634 7,223,808 8,248,229 8,919,816 9,349,729 5,609,603 7,362,732 8,586,129 9,102,734 6,059,180 599,965 6,641,674 8,866,096 13,316,472 1,241,494 328,418 213,777 81,234 21,497 68,190 - 996,669 2,324,586 9,451,657 4,742,328 3,809,723 - - - - 4,513,072 2,959,555 4,946,527 2,403,926 3,568,142 70,372,528 66,913,984 75,214,136 86,861,129 72,991,112 1,012,859 17,474,221 21,563,719 5,714,574 31,888,516 9,163,360 10,898,009 16,338,838 25,192,268 9,625,456 (9,163,360) (10,754,898) (9,515,805) (20,385,523) (9,455,561) - 143,111 6,823,033 4,806,745 169,895 $ 1,012,859 $ 17,617,332 $ 28,386,752 $ 10,521,319 $ 32,058,411 0.0% 0.0% 0.0% 0.0% 0.0% 171 This Page Left Intentionally Blank CITY OF DUBLIN.CALIFORNIA Assessed Value of Taxable Property Last Ten Fiscal Years Fiscal Year Real Property Net Taxable Ended Residential Commercial Industrial Unsecured/ Less: Assessed City Wide Avg. June 30 Property Property Property Other Property Exemptions Value Total Direct Tax Rate 2006 S 4,520,222,157 S 1,052,701,438 S 162,182,398 S 652,279,788 $(77,085,570) S 6,310,300,211 0.2390% 2007 5,345,937,692 1,068,813,294 161,909,866 873,737,282 (80,274,178) 7,370,123,956 0.2387% 2008 5,870,526,565 1,112,837,055 171,673,012 1,072,734,321 (78,188,899) 8,149,582,054 0.2385% 2009 6,203,330,781 1,241,301,664 198,082,746 1,032,449,487 (36,478,516) 8,638,686,162 0.2385% 2010 5,868,488,395 1,326,481,267 212,939,326 983,426,713 (49,873,361) 8,341,462,340 0.2386% 2011 5,967,980,343 1,285,382,821 209,573,141 843,686,092 (115,875,189) 8,190,747,208 0.2386% 2012 6,114,540,497 1,263,207,583 246,434,460 859,683,607 (120,225,737) 8,363,640,410 0.2386% 2013 6,378,930,469 1,330,147,064 245,481,519 948,525,966 (112,296,063) 8,790,788,955 0.2380% 2014 7,135,260,308 1,336,760,537 246,334,563 1,035,990,618 (111,067,996) 9,643,278,030 0.2373% 2015 8,431,051,125 1,391,578,857 274,410,187 1,138,571,747 (121,616,290) 11,113,995,626 0.2367% Source: T•IDL Coren&Cone and Alameda County Assessor Combined Tax Rolls,2005/06 through 2014/15 Note: Actual property value data not available in California. (1) California cities do not set their own direct tax rate.The state constitution establishes the rate at 1%and allocates a portion of that amount by an annual calculation,to all the taxing entities within a tax rate area. (2) The City-wide Direct Tax Rate is an average,the actual tax rate for each property varies according to its tax rate area.This average tax rate is net of State Shifts of local property tax revenue to Education and net of Admin fees. 173 CITY OF DUBLIN.CALIFORNIA Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate per$100 of assessed value) City Direct Rates Overlapping Rates(1) Castro Valley Chabot-Las Positas Dublin Fiscal Basic Total Bay Area Unified Community Unified Year Levy Direct Rapid Transit School Bonds College Boards Bonds 1A&B 2005-06 1.00000 0.23900 0.00480 0.07180 0.01580 0.08170 2006-07 1.00000 0.23870 0.00500 0.08110 0.01590 0.08850 2007-08 1.00000 0.23850 0.00760 0.09720 0.01640 0.08500 2008-09 1.00000 0.23850 0.00900 0.09690 0.01830 0.07320 2009-10 1.00000 0.23860 0.00570 0.10230 0.01950 0.08160 2010-11 1.00000 0.23860 0.00310 0.10040 0.02110 0.10110 2011-12 1.00000 0.23860 0.00410 0.09890 0.02140 0.09700 2012-13 1.00000 0.23796 0.00430 0.09240 0.02190 0.09930 2013-14 1.00000 0.23730 0.00750 0.08510 0.02140 0.11470 2014-15 1.00000 0.00237 0.00450 0.08520 0.02170 0.10770 Source: HDL Coren&Cone and Alameda County Assessor Combined Tax Rolls,2004/05 through 2013/14 (1)Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.These are voter approved levies in addition to the 1%State levy. (2)The City's share of the 1%Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. 