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HomeMy WebLinkAbout4.7 Annual Comprehensive Financial Report (ACFR) and Annual Audit for Fiscal Year Ending June 30, 2022 and Supplemental Reports Completed by the City’s Independent AuditorsCELEBRATING STAFF REPORT CITY COUNCIL DUBLIN CALIFORNIA Agenda Item 4.7 DATE: December 20, 2022 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SU B.ECT : Annual Comprehensive Financial Report (ACFR) and Annual Audit for Fiscal Year Ending June 30, 2022 and Supplemental Reports Completed by the City's Independent Auditors Prepared 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, 2022. 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 single audit report related to Federal Grant Expenditures; and 5) a review of the City's Annual Appropriations Limit Calculation. The reports have been reviewed by the City Council Ad -Hoc Audit Subcommittee. STAFF RECOMMEN DATION: 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 3-8. Page 1 of 6 88 DESCRIPTION: The City of Dublin has prepared its Annual Comprehensive Financial Report (ACFR) for the Fiscal Year (FY) ending June 30, 2022. 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 Review The auditors met with the City Council Ad -Hoc Audit Committee, composed of Councilmembers Hu and McCorriston, on December 7, 2022, 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 the Committee 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 1-4), meaning that the financial statements present fairly, in all material respects, the financial position of the City. The compliance audits for the additional reports found that, based on the information reviewed and presented, expenditures were materially in compliance with the program requirements (Attachments 4 -7). Financial Overview Attachment 1 provides a guide to key elements contained in the ACFR. Some of the important financial results include an increase of $33.4 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 page 6 and 7). It is important to note that the amount reported as Total Net Assets includes: 1. $543.2 million (61% of total net assets) in investments in capital assets (e.g. land, infrastructure, buildings, and equipment). 2. $118.1 million (13% of total net assets) that is subject to external restrictions on how it can be used, such as development impact fee funds. 3. $228.4 million (26% of total net assets) in net assets that are unrestricted. Page 2 of 6 89 TABLE 1: SUMMARY OF NET POSITION June 30, 2022 and 2021 Item Current and Other Assets Notes Receivable (Note 5) Lease Receivable (Note 6) OPEB Asset (Nate 12) Capital Assets (Note 7) Total Assets Deferred Outflows, of Resources Current Liabilities ?Concurrent Liabilities Total Liabilities Deferred Inflows of Resources Net Investment in Capital Assets Restricted Unrestricted Total Net Position (=overnniental Activities June 30, 2022 $ 384,956,065 14,549,568 2,686,338 9,048,738 554,600,283 June 30, 202 ] 8 Change 337,855,134 15.598,828 4,087,651 537.970,763 965,840, 992 895,512,376 4,137,1 05 4,464,343 34,016,977 23,168,959 29,104,950 17,501,236 63,121,927 40,670,195 17,137,969 2,983,975 543,185,634 118,161,236 228,371,331 537,970,764 107,140,245 211,211, 541 $ S89,718,201 S 856,322,550 $ 47,100,931 (1,049,260) 2,686,338 4,961,087 16,629,520 Change 13.9% -6.7% 100.0% 121.4% 3.1% 70,328,616 7.9% (327,238) 10,848,018 11,603,714 22,451, 732 14,153,994 5,214,870 11,020,991 17,159,790 $ 33,345,651 -7.33% 46.8% 66.3% 55.2% 474.3% 3.9 % 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 invoices for the remittance of special tax funds for the Dublin Crossing Community Facilities District. The corrections were made and deemed immaterial. Overall, the report does not note any issues for Fiscal Year 2021-22. Designation of Fund Balances The City's Fund Balance and Reserves Policy conforms to required standards enacted by the Governmental Accounting Standards Board (GASB). A listing of the FY 2021-22 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: Page 3 of 6 90 TABLE 2: GOVERNMENTAL FUND BALANCE CHANGES June 30, 2022 and 2021 General F Und Affordable Housing Fund Capital Improvement Funds Ulher iovernrnental Funds Total Governmental Funds Arne 30, 2022 S 223,857,506 29,913,316 63,139,381 29,010,964 June 30, 2021 S 209,764,496 24,488,291 59,059,972 18,738,644 $ 345,921,167 $ 312,051,403 $ Change %% Change $ 14,093,010 6.7% 5,425,025 22.2% 4,079,409 6,9% 10.272,320 54, 8`'••4 $ 33.869,764 10.9% As shown above, General Fund Reserves totaled $223.8 million as of June 30, 2022. Of that amount, $64.0 million is available for cash flow purposes, equating to approximately 8.2 months of budgeted operating expenditures in FY 2022-23. 