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HomeMy WebLinkAbout4.5 - Annual Comprehensive Financial Report (ACFR) and Annual Audit for Fiscal Year Ending June 30, 2021 and Supplemental Reports Completed by the AuditorsSTAFF REPORT CITY COUNCIL Page 1 of 6 Agenda Item 4.5 DATE:December 21, 2021 TO:Honorable Mayor and City Councilmembers FROM:Linda Smith, City Manager SUBJECT:Annual Comprehensive Financial Report (ACFR) and Annual Audit for Fiscal Year Ending June 30, 2021 and Supplemental Reports Completed by the AuditorsPrepared by:Jay Baksa, Assistant Administrative Services Director EXECUTIVE SUMMARY:The City Council will receive the Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ending June 30, 2021. This report includes financial statements prepared by Staff along with the audit prepared by Badawi and Associates, the independent auditors selected by the City Council. The ACFR is a report which encompasses information beyond minimum financial reporting requirements. The Auditors have provided a "clean opinion" based on their review. The Auditors have also completed the following supplemental reports: 1) a compliance audit of Alameda County Transportation Commission Measure B Funds; 2) a compliance audit of Alameda County Transportation Commission Measure BB Funds; 3) a compliance audit of Alameda County Transportation Commission Measure F Fund Vehicle Registration Fee Program; 4) a compliance audit of the State of California Transportation Development Act (TDA) Fund; 5) a single audit report related to Federal Grant Expenditures; and 6) a review of the City's Annual Appropriations Limit Calculation.The reports have been reviewed by the City Council Ad-Hoc Audit Subcommittee. STAFF RECOMMENDATION:Receive the reports. FINANCIAL IMPACT:Summarized financial information is discussed in this Staff Report, and Attachment 1 provides a guide to key information found in the ACFR. The full ACFR is included as Attachment 2. All other audit reports are included as Attachments 3-9. DESCRIPTION: 42 Page 2 of 6 The City of Dublin has prepared its Annual Comprehensive Financial Report (ACFR) for the Fiscal Year (FY) ending June 30, 2021. The ACFR (Attachment 2) includes audited financial statements reviewed by Badawi and Associates, the independent auditors selected by the City Council.Ad-Hoc Audit Committee ReviewThe auditors met with the City Council Ad-Hoc Audit Committee, composed of Mayor Hernandez and Councilmember McCorriston, on December 2, 2021, 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.Based on their testing and review, the auditors granted the City a "clean opinion" (see ACFR pages 1-3), meaning that the financial statements present fairly, in all material respects, the financial position of the City.Financial OverviewAttachment 1 provides a guide to key elements contained in the ACFR. Some of the important financial results include an increase of $13.2 million in net position, 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 ACFR is a discussion of the changes in Net Assets (ACFR pages 6 on). It is important to note that the amount reported as Total Net Assets includes:1. $537.9 million (63% of total net assets) in investments in capital assets (e.g. land, infrastructure, buildings, and equipment). 2. $107.1 million (12% of total net assets) that is subject to external restrictions on how it can be used, such as development impact fee funds.3. $211.2 (25% of total net assets) in net assets that are unrestricted. 43 Page 3 of 6 TABLE 1: SUMMARY OF NET POSITIONJune 30, 2021 and 2020 Auditors’ Communication (Governance Letter) (Attachment 3)The Governance Letter includes a report on the City’s accounting and reporting procedures, as well as recommendations for process improvements. The report includes corrections needed,due to the timing in the receipt of revenues and processing of invoices, and for the treatment of the City’s Pension 115 Trust contribution, that were identified during the audit process. The corrections were made and deemed immaterial. Overall, the report does not note any issues for Fiscal Year 2020-21.Designation of Fund BalancesThe City's Fund Balance and Reserves Policy conforms to required standards enacted by the Governmental Accounting Standards Board (GASB). A listing of the FY 2020-21 year-end major fund reserves established in accordance with this policy is shown on ACFR page 13. The following table summarizes the fund balances for all City funds: 44 Page 4 of 6 TABLE 2: GOVERNMENTAL FUND BALANCE CHANGESJune 30, 2021 and 2020 As shown above, General Fund Reserves totaled $209.7 million as of June 30, 2021. $63.3 million of that is available for cash flow purposes, equating to approximately 8.8 months of budgeted operating expenditures in FY 2021-22. This exceeds the target as guided by the policy, which sets the cash flow goal at between two and four months of the next year's budget.Additional Reports Prepared by AuditorsIn addition to the audit of the financial statements, the audit engagement also included the completion of specialized reports. The six supplemental reports include:1.A compliance audit of Alameda County Transportation Commission (ACTC) Measure B Funds2.A compliance audit of the ACTC Measure BB Funds3.A compliance audit of the ACTC Vehicle Registration Fee (Measure F) Program4.A compliance audit of the Transportation Development Act Fund5.A single audit report related to Federal Grant Expenditures 6.A review of the City's Annual Appropriations Limit CalculationACTC Measure B Funds Report (Attachment 4)ACTC provides local funding via two local programs: 1) Local Street Improvements; and 2) Bicycle and Pedestrian Improvements. During FY 2020-21, the following projects were funded by Measure B: -Citywide Signal Communication Upgrade -Annual Street Resurfacing -Citywide Bicycle and Pedestrian Improvements -Iron Horse Trail BridgeThe 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, 2021, the Local Streets fund balance of $895,197 is assigned to a Capital Reserve for continued street improvement projects, and the Bike/Pedestrian fund balance of $204,844 is restricted to appropriate bike and pedestrian program improvements. 45 Page 5 of 6 ACTC Measure BB Funds Report (Attachment 5)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 30 years funded by an additional 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, 2021, the Measure BB Fund had a restricted fund balance of $367,744 for Local Streets and Roads, and $186,552 restricted for Bicycle and Pedestrian improvements. During FY 2020-21, the following projects were funded by Measure BB: -Amador Valley Blvd. – Wildwood Road Intersection Improvements -Annual Street Resurfacing -Citywide Bicycle and Pedestrian ImprovementsACTC Vehicle Registration Fee (Measure F) Report (Attachment 6)The City of Dublin uses a Special Revenue Fund to account for money 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, 2021, the ACTC VRF Fund had a balance of $218,479 in restricted funds. The FY 2020-21 Budget appropriated funds from this source to support upgrades to citywide traffic signals.TDA Report (Attachment 7)TDA grants are granted by the State and distributed through the Metropolitan Transportation Commission (MTC) which is the agency responsible for allocation of funds to eligible agencies within the greater San Francisco Bay area. The $210,000 in TDA grants allocated to the City are for bicycle and pedestrian Improvements.The Citywide Bicycle and Pedestrian Improvements project expenditures were $71,773 and $120,910 for FY 2019-20 and FY 2020-21 respectively, and the remaining of the grant, in the amount of $17,317, has been carried over to FY 2021-22.Single Audit Report for Federal Grant Expenditures (Attachment 8)The City is required to obtain a Single Audit if annual expenditures of Federal Funds exceed $750,000. In FY 2020-21 the City had $1,474,049 in expenditures of Federal Funds, comprising $716,556 in Community Development Block Grant/Entitlement Grants and $757,493 from the Coronavirus Relief Fund. The audit includes a Report on Internal Controls and Compliance, which reported no audit findings relative to the federal programs reported by the City.Appropriation Limit Schedule Report (Attachment 9)State law requires the adoption of an Appropriations 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 46 Page 6 of 6 proceeds of taxes. The Limit for Dublin is substantially more than the amount of revenue generated from taxes. The auditors reviewed the calculation used to develop the $419,772,690Limit as presented in the FY 2021-22 Budget, and there were no exceptions noted in the findings. STRATEGIC PLAN INITIATIVE:Strategy 2: Explore New City Revenue Streams for Long Term Financial StabilityObjective D: Continue to maintain strong fiscal policies. NOTICING REQUIREMENTS/PUBLIC OUTREACH:The City Council Agenda was posted. ATTACHMENTS:1) Summary - Key Information2) ACFR Fiscal Year 2020-213) Fiscal Year 2020-21 Auditors’ Communication with Those Charged with Governance4) Fiscal Year 2020-21 Measure B Report5) Fiscal Year 2020-21 Measure BB Report6) Fiscal Year 2020-21 Measure F Report7) Fiscal Year 2020-21 Transportation Development Act Fund Report8) Fiscal Year 2020-21 Single Audit Report9) Appropriations Limit Fiscal Year 2021-22 47 Attachment 1SUMMARY - KEY INFORMATION ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2021City Council Meeting December 21, 2021 1.Includes audited financial statements reviewed by the City's audit firm,Badawi & Associates. 2.The auditors’opinion is that the City's financial statements fairly represent theCity's financial position. 3.The ACFR format will allow the City to apply for a Certificate of Achievementfromthe Government Finance Officers Association (GFOA). The goal is to provide financial information of the highest quality, in a transparent manner. 4.ORGANIZATION OF REPORT: a.Transmittal letter (pages v-xiv):provides a general overview of economic and budgetary factors that impact the City. b.Opinion (pages 1-3): issued by the Independent Auditor on the City’s financial position and compliant with accounting principles generally accepted in the United States of America. c.Management Discussion and Analysis (MD&A)(pages 5-20):provides an overview of the financial activities, with a focus on significant trends, as well as major changes associated with the City's major funds (i.e.,General Fund and Impact Fee Funds). d.Financial Statements:a significant portion of the ACFR comprises financial statements and schedules for the various funds used to account for the City's revenue and expenditures. Pages 24-26 present the Government-Wide Statement of Net Position presents financial statements similar tothoseusedby private corporations. That section is followed by financial statements for each fund. e.Statistical Section (pages 177-end):the unaudited statistical sectionofthe ACFR includes relevant historical data. 5.Fund Balances -A complete listing of fund reserves and designations for allmajor funds is shown on page 75 of the report. 6.Audit Recommendations / Disclosures -As part of the Audit Review the independent auditors can present recommendations for consideration by the City. The process allows the Auditors to disclose their observations on certain practices and policies that need improvement. The report for FY 2020-21 does 48 Attachment 1 not note any findings. This information is presented as a separate document titled "Auditors’ Communication with Those Charged with Governance". 49 ANNUAL COMPREHENSIVE FINANCIAL REPORT Fiscal Year ended June 30, 2021 City of Dublinc a l i f o r n i a Attachment #2 50 Attachment #2 51 Dublin, California Annual Comprehensive Financial Report For the year ended June 30, 2021 Prepared by: Administrative Services Department Attachment #2 52 Attachment #2 53 City of Dublin Annual Comprehensive Financial Report For the year ended June 30, 2021 Table of Contents, Continued Page i INTRODUCTORY SECTION Table of Contents ............................................................................................................................................................ i Letter of Transmittal ...................................................................................................................................................... v Principal Officers ......................................................................................................................................................... xv Organizational Chart ................................................................................................................................................. xvi GFOA Certificate of Excellence in Financial Reporting ...................................................................................... xvii FINANCIAL SECTION Independent Auditors’ Report ................................................................................................................................... 1 Management’s Discussion and Analysis .................................................................................................................. 5 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position ..................................................................................................................................... 24 Statement of Activities .......................................................................................................................................... 26 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet ...................................................................................................................................................... 30 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................. 33 Statement of Revenues, Expenditures and Changes in Fund Balances ...................................................... 34 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ................................................................................................................................... 37 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual: General Fund ................................................................................................................................................... 38 Affordable Housing Special Revenue Fund ................................................................................................ 39 American Rescue Plan Act (ARPA) Special Revenue Fund ..................................................................... 40 Attachment #2 54 City of Dublin Annual Comprehensive Financial Report For the year ended June 30, 2021 Table of Contents, Continued Page ii FINANCIAL SECTION, Continued Proprietary Fund Financial Statements: Statement of Net Position ................................................................................................................................. 42 Statement of Revenues, Expenses and Changes in Fund Net Position ...................................................... 43 Statement of Cash Flows ................................................................................................................................... 44 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position................................................................................................................ 47 Statement of Changes in Fiduciary Net Position ........................................................................................... 48 Notes to Basic Financial Statements ....................................................................................................................... 51 Required Supplementary Information (Unaudited): Defined Benefit Pension Plan Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years ........................... 95 Schedule of Contributions – Last 10 Years ........................................................................................................ 95 Other Post Employment Benefits (OPEB) City Retiree Health Plan – Schedule of Changes in Net OPEB Liability and Related Ratios during the Measurement Period – Last 10 Years ................................................................ 96 Schedule of City Retiree Health Plan Contributions – Last 10 Years ............................................................. 97 Supplementary Information: General Fund – Budget Versus Actual Schedule of Budget Versus Actual Revenue by Sources ............................................................................... 101 Schedule of Budget Versus Actual Departmental Expenditures .................................................................. 102 Budgeted Major Governmental Funds Other than General Fund and Special Revenue Funds: Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual: General Improvements Projects Capital Projects Fund .............................................................................. 106 Parks Projects Capital Projects Fund ............................................................................................................. 107 Streets Projects Capital Projects Fund ........................................................................................................... 108 Attachment #2 55 City of Dublin Annual Comprehensive Financial Report For the year ended June 30, 2021 Table of Contents, Continued Page iii FINANCIAL SECTION, Continued Public Facilities Impact Fees Capital Projects Fund .................................................................................... 109 Fire Impact Fees Capital Projects Fund ......................................................................................................... 110 Traffic Impact Fees Capital Projects Fund .................................................................................................... 111 Dublin Crossing Contribution Capital Projects Fund ................................................................................. 112 Non-Major Governmental Funds: Combining Balance Sheet ...................................................................................................................................... 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..................................... 122 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ..................... 128 Internal Service Funds: Combining Statement of Net Position ................................................................................................................. 166 Combining Statement of Revenues, Expenses and Changes in Net Position ................................................ 168 Combining Statement of Cash Flows ................................................................................................................... 170 Custodial Funds: Combining Statement of Fiduciary Net Position ............................................................................................... 175 Combining Statement of Changes in Fiduciary Net Position .......................................................................... 176 STATISTICAL SECTION (Unaudited) Net Position by Component ..................................................................................................................................... 178 Changes in Net Position ............................................................................................................................................ 180 Fund Balances of Governmental Funds .................................................................................................................. 182 Changes in Fund Balances of Governmental Funds ............................................................................................. 184 Assessed Value of Taxable Property ....................................................................................................................... 186 Direct and Overlapping Property Tax Rates .......................................................................................................... 188 Principal Property Taxpayers .................................................................................................................................. 190 Property Tax Levies and Collections ...................................................................................................................... 191 Direct and Overlapping Debt ................................................................................................................................... 192 Attachment #2 56 City of Dublin Annual Comprehensive Financial Report For the year ended June 30, 2021 Table of Contents, Continued Page iv STATISTICAL SECTION (Unaudited), Continued Legal Debt Margin Information ............................................................................................................................... 194 Demographic and Economic Statistics .................................................................................................................... 196 Property Value, Construction, and Bank Deposits ............................................................................................... 197 Principal Employers .................................................................................................................................................. 198 Full-Time Equivalent City and Contract Government Employees by Function............................................... 202 Operating Indicators by Function/Program .......................................................................................................... 204 Capital Asset Statistics by Function/Program ...................................................................................................... 206 Top 25 Sales Tax Producers ...................................................................................................................................... 208 Miscellaneous Statistical Data .................................................................................................................................. 209 Attachment #2 57 v December 21, 2021 Honorable Mayor and Members of the City Council: Presented with this letter is the City of Dublin (City) Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2021. The information in this 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. Management has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft or misuse and to compile sufficient reliable information fir the preparation of the City’s financial statements. Management is committed to maintain the City’s internal controls to safeguard assets; and provide reasonable assurances of proper recording of financial transactions. All disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included Badawi & Associates, a firm of licensed public accountants, has issued an unmodified (“clean”) opinion on the City of Dublin’s financial statements for the year ended June 30, 2021. The independent auditor’s report has been included in this Comprehensive Annual Financial Report. This letter of transmittal is designed to assist with an individual’s review of the City’s financial statements. Specifically, it is intended to offer the reader useful information in assessing the economic conditions impacting the City of Dublin. It also complements the separate Management’s Discussion and Analysis (MD&A) narrative section, which provides financial highlights of the City and additional analysis of trends reported as part of the financial statements. The MD&A is located immediately following the report of the independent auditors. CITY PROFILE The City of Dublin was incorporated in 1982 and is located in Alameda County, in the eastern portion of the San Francisco Bay Area. In 2011, the City was named an “All­ America City” by the National Civic League, one of the nation’s oldest and most prestigious civic organizations. And, in 2018 the City was named one of the best places to live in the United States, according to Money Magazine. The City provided for a permanent staffing level of approximately 94 full­time equivalent City employees in the FY 2020­21 budget cycle, in addition to temporary and contract personnel. The City serves an estimated population of 72,589 covering 14.91 square miles. The City’s strategic location offers opportunities for employers, retailers, and high­quality residential and transit­oriented neighborhoods. The City operates under the Council­Manager form of government. Policy­making and legislative authority are vested in the City Council, which consists of a directly elected Mayor, who serves a two­year term, and four at­large Council members each elected to a four­year term. The City Council is responsible for the City’s ordinances, operating resolutions, adoption of the annual budget, hiring the City Manager and City Attorney and confirming the appointments made by the Mayor to commissions and committees. The City Manager is responsible for implementing the policies, Attachment #2 58 vi ordinances, and directives of the City Council, overseeing the day­to­day operations of the City, and the appointments of the City’s departments. The City Attorney provides legal counsel on City business, drafts and reviews ordinances, resolutions, and contracts, and represents the City in certain litigation. The City’s biennial budget serves as the foundation for the City’s financial planning and control. The operating budget is adopted by the City Council on an annual basis prior to July 1 of each year. During mid­cycle, a review and update are prepared and presented to the City Council for the adoption of the second year’s budget. The City Council exercises budgetary control at the fund level. Formal budgetary integration is employed as a management control device during the fiscal year for the General Fund, Special Revenue Funds, Capital Projects Funds, Enterprise Funds, and Internal Service Funds. The budgeted funds are adopted on a basis consistent with GAAP in the United States. Expenditures may not legally exceed budgeted appropriations at the fund level. Management does not have the authority to increase the budget without the approval of the City Council. However, the City Manager may authorize budgetary transfers from one account to another within the same fund, appropriate funds from Committed and Assigned fund balances that have been approved by the City Council for specific purposes, and appropriate funds for asset replacement funded by the City’s Internal Services Replacement funds. Current City services include the City Manager’s Office (including General Administration, Human Resources, Communications, City Clerk/Records, Disaster Preparedness, Information Systems, and Economic Development), Administrative Services (Finance and Risk), City Attorney, Police Services, Fire Services, Community Development (Building/Planning/Housing), Parks and Community Services, and Public Works (Engineering/Maintenance). The City contracts with public agencies and private firms to provide a variety of key services including Building Inspection, Fire Services, Police Services, and Public Works maintenance. A total of 145.50 FTE contract employees were included in the City budget in FY 2020­21. 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 transit­oriented development adjacent to the City’s two Bay Area Rapid Transit (BART) stations, as well as single family homes and condominium / townhome developments. The proximity to additional job centers and colleges and universities in the Bay Area creates an attractive environment. Much of the recent growth in the community, which is now in its final phases of completion, was planned in the voter­approved 1994 Eastern Dublin Specific Plan. This vision has allowed a strong foundation and quality neighborhoods and public facilities to be built citywide. New developments in the Downtown Dublin Specific Plan area, specifically in the Transit District, have provided housing opportunities as well as potential retail space that will support a high quality of life in Dublin. In addition, the City’s aquatics complex, The Wave, offers residents and visitors a recreation destination with pools, slides, and play structures situated in the center of the community. Development over the past decade has had positive budgetary impacts, allowing the City to make significant investment in our community­serving facilities, such as parks. While careful financial stewardship has put Dublin in a strong fiscal position, it is important to ensure the stability of the community’s long­term fiscal health in order to continue to provide high­quality services, particularly as the City reaches build­out. Attachment #2 59 vii Key City activities and accomplishments during FY 2020­21 include the following: Economic Development In FY 2020­21, the City continued its Business Concierge Program and its business incentives efforts to assist with the attraction and retention of businesses. Commercial Façade Improvement Grants were awarded to three Dublin businesses. The City’s Sewer Capacity Assistance Program was utilized to help with the attraction of Mimi’s Chocolates to the Shops at Tralee, and the Fee Deferral Program assisted with the construction of Tivoli Plaza at Grafton Station. During the year, the City welcomed several new businesses to Dublin in the dining and entertainment sector such as Kanpai Sushi, LeanFeast, Vons Chicken, Nick the Greek, Sake Sushi, and Star Chaat Cuisine. New commercial businesses included Warmington Residential, Pro Cycles, Alameda County Emergency Medical Services Agency, Safari Kids, Banfield Pet Hospital, Zenith Insurance, Department of Justice, Recommended Appliances, Dream Digital, Curtis Tools For Heroes, Icecreamwala Dermatology, Eastbay Motorcars, Hallway Hospice, The Well Studio, Advanced Tile Restoration, Alameda County Sheriff’s Office, SoulSisters Spa, Riar Academy of Performing Arts, Express Employment Professionals, and V and W Corp. Also in FY 2020­21, the City Council took multiple actions including approving the Fallon Road Economic Development Zone to prioritize commercial and industrial development east of Fallon Road, approving an incentives package to assist with the attraction of job­rich and/or high­wage businesses within the Economic Development Zone’s targeted industries, approving an Option Agreement for the Regional Street Affordable Housing Agreement, approving deal terms for a Community Benefit Program Agreement for the Amador Station affordable housing project, and approving deal terms for a Purchase and Sale Agreement for the Alameda County Surplus Property Authority’s Site D­1 at the Dublin Transit Center. Covid­19 Pandemic Economic Development continued its COVID­19­related newsletters and programs, which included a COVID­19 Business Impacts webpage that provides timely and relevant updates and the Dublin Business Brief eNewsletter that addresses COVID­19­related announcements. The #DublinEats campaign continued and was revamped to feature the #TakeoutTuesday Gift Card Giveaway, which awarded randomly selected participants with a $25 gift card to a Dublin restaurant. The City also partnered with the Dublin Chamber of Commerce to rebrand the Discover Dublin shop local campaign for the holidays. In addition, the City hosted separate roundtable discussions with auto dealers and restaurant businesses to better understand the challenges and concerns facing these industries in response to the pandemic. Other actions taken by the City Council included adopting an Urgency Ordinance that established a temporary 15% cap on fees charged to Dublin restaurants by third­party food delivery services during the pandemic and approving the use of Federal CARES funding to assist with the Alameda County CARES Matching Grant Program providing 80 Dublin businesses with one­time $5,000 grants. The City Council also approved expenditures to partner with Visit Tri­Valley and the other Tri­Valley cities with a regional local recovery campaign. Lastly, to remain responsive and provide financial support to combat the lingering effects of the COVID­ 19 pandemic, the City Council approved the Recovery Boost Grant program to support the recovery Attachment #2 60 viii efforts of small businesses. The program provided approximately $763,000 in financial assistance to 50 restaurants, 42 personal care and medical offices, 20 retail and other stores, and 15 fitness and entertainment establishments. The Community Development Department facilitated new programs to assist the community with relief from the impacts of the COVID­19 pandemic. Through the COVID­19 Rent Assistance Program, the City awarded $176,277 in CARES Act funds to lower­income Dublin households experiencing an unforeseen financial crisis and an inability to pay rent due to a loss of income related to the COVID­19 pandemic. Funding for the program was provided by the CARES Act Round 3 through the Community Development Block Grant (CDBG) program. The City also established a COVID­19 Relief Temporary Use Permit (TUP) program for minor temporary land uses. The City issued 62 TUPs to local businesses. This included 20 permits for commercial and service­oriented businesses and 42 permits to restaurants for temporary outdoor seating. The Parks and Community Services (PCS) Department, in partnership with Open Heart Kitchen, offered an enhanced Senior lunch service Monday through Friday at the Dublin Senior Center, which averaged over 150 meals each day. Recreational programs and services continued to be offered but in different formats under local and state health guidelines. The City provided swim lessons, youth camps, preschool, afterschool activities, and recreational classes, some in person and others virtually. Special events were adjusted to include drive­thru type events that allowed for social distancing in compliance with health regulations. Other, non­COVID­related departmental accomplishments are discussed below. Community Development Streetscape Master Plan In November of 2020, the City Council adopted the Downtown Dublin Streetscape Plan, a planning tool that will ensure a consistent look and feel for Downtown by creating a framework for future streetscape improvements. Housing Element Update The City is currently preparing the State mandated Housing Element Update for the 2023­2031 Planning Period. In accordance with State requirements, the Housing Element Update will include policies to accommodate the City’s Regional Housing Needs Allocation (RHNA). The current draft RHNA is 3,719 units. The City has hired consultants to assist in preparing the Housing Element Update. Affordable Housing The City has undertaken a number of efforts to further the City Council’s strategic goal to facilitate the production of affordable housing. The City processed an application from BRIDGE Housing for a 300­ unit affordable housing project known as Amador Station. The project is located adjacent to the West Dublin BART Station in the Downtown. The City Council appropriated $7.1M from the City’s Affordable Housing Fund and authorized the commitment of $2.9M of the Alameda County Measure A­1 Bond Fund for this project. The City also facilitated the acquisition of a 1.3­acre site located on Regional Street in Downtown at no cost, by entering into an option agreement with Eden Housing for the creation of a senior affordable housing development on this site. Additionally, the City secured a $3.3M Local Housing Trust Fund Grant to help further facilitate this development. Eden Housing is currently processing an application with the City to construct a 113­unit affordable housing project for seniors. Attachment #2 61 ix Additionally, the City is working with the Alameda County Surplus Property Authority to acquire an approximately two­acre site near the East Dublin BART Station. The acquisition would be at low/no cost to help facilitate the creation of an affordable housing development. The City has also taken steps to facilitate the construction of accessory dwelling units (ADU). This includes adoption of relaxed development standards. As of the preparation of this report, the City has created eight different ADU plans that include detached and attached ADUs as well as garage conversions. The prototype plans include studios, one­bedroom, and two­bedroom ADUs that range in size from 200 to 973 square feet. The detached and attached ADUs will each be available in three different architectural styles: Spanish, Traditional, and Modern. Also, the ADU prototype plans have been designed with some ability for customization, such as selecting window and/or door location. An ADU Design Manual will be made available to residents to help navigate the process to create an ADU on their property. The City has taken steps to preserve existing apartments as affordable­to­middle­income households making less than 120% of the annual median income for Alameda County. This includes joining the California Community Housing Agency (CalCHA) and California Statewide Community Development Authority (CSCDA). These joint powers authorities issue bonds to acquire rental properties for the purpose of preserving affordable housing. The City and other agencies forego the property tax to help make it feasible to create this affordable housing. Three properties in Dublin were acquired through this program, including the 313­unit Aster project, the 390­unit Waterford Place Apartments, and the 324­unit Fountains at Emerald Park. Public Safety Dublin Police Services continued its crime enforcement and community policing programs during FY 2020­21, including the National Drug “Take­Back Initiative” event to collect prescription drugs, the Pink Patch Project to raise awareness about the fight against breast cancer, Tobacco Permit Compliance Operations to ensure youth are safe from businesses selling tobacco products to minors, and the Drug Abuse Resistance Education (DARE) program to Dublin students. The City of Dublin continued to incorporate new technology, like Situational Awareness cameras and additional License Plate Reader cameras, to enhance the ability to investigate crimes throughout the City. Dublin was also awarded a $50,000 grant from the California Office of Traffic Safety (OTS) for a year­long program of special enforcement and public awareness efforts to prevent traffic­related deaths and injuries. In February of 2020, Dublin Police moved into a new state­of­the­art Public Safety Complex. The facility also includes the City’s Emergency Operation Center (EOC) which has increased operational space and the latest technology to best meet the needs of the City in an emergency. In addition, the City procured 40 new handheld radios designated for the EOC which were placed on the East Bay Regional Communications System, ensuring interoperability during an emergency. Intergovernmental Relations The City continued to provide janitorial, pest management, and solid waste and recycling services on Parks Reserve Forces Training Area (Camp Parks) through the Intergovernmental Support Agreement (IGSA) for Municipal Services with U.S. Army Garrison Fort Hunter Liggett. The City also continued partnerships with Livermore Amador Valley Transit Authority (LAVTA) on Shared Autonomous Vehicles, which included the start of public service in November 2020 on City streets near the East Dublin BART Station and Dublin San Ramon Services District (DSRSD) in which the City provides weed abatement services for DSRSD. Attachment #2 62 x Environmental Sustainability The City Council adopted the “City of Dublin Climate Action Plan 2030 and Beyond” (CAP) on September 15, 2020. The CAP provides the foundation to achieve greenhouse gas reduction targets for 2030 and reach carbon neutrality by 2045. The single biggest action in the CAP, in terms of greenhouse gas (GHG) emissions reductions, is to default all community accounts to GHG­free electric power. On January 12, 2021, City Council adopted a Resolution requesting that the City’s electric power provider, East Bay Community Energy, default all residential accounts to Renewable 100, which provides 100% renewable and 100% GHG­free electricity. The City Council also adopted a Resolution declaring the City of Dublin an Idle­Free City in order to improve local air quality and reduce GHG emissions. The Resolution requires City employees and encourages residents, visitors, and other individuals to turn off their vehicles if idling will occur for 30 seconds or more. To reduce litter and maintenance associated with trash pickup, Public Works is conducting two pilot studies with new waste collection containers. Pizza box waste containers have been placed in park picnic areas and along lunch routes frequented by students, to better contain the bulky waste and to properly sort into the organics waste stream. In addition, solar compacting three­stream (organics, recycle, and landfill) waste receptacles were purchased and will be placed at high use locations at parks and along street corridors. Infrastructure and Capital Improvement Projects The following major capital improvement projects were completed during FY 2020­21: − Annual Street Resurfacing (2020 Slurry Seal) The project resurfaced 20 street segments, which included seal coating a total of approximately 700,000 square feet of asphalt and 135,000 square feet of asphalt pavement repair or resurfacing. − Imagine Playground at Dublin Sports Grounds The project replaced an existing, older playground area with a new and expanded playground designed for those of all­abilities at the Dublin Sports Grounds. − Clover Park and Sunrise Park The project constructed a two­acre neighborhood