174 East Bay Flood Zone 7 Livermore Valley Total City's Share Regional State Water Joint Unified Direct&Overlapping of 1%Levy per Park Bonds School Board Tax Rate Proposition 13 0.00570 0.01300 0.08300 1.27580 0.2818 0.00850 0.01510 0.06920 1.28330 0.2818 0.00800 0.01500 0.06260 1.29180 0.2818 0.01000 0.01690 0.06160 1.28590 0.2818 0.01080 0.02030 0.06740 1.30760 0.2818 0.00840 0.02500 0.06350 1.32260 0.2818 0.00710 0.03070 0.06270 1.32190 0.2818 0.00510 0.02280 0.06070 1.30650 0.2818 0.00780 0.02570 0.05960 1.32180 0.2818 0.00850 0.02500 0.04970 1.30230 0.2817 175 CITY OF DUBLIN.CALIFORNIA Principal Property Tax Payers Current year and Nine Years Ago 2014-15 2005-06 Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Turst NOIP Dublin LP $ 152,798,425 1 1.40% 4800 Tassajara Road Apartments Investors 113,834,785 2 1.05% Dublin Station Owner,LLC 106,015,080 3 0.97% Dublin Corporate Center Acquisitions 100,576,750 4 0.92% Bere Island Properties I,LLC 87,634,958 5 0.81% Tishman Speyer Archstone Smith Emerald 84,204,834 6 0.77% Ross Dress for Less,Inc. 75,034,787 7 0.69% Bit Holdings Sixty-Three Inc. 75,080,421 8 0.69% Kaiser Foundation Hospitals 66,110,266 9 0.61% Essex Dublin Owner LP 65,728,948 10 0.60% Shops at Waterford LLC $ 120,381,158 1 1.91% Toll California II Limited Partnership 117,145,829 2 1.86% Bit Holdings Fifty Six Inc 116,782,555 3 1.85% Acre Dublin LLC 107,483,658 4 1.70% Chang Lin,Et.Al 102,180,876 5 1.62% Bere Island Properties I LLC Et.Al. 77,853,684 6 1.23% Bit Investment Eleven Limited Partnership 65,943,000 7 1.05% Capital Pacific Security Trust 64,450,852 8 1.02% Cisco Systems Inc. 62,425,500 9 0.99% Park Sierra LLC 45,618,596 10 0.72% Subtotal $ 927,019,254 8.51% $ 880,265,708 13.95% Source:HDL Coren&Cone and Alameda County Assessor Combined Tax Rolls 176 CITY OF DUBLIN.CALIFORNIA Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Total Taxable Collections within Fiscal Year of Levy: Ended Assessed Total Gross Less Prior Less Net Percent June 30 Value Tax rate Tax Levy(1) Collections(2) Year(3) In-Lien Collection(4) of Levy 2006 $6,310,300,211 0.2390 $ 15,081,618 S 16,775,906 $ (378,910) $ (2,599,432) S 13,797,564 91% 2007 7,370,123,956 0.2387 17,592,486 21,199,390 (368,414) (3,034,577) 17,796,399 101% 2008 8,149,582,054 0.2385 19,436,753 23,229,544 (619,886) (3,352,904) 19,256,754 99% 2009 8,638,686,162 0.2385 20,603,266 24,388,892 (1,050,294) (3,524,237) 19,814,361 96% 2010 8,341,462,340 0.2386 19,902,729 23,517,751 (1,073,440) (3,401,946) 19,042,366 96% 2011 8,190,747,208 0.2386 19,543,123 23,503,540 (729,274) (3,340,371) 19,433,895 99% 2012 8,363,640,410 0.2386 19,955,646 23,805,376 (571,013) (3,410,185) 19,824,178 99% 2013 8,790,788,955 0.2380 20,918,561 25,420,484 (598,163) (3,584,445) 21,237,877 102% 2014 9,643,278,030 0.2373 22,883,947 27,459,463 (511,177) (3,932,136) 23,016,150 101% 2015 11,113,995,626 0.2367 26,305,755 31,730,863 (506,331) (4,531,787) 26,692,745 101% Source:Alameda County Office of the Auditor-Controller,HDL Coren&Cone,and City of Dublin Administrative Services Department (1)Total