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 Auditors In addition to the audit of the financial statements, the audit engagement also included the completion of specialized reports. The five supplemental reports include: 1. A compliance audit of Alameda County Transportation Commission (ACTC) Measure B Funds 2. A compliance audit of the ACTC Measure BB Funds 3. A compliance audit of the ACTC Vehicle Registration Fee (Measure F) Program 4. A single audit report related to Federal Grant Expenditures 5. A review of the City's Annual Appropriations Limit Calculation ACTC Measure B Funds Report (Attachment 4) ACTC provides local funding via two local programs: 1) Local Street Improvements; and 2) Bicycle and Pedestrian Improvements. As of June 30, 2022, the Local Streets fund balance of $916,201 is assigned to a Capital Reserve for continued street improvement projects, and the Bike/Pedestrian fund balance of $340,040 is restricted to appropriate bike and pedestrian program improvements. During FY 2021-22, the following projects were funded by Measure B: • Annual Street Resurfacing • Iron Horse Trail Bridge • Citywide Bicycle & Pedestrian Improvements • Citywide Signal Communication Upgrade 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 Page 4 of 6 91 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, 2022, the Measure BB Fund had a restricted fund balance of $748,337 for Local Streets and Roads, and $405,776 restricted for Bicycle and Pedestrian improvements. During FY 2021-22, the following projects were funded by Measure BB: • Annual Street Resurfacing • Citywide Bicycle and Pedestrian Improvements ACTC 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, 2022, the ACTC VRF Measure F Fund had a balance of $246,182 in restricted funds. During FY 2021-22, the following projects were funded by Measure F: • Intelligent Transportation System Upgrades • Citywide Signal Communication Upgrade Single Audit Report for Federal Grant Expenditures (Attachment 7) The City is required to obtain a Single Audit if annual expenditures of Federal Funds exceed $750,000. In FY 2021-22 the City had $2,433,647 in expenditures of Federal Funds, which included $405,780 in Community Development Block Grant/Entitlement Grants and $2,027,867 in American Rescue Plan Act funds. The audit includes a Report on Internal Controls and Compliance, which reported no findings relative to the federal programs reported by the City. Appropriation Limit Schedule Report (Attachment 8) 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 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 $450,080,278 limit as presented in the FY 2022-23 Budget, and there were no exceptions noted in the findings. STRATEGIC PLAN INITIATIVE: None NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. Page 5 of 6 92 ATTACHMENTS: 1) Summary - Key Information 2) Annual Comprehensive Financial Report Fiscal Year 2021-22 3) Fiscal Year 2021-22 Auditors' Communication with Those Charged with Governance 4) Fiscal Year 2021-22 Measure B Report 5) Fiscal Year 2021-22 Measure BB Report 6) Fiscal Year 2021-22 Measure F Report 7) Fiscal Year 2021-22 Single Audit Report 8) Appropriations Limit Fiscal Year 2022-23 Page 6 of 6 93 Attachment 1 SUMMARY - KEY INFORMATION COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDING JUNE 30, 2022 City Council Meeting December 20, 2022 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 the City's financial position. 3. The ACFR format will allow the City to apply for a Certificate of Achievement from the Government Finance Officers Association (GFOA). The goal is to provide financial information of the highest quality, in a transparent manner. 4. ORGANIZATION OF REPORT: a. Transmittal letter (pages v-xiv): provides a general overview of economic and budgetary factors that impact the City. b. Opinion (pages 1-4): 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 includes 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 to those used by private corporations. That section is followed by financial statements for each fund. e. Statistical Section (pages 181-end): the unaudited statistical section of the ACFR includes relevant historical data. 5. Fund Balances - A complete listing of fund reserves and designations for all major funds is shown on page 76 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 2021-22 does not note any 94 Attachment 1 findings. This information is presented as a separate document and is included as Attachment 3. 