square and a 10.75­acre nature community park, which included a picnic area with shade structure, adult fitness area, playgrounds for children ages 2­5 and 5­12, informal lawn area, restroom building, and pathways for circulation. The City has also undertaken or continued work on the following major capital improvement projects in FY 2020­21: − Butterfly Knoll Park The project will design and construct a one­acre neighborhood square in the Tassajara Hills Development. − City Hall HVAC and Roof Replacement The design/build project replaces the City Hall roof as well as the heating, ventilation, and air conditioning (HVAC) system. Attachment #2 63 xi − Citywide Energy, Resiliency, and Disaster Preparedness Improvements The project provides for an Investment Grade Audit, design, and construction of various energy upgrades, efficiency measures, and resiliency improvements, including solar photovoltaic and energy storage systems, back­up generators, and advanced control systems. − Cultural Arts Center The project will design and construct a 13,000­square­foot Cultural Arts Center on the first floor of the former Dublin Police Services Building at the Civic Center. − Don Biddle Community Park The project will design and construct a 30­acre community park in the Boulevard Development. Amenities include tennis courts, basketball courts, a picnic and barbeque area, a great lawn (multi­ use lawn area), playgrounds, parent paddock, and community garden. − Dublin Boulevard Extension – Fallon Road to North Canyons Parkway The project received Federal approval of the Environmental Assessment with a Finding of No Significant Impact, and detailed design began for the future 1.5­mile extension of Dublin Boulevard through unincorporated Alameda County to North Canyons Parkway in Livermore. The project is a joint effort of the City of Dublin, the City of Livermore, and the Alameda County Transportation Commission. − Dublin Heritage Park Cemetery Improvements The project will renovate the street frontage, parking area, and courtyard adjacent to St. Raymond’s Church, and include renovated landscaping, lighting, improved pathways, and site furnishings at Dublin Heritage Park and Cemetery. − Fallon Sports Park ­ Phase 3 The project will construct a cricket field, lighted batting cages, four volleyball courts, play area, and two little league baseball fields. − Iron Horse Trail Bridge at Dublin Boulevard The project will design and construct a pedestrian and bicycle bridge for the Iron Horse Trail over Dublin Boulevard. − Tassajara Road Improvements – North Dublin Ranch Drive to Quarry Lane School The project will design and construct street improvements for Tassajara Road to a four­lane arterial standard with bike lanes, sidewalks, landscaped median, and stormwater treatment areas. − Tassajara Road Realignment and Widening – Fallon Road to North City Limit The project will design and construct street improvements for a realigned Tassajara Road to a four­ lane arterial standard with bike lanes, sidewalks, landscaped median, and stormwater treatment areas. This project is a joint effort with Contra Costa County. Awards and Honors In FY 2020­21, the City and its staff received numerous awards and honors for accomplishments in areas of community services and improvements. These include the following: x Dream Designs 2020 – Leisure Pool/Family Aquatics Center, the Wave­Aquatics International x Projects of the Year – Best Structure (More than $5 million but less than $25 million), Public Safety Complex – American Public Works Association Attachment #2 64 xii x Projects of the Year – Best Structure (More than $5 million but less than $25 million), Public Safety Complex – Northern California American Public Works Association x Projects of the Year – Best Structure (Less than $5M), Clover Park – Northern California American Public Works Association x Laurie Sucgang, Manager of the Year – Administrative Management, from the American Public Works Association x Achievement in Pavement Maintenance ­ #1 City in the Bay Area – Metropolitan Transportation Commission FINANCIAL OUTLOOK The COVID­19 pandemic and related shelter­in­place restrictions endured for a significant portion of FY 2020­21, impacting both the national and local economies, although indicators began improving in the final quarter of the fiscal year. Locally, the City faced operational impacts particularly related to the closing of City facilities and the suspension of certain programs, but as restrictions eased, the City took steps to reintroduce classes and events in compliance with the health regulations. The overall effect of improving economic conditions resulted in local revenues exceeding budget projections. Staff is cautiously optimistic that the favorable economic trends will continue for the foreseeable future and will prepare the upcoming two­year budget with this in mind. Property Tax revenue in Fiscal Year 2020­21 increased along with a gain in net taxable assessed valuation by $1.3 billion (7.5%) over the prior year, as COVID­19 did not impact property sales as significantly as originally projected. Property Tax revenues and values have continued to increase, and there were no significant delinquencies in the fiscal year. Overall Sales Tax came in $3.6 million (17.2%) higher than Fiscal Year 2019­20. As projected in the Adopted Budget the City had expected a decline from the prior year due to uncertainty surrounding COVID­19 and the related shutdowns, but sales in the Autos and Transportation sector and the Building and Construction sector exceeded midyear projections. Year­to­date revenue in the quarter ending March 31 reflected increases over the prior year in Autos and Transportation (16%), Building and Construction (11%), Food and Drugs (5%), General Consumer Goods (5%), and the County Pool Allocation (32%). These gains were partially offset by continued decreases in Restaurants and Hotels (­ 18%), and Fuel and Transportation (­36%). Development­related revenue is the third largest City revenue stream, making up 7.4% of total General Fund revenues in FY 2020­21. Year­end development revenue came in at $7.4 million, an increase of $675,000 (10.0%) from FY 2019­20, attributed to an increase in development activities as COVID cases began to decrease and health regulations began to relax. Staff anticipates that revenue will continue to increase slightly over the near term, before declining again as large­scale projects are completed. The City maintains a Service Continuity Reserve in the General Fund to ensure that there are future funds to cover expenditures when development activity slows. While FY 2020­21 finished with a General Fund surplus of approximately $19.1 million including General Fund transfers, long­term fiscal sustainability remains at the forefront of budget discussions. Despite the continued growth in Property Tax that was occurring prior to COVID­19, declining and/or levelling of Sales Tax and Development Revenues, the rising costs of contracted services, and the potential for a prolonged recovery from the impacts of COVID­19 could result in the City facing a deficit beginning in FY 2028­29 as illustrated in the 10­Year Forecast (Figure 1). The projected deficit will guide the use of reserves and decisions made in the next operating budget cycle. Attachment #2 65 xiii Figure 1. 10­Year Forecast FINANCIAL PLANNING AND POLICIES The City Council adopted a new, two­year Strategic Plan in Fiscal Years 20­21 and 21­22. Five specific strategies were identified to establish the framework and overarching policy focus for the delivery of public services to the community; these are contained in the City’s budget document. Adjustments to programs presented by the City Manager in the budget were tied to the prioritization of elements within the Strategic Plan. The City adopts a balanced operational budget in accordance with City policies and uses a two­year 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 pay­as­you­go philosophy. The City has typically operated with little to no debt financing, though an equipment lease was initiated in FY 2012­13 to fund various energy­efficient improvements, including solar panels at City facilities. The City paid off that debt in FY 2018­19. Shortly after the close of FY 2020­21, the City Council authorized the sale and issuance of 25­year lease revenue bonds to finance the Energy Efficiency Improvements project, which includes construction of various energy upgrades, efficiency improvements, lighting upgrades, energy generation, solar photovoltaic (PV) systems, and energy storage projects at facilities, parks, street rights­of­way, and other City­owned property. Renewable, resiliency, and disaster preparedness improvements to Attachment #2 66 prepare for future PG&E Public Safety Power Shutoff events and other emergency events will be provided with back-up generators at City facilities. The next annual financial report will include information on this project and the City’s use of debt financing. The financial policies currently used for budgeting also provide for the use of Internal Service Funds to ensure resources are available to finance the replacement of public safety vehicles and apparatus, computer systems, and certain building components. The City has also proactively financed contributions to fund both pension and retiree health liabilities. This reflects the City’s practice of being prepared to address long-term needs. GFOA AWARD The Government Finance Officers Association (GFOA) has recognized the City of Dublin for its Annual Comprehensive Financial Report covering the period ending June 30, 2020. A copy of the award from this entity is included in this report. This award represents the 30th consecutive year that the City’s report was recognized by the GFOA. In order to be recognized, the City was required to produce an easily readable and efficiently organized report. The report must also meet the standard for generally accepted accounting principles and legal requirements. ACKNOWLEDGEMENTS The preparation of this report was made possible by the collaborative efforts of staff in the Administrative Services Department and other departments, as well as the City’s audit firm, Badawi & Associates. A special thanks and acknowledgement to Yuliana Tjeng, Senior Accountant, and Jay Baksa, Assistant Administrative Services Director, for their work managing the audit process. We would also like to recognize the Mayor and City Council for their guidance and support in the City’s pursuit of excellence in financial reporting. Sincerely, Linda Smith Lisa Hisatomi City Manager Director of Administrative Services xiv Attachment #2 67 xv CITY OF DUBLIN PRINCIPAL OFFICERS Fiscal Year 2020/2021 Mayor Melissa Hernandez Vice Mayor Councilmember Shawn Kumagai Sherry Hu Councilmember Councilmember Jean Josey Michael McCorriston ADMINISTRATION PERSONNEL City Manager Linda Smith Assistant City Manager Colleen Tribby City Attorney John Bakker Administrative Services Director Lisa Hisatomi City Clerk Marsha Moore Chief of Police Garrett Holmes Community Development Director Jeff Baker Economic Development Director Hazel Wetherford Fire Marshal Bonnie Terra Human Resources Director Vacant Parks & Community Services Director La Shawn Butler Public Works Director Andrew Russell Attachment #2 68 Organizational Chart Citizens of Dublin City Council City Manager Police ServicesFire Services Community Development Economic Development City Clerk Assistant City Manager Administrative Services Non- Departmental Parks and Community Services Public Works Human Resources Information Systems City Attorney xvi Attachment #2 69 xvii Attachment #2 70 This page intentionally left blank xviii Attachment #2 71 1 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, the aggregate remaining fund information, of the City of Dublin, California (City) as of and for the year ended June 30, 2021, and the respective budgetary comparisons for the General Fund, the Affordable Housing and the American Rescue Plan Act Special Revenue Funds, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof, and the respective budgetary comparison for the General Fund, the Affordable Housing and the American Rescue Plan Act Special Revenue Funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. Attachment #2 72 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 2 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, pension supplementary schedules, and OPEB supplementary schedules on pages 5-20 and 95-97 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The introductory section, other budgetary comparison schedules, combining and individual nonmajor fund financial statements, budgetary comparison schedules of nonmajor funds, and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The other budgetary comparison schedules, combining and individual nonmajor fund financial statements , and budgetary comparison schedules of nonmajor funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, other budgetary comparison schedules, combining and individual nonmajor fund financial statements, and budgetary comparison schedules of nonmajor funds are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Attachment #2 73 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Badawi & Associates, CPAs Berkeley, California December 6, 2021 Attachment #2 74 4 This page intentionally left blank Attachment #2 75 5 Management’s Discussion and Analysis (MDA) June 30, 2021 As management of the City of Dublin (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the Fiscal Year (FY) ended June 30, 2021. Please read this overview in conjunction with the accompanying letter of transmittal and the accompanying basic financial statements. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements, which comprise three components: x 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. x 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. x Notes to the Financial Statements – The notes provide additional detail that is essential to a full understanding of the information provided in the Government-wide and Fund Financial Statements. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension benefits to its employees. GOVERNMENT-WIDE FINANCIAL STATEMENTS - DESCRIPTION These statements include all assets and liabilities of the City, using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All current year’s revenues and expenses are accounted for regardless of when the cash is paid or received. These statements report the City’s net position and changes to the net position during the FY. Net position - the difference between assets and liabilities - are one way to measure the City’s financial position. Over time, increases or decreases in the net position are among indicators used to assess whether the financial condition of the City is improving or deteriorating. However, it is also important to consider other nonfinancial factors, such as: changes in the City’s property tax values, sales tax outlets, and the condition of the City’s infrastructure (i.e. parks and streets), to accurately assess the overall health of the City. The Government-wide statements present information about the City’s activities, all of which are considered governmental in nature. These include services provided for police, fire, community development, streets, and recreation. 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. Attachment #2 76 6 GOVERNMENT-WIDE FINANCIAL STATEMENTS – ANALYSIS Table 1 provides an analysis summarizing the year-to-year change in the Government-Wide net position reported for the City of Dublin. The “net position” is represented as the difference between total assets and total liabilities. As illustrated in the above table, the City’s net position increased by $13.2 million (1.6%) during FY 2020- 21. This is due to the following: x Total assets increased $14.9 million, due primarily to increases in cash and investments which is part of current assets, which was partially offset by decreases in the other items. Cash and investments in the General Fund increased by $17.0 million which mostly derived from the net revenue off the expenditures for the fiscal year. Capital assets decreased by $1.8 million due to the net impact of capital improvement projects and depreciation expense. x Total liabilities increased in FY 2020-21 with a net difference of $2.4 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 $0.7 million increase in current liabilities reflects the City’s increase in unearned revenue from the unspent grant monies offset by a decrease in accounts payable and the long-term debt payment which was paid off the previous year. The $1.6 million increase in noncurrent liabilities was due primarily to the City’s net pension liability. x The City’s $538.0 million in net investment in capital assets represents 63.0% of total reported net position. Capital asset investments include the City’s investments in land, infrastructure, buildings, and equipment. As the City uses these capital assets to provide current services to residents, the assets are not available for future spending. The change in annual capital assets reflects the addition of capital assets (including Construction in Progress) less accumulated depreciation. Attachment #2 77 7 x Restricted net positions, including a portion of restricted net positions in the General Fund, Affordable Housing Fund, Impact Fee Funds, and Grant Funds, are resources that have external restrictions on their use. In FY 2020-21, the City’s restricted net positions decreased by a net of $2.8 million, attributed to affordable housing expenses and offset by contributions to the pension trust fund. Approximately $211.2 million of the City’s total assets (an increase of $17.8 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 in the General Fund are already committed and assigned for specific purposes, in accordance with the City’s Fund Balance and Reserves Policy. Attachment #2 78 8 GOVERNMENTAL ACTIVITIES Table 2 below provides a summary of major program expense categories, program revenues used to fund specific expenses, and general City revenues available for funding all City programs. The information presented here provides detail behind the numbers shown in the Summary of Net Position (Table 1). As shown in Table 2, revenues from all sources totaled $121.3 million and expenses for all City programs totaled $108.1 million in FY 2020-21. The City’s net position increased $13.2 million. TABLE 2: SUMMARY OF CHANGES IN NET POSITION June 30, 2021 and 2020 June 30, 2021 June 30, 2020 $ Change % Change Revenues Program Revenues Charges For Services 20,455,759 19,466,324 989,435 5.1% Operating Contributions & Grants 5,545,115 4,940,586 604,529 12.2% Capital Grants & Contributions 5,674,477 9,192,691 (3,518,214) -38.3% Total Program Revenue 31,675,351 33,599,601 (1,924,250) -5.7% General Revenues Property Taxes 53,007,086 49,086,335 3,920,751 8.0% Special Assessments Taxes 1,550,479 1,523,257 27,222 1.8% Sales Taxes 26,289,165 22,506,975 3,782,190 16.8% Other Taxes 7,185,319 7,280,323 (95,004) -1.3% Investment Income, Unrestricted (975,548) 10,485,543 (11,461,091) -109.3% Intergovernmental, Unrestricted 300,618 306,425 (5,807) -1.9% Other General Revenues 2,250,111 1,969,966 280,145 14.2% Total General Revenue 89,607,230 93,158,824 (3,551,594) -3.8% Total Revenues 121,282,581 126,758,425 (5,475,844) -4.3% Expenses Governmental Activities: General Government 23,710,251 24,851,393 (1,141,142) -4.6% Police 24,681,714 22,483,378 2,198,336 9.8% Fire 15,227,074 14,122,166 1,104,908 7.8% Public works and Transportation 23,769,070 21,103,350 2,665,720 12.6% Park and Community Services 9,327,718 10,548,537 (1,220,819) -11.6% Community Development 11,384,023 5,406,572 5,977,451 110.6% Total Governmental Activites 108,099,850 98,515,396 9,584,454 9.7% Increase In Net Position 13,182,731 28,243,029 (15,060,298) -53.3% Net Position - Beginning of Year 843,139,819 814,896,790 28,243,029 3.5% Net Position - End of Year 856,322,550 843,139,819 13,182,731 1.6% Attachment #2 79 9 Revenues Total revenues decreased $5.5 million, or 4.3%, in FY 2020-21 from the prior year. The overall program revenue and general revenue actually increased but was offset by a large decrease in revenue derived from the booking of unrealized losses in investment income. Details of changes are as follows: x Capital Grants and Contributions showed a decrease of $3.5 million primarily attributed to one- time developer fee refund of $2.3 million as part of the development agreement. The City also received lower grant for the Imagine Playground project which was completed during the year. x Property Taxes increased $3.9 million, resulting from an increase to overall assessed property valuations from the number of new homes built since last fiscal year, the number of property sales, and the annual increase to taxable valuations. x Sales Taxes increased $3.8 million as the result of the steady economic recovery and businesses resuming normal activities as the COVID-19 regulations relaxed. x Investment Income decreased significantly when accounting for the unrealized loss on investments at year end. Prior year investments saw an unrealized gain of $6.4 million; this allowance declined to an unrealized loss of $3.9 million in FY 2020-21 along with slightly lower interest revenue earned, causing an overall decrease of $11.5 million. Expenses Total expenses increased $9.6 million, or 9.7%, in FY 2020-21 compared to the prior year. The following factors contributed to the increase: x Police expenses increased $2.2 million, due primarily to an increase of $1.6 million in police contract costs (primarily for personnel and benefits) with the County along with increase in the supplies and capital assets depreciation expenditures. x Fire expenses increased by $1.1 million, including a $0.6 million increase in the contract costs (primarily for personnel and benefits) with the County as well as an $0.8 million acquisition cost for fire apparatus that was placed in service during the year. x Public Works expenses increased $2.7 million, attributed primarily to increased spending on capital improvement projects including the Civic Center HVAC & Roof project and street maintenance projects. x Park and Community Services expenses decreased by $1.2 million due primarily to the lower volume of recreation programs offered during the COVID-19 pandemic limitations, which reduced seasonal staff salaries, contract services costs for recreational instructors, and operating supplies costs. The decrease in expenditures is offset by a reduction in program revenues also attributed to the pandemic. x Community Development expenses increased $6.0 million as the result of a $5.0 million contribution made to an affordable housing project based on the community benefit program agreement with the developer coupled with an increase in depreciation expenses. Attachment #2 80 10 Revenues and Expenses by Category The following chart presents the Government-Wide FY 2020-21 revenues (in thousands). Approximately 83% of the total revenue is from three sources: 1) Property taxes, 44%; 2) Sales Taxes, 22%; and 3) Charges for Services, 17%. This is relatively consistent with the prior year. Charges for Services $20,456, 17% Operating Grants and Contributions $5,545, 4% Capital Grants and Contributions $5,674, 5% Property Taxes $53,007, 44% Special Assessments $1,550, 1% Sales Tax $26,289, 22% Other Taxes $7,185, 6% Investment Income ­$976, ­1% Intergovernmental $301, 0% Other General Revenue $2,250, 2% Attachment #2 81 11 The following chart demonstrates the allocation of Government-Wide expenses in FY 2020-21 (in thousands). Of the $110.1 million in total expenses, General Government, Police Services, and Public Works are the largest program costs, making up a combined 67% of the total, followed by Fire Services and Community Development, at 14% and 10%, respectively. FUND FINANCIAL STATEMENTS These statements provide more detailed information about the City’s major funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: Governmental funds, Proprietary funds, and Fiduciary funds. Governmental funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-wide financial statements. However, unlike the Government- wide financial statements, Governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the FY. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of Governmental funds is narrower than that of the Government-wide financial statements, it is useful to compare the information presented for Governmental funds with similar information presented for governmental activities in the Government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the Governmental fund balance sheet and Governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between Governmental funds and governmental activities. General Government $23,710, 22% Police $24,682, 23% Fire Services $15,227, 14% Public Works and Transportation $23,769, 22% Parks & Community Services $9,328, 9% Community Development $11,384, 10% Attachment #2 82 12 The City maintains 72 individual Governmental funds. Information is presented separately in the Governmental fund balance sheet and in the Governmental fund statement of revenues, expenditures, and changes in fund balances for the following 10 funds: General Fund; Affordable Housing Fund; American Rescue Plan Act; three Capital Project Funds (General Improvement Projects; Parks Projects; Streets Projects); and four Impact Fee Funds (Public Facilities Impact Fees, Fire Impact Fees, Traffic Impact Fees, and Dublin Crossings Fund). These funds either qualify as, or the City requested them to be classified as, major funds due to their significance in the financing of new capital assets. Data from the other 62 Governmental funds are combined into a single aggregated presentation, labeled as Non-Major Governmental Funds. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for each of its Governmental funds. A budgetary comparison statement has been provided for each Governmental fund to demonstrate compliance with this budget. Proprietary funds: The City maintains one type of Proprietary fund, the internal service fund (ISF), which is an accounting device used to accumulate and allocate costs internally among the City’s various functions and to build up reserves for future replacement of capital assets. The City uses five ISFs to account for its fleet of vehicles, equipment, improvements to City buildings, computer systems and certain retiree costs. Because these services solely benefit the governmental function, they have been included within governmental activities in the Government-wide financial statements. Proprietary fund financial statements provide the same type of information as the Government-wide financial statements, only in more detail. All five ISF’s are combined into a single, aggregated presentation in the Proprietary fund financial statements. Individual fund data for the ISF’s is provided in the form of combining statements elsewhere in this report. Fiduciary funds: The Fiduciary fund section consists of the City’s five Agency Funds. The Community Facilities District (CFD) No. 2015-1 “Dublin Crossing” Improvement Area No. 1 and 2 is an improvement district with outstanding bonds. The City’s role is that of a trustee, or fiduciary, in collecting assessments and remitting bond payments. The City has no legal, contingent or moral obligation for the repayment of this debt and merely ensures that the assets received are used for their intended purposes. The City also provides a similar role for four Geologic Hazard Abatement Districts. California Public Resources Code section 25670 establishes that these Districts are a political subdivision of the State and not an agency or instrumentality of a local agency. The City contractually provides support to collect funds in a fiduciary capacity and may also arrange for activities funded by the Districts. These fiduciary activities are excluded from the City’s fund financial statements because these assets cannot be used to finance City operations. The activity for these funds, however, is provided for in a separate combining statement contained elsewhere in this report. Attachment #2 83 13 FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS As of June 30, 2021, the City’s governmental funds reported combined ending fund balances of $312.0 million, an increase of $20.0 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. GENERAL FUND The General Fund is the chief operating fund of the City. At the end of FY 2020-21, total fund balance was $209.8 million. The unassigned amount of $67.8 million reflects an amount calculated for the unrealized gain on investments combined with the cashflow amount for ongoing operations. The undesignated cash flow reserve was $63.3 million, representing approximately 8.8 months of budgeted FY 2021-22 expenditures. The remaining balances are committed or assigned in accordance with the policy adopted by the City Council as discussed in Note 8 to the financial statements. During FY 2020-21, General Fund revenues exceeded expenditures by $29.2 million, before transfers in/out and recognition of unrealized gains. Compared to the prior year, General Fund operating revenues came in $6.8 million higher, from $96.5 million in FY 2019-20 to $103.3 million in FY 2020-21. Total revenues, including a negative unrealized gain adjustment of $3.9 million, is $99.4 million, a decrease of $3.5 million from prior year. Operating expenditures in General Fund departments totaled $74.1 million in FY 2020-21, staying nearly $10.3 million under the final budget (not including transfers out), and coming in close to actual expenditures in the prior year. Detail analysis of the savings on the expenditures can be found on the General Fund Budgetary Highlights section below. 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 $24.5 million as of June 30, 2021, a decrease of nearly $4.6 million over the prior year, due to contribution made to an affordable housing project based on community benefit program agreement with developer. The fund balance includes an outstanding loan receivable of $14.7 million as of June 30, 2021. Attachment #2 84 14 CAPITAL IMPROVEMENTS FUNDS As previously described, the City has included seven specific capital funds in the information presented as part of the governmental funds. Three of the funds are used to capture expenditures related to active capital projects that are underway. The three funds are: General Improvement Projects, Parks Projects, and Streets Projects. Funding for the expenditures in these funds occurs via transfers in from other funds. The following Capital Impact Fee Funds are also reported: Public Facilities Fee Fund:This fund includes developer fees collected to develop parks and other public facilities. Total revenue collected in FY 2020-21 was $1.3 million (including interest earned), a decrease of $4.1 million from the prior year, which was due primarily to the refund of $1.6 million in developer fees due to developer utilization of available fee credits. The decrease was also contributed by some large one- time fee payments that were received in the prior year. This revenue is collected when developers process Final Maps, resulting in payments of parkland in-lieu fees. Due to variations in project construction and acquisition timelines, expenditure patterns will fluctuate. Expenses (excluding transfers out) in FY 2020- 21 totaled $1.4 million which was expended to pay off outstanding obligations. In addition, approximately $2.7 million was utilized to fund General Improvement and Parks Capital Project. This resulted in a net decrease in fund balance of $2.8 million. The balance is designated as restricted because there are legal restrictions on its use, and it is not available for general purposes. Fire Impact Fees: This fund accounts for fees collected from new development to pay for the capital cost associated with the provision of Fire Services. Total revenue collected in FY 2020-21 was approximately $77,000 (including interest earned), consistent with what was collected in the prior year, due to developers application of existing fire impact fee credits. In addition, collections will fluctuate with the normal variations in development activity. The balance is designated as restricted because there are legal restrictions on its use, and it is not available for general purposes. Traffic Impact Fee (TIF) Funds: These funds account for fees collected to construct major traffic improvements necessary to facilitate development. Fees are levied and collected on development in proportion to its impact on the transportation needs. Revenue collected in FY 2020-21 totaled $1.2 million (including interest earned), approximately $1.1 million less than was collected in the prior year. The balance is designated as restricted because there are legal restrictions on its use, and it is not available for general purposes. Dublin Crossing (TIF) Fund: This fund accounts for fees collected to construct major traffic improvements necessary to facilitate development of the Dublin Crossing project. Fees are levied and collected on development in proportion to its impact on the transportation needs. Revenue collected in FY 2020-21 totaled $1.8 million (including interest earned), significantly higher than was collected in the prior year due to developers paying the fees instead of utilizing credits. The balance is designated as restricted because there are legal restrictions on its use, and it is not available for general purposes. Attachment #2 85 15 NON-MAJOR FUNDS The City’s non-major funds, which are all Special Revenue Funds, are presented in the basic financial statements in the aggregate. Total fund balance increased $6.1 million in these funds. Based on the designated use of the funds they can be arranged by function as shown in Table 4 below: The full fund balances of these Special Revenue Funds are legally restricted to use under the programs indicated in the table above and are not available for general purposes. The Transportation category shows a significant increase in fund balance largely due to higher direct distribution payments received for Measure BB grants to fund transportation improvement projects. More information about these aggregated non-major funds can be found in the combining statements following the required supplementary information. June 30, 2021 and 2020 June 30, 2021 June 30, 2020 $ Change % Change Function Public Safety 860,430 789,611 70,818 9.0% Transportation 6,941,162 2,144,082 4,797,080 223.7% Environmental 1,781,358 1,692,812 88,546 5.2% Parks, Culture, Arts 4,395,485 4,085,126 310,359 7.6% Health & Welfare 760,179 444,181 315,998 71.1% Maintenance Districts 4,000,032 3,469,702 530,330 15.3% TOTAL FUND BALANCE 18,738,644 12,625,515 6,113,129 48.4% TABLE 4: ANALYSIS OF FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS, ARRANGED BY FUNCTION Attachment #2 86 16 GENERAL FUND BUDGETARY HIGHLIGHTS A summary of the budgetary comparison schedule for the General Fund is shown in Table 5 below. The complete schedule, as required, is included in the supplementary information following the notes to the financial statements. Over the course of the year, revisions were made to the City budget with adjustments that generally fall into one of the following three categories: x Adjustments to carry over operating budgets from the prior year. x Adjustments to carry over capital expenditure budgets, typically in the form of transfers out to capital improvement funds, from the prior year. x Adjustments to revenue and expenditure budgets based on current economic conditions, new revenue sources, and/or operational spending needs after the original budget was adopted. TABLE 5: SUMMARY OF GENERAL FUND ORIGINAL AND FINAL BUDGET AND ACTUAL Period Ending June 30, 2021 Actual Variance from Original Final Amount Final Budget REVENUE Taxes 74,557,437 77,707,437 84,833,429 7,125,992 Intergovernmental 250,000 250,000 300,618 50,618 Licenses and Permits 238,506 340,506 334,852 (5,654) Charges for Services 6,222,359 4,161,146 4,794,938 633,792 Use of Money & Property 2,929,966 2,406,887 (303,968) (2,710,855) Fines and Forfeitures 107,432 62,432 75,394 12,962 Development Revenue 6,951,077 7,420,567 7,391,926 (28,641) Other Revenue 1,077,242 1,804,064 1,965,494 161,430 Total Revenue 92,334,019 94,153,039 99,392,683 5,239,644 EXPENDITURE General Government 14,210,866 20,070,896 13,440,911 6,629,985 Police 24,502,520 24,793,878 23,564,495 1,229,383 Fire 14,972,071 14,972,071 14,586,112 385,959 Public Works 13,703,399 14,169,664 12,014,081 2,155,583 Park and Community Services 8,784,784 7,364,236 6,034,953 1,329,283 Community development 5,906,133 6,023,354 4,481,225 1,542,129 Total Expenditure 82,079,773 87,394,099 74,121,777 13,272,322 OTHER FINANCING SOURCES (USES) Transfer In 56,600 56,600 145,083 88,483 Transfer Out (2,231,570) (18,911,548) (6,300,714) 12,610,834 Total Other Financing Sources (Uses) (2,174,970) (18,854,948) (6,155,631) 12,699,317 NET CHANGE IN FUND BALANCE 8,079,276 (12,096,008) 19,115,275 31,211,284 Budget Amounts Attachment #2 87 17 In the General Fund total revenues exceeded the final budget by $5.2 million as of June 30, 2021, due mainly to the following factors: x Taxes: $7.1 million higher than budget. Property tax came in $2.6 million higher than budget, as the result of an increase to overall assessed property valuations. Sales tax also came in $3.7 million higher due to increased sales volume after the Shelter-in-Place Order restrictions were lifted. Other increases were realized for transfer and hotel tax which contributed to a total of $0.8 million higher than budget. •Charges for Services: $0.6 million higher than budget. Fire services came in higher than budget due to a significant increase in the number of fire service calls for the Santa Rita jail during the fiscal year. •Use of Money & Property: $2.7 million lower than budget. Use of Money and Property includes interest revenue and accounting of unrealized gains/(losses) on investments at year end. Interest revenue came in $1.1 million higher than budget, reflecting a better performance of the City’s investments of which was projected would be a lot worse and so it was budgeted low. The City recognized unrealized loss on current year investments, for a net change of $3.9 million at the end of FY 2020-21. General Fund expenditures came in $13.3 million lower than the final budget, reflecting overall savings across departments. The following is a discussion of the changes. •General Government: $6.6 million lower than budget. Half of the savings was due to how the $3 million budget for contribution to the unfunded liability pension was utilized. Of that amount, $2 million was deposited into a Section 115 Pension Trust and is not treated as an expenditure but accounted for as part of restricted assets in accordance with the Governmental Accounting Standard Board guidelines. The $1 million annual budget for extra pension funding is set aside in a General Fund reserve designated for the unfunded liability. Nearly all City contract costs including library, legal, and other professional services came in lower than the budget. •Public Works: $2.2 million lower than budget. Some of the budget savings resulted from lower contract services related to the City’s offsite and onsite engineering services, underspending of utilities expenditures, and the carry-over of workspace improvement projects from prior year. •Parks and Community Services: $1.3 million lower than budget . Budget savings resulted from significantly lower seasonal staff expenses than budgeted, lower recreational class instructor costs, and lower operating supplies costs due to the City’s suspension of recreational programs during the pandemic. •Community Development: $1.5 million lower than budget. The primary driver of fiscal year budget savings in this department was the remaining budget for specific contracted services related to development. These fluctuate with the City’s development activities and with the timelines for projects and are routinely carried over to the next budget year until the projects are closed. CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City’s investment in capital assets for its governmental activities as of June 30, 2021 amounts to $538.0 million (net of accumulated depreciation). These capital assets include land and streets right-of-way, buildings, park and roadway improvements, vehicles and other equipment, and Construction in Progress, as summarized in Table 6 below. During FY 2020-21, the City’s investment in capital assets decreased by Attachment #2 88 18 approximately $1.8 million (0.3%), due primarily to additions to infrastructure net of the accumulated depreciation. The City continued its active Capital Improvement Program with significant progress made on a variety of community assets. A comprehensive list of all CIP expenditures during FY 2020-21 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. Attachment #2 89 19 Attachment #2 90 20 DEBT In FY 2013-14, the City entered into a development agreement with Dublin Crossing Venture, LLC for the acquisition and development of a parcel of land. The City exercised its option to enter into an interest-free loan of $5.4 million with the developer to finance the land acquisition. The loan occurred in FY 2016-17 and was fully repaid in July 2021. ECONOMIC FACTORS AND NEXT YEAR’S BUDGET The City has continued to recover from the COVID-19 pandemic and related shutdowns. Overall, Property Tax revenues remained strong due to the growing median home price in Dublin. In addition, Sales Tax revenue exceeded budget projections as businesses reopened to high demand. The City also began reinstating classes and events that had been put on hold or scaled back, including reopening the City’s waterpark. As part of the upcoming budget, staff is anticipating that Property Tax growth will continue along the same lines in the short term and begin to level off thereafter. In addition, staff remains cautiously optimistic that revenues and program areas most significantly impacted by the COVID shutdowns, such as sales tax, hotel tax, development revenue, and recreational programming, continue to show recovery. While FY 2021-22 finished with a General Fund surplus, it is the long-term fiscal sustainability of the City that remains at the forefront of budget discussions. It is projected that the General Fund surplus will diminish in future years and the City will reach an operational deficit in FY 2028-29. Accordingly, in the next budget cycle the City will focus not only on continuing to provide a high level of community service and maintain top-notch facilities, but also on consideration of long-term budget balancing solutions and shoring up contingency reserves. Copies of the adopted Budget and Financial Plan are available online at www.dublin.ca.gov. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the financial position of the City for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the following address: City of Dublin, Finance Department, 100 Civic Plaza, Dublin, CA 94568. A copy of this financial report is also located at the City’s website – www.dublin.ca.gov. Attachment #2 91 BASIC FINANCIAL STATEMENTS 21 Attachment #2 92 This page intentionally left blank 22 Attachment #2 93 GOVERNMENT-WIDE FINANCIAL STATEMENTS 23 Attachment #2 94 City of Dublin Statement of Net Position Primary Government Governmental Activities ASSETS Current assets: Cash and investments (Note 3)325,983,890$ Accounts receivable 10,492,605 Accrued interest receivable 990,829 Prepaids 387,810 Total current assets 337,855,134 Noncurrent assets: Notes receivable (Note 5)15,598,828 Net OPEB asset - City of Dublin (Note 11) 4,087,651 Capital assets (non-depreciable) (Note 6): Land 182,170,145 Streets right of way 37,760,857 Construction in progress 58,805,488 Capital assets (depreciable): Infrastructures 448,086,898 Building and improvements 118,068,799 Vehicles and equipment 21,812,923 less accumulated depreciation (328,734,347) Total capital assets 537,970,763 Total noncurrent assets 557,657,242 Total assets 895,512,376 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pension (Note 10) 3,838,542 Deferred outflows of resources related to OPEB - City of Dublin (Note 11) 625,801 Total deferred outflows of resources 4,464,343 June 30, 2021 See accompanying Notes to Basic Financial Statements 24 Attachment #2 95 Primary Government Governmental Activities LIABILITIES Current liabilities: Accounts payable 12,091,700 Accrued wages and other payroll liabilities 653,466 Deposits payable 3,872,146 Contract retention payable 281,467 Other payables 87,500 Unearned revenue 5,145,468 Compensated absences - due within one year 1,037,211 Total current liabilities 23,168,958 Noncurrent liabilities: Claims payable 218,470 Compensated absences - due in more than one year 259,302 Net pension liability (Note 10)17,023,464 Total noncurrent liabilities 17,501,236 Total liabilities 40,670,194 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pension (Note 10) 1,483,448 Deferred inflows of resources related to OPEB - City of Dublin (Note 11) 1,500,527 Total deferred inflows of resources 2,983,975 NET POSITION Net investment in capital assets 537,970,764 Restricted for: Public safety 870,280 Impact fee projects 64,614,071 Highways and streets 11,718,176 Health and welfare 26,025,167 Culture and leisure 1,798,237 Pension 2,114,314 Total restricted 107,140,245 Unrestricted 211,211,541 856,322,550$ Total net position See accompanying Notes to Basic Financial Statements 25 Attachment #2 96 City of Dublin Statement of Activities For the year ended June 30, 2021 Net (Expense) Revenue and Changes in Net Position Operating Capital Charges for Grants and Grants and Governmental Functions/Programs Expenses Services Contributions Contributions Total Activities Governmental activities: General government 23,710,251$ 9,113,104$ 217,374$ -$ 9,330,478$ (14,379,773)$ Police 24,681,714 214,223 317,412 - 531,635 (24,150,079) Fire 15,227,074 2,103,228 - - 2,103,228 (13,123,846) Public works and transportation 23,769,070 2,453,787 3,293,728 5,091,408 10,838,923 (12,930,147) Park and community services 9,327,718 1,388,778 23,863 377,466 1,790,107 (7,537,611) Community development 11,384,023 5,182,639 1,692,738 205,603 7,080,980 (4,303,043) Total governmental activities 108,099,850$ 20,455,759$ 5,545,115$ 5,674,477$ 31,675,351$ (76,424,499) General Revenues: Taxes: Property taxes 53,007,086 Special assessment taxes 1,550,479 Sales tax 26,289,165 Other taxes 7,185,319 Total taxes 88,032,049 Intergovernmental, unrestricted 300,618 Miscellaneous 2,250,111 Unrestricted investment earnings (975,548) Total general revenues 89,607,230 Change in net position 13,182,731 Net position - beginning of year 843,139,819 Net position - end of year 856,322,550$ Program Revenues See accompanying Notes to Basic Financial Statements 26 Attachment #2 97 FUND FINANCIAL STATEMENTS Governmental Fund Financial Statements Proprietary Fund Financial Statements Fiduciary Fund Financial Statements 27 Attachment #2 98 This page intentionally left blank 28 Attachment #2 99 The funds described below were determined to be Major Funds by the City. Individual non-major funds may be found in the supplemental. The General Fund -is the governments primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Affordable Housing Special Revenue Fund -is used to account for in-lieu fees received from developers of properties, which can only be used for the design, development, and construction of citywide affordable housing projects and/or support of affordable housing programs. The American Rescue Plan Act Fund -is used to account for funds authorized under the Federal American Recovery Plan Act (ARPA) to cover the costs of COVID-19 response as well as for making any necessary investments in infrastructure. The General Improvements Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets, Parks, or Community Improvements Projects. The Parks Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The fund Accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve or enhance the City's parks and facilities. The Streets Projects Capital Projects Fund -is used to manage the programming of fund and activities associated with major Capital Improvements Projects. The fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's trails, highways, streets, roads, bridges, as well as street lighting and drain systems. The Public Facilities Impact Fees Capital Projects Fund - is used to account for fees received from developers of properties, which can only be used for the design, development and construction of new public facilities within the City. The Fire Impact Fees Capital Projects Fund - is used to account for impact fees received from developers of properties, which can only be used for the design, development and construction of fire capital expansion projects within the City. The Traffic Impact Fees Capital Projects Fund - is used to account for impact fees received from developers of properties, which can only be used for the design, development and construction of street and highway projects which serve as part of the City's transportation network. The Dublin Crossing Contribution Capital Projects Fund - accounts for community benefit payments specific to the Dublin Crossing Project, separate from any developer impact fees generated by the project. GOVERNMENTAL FUND FINANCIAL STATEMENTS 29 Attachment #2 100 City of Dublin Balance Sheet Governmental Funds June 30, 2021 American General General Affordable Rescue Improvement Parks Fund Housing Plan Act Projects Projects ASSETS Cash and investments 205,689,960$ 9,772,321$ 3,544,256$ 680,186$ 1,141,445$ Accounts receivable 8,811,738 ---- Accrued interest receivable 990,829 ---- Due from other funds 9,013,659 ---- Notes receivable - 14,725,227 --- Advances to other funds 141,361 ---- Prepaids 13,266 ---- Total assets 224,660,813$ 24,497,548$ 3,544,256$ 680,186$ 1,141,445$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable 9,241,332$ 1,722$ -$ 475,390$ 1,067,127$ Accrued wages and other payroll liabilities 645,931 7,535 --- Deposits payable 3,320,342 ---- Contract retention payable --- 204,796 74,318 Other payables 87,500 ---- Unearned revenue 1,601,212 - 3,544,256 -- Due to other funds ----- Advances from other funds ----- Total liabilities 14,896,317 9,257 3,544,256 680,186 1,141,445 Deferred inflows of resources: Unavailable revenue - accounts receivable ----- Total deferred inflows of resources - - - - - Fund Balances: Nonspendable 13,266 ---- Restricted 4,493,314 24,488,291 --- Committed 70,694,542 ---- Assigned 66,743,519 ---- Unassigned 67,819,855 ---- Total fund balances 209,764,496 24,488,291 - - - Total liabilities, deferred inflows of resources, and fund balances 224,660,813$ 24,497,548$ 3,544,256$ 680,186$ 1,141,445$ Special Revenue Fund Capital Project Funds See accompanying Notes to Basic Financial Statements 30 Attachment #2 101 Public Dublin Other Total Streets Facilities Fire Impact Traffic Impact Crossing Governmental Governmental Projects Impact Fees Fees Fees Contribution Funds Funds 289,504$ 30,460,804$ 197,040$ 27,633,743$ 9,075,146$ 18,387,419$ 306,871,824$ --- 181,110 - 1,631,666 10,624,514 ------990,829 ------9,013,659 -----873,601 15,598,828 ------141,361 ------13,266 289,504$ 30,460,804$ 197,040$ 27,814,853$ 9,075,146$ 20,892,686$ 343,254,281$ 289,504$ -$ 55,554$ 312,500$ -$ 574,525$ 12,017,654$ ------653,466 ----6,427545,377 3,872,146 -----2,353281,467 ------87,500 ------5,145,468 - 7,972,029 --- 1,007,372 8,979,401 - 141,361 ----141,361 289,504 8,113,390 55,554 312,500 6,427 2,129,627 31,178,463 -----24,41524,415 - - - - - 24,415 24,415 ------13,266 - 22,347,414 141,486 27,502,353 9,068,719 19,065,520 107,107,097 ------70,694,542 ------66,743,519 -----(326,876)67,492,979 - 22,347,414 141,486 27,502,353 9,068,719 18,738,644 312,051,403 289,504$ 30,460,804$ 197,040$ 27,814,853$ 9,075,146$ 20,892,686$ 343,254,281$ Capital Project Funds See accompanying Notes to Basic Financial Statements 31 Attachment #2 102 This page intentionally left blank 32 Attachment #2 103 Reconciliation of the Governmental Funds Balance Sheet Total Fund Balances - Total Governmental Funds 312,051,403$ Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows: Government- Wide Statement of Net Position Internal Service Funds Total Non-depreciable 278,736,490$ (17,974,528)$ 260,761,962 Depreciable, net 259,234,273 (23,994,956)235,239,317 Total capital assets 537,970,763$ (41,969,484)$ 496,001,279 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government- Wide Statement of Net Position.61,215,880 Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements.24,415 In the Government-Wide Financial Statements,deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year. Deferred outflows of resources related to pension 3,838,542 Deferred outflows of resources related to OPEB - City of Dublin 625,801 Deferred inflows of resources related to pension (1,483,448) Deferred inflows of resources related to OPEB - City of Dublin (1,500,527) Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. Government- Wide Statement of Net Position Internal Service Funds Total Compensated absences - due within one year (1,037,210) - (1,037,210) Claims payable (218,470) - (218,470) Compensated absences - due in more than one year (259,302) - (259,302) Net OPEB asset - City of Dublin 4,087,651 - 4,087,651 Net pension liability (17,023,464)- (17,023,464) Total long-term liabilities (14,450,795)$ -$ (14,450,795) Net Position of Governmental Activities 856,322,550$ Amounts reported for governmental activities in the Statement of Net Position were different from those reported in the Governmental Funds above because of the following: City of Dublin to the Government-Wide Statement of Net Position June 30, 2021 See accompanying Notes to Basic Financial Statements 33 Attachment #2 104 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2021 American General General Affordable Rescue Improvement Parks Fund Housing Plan Act Projects Projects REVENUES: Property taxes 53,007,086$ -$ -$ -$ -$ Sales tax 24,641,024 - - - - Other taxes 7,185,319 - - - - Intergovernmental 300,618 - - - - Licenses and permits 334,852 - - - - Charges for service 4,794,938 105,524 - - - Interest income 2,809,671 165,172 - - - Use of property 822,841 385,898 - - - Unrealized gains (losses) on investments (3,936,480) Fines and forfeitures 75,394 - - - - Development revenue 7,391,926 38,128 - - - Other revenue 1,965,494 45,000 - - - Special assessments - - - - - Total revenues 99,392,683 739,722 - - - EXPENDITURES: Current: General Government 13,440,911 26,086 - - - Police 23,564,495 - - - - Fire 14,586,112 - - - - Public works and transportation 12,014,081 - - - - Park and community services 6,034,953 - - - - Community development 4,481,225 5,346,495 - - - Capital outlay: General improvements - - - 6,614,602 - Parks - - - - 4,170,540 Streets - - - - - Debt service: Principal - - - - - Total expenditures 74,121,777 5,372,581 - 6,614,602 4,170,540 REVENUES OVER (UNDER) EXPENDITURES 25,270,906 (4,632,859) - (6,614,602) (4,170,540) OTHER FINANCING SOURCES (USES): Transfers in 145,083 - - 6,614,602 4,170,540 Transfers out (6,300,714) - - - - Total other financing sources (uses)(6,155,631) - - 6,614,602 4,170,540 Net change in fund balances 19,115,275 (4,632,859) - - - FUND BALANCES (DEFICITS): Beginning of year 190,649,221 29,121,150 - - - End of year 209,764,496$ 24,488,291$ -$ -$ -$ Special Revenue Fund Capital Project Funds See accompanying Notes to Basic Financial Statements 34 Attachment #2 105 Public Dublin Other Total Streets Facilities Fire Impact Traffic Impact Crossing Governmental Governmental Projects Impact Fees Fees Fees Contribution Funds Funds -$ -$ -$ -$ -$ -$ 53,007,086$ - - - - - - 24,641,024 - - - - - - 7,185,319 - - - - - 10,505,090 10,805,708 - - - - - - 334,852 - - - - - 7,033,558 11,934,020 - 437,321 2,446 366,642 102,742 235,744 4,119,738 - - - - - - 1,208,739 (3,936,480) - - - - - 102,083 177,477 - 815,478 74,307 826,383 1,695,670 49,497 10,891,389 - - - - - 113,783 2,124,277 - - - - - 1,550,480 1,550,480 - 1,252,799 76,753 1,193,025 1,798,412 19,590,235 124,043,629 - - 85,000 444,653 - 8,107,645 22,104,295 - - - - - 190,861 23,755,356 - - - - - 174,199 14,760,311 - - - 8,847 - 2,082,078 14,105,006 - - - - - 50,301 6,085,254 - - - - - 206,181 10,033,901 - - - - - - 6,614,602 - - - - - - 4,170,540 3,116,314 - - - - - 3,116,314 - 1,368,186 - - - - 1,368,186 3,116,314 1,368,186 85,000 453,500 - 10,811,265 106,113,765 (3,116,314) (115,387) (8,247) 739,525 1,798,412 8,778,970 17,929,864 3,116,314 - - - - - 14,046,539 - (2,708,953) - (273,542) - (2,665,841) (11,949,050) 3,116,314 (2,708,953) - (273,542) - (2,665,841) 2,097,489 - (2,824,340) (8,247) 465,983 1,798,412 6,113,129 20,027,353 - 25,171,754 149,733 27,036,370 7,270,307 12,625,515 292,024,050 -$ 22,347,414$ 141,486$ 27,502,353$ 9,068,719$ 18,738,644$ 312,051,403$ Capital Project Funds See accompanying Notes to Basic Financial Statements 35 Attachment #2 106 This page intentionally left blank 36 Attachment #2 107 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes Net Change in Fund Balances - Total Governmental Funds 20,027,353$ Governmental funds reported capital outlay as expenditures.However,in the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of Internal Service Funds.9,079,519 Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities,but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of internal service funds of $2,599,243.(11,599,876) Loss on disposal of capital assets is not recorded in the governmental funds (12,036) Accrued compensated leave payments were reported as expenditures in the governmental funds,however expense is recognized in the Government-Wide Statement of Activities based on earned leave accruals.(251,783) Debt proceeds provide current financial resources to governmental funds,but issuing debt increased long- term liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position. Long-term debt repayments 1,368,186 Claim payments are recorded as expenditures in the governmental funds,however claim expense is recognized as claims are incurred on the Government-Wide Statement of Activities (176,098) Current year employer pension and OPEB contributions are recorded as expenditures in the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government-Wide Statement of Net Position.2,123,754 Pension expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds.(2,803,206) OPEB expense is reported in the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds.(226,013) Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements.(3,026,585) Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities.(1,320,484) Change in Net Position of Governmental Activities 13,182,731$ Amounts reported for governmental activities in the Statement of Activities were different because: City of Dublin in Fund Balances to the Government-Wide Statement of Activities For the year ended June 30, 2021 See accompanying Notes to Basic Financial Statements 37 Attachment #2 108 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Property taxes 48,896,000$ 50,396,000$ 53,007,086$ 2,611,086$ Sales tax 18,985,050 20,985,050 24,641,024 3,655,974 Other taxes 6,676,387 6,326,387 7,185,319 858,932 Intergovernmental 250,000 250,000 300,618 50,618 Licenses and permits 238,506 340,506 334,852 (5,654) Charges for services 6,222,359 4,161,146 4,794,938 633,792 Investment income (loss) 1,600,000 1,600,000 2,809,671 1,209,671 Use of property 1,329,966 806,887 822,841 15,954 Unrealized gains (losses) on investments - - (3,936,480) (3,936,480) Fines and forfeitures 107,432 62,432 75,394 12,962 Development revenue 6,951,077 7,420,567 7,391,926 (28,641) Other revenues 1,077,242 1,804,064 1,965,494 161,430 Total revenues 92,334,019 94,153,039 99,392,683 5,239,644 EXPENDITURES: Current: General government 14,210,866 20,070,896 13,440,911 6,629,985 Police 24,502,520 24,793,878 23,564,495 1,229,383 Fire 14,972,071 14,972,071 14,586,112 385,959 Public works and transportation 13,703,399 14,169,664 12,014,081 2,155,583 Parks and community services 8,784,784 7,364,236 6,034,953 1,329,283 Community development 5,906,133 6,023,354 4,481,225 1,542,129 Total expenditures 82,079,773 87,394,099 74,121,777 13,272,322 REVENUES OVER (UNDER) EXPENDITURES 10,254,246 6,758,940 25,270,906 18,511,966 OTHER FINANCING SOURCES (USES): Transfers in 56,600 56,600 145,083 88,483 Transfers (out) (2,231,570) (18,911,548) (6,300,714) 12,610,834 Total other financing sources (uses)(2,174,970) (18,854,948) (6,155,631) 12,699,317 Net change in fund balance 8,079,276$ (12,096,008)$ 19,115,275 31,211,283$ FUND BALANCE: Beginning of year 190,649,221 End of year 209,764,496$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts See accompanying Notes to Basic Financial Statements 38 Attachment #2 109 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Affordable Housing Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Charges for services 79,262$ 79,262$ 105,524$ 26,262$ Interest 160,190 160,190 165,172 4,982 Use of property - - 385,898 385,898 Development revenue 110,725 110,725 38,128 (72,597) Other revenues - - 45,000 45,000 Total revenues 350,177 350,177 739,722 389,545 EXPENDITURES: Current: General government 68,000 68,000 26,086 41,914 Community development 573,841 5,633,434 5,346,495 286,939 Total expenditures 641,841 5,701,434 5,372,581 328,853 REVENUES OVER (UNDER) EXPENDITURES (291,664) (5,351,257) (4,632,859) 718,398 Net change in fund balance (291,664)$ (5,351,257)$ (4,632,859) 718,398$ FUND BALANCE: Beginning of year 29,121,150 End of year 24,488,291$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts See accompanying Notes to Basic Financial Statements 39 Attachment #2 110 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual American Rescue Plan Act (ARPA) Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Property taxes -$ -$ -$ -$ Sales tax - - - - Other taxes - - - - Intergovernmental - - - - Licenses and permits - - - - Charges for services - - - - Interest - - - - Use of property - - - - Fines and forfeitures - - - - Development revenue - - - - Other revenues - - - - Special assessments - - - - Total revenues - - - - EXPENDITURES: Current: General government - - - - Police - - - - Fire - - - - Public works and transportation - - - - Parks and community services - - - - Economic development - - - - Community development - - - - Capital outlay: General improvements - - - - Community improvements - - - - Parks and community services - - - - Streets - - - - Debt service: Principal - - - - Total expenditures - - - - REVENUES OVER (UNDER) EXPENDITURES - - - - OTHER FINANCING SOURCES (USES): Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balance -$ -$ - -$ FUND BALANCE: Beginning of year - End of year -$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts See accompanying Notes to Basic Financial Statements 40 Attachment #2 111 Proprietary fund account for City operation financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing good and services be financed primarily through user charges. PROPRIETARY FUND FINANCIAL STATEMENTS 41 Attachment #2 112 City of Dublin Statement of Net Position Proprietary Funds June 30, 2021 Governmental Activities- Internal Service Funds ASSETS Current assets: Cash and investments 19,112,066$ Accounts receivable 7,127 Prepaids and other 235,507 Total current assets 19,354,700 Noncurrent assets: Capital Assets: Land 10,774,792 Construction in progress 7,199,736 Infrastructure 745,014 Building and improvements 63,219,783 Vehicles and equipment 7,151,408 Less accumulated depreciation (47,121,249) Net capital assets 41,969,484 Total assets 61,324,184 LIABILITIES Current liabilities: Accounts payable and accruals 74,046 Due to other funds 34,258 Total current liabilities 108,304 Total liabilities 108,304 NET POSITION Net investment in capital assets 41,969,484 Unrestricted 19,246,396 Total net position 61,215,880$ See accompanying Notes to Basic Financial Statements 42 Attachment #2 113 City of Dublin Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the year ended June 30, 2021 Governmental Activities- Internal Service Funds OPERATING REVENUES: Charges for services 4,127,777$ Other revenue 887,948 Total operating revenues 5,015,725 OPERATING EXPENSES: Supplies and services 835,415 Retiree health premiums 1,077,376 Depreciation 2,591,466 Total operating expenses 4,504,257 OPERATING INCOME (LOSS)511,468 NONOPERATING REVENUES (EXPENSES): Interest income 265,537 Total nonoperating revenues (expenses)265,537 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS:777,005 Transfers in 1,000,000 Transfers (out)(3,097,489) Total transfers (2,097,489) Change in net position (1,320,484) NET POSITION: Beginning of year 62,536,364 End of year 61,215,880$ See accompanying Notes to Basic Financial Statements 43 Attachment #2 114 City of Dublin Statement of Cash Flows Proprietary Funds For the year ended June 30, 2021 Governmental Activities- Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from other funds 4,120,650$ Payments to suppliers and service providers (1,865,460) Other revenues 887,948 Net cash provided by (used in) operating activities 3,143,138 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash receipts from other funds 1,000,000 Cash disbursements to other funds (3,077,530) Cash provided by (used in) noncapital financing activities (2,077,530) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of capital assets (3,284,660) Cash used in capital and related financing activities (3,284,660) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 265,537 Cash flows investing activities 265,537 Net Cash Flows (1,953,515) CASH AND CASH EQUIVALENTS - Beginning of year 21,065,581 CASH AND CASH EQUIVALENTS - End of year 19,112,066$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss)511,468$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 2,591,466 Change in assets and liabilities Accounts receivable (7,127) Prepaids 56,924 Accounts payable and accruals (9,593) Net cash provided by (used in) operating activities 3,143,138$ See accompanying Notes to Basic Financial Statements 44 Attachment #2 115 FIDUCIARY FUND FINANCIAL STATEMENTS Custodial funds are used to account for fiduciary activities not requird to be reported in investment trust, pension trust, or private-purpose trust funds. The financial activities of these funds are excluded from the entity-wide financial statements, but are presented in separate Fiduciary Fund financial statements. 45 Attachment #2 116 This page intentionally left blank 46 Attachment #2 117 City of Dublin Statement of Fiduciary Net Position Fiduciary Fund June 30, 2021 Custodial Funds ASSETS Cash and investments 27,591,812$ Accounts receivable 30,808 Total assets 27,622,620 LIABILITIES Accounts payable 442,546 Total liabilities 442,546 NET POSITION Restricted for: Individuals, organizations, and other governments 27,180,074 Total net position 27,180,074$ See accompanying Notes to Basic Financial Statements 47 Attachment #2 118 City of Dublin Statement of Changes in Fiduciary Net Position Fiduciary Fund For the year ended June 30, 2021 Custodial Funds ADDITIONS: Special assessments 6,489,015$ Investment income 178,075 Property tax distribution 17,054 Total additions 6,684,144 DEDUCTIONS: Administration 17,334,491 Project payments 505,254 Payments of bonds principal 130,000 Interest expense 3,509,349 Total deductions 21,479,094 Change in net position (14,794,950) NET POSITION: Beginning of year - Restatements 41,975,024 Beginning of year, as restated 41,975,024 End of year 27,180,074$ See accompanying Notes to Basic Financial Statements 48 Attachment #2 119 49 NOTES TO BASIC FINANCIAL STATEMENTS Attachment #2 120 50 This page intentionally left blank Attachment #2 121 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below: A. Reporting Entity The City is a residential community with a significant regional commercial base, located in the TriValley area of Alameda County, California at the crossroads of Interstate Freeways 580 and 680. The City was incorporated as a municipal corporation on February 1, 1982. The total population estimate published by the California Department of Finance for January 1, 2021 was 64,695. This figure includes prisoners housed at the Alameda County Sheriff’s Department Santa Rita Jail and at the Federal Correctional Institute. The City of Dublin was ranked based on total population at #140 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, 2021, the City's staff comprised 100 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 145.50 contract employees provide a variety of municipal services from City facilities. As of June 30, 2021, the City had approximately 93 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. Attachment #2 122 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Presentation, Continued Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds. Separate statements for each fund category - governmental, proprietary, and fiduciary - are presented. The emphasis of fund financial statements is on major individual governmental funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities. C. Major Funds Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds. The City reported the following major governmental funds in the accompanying financial statements: The General Fund - is the government’s primary operating fund. It accounts for all financial resources of the City, except those required to be accounted for in another fund. The Affordable Housing Special Revenue Fund - is used to account for in-lieu fees received from developers of properties, which can only be used for the design, development, and construction of citywide affordable housing projects and/or support of affordable housing programs. The American Rescue Plan Act Fund – is used to account for funds authorized under the Federal American Recovery Plan Act (ARPA) to cover the costs of COVID-19 response as well as for making any necessary investments in infrastructure. The General Improvements Projects Capital Projects Fund - is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets, Parks, or Community Improvements projects. The Parks Projects Capital Projects Fund - is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's parks and facilities. Attachment #2 123 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Major Funds, Continued The Streets Projects Capital Projects Fund - is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The Fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's trails, highways, streets, roads, bridges, as well as street lighting, and storm drain systems. The Public Facilities Impact Fees Capital Projects Fund - is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of new public facilities within the City. The Fire Impact Fees Capital Projects Fund - is used to account for impact fees received from developers of properties, which can only be used for the design, development, and construction of fire capital expansion projects within the City. The Traffic Impact Fees Capital Projects Fund - is used to account for impact fees received from developers of properties, which can only be used for the design, development and construction of street and highway projects which serve as part of the City's transportation network. The Dublin Crossing Contribution Capital Projects Fund - accounts for community benefit payments specific to the Dublin Crossings Project, separate from any developer impact fees generated by the project. The City also reports the following fund types: Internal Service Funds - Account for replacement of assets and internal charges collected for the purpose of funding retirement plan side-fund obligations, post-retirement healthcare activities, and the financing and funding for the replacements of vehicle, building and equipment, various information technology projects, and the energy efficiency capital lease project. These activities are provided to City departments on a cost reimbursement basis. Fiduciary Funds - The City maintains one type of Fiduciary Funds - Custodial Funds. The financial activities of these funds are excluded from the Government-wide financial statement, but are presented in separate Fiduciary Fund financial statements. Custodial 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 a Custodial Fund, which is used to account for amounts held for debt service on the Dublin Boulevard Extension Project. 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. Attachment #2 124 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Major Funds, Continued The Fallon Village, Schaefer Ranch, Fallon Village Annex/Jordan Ranch, and Fallon Crossing Geological Hazard Abatement Districts (GHAD) are Custodial Funds. Each fiscal year, the District Engineer prepares an Engineer's Report which includes the budget for the GHADs for that year. The annual budget consists of regular site monitoring, annual inspections, contract services for annual mitigation and repairs, and administrative costs. The funds collected through special assessment are placed into a dedicated reserve fund. The reserve fund is set aside to be used to mitigate and repair large, geologic hazards, such as landsides in the respective Subdivisions. The Dublin Crossing Community Facilities District (CFD) No. 2015-1 (Dublin Crossing) Fund, which is used to account for bond issuances to finance capital facilities and infrastructure within the CFD secured by the collection of Special Taxes on real property within the CFD. CFD bonds are not debt obligations of the City. D. Basis of Accounting The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the government's business-type activities and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Those revenues susceptible to accrual at both the City-wide and Fund level are property, sales and franchise taxes, current service charges, and interest revenue. Fines and licenses and permits are not susceptible to accrual because they are not measurable until received in cash. Attachment #2 125 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Basis of Accounting, Continued Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources. Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied. Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Certain indirect costs are included in program expenses reported for individual functions and activities. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's internal service funds are charges to customers for sales and services. Operating expenses for internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. E. Cash, Cash Equivalents, and Investments The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms. In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas: • Interest Rate Risk •Credit Risk o Overall o Custodial Credit Risk o Concentrations of Credit Risk Attachment #2 126 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 56 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Cash, Cash Equivalents, and Investments, Continued In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. The City categorizes the fair value measurements of its investments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City does not have any investments that are measured using Level 3 inputs. The City participates in an investment pool managed by the State of California entitled Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and Asset- Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to the change in interest rates. Cash equivalents are considered amounts in demand deposits and short-term investments with a maturity date within three months of the date acquired by the City and are presented as “Cash and Investments” in the accompanying Basic Financial Statements. For the purpose of the statement of cash flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above. F. Property Tax Revenues Alameda County assesses properties and bills, collects, and distributes property taxes to the City. The County remits the entire amount paid and handles the collection of all delinquencies. The City receives proportionate shares of prior year collections including interest and penalties. Secured and unsecured property taxes are levied on January 1 of the preceding fiscal year. The property tax assessments are formally due on November 1 and February I, and become delinquent after December 10 and April 10, respectively. Taxes become a lien on the property effective January 1 of the preceding year. G. Use of Restricted Resources When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources as needed. Attachment #2 127 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 57 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid costs in both government-wide and fund financial statements, using the consumption method. Prepaid costs in governmental funds are equally offset with nonspendable fund balance to indicate they do not constitute resources available for appropriation. Prepaids in governmental funds are treated using the consumption method, where the prepaid expenditure is recognized in the period in which the service is provided or the item is put into use. I. Compensated Absences The City records a long-term compensated absences liability to recognize the financial effect of unused general leave and other accrued compensated leave. The liability will be paid from future resources primarily from the general fund. Compensated absences activities were as follows for the year ended June 30, 2021: J. Capital Assets Capital assets, which include buildings, machinery and equipment, and infrastructure assets (roads, bridges, curbs and gutters, streets and sidewalks, drainage systems, lighting systems, and park improvements), are reported in the Governmental Activities columns of the Government-Wide Financial Statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 for general capital assets and $100,000 for infrastructure capital assets. Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value. Capital assets are depreciated over their estimated useful lives using the straight-line method. This means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated. The purpose of depreciation is to spread the cost of capital assets over the useful life of these assets. The amount charged to depreciation expense each year represents that year's pro rata share of the cost of capital assets. Attachment #2 128 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 58 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued J. Capital Assets, Continued Depreciation of capital assets is charged as an expense against operations each year and the total amount of depreciation taken over the years, called accumulated depreciation, and is reported on the Statement of Net Position of the government-wide financial statements as a reduction in the book value of the capital assets. The City has assigned the useful lives listed below to capital assets. Infrastructure 15-75 Years Buildings and Improvements 20-38 Years Vehicles and Equipment 4-20 Years Capital assets include land, buildings, and equipment used in City operations. Infrastructure includes roads, bridges, curbs, sidewalks, drainage systems, street and traffic lights, park improvements and other improvements used by all citizens. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are recorded at acquisition value. All other capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. K. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are inputs - other than quoted prices included within level 1 - that are observable for an asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for an asset or liability. L. Pension For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Attachment #2 129 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 59 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. Other Postemployment Benefits (OPEB) For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date June 30, 2019 Measurement Date June 30, 2020 Measurement Period July 1, 2019 to June 30, 2020 N. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. O. Deferred Outflows / lnflows of Resources In addition to assets, the statement of financial position or balance sheet report is a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense /expenditure) until then. In addition to liabilities, the statement of financial position or balance sheet report is a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. P. Net Position and Fund Balance Net Position Net Position is the excess of all the City's assets and deferred outflow of resources over all its liabilities and deferred inflow of resources, regardless of fund. Net Position are divided into three captions. These captions apply only to Net Position, which is determined only for proprietary funds and at the Government-wide level, and are described below: Net Investment in Capital Assets, describes the portion of Net Position which is represented by the current net book value of the City's capital assets, and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. Attachment #2 130 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 60 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. Net Position and Fund Balance, Continued Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include developer fees received for use on capital projects and debt service requirements. Unrestricted describes the portion of Net Position which is not restricted to use. When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City’s policy is to apply restricted net position first. Fund Balances Governmental fund balances represent the net current assets of each fund. Net current assets generally represent a fund's cash and receivables, less its liabilities. The City's fund balances are classified based on spending constraints imposed on the use of resources. For programs with multiple funding sources, the City prioritizes and expends funds in the following order: Restricted, Committed, Assigned, and Unassigned. Each category in the following hierarchy is ranked according to the degree of spending constraint: Nonspendable represents balances set aside to indicate items do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and long-term interfund loans are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category. Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for a specific purpose. Nonspendable amounts subject to restrictions are included along with spendable resources. Committed fund balances have constraints imposed by resolution of the City Council which may be altered only by formal action (resolution) of the City Council to establish, modify, or rescind a fund balance commitment. The City Council commits fund balance through the adoption of a resolution prior to the end of the fiscal year. Once adopted, the limitation imposed by the resolution remains in place until similar action is taken to remove or revise the limitation. Only the highest level action (a resolution) can be considered a commitment for fund balance classification purposes. Assigned fund balances are amounts constrained by the City's intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. This category includes nonspendable when it is the City's intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed. Through a council resolution, the City Council has designated the City Manager to determine the amount of assigned Fund balance. Attachment #2 131 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 61 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. Net Position and Fund Balance, Continued Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds. Hierarchy of Expenditures to Classify Fund Balance Amounts To determine the composition of ending fund balances, the City considers for expenditures made in any governmental fund, the restricted amounts will be reduced first, followed by committed amounts, assigned amounts, and then unassigned amounts. Q. New Pronouncements In 2021, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standard Board Statements: GASB Statement No. 84, Fiduciary Activities – The objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. This statement establishes criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on (1) whether a government is controlling the assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria are included to identify fiduciary component units and postemployment benefit arrangements that are fiduciary activities. The City restated the beginning balance of its custodial funds as part of the implementation of this statement. GASB Statement No. 90, Majority Equity Interests – The primary objectives of this Statement are to improve the consistency and comparability of reporting a government’s majority equity interest in a legally separate organization and to improve the relevance of financial statement information for certain component units. The requirements of this statement did not apply to the City for the current fiscal year. GASB Statement No. 93, Interbank Offering Rates (except LIBOR removal and lease modifications) – The objective of this Statement is to address those and other accounting and financial reporting implications that result from the replacement of an interbank offered rate. The requirements of this statement did not apply to the City for the current fiscal year. Attachment #2 132 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 62 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Net Pronouncements, Continued GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – an Amendment of GASB Statements no. 14 and No. 84, and a Supersession of GASB Statement No. 32 – The primary objectives of this Statement are to (1) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (2) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (3) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans. GASB Statement No. 98, The Annual Comprehensive Financial Report – The objective of this Statement is to address references in authoritative literature to the term comprehensive annual financial report. The City implemented this statement by referring to the report as an Annual Comprehensive Financial Report and using the ACFR acronym. 2. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: x Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. x The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution. x During the fiscal year, the City Manager is authorized to transfer budgeted amounts between line items, provided that the transfer is within the same fund, regardless of the specific department activity. This includes the authority to transfer from the General Fund budgeted contingency amounts that are approved by the City Council during the budget adoption. The City Manager is authorized to increase revenue and expenditure budget for various departmental functions, when the net budget impact is zero. x The City Manager is authorized to increase the appropriations for the following fiscal year in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to the year-end, but are expected to be expended in the next year consistent with the original purpose. x As part of the annual Budget adoption the City Council authorizes the carry-over unexpended capital project appropriations, for those projects where work and expenditures will continue in the subsequent year. Attachment #2 133 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 63 2. BUDGETS AND BUDGETARY ACCOUNTING, Continued x Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. x Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent with generally accepted accounting principles in the United States. No major capital projects funds incurred expenditures in excess of their budgets for the year ended June 30, 2021. 3. CASH AND INVESTMENTS The City's dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash as described under the policy section below. A. Policies California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the City's cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California law, this collateral is held in a separate investment pool by another institution in the City's name and places the City ahead of general creditors of the institution. The City pools cash from all sources and all funds, except certain specific investments within funds and cash with fiscal agents, so that it can be invested at the maximum yield, consistent with safety and liquidity, while individual funds can make expenditures at any time. The City and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called security instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Individual investments are generally made by the City's fiscal agents as required under its debt issues. In order to maximize security, the City employs the Trust Department of a bank as the custodian of all City managed investments, regardless of their form. The City's investments are carried at fair value, as required by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year. Attachment #2 134 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 64 3. CASH AND INVESTMENTS, Continued 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. Cash and investments as of June 30, 2021 consisted of the following: 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. Attachment #2 135 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 65 3. CASH AND INVESTMENTS, Continued D. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity or earliest call date: The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF as of June 30, 2021, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following: Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options. Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2021, the City had $50,327,852 invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3.37% in the previous year. The LAIF fair value factor of 1.00008297 was used to calculate the fair value of the investments in LAIF. Attachment #2 136 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 66 3. CASH AND INVESTMENTS, Continued D. Interest Rate Risk, Continued The City is a participant in the California Asset Management Program (CAMP). CAMP is an investment pool offered by the California Asset Management Trust (the Trust). The Trust is a joint powers authority and public agency created by the Declaration of Trust and established under the provisions of the California Joint Exercise of Powers Act (California Government Code Sections 6500 et seq., or the "Act") for the purpose of exercising the common power of its Participants to invest certain proceeds of debt issues and surplus funds. The Pool's investments are limited to investments permitted by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code. The City reports its investments in CAMP at the fair value amounts provided by CAMP, which is the same as the value of the pool share. The fair value approximated is the City's cost. As of June 30, 2021, these investments have an average maturity of 52 days. The City's investments include Asset-Backed Securities in the amount of $9,835,052 that are highly sensitive to interest rate fluctuations to a greater degree than already indicated above E. Fair Value Hierarchy The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2021: Level 2 Total Investments By Fair Value Level: Asset-Backed Securities 9,835,052$ 9,835,052$ U.S. Treasury Notes 71,745,729 71,745,729 Supranationals 19,043,767 19,043,767 Medium-Term Notes 54,161,172 54,161,172 U.S. Government Agency Securities 75,581,659 75,581,659 Negotiable Certificates of Deposit 2,499,825 2,499,825 Total 232,867,204$ 232,867,204 Investments Exempt From Disclosure: Local Agency Investment Fund 50,327,852 California Asset Management Program 47,323,490 Money Market Funds 756,163 Total 331,274,709$ Attachment #2 137 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 67 3. CASH AND INVESTMENTS, Continued E. Fair Value Hierarchy, Continued U.S. Government agency securities, medium term notes, asset-backed securities, and commercial, classified in Level 2 of the fair value hierarchy, are valued using matrix pricing techniques maintained by various pricing vendors. Matrix pricing is used to value securities based on the securities' relationship to benchmark quoted prices. The California Local Agency Investment Fund (LAIF), California Asset Management Program and money market funds are classified as exempt in the fair value hierarchy. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by our custodian bank. F. Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The actual ratings as of June 30, 2021 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, 2021. G. Concentration of Credit Risk Included in the table at Note F above are the following significant investments in any one issuer other than U.S. Treasury securities, mutual funds, and external investment pools. Attachment #2 138 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 68 4. INTERFUND TRANSACTIONS A. Transfers between Funds Transfers between funds during the year ended June 30, 2021 were as follows: Significant transfers noted above made to major capital project funds were to fund on-going capital projects including Civic Center HVAC and roof replacement, financial system replacement, Cultural Arts Center, sports park and playgrounds, signal communication upgrades, street resurfacing, and road improvements. B. Current Interfund Balances Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. Significant balances in the capital project funds are a result of initiation of capital projects expected to be funded by future fees. No formal repayment schedules have been adopted for these temporary loans. As of June 30, 2021, the following funds have balances due to the General Fund: Attachment #2 139 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 69 5. NOTES RECEIVABLE The following table summarizes the notes receivable outstanding as of June 30, 2021: 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, 2021 was $851,543. As of June 30, 2021, there were no loans in default. Attachment #2 140 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 70 5. NOTES RECEIVABLE, Continued Details of the Revolving Home Loans as of June 30, 2021 were as follows: REPAYMENT OF LOAN ORIGINAL ACCRUED INTEREST AND LOAN LOAN # DATE LOAN AMOUNT INTEREST PRINCIPAL BALANCE #07-09 9/21/2007 26,036$ 11,892$ (37,928)$ -$ #07-12 10/8/2007 33,051 15,774 (48,825) - #07-14 10/2/2007 19,610 9,437 - 29,047 #07-04 10/31/2007 50,000 23,921 - 73,921 #07-15 12/4/2007 24,536 11,659 - 36,195 #07-16 12/28/2007 8,000 3,783 - 11,783 #07-18 2/29/2008 24,170 11,281 - 35,451 #08-05 2/3/2009 22,619 9,552 (32,171) - #08-06 2/11/2009 55,404 23,493 (78,897) - #08-07 4/10/2009 27,425 11,735 - 39,160 #08-08 6/30/2009 39,576 16,627 - 56,203 #09-02 9/29/2009 36,595 15,056 - 51,651 #10-02 1/26/2011 40,000 45,058 (85,058) - #10-03 5/6/2011 26,700 9,490 - 36,190 #11-03 11/22/2011 30,839 10,124 (40,963) - #11-01 12/9/2011 26,025 8,723 - 34,748 #11-05 1/13/2012 29,999 9,937 - 39,936 #11-08 1/31/2012 35,249 11,615 - 46,864 #11-10 4/3/2012 38,586 12,485 - 51,071 #12-01 10/30/2012 29,999 9,103 - 39,102 #12-02 1/31/2013 40,000 11,334 (51,334) - #12-04 4/12/2013 36,749 10,573 - 47,322 #12-05 4/26/2013 35,249 10,094 - 45,343 #12-07 5/15/2013 35,249 9,998 (45,247) - #12-06 6/12/2013 31,499 8,879 - 40,378 #13-01 7/31/2013 40,000 10,283 (50,283) - #13-03 10/2/2013 40,000 10,755 (50,755) - #13-04 12/9/2013 40,000 10,584 - 50,584 #17-01 5/25/2018 40,000 4,342 - 44,342 #19-02 11/22/2019 40,000 2,252 - 42,252 Totals 1,003,165$ 369,839$ (521,461)$ 851,543$ Attachment #2 141 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 71 5. NOTES RECEIVABLE, Continued Eden Senior Affordable Housing Loan - (Wicklow Square) - On September 23, 2002, the City selected Eden Housing, Inc. as the developer for the affordable senior housing at the site of the former library located at 7606 Amador Valley Boulevard. This site also houses a senior center that the City constructed during fiscal year 2003-2004. On February 1, 2004, the City entered into an agreement and provided a loan in the amount of $2,248,248 to the Dublin Senior Limited Partnership to support the senior housing project. The interest on the outstanding principal balance of the loan is accrued at the rate of 3% simple interest per annum. The entire outstanding principal balance of the loan, together with the interest accrued, shall be payable in full on February 8, 2059, the 55th anniversary of the Initial Disbursement Date of February 18, 2004. Repayments commenced on June 1, 2006, and on the first day of each June, 60% of the Surplus Cash generated by the project during the previous calendar year are remitted to reduce the outstanding indebtedness. Any payment not paid when due shall bear interest at a rate equal to 10% annum from the due date until it is paid in full. As of June 30, 2021, the outstanding loan amount was $2,954,029. SBA Microloan Program – The City of Dublin’s Small Business Emergency Microloan Program was established by the Dublin City Council with the intention to assist in retaining local small businesses (primarily restaurants and retailers) that are experiencing severe negative impacts due to the COVID-19 pandemic. The Program provides zero-interest, unsecured, short-term loans of up to $10,000 to eligible independently or locally owned businesses with priority for restaurants and retail businesses. Loan funds must be used to cover payroll, rent, operating expenses or working capital. Loan repayment is deferred for 36 months after loan approval. The loan may be up to 100% forgiven based on either longevity of the business operating in Dublin or sales tax generation by the business. Arroyo Vista Predevelopment/Construction Loan - Family and Senior Projects - (Emerald Vista) – On June 1, 2011, the City entered into an agreement to provide a loan to Eden Dougherty, L.P., a California nonprofit public benefit corporation, with a not-to-exceed $7,600,000 principal amount in accordance to the Arroyo Vista Disposition and Development Agreement dated July 25, 2007 concerning the redevelopment of the real property located at 6700 Dougherty Road in the City of Dublin. The City agreed to provide a loan to Eden to assist in financing the development of the Family Project and Senior Project. The City determined that the development of the project is in the interests of health, safety and welfare of the residents of the City, and that the City financing is necessary to make the project affordable to low and very low income households for a term of not less than fifty-five years. The note will not bear interest until the earlier of (i) the date that the project's construction financing is either converted to a permanent loan or repaid in full, or (ii) twelve months following the date of issuance of the final certificate of occupancy or equivalent for the project; thereafter, the outstanding principal balance of the loan shall bear interest at a rate equal to three percent simple annual interest. Annual payments shall be due and payable on a residual receipts basis in accordance with the formula set forth in the note. The entire outstanding principal balance and accrued interest shall be paid in full on the earlier of (i) the fifty fifth anniversary of the date of issuance of the final certificate of occupancy or (ii) the fifty-seventh anniversary of the loan origination date. The City has the right to accelerate maturity date and declare all sums immediately due and payable to the City upon the occurrence of an event of developer default, including developer's failure to commence or complete construction of the project within times period specified in the note. As of June 30, 2021, the outstanding loan amounts for the Family Project and the Senior Project were $2,408,500 and $1,288,955, respectively. Attachment #2 142 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 72 5. NOTES RECEIVABLE, Continued Veterans Family Apartment Development Loan – On October 1, 2015, the City entered into an agreement to provide a loan to Dublin Family, L.P., a California limited partnership. The City entered into an agreement and provided a loan in the amount of $6,400,000 to the Dublin Family L.P. to build on the property a 66-unit affordable multifamily rental housing project consisting of 65 affordable rental housing units primarily for very low and low income veterans and their families, one resident manager's unit, and other related improvements. The only payment to be received is the accrued interest. The principal is not due until the maturity date. The entire outstanding principal balance of the loan, together with the interest accrued, shall be payable in full on June 1, 2070. The City has the right to accelerate maturity date and declare all sums immediately due and payable to the City upon the occurrence of an event of developer default, including developer's failure to commence or complete construction of the project within times period specified in the note. As of June 30, 2021, the outstanding loan amount was $7,222,200. 6. CAPITAL ASSETS A. Current Year Activities Capital asset activities during the year ended June 30, 2021 were as follows: Balance Reclasses/ Balance July 1, 2020 Additions Retirements Transfers June 30, 2021 Non-depreciable assets: Land 182,170,145$ -$ -$ -$ 182,170,145$ Streets right of way 35,908,389 - - 1,852,468 37,760,857 Construction in progress 80,622,398 11,980,812 - (33,797,722) 58,805,488 Total non-depreciable assets 298,700,932 11,980,812 - (31,945,254) 278,736,490 Depreciable assets: Infrastructure 416,141,645 - - 31,945,253 448,086,898 Buildings and improvements 118,015,443 53,356 - - 118,068,799 Vehicles and equipment 22,102,587 313,749 (614,235) 10,822 21,812,923 Total depreciable assets 556,259,675 367,105 (614,235) 31,956,075 587,968,620 Less accumulated depreciation: Infrastructure (255,766,941) (8,596,766) - 74,520 (264,289,187) Buildings and improvements (50,005,732) (3,906,202) - (12,150) (53,924,084) Vehicles and equipment (9,377,971) (1,679,947) 614,235 (97) (10,443,780) Right of way - (19,324) - (57,972) (77,296) Total accumulated depreciation (315,150,644) (14,202,239) 614,235 4,301 (328,734,347) Total depreciable assets, net 241,109,031 (13,835,134) - 31,960,376 259,234,273 Total capital assets 539,809,963$ (1,854,322)$ -$ 15,122$ 537,970,763$ Attachment #2 143 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 73 6. CAPITAL ASSETS, Continued B. Project Commitments As of June 30, 2021, the City had outstanding commitments with contractors for the following projects: C. Capital Asset Contributions Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. GASB Statement 34 requires that these contributions be accounted for as revenues at the time the capital assets are contributed. D. Depreciation Allocation Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or programs are as follows: Attachment #2 144 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 74 7. LONG TERM DEBT A. Current Year Transactions and Balances Long-term debt transactions and balances during the year ended June 30, 2021 were as follows: B. Dublin Crossing Loan Payable As discussed in Note 14, the City entered into several agreements with various developers and merchant builders who are developing numerous residential and commercial projects throughout the City. On November 19th 2013, the City entered into one of these agreements with Dublin Crossing Venture LLC (Developer), for the acquisition and development of a parcel of land. The City acquired the land and subsequently conveyed it to the Developer on March 23, 2017. Included in the development plan are residential units, commercial uses, a community park, a neighborhood park, privately owned open space, and an elementary school site. The City exercised its option to enter into an interest-free loan of $5,450,042 with the Developer to finance the land acquisition. The repayment of the loan is due in four annual installments. Installment payments commenced in July 2018 and was fully repaid in July 2021. Attachment #2 145 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 75 8. FUND BALANCES Detailed classifications of the City's Fund Balances, as of June 30, 2021, are stated below: American General Public Dublin Other General Affordable Rescue Improvement Parks Streets Facilities Fire Impact Traffic Impact Crossing Governmental Fund Housing Plan Act Projects Projects Projects Impact Fees Fees Fees Contribution Funds Total Nonspendable: Prepaids 13,266$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 13,266$ Subtotal Non-Spendable Fund Balance 13,266 - - - - - - - - - - 13,266 Restricted for: Cemetery Endowment 60,000 - - - - - - - - - - 60,000 Public Safety Programs - - - - - - - - - - 870,280 870,280 Street Maintenance and Construction - - - - - - - - - - 11,685,028 11,685,028 Health and Welfare Programs - - - - - - - - - - 1,536,876 1,536,876 Heritage Park Maintenance 750,000 - - - - - - - - - - 750,000 Culture and Leisure - - - - - - - - - - 969,237 969,237 Impact Fee Capital Projects - - - - - - 22,347,414 141,486 27,502,353 - - 49,991,253 Capital Improvement Projects - - - - - - - - - 9,068,719 4,004,099 13,072,818 Developer Contribution - Heritage Park 19,000 - - - - - - - - - - 19,000 Developer Contribution - Nature Park 60,000 - - - - - - - - - - 60,000 Downtown Community Benefit Program 1,490,000 - - - - - - - - - - 1,490,000 Pension 2,114,314 2,114,314 Housing - 24,488,291 - - - - - - - - - 24,488,291 Subtotal Restricted Fund Balance 4,493,314 24,488,291 - - - - 22,347,414 141,486 27,502,353 9,068,719 19,065,520 107,107,097 Committed to: Economic Stability 8,000,000 - - - - - - - - - - 8,000,000 Downtown Public Improvements 13,000,000 - - - - - - - - - - 13,000,000 Emergency Communications 532,113 - - - - - - - - - - 532,113 Fire Services OPEB 5,671,094 - - - - - - - - - - 5,671,094 Innovations and New Opportunities 1,031,719 - - - - - - - - - - 1,031,719 Maintenance Facility 55,442 - - - - - - - - - - 55,442 Don Biddle Community Park 2,100,000 - - - - - - - - - - 2,100,000 Historic Park Cemetery Expansion 1,173,549 - - - - - - - - - - 1,173,549 One Time Initiatives 5,469,970 - - - - - - - - - - 5,469,970 Contribution to Public Facility Fee 6,000,000 - - - - - - - - - - 6,000,000 Fallon Sports Park 3,110,500 - - - - - - - - - - 3,110,500 Utility Undergrounding 3,500,000 - - - - - - - - - - 3,500,000 Lease Revenue Bonds Payment 4,000,000 - - - - - - - - - - 4,000,000 Economic Development 53,319 - - - - - - - - - - 53,319 Public Safety 2,600,000 - - - - - - - - - - 2,600,000 Cultural Arts Center 4,539,197 - - - - - - - - - - 4,539,197 Advance to Public Facility Fee 9,857,639 - - - - - - - - - - 9,857,639 Subtotal Committed Fund Balance 70,694,542 - - - - - - - - - - 70,694,542 Assigned to: Non-street CIP 2,366,100 - - - - - - - - - - 2,366,100 Employees Accrued Leave 1,296,513 - - - - - - - - - - 1,296,513 Operating Carryovers 1,882,745 - - - - - - - - - - 1,882,745 ClP Carryovers 2,735,111 - - - - - - - - - - 2,735,111 Catastrophic Loss and Recovery 17,710,320 - - - - - - - - - - 17,710,320 Service Continuity Obligations 3,150,000 - - - - - - - - - - 3,150,000 Pension and Post Employment Benefits 16,000,000 - - - - - - - - - - 16,000,000 Fiscally Responsible Adjustment 325,000 - - - - - - - - - - 325,000 Internal Service Fund 1,500,000 - - - - - - - - - - 1,500,000 Municipal Regional Permit 2,212,931 - - - - - - - - - - 2,212,931 HVAC Replacement 3,337,009 - - - - - - - - - - 3,337,009 Relocate Parks 500,000 - - - - - - - - - - 500,000 Pension Rate Stabilization - - - - - - - - - - - Parks and Street Contingency Maintenance 201,270 - - - - - - - - - - 201,270 Commercial Facade Improvement Grant 374,157 - - - - - - - - - - 374,157 Police Service Building 152,363 - - - - - - - - - - 152,363 Village Parkway Pavement 10,000,000 - - - - - - - - - - 10,000,000 Climate Action Plan 3,000,000 - - - - - - - - - - 3,000,000 Subtotal Assigned Fund Balance 66,743,519 - - - - - - - - - - 66,743,519 Unassigned Fund Balance: Fund Balance Deficits - - - - - - - - - - (326,876) (326,876) Unrealized Gain on Investments/(Loss)4,516,760 - - - - - - - - - - 4,516,760 Cash Flow Per City Policy 63,303,095 - - - - - - - - - - 63,303,095 Subtotal Unassigned Fund Balance 67,819,855 - - - - - - - - - (326,876) 67,492,979 Total Fund Balance (Deficit)209,764,496$ 24,488,291$ -$ -$ -$ -$ 22,347,414$ 141,486$ 27,502,353$ 9,068,719$ 18,738,644$ 312,051,403$ Major Funds Attachment #2 146 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 76 8. FUND BALANCES, Continued A. Minimum Fund Balance Policies The City's Reserve Policy requires the City to maintain an Unrestricted General Funds, for cash flow purposes, of minimum equal to two months of budgeted operating expenditures with a goal to achieve a maximum of four months. As of June 30, 2021 the cash flow reserves, which are part of the Unassigned Fund Balance, were above the minimum at approximately 9 months, which were over the desired target of 4 months. Funds may be appropriated as to Undesignated Capital Contribution by designation from City Council only for high priority one time capital expenditures provided the minimum fund balance would remain. B. Fund Balance Deficits The funds listed in the table below had fund balance deficits as of June 30, 2021. These deficits are expected to be eliminated by future revenues. 9. DEFERRED COMPENSATION PLAN City employees may defer a portion of their compensation under a City sponsored deferred compensation plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them; distributions may be made only at termination of employment, retirement, death, or in an emergency as defined by the Plan. In accordance with GASB Statement No. 32, the funds have been placed in a trust administered by ICMA Retirement Corporation and are not available to the City's general creditors. Accordingly, the City does not report the assets in the financial statements. 10.PENSION PLAN A. General Information about the CalPERS Pension Plan Plan Description and Summary of Balances by Plan - All qualified permanent and probationary employees are eligible to participate in the City's Miscellaneous (all other) Employee Pension Rate Plan. The City's Miscellaneous Rate Plan is part of the public agency cost-sharing multiple-employer defined benefit pension plan (PERF C), which is administered by the California Public Employees' Retirement System (CalPERS). PERF C consists of a miscellaneous pool and a safety pool (also referred to as "risk pools"), which comprised individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The City sponsors two rate plans (miscellaneous). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Attachment #2 147 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 77 10. PENSION PLAN, Continued A. General Information about the CalPERS Pension Plan, Continued Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. The Pension Reform Act of 2013 (PEPRA), Assembly Bill 340, is applicable to employees new to CalPERS and hired after December 31, 2012. The Plan's provisions and benefits in effect as of June 30, 2021, are summarized as follows: Contributions - Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2020, the City's contributions to the Plan were $1,522,330. B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2021, the City reported $17,023,464 in net pension liabilities for its proportionate share of the net pension liability of the Plan. The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. Attachment #2 148 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 78 10. PENSION PLAN, Continued B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued The City's proportionate share of the net pension liability for the Plan as of the measurement dates June 30, 2019 and 2020 was as follows: For the year ended June 30, 2021, the City recognized net pension expense of $2,803,206 for the Miscellaneous Plan on the Statement of Activities. As of June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Attachment #2 149 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 79 10. PENSION PLAN, Continued B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued The $1,712,167 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, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the City's proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate: Attachment #2 150 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 80 10. PENSION PLAN, Continued B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued Actuarial Assumptions - For the measurement period ended June 30, 2020, the total pension liabilities were determined by rolling forward the June 30, 2019 total pension liability. The June 30, 2019 total pension liabilities were based on the following actuarial methods and assumptions: All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of a December 2017 actuarial experience study for the period 1997 to 2015. Further details of the Experience Study can found on the CalPERS website. Discount Rate - The discount rate used to measure the total pension liability was 7.15% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long- term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds' asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. Attachment #2 151 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 81 10. PENSION PLAN, Continued B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses. Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports. 11. OTHER POST EMPLOYMENT BENEFITS A. City of Dublin Retiree Health Plan Plan Description - City of Dublin (City) Retiree Health Plan is a single-employer defined benefit healthcare plan administered by the California Public Employees Retirement System (CalPERS). The plan provides medical insurance benefits to eligible retirees and their eligible dependents in accordance with Public Employee Retirement Law (Article 2). The Public Employees Retirement System Board of Administration has the responsibility to approve health benefit plans and may contract with carriers offering health benefit plans. The Board of Administration is responsible for adopting all rules and regulations, including the scope and content of basic health plans. The California Government Code also defines certain rules for contract agencies, such as the City of Dublin, to purchase health insurance benefits. (1) (2)(3) Attachment #2 152 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 82 11. OTHER POST EMPLOYMENT BENEFITS, Continued A. City of Dublin Retiree Health Plan, Continued Contributions - There is no requirement imposed by CalPERS, to contribute any amount beyond the pay-as- you-go contributions. The cost of monthly insurance premiums may be shared between the retiree and the City. The contribution and cost sharing varies depending on: date of hire; the dependent status; and plan selected. The City contributes PEMHCA to retirees hired after January 1, 2016. A minimum employer monthly contribution requirement is established and may be amended by the CalPERS Board of Administration and applicable laws. Within the parameters of the law, individual contracting agencies, such as the City, are allowed to establish and amend the level of contributions made by the employer towards the monthly cost of the plans. Changes to the employer contribution rate towards retiree benefits are recorded in a resolution adopted by the City Council. For the measurement period 2019-20, the City contributed $1,116,396. Employees Covered Net OPEB Liability The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to the calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2019, based on the following actuarial methods and assumptions: Attachment #2 153 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 83 11. OTHER POST EMPLOYMENT BENEFITS, Continued A. City of Dublin Retiree Health Plan, Continued Net OPEB Liability, Continued The long-term expected rate of return on OPEB plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the table on the following page. Discount Rate The discount rate used to measure the total OPEB liability was 6.25 percent. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. Attachment #2 154 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 84 11. OTHER POST EMPLOYMENT BENEFITS, Continued A. City of Dublin Retiree Health Plan, Continued Changes in the Net OPEB Liability The changes in the Net OPEB liability for the OPEB Plan are as follows: Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020: Attachment #2 155 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 85 11. OTHER POST EMPLOYMENT BENEFITS, Continued A. City of Dublin Retiree Health Plan, Continued Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020: Recognition of Deferred Outflow and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss: OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $224,813. For the fiscal year ended June 30, 2021, the City reported deferred outflows of resources related to OPEB from the following sources: Attachment #2 156 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 86 11. OTHER POST EMPLOYMENT BENEFITS, Continued A. City of Dublin Retiree Health Plan, Continued OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB, Continued The $411,587 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows: B. Dougherty Regional Fire Authority Health Plan (DRFA) The City provides certain health care benefits for Dougherty Regional Fire Authority retirees as required under contract signed with PERS and the dissolution agreement of the Authority. The cost of retiree health care benefits is recognized as expenditure as premiums are paid. For the year ended June 30, 2021 those cost totaled $39,475. 12. HEALTH, GENERAL LIABILITY, AND WORKERS’ COMPENSATION COVERAGE A. Risk Pool The City participates in the PLAN JPA, a non-profit public benefit corporation established to provide liability insurance coverage, claims administration and risk management services, and legal defense to its participating members. The liability insurance coverage is provided by a combination self-insurance collectively funded by PLAN JPA and the purchase of commercial insurance for large losses. PLAN JPA provides the first $5 million of coverage as self-funded general liability and automobile liability coverage per occurrence. PLAN JPA purchases commercial excess liability insurance in two layers of $10 million and $15 million each to provide total coverage of claims up to $30 million per occurrence. The City has a deductible of $50,000 per occurrence. PLAN JPA also provides $2 million of employee bonds (theft coverage) in excess of a $10,000 deductible. Fiscal Year Ending June 30: 2022 (412,750)$ 2023 (275,151) 2024 (214,677) 2025 (217,008) 2026 (166,727) Thereafter - Attachment #2 157 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 87 12. HEALTH, GENERAL LIABILITY, AND WORKERS’ COMPENSATION COVERAGE, Continued A. Risk Pool, Continued PLAN JPA also provides property insurance coverage. This coverage also comprises self-insured layer combined with commercial insurance. The first $100,000 of losses are self-funded by PLAN JPA from premiums collected from the participants in the program. PLAN JPA purchases an insurance policy to cover losses above $100,000 per occurrence and the annual aggregate losses of the pool are insured above $225,000. The insurance provides coverage for property damage among all participants to $1 billion. The City deductible for property and vehicle losses is $5,000. For any single loss in excess of $25,000 the deductible is waived. The City's contributions to the PLAN JPA for liability coverage are based on a formula which considers the ratio of the City's payroll to the total payrolls of all entities participating in the same layer of each program, in each program year's loss history and population. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. There have been no significant reductions in any of the City's areas of insurance coverage and no settlement amounts have exceeded coverage in the past three years. Audited financial information for the PLAN JPA can be obtained from Bickmore, 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833. B. Workers’ Compensation Coverage The City participates in The Cities Group, created by a joint powers agreement (JPA) to provide workers' compensation coverage paid from the pooled contributions of its membership with no deductible to the City. Any claim in excess of $1 million is covered up to $10 million through a policy with Safety National Casualty Corp purchased by The Cities Group. The Cities Group acts as an administrator, claim adjuster and provides other risk management services as provided by State law. Each member of The Cities Group pays a premium commensurate with the level of coverage requested and shares surpluses and deficits proportionately to its participation in The Cities Group. During the year ended June 30, 2021, the City paid The Cities Group $4,805 in premium. Financial Statements may be obtained from The Cities Group, PO Box 111, Burlingame, CA 94011-0111. C. Liability for Uninsured Claims The GASB requires municipalities to record their liability for uninsured claims and reflect the current portion of this liability as expenditures in their financial statements. As discussed above, the City has coverage for such claims, but it has retained the risk for the deductible or the uninsured portion of these claims in the PLAN JPA and The Cities Group plans. GASB Statement No. 10, "Financial Reporting for Risk Financing and Related Insurance Issues" require that this amount be separately identified and recorded as a liability. The City's liability for uninsured claims, limited to general liability and workers compensation claims as discussed above, includes a provision for incurred but not reported (IBNR) losses. This amount was estimated based on claims experience. The reserve recorded, $218,470, is adequate to cover IBNR claims. Therefore no adjustment was made in fiscal year 2020-2021 as the City's exposure is for the $5,000 deductible per general liability claim. Attachment #2 158 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 88 13. JOINT POWERS AGREEMENTS The City participates in joint ventures discussed below through separate entities established under the Joint Exercise of Powers Act of the State of California. As separate legal entities, these entities exercise full powers and authorities within the scope of the related Joint Powers Agreements including the preparation of annual budgets, accountability for all funds, the power to make and execute contracts and the right to sue and be sued. Each joint venture is governed by a board consisting of representatives from member municipalities. Each board controls the operations of the respective joint venture, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on that board. Obligations and liabilities of these joint ventures are not the City's responsibility and the City does not have an equity interest in the assets of each joint venture except upon dissolution of the joint venture. A. Animal Control Services The Cities of Dublin, Pleasanton, and Livermore and the County of Alameda have entered a joint powers agreement, dated September 15, 1992, under which Alameda County constructed an animal shelter facility on County's property. The agreement provided that the County would retain ownership of the land and that each participating agencies would receive an equity interest in the facility. Certificates of Participation were issued to construct the facility. Under the agreement the entities will share in the debt service costs of the project based upon their use of the animal shelter. In fiscal year 2020-2021, the City contributed $181,340 or 10.49% toward the annual operating shelter services and $39,577 representing 3.04% of the animal field service expenditures. The City has not recorded an equity interest for the animal shelter agreement. As noted above the ongoing financial interest is limited to the statistics of live animals handled in the appropriate fiscal year. No Joint Powers Authority was established as part of this agreement therefore, separate financial statements are not issued. 