Taxable Assessed Value at Citywide Average Total Direct Tax Rate:this is the levy after the ERAF deduction (2)Gross Collection includes Secured,Unsecured,Unitary/Supplemental,Penalties,and In-Lieu Property Tax (3)Alameda County does not provide delinquent tax collection data by levy year or distinguish between delinquent taxes and penalties and interest,so the amounts shown in the delinquent tax collections column include the delinquency collections for all prior years,including penalties and interest,that were remitted to the City in each fiscal year (4)Net Collection removes Prior Year Collections,Penalties,and In-Lieu Property Taxes 177 CITY OF DUBLIN.CALIFORNIA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Notes,Capital Year Lease and Total Total Percentage Debt Ended Mortgage Governmental Primary of Personal Per June 30 Payable Activities Governments income Capita 2006 2007 2008 2009 2010 2011 2012 2013 $6,755,824 $6,755,824 $6,755,824 $156 2014 6,128,806 6,128,806 6,128,806 N/A 2015 5,749,811 5,749,811 5,749,811 N/A Sources: (1)United States Census Bureau,most recent data available November 2014. Personal Income at June 30,2014 not available. (2)City of Dublin Administrative Services Department. 178 CITY OF DUBLIN,CALIFORNIA Direct and Overlapping Debt June 30,2015 Total Property Tax Assessed Value of Taxable Property Percentage Outstanding Debt Applicable to Estimated Share of 6/30/2015 City of Dublin a) Overlapping Debt OVERLAPPING TAX AND ASSESSMENT DEBT: Bay Area Rapid Transit District $ 630,795,000 1.9820% S 12,502,356.90 Chabot-Las Posits,Community College District 426,226,042 11.457% 48,832,717.63 Dublin Joint Unified School District 272,344,336 99.975% 272,276,249.92 East Bay Regional Park District 176,790,000 3.002% 5,307,235.80 City of Dublin 1915 Act Bonds - - California Statewide Communities Development Authority 1915 Act Bonds 992,795 100.0% 992,795 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 339,911,355.25 DIRECT AND OVERLAPPING OTHER DEBT Alameda County General Fund Obligations 869,204,500 5.041% 43,816,599 2012 Chevron Energy Capital Lease Obligations 6,766,000 100.0% 6,766,000 Alameda County Pension Obligations 67,164,225 5.041% 3,385,749 Alameda-Contra Costa Transit District Certificates of Participation 24,790,000 0.167% 41,399 S 54,009,746.73 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 393,921,101.98 COMBINED TOTAL DEBT(2) $ 393,921,101.98 RATIOS TO ASSESSED VALUATION: Direct Debt .0.00% Total Direct and Overlapping Tax and Assessment Debt 3 06% Combined Total Debt 3 54% Source: California Municipal Statistics,Inc. Notes: (l) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes,enterprise revenue and mortgage revenue. 179 CITY OF DUBLIN,CALIFORNIA Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2005-06 2006-07 2007-08 2008-09 Debt limit $ 239,526,967 $ 279,389,930 $ 308,541,411 $ 325,318,675 Total net debt applicable to limit - - - Legal debt margin $ 239,526,967 $ 279,389,930 $ 308,541,411 $ 325,318,675 Total net debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% (1) Source: City of Dublin Administrative Services Department (2) The legal debt margin for the City of Dublin,California,is calculated using a debt limit of 15 percent of the assessed value of property within the City limits.