95 City of Dublin CALIFORNIA ANNUAL COMPREHENSIVE FINANCIAL REPORT Fiscal Year ended June 30, 2022 96 City of Dublin Dublin, California Annual Comprehensive Financial Report For the year ended June 30, 2022 Prepared by: Administrative Services Department J 97 City of Dublin Annual Comprehensive Financial Report For the year ended June 30, 2022 Table of Contents, Continued Page 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 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 98 City of Dublin Annual Comprehensive Financial Report For the year ended June 30, 2022 Table of Contents, Continued Page FINANCIAL SECTION, Continued Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position 46 Statement of Changes in Fiduciary Net Position 47 Notes to Basic Financial Statements 51 Required Supplementary Information (Unaudited): Defined Benefit Pension Plan Schedule of the City's Proportionate Share of the Net Pension Liability - Last 10 Years 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 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 11 99 City of Dublin Annual Comprehensive Financial Report For the year ended June 30, 2022 Table of Contents, Continued Page FINANCIAL SECTION, Continued Non -Major Governmental Funds: Combining Balance Sheet 116 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 124 Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 131 Internal Service Funds: Combining Statement of Net Position 170 Combining Statement of Revenues, Expenses and Changes in Net Position 172 Combining Statement of Cash Flows 174 Custodial Funds: Combining Statement of Fiduciary Net Position 178 Combining Statement of Changes in Fiduciary Net Position 179 STATISTICAL SECTION (Unaudited) Net Position by Component 182 Changes in Net Position 184 Fund Balances of Governmental Funds 186 Changes in Fund Balances of Governmental Funds 188 Assessed Value of Taxable Property 190 Direct and Overlapping Property Tax Rates 192 Principal Property Taxpayers 194 Property Tax Levies and Collections 195 Direct and Overlapping Debt 196 Legal Debt Margin Information 198 Demographic and Economic Statistics 200 Property Value, Construction, and Bank Deposits 201 Principal Employers 202 Full -Time Equivalent City and Contract Government Employees by Function 206 Operating Indicators by Function/Program 208 Capital Asset Statistics by Function/Program 210 Top 25 Sales Tax Producers 212 Miscellaneous Statistical Data 213 111 100 This page intentionally left blank iv 101 .T4 DUBLIN CALIFORNIA THE NEW AMERICAN BACKYARD City Council 925.833.6650 City Manager 925.833.6650 Community Development 925.833.6610 Economic Development 925.833.6650 Finance/IT 925.833.6640 Fire Prevention 925.833.6606 Human Resources 925.833.6605 Parks & Community Services 925.833.6645 Police 925.833.6670 Public Works 925.833.6630 100 Civic Plaza Dublin, CA 94568 P 925.833.6650 F 925.833.6651 www.dublin.ca.gov December 20, 2022 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, 2022. 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 for the preparation of the City's financial statements. Management is committed to maintaining 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 and 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, 2022. The independent auditor's report has been included in this Annual Comprehensive 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 in the East Bay of the San Francisco Bay Area, approximately 30 miles east of San Francisco and approximately 30 miles northeast of San Jose. In 2011, the City of Dublin was named an "All -America City" by the National Civic League. 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 99 full-time equivalent City employees in the Fiscal Year 2021-22, in addition to temporary and contract personnel. According to the California Department of Finance as of May 2022, the City of Dublin serves a population of 68,482, which excludes group quarters (4,450), and covers 14.91 square miles. The City's strategic location offers opportunities for employers, retailers, and high -quality residential and transit - oriented neighborhoods. The City operates under the Council -Manager form of government. Policy - making and legislative authority are vested in the City Council, which consists of a directly elected Mayor, who serves a two-year term, and four at -large Council members each elected to a four-year term. The City Council is responsible for the City's ordinances, operating resolutions, adoption of 102 the annual budget, hiring the City Manager and City Attorney and confirming the appointments made by the Mayor to commissions and committees. The City Manager is responsible for implementing the policies, ordinances, and directives of the City Council, overseeing the day-to-day operations of the City, and the appointments of the City's departments. The City Attorney provides legal counsel on City business, drafts and reviews ordinances, resolutions, and contracts, and represents the City in certain litigation. The City's biennial budget serves as the foundation for the City's financial planning and control. The operating budget is adopted by the City Council on an annual basis prior to July 1 of each year. During mid -cycle, a review and update are prepared and presented to the City Council for the adoption of the second year's budget. The City Council exercises budgetary control at the fund level. Formal budgetary integration is employed as a management control device during the fiscal year for the General Fund, Special Revenue Funds, Capital Projects Funds, Enterprise Funds, and