14. OTHER COMMITMENTS AND CONTINGENT LIABILITIES The City participates in several Federal and State grant programs. These programs have been audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act and applicable State requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. The City is a defendant in a number of lawsuits that have arisen in the normal course of business, the outcome of which cannot be predicted with certainty. In the opinion of the City Attorney, these actions when finally adjudicated will not have a material adverse effect on the financial position of the City. Attachment #2 159 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 89 14. OTHER COMMITMENTS AND CONTINGENT LIABILITIES, Continued A. Reimbursements to the City of Pleasanton On January 23, 1996, the City adopted a fee for the purpose of reimbursing the City of Pleasanton for the costs of making improvements to the interchanges of Interstate 580 at Hacienda Drive and Tassajara Road/Santa Rita Road that benefit development in both Pleasanton and future development in Eastern Dublin. The Cities entered into an agreement on November 3, 1998, to allow for an automatic annual escalator factor in the amount of the fee assessed to developers based upon the LAIF interest rate and to repay the City of Pleasanton. The amount of the contingent liability outstanding at June 30, 2021, was $2,711,538 which is net of the $77,375 in payments made by the City to reduce this contingent liability during the year. The accounting for the amount due is not recorded as indebtedness since future payments are contingent upon the future collection of development fees assessed for reimbursement of these improvements. B. Other Development Agreements The City entered into several agreements with various developers and merchant builders who are developing numerous residential and commercial projects throughout the City. The City agreed to grant the developers' impact fee credits since the developers constructed certain improvements beyond what was needed to serve their specific projects. The value of credits does not increase for inflation nor do they accrue interest. Any unused credits may be used by the developers on other projects located within the Traffic Impact Fee area. The value of the credits as of June 30, 2021 was $100,989,559. The reduction of $8,429,211 to the credit balance was mainly due to credit used for the fiscal years which was $12,925,791. C. Alameda County Fire Department (ACFD) The City of Dublin contracts to have the Alameda County Fire Department to provide fire services. As part of the contract, the City pays for its share of ACFD's retiree health plan and retirement plan. In 2012 ACFD began working with CalPERS to create side funds within its OPEB trust to allow for member agencies to fund their share of the obligation. In preparation for this, in June 2012 the City Council authorized a contribution of $6.487 million towards the liability that was then moved to a General Fund Reserve, which was reclassified as an assigned fund balance upon the City's implementation of GASB Statement No. 54. Since then, the City continued to add funds to that fund balance assignment. After ACFD successfully implemented the OPEB trust side funds, the City was notified that as of June 30, 2021, the City’s Actuarial Accrued Liability (AAL) for benefits was $12,950,000 and the Actuarial Value of Plan Asset was $11,744,000 resulting in an Unfunded Actuarial Accrued Liability (UAAL) of $1,206,000. These amounts were based on an the most recent actuarial valuation dated June 30, 2019. At June 30, 2021, the Actuarial Value of the Plan Asset was $16,122,638. 15. DEBT WITHOUT GOVERNMENT COMMITMENT On August 31, 2017, the City issued $32,740,000 of City 2017 Improvement Area No. 1 Special Tax Bonds by and through its Community Facilities District No. 2015-1 (Dublin Crossing) Improvement Area No. 1. The Bonds are special tax obligations of the City, authorized pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being California Government Code Section 53311, et seq. The bonds were issued to construction and acquire certain public facilities and/or reimburse the payment of fees for capital improvements. Attachment #2 160 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 90 15. DEBT WITHOUT GOVERNMENT COMMITMENT, Continued On July 18, 2019 the City issued $37,745,000 of City 2019 Improvement Area No. 2 Special Tax Bonds by and through its Community Facilities District No. 2015-1 (Dublin Crossing) Improvement Area No. 2. The Bonds are special tax obligations of the City, authorized pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being California Government Code Section 53311, et seq. The bonds were issued to construction and acquire certain public facilities and/or reimburse the payment of fees for capital improvements. The Bonds are not general obligations of the City nor any political subdivision and the full faith and credit of the City is not pledged for the repayment thereof. Since these debts do not constitute an obligation of the City and the City is not obligated to make payment beyond the available bond reserves, these bonds have not been reflected in the long-term debt in the accompanying financial statements. The outstanding indebtedness on June 30, 2021 was $70,265,000. 16. TAX ABATEMENTS The City has entered into multiple sales tax reimbursement agreements for the purpose of attracting new businesses within the City through the construction and improvement of property sites. The City is expected to make annual reimbursement payments over a five (5) to ten (10) year period in which the amount of each reimbursement payment commitment is based on total sales tax received and derived using formulas in the approved agreements. For financial reporting purposes, the GASB Statement No. 77 defines a tax abatement as resulting from an agreement between a government and an individual or entity in which the government promises to forgo tax revenues and the individual or entity promises to subsequently take a specific action that contributes to economic development or otherwise benefits the government or its citizens. According to GASB Statement No. 77, the substance of these sales tax reimbursement agreements meets the definition of “tax abatements." For the fiscal year ended June 30, 2021, under these sales-tax reimbursement agreements, the City has abatements totaling $219,445. Pursuant to the Sales and Use Tax law (chapter 8 - Article 1 - section 7056), in order to protect the confidential information of sales taxes collected and abatements provided to each of the specific agencies, the City has presented the aggregate amount abated during the current fiscal year. 17. PRIOR PERIOD ADJUSTMENTS Attachment #2 161 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2021 91 Attachment #2 162 92 Attachment #2 163 93 REQUIRED SUPPLEMENTARY INFORMATION Attachment #2 164 94 Attachment #2 165 City of Dublin Required Supplementary Information For the year ended June 30, 2020 95 1. DEFINED BENEFIT PENSION PLAN A. Schedule of the City’s Proportionate Share of the Net Pension Liability – Last 10 Years* B. Schedule of Contributions – Last 10 Years* Attachment #2 166 City of Dublin Required Supplementary Information For the year ended June 30, 2020 96 2. OTHER POST EMPLOYMENT BENEFITS (OPEB) A. City Retiree Health Plan - Schedule of Changes in Net OPEB Liability and Related Ratios During the Measurement Period – Last 10 Years (1) (1)Fiscal year 2018 was the 1st year of implementation. Measurement Period 2020 2019 2018 2017 Total OPEB Liability Service Cost 869,222$ 843,905$ 852,382$ 827,000$ Interest on the total OPEB liability 1,103,053 1,169,182 1,099,559 1,032,000 Differences between expected and actual experience - (1,450,926) - - Changes of assumptions - (716,501) - - Benefit payments, including refunds of employee contributions (976,033) (882,052) (776,911) (805,000) Net change in total OPEB liability 996,242 (1,036,392) 1,175,030 1,054,000 Total OPEB liability - beginning 17,267,638 18,304,030 17,129,000 16,075,000 Total OPEB liability - ending (a)18,263,880$ 17,267,638$ 18,304,030$ 17,129,000$ Plan Fiduciary Net Position Contributions - employer 1,116,396$ 1,073,623$ 1,588,507$ 1,878,000$ Net investment income 763,014 1,244,479 1,431,381 1,665,000 Benefit payments, including refunds of employee contributions (976,033) (882,052) (776,911) (805,000) Administrative expense (10,512) (6,155) (33,206) (8,000) Net change in plan fiduciary net position 892,865 1,429,895 2,209,771 2,730,000 Plan fiduciary net position - beginning 21,458,666 20,028,771 17,819,000 15,089,000 Plan fiduciary net position - ending (b)22,351,531$ 21,458,666$ 20,028,771$ 17,819,000$ Net OPEB liability/(asset) - ending (a) - (b)(4,087,651)$ (4,191,028)$ (1,724,741)$ (690,000)$ Plan fiduciary net position as a percentage of the total OPEB liability 122.4%124.3%109.4% 104.0% Covered-employee payroll 10,533,380$ 10,037,794$ 9,997,000$ 10,431,000$ Net OPEB liability as a percentage of covered-employee payroll -38.8%-41.8%-17.3%-6.6% Attachment #2 167 City of Dublin Required Supplementary Information For the year ended June 30, 2020 97 2. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued B. Schedule of City Retiree Health Plan Contributions – Last 10 Years (1) (1)Fiscal year 2018 was the 1st year of implementation. Attachment #2 168 98 Attachment #2 169 SUPPLEMENTARY INFORMATION 99 Attachment #2 170 This page intentionally left blank 100 Attachment #2 171 Schedule of Budget Versus Actual Revenues By Sources General Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) Property taxes 48,896,000$ 50,396,000$ 53,007,086$ 2,611,086$ Sales tax 18,985,050 20,985,050 24,641,024 3,655,974 Other taxes 6,676,387 6,326,387 7,185,319 858,932 Intergovernmental 250,000 250,000 300,618 50,618 Licenses and permits 238,506 340,506 334,852 (5,654) Charges for services: General government 1,463,363 1,438,363 1,531,197 92,834 Police 29,140 29,140 24,895 (4,245) Fire 1,033,538 1,195,538 2,061,356 865,818 Public works and transportation 2,000 18,000 19,294 1,294 Parks and community services 3,693,402 1,479,189 1,157,209 (321,980) Community development 916 916 987 71 Investment income (loss): 1,600,000 1,600,000 2,809,671 1,209,671 Use of property 1,329,966 806,887 822,841 15,954 Unrealized gain/(loss) on investment - - (3,936,480) (3,936,480) Fines and forfeitures 107,432 62,432 75,394 12,962 Development revenue 6,951,077 7,420,567 7,391,926 (28,641) Other revenues 1,077,242 1,804,064 1,965,494 161,430 Total revenues 92,334,019 94,153,039 99,392,683 5,239,644 City of Dublin For the year ended June 30, 2021 Budgeted Amounts 101 Attachment #2 172 Schedule of Budget Versus Actual Departmental Expenditures General Fund For the year ended June 30, 2021 Variance with Final Budget Actual Positive Original Final Amounts (Negative) General government: City council 536,898 536,898 365,132 171,766 City manager 1,684,032 1,727,032 1,426,965 300,067 City clerk 700,412 710,426 511,394 199,032 Election 180,720 180,720 124,937 55,783 Human resources 945,990 1,035,990 862,526 173,464 Insurance 1,797,706 2,033,706 1,546,650 487,056 Finance 1,938,348 1,948,877 1,835,304 113,573 Non-departamental 2,166,754 5,222,314 1,254,772 3,967,542 Disaster preparedness 193,607 1,740,866 1,439,210 301,656 Crossing guards 254,608 84,608 63,519 21,089 Animal control 461,431 461,431 280,784 180,647 Waste management 71,072 71,072 18,385 52,687 Community TV 144,135 144,135 119,693 24,442 Communications 407,892 423,892 424,258 (366) Economic development 731,271 761,855 666,793 95,062 Human services 243,482 243,482 248,496 (5,014) Library services 980,482 1,032,715 762,941 269,774 Dougherty Regional Fire Authority 772,026 914,699 889,553 25,146 Non-departamental - Other -796,178 599,599 196,579 Sub-total 14,210,866 20,070,896 13,440,911 6,629,985 Police: Police operations 22,049,269 22,194,500 21,355,560 838,940 Police operations support 2,453,251 2,599,378 2,208,935 390,443 Sub-total 24,502,520 24,793,878 23,564,495 1,229,383 Fire: Fire operations 14,253,077 14,253,077 13,920,499 332,578 Fire prevention 466,971 466,971 457,109 9,862 Fire station maintenance 252,023 252,023 208,504 43,519 Sub-total 14,972,071 14,972,071 14,586,112 385,959 Public works: Maintenance 8,748,924 8,496,602 7,618,995 877,607 Engineering 2,754,626 3,088,354 2,424,568 663,786 Public works administration 1,483,353 1,723,353 1,397,338 326,015 Parks/facilities development -5,823 -5,823 Transportation 55,975 98,475 63,682 34,793 Environmental services 660,521 757,057 509,498 247,559 Sub-total 13,703,399 14,169,664 12,014,081 2,155,583 City of Dublin Budgeted Amounts 102 Attachment #2 173 Schedule of Budget Versus Actual Departmental Expenditures (Continued) General Fund For the year ended June 30, 2021 Variance with Final Budget Actual Positive Original Final Amounts (Negative) Parks and community services: Cultural and special events 909,657 680,725 522,713 158,012 Heritage Center and programs 552,592 498,230 352,746 145,484 Parks and community services administration 1,424,092 1,402,480 1,256,527 145,953 Shannon Center and programs 1,527,423 1,271,136 1,214,186 56,950 Stager and other facility operations 980,777 732,974 530,172 202,802 Senior Center and programs 945,087 844,637 657,652 186,985 The Wave and programs 2,445,156 1,934,054 1,500,957 433,097 Sub-total 8,784,784 7,364,236 6,034,953 1,329,283 Community development: Planning 2,800,288 2,896,724 2,114,947 781,777 Building and safety 3,105,845 3,126,630 2,366,273 760,357 Housing --5(5) Sub-total 5,906,133 6,023,354 4,481,225 1,542,129 Total current expenditures 82,079,773 87,394,099 74,121,777 13,272,322 Total expenditures 82,079,773$ 87,394,099$ 74,121,777$ 13,272,322$ City of Dublin Budgeted Amounts 103 Attachment #2 174 This page intentionally left blank 104 Attachment #2 175 The General Improvements Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets, Parks, or Community Improvements Projects. The Parks Projects Capital Projects Fund -is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's parks and facilities. The Streets Projects Capital Projects Fund -is used to manage the programming of fund and activities associated with major Capital Improvements Projects. The fund accumulates resources for capital expenditures and utilizes those resources to support projects that would construct, improve, or enhance the City's trails, highways, streets, roads, bridges, as well as street lighting and drain systems. The Public Facilities Impact Fees Capital Projects Fund - is used to account for fees received from developers of properties, which can only be used for the design, development and construction of new public facilities within the City. The Fire Impact Fees Capital Projects Fund - is used to account for impact fees received from developers of properties, which can only be used for the design, development and construction of fire capital expansion projects within the City. The Traffic Impact Fees Capital Projects Fund - is used to account for impact fees received from developers of properties, which can only be used for the design, development and construction of street and highway projects which serve as part of the City's transportation network. The Dublin Crossing Contribution Capital Projects Fund - accounts for community benefit payments specific to the Dublin Crossing Project, separate from any developer impact fees generated by the project. BUDGETED MAJOR GOVERNMENTAL FUNDS OTHER THAN GENERAL FUND AND SPECIAL REVENUE FUNDS 105 Attachment #2 176 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Improvement Projects Capital Projects Fund For the year ended June 30, 2021 Variance with Final Budget Actual Positive Original Final Amounts (Negative) EXPENDITURES: Capital outlay: General improvements 599,150$ 14,981,039$ 6,614,602$ 8,366,437$ Total expenditures 599,150 14,981,039 6,614,602 8,366,437 OTHER FINANCING SOURCES (USES): Transfers in 599,150 14,981,039 6,614,602 (8,366,437) Total other financing sources (uses)599,150 14,981,039 6,614,602 (8,366,437) Net change in fund balance -$ -$ - -$ FUND BALANCE: Beginning of year - End of year -$ City of Dublin Budgeted Amounts 106 Attachment #2 177 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Parks Project Capital Projects Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) EXPENDITURES: Capital outlay: Parks 9,099,316$ 27,010,849$ 4,170,540$ 22,840,309$ Total expenditures 9,099,316 27,010,849 4,170,540 22,840,309 OTHER FINANCING SOURCES (USES): Transfers in 9,099,316 27,010,849 4,170,540 (22,840,309) Total other financing sources (uses)9,099,316 27,010,849 4,170,540 (22,840,309) Net change in fund balance -$ -$ - -$ FUND BALANCE: Beginning of year - End of year -$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 107 Attachment #2 178 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Streets Projects Capital Projects Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) EXPENDITURES: Capital outlay: Streets 18,889,599$ 39,558,429$ 3,116,314$ 36,442,115$ Total expenditures 18,889,599 39,558,429 3,116,314 36,442,115 OTHER FINANCING SOURCES (USES): Transfers in 18,889,599 39,558,429 3,116,314 (36,442,115) Total other financing sources (uses)18,889,599 39,558,429 3,116,314 (36,442,115) Net change in fund balance -$ -$ - -$ FUND BALANCE: Beginning of year - End of year -$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 108 Attachment #2 179 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Public Facilities Impact Fees Capital Projects Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 376,186$ 376,186$ 437,321$ 61,135$ Development revenue 6,136,136 2,257,136 815,478 (1,441,658) Total revenues 6,512,322 2,633,322 1,252,799 (1,380,523) EXPENDITURES: Capital outlay: Debt service: Principal 1,368,187 1,368,187 1,368,186 1 Total expenditures 1,368,187 1,368,187 1,368,186 1 REVENUES OVER (UNDER) EXPENDITURES 5,144,135 1,265,135 (115,387) (1,380,522) OTHER FINANCING SOURCES (USES): Transfers out (8,955,001) (21,564,742) (2,708,953) 18,855,789 Total other financing sources (uses)(8,955,001) (21,564,742) (2,708,953) 18,855,789 Net change in fund balance (3,810,866)$ (20,299,607)$ (2,824,340) 17,475,267$ FUND BALANCE: Beginning of year 25,171,754 End of year 22,347,414$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 109 Attachment #2 180 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Fire Impact Fees Capital Projects Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 2,219$ 2,219$ 2,446$ 227$ Development revenue 85,432 85,432 74,307 (11,125) Total revenues 87,651 87,651 76,753 (10,898) EXPENDITURES: Current: General government 85,000 85,000 85,000 - Total expenditures 85,000 85,000 85,000 - REVENUES OVER (UNDER) EXPENDITURES 2,651 2,651 (8,247) (10,898) Net change in fund balance 2,651$ 2,651$ (8,247) (10,898)$ FUND BALANCE: Beginning of year 149,733 End of year 141,486$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 110 Attachment #2 181 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Traffic Impact Fees Capital Projects Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 299,950$ 299,950$ 366,642$ 66,692$ Development revenue 959,855 959,855 826,383 (133,472) Total revenues 1,259,805 1,259,805 1,193,025 (66,780) EXPENDITURES: Current: General government 200,000 571,878 444,653 127,225 Public works and transportation - 16,029 8,847 7,182 Total expenditures 200,000 587,907 453,500 134,407 REVENUES OVER (UNDER) EXPENDITURES 1,059,805 671,898 739,525 67,627 OTHER FINANCING SOURCES (USES): Transfers out (7,887,221) (18,081,640) (273,542) 17,808,098 Total other financing sources (uses)(7,887,221) (18,081,640) (273,542) 17,808,098 Net change in fund balance (6,827,416)$ (17,409,742)$ 465,983 17,875,725$ FUND BALANCE: Beginning of year 27,036,370 End of year 27,502,353$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 111 Attachment #2 182 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Dublin Crossing Contribution Capital Project Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 150,000$ 150,000$ 102,742$ (47,258)$ Development revenue 1,000,000 1,000,000 1,695,670 695,670 Total revenues 1,150,000 1,150,000 1,798,412 648,412 OTHER FINANCING SOURCES (USES): Transfers out (1,000,000) (1,000,000) - 1,000,000 Total other financing sources (uses)(1,000,000) (1,000,000) - 1,000,000 Net change in fund balance 150,000$ 150,000$ 1,798,412 1,648,412$ FUND BALANCE: Beginning of year 7,270,307 End of year 9,068,719$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 112 Attachment #2 183 Public Safety Special Criminal Activity established to account for receipt of funds derived from asset forfeitures. Vehicle Abatement established to account for the use of funds received from vehicle registration of Dublin residents for the towing of abandoned vehicles in city limits. Supplemental Law Enforcement (SLES/COPS)established to account for police expenditures funded by a State grant. Traffic Safety established to account for the receipt of traffic fines and traffic safety expenditures. Federal Asset seizure established to account for the receipts and expenditures of the Federal seizure funds. Emergency Medical Services (EMS)established to account for excise taxes received to fund the costs of providing Emergency Medical Services. Enforcement Grants established to account for miscellaneous grants received for police expenditures not reported in the above funds. Transportation: State Gas Tax established to account for the receipt of state gasoline taxes and expenditures. Measure B Sales Tax - Local Streets established to account for an Alameda County voter sales tax used for improvements on streets and roads. Measure B Sales Tax - Bike/Pedestrian established to account for an Alameda County voter approved increase in sales tax used for bike and pedestrian related projects. Measure B Grants established to account for transportation projects financed by grants, funded by an Alameda County voter approved increase in sales tax. Measure BB Sales Tax - Streets and Roads established to account for an Alameda County voter approved increase in sales tax used for improvements on streets and roads. Measure BB Sales Tax - Bike/Pedestrian established to account for Alameda County voter approved increase in sales tax used for bike and pedestrian related projects. Measure BB Grants Fund -established to account for Alameda County Transportation Commission (ACTC) discretionary funding (versus direct funding) from 2014 voter-approved increase in sales tax used for improvements on bike and pedestrian projects. Transportation Fund for Clean Air (TFCA)established to account for a portion of vehicle registration fee used for achieving the reduction of motor vehicle emissions. Road Maintenance & Rehabilitation Account (RMRA)established to account for Senate Bill 1 that increases gasoline and diesel taxes and vehicle registration fees to fund for basic road maintenance, rehabilitation, and critical safety projects on local streets and roads. NON-MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. 113 Attachment #2 184 ACTC Vehicle Registration Fee established to account for an Alameda County Transportation Commission (ACTC) voter approved increase in vehicle registration fee that is distributed by ACTC to be used for street road system maintenance. TDA established to account for the financial activities associated with allocations funded by the State of California Transportation Development Act (TDA) for the Pedestrian/Bicycle Projects. Environmental: Garbage/Recycling established to account for the following activities: Measure D Recycling established to account for the use of funds received which are levied by the County pursuant to a charter amendment and are provided for recycling and related activities. This fund also accounts for other locally derived funds for recycling related activities. Garbage Service established to account for the use of funds received which are levied by the county on behalf of the City for garbage pitch-up and removal and recycling services. Local Recycling established to account for locally derived funds collected for a commercial organic and recycling program and activities retained by the City at the end of the franchise held by Waste Management Inc. These funds are independent of the funds distributed by Stop Waste pursuant to the Alameda County Recycling Measure. AVI Economic Benefit/business Assistance Program established to account for the grant received from Amador Valley Industry and to provide business owners funding for eligible environmental related improvements. Storm Water Management established to account for the following activities: Storm Water Management established to account for the funds received from the State and designated specifically for the use of storm water related activities. Village Parkway Storm Water Management established to account for funds designated for management of the Village Parkway area storm water units. Box Culvert established to account for the funds designated for the maintenance and repairs of box culvert in the East Dublin area. SPECIAL REVENUE FUNDS, Continued NON-MAJOR GOVERNMENTAL FUNDS 114 Attachment #2 185 Parks, Cultural, and Arts: Public Art established to account for the fees received from developers of properties, which can only be used for the purchase design, development, and construction of Public Art projects within the City of Dublin. Miscellaneous Special Revenue established to account for the following activities: Cable TV Facilities established to account for Cable TV Facilities fees collected from Cable Television providers and passed through to the City for local cable television as allowed under State and Federal franchising laws. Noise Mitigation established to account for the fees received from developers of properties, which can only be used for the noise mitigation measures. Citywide Events (Customer Service) Fund established to account for event ticket sales and donations, to be spent on special events citywide. Community Development Block Grant (CDBG)used to account for grants and expenditures related to Community Development Block Grants received . HCD Housing Related Parks Grant established to account for a Housing-Related Park (HRP) Grant funding from the Department of Housing and Community Development pursuant to the Housing and Emergency Shelter Trust Fund Act of 2006 (Proposition IC.) State Grant Park used to account for local assistance grant funding from the State for park constructions. Building Homes and Jobs Act established o account for funding from California Department of Housing and Community Development (HCD) to increase the affordable housing stock in California. State Housing Grant established to account for Local Action Planning Grants (Leap) grants allocated by the State Housing and Community Development Department for the preparation and adopton of planning documents and process improvements that accelerate housing production and facilitate compliance to implement the sith-cycle Regional Housing Needs Assessment. COVID-19 Grants established t o account for grants received from non-Federal agency in response to the COVID-19 pandemic. Federal COVID-19 Financial Assistance established to account for emergency funding from the federal awarding agencies with options for administrative relief to be used at the discretion of the federal awarding agency in response to the COVID-19 pandemic. Maintenance Districts established to account for revenue and related expenditures of lighting and landscape districts. SPECIAL REVENUE FUNDS, Continued NON-MAJOR GOVERNMENTAL FUNDS 115 Attachment #2 186 City of Dublin Combining Balance Sheet Governmental Funds June 30, 2021 Special Supplemental Criminal Vehicle Law Traffic Federal Asset Activity Abatement Enforcement Safety Seizure ASSETS Cash and investments 568,714$ 275,083$ 316,012$ -$ 650$ Accounts receivable - 31,451 - 11,004 - Notes receivable - - - - - Prepaids - - - - - Total assets 568,714 306,534 316,012 11,004 650 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 1,040 30,105 100,000 8,456 - Deposits payable 542,946 ---- Contract retention payable ----- Unearned revenue ----- Due to other funds ---12,397- Advances from other funds ----- Total liabilities 543,986 30,105 100,000 20,853 - Deferred inflows of resources: Unavailable revenue - accounts receivable - - - - - Total deferred inflows of resources - - - - - Fund Balances: Nonspendable ----- Restricted: Public safety programs 24,728 276,429 216,012 -650 Street maintenance and construction ----- Health and welfare programs ----- Culture and leisure ----- Capital improvement projects ----- Unassigned ---(9,849)- Total fund balances 24,728 276,429 216,012 (9,849) 650 Total liabilities, deferred inflows of resources, and fund balances 568,714$ 306,534$ 316,012$ 11,004$ 650$ Special Revenue Funds 116 Attachment #2 187 Emergency Measure B Measure B Measure BB Measure BB Medical Enforcement Sales Tax Sales Tax Measure B Sales Tax Sales Tax Services Grants State Gas Tax Local Streets Bike/Pedestrian Grants Streets and Roads Bike/Pedestrian 238,815$ 131,947$ 3,269,992$ 764,088$ 157,147$ 110,808$ 250,082$ 147,635$ 1,175 15,497 - 131,110 47,696 75,000 117,662 38,917 - - - - - - - - - - - - - - - - 239,990 147,444 3,269,992 895,198 204,843 185,808 367,744 186,552 22,046 12,927 192,153 ----- -------- --2,353----- -------- -------- -------- 22,046 12,927 194,506 - - - - - - - - - - - - - - - - - - - - - -------- 217,944 134,517 ------ -- 3,075,486 895,198 204,843 185,808 367,744 186,552 -------- -------- -------- -------- 217,944 134,517 3,075,486 895,198 204,843 185,808 367,744 186,552 239,990$ 147,444$ 3,269,992$ 895,198$ 204,843$ 185,808$ 367,744$ 186,552$ Special Revenue Funds 117 Attachment #2 188 City of Dublin Combining Balance Sheet Governmental Funds June 30, 2021 ACTC Transportation Road Maint & Vehicle Measure BB for Clean Air Rehab Account Registration Grants (TFCA)(RMRA)Fee TDA ASSETS Cash and investments -$ -$ 1,695,893$ 167,299$ -$ Accounts receivable 24,414 - 222,005 51,180 30,255 Notes receivable - - - - - Prepaids - - - - - Total assets 24,414 - 1,917,898 218,479 30,255 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable ----- Deposits payable ----- Contract retention payable ----- Unearned revenue ----- Due to other funds 110,845 ---30,255 Advances from other funds ----- Total liabilities 110,845 - - - 30,255 Deferred inflows of resources: Unavailable revenue - accounts receivable 24,415 - - - - Total deferred inflows of resources 24,415 - - - - Fund Balances: Nonspendable ----- Restricted: Public safety programs ----- Street maintenance and construction - - 1,917,898 218,479 - Health and welfare programs ----- Culture and leisure ----- Capital improvement projects ----- Unassigned (110,846)---- Total fund balances (110,846) - 1,917,898 218,479 - Total liabilities, deferred inflows of resources, and fund balances 24,414$ -$ 1,917,898$ 218,479$ 30,255$ Special Revenue Funds 118 Attachment #2 189 AVI Economic Benefit/Business Storm Miscellaneous Community Garbage/ Assistance Water Box Special Development State Grant Recycling Program Management Culvert Public Art Revenue Block Grant Park 1,120,025$ 63,389$ 239,068$ 393,922$ 4,008,099$ 383,704$ -$ -$ 77,220 - - - - 32,883 151,811 377,466 - 514,461 - - - - - - - - - - - - - - 1,197,245 577,850 239,068 393,922 4,008,099 416,587 151,811 377,466 48,878 ---4,000 -5,426 - -----2,431 -- -------- -------- ------139,785 377,466 -------- 48,878 - - - 4,000 2,431 145,211 377,466 - - - - - - - - - - - - - - - - -------- -------- - - 239,068 393,922 ---- 1,148,367 ----22,7696,600- - 577,850 --- 391,387 -- ----4,004,099--- -------- 1,148,367 577,850 239,068 393,922 4,004,099 414,156 6,600 - 1,197,245$ 577,850$ 239,068$ 393,922$ 4,008,099$ 416,587$ 151,811$ 377,466$ Special Revenue Funds 119 Attachment #2 190 City of Dublin Combining Balance Sheet Governmental Funds June 30, 2021 Federal Building State COVID-19 1983-1 Homes and Housing COVID-19 Financial Street Jobs Act Grant Grants Assistance Lighting ASSETS Cash and investments -$ -$ -$ -$ 583,965$ Accounts receivable - - - 190,238 1,606 Notes receivable - - - 359,140 - Prepaids - - - - - Total assets - - - 549,378 585,571 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities: Accounts payable 55,593 4,202 --25,860 Deposits payable ----- Contract retention payable ----- Unearned revenue ----- Due to other funds 131,763 14,623 - 190,238 - Advances from other funds ----- Total liabilities 187,356 18,825 - 190,238 25,860 Deferred inflows of resources: Unavailable revenue - accounts receivable - - - - - Total deferred inflows of resources - - - - - Fund Balances: Nonspendable ----- Restricted: Public safety programs ----- Street maintenance and construction ----559,711 Health and welfare programs --- 359,140 - Culture and leisure ----- Capital improvement projects ----- Unassigned (187,356)(18,825)--- Total fund balances (187,356) (18,825) - 359,140 559,711 Total liabilities, deferred inflows of resources, and fund balances -$ -$ -$ 549,378$ 585,571$ Special Revenue Funds 120 Attachment #2 191 1983-2 1986-1 1997-1 1999-1 Dublin Total Nonmajor Stagecoach Dougherty Santa Rita East Dublin Crossing Governmental Landscape Landscape Landscape Street Lighting CFD No. 2017-1 Funds 310,459$ 506,910$ 1,204,281$ 1,222,300$ 257,132$ 18,387,419$ 225 356 1,001 1,281 213 1,631,666 - - - - - 873,601 - - - - - - 310,684 507,266 1,205,282 1,223,581 257,345 20,892,686 1,925 15,134 28,863 17,917 - 574,525 -----545,377 -----2,353 ------ -----1,007,372 ------ 1,925 15,134 28,863 17,917 - 2,129,627 - - - - - 24,415 - - - - - 24,415 ------ -----870,280 308,759 492,132 1,176,419 1,205,664 257,345 11,685,028 -----1,536,876 -----969,237 -----4,004,099 -----(326,876) 308,759 492,132 1,176,419 1,205,664 257,345 18,738,644 310,684$ 507,266$ 1,205,282$ 1,223,581$ 257,345$ 20,892,686$ Special Revenue Funds Maintenance Districts 121 Attachment #2 192 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2021 Special Supplemental Criminal Vehicle Law Traffic Federal Asset Activity Abatement Enforcement Safety Seizure REVENUES: Intergovernmental -$ 113,848$ 156,727$ -$ -$ Charges for service - - - - - Interest 277 3,546 3,495 139 8 Fines and forfeitures - - - 102,083 - Development revenue - - - - - Other revenue 13,783 - - - - Special assessments - - - - - Total revenues 14,060 117,394 160,222 102,222 8 EXPENDITURES: Current: General Government ----- Police 17,717 35,868 100,002 -- Fire ----- Public works --- 173,338 - Park and community services ----- Community development - - - - - Total expenditures 17,717 35,868 100,002 173,338 - REVENUES OVER (UNDER) EXPENDITURES (3,657) 81,526 60,220 (71,116) 8 OTHER FINANCING SOURCES (USES): Transfers out - (37,404) - - - Total other financing sources (uses)- (37,404) - - - Net change in fund balances (3,657) 44,122 60,220 (71,116) 8 FUND BALANCES (DEFICITS): Beginning of year 28,385 232,307 155,792 61,267 642 End of year 24,728$ 276,429$ 216,012$ (9,849)$ 650$ Special Revenue Funds 122 Attachment #2 193 Measure BB Measure BB Emergency Measure B Measure B Sales Tax Sales Tax Medical Enforcement Sales Tax Sales Tax Bike Measure B Streets and Bike/ Services Grants State Gas Tax Local Streets /Pedestrian Grants Roads Pedestrian -$ 38,797$ 1,428,095$ 643,740$ 234,185$ 75,000$ 578,781$ 191,436$ - - - - - - - - 3,442 - 41,560 7,486 2,084 1,931 4,277 2,704 - - - - - - - - - - - - - - - - - - - - - - - - 210,481 - - - - - - - 213,923 38,797 1,469,655 651,226 236,269 76,931 583,058 194,140 -------- -37,274------ 174,199 ------- - - 678,314 - 2,500 - - - -------- - - - - - - - - 174,199 37,274 678,314 - 2,500 - - - 39,724 1,523 791,341 651,226 233,769 76,931 583,058 194,140 - - (228,726) (63,398) (231,580) (75,710) (692,411) (205,679) - - (228,726) (63,398) (231,580) (75,710) (692,411) (205,679) 39,724 1,523 562,615 587,828 2,189 1,221 (109,353) (11,539) 178,220 132,994 2,512,871 307,370 202,654 184,587 477,097 198,091 217,944$ 134,517$ 3,075,486$ 895,198$ 204,843$ 185,808$ 367,744$ 186,552$ Special Revenue Funds 123 Attachment #2 194 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2021 ACTC Transportation Road Maint & Vehicle Measure BB for Clean Air Rehab Account Registration Grants (TFCA)(RMRA)Fee TDA REVENUES: Intergovernmental 3,051,000$ -$ 1,218,279$ 300,170$ 192,683$ Charges for service - - - - - Interest 4,905 - 18,136 3,264 - Fines and forfeitures - - - - - Development revenue - - - - - Other revenue - - - - - Special assessments - - - - - Total revenues 3,055,905 - 1,236,415 303,434 192,683 EXPENDITURES: Current: General Government ----- Police ----- Fire ----- Public works --- 262,400 - Park and community services ----- Community development - - - - - Total expenditures - - - 262,400 - REVENUES OVER (UNDER) EXPENDITURES 3,055,905 - 1,236,415 41,034 192,683 OTHER FINANCING SOURCES (USES): Transfers out (148,899) - (385,000) (107,111) (120,910) Total other financing sources (uses)(148,899) - (385,000) (107,111) (120,910) Net change in fund balances 2,907,006 - 851,415 (66,077) 71,773 FUND BALANCES (DEFICITS): Beginning of year (3,017,852) - 1,066,483 284,556 (71,773) End of year (110,846)$ -$ 1,917,898$ 218,479$ -$ Special Revenue Funds 124 Attachment #2 195 AVI Economic Benefit/Business Storm Miscellaneous Community Garbage/ Assistance Water Box Special Development State Grant Recycling Program Management Culvert Public Art Revenue Block Grant Park 212,145$ -$ -$ -$ -$ -$ 532,917$ 377,466$ 6,897,159 - - - 4,900 131,499 - - 19,332 186 3,261 5,297 55,667 4,481 - - - - - - - - - - - - - - 47,481 2,016 - - - 100,000 - - - - - - - - - - - - - - 7,128,636 100,186 3,261 5,297 108,048 137,996 532,917 377,466 6,912,804----29,433526,317 - -------- -------- 102,061 -5,980----- ----50,301 --- - - - - - - - - 7,014,865 - 5,980 - 50,301 29,433 526,317 - 113,771 100,186 (2,719) 5,297 57,747 108,563 6,600 377,466 (27,802) - - - (207,777) - - (23,296) (27,802) - - - (207,777) - - (23,296) 85,969 100,186 (2,719) 5,297 (150,030) 108,563 6,600 354,170 1,062,398 477,664 241,787 388,625 4,154,129 305,593 - (354,170) 1,148,367$ 577,850$ 239,068$ 393,922$ 4,004,099$ 414,156$ 6,600$ -$ Special Revenue Funds 125 Attachment #2 196 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2021 Federal Building State COVID-19 1983-1 Homes and Housing COVID-19 Financial Street Jobs Act Grant Grants Assistance Lighting REVENUES: Intergovernmental -$ -$ 50,500$ 1,109,321$ -$ Charges for service - - - - - Interest - - - - 7,101 Fines and forfeitures - - - - - Development revenue - - - - - Other revenue - - - - - Special assessments - - - - 316,805 Total revenues - - 50,500 1,109,321 323,906 EXPENDITURES: Current: General Government --50,500 588,591 - Police ----- Fire ----- Public works ----245,099 Park and community services ----- Community development 187,356 18,825 - - - Total expenditures 187,356 18,825 50,500 588,591 245,099 REVENUES OVER (UNDER) EXPENDITURES (187,356) (18,825) - 520,730 78,807 OTHER FINANCING SOURCES (USES): Transfers out - - - (107,679) - Total other financing sources (uses)- - - (107,679) - Net change in fund balances (187,356) (18,825) - 413,051 78,807 FUND BALANCES (DEFICITS): Beginning of year - - - (53,911) 480,904 End of year (187,356)$ (18,825)$ -$ 359,140$ 559,711$ Special Revenue Funds 126 Attachment #2 197 1983-2 1986-1 1997-1 1999-1 Dublin Total Nonmajor Stagecoach Dougherty Santa Rita East Dublin Crossing Governmental Landscape Landscape Landscape Street Lighting CFD No. 2017-1 Funds -$ -$ -$ -$ -$ 10,505,090$ - - - - - 7,033,558 3,759 6,242 14,495 15,896 2,773 235,744 - - - - - 102,083 - - - - - 49,497 - - - - - 113,783 91,263 133,640 394,249 307,566 96,476 1,550,480 95,022 139,882 408,744 323,462 99,249 19,590,235 -----8,107,645 -----190,861 -----174,199 40,536 92,519 225,562 244,969 8,800 2,082,078 -----50,301 - - - - - 206,181 40,536 92,519 225,562 244,969 8,800 10,811,265 54,486 47,363 183,182 78,493 90,449 8,778,970 - - - (2,459) - (2,665,841) - - - (2,459) - (2,665,841) 54,486 47,363 183,182 76,034 90,449 6,113,129 254,273 444,769 993,237 1,129,630 166,896 12,625,515 308,759$ 492,132$ 1,176,419$ 1,205,664$ 257,345$ 18,738,644$ Special Revenue Funds Maintenance Districts 127 Attachment #2 198 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Special Criminal Activity Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 644$ 644$ 277$ (367)$ Other revenues - - 13,783 13,783 Total revenues 644 644 14,060 13,416 EXPENDITURES: Current: Police - 26,251 17,717 8,534 Total expenditures - 26,251 17,717 8,534 REVENUES OVER (UNDER) EXPENDITURES 644 (25,607) (3,657) 21,950 Net change in fund balance 644$ (25,607)$ (3,657) 21,950$ FUND BALANCE: Beginning of year 28,385 End of year 24,728$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 128 Attachment #2 199 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Vehicle Abatement Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 34,000$ 34,000$ 113,848$ 79,848$ Interest 2,886 2,886 3,546 660 Total revenues 36,886 36,886 117,394 80,508 EXPENDITURES: Current: Police - 48,000 35,868 12,132 Total expenditures - 48,000 35,868 12,132 REVENUES OVER (UNDER) EXPENDITURES 36,886 (11,114) 81,526 92,640 OTHER FINANCING SOURCES (USES): Transfers out (50,000) (50,000) (37,404) 12,596 Total other financing sources (uses)(50,000) (50,000) (37,404) 12,596 Net change in fund balance (13,114)$ (61,114)$ 44,122 105,236$ FUND BALANCE: Beginning of year 232,307 End of year 276,429$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 129 Attachment #2 200 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Supplemental Law Enforcement Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 100,000$ 100,000$ 156,727$ 56,727$ Interest 1,373 1,373 3,495 2,122 Total revenues 101,373 101,373 160,222 58,849 EXPENDITURES: Current: Police 100,000 100,000 100,002 (2) Total expenditures 100,000 100,000 100,002 (2) REVENUES OVER (UNDER) EXPENDITURES 1,373 1,373 60,220 58,847 Net change in fund balance 1,373$ 1,373$ 60,220 58,847$ FUND BALANCE: Beginning of year 155,792 End of year 216,012$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 130 Attachment #2 201 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Traffic Safety Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 1,250$ 1,250$ 139$ (1,111)$ Fines and forfeitures 140,000 140,000 102,083 (37,917) Total revenues 141,250 141,250 102,222 (39,028) EXPENDITURES: Current: Public works and transportation 140,760 250,895 173,338 77,557 Total expenditures 140,760 250,895 173,338 77,557 REVENUES OVER (UNDER) EXPENDITURES 490 (109,645) (71,116) 38,529 OTHER FINANCING SOURCES (USES): Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balance 490$ (109,645)$ (71,116) 38,529$ FUND BALANCE: Beginning of year 61,267 End of year (9,849)$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 131 Attachment #2 202 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Federal Asset Seizure Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest -$ -$ 8$ 8$ Total revenues - - 8 8 Net change in fund balance -$ -$ 8 8$ FUND BALANCE: Beginning of year 642 End of year 650$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 132 Attachment #2 203 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Emergency Medical Services Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 2,114$ 2,114$ 3,442$ 1,328$ Special assessments 203,789 203,789 210,481 6,692 Total revenues 205,903 205,903 213,923 8,020 EXPENDITURES: Current: Fire 188,656 188,656 174,199 14,457 Total expenditures 188,656 188,656 174,199 14,457 REVENUES OVER (UNDER) EXPENDITURES 17,247 17,247 39,724 22,477 Net change in fund balance 17,247$ 17,247$ 39,724 22,477$ FUND BALANCE: Beginning of year 178,220 End of year 217,944$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 133 Attachment #2 204 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Enforcement Grants Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 79,034$ 38,797$ (40,237)$ Interest 464 464 - (464) Total revenues 464 79,498 38,797 (40,701) EXPENDITURES: Current: Police - 110,014 37,274 72,740 Total expenditures - 110,014 37,274 72,740 REVENUES OVER (UNDER) EXPENDITURES 464 (30,516) 1,523 32,039 Net change in fund balance 464$ (30,516)$ 1,523 32,039$ FUND BALANCE: Beginning of year 132,994 End of year 134,517$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 134 Attachment #2 205 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual State Gas Tax Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 1,291,045$ 1,291,045$ 1,428,095$ 137,050$ Interest 25,000 25,000 41,560 16,560 Total revenues 1,316,045 1,316,045 1,469,655 153,610 EXPENDITURES: Current: Public works and transportation 645,654 732,121 678,314 53,807 Total expenditures 645,654 732,121 678,314 53,807 REVENUES OVER (UNDER) EXPENDITURES 670,391 583,924 791,341 207,417 OTHER FINANCING SOURCES (USES): Transfers out (667,040) (2,859,660) (228,726) 2,630,934 Total other financing sources (uses)(667,040) (2,859,660) (228,726) 2,630,934 Net change in fund balance 3,351$ (2,275,736)$ 562,615 2,838,351$ FUND BALANCE: Beginning of year 2,512,871 End of year 3,075,486$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 135 Attachment #2 206 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B Sales Tax Local Streets Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 542,180$ 542,180$ 643,740$ 101,560$ Interest 4,768 4,768 7,486 2,718 Total revenues 546,948 546,948 651,226 104,278 OTHER FINANCING SOURCES (USES): Transfers out (593,980) (687,586) (63,398) 624,188 Total other financing sources (uses)(593,980) (687,586) (63,398) 624,188 Net change in fund balance (47,032)$ (140,638)$ 587,828 728,466$ FUND BALANCE: Beginning of year 307,370 End of year 895,198$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 136 Attachment #2 207 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B Sales Tax Bike/Pedestrian Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 195,862$ 195,862$ 234,185$ 38,323$ Interest 2,200 2,200 2,084 (116) Total revenues 198,062 198,062 236,269 38,207 EXPENDITURES: Current: Public works and transportation 18,000 22,618 2,500 20,118 Total expenditures 18,000 22,618 2,500 20,118 REVENUES OVER (UNDER) EXPENDITURES 180,062 175,444 233,769 58,325 OTHER FINANCING SOURCES (USES): Transfers out (223,400) (316,297) (231,580) 84,717 Total other financing sources (uses)(223,400) (316,297) (231,580) 84,717 Net change in fund balance (43,338)$ (140,853)$ 2,189 143,042$ FUND BALANCE: Beginning of year 202,654 End of year 204,843$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 137 Attachment #2 208 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B Grants Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 75,000$ 75,000$ -$ Interest - - 1,931 1,931 Total revenues - 75,000 76,931 1,931 OTHER FINANCING SOURCES (USES): Transfers out - (83,965) (75,710) 8,255 Total other financing sources (uses)- (83,965) (75,710) 8,255 Net change in fund balance -$ (8,965)$ 1,221 10,186$ FUND BALANCE: Beginning of year 184,587 End of year 185,808$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 138 Attachment #2 209 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB Sales Tax Streets and Roads Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 486,937$ 486,937$ 578,781$ 91,844$ Interest 2,770 2,770 4,277 1,507 Total revenues 489,707 489,707 583,058 93,351 OTHER FINANCING SOURCES (USES): Transfers out (524,000) (809,518) (692,411) 117,107 Total other financing sources (uses)(524,000) (809,518) (692,411) 117,107 Net change in fund balance (34,293)$ (319,811)$ (109,353) 210,458$ FUND BALANCE: Beginning of year 477,097 End of year 367,744$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 139 Attachment #2 210 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB Sales Tax Bike/Pedestrian Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 159,933$ 159,933$ 191,436$ 31,503$ Interest 1,324 1,324 2,704 1,380 Total revenues 161,257 161,257 194,140 32,883 OTHER FINANCING SOURCES (USES): Transfers out (232,878) (325,378) (205,679) 119,699 Total other financing sources (uses)(232,878) (325,378) (205,679) 119,699 Net change in fund balance (71,621)$ (164,121)$ (11,539) 152,582$ FUND BALANCE: Beginning of year 198,091 End of year 186,552$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 140 Attachment #2 211 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB Grants Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 4,181,390$ 4,260,072$ 3,051,000$ (1,209,072)$ Interest - - 4,905 4,905 Total revenues 4,181,390 4,260,072 3,055,905 (1,204,167) OTHER FINANCING SOURCES (USES): Transfers out (4,751,000) (5,739,540) (148,899) 5,590,641 Total other financing sources (uses)(4,751,000) (5,739,540) (148,899) 5,590,641 Net change in fund balance (569,610)$ (1,479,468)$ 2,907,006 4,386,474$ FUND BALANCE: Beginning of year (3,017,852) End of year (110,846)$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 141 Attachment #2 212 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Transportation for Clean Air (TFCA) Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 146,000$ -$ (146,000)$ Total revenues - 146,000 - (146,000) OTHER FINANCING SOURCES (USES): Transfers out (856,419) (1,002,419) - 1,002,419 Total other financing sources (uses)(856,419) (1,002,419) - 1,002,419 Net change in fund balance (856,419)$ (856,419)$ - 856,419$ FUND BALANCE: End of year -$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 142 Attachment #2 213 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Road Maintenance & Rehabilitation Account (RMRA) Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 918,671$ 918,671$ 1,218,279$ 299,608$ Interest 6,453 6,453 18,136 11,683 Other revenues 57,054 57,054 - (57,054) Total revenues 982,178 982,178 1,236,415 254,237 OTHER FINANCING SOURCES (USES): Transfers out (1,247,000) (2,029,968) (385,000) 1,644,968 Total other financing sources (uses)(1,247,000) (2,029,968) (385,000) 1,644,968 Net change in fund balance (264,822)$ (1,047,790)$ 851,415 1,899,205$ FUND BALANCE: Beginning of year 1,066,483 End of year 1,917,898$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 143 Attachment #2 214 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ACTC Vehicle Registration Fee Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 241,080$ 241,080$ 300,170$ 59,090$ Interest 3,460 3,460 3,264 (196) Total revenues 244,540 244,540 303,434 58,894 EXPENDITURES: Current: Public works and transportation 262,400 262,400 262,400 - Total expenditures 262,400 262,400 262,400 - REVENUES OVER (UNDER) EXPENDITURES (17,860) (17,860) 41,034 58,894 OTHER FINANCING SOURCES (USES): Transfers out (58,000) (223,007) (107,111) 115,896 Total other financing sources (uses)(58,000) (223,007) (107,111) 115,896 Net change in fund balance (75,860)$ (240,867)$ (66,077) 174,790$ FUND BALANCE: Beginning of year 284,556 End of year 218,479$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 144 Attachment #2 215 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual TDA Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 210,000$ 192,683$ (17,317)$ Total revenues - 210,000 192,683 (17,317) OTHER FINANCING SOURCES (USES): Transfers out - (138,227) (120,910) 17,317 Total other financing sources (uses)- (138,227) (120,910) 17,317 Net change in fund balance -$ 71,773$ 71,773 -$ FUND BALANCE: Beginning of year (71,773) End of year -$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 145 Attachment #2 216 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Garbage/Recycling Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 262,000$ 262,000$ 212,145$ (49,855)$ Charges for services 6,508,000 6,913,000 6,897,159 (15,841) Interest 8,823 8,823 19,332 10,509 Other revenues 1,000 1,000 - (1,000) Total revenues 6,779,823 7,184,823 7,128,636 (56,187) EXPENDITURES: Current: General government 6,508,000 6,913,000 6,912,804 196 Public works and transportation 531,220 616,405 102,061 514,344 Total expenditures 7,039,220 7,529,405 7,014,865 514,540 REVENUES OVER (UNDER) EXPENDITURES (259,397) (344,582) 113,771 458,353 OTHER FINANCING SOURCES (USES): Transfers out - (138,610) (27,802) 110,808 Total other financing sources (uses)- (138,610) (27,802) 110,808 Net change in fund balance (259,397)$ (483,192)$ 85,969 569,161$ FUND BALANCE: Beginning of year 1,062,398 End of year 1,148,367$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 146 Attachment #2 217 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual AVI Economic Benefit/Business Assistance Program Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest -$ -$ 186$ 186$ Other revenues 100,000 100,000 100,000 - Total revenues 100,000 100,000 100,186 186 EXPENDITURES: Current: General government 100,000 100,000 - 100,000 Total expenditures 100,000 100,000 - 100,000 REVENUES OVER (UNDER) EXPENDITURES - - 100,186 100,186 Net change in fund balance -$ -$ 100,186 100,186$ FUND BALANCE: Beginning of year 477,664 End of year 577,850$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 147 Attachment #2 218 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Storm Water Management Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 3,046$ 3,046$ 3,261$ 215$ Total revenues 3,046 3,046 3,261 215 EXPENDITURES: Current: Public works and transportation 12,000 12,000 5,980 6,020 Total expenditures 12,000 12,000 5,980 6,020 REVENUES OVER (UNDER) EXPENDITURES (8,954) (8,954) (2,719) 6,235 Net change in fund balance (8,954)$ (8,954)$ (2,719) 6,235$ FUND BALANCE: Beginning of year 241,787 End of year 239,068$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 148 Attachment #2 219 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Box Culvert Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 4,664$ 4,664$ 5,297$ 633$ Total revenues 4,664 4,664 5,297 633 Net change in fund balance 4,664$ 4,664$ 5,297 633$ FUND BALANCE: Beginning of year 388,625 End of year 393,922$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 149 Attachment #2 220 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Public Art Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Charges for services -$ -$ 4,900$ 4,900$ Interest 60,177 60,177 55,667 (4,510) Development revenue - - 47,481 47,481 Total revenues 60,177 60,177 108,048 47,871 EXPENDITURES: Current: Parks and community services 85,000 85,000 50,301 34,699 Total expenditures 85,000 85,000 50,301 34,699 REVENUES OVER (UNDER) EXPENDITURES (24,823) (24,823) 57,747 82,570 OTHER FINANCING SOURCES (USES): Transfers out (100,450) (608,397) (207,777) 400,620 Total other financing sources (uses)(100,450) (608,397) (207,777) 400,620 Net change in fund balance (125,273)$ (633,220)$ (150,030) 483,190$ FUND BALANCE: Beginning of year 4,154,129 End of year 4,004,099$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 150 Attachment #2 221 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Miscellaneous Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Charges for services 183,000$ 183,000$ 131,499$ (51,501)$ Interest 1,181 1,181 4,481 3,300 Development revenue 894 894 2,016 1,122 Total revenues 185,075 185,075 137,996 (47,079) EXPENDITURES: Current: General government 42,442 42,442 29,433 13,009 Total expenditures 42,442 42,442 29,433 13,009 REVENUES OVER (UNDER) EXPENDITURES 142,633 142,633 108,563 (34,070) Net change in fund balance 142,633$ 142,633$ 108,563 (34,070)$ FUND BALANCE: Beginning of year 305,593 End of year 414,156$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 151 Attachment #2 222 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 100,570$ 527,177$ 532,917$ 5,740$ Total revenues 100,570 527,177 532,917 5,740 EXPENDITURES: Current: General government 93,970 520,577 526,317 (5,740) Total expenditures 93,970 520,577 526,317 (5,740) REVENUES OVER (UNDER) EXPENDITURES 6,600 6,600 6,600 - OTHER FINANCING SOURCES (USES): Transfers out (6,600) (6,600) - 6,600 Total other financing sources (uses)(6,600) (6,600) - 6,600 Net change in fund balance -$ -$ 6,600 6,600$ FUND BALANCE: Beginning of year - End of year 6,600$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 152 Attachment #2 223 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual State Grant Park Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 377,466$ 377,466$ -$ Total revenues - 377,466 377,466 - OTHER FINANCING SOURCES (USES): Transfers out - (23,296) (23,296) - Total other financing sources (uses)- (23,296) (23,296) - Net change in fund balance -$ 354,170$ 354,170 -$ FUND BALANCE: Beginning of year (354,170) End of year -$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 153 Attachment #2 224 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Building Homes and Jobs Act Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental 310,000$ 310,000$ -$ (310,000)$ Total revenues 310,000 310,000 - (310,000) EXPENDITURES: Current: General government - - - - Community development 310,000 310,000 187,356 122,644 Total expenditures 310,000 310,000 187,356 122,644 REVENUES OVER (UNDER) EXPENDITURES - - (187,356) (187,356) Net change in fund balance -$ -$ (187,356) (187,356)$ FUND BALANCE: Beginning of year - End of year (187,356)$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 154 Attachment #2 225 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual State Housing Grant Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 300,000$ -$ (300,000)$ Total revenues - 300,000 - (300,000) EXPENDITURES: Current: Community development - 300,000 18,825 281,175 Total expenditures - 300,000 18,825 281,175 REVENUES OVER (UNDER) EXPENDITURES - - (18,825) (18,825) Net change in fund balance -$ -$ (18,825) (18,825)$ FUND BALANCE: Beginning of year - End of year (18,825)$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 155 Attachment #2 226 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual COVID-19 Grants Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 50,500$ 50,500$ -$ Total revenues - 50,500 50,500 - EXPENDITURES: Current: General government - 50,500 50,500 - Total expenditures - 50,500 50,500 - REVENUES OVER (UNDER) EXPENDITURES - - - - Net change in fund balance -$ -$ - -$ FUND BALANCE: Beginning of year - End of year -$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 156 Attachment #2 227 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Federal COVID-19 Financial Assistance Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental -$ 1,001,642$ 1,109,321$ 107,679$ Total revenues - 1,001,642 1,109,321 107,679 EXPENDITURES: Current: General government - 947,731 588,591 359,140 Total expenditures - 947,731 588,591 359,140 REVENUES OVER (UNDER) EXPENDITURES - 53,911 520,730 466,819 OTHER FINANCING SOURCES (USES): Transfers out - - (107,679) (107,679) Total other financing sources (uses)- - (107,679) (107,679) Net change in fund balance -$ 53,911$ 413,051 359,140$ FUND BALANCE: Beginning of year (53,911) End of year 359,140$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 157 Attachment #2 228 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1983-1 Street Lighting Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 3,720$ 3,720$ 7,101$ 3,381$ Special assessments 321,324 321,324 316,805 (4,519) Total revenues 325,044 325,044 323,906 (1,138) EXPENDITURES: Current: Public works and transportation 221,425 281,425 245,099 36,326 Total expenditures 221,425 281,425 245,099 36,326 REVENUES OVER (UNDER) EXPENDITURES 103,619 43,619 78,807 35,188 Net change in fund balance 103,619$ 43,619$ 78,807 35,188$ FUND BALANCE: Beginning of year 480,904 End of year 559,711$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 158 Attachment #2 229 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1983-2 Stagecoach Landscape Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 2,193$ 2,193$ 3,759$ 1,566$ Special assessments 104,393 104,393 91,263 (13,130) Total revenues 106,586 106,586 95,022 (11,564) EXPENDITURES: Current: Public works and transportation 65,396 65,396 40,536 24,860 Total expenditures 65,396 65,396 40,536 24,860 REVENUES OVER (UNDER) EXPENDITURES 41,190 41,190 54,486 13,296 Net change in fund balance 41,190$ 41,190$ 54,486 13,296$ FUND BALANCE: Beginning of year 254,273 End of year 308,759$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 159 Attachment #2 230 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1986-1 Dougherty Landscape Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 4,529$ 4,529$ 6,242$ 1,713$ Special assessments 140,322 140,322 133,640 (6,682) Total revenues 144,851 144,851 139,882 (4,969) EXPENDITURES: Current: Public works and transportation 130,426 130,626 92,519 38,107 Total expenditures 130,426 130,626 92,519 38,107 REVENUES OVER (UNDER) EXPENDITURES 14,425 14,225 47,363 33,138 Net change in fund balance 14,425$ 14,225$ 47,363 33,138$ FUND BALANCE: Beginning of year 444,769 End of year 492,132$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 160 Attachment #2 231 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1997-1 Santa Rita Landscape Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 9,020$ 9,020$ 14,495$ 5,475$ Special assessments 392,191 392,191 394,249 2,058 Total revenues 401,211 401,211 408,744 7,533 EXPENDITURES: Current: Public works and transportation 353,121 353,321 225,562 127,759 Total expenditures 353,121 353,321 225,562 127,759 REVENUES OVER (UNDER) EXPENDITURES 48,090 47,890 183,182 135,292 Net change in fund balance 48,090$ 47,890$ 183,182 135,292$ FUND BALANCE: Beginning of year 993,237 End of year 1,176,419$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 161 Attachment #2 232 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1999-1 East Dublin Street Lighting Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 11,465$ 11,465$ 15,896$ 4,431$ Special assessments 337,072 337,072 307,566 (29,506) Total revenues 348,537 348,537 323,462 (25,075) EXPENDITURES: Current: Public works and transportation 211,425 281,825 244,969 36,856 Total expenditures 211,425 281,825 244,969 36,856 REVENUES OVER (UNDER) EXPENDITURES 137,112 66,712 78,493 11,781 OTHER FINANCING SOURCES (USES): Transfers out (40,106) (799,595) (2,459) 797,136 Total other financing sources (uses)(40,106) (799,595) (2,459) 797,136 Net change in fund balance 97,006$ (732,883)$ 76,034 808,917$ FUND BALANCE: Beginning of year 1,129,630 End of year 1,205,664$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 162 Attachment #2 233 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Dublin Crossing Community Facilities District No. 2017-1 Special Revenue Fund Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Interest 396$ 396$ 2,773$ 2,377$ Special assessments 115,000 115,000 96,476 (18,524) Total revenues 115,396 115,396 99,249 (16,147) EXPENDITURES: Current: Public works and transportation 16,924 21,924 8,800 13,124 Capital outlay: Streets 7,784 7,784 - 7,784 Total expenditures 24,708 29,708 8,800 20,908 REVENUES OVER (UNDER) EXPENDITURES 90,688 85,688 90,449 4,761 Net change in fund balance 90,688$ 85,688$ 90,449 4,761$ FUND BALANCE: Beginning of year 166,896 End of year 257,345$ City of Dublin For the year ended June 30, 2021 Budgeted Amounts 163 Attachment #2 234 This page intentionally left blank 164 Attachment #2 235 INTERNAL SERVICE FUNDS Vehicle Replacement this fund is an interest bearing Internal Service Fund established to finance necessary vehicle replacements. Building Replacement this fund is an interest bearing Internal Service Fund established to finance future major building component repair expenditures. Equipment Replacement this fund is an interest bearing Internal Service fund established to finance necessary equipment replacements. Retiree Health Care this fund is an interest bearing Internal Service Fund established to account for the contribution made to the California Employers' Retiree Benefit Trust Fund for future retiree health care benefits. Information Technology accounts for all information and technology costs, including staffing. 165 Attachment #2 236 City of Dublin Combining Statement of Net Position Internal Service Funds June 30, 2021 Vehicle Building Equipment Replacement Replacement Replacement ASSETS Current assets: Cash and investments 2,180,742$ 8,763,879$ 6,856,559$ Accounts receivable - - - Prepaids and other - - - Total current assets 2,180,742 8,763,879 6,856,559 Noncurrent assets: Capital Assets: Land - 10,774,792 - Construction in progress - 5,815,642 659,563 Infrastructure - 622,831 122,183 Building and improvements - 63,177,051 - Vehicles and equipment 5,377,812 - 1,727,512 Less accumulated depreciation (3,572,814) (42,565,631) (950,357) Net capital assets 1,804,998 37,824,685 1,558,901 Total assets 3,985,740 46,588,564 8,415,460 LIABILITIES Current liabilities: Accounts payable and accruals 18,389 - - Due to other funds - - - Total current liabilities 18,389 - - Total liabilities 18,389 - - NET POSITION (DEFICIT) Net investment in capital assets 1,804,998 37,824,685 1,558,901 Unrestricted 2,162,353 8,763,879 6,856,559 Total net position (deficit)3,967,351$ 46,588,564$ 8,415,460$ 166 Attachment #2 237 Retiree Information Health Care Technology Total -$ 1,310,886$ 19,112,066$ 7,127 - 7,127 53,211 182,296 235,507 60,338 1,493,182 19,354,700 - - 10,774,792 - 724,531 7,199,736 - - 745,014 - 42,732 63,219,783 - 46,084 7,151,408 - (32,447) (47,121,249) - 780,900 41,969,484 60,338 2,274,082 61,324,184 (11,719) 67,376 74,046 34,258 - 34,258 22,539 67,376 108,304 22,539 67,376 108,304 - 780,900 41,969,484 37,799 1,425,806 19,246,396 37,799$ 2,206,706$ 61,215,880$ 167 Attachment #2 238 City of Dublin Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the year ended June 30, 2021 Vehicle Building Equipment Replacement Replacement Replacement OPERATING REVENUES: Charges for services 673,250$ 216,237$ 1,006,158$ Other revenue 27,158 - - Total operating revenues 700,408 216,237 1,006,158 OPERATING EXPENSES: Supplies and services 2,018,634 (2,482,521) (426,467) Retiree health premiums - - - Depreciation 289,676 2,141,085 150,445 Total operating expenses 2,308,310 (341,436) (276,022) OPERATING INCOME (LOSS)(1,607,902) 557,673 1,282,180 NONOPERATING REVENUES (EXPENSES): Interest income 29,687 127,379 93,808 Total nonoperating revenues (expenses)29,687 127,379 93,808 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS:(1,578,215) 685,052 1,375,988 Transfers in - 1,000,000 - Transfers (out)- (2,482,521) (607,999) Total transfers - (1,482,521) (607,999) Change in net position (1,578,215) (797,469) 767,989 NET POSITION (DEFICIT): Beginning of year 5,545,566 47,386,033 7,647,471 End of year 3,967,351$ 46,588,564$ 8,415,460$ 168 Attachment #2 239 Retiree Information Health Care Technology Total 216,587$ 2,015,545$ 4,127,777$ 860,790 - 887,948 1,077,377 2,015,545 5,015,725 - 1,725,769 835,415 1,077,376 - 1,077,376 - 10,260 2,591,466 1,077,376 1,736,029 4,504,257 1 279,516 511,468 942 13,721 265,537 942 13,721 265,537 943 293,237 777,005 - - 1,000,000 - (6,969) (3,097,489) - (6,969) (2,097,489) 943 286,268 (1,320,484) 36,856 1,920,438 62,536,364 37,799$ 2,206,706$ 61,215,880$ 169 Attachment #2 240 City of Dublin Combining Statement of Cash Flows Internal Service Funds For the year ended June 30, 2021 Vehicle Building Equipment Replacement Replacement Replacement CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers 673,250$ 216,237$ 1,006,158$ Payments to suppliers and service providers (2,011,900)2,482,521 402,910 Other revenues 27,158 -- Net cash provided by (used in) operating activities (1,311,492) 2,698,758 1,409,068 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash receipts from other funds -1,000,000 - Cash disbursements to other funds - (2,482,521) (607,999) Net cash provided by (used in) noncapital financing activities - (1,482,521) (607,999) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of capital assets (97,361)(2,482,521)(697,809) Net cash used in capital and related financing activities (97,361) (2,482,521) (697,809) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 29,687 127,379 93,808 Net cash provided by investing activities 29,687 127,379 93,808 Net Cash Flows (1,379,166)(1,138,905)197,068 CASH AND CASH EQUIVALENTS - Beginning of year 3,559,908 9,902,784 6,659,491 CASH AND CASH EQUIVALENTS - End of year 2,180,742$ 8,763,879$ 6,856,559$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss)(1,607,902)$ 557,673$ 1,282,180$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 289,676 2,141,085 150,445 Change in assets and liabilities Prepaids --- Accounts payable and accruals 6,734 -(23,557) Net cash provided by (used in) operating activities (1,311,492)$ 2,698,758$ 1,409,068$ 170 Attachment #2 241 Retiree Information Health Care Technology Total 209,460$ 2,015,545$ 4,120,650$ (1,091,151)(1,647,840)(1,865,460) 860,790 -887,948 (20,901) 367,705 3,143,138 --1,000,000 19,959 (6,969) (3,077,530) 19,959 (6,969) (2,077,530) -(6,969)(3,284,660) - (6,969) (3,284,660) 942 13,721 265,537 942 13,721 265,537 - 367,488 (1,953,515) -943,398 21,065,581 -$ 1,310,886$ 19,112,066$ 1$ 279,516$ 511,468$ - 10,260 2,591,466 (13,775)70,699 56,924 -7,230(9,593) (20,901)$ 367,705$ 3,143,138$ 171 Attachment #2 242 This page intentionally left blank 172 Attachment #2 243 CUSTODIAL FUNDS Fallon Village Geologic Hazard abatement District this assessment district was established in 2007, in accordance with a condition of approval for the Fallon Village development project. The District was formed to provide a mechanism for ongoing maintenance on open space areas within the development. The boundary of this assessment district encompasses approximately 175 acres of land, located generally east of Fallon Road. Schaefer Ranch Geologic Hazardous Abatement District this assessment district was established in 2006, in accordance with a condition of approval for the Fallon Village development project. The District was formed to provide a mechanism for ongoing maintenance of open space areas within the development. The boundary of this assessment district encompasses approximately 500 acres of land, located at the westerly boundary of the City limits north of interstate 580, and south of the unincorporated area of Alameda County. Fallon Crossing (North Tassajara) Geologic Hazard Abatement District this assessment district was established to account for the maintenance of open space areas in accordance with a condition of approval for the fallon Crossings development project. The boundary of the District encompasses 68 acres of land located on the northeast side of Tassajara Road, about 2 1/4 Miles north of Interstate Highway 580, Tassajara Road and Moller Creek, a tributary of Tassajara Creek, border the western and northeastern limits of the site. Dublin Crossing Community Facilities District (CFD) No. 2015-1 (Dublin Crossing) Fund is used to account for bond issuances to finance capital facilities and infrastructure within the CFD secured by the collection of Special Taxes on real property within the CFD. The Agency Fund is custodial in nature (assets equal liabilities) and therefore does not involve measurement of results of operations. CFD bonds are not debt obligations of the City. Dublin Boulevard Extension Assessment District to account form the special assessment established to fund the improvements to Dublin Boulevard. Geologic Hazard Abatement Districts two districts were formed under provisions in the California Public Code, Which establishes in section 25670 that a district is a political subdivision of the State and is not an agency or instrumentality of a local agency. The City acts as a trustee of the funds collected and may contractually provide or arrange for services paid for by the District. Fiscal Year 2008-2009 was the first year that tax roll assessments were levied by the Districts. 173 Attachment #2 244 This page intentionally left blank 174 Attachment #2 245 City of Dublin Combining Statement of Fiduciary Net Position Custodial Funds June 30, 2021 Dublin Boulevard Fallon Community Extension Crossing Facilities Total Assessment Fallon Schnaefer (North District Custodial District Village Ranch Tassajara) No. 2015-1 Funds ASSETS Cash and investments 9,309$ 7,004,084$ 5,388,647$ 1,715,856$ 13,473,916$ 27,591,812$ Accounts receivable - 5,556 2,221 5,125 17,906 30,808 Total assets 9,309 7,009,640 5,390,868 1,720,981 13,491,822 27,622,620 LIABILITIES Accounts payable - 31,849 18,974 1,172 390,551 442,546 Total liabilities - 31,849 18,974 1,172 390,551 442,546 NET POSITION Restricted for: Individuals, organizations, and other governments 9,309 6,977,791 5,371,894 1,719,809 13,101,271 27,180,074 Total net position 9,309$ 6,977,791$ 5,371,894$ 1,719,809$ 13,101,271$ 27,180,074$ Geologic Hazard Abatement Districts 175 Attachment #2 246 City of Dublin Combining Statement of Changes in Fiduciary Net Position Custodial Funds For the year ended June 30, 2021 Dublin Boulevard Fallon Community Extension Crossing Facilities Total Assessment Fallon Schnaefer (North District Custodial District Village Ranch Tassajara) No. 2015-1 Funds ADDITIONS: Special assessments -$ 1,114,938$ 542,190$ 567,768$ 4,264,119$ 6,489,015$ Investment income 125 88,381 69,151 19,362 1,056 178,075 Property tax distribution - 5,167 1,615 1,667 8,605 17,054 Total additions 125 1,208,486 612,956 588,797 4,273,780 6,684,144 DEDUCTIONS: Administration - - - - 17,334,491 17,334,491 Project payments - 356,266 102,674 46,314 - 505,254 Payments of bonds premium - - - - 130,000 130,000 Interest expense - - - - 3,509,349 3,509,349 Total deductions - 356,266 102,674 46,314 20,973,840 21,479,094 Change in net position 125 852,220 510,282 542,483 (16,700,060) (14,794,950) NET POSITION: Beginning of year - - - - - - Restatements 9,184 6,125,571 4,861,612 1,177,326 29,801,331 41,975,024 Beginning of year, as restated 9,184 6,125,571 4,861,612 1,177,326 29,801,331 41,975,024 End of year 9,309$ 6,977,791$ 5,371,894$ 1,719,809$ 13,101,271$ 27,180,074$ Geologic Hazard Abatement Districts 176 Attachment #2 247 Index Financial Trends Revenue Capacity Debt Capacity Demographic and Economic Information Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs. STATISTICAL SECTION This part of the City of Dublin’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax. These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability issues additional debt in the future. These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place. 177 Attachment #2 248 2012 2013 2014 2015 Governmental Activities Net Investment in Capital Assets 433,548,888$ 432,722,323$ 445,529,366$ 444,832,546$ Restricted 36,714,724 52,548,095 60,808,540 74,738,217 Unrestricted 86,063,259 99,084,771 97,918,858 107,176,361 Total Primary Government 556,326,871$ 584,355,189$ 604,256,764$ 626,747,124$ Source: City of Dublin Administrative Services Department CITY OF DUBLIN, CALIFORNIA Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 178 Attachment #2 249 2016 2017 2018 2019 2020 2021 460,963,292$ 487,123,214$ 501,516,781$ 531,251,006$ 539,809,963$ 537,970,764$ 97,592,438 94,745,655 107,452,493 105,409,183 109,947,040 107,140,245 111,725,077 120,464,219 141,008,993 177,705,220 193,382,816 211,211,541 670,280,807$ 702,333,088$ 749,978,267$ 814,365,409$ 843,139,819$ 856,322,550$ Fiscal Year 179 Attachment #2 250 Expenses 2012 2013 2014 2015 Governmental Activities General government $ 10,116,219 $ 10,265,476 $ 17,492,272 $ 11,296,896 Police 15,534,458 15,572,023 16,108,027 15,325,113 Fire 11,246,825 11,274,022 11,662,084 12,198,769 Public works 6,855,421 10,995,138 8,363,186 15,336,225 Parks and community services 9,804,128 10,772,868 9,018,161 12,149,716 Community development 6,089,415 9,979,877 9,169,788 5,713,196 Interest on long-term debt 172,949 156,897 Total Governmental Activities Expenses 59,646,466 68,859,404 71,986,467 72,176,812 Program Revenues Governmental Activities Charges for Services General government $140,418 $ 142,353 $ 153,544 $ 5,777,971 Police 181,161 423,660 369,385 399,802 Fire 880,191 2,058,400 1,794,700 1,746,581 Public works 3,801,885 3,892,845 4,116,145 2,987,235 Parks and community services 1,909,812 2,463,146 2,753,911 3,009,383 Community development 9,051,970 9,540,241 10,393,367 7,657,467 Operating Contributions and Grants 1,008,318 1,135,050 1,674,815 955,677 Capital Contributions and Grants 23,668,070 28,689,753 20,914,994 21,931,981 Total Governmental Activities Program Revenues 40,641,825 48,345,448 42,170,861 44,466,097 Net (Expense)/Revenue Governmental Activities $ (19,004,641) $ (20,513,956) $ (29,815,606) $ (27,710,715) General Revenues and Other Changes in Net Position Governmental Activities Taxes Property taxes 21,356,506 22,646,498 24,274,856 29,437,951 Special assessment taxes 889,854 943,604 1,011,452 1,264,204 Sales tax 14,996,932 15,359,340 17,833,314 19,211,823 Other taxes 4,295,675 5,054,257 5,427,627 6,159,654 Investment Income, Unrestricted 865,719 (399,590) 853,147 592,881 Other General Revenues 1,389,349 4,938,165 316,785 429,328 Total Governmental Activities 43,794,035 48,542,274 49,717,181 57,095,841 Change in Net Position Governmental Activities $ 24,789,394 $ 28,028,318 $ 19,901,575 $ 29,385,126 Source: City of Dublin Administrative Services Department CITY OF DUBLIN, CALIFORNIA Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 180 Attachment #2 251 2016 2017 2018 2019 2020 2021 $ 19,689,049 $ 14,276,843 $ 16,803,802 $ 15,387,028 $ 24,851,393 $ 23,710,251 18,316,420 17,080,942 19,423,830 21,814,982 22,483,378 24,681,714 14,725,476 13,687,195 13,315,788 14,152,331 14,122,166 15,227,074 13,883,008 18,351,543 17,147,611 24,131,711 21,103,350 23,769,070 14,625,459 11,193,876 15,640,280 12,750,878 10,548,537 9,327,718 11,410,946 14,249,950 7,074,630 5,606,118 5,406,572 11,384,023 147,195 136,867 125,881 92,797,553 88,977,216 89,531,822 93,843,048 98,515,396 108,099,850 $5,209,378 $ 5,402,925 $ 6,060,099 $ 6,520,152 $ 7,507,286 $ 9,113,104 362,054 322,231 335,929 330,280 244,363 214,223 1,633,056 1,426,973 1,551,899 1,708,807 1,603,243 2,103,228 2,698,767 3,386,621 3,517,700 3,132,543 2,471,032 2,453,787 2,931,553 2,950,625 4,638,050 5,287,193 3,237,611 1,388,778 13,217,027 9,334,477 10,139,788 7,742,076 4,402,789 5,182,639 1,629,137 8,008,289 12,577,699 7,633,916 4,940,586 5,545,115 38,433,119 21,133,748 23,438,110 34,517,687 9,192,691 5,674,477 66,114,091 51,965,889 62,259,274 66,872,654 33,599,601 31,675,351 $(26,683,462) $ (37,011,327) $ (27,272,548) $ (26,970,394) $ (64,915,795) $ (76,424,499) 33,598,601 36,964,785 40,628,040 44,293,602 49,086,335 53,007,086 1,359,212 1,416,721 1,472,933 1,469,840 1,523,257 1,550,479 22,070,547 21,186,333 21,134,636 26,297,803 22,506,975 26,289,165 6,606,016 6,834,545 43,787 8,223,510 7,280,323 7,185,319 2,937,999 (710,595) (558,269) 8,589,252 10,485,543 (975,548) 3,644,670 3,371,819 3,335,600 2,483,530 2,276,391 2,550,729 70,217,045 69,063,608 66,056,727 91,357,537 93,158,824 89,607,230 $ 43,533,583 $ 32,052,281 $ 38,784,179 $ 64,387,143 $ 28,243,029 $ 13,182,731 Fiscal Year 181 Attachment #2 252 2012 2013 2014 2015 General Fund Unreserved, designated for: Capital Improvements Projects Carryover $ 43,787 Unreserved, undesignated: Non-Spendable $ 3,433,886 $ 2,836,130 2,465,678 $ 1,475,691 Restricted 500,000 500,000 500,000 Committed 24,176,650 36,020,171 34,124,267 38,531,179 Assigned 22,080,677 23,912,896 29,259,333 35,875,264 Unassigned 15,072,535 14,047,932 13,228,484 21,324,360 Total General Fund 64,763,748 77,317,129 79,621,549 97,706,494 All Other Governmental Funds Non-Spendable Restricted $ 38,073,638 $ 53,646,702 $ 61,710,448 $ 75,646,848 Committed Assigned Unassigned (1,358,914) (1,098,607) (923,409) (930,131) Total All Other Governmental Funds 36,714,724 52,548,095 60,787,039 74,716,717 Total Governmental Funds $101,478,472$129,865,224$ 140,408,588 $ 172,423,211 Source: City of Dublin Administrative Services Department CITY OF DUBLIN, CALIFORNIA Fund Balances of Governmental Funds Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 182 Attachment #2 253 2016 2017 2018 2019 2020 2021 $729,883 $ 198,878 $ 7,391 $ 12,818 $ 13,061 $ 13,266 579,000 1,762,000 1,938,000 1,938,000 1,938,000 4,493,314 38,928,755 36,213,714 43,740,492 47,267,326 57,828,475 70,694,542 39,078,695 50,126,807 57,267,840 60,771,810 64,004,658 66,743,519 29,867,693 34,114,263 39,158,943 61,235,819 66,865,027 67,819,855 109,184,026 122,415,662 142,112,666 171,225,773 190,649,221 209,764,496 $650 $ 25,000 $ 84,453,929 $ 82,686,743 105,476,681 $ 107,090,763 104,872,535 $ 102,613,783 13,138,509 11,808,233 (1,998,366) (3,737,589) (3,522,706) (326,876) 97,592,438 94,494,976 103,478,965 103,353,174 101,374,829 102,286,907 $206,776,464$216,910,638$245,591,631$274,578,947$292,024,050$312,051,403 Fiscal Year 183 Attachment #2 254 Revenues 2012 2013 2014 2015 Property taxes $ 22,398,847 $ 23,742,336 $ 25,448,254 $ 29,437,951 Taxes other than property 19,761,015 20,915,025 23,769,133 25,371,476 Intergovernmental 3,962,572 4,534,748 2,574,159 3,245,822 Licenses and permits*224,086 258,782 293,941 301,072 Charges for services 10,331,501 11,979,079 12,326,848 13,737,934 Investment income 1,068,138 (185,467) 1,101,634 1,071,936 Use of property 659,857 580,507 1,591,784 2,352,810 Fines and forteitures 284,993 326,027 323,601 320,629 Development fees*20,163,919 24,413,988 21,358,140 24,276,317 Special assessments 944,455 980,775 1,025,239 1,264,201 Other revernues 4,588,822 9,232,055 2,762,970 3,499,480 Total Revenues 84,388,205 96,777,855 92,575,703 104,879,628 Expenditures Current: General government 7,001,850 7,600,102 8,411,507 11,471,412 Police 15,516,388 15,719,694 16,155,083 15,697,432 Fire 10,782,574 10,923,855 11,226,414 11,930,245 Public works 7,190,536 7,246,097 7,422,110 8,481,686 Parks and community services 8,248,229 8,919,816 9,349,729 9,731,003 Community development 7,362,732 8,586,129 9,102,734 6,059,180 Capital Outlay: General 6,641,674 8,866,096 13,316,472 1,241,494 Community improvements 213,777 81,234 21,497 68,190 Parks 996,669 2,324,586 9,451,657 4,742,328 Streets 2,959,555 4,946,527 2,403,926 3,568,142 Debt Service: Principal Total Expenditures 66,913,984 75,214,136 86,861,129 72,991,112 Excess of Revenues Over (Under) Expenditures 17,474,221 21,563,719 5,714,574 31,888,516 Other Financing Sources (Uses) Proceeds from Debt Transfers In 10,898,009 16,338,838 25,192,268 9,625,456 Transfers Out (10,754,898) (9,515,805) (20,385,523) (9,455,561) Total Other Financing Sources (Uses) 143,111 6,823,033 4,806,745 169,895 Net Change in Fund Balances $ 17,617,332 $ 28,386,752 $ 10,521,319 $ 32,058,411 Debt Service as percentage of non-capital expenditures 0.0% 0.0% 0.0% 0.0% * Some of permits revenue has been considered to be an integral part of development revenue and therefore has been reclassed to development revenue effective in fiscal year 20/21. Source: City of Dublin Administrative Services Department CITY OF DUBLIN, CALIFORNIA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 184 Attachment #2 255 2016 2017 2018 2019 2020 2021 $ 33,598,601 $ 36,964,784 $ 40,628,040 $ 44,293,602 $ 49,086,335 $ 53,007,086 28,676,662 28,020,877 27,089,866 32,949,484 28,312,778 31,826,343 3,303,521 9,352,861 12,415,367 8,961,332 7,411,403 10,805,708 314,206 318,981 318,400 291,788 236,972 334,852 13,846,381 14,185,768 17,859,770 16,786,806 14,433,980 11,934,020 3,689,940 168,792 666,808 10,345,636 12,006,831 183,258 6,751,864 1,539,669 1,669,841 1,519,342 1,381,729 1,208,739 290,871 260,220 275,665 265,971 196,840 177,477 43,038,360 26,866,804 24,465,477 21,426,005 10,178,191 10,891,389 1,359,214 1,416,721 1,472,932 1,469,839 1,523,256 1,550,480 1,351,331 1,763,454 7,363,700 4,963,646 1,675,842 2,124,277 136,220,951 120,858,931 134,225,866 143,273,451 126,444,157 124,043,629 20,715,735 13,313,517 14,020,898 14,894,745 23,151,872 22,104,295 17,886,990 17,183,853 19,355,889 21,983,278 22,177,174 23,755,356 12,265,614 13,442,239 13,431,891 14,269,535 14,244,913 14,760,311 8,616,323 13,433,983 10,718,547 14,708,764 13,821,133 14,105,010 10,791,185 8,934,718 