(Gov Code of State of California) (3)The government code provision was enacted when assessed valuation was based upon 25%of market value.Effective with the 1981-82 fiscal year,each parcel in now assessed at 100%of market value(as of the most recent change in ownership parcel)in ownership for that parcel.)The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25%level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. 180 Legal Debt Margin Calculation for Fiscal Year 2014-15 Assessed value(net)-June 30,2015(1) $ 11,113,995,626 Debt limit: 15%of assessed value 1,667,099,344 Less total bonded debt,general obligation - Legal debt margin(2) $ 1,667,099,344 Conversion Percentage for Calculation of Debt Limit(3) 25% $ 416,774,836 Fiscal Year 2009-10 2010-11 2011-2012 2012-13 2013-14 2014-15 $ 314,675,089 $ 311,498,340 $ 318,144,981 $ 333,865,688 $ 361,622,926 $ 416,774,836 $ 314,675,089 $ 311,498,340 $ 318,144,981 $ 333,865,688 $ 361,622,926 $ 416,774,836 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 181 CITY OF DUBLIN.CALIFORNIA Demographic And Economic Statistics Last Ten Calendar Years (Dollars in Thousands) Per Capita Rank in Size Fiscal City Personal Personal Unemployment of Year Population(1) Income,in thousands(1) Income (1) Rate(2) California Cities(1) 2005 39,774 $ 1,477,082 $ 37,137 3.1% 192 2006 41,848 1,719,669 41,093 2.6% 190 2007 43,563 1,904,687 43,723 2.8% 184 2008 46,869 2,077,720 44,330 3.7% 180 2009 47,953 2,034,463 42,426 6.5% 179 2010 45,672 1,700,094 34,823 6.9% 179 2011 46,785 1,677,944 35,865 6.3% 182 2012 49,890 1,819,688 36,474 4.2% 175 2013 53,462 2,321,908 43,431 3.5% 181 2014 54,695 2,333,289 42,660 3.6% 185 Sources: (1)United States Census Bureau,most recent data available November 2014 (2)Bureau of Labor Statistics-Unemployment Rate as of June 30,2014 182 CITY OF DUBLIN.CALIFORNIA Property Value,Construction,and Bank Deposits Last Ten Fiscal Years Total Number of Commercial Residential Fiscal Year Ended Building Permits Construction Value Construction Value 30-Jun Issued(1) (1) (1) Bank Deposits(2) 2006 1199 $ 96,389,754 $ 207,862,999 $ 915,006,000 2007 1214 56,832,941 178,094,884 985,835,000 2008 1333 18,256,381 59,647,886 981,685,000 2009 1101 23,968,805 63,242,418 1,094,869,000 2010 1345 17,407,699 124,930,163 1,051,570,000 2011 1471 40,005,124 165,324,045 1,281,183,000 2012 2110 28,775,536 344,927,791 N/A 2013 2425 21,139,964 386,984,935 N/A 2014 2443 57,812,261 322,511,777 N/A 2015 2068 60,793,275 295,988,465 N/A Source: 1)City of Dublin Community Development Department 2)Findley Reports,Inc Bank Deposits represents the amount of cash deposits held by financial institutions within the city annually,Jan thru Dec. 183 This Page Left Intentionally Blank CITY OF DUBLIN,CALIFORNIA Principal Employers Current Year and Prior Year (Dollars in thousands) 2014 2015 Estimated Estimated Number of Number of Employer Employees Rank Employees Rank United States Government &Federal Correction Institute 2,100 1 2,100 1 Ross Stores Headquarters 1,200 2 1,200 2 Dublin Unified School District 733 3 1,117 3 SAP(Formerly:Sybase Corporation) 604 4 604 4 Zeiss Meditec 535 5 535 5 County of Alameda 465 6 465 6 Target Stores 412 7 388 7 Callidus Cloud N/A N/A 350 8 Micro Dental Laboratories 242 8 N/A N/A De Silva Gates Construction N/A N/A 300 9 Safeway 284 9 284 10 City of Dublin 221 10 N/A N/A Subtotal 6,796 7,343 Total City Day Population Source:City of Dublin Economic Development Department 185 CITY OF DUBLIN CALIFORNIA Full-Time Equivalent City and Contract Government Employees by Function Last Ten Fiscal Years Adopted for Fiscal Year Ended June 30, 2006 2007 2008 2009 Function General government City Manager 7.17 6.25 6.50 6.50 Administrative Services 11.50 11.50 12.00 12.00 Central Services& Building Management 3.43 3.75 3.51 3.52 Public Safety Police 57.00 59.00 61.00 61.00 Fire 40.25 40.25 40.75 40.78 Disaster Preparedness 0.33 0.33 0.50 0.50 Transportation Public Works 6.50 7.50 8.50 8.50 Streets Maintenance 10.14 10.57 10.73 9.93 Health and welfare Environmental Housing 1.75 1.75 1.75 2.90 Waste Management 0.33 0.33 0.33 1.33 Culture and leisure services Parks Community Services 14.00 14.00 15.50 16.00 Park Maintenance 9.10 9.53 9.55 9.92 Parks/Facilities Management 2.00 2.00 2.00 2.00 Library Services 0.51 0.48 0.45 0.43 Heritage&Cultural Arts 2.30 2.32 2.53 2.49 Community Development Planning&Building 34.50 33.90 32.50 27.10 Economic Development 1.00 1.00 1.00 1.50 Engineering 13.35 13.35 13.35 12.35 Total 215.16 217.81 222.45 218.75 Source: City of Dublin Administrative Services Department Note:Include Full Time,Part Time,Temporary,and Contract Employees 186 Adopted for Fiscal Year Ended June 30, 2010 2011 2012 2013 2014 2015 6.00 6.00 6.50 6.50 6.50 6.34 11.50 11.50 11.50 11.50 11.75 11.75 3.18 3.32 3.57 3.09 3.45 3.95 61.00 59.00 59.00 59.00 60.00 59.00 39.77 39.74 39.64 39.64 39.64 39.64 0.50 0.46 0.46 0.59 0.59 0.33 6.45 5.45 5.45 5.45 5.48 5.88 9.18 9.85 9.85 10.08 10.32 11.60 2.50 2.50 3.00 2.59 2.59 1.50 3.20 3.00 2.25 2.25 2.50 2.50 0.33 0.33 0.33 1.08 1.08 1.83 16.60 15.60 15.55 16.25 15.50 16.81 9.65 8.94 9.36 10.10 11.65 13.07 2.00 2.00 2.25 2.25 3.45 4.30 0.39 0.42 0.42 0.37 0.37 0.38 2.47 3.59 3.26 3.70 5.92 4.40 19.05 19.25 20.95 22.45 23.45 24.45 1.50 1.50 2.50 2.50 3.50 3.50 9.00 8.00 9.00 9.00 9.00 8.00 204.27 200.45 204.84 208.39 216.74 219.23 187 CITY OF DUBLIN CALIFORNIA Operating Indicators by Function/Program Last Ten Fiscal Years Fiscal Year Function/Program 2006 2007 2008 2009 Police: Calls for Service 46,197 41,306 41,652 38,983 Citations Issued 10,595 11,676 11,768 7,086 Arrests 2,020 1,668 2,021 1,620 Fire: Emergency calls 1,771 1,780 1,978 1,969 Inspections 4,122 4,048 2,213 1,952 Building Plan Reviews and Consultations 1,006 1,049 922 511 Public Works: Bice Path Maintenance(hours) 726 810 775 775 Street Sign Maintenance(number of signs) 435 427 135 74 Curb Painting(linear feet) 3,991 4,006 2,468 2,395 Replace Street Asphalt(square feet) 7,950 13,800 33,000 29,000 Street Sweeping(curb miles) 5,730 5,927 6,075 6,341 Parks and Community Services: Museum Visitors 1,350 2,140 2,225 2,040 Afterschool Recreation(participants/day) 138 153 180 167 Preschool Classes Participants 285 254 399 402 Youth Basketball League Participants 580 588 570 591 Senior Center Average Daily Attendance 149 180 185 190 Community Development: Planning Applications 59 55 55 64 Building Permits 1,855 1,910 1,333 1,101 Building Inspections 34,244 36,071 25,602 12,302 Source:City of Dublin 188 Fiscal Year 2010 2011 2012 2013 2014 2015 38,125 39,474 38,580 34,966 34,567 32,496 10,101 9,023 9,229 8,699 8,530 7,175 1,556 1,624 1,542 1,419 1,934 1,091 1,999 2,244 2,323 2,688 2,859 2,667 3,576 2,833 3,308 3,538 3,664 3,948 474 498 1,319 1,492 1,561 1,072 697 603 625 668 749 416 325 258 313 205 426 368 6,607 5,464 6,523 6,400 5,808 32,512 