13,585,706 9,708,040 7,228,275 6,085,251 11,348,674 11,652,735 6,700,773 5,543,073 4,989,648 10,033,900 666,478 1,922,766 2,380,766 11,240,369 9,828,253 6,614,602 117,104 3,854 76,795 23,469,847 26,113,810 10,606,254 1,081,809 6,180,120 4,170,540 3,652,808 10,516,675 12,832,455 14,666,554 5,488,030 3,116,314 1,345,484 1,368,186 1,368,186 1,368,186 109,530,758 116,518,150 105,055,458 109,464,353 108,477,604 106,113,765 26,690,193 4,340,781 29,170,408 33,809,098 17,966,553 17,929,864 5,450,042 27,912,037 38,313,026 24,363,489 27,100,426 21,651,510 14,046,539 (29,903,351) (37,969,675) (24,852,904) (31,922,207) (22,172,960) (11,949,050) (1,991,314) 5,793,393 (489,415) (4,821,781) (521,450) 2,097,489 $ 24,698,879 $ 10,134,174 $ 28,680,993 $ 28,987,317 $ 17,445,103 $ 20,027,353 0.0%0.0%1.7%1.7%1.6%1.3% Fiscal Year 185 Attachment #2 256 Fiscal City Wide Year Real Property Net Taxable Average Ended Residential Commercial Industrial Unsecured/ Less: Assessed Total Direct June 30 Property Property Property Other Property Exemptions Value Tax Rate 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 0.2386% 2014 7,135,260,308 1,336,760,537 246,334,563 1,035,990,618 (172,869,596) 9,581,476,430 0.2380% 2015 8,431,051,125 1,391,578,857 274,410,187 1,138,571,747 (185,639,690) 11,049,972,226 0.2373% 2016 9,662,162,719 1,481,865,501 277,588,684 1,261,568,728 (152,705,687) 12,530,479,945 0.2367% 2017 10,563,641,612 1,572,348,815 276,986,936 1,412,347,150 (151,208,054) 13,674,116,459 0.2365% 2018 11,483,621,200 1,634,851,757 279,900,741 1,494,613,752 (91,891,868) 14,801,095,582 0.2364% 2019 12,705,642,088 1,713,788,644 284,936,683 1,623,924,258 (181,733,659) 16,146,558,014 0.2363% 2020 14,169,003,039 1,819,769,185 302,957,585 1,719,280,594 (181,569,809) 17,829,440,594 0.2360% 2021 15,481,016,928 2,109,649,340 303,634,663 1,516,019,943 (240,382,905) 19,169,937,969 0.2359% 116,410,913 5,205,377 Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls, 2011/12 through 2020/21 Note: Actual property value data not available in California. (1) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount by an annual calculation, to all the taxing entities within a tax rate area. (2) The City-wide Direct Tax Rate is an average, the actual tax rate for each property varies according to its tax rate area. This average tax rate is net of State Shifts of local property tax revenue to Education and net of Admin fees. CITY OF DUBLIN, CALIFORNIA Assessed Value of Taxable Property Last Ten Fiscal Years 186 Attachment #2 257 This page intentionally left blank 187 Attachment #2 258 City Direct Rates Bay Area Castro Valley Chabot-Las Positas Dublin East Bay Fiscal Basic Total Rapid Unified Community Unified Regional Year Levy Direct Transit School Bonds College Boards Bonds 1A & B Park 2011-12 1.00000 0.23860 0.00310 0.10040 0.02110 0.10110 0.00840 2012-13 1.00000 0.23860 0.00410 0.09890 0.02140 0.09700 0.00710 2013-14 1.00000 0.23796 0.00430 0.09240 0.02190 0.09930 0.00510 2014-15 1.00000 0.23730 0.00750 0.08510 0.02140 0.11470 0.00780 2015-16 1.00000 0.23669 0.00450 0.08520 0.02170 0.10770 0.00850 2016-17 1.00000 0.23650 0.00260 0.00000 0.01980 0.07670 0.00670 2017-18 1.00000 0.23644 0.00800 0.00000 0.02460 0.09720 0.00320 2018-19 1.00000 0.23632 0.00700 0.00000 0.04430 0.14520 0.00570 2019-20 1.00000 0.23603 0.01200 0.00000 0.04220 0.14600 0.00600 2020-21 1.00000 0.23593 0.01390 0.00000 0.02140 0.14240 0.00140 Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls, 2011/12 through 2020/21 (1) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners. These are voter approved levies in addition to the 1% State levy. (2) The City's share of the 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Overlapping Rates (1) CITY OF DUBLIN, CALIFORNIA Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate per $100 of assessed value) 188 Attachment #2 259 Flood Zone 7 Livermore Valley Total City's Share State Water Joint Unified County Wide Direct & Overlapping of 1% Levy per Bonds School Board Go Bond Tax Rate Proposition 13 0.02500 0.06350 0.00000 1.32260 0.2818 0.03070 0.06270 0.00000 1.32190 0.2818 0.02280 0.06070 0.00000 1.30650 0.2818 0.02570 0.05960 0.00000 1.32180 0.2818 0.02500 0.04970 0.00000 1.30230 0.2817 0.03430 0.00000 0.00000 1.14010 0.2818 0.03330 0.00000 0.00000 1.16630 0.2818 0.03320 0.00000 0.01120 1.24660 0.2818 0.03090 0.00000 0.01080 1.24790 0.2818 0.03090 0.00000 0.00360 1.21360 0.2818 189 Attachment #2 260 2020-21 2011-12 Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Kaiser 340,534,140 1 1.77% Avalon at Dublin Station II, LP 175,071,491 2 0.91% Dublin Crossing LLC 152,357,594 3 0.79% GH Pacvest LLC 142,220,900 4 0.74% 4800 Tassajara Road Apts Invest LLC 126,902,134 5 0.66% Dublin Station Owner LLC 121,632,538 6 0.63% Ross Dress for Less 119,603,026 7 0.62% Dublin Corporate Center Owner LLC 115,715,243 8 0.60% Essex Dublin Owner, LP 109,635,894 9 0.57% Oak Cottonwood 2017 LLC 102,749,292 10 0.53% Trust NOIP Dublin, LP $ 146,201,800 1 1.75% Holding Company 106,449,062 2 1.27% Avalon at Dublin Station II, LP 85,502,183 3 1.02% Corporate Center II, LP 85,500,000 4 1.02% 4800 Tassajara Road Apts Invest LLC 80,897,916 5 0.97% Barath Koneti 74,336,735 6 0.89% BIT Holding Sixty-Three, Inc 71,744,041 7 0.86% Ross Dress for Less 67,681,230 8 0.81% Island Properties I 66,428,352 9 0.79% Tishman Speyer Archstone Smith 66,377,136 10 0.79% Subtotal $ 1,506,422,252 7.82% $ 851,118,455 10.17% Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls CITY OF DUBLIN, CALIFORNIA Principal Property Tax Payers Current year and Nine Years Ago 190 Attachment #2 261 CITY OF DUBLIN, CALIFORNIA Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Year Current Percent Delinquent Total Ended Total Tax of Levy Tax Tax Percent June 30 Tax Levy Collections Collected Collections Collections of Levy 2012 23,566,230$ 22,761,802$ 96.59% 432,891$ 23,194,693$ 98.42% 2013 24,769,806 23,997,036 96.88% 527,988 24,525,024 99.01% 2014 27,001,559 26,200,578 97.03% 432,070 26,632,648 98.63% 2015 31,129,982 30,434,412 97.77% 412,643 30,847,054 99.09% 2016 35,304,627 34,734,843 98.39% 357,472 35,092,315 99.40% 2017 38,529,558 38,100,547 98.89% 335,955 38,436,502 99.76% 2018 41,708,007 41,594,518 99.73% 362,487 41,957,005 100.60% 2019 45,499,386 45,357,078 99.69% 330,947 45,688,025 100.41% 2020 50,245,147 50,102,147 99.72% 379,250 50,481,396 100.47% 2021 54,024,719 53,621,996 99.25% 520,190 54,142,186 100.22% Source: Alameda County Assessor Office 191 Attachment #2 262 Total Property Tax Assessed Value of Taxable Property Estimated Outstanding Percentage Share of Debt Applicable to Overlapping 6/30/2021 City of Dublin (1)Debt OVERLAPPING TAX AND ASSESSMENT DEBT: Alameda County 191,300,000$ 5.806% 11,106,878$ Bay Area Rapid Transit District 1,871,890,000 2.247% 42,061,368 Chabot-Las Positas Community College District 593,290,000 13.697% 81,262,931 Dublin Joint Unified School District 541,658,268 99.981% 541,555,353 East Bay Regional Park District 133,170,000 3.532% 4,703,564 City of Dublin Community Facilities District No. 2015-1 70,265,000 100.00% 70,265,000 California Statewide Communities Development Authority 1915 Act Bonds 829,151 100.00% 829,151 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 751,784,245$ DIRECT AND OVERLAPPING GENERAL FUND DEBT Alameda County General Fund Obligations 790,122,500 5.806% 45,874,512 Alameda-Contra Costa Transit District Certificates of Participation 11,655,000 0.180% 20,979 City of Dublin Loans Payable - 100.00%- TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 45,895,491$ TOTAL DIRECT DEBT -$ TOTAL OVERLAPPING DEBT 797,679,736$ COMBINED TOTAL DEBT (2)797,679,736$ RATIOS TO ASSESSED VALUATION: 3.91% 0.00% 4.14% Source: California Municipal Statistics, Inc. Notes: (1) The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Total Direct Debt…............................................................ Total Overlapping Tax and Assessment Debt..................... Combined Total Debt…...................................................... CITY OF DUBLIN, CALIFORNIA Direct and Overlapping Debt June 30, 2021 192 Attachment #2 263 This page intentionally left blank 193 Attachment #2 264 2011-2012 2012-13 2013-14 2014-15 Debt limit 318,144,981$ 333,865,688$ 361,622,926$ 416,774,836$ Total net debt applicable to limit - - - - Legal debt margin 318,144,981$ 333,865,688$ 361,622,926$ 416,774,836$ Total net debt applicable to the limit as a percentage of debt limit 0.0%0.0%0.0%0.0% (1) Source: City of Dublin Administrative Services Department (3) The government code provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel in now assessed at 100% of market value (as of the most recent change in ownership parcel) in ownership for that parcel. The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. Fiscal Year (2) The legal debt margin for the City of Dublin, California, is calculated using a debt limit of 15 percent of the assessed value of property within the City limits. (Gov Code of State of California) CITY OF DUBLIN, CALIFORNIA Legal Debt Margin Information Last Ten Fiscal Years 194 Attachment #2 265 Legal Debt Margin Calculation for Fiscal Year 2020-21 Assessed value (net) - June 30, 2021 (1) $ 19,169,937,969 Debt limit: 15% of assessed value 2,875,490,695 Less total bonded debt, general obligation - Legal debt margin (2) $ 2,875,490,695 Conversion Percentage for Calculation of Debt Limit (3)25% $718,872,674 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 469,892,998$ 512,779,367$ 555,041,084$ 605,495,926$ 668,604,022$ 718,872,674$ - - - - - - 469,892,998$ 512,779,367$ 555,041,084$ 605,495,926$ 668,604,022$ 718,872,674$ 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Fiscal Year 195 Attachment #2 266 CITY OF DUBLIN, CALIFORNIA Demographic And Economic Statistics Last Ten Calendar Years (Dollars in Thousands) Personal Per Capita Rank in Size Fiscal City Income, in Personal Unemployment of Year Population (1) thousands (1) Income (1) Rate (2) California Cities (3) 2011 46,785 1,677,944$ 35,865$ 6.3%182 2012 49,890 1,819,688 36,474 4.2%175 2013 53,462 2,321,908 43,431 3.5%181 2014 54,695 2,333,289 42,660 3.6%185 2015 57,349 2,562,296 44,679 2.9%156 2016 59,686 2,836,816 47,529 2.7%153 2017 60,939 3,101,125 50,889 2.8%153 2018 63,445 3,441,955 54,251 2.7%147 2019 64,826 3,789,339 58,454 2.5%140 2020 72,589 4,464,441 61,503 6.6%140 Sources: (1) US Census Buraeu, most recent estimates July 1, 2020 (2) State of California, Employment Development Department March 2020 Benchmark (3) State of California, Department of Finance - California Cities Ranked by 1/1/2021 Total Population 196 Attachment #2 267 Total Number of Commercial Residential Fiscal Year Ended Building Permits Construction Value Construction Value 30-Jun Issued (1)(1)(1)Bank Deposits (2) 2012 2,110 28,775,536$ 344,927,791$ N/A 2013 2,425 21,139,964 386,984,935 N/A 2014 2,443 57,812,261 322,511,777 N/A 2015 2,068 60,793,275 295,988,465 N/A 2016 2,812 102,148,173 323,747,409 N/A 2017 2,806 177,500,725 308,916,668 N/A 2018 2,803 54,086,352 383,817,023 N/A 2019 - 119,498,163 272,846,465 N/A 2020 1,866 45,031,310 157,262,586 N/A 2021 2,393 42,330,706 177,291,325 N/A Source: 1) City of Dublin Community Development Department Property Value, Construction, and Bank Deposits Last Ten Fiscal Years CITY OF DUBLIN, CALIFORNIA 197 Attachment #2 268 Estimated Estimated Estimated Estimated Number of Number of Number of Number of Employer Employees Rank Employees Rank Employees Rank Employees Rank United States Government & Federal Correction Institute 2,100 1 2,100 1 2,100 1 2,100 1 County of Alameda 465 6 465 5 465 6 465 6 SAP (Formerly: Sybase Corporation)725 3 604 3 604 4 604 4 Ross Stores Headquarters - NA - NA 1,200 2 1,200 2 Dublin Unified School District 675 4 755 2 733 3 1,117 3 Zeiss Meditec 973 2 535 4 535 5 535 5 Callidus Cloud - NA - NA N/A N/A 350 8 Micro Dental Laboratories 550 5 242 8 242 8 - NA Kaiser Permanente - NA - NA - NA - NA Patelco Credit Union - NA - NA - NA - NA TriNet -NA -NA -NA -NA Target Stores - NA - NA 412 7 388 7 De Silva Gates Construction - NA - NA N/A N/A 300 9 City of Dublin 205 9 208 9 221 10 N/A N/A Whole Foods - NA - NA - NA - NA Safeway 400 7 284 7 284 9 284 10 Taleo 250 8 - NA - NA - NA Franklin Templeton Investments 200 10 200 10 - NA - NA Subtotal 6,543 5,393 6,796 7,343 Total City Day Population Source: City of Dublin Office of Economic Development 2015201420132012 CITY OF DUBLIN, CALIFORNIA Principal Employers Current Year and Prior Year (Dollars in thousands) 198 Attachment #2 269 Estimated Estimated Estimated Estimated Number of Number of Number of Number of Employer Employees Rank Employees Rank Employees Rank Employees Rank United States Government & Federal Correction Institute 2,100 1 2,100 1 2,100 1 1,450 1 County of Alameda 325 6 860 3 870 4 975 4 SAP (Formerly: Sybase Corporation)700 3 - NA - NA - NA Ross Stores Headquarters 500 4 800 4 950 3 1,100 2 Dublin Unified School District 915 2 975 2 1,007 2 1,096 3 Zeiss Meditec 500 4 481 5 465 5 450 6 Callidus Cloud 350 5 400 6 - NA - NA Micro Dental Laboratories - NA - NA - NA - NA Kaiser Permanente - NA - NA - NA 600 5 Patelco Credit Union - NA - NA - NA - NA TriNet - NA - NA 343 8 400 8 Target Stores 350 5 350 8 325 9 380 9 De Silva Gates Construction 300 7 300 9 - NA - NA City of Dublin 237 9 377 7 433 6 400 7 Whole Foods - NA - NA 240 NA 350 10 Safeway 280 8 280 10 - NA - NA Taleo -NA -NA -NA -NA Franklin Templeton Investments - NA - NA - NA - NA Subtotal 6,557 6,923 6,733 7,201 20172016 20192018 199 Attachment #2 270 Estimated Estimated Number of Number of Employer Employees Rank Employees Rank United States Government & Federal Correction Institute 1,400 1 1,608 1 County of Alameda 1,165 2 1,165 2 SAP (Formerly: Sybase Corporation)-NA -NA Ross Stores Headquarters 1,100 4 1,100 3 Dublin Unified School District 1,115 3 1,070 4 Zeiss Meditec 450 6 620 5 Callidus Cloud - NA - NA Micro Dental Laboratories - NA - NA Kaiser Permanente 510 5 600 6 Patelco Credit Union 380 8 404 7 TriNet 400 7 363 8 Target Stores 380 8 350 9 De Silva Gates Construction - NA - NA City of Dublin 332 10 250 10 Whole Foods - NA - NA Safeway - NA - NA Taleo - NA - NA Franklin Templeton Investments - NA - NA Subtotal 7,232 7,530 2020 CITY OF DUBLIN, CALIFORNIA Principal Employers Current Year and Prior Year (Dollars in thousands) (Continued) 2021 200 Attachment #2 271 This page intentionally left blank 201 Attachment #2 272 2012 2013 2014 2015 Function General government City Manager 6.50 6.50 6.50 6.34 Administrative Services 11.50 11.50 11.75 11.75 Economic Development 2.50 2.50 3.50 3.50 Other Services 3.57 3.09 3.45 3.95 Public Safety Police 59.00 59.00 60.00 59.00 Fire 39.64 39.64 39.64 39.64 Disaster Preparedness 0.46 0.59 0.59 0.33 Transportation Public Works 5.45 5.45 5.48 5.88 Streets Maintenance 9.85 10.08 10.32 11.60 Engineering 9.00 9.00 9.00 8.00 Health and welfare Environmental 3.00 2.59 2.59 1.50 Housing 2.25 2.25 2.50 2.50 Waste Management 0.33 1.08 1.08 1.83 Culture and leisure services Parks Community Services 15.55 16.25 15.50 16.81 Park Maintenance 9.36 10.10 11.65 13.07 Parks/ Facilities Management 2.25 2.25 3.45 4.30 Library Services 0.42 0.37 0.37 0.38 Heritage & Cultural Arts 3.26 3.70 5.92 4.40 Community Development Planning & Building 20.95 22.45 23.45 24.45 Total 204.84 208.39 216.74 219.23 Source: City of Dublin Administrative Services Department Note: Include Full Time, Part Time, Temporary, and Contract Employees CITY OF DUBLIN CALIFORNIA Full-Time Equivalent City and Contract Government Employees by Function Last Ten Fiscal Years 202 Attachment #2 273 2016 2017 2018 2019 2020 2021 6.34 7.34 7.34 5.90 5.95 5.50 11.75 11.75 11.75 12.00 12.00 11.90 3.50 3.50 3.50 3.80 3.80 3.25 4.20 4.93 4.54 5.75 6.35 8.00 61.00 61.00 63.00 65.00 67.00 67.00 39.91 39.99 39.99 39.58 39.58 39.56 0.33 0.33 0.33 0.25 0.25 0.75 5.45 6.45 6.45 6.35 6.35 5.45 14.10 16.25 17.31 22.27 22.27 36.27 8.00 10.75 10.75 9.25 9.25 10.15 1.50 3.00 3.00 2.60 2.60 2.30 2.56 1.75 1.75 1.90 1.90 1.85 1.83 0.33 0.33 0.35 0.35 0.10 16.10 17.80 17.80 11.99 10.63 4.00 15.55 15.68 17.45 17.27 17.27 8.18 4.96 4.74 3.92 6.11 5.22 5.52 0.38 0.42 0.42 0.00 0.00 0.00 3.50 4.30 4.30 5.00 5.00 4.90 24.64 26.39 25.91 28.38 29.14 24.82 225.60 236.70 239.84 243.75 244.91 239.50 203 Attachment #2 274 Function/Program 2012 2013 2014 2015 Police: Calls for Service 38,580 34,966 34,567 32,496 Citations Issued 9,229 8,699 8,530 7,175 Arrests 1,542 1,419 1,934 1,091 Fire: Emergency calls 2,323 2,688 2,859 2,667 Inspections 3,308 3,538 3,664 3,948 Building Plan Reviews and Consultations 1,319 1,492 1,561 1,072 Public Works: Bike Path Maintenance (hours)625 668 749 416 Street Sign Maintenance (number of signs)313 205 426 368 Curb Painting (linear feet)6,523 6,400 5,808 32,512 Replace Street Asphalt (square feet)26,000 37,000 18,112 15,800 Street Sweeping (curb miles)5,519 5,901 5,931 5,953 Parks and Community Services: Museum Visitors 4,415 8,612 8,256 5,272 Afterschool Recreation (participants/day)27 228 322 364 Preschool Classes Participants 610 571 430 327 Youth Basketball League Participants 729 812 911 994 Senior Center Average Daily Attendance 217 211 220 233 Community Development: Planning Applications 62 77 59 56 Building Permits 2,110 2,425 2,443 2,068 Building Inspections 15,961 26,045 22,345 20,197 Source: City of Dublin CITY OF DUBLIN CALIFORNIA Operating Indicators by Function/Program Last Ten Fiscal Years 204 Attachment #2 275 2016 2017 2018 2019 2020 2021 35,005 38,688 38,568 38,480 34,643 30,018 7,087 7,164 7,051 7,968 5,806 5,582 1,225 1,315 1,653 1,821 1,510 1,514 2,734 2,848 3,247 3,245 3,443 3,692 4,304 4,141 4,034 4,284 2,964 2,628 1,633 1,654 1,195 797 490 606 799 695 742 969 863 874 510 359 1,838 2,569 546 664 2,922 3,846 3,216 3,893 14,502 123 31,000 73,436 75,087 1,636,012 2,270,000 117,767 5,993 6,026 8,033 7,936 7,210 8,146 3,591 3,525 3,422 2,757 2,011 147 363 367 405 416 334 649 335 158 131 160 185 98 1,074 1,156 1,035 1,075 792 0 236 274 279 299 245 222 52 58 48 31 40 52 2,812 2,806 2,803 2,350 1,866 2,393 20,784 25,186 25,574 20,951 13,339 10,759 205 Attachment #2 276 2012 2013 2014 2015 Function/Program Public safety: Police stations 1 1 1 1 Fire stations 3 3 3 3 Public works: Street Lights 4,281 4,354 4,513 4,520 Miles of Streets 115 116 120 120 Miles of curbs 237 242 248 248 Traffic Signals 89 91 93 93 City Street Trees 7,268 7,408 7,477 7,521 City Landscape (acres)65 67 69 70 Parks and recreation: Number of Community Facilities 7 7 7 6 Number of City Parks 18 18 20 20 Acres of City Parks 209 209 220 220 Acres of Open Space 125 125 125 125 Source: City of Dublin CITY OF DUBLIN, CALIFORNIA Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year 206 Attachment #2 277 2016 2017 2018 2019 2020 2021 1 1 1 1 1 1 3 3 3 3 3 3 4,530 4,540 4,631 4,631 4,736 5,131 120 127 128 151 151 151 248 254 256 305 305 305 94 95 97 98 98 98 8,556 8,526 8,776 9,263 12,355 12,208 74 74 103 107 150 176 6 7 7 7 7 7 20 18 20 21 21 24 220 277 282 289 289 289 125 125 125 125 125 125 Fiscal Year 207 Attachment #2 278 Business Name Business Category Ashley Homestore Home Furnishings Bed Bath & Beyond Home Furnishings Best Buy Electronics/Appliances Stores Carl Zeiss Ophthalmic System Health/Medical Dick's Sporting Goods Sporting Goods/Bike Store Dougherty Road Shell Service Station Dublin Buick/GMC/Chevrolet Motor Vehicle Dealer Dublin Hyundai Genesis Motor Vehicle Dealer Dublin Nissan Motor Vehicle Dealer Fallon Gateway Chevron Service Station Graybar Electric Electrical Equipment HD Supply Lumber/Building Materials Henry Schein Health/Medical Honda Motor Vehicle Dealer Lowes Lumber/Building Materials Mazda Motor Vehicle Dealer Nordstrom Rack Family Apparel Pace Supply Corp Plumbing/Electrical Supplies Safeway Grocery/Liquor Stores Safeway Fuel Station Service Stations Target Discount Dept Stores Tesla Motors Motor Vehicle Dealer Toyota Motor Vehicle Dealer Volkswagen Motor Vehicle Dealer Whole Foods Market Grocery/Liquor Stores Source: City of Dublin Office of Economic Development CITY OF DUBLIN, CALIFORNIA Top 25 Sales Tax Producers 2020-21 208 Attachment #2 279 General Date of Incorporation February 1, 1982 Form of Government Council/ Manager Total Population (Estimated per the California Dept. of Finance, January 1, 2021)72,589 Number of Registered Voters 34,309 Employees, City, and Contract (Full Time Equivalent)239.50 Area (Square Miles)14.91 Parks and Recreation Parks 24 Acres in Parks 289 Acres in Open Space 125 Public Education Elementary Schools 7 K-8 1 Middle Schools 2 High School 1 Continuation High School 1 School Enrollment 12,896 Police Protection Number of Stations 1 Police Personnel (Full Time Equivalent) 67 Fire Protection Number of Stations 3 Fire Personnel (Full Time Equivalent)39.56 Community Facilities Dublin Civic Center 1 Dublin Senior Center 1 Dublin Heritage Center 1 Dublin Public Library 1 Shannon Community Center 1 Emerald Glen Activity Center 1 The Wave (Aquatics Facility)1 Dublin Public Safety Complex 1 Source: City of Dublin CITY OF DUBLIN, CALIFORNIA Miscellaneous Statistical Data June 30, 2021 209 Attachment #2 280 Dublin, California Auditors’ Communication with Those Charged with Governance For the year ended June 30, 2021 Attachment #3 281 December 6, 2021 To The Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin, California (City) for the year ended June 30, 2021, and the respective budgetary comparisons for the General Fund, the Affordable Housing and American Rescue Plan Act Special Revenue Funds. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the planned scope and timing of our audit. Our Responsibilities under U.S. Generally Accepted Auditing Standards, Government Auditing Standards, and the Uniform Guidance As stated in our engagement letter dated April 23, 2021, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. In planning and performing our audit, we considered the City’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting. We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the Uniform Guidance. As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants. However, providing an opinion on compliance with those provisions is not an objective of our audit. Also in accordance with the Uniform Guidance, we examined, on a test basis, evidence about the City’s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement applicable to each of its major federal programs for the purpose of expressing an opinion on the City’s compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City’s compliance with those requirements. Attachment #3 282 To The Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Planned Scope and Timing of the Audit An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit involves judgment about the number of transactions to be examined and the areas to be tested. Our audit included obtaining an understanding of the city and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. We performed the audit according to the timing previously communicated to you on the engagement letter. Significant Audit Matters Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. As described in Note 1 to the financial statements, the City changed accounting policies related to financial reporting by adopting the following Statements of Governmental Accounting Standards (GASB Statement) in 2021: x GASB No. 84, Fiduciary Activities x GASB No. 90, Majority Equity Interests x GASB No. 93, Interbank Offered Rates (except LIBOR removal and lease modifications) x GASB No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for IRS Code Section 457 Deferred Compensation Plans x GASB No. 98, The Annual Comprehensive Financial Report We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were: x Depreciable lives and estimated residual value of property and equipment x Investments valuations x Allowance for uncollectible accounts x Accumulated depreciation x Pension plans (actuarial assumptions) x Net Other Post-employment Benefits (OPEB) plan (actuarial assumptions) Attachment #3 283 To The Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure(s) affecting the financial statements were: x Summary of Significant Accounting Policies x Cash and Investments x Long Term Debt x Capital Assets x Employee Retirement Plans x Other Postemployment Benefits (OPEB) Plan x Commitments and Contingencies x Prior Period Adjustment The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. The attached schedule summarizes the material misstatements detected as a result of audit procedures that were corrected by management. The attached schedule also summarizes the uncorrected misstatements of the financial statements. Management has determined that the effects of the uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letters dated December 6, 2021. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Attachment #3 284 To The Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 4 Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the schedule of expenditures of federal awards, the combining and individual fund financial statements, and budgetary comparison schedules which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the introductory section and statistical section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the use of City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Badawi & Associates, CPAs Berkeley, California December 6, 2021 Attachment #3 285 To The Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 5 Corrected Misstatements Aud Adjusting Journal Entries JE # 28 To record unearned revenue for ARPA funds received but not earned as of June 30, 2021. 2907-0000-47101 Federal Grant 3,544,256.00 2907-26101 Deferred Revenues 3,544,256.00 Total 3,544,256.00 3,544,256.00 Aud Adjusting Journal Entries JE # 31 To reclassify Section 115 Plan Trust to asset. 1001-11314 Cash with Section 115 Plan Trust 2,114,313.95 1001-42001 Restricted 2,114,313.95 1001-0000-46131 Interest Restricted 114,313.95 1001-1901-52107 2,000,000.00 1001-44202 Contra: Extra UAAL PERS Payment Restricted - Section 115 Pension Trust 2,114,313.95 Total 4,228,627.90 4,228,627.90 Uncorrected Misstatements Proposed Journal Entries JE # 29 To restate beginning of year receivables and unavailable revenue for reimbursable TDA expenditures incurred in prior year. 2203-12101 Accounts Receivable 41,217.25 2203-42001 Restricted 41,217.25 2203-2610X Unavailable Revenue 41,217.25 2203-9601-89101 Transfers Out 41,217.25 Total 82,434.50 82,434.50 Attachment #3 286 Measure B Funds Dublin, California Financial Statements and Independent Auditor’s Reports For the year ended June 30, 2021 Attachment #4 287 City of Dublin Alameda County Transportation Commission – Measure B Funds Financial Statements For the year ended June 30, 2021 Table of Contents Page Independent Auditor’s Report .............................................................................................................................. 1 Financial Statements: Balance Sheets ..................................................................................................................................................... 3 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................................................................................................. 4 Notes to Financial Statements .............................................................................................................................. 5 Supplementary Information: Budgets and Budgetary Accounting ................................................................................................................. 10 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Measure B – ACTC Streets and Roads Special Revenue Fund .................................................................. 11 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Measure B – ACTC Bikes and Pedestrians Special Revenue Fund ........................................................... 12 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ...................................................................................................................... 13 Independent Auditor’s Report on Measure B Compliance ........................................................................... 15 Attachment #4 288 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Report on the Financial Statements We have audited the accompanying financial statements of the Measure B Funds (Measure B Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2021 and the related notes to the financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure B Funds of the City as of June 30, 2021, and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Attachment #4 289 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Emphasis of Matter As discussed in Note 1, the financial statements present only the Measure B Funds and do not purport to, and do not, present fairly the financial positions of the City as of June 30, 2021, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Measure B Funds’ financial statements. The budgetary comparison information is presented for purposes of additional analysis and are not a required part of the financial statements. The budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary comparison information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance. Badawi & Associates, CPAs Berkeley, California December 6, 2021 2 Attachment #4 290 City of Dublin Alameda County Transportation Commission- Measure B Funds Balance Sheet June 30, 2021 ACTC ACTC Streets and Bikes and Roads Pedestrians Total ASSETS: Cash and investments 764,087$ 157,149$ 921,236$ Direct local distribution program receivables 131,110 47,695 178,805 Total assets 895,197$ 204,844$ 1,100,041$ FUND BALANCES: Restricted 895,197$ 204,844$ 1,100,041$ Total fund balances 895,197$ 204,844$ 1,100,041$ See accompanying Notes to Financial Statements. 3 Attachment #4 291 City of Dublin Alameda County Transportation Commission- Measure B Funds Statement of Revenues, Expenditures and Changes in Fund Balances For the year ended June 30, 2021 ACTC ACTC Streets and Bikes and Roads Pedestrians Total REVENUES: Measure B revenue 643,740$ 234,185$ 877,925$ Interest Income 7,486 2,084 9,570 Total revenues 651,226 236,269 887,495 EXPENDITURES: Bikes and Pedestrians - 2,500 2,500 Streets and Roads 63,398 231,580 294,978 Total expenditures 63,398 234,080 297,478 REVENUES OVER (UNDER) EXPENDITURES 587,828 2,189 590,017 FUND BALANCES: Beginning of year 307,369 202,655 510,024 End of year 895,197$ 204,844$ 1,100,041$ See accompanying Notes to Financial Statements. 4 Attachment #4 292 City of Dublin Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements For the year ended June 30, 2021 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity All transactions of the Alameda County Transportation Commission – Measure B Funds (Measure B Funds) of the City of Dublin, California (City), are included as a separate special revenue fund in the basic financial statements of the City. Measure B Funds are used to account for the City’s share of revenues earned and expenditures incurred under the City’s local streets and roads, and bike and pedestrian programs. The accompanying financial statements are for Measure B Funds only and are not intended to fairly present the financial position or results of operations of the City. B. Basis of Accounting and Measurement Focus The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus, wherein only current assets and current liabilities generally are included on the balance sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. C. Fund Accounting The operations of the Measure B Funds are accounted for in separate special revenue funds. The funds are separate accounting entities with a set of self-balancing accounts which comprise their assets, liabilities, fund equity, revenues, and expenses. D. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. 2. MEASURE B FUNDS Under Measure B, approved by the voters of Alameda County in 1986 (ACTA Old Measure B) and in 2000, (ACTC Measure B), the City receives a portion of the proceeds of an additional one-half cent sales tax to be used for transportation-related expenditures. This measure was adopted with the intention that the funds generated by the additional sales tax will not fund expenditures previously paid for by property taxes but, rather, would be used for additional projects and programs. Major projects funded by Measure B were as follows: Streets and Roads Program – To improve, repair, and overlay city streets. Bike and Pedestrian Program – To provide sidewalk and American Disability Act (ADA) improvements and to implement the bikeway network. 5 Attachment #4 293 City of Dublin Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements For the year ended June 30, 2021 3. CASH AND INVESTMENTS Measure B funds are pooled with the City’s cash and investments in order to generate optimum interest income. The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. Measure B Funds had the following cash and investments at June 30, 2021: Cash and Investments $ 921,236 A. Investments Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized: Authorized Investment Type Maximum Maturity Minimum Credit Quality Maximum Percentage of Portfolio Maximum Investment In One Issue r Negotiable Certificates of Deposit 5 years A-1 30%20% Bankers' Acceptance 180 days A-1 40% 20% of Portfolio U.S. Treasury Bills and Notes 5 years N/A No Limit No Limit U.S. Government Agency Securities 5 years N/A 25% for callable 35% California Asset Management Program N/A N/A No Limit No Limit Commercial Paper 270 days A-1 25% 20% of Portfolio Time Certificates of Deposit 1 year N/A 10%No Limit State Local Agency Investment Fund N/A N/A No Limit No Limit Asset-Backed Securities 5 years AA 20%5% Medium-Term Notes 5 years A 30%5% Mutual Funds N/A AAA 20%10% Money Market Funds N/A AAA 20%No Limit Municipal Securities 5 years A No Limit 5% Supranationals 5 years AA 30%10% 6 Attachment #4 294 City of Dublin Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements For the year ended June 30, 2021 3. CASH AND INVESTMENTS, Continued A. Investments, Continued In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated at fair value using the aggregate method in all funds and component units. The City’s investments are carried at fair market value as required by generally accepted accounting principles. The City accounts for all changes in fair value that occurred during the year and are reflected in the fund balance for the fiscal year. These investment value changes are unrealized since the City’s policy is to generally hold and buy investments until maturity dates. B. Risk Disclosures Interest Risk – Interest rate risk is the fluctuation in fair value of investments due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investment not to exceed five years. Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its rating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks. Custodial Credit Risk – The custodial credit risk for an investment is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk. C. Local Agency Investment Fund The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2021, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following: Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options. Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2021, the City invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3.37% in the previous year. The LAIF fair value factor of 1.00008297 was used to calculate the fair value of the investments in LAIF. 7 Attachment #4 295 City of Dublin Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements For the year ended June 30, 2021 4. DIRECT LOCAL DISTRIBUTION PROGRAM RECEIVABLES The receivables represent the Measure B sales tax revenues for the fiscal year received from the Alameda County Transportation Commission after June 30, 2021. 5. COMMITMENTS AND CONTINGENCIES The City participates in several grant programs. These programs are subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 8 Attachment #4 296 SUPPLEMENTARY INFORMATION 9 Attachment #4 297 City of Dublin Alameda County Transportation Commission – Measure B Funds Supplementary Information For the year ended June 30, 2021 1. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: x Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. x The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution. x During the fiscal year, the City Manager is authorized to transfer budgeted amounts between line items, provided that the transfer is within the same fund, regardless of the specific department activity. This include the authority to transfer from the General Fund budgeted contingency amounts that are approved by the City Council during the budget adoption. The City Manager is authorized to increase revenue and expenditure budget for various departmental functions, when the net budget impact is zero. x The City Manager is authorized to increase the appropriations for the following fiscal year in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to the year-end, but are expected to be expended in the next year consistent with the original purpose. x Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. x Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent with generally accepted accounting principles in the United States. 10 Attachment #4 298 City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B - ACTC Streets and Roads Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Measure B revenue 542,180$ 542,180$ 643,740$ 101,560$ Interest Income 4,768 4,768 7,486 2,718 Total revenues 546,948 546,948 651,226 104,278 EXPENDITURES: Streets and Roads 593,980 687,586 63,398 624,188 Total expenditures 593,980 687,586 63,398 624,188 Net change in fund balance (47,032)$ (140,638)$ 587,828 728,466$ FUND BALANCE: Beginning of year 307,369 End of year 895,197$ Budgeted Amounts For the year ended June 30, 2021 11 Attachment #4 299 City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B - ACTC Bikes and Pedestrians Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Measure B revenue 195,862$ 195,862$ 234,185$ 38,323$ Interest Income 2,200 2,200 2,084 (116) Total revenues 198,062 198,062 236,269 38,207 EXPENDITURES: Bikes and Pedestrians 18,000 22,618 2,500 20,118 Streets and Roads 223,400 316,297 231,580 84,717 Total expenditures 241,400 338,915 234,080 104,835 Net change in fund balance (43,338)$ (140,853)$ 2,189 143,042$ FUND BALANCE: Beginning of year 202,655 End of year 204,844$ Budgeted Amounts For the year ended June 30, 2021 12 Attachment #4 300 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor’s Report To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Measure B Funds (Measure B Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated December 6, 2021. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Attachment #4 301 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Measure B Funds’ financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statement. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 6, 2021 14 Attachment #4 302 INDEPENDENT AUDITOR’S REPORT ON MEASURE B COMPLIANCE To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Compliance We have audited the City of Dublin’s (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission applicable to the City’s Measure B 2000 Funds (Measure B Funds) for the year ended June 30, 2021. Management’s Responsibility Compliance with the requirements referred to above is the responsibility of the City’s management. Auditor’s Responsibility Our responsibility is to express an opinion on the City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Audit Standards issued by the Comptroller General of the United States; and the agreement between the City and Alameda County Transportation Commission. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a material effect on the Measure B Funds occurred. An audit also includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City’s compliance with those requirements. Opinion In our opinion the City complied, in all material respects, with the compliance requirements referred to above that are applicable to the Measure B Funds for the year ended June 30, 2021. Other Matter Under Measure B, approved by the voters of Alameda County in 2000, the City has received under Alameda County Transportation Improvement Authority Measure B a total of 12 months of revenue from July 2020 through June 2021. The Local Street and Roads program has received $643,740 and the Bike and Pedestrian program has received $234,185. This financial statement reflects twelve months of revenue for the Paratransit, Local Streets and Roads, and the Bike and Pedestrian programs. Attachment #4 303 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit, we considered the City’s internal control over compliance to determine the auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the agreement between the City and Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 6, 2021 16 Attachment #4 304 Measure BB Funds Dublin, California Financial Statements and Independent Auditor’s Reports For the year ended June 30, 2021 Attachment #5 305 City of Dublin Alameda County Transportation Commission – Measure BB Funds Financial Statements For the year ended June 30, 2021 Table of Contents Page Independent Auditor’s Report ............................................................................................................................. 1 Financial Statements: Balance Sheet ........................................................................................................................................................ 