30,000 57,000 26,000 37,000 18,112 15,800 5,083 5,294 5,519 5,901 5,931 5,953 3,530 3,680 4,415 8,612 8,256 5,272 176 240 27 228 322 364 690 628 610 571 430 327 772 710 729 812 911 994 198 206 217 211 220 233 62 66 62 77 59 56 1,345 1,471 2,110 2,425 2,443 2,068 8,933 11,308 15,961 26,045 22,345 20,197 189 CITY OF DUBLIN.CALIFORNIA Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year 2006 2007 2008 2009 Function/Program Public safety: Police stations 1 1 1 1 Fire stations 3 3 3 3 Public works: Street Lights 3,752 3,972 4,193 4,479 Miles of Streets 81 104 93 103 Miles of curbs 202 217 217 218 Traffic Signals 67 75 79 81 City Street Trees 6,084 6,084 6,084 6,499 City Landscape(acres) 45 45 45 45 Parks and recreation: Number of Community Facilities 7 7 7 7 Number of City Parks 11 11 16 16 Acres of City Parks 109 109 122 201 Acres of Open Space 126 126 122 125 Source:City of Dublin *The Street Lights count for FY2011 is the same as reported in FY2010.Comparable data is not available at the time the report is prepared. 190 Fiscal Year 2010 2011 2012 2013 2014 2015 1 1 1 1 1 1 3 3 3 3 3 3 4,526 3,780 4,281 4,354 4,513 4,520 105 113 115 116 120 120 222 223 237 242 248 248 85 85 89 91 93 93 7,054 7,418 7,268 7,408 7,477 7,521 57 57 65 67 69 70 7 7 7 7 7 6 16 18 18 18 20 20 201 209 209 209 220 220 125 125 125 125 125 125 - 191 Alsoomma CITY OF DUBLIN.CALIFORNIA Top 25 Sales Tax Producers 2014-15 Business Name Business Category Dublin Toyota Motor Vehicle Dealer Dublin Buick/Cadillac/Chevrolet/GMC Motor Vehicle Dealer Graybar Electric Electrical Equipment Dublin Honda Motor Vehicle Dealer Target Discount Department Store Stoneridge Chrysler/Jeep/Dodge Motor Vehicle Dealer Dublin Nissan Motor Vehicle Dealer Dublin Mazda Motor Vehicle Dealer Lowes Lumber/Building Materials Best Buy Electronics/Appliances Stores Dublin Hyundai Motor Vehicle Dealer Dublin Volkswagen Motor Vehicle Dealer Epicor Software Office Supplies/Furniture Safeway Grocery/Liquor Store Sky River RV Trailers/RVs Safeway Gas Service Stations Carl Zeiss Opthalmic Systems Medical/Biotech Bed Bath&Beyond Home Furnishings Toys R Us Specialty Stores Alameda County Auction Motor Vehicle Dealer Shell Service Service Stations Alcosta Shell Service Stations TJ Maxx Family Apparel Lazy Dog Restaurant Restaurants HD Supply Lumber/Building Materials Source:Hinderliter,de Llamas&Associates,State Board of Equalization 192 CITY OF DUBLIN.CALIFORNIA Miscellaneous Statistical Data June 30,2015 General Date of Incorporation February 1, 1982 Form of Government Council/Manager Total Population (Estimated per the California Department of Finance,January 1,2015) 51,784 Number of Registered Voters 22,890 Employees,City,and Contract(Full Time Equivalent) 220.23 Area(Square Miles) 14.91 Parks and Recreation Parks 20 Acres in Parks 220 Acres in Open Space 125 Public Education Elementary Schools 7 Middle Schools 2 High School 1 Continuation High School 1 Education Center 1 School Enrollment 9,255 Police Protection Number of Stations 1 Police Personnel(Full Time Equivalent) 59 Fire Protection Number of Stations 3 Fire Personnel(Full Time Equivalent) 39.91 Community Facilities Dublin Civic Center 1 Dublin Senior Center 1 Dublin Swim Center 1 Dublin Heritage Center 3 Dublin Public Library 1 Shannon Community Center 1 Emerald Glen Activity Center 1 Source:City of Dublin 193 This Page Left Intentionally Blank