3 Statement of Revenues, Expenditures and Changes in Fund Balances .............................................................................................................................. 4 Notes to Financial Statements ............................................................................................................................... 5 Supplementary Information: Budgets and Budgetary Accounting .................................................................................................................. 10 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Measure BB – ACTC Streets and Roads Special Revenue Fund ................................................................. 11 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Measure BB – ACTC Bikes and Pedestrians Special Revenue Fund .......................................................... 12 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................................................................................................................... 13 Independent Auditor’s Report on Measure BB Compliance ......................................................................... 15 Attachment #5 306 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Report on the Financial Statements We have audited the accompanying financial statements of the Measure BB Funds (Measure BB Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2021 and the related notes to the financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure BB Funds of the City as of June 30, 2021, and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Attachment #5 307 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Emphasis of Matter As discussed in Note 1, the financial statements present only the Measure BB Funds and do not purport to, and do not, present fairly the financial positions of the City as of June 30, 2021, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Measure BB Funds’ financial statements. The budgetary comparison information is presented for purposes of additional analysis and are not a required part of the financial statements. The budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary comparison information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance. Badawi & Associates, CPAs Berkeley, California December 6, 2021 2 Attachment #5 308 City of Dublin Alameda County Transportation Commission - Measure BB Funds Balance Sheet June 30, 2021 ACTC ACTC Streets and Bikes and Roads Pedestrians Total ASSETS: Cash and investments 250,082$ 147,635$ 397,717$ Direct local distribution program receivables 117,662 38,917 156,579 Total assets 367,744$ 186,552$ 554,296$ FUND BALANCES: Restricted 367,744$ 186,552$ 554,296$ Total fund balances 367,744$ 186,552$ 554,296$ See accompanying Notes to Financial Statements. 3 Attachment #5 309 City of Dublin Alameda County Transportation Commission - Measure BB Funds Statement of Revenues, Expenditures and Changes in Fund Balances ACTC ACTC Streets and Bikes and Roads Pedestrians Total REVENUES: Measure BB revenue 578,781$ 191,436$ 770,217$ Use of money and property 4,277 2,704 6,981 Total revenues 583,058 194,140 777,198 EXPENDITURES: Bikes and Pedestrians - 1,179 1,179 Streets and Roads 692,411 204,500 896,911 Total expenditures 692,411 205,679 898,090 EXPENDITURES (109,353) (11,539) (120,892) FUND BALANCES: Beginning of year 477,097 198,091 675,188 End of year 367,744$ 186,552$ 554,296$ For the year ended June 30, 2021 REVENUES OVER (UNDER) See accompanying Notes to Financial Statements. 4 Attachment #5 310 City of Dublin Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements For the year ended June 30, 2021 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity All transactions of the Alameda County Transportation Commission – Measure BB Funds (Measure BB Funds) of the City of Dublin, California (City), are included as a separate special revenue fund in the basic financial statements of the City. Measure BB Funds are used to account for the City’s share of revenues earned and expenditures incurred under the City’s paratransit, local streets and roads, and bike and pedestrian programs. The accompanying financial statements are for Measure BB Funds only and are not intended to fairly present the financial position or results of operations of the City. B. Basis of Accounting and Measurement Focus The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus, wherein only current assets and current liabilities generally are included on the balance sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. C. Fund Accounting The operations of the Measure BB Funds are accounted for in separate special revenue funds. The funds are separate accounting entities with a set of self-balancing accounts which comprise their assets, liabilities, fund equity, revenues, and expenses. D. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. 2. MEASURE BB FUNDS Under Measure BB, approved by the voters of Alameda County in 2014, the City receives a portion of the proceeds of an additional one-half cent sales tax to be used for transportation-related expenditures. This measure was adopted with the intention that the funds generated by the additional sales tax will not fund expenditures previously paid for by property taxes but, rather, would be used for additional projects and programs. Major projects funded by Measure BB were as follows: Streets and Roads Program – To improve, repair, and overlay city streets. Bike and Pedestrian Program – To provide sidewalk and American Disability Act (ADA) improvements and to implement the bikeway network. 5 Attachment #5 311 City of Dublin Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements For the year ended June 30, 2021 3. CASH AND INVESTMENTS Measure BB funds are pooled with the City’s cash and investments in order to generate optimum interest income. The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. Measure BB Funds had the following cash and investments at June 30, 2021: Cash and Investments $397,717 A. Investments The City's Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City's Investment Policy where the City's Investment Policy is more restrictive. 6 Attachment #5 312 City of Dublin Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements For the year ended June 30, 2021 3. CASH AND INVESTMENTS, Continued A. Investments, Continued In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated at fair value using the aggregate method in all funds and component units. The City’s investments are carried at fair market value as required by generally accepted accounting principles. The City accounts for all changes in fair value that occurred during the year and are reflected in the fund balance for the fiscal year. These investment value changes are unrealized since the City’s policy is to generally hold and buy investments until maturity dates. B. Risk Disclosures Interest Risk – Interest rate risk is the fluctuation in fair value of investments due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investment not to exceed five years. Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its rating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks. Custodial Credit Risk – The custodial credit risk for an investment is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk. C. Local Agency Investment Fund The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2021, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following: Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options. Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2021, the City had invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3.37% in the previous year. The LAIF fair value factor of 1.00008297 was used to calculate the fair value of the investments in LAIF. 7 Attachment #5 313 City of Dublin Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements For the year ended June 30, 2021 4. DIRECT LOCAL DISTRIBUTION FROGRAM RECEIVABLES The receivables represent the Measure BB sales tax revenues for the fiscal year received from the Alameda County Transportation Commission after June 30, 2021. 5. COMMITMENTS AND CONTINGENCIES The City participates in several grant programs. These programs are subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 8 Attachment #5 314 SUPPLEMENTARY INFORMATION 9 Attachment #5 315 City of Dublin Alameda County Transportation Commission – Measure BB Funds Supplementary Information For the year ended June 30, 2021 1. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: x Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. x The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution. x During the fiscal year, the City Manager is authorized to transfer budgeted amounts between line items, provided that the transfer is within the same fund, regardless of the specific department activity. This include the authority to transfer from the General Fund budgeted contingency amounts that are approved by the City Council during the budget adoption. The City Manager is authorized to increase revenue and expenditure budget for various departmental functions, when the net budget impact is zero. x The City Manager is authorized to increase the appropriations for the following fiscal year in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to the year-end, but are expected to be expended in the next year consistent with the original purpose. x Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. x Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent with generally accepted accounting principles in the United States. 10 Attachment #5 316 City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB - ACTC Streets and Roads Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Measure BB revenue 486,937$ 486,937$ 578,781$ 91,844$ Use of money and property 2,770 2,770 4,277 1,507 Total revenues 489,707 489,707 583,058 93,351 EXPENDITURES: Streets and Roads 524,000 809,518 692,411 117,107 Total expenditures 524,000 809,518 692,411 117,107 Net change in fund balance (34,293)$ (319,811)$ (109,353) 210,458$ FUND BALANCE: Beginning of year 477,097 End of year 367,744$ Budgeted Amounts For the year ended June 30, 2021 11 Attachment #5 317 City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB - ACTC Bikes and Pedestrians Variance with Final Budget Actual Positive Original Final Amounts (Negative) REVENUES: Measure BB revenue 159,933$ 159,933$ 191,436$ 31,503$ Use of money and property 1,324 1,324 2,704 1,380 Total revenues 161,257 161,257 194,140 32,883 EXPENDITURES: Bikes and Pedestrians 1,179 1,179 1,179 - Streets and Roads 231,699 324,199 204,500 119,699 Total expenditures 232,878 325,378 205,679 119,699 Net change in fund balance (71,621)$ (164,121)$ (11,539) 152,582$ FUND BALANCE: Beginning of year 198,091 End of year 186,552$ Budgeted Amounts For the year ended June 30, 2021 12 Attachment #5 318 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor’s Report To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Measure BB Funds (Measure BB Funds) of the City of Dublin, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated December 6, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting in relation to Measure BB Funds (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Attachment #5 319 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Measure BB Funds’ financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 6, 2021 14 Attachment #5 320 INDEPENDENT AUDITOR’S REPORT ON MEASURE BB COMPLIANCE To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Compliance We have audited the City of Dublin’s (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission applicable to the City’s Measure BB Funds (Measure BB Funds) for the year ended June 30, 2021. Management’s Responsibility Management of the City is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its Measure BB Funds. Auditor’s Responsibility Our responsibility is to express an opinion on City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the agreement between the City and Alameda County Transportation Commission applicable to Measure BB. Those standards and the agreement require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the Measure BB Funds. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for Measure BB Funds. However, our audit does not provide a legal determination of the City’s compliance. Opinion In our opinion, the City complied, in all material respects, with the types of compliance requirements related to the agreement between the City and Alameda County Transportation Commission applicable to Measure BB for the year ended June 30, 2021. Other Matter Under Measure BB, approved by the voters of Alameda County in 2014, the City has received a total of 12 months of revenue from July 2020 through June 2021. The Local Street and Roads program has received $578,781, and the Bike and Pedestrian program has received $191,436. Attachment #5 321 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Internal Control Over Compliance Management of City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of agreement between the City and Alameda County Transportation Commission applicable to Measure BB. Accordingly, this report is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 6, 2021 16 Attachment #5 322 Measure F Alameda County Vehicle Registration Fee Fund Dublin, California Financial Statements and Independent Auditor’s Reports For the year ended June 30, 2021 Attachment #6 323 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Financial Statements For the year ended June 30, 2021 Table of Contents Page Independent Auditor’s Report ............................................................................................................................. 1 Financial Statements: Balance Sheet ...................................................................................................................................................... 3 Statement of Revenues, Expenditures and Changes in Fund Balance .............................................................................................................................. 4 Notes to Financial Statements ............................................................................................................................. 5 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................................................................................................................... 9 Independent Auditor’s Report on Measure F Compliance ............................................................................ 11 Attachment #6 324 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Report on the Financial Statements We have audited the accompanying financial statements of the Measure F Alameda County Vehicle Registration Fee Fund (VRF Fund) of the City of Dublin, California (City), as of and for the year ended June 30, 2021 and the related notes to the financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Attachment #6 325 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the VRF Fund of the City as of June 30, 2021, and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1, the financial statements present only the VRF Fund and do not purport to, and do not, present fairly the financial positions of the City as of June 30, 2021, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance. Badawi & Associates, CPAs Berkeley, California December 6, 2021 2 Attachment #6 326 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Balance Sheet June 30, 2021 ASSETS: Cash and investments 167,300$ Direct local distribution program receivables 51,179 Total assets 218,479$ FUND BALANCE: Restricted 218,479$ Total fund balance 218,479$ See accompanying Notes to Financial Statements. 3 Attachment #6 327 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Statement of Revenues, Expenditures and Changes in Fund Balance REVENUES: Measure F revenues 300,170$ Use of money and property 3,264 Total revenues 303,434 EXPENDITURES: Contractual services 262,400 Streets and roads 107,111 Total expenditures 369,511 EXPENDITURES (66,077) FUND BALANCE: Beginning of year 284,556 End of year 218,479$ For the year ended June 30, 2021 REVENUES OVER See accompanying Notes to Financial Statements. 4 Attachment #6 328 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2021 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity All transactions of the Measure F Alameda County Vehicle Registration Fees are reported in a special revenue fund (VRF Fund) of the City of Dublin, California (City). The special revenue fund is included as part of the State Construction and Maintenance fund in the basic financial statements of the City. The Fund is used to account for the City’s revenues earned and expenditures incurred under the City’s various street maintenance and construction projects. The accompanying financial statements are for the VRF Fund only and are not intended to fairly present the financial position of the City. B. Basis of Accounting The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus, wherein only current assets and current liabilities generally are included on the balance sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. C. Fund Accounting The operations of the VRF Fund are accounted for as part of the State Construction and Maintenance Fund. Funds are separate accounting entities with a set of self-balancing accounts which comprise their assets, liabilities, fund equity, revenues, and expenditures. D. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. E. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. 5 Attachment #6 329 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2021 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Cash, Cash Equivalents, and Investments, Continued In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following areas: ƒInterest Rate Risk ƒCredit Risk ‰Overall ‰Custodial Credit Risk ‰Concentrations of Credit Risk In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and Asset-Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset- Backed Securities are subject to market risk as to change in interest rates. F. Revenues and Receivables During the course of normal operations, the fund carries various receivable balances for intergovernmental revenue and interest. Revenues are recorded when received in cash, except revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the fund, are Measure F vehicle registration fees. 2. MEASURE F ALAMEDA COUNTY VEHICLE REGISTRATION FEES The Measure F Alameda County Vehicle Registration Fee (VRF) Program was approved by the voters in November 2010, with 63 percent of the vote. The fee will generate about $10.7 million per year by a $10 per year vehicle registration fee. The collection of the $10 per year vehicle registration fee started in the first week of May 2011. The goal of the VRF program is to sustain the County’s transportation network and reduce traffic congestion and vehicle related pollution. The program includes four categories of projects: x Local Road Improvement and Repair Program (60 percent) x Transit for Congestion Relief (25 percent) x Local Transportation Technology (10 percent) x Pedestrian and Bicyclist Access and Safety Program (5 percent) 6 Attachment #6 330 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2021 3. CASH AND INVESTMENTS The VRF Fund’s cash and investments are pooled with the City’s cash and investments in order to generate optimum interest income. The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. VRF Fund had the following cash and investments at June 30, 2021: Cash and Investments $ 167,300 A. Investments The City's Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings of the issuers are acceptable to the City; and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code, or the City's Investment Policy where the City's Investment Policy is more restrictive. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated at fair value using the aggregate method in all funds and component units. The City’s investments are carried at fair market value as required by generally accepted accounting principles. The City accounts for all changes in fair value that occurred during the year and are reflected in the fund balance for the fiscal year. These investment value changes are unrealized since the City’s policy is to hold and buy investments until maturity dates. 7 Attachment #6 331 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2021 3. CASH AND INVESTMENTS, Continued B. Risk Disclosures Interest Risk – Interest rate risk is the fluctuation in fair value of investment due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investment not to exceed five years. Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its rating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks. Custodial Credit Risk – The custodial credit risk for an investment is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk. C. Local Agency Investment Fund The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2021, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following: Structured Notes – are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options. Asset-Backed Securities – the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2021, the City had invested in LAIF, which had invested 2.31% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3.37% in the previous year. The LAIF fair value factor of 1.00008297 was used to calculate the fair value of the investments in LAIF. 4. DIRECT LOCAL DISTRIBUTION PROGRAM RECEIVABLES The receivables represent the Measure F VRF revenues for the fiscal year received from the Alameda County Transportation Commission after June 30, 2021. 5. COMMITMENTS AND CONTINGENCIES The City participates in several grant programs. These programs are subject to any further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 8 Attachment #6 332 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor’s Report To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Measure F Alameda County Vehicle Registration Fee Fund (VRF Fund) of the City of Dublin, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated December 6, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Attachment #6 333 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the VRF Fund’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 6, 2021 10 Attachment #6 334 INDEPENDENT AUDITOR’S REPORT ON MEASURE F COMPLIANCE To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Compliance We have audited the City of Dublin’s (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission applicable to the City’s Measure F Alameda County Vehicle Registration Fee Fund (VRF Fund) for the year ended June 30, 2021. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to the VRF Fund. Auditor’s Responsibility Our responsibility is to express an opinion on City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the agreement between the City and Alameda County Transportation Commission applicable to Measure F Alameda County Vehicle Registration Fee Fund. Those standards and the agreement require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on the VRF Fund. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for VRF Fund. However, our audit does not provide a legal determination of the City’s compliance. Opinion on Measure F Funds In our opinion, the City complied, in all material respects, with the types of compliance requirements related to the agreement between the City and Alameda County Transportation Commission applicable to the VRF Fund for the year ended June 30, 2021. Attachment #6 335 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page 2 Report on Internal Control Over Compliance Management of City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the agreement between the City and Alameda County Transportation Commission applicable to the VRF Fund. Accordingly, this report is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 6, 2021 12 Attachment #6 336 Transportation Development Act Fund Dublin, California Financial Statements and Independent Auditor’s Reports For the year ended June 30, 2021 Attachment #7 337 City of Dublin Transportation Development Act Fund Financial Statements For the year ended June 30, 2021 Table of Contents Page Independent Auditor’s Report ................................................................................................................................. 1 Financial Statements: Balance Sheet .......................................................................................................................................................... 3 Statements of Revenues, Expenditures and Changes in Fund Balances ............................................................................................................................. 4 Notes to Financial Statements ............................................................................................................................. 5 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ............................................................... 7 Independent Auditor’s Report on Transportation Development Act Funds Compliance .................................................................................. 9 Attachment #7 338 INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Report on the Financial Statements We have audited the accompanying financial statements of the Transportation Development Act Fund (TDA Fund) of the City of Dublin, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Attachment #7 339 To the Honorable Mayor and Members of City Council of the City Dublin Dublin, California Page 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the TDA Fund of the City as of June 30, 2021, and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 1, the financial statements present only the TDA Fund and do not purport to, and do not, present fairly the financial positions of the City as of June 30, 2021, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2021, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance. Badawi & Associates, CPAs Berkeley, California December 6, 2021 2 Attachment #7 340 City of Dublin Transportation Development Act Fund Balance Sheet June 30, 2021 2021 ASSETS Intergovernmental receivables 71,472$ Total assets 71,472$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Due to City of Dublin 30,255$ Deferred inflows of resources: Unavailable revenues 41,217 Fund Balances: Unassigned - Total liabilities, deferred inflows of resources, and fund balances 71,472$ See accompanying Notes to Financial Statements. 3 Attachment #7 341 City of Dublin Transportation Development Act Fund Statements of Revenues, Expenditures and Changes in Fund Balances For the year ended June 30, 2021 2021 Revenues: TDA Revenues 192,683$ Total Revenues 192,683 Expenditures: Citywide Bicycle and Pedestrians Improvements 79,693 Total Expenditures 79,693 Net change in fund balances 112,990 Fund Balances: Beginning of year, as restated (112,990) End of year -$ See accompanying Notes to Financial Statements. 4 Attachment #7 342 City of Dublin Transportation Development Act Fund Notes to Financial Statements For the year ended June 30, 2021 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity The City of Dublin, California (City) has received funds under the Transportation Development Act (TDA), Article 3.0 which provides funding for the Update Bike and Pedestrian Master Plan project. The project is funded by the Metropolitan Transportation Commission (MTC). All transactions of the Transportation Development Act Fund (TDA Fund) of the City are included as a separate capital project fund in the basic financial statements of the City. The financial statements are intended to present the TDA Fund, and not the financial position and the changes in fund balances of the City as a whole. B. Basis of Accounting and Measurement Focus The accompanying financial statements are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available (generally 60 days after year-end), and expenditures are recorded when the related liabilities are incurred. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus, wherein only current assets and current liabilities generally are included on the balance sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. C. Fund Accounting The operations of the TDA Fund are accounted for in a separate capital projects fund. The fund is a separate accounting entity with a set of self-balancing accounts which comprise its assets, liabilities, fund equity, revenues, and expenses. D. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. E. Receivables During the course of normal operations, the fund carries various receivable balances for unreimbursed eligible TDA expenditures. 5 Attachment #7 343 City of Dublin Transportation Development Act Fund Notes to Financial Statements For the year ended June 30, 2021 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued F. Deferred Inflows of Resources In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. G. Fund Balance The TDA fund balance is restricted by third party to be used in accordance with the Transportation Development Act (TDA). The TDA funds are distributed on a reimbursement basis. 2. PRIOR PERIOD ADJUSTMENT The TDA Fund’s beginning of year fund balance has been restated to recognize certain reimbursable expenditures incurred in the prior year as of June 30, 2020. 6 Attachment #7 344 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditor’s Report To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Transportation Development Act Fund (TDA Fund) of the City of Dublin, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, and have issued our report thereon dated December 6, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting in relation to the TDA Fund (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Attachment #7 345 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Page Two Compliance and Other Matters As part of obtaining reasonable assurance about whether the TDA Fund’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 6, 2021 8 Attachment #7 346 INDEPENDENT AUDITOR’S REPORT ON TRANSPORTATION DEVELOPMENT ACT FUNDS COMPLIANCE To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Compliance We have audited the City of Dublin’s (City) compliance with the types of compliance requirements described in Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission applicable to the City’s Transportation Development Act Fund (TDA Fund) for the year ended June 30, 2021. Management’s Responsibility Compliance with the requirements referred to above is the responsibility of the City’s management. Auditor’s Responsibility Our responsibility is to express an opinion on the City’s compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Audit Standards issued by the Comptroller General of the United States; Section 6666 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a material effect on the TDA Fund occurred. An audit also includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City’s compliance with those requirements. Opinion In our opinion the City complied, in all material respects, with the compliance requirements referred to above that are applicable to the Transportation Development Act funds for the year ended June 30, 2021. Attachment #7 347 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit, we considered the City’s internal control over compliance to determine the auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be deficiencies, significant deficiencies, or material weaknesses in internal control over compliance. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the Act. Accordingly, this report is not suitable for any other purpose. This report is intended for the information of the Mayor, City Council Members, management, and the Metropolitan Transportation Commission and is not intended to be and should not be used by anyone other than these specified parties. Badawi & Associates, CPAs Berkeley, California December 6, 2021 10 Attachment #7 348 Dublin, California Single Audit Report For the year ended June 30, 2021 Attachment #8 349 City of Dublin Single Audit Report For the year ended June 30, 2021 Table of Contents Page Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................................................... 1 Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance .............................................................. 3 Schedule of Expenditures of Federal Awards ..................................................................................................... 7 Notes to the Schedule of Expenditures of Federal Awards ............................................................................... 8 Schedule of Findings and Questioned Costs ....................................................................................................... 9 350 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated December 6, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and responses, we did identify certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 351 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 6, 2021 2 352 REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE AND ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS INDEPENDENT AUDITOR’S REPORT To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Report on Compliance for Each Major Federal Program We have audited the City of Dublin, California (City)’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2021. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the City’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City’s compliance. 353 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Opinion on Each Major Federal Program In our opinion, the City, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2021. Report on Internal Control Over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. 4 354 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 6, 2021, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such 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 financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. Badawi & Associates, CPAs Berkeley, California December 6, 2021 5 355 This page intentionally left blank 6 356 City of Dublin Schedule of Expenditures of Federal Awards For the year ended June 30, 2021 Federal Agency or Federal Grantor/Pass-Through CFDA Pass-Through Federal Grantor Program Title Number Number Expenditures U.S. Department of Housing and Urban Development: Passed through Alameda County Housing and Community Development: Community Development Block Grants/Entitlement Grants 14.218 B-20-UC-06-001 716,556$ Total U.S. Department of Housing and Urban Development 716,556 U.S. Department of the Treasury Passed through State of California: Coronavirus Relief Fund 21.019 Not available 757,493 Total U.S. Department of the Treasury 757,493 Total Federal Expenditures 1,474,049$ 7 357 City of Dublin Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30, 2021 A. Reporting Entity The financial reporting entity consists of (a) the primary government, City of Dublin, California (City), (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. B.Basis of Accounting Funds received under the various grant programs have been recorded within the general, special revenue, and capital projects funds of the City. The City utilizes the modified accrual basis of accounting for the general, special revenue, and capital projects funds. Expenditures of federal awards reported on the Schedule of Expenditures of Federal Awards (Schedule) are recognized when incurred. C. Relationship of Schedule of Expenditures of Federal Awards to Financial Statements The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California is included in the Schedule. The Schedule was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City. D. Pass-Through Entities’ Identifying Number When federal awards were received from a pass-through entity, the Schedule shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity. E. Indirect Costs The City did not elect to use the 10% de minimis indirect cost rate. 8 358 City of Dublin Schedule of Findings and Questioned Costs For the year ended June 30, 2021 Section I – Summary of Auditor’s Results Financial Statements Types of auditors’ report issued on whether financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting: x Material weakness(es) identified? No x Significant deficiency(ies) identified? None noted Any noncompliance material to the financial statements noted No Federal Awards Internal control over major programs: x Material weakness(es) identified? No x Significant deficiency(ies) identified? None noted Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with section 200.516(a) No Identification of major programs: Dollar threshold used to distinguish between type A and type B program $750,000 Auditee qualified as low-risk auditee under section 200.520? No 9 359 City of Dublin Schedule of Findings and Questioned Costs For the year ended June 30, 2021 Section II – Current Year Findings A.Financial Statement Audit No current year financial statement audit findings. B. Federal Award Program Audit No current year federal award program audit findings. Section II – Prior Year Findings A.Financial Statement Audit No prior year financial statement audit findings. B. Federal Award Program Audit No prior year federal award program audit findings. 10 360 Dublin, California Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Schedule For the fiscal year ending June 30, 2022 Attachment #9 361 INDEPENDENT ACCOUNTANTS’ REPORT To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California We have performed the procedures enumerated below on the accompanying Appropriations Limit Schedule of the City of Dublin (City) for the fiscal year ending June 30, 2022. The City’s management is responsible for the accompanying Appropriations Limit Schedule. The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of the requirements of Section 1.5 of Article XIII-B of the California Constitution. Additionally, the League of California Cities (as presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution) has agreed to and acknowledged that the procedures performed are appropriate for their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The procedures performed and our findings are described below: 1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the fiscal year ending June 30, 2022, and determined that the limit and annual calculation factors were adopted by resolution of City Council. We also determined that the population and inflation options were selected by a recorded vote of City Council. Finding: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and agreed the resulting amount to the current year’s limit. Finding: No exceptions were noted as a result of our procedures. 3. We agreed the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City. Finding: No exceptions were noted as a result of our procedures. 4. We agreed the prior year appropriations limit presented in the accompanying Appropriations Limit Schedule to the prior year appropriations limit adopted by the City Council during the prior year. Finding: No exceptions were noted as a result of our procedures. Attachment #9 362 To the Honorable Mayor and Members of City Council of the City of Dublin Dublin, California We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriation Limit Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement. This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record, and its distribution is not limited. Badawi & Associates, CPAs Berkeley, California December 6, 2021 Attachment #9 363 City of Dublin Appropriations Limit Schedule Amount Source A. Appropriations limit for the year ended June 30, 2021 398,039,721$ Prior year resolution B. Calculation Factors: 1. Population increase %0.9974 State Department of Finance 2. Inflation increase %1.0573 County of Alameda 3. Total adjustment factor % 1.0546 B1*B2 C. Annual Adjustment Increase 21,732,969 [(B3-1)A)] D. Other Adjustments - N/A E. Total Adjustments 21,732,969 (C+D) F.Appropriations limit for the year ending June 30, 2022 419,772,690$ (A+E) For the fiscal year ending June 30, 2022 3 Attachment #9 364 City of Dublin Notes to Appropriations Limit Schedule For the fiscal year ending June 30, 2022 1. PURPOSE OF LIMITED PROCEDURES REVIEW Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit. 2. METHOD OF CALCULATION Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-1987, adjusted for the inflation and population factors discussed in Notes 3 and 4 below. 3. INFLATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance), or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City of Dublin for the fiscal year 2021-2022 represents the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. 4. POPULATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction’s own population, or the annual percentage change in population in the County where the jurisdiction is located. The factor adopted by the City of Dublin for fiscal year 2021-2022 represents the annual percentage change in population for the City. 5. OTHER ADJUSTMENTS A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services, to, or from, another government agency or private entity. There were no adjustments made for fiscal year ending June 30, 2022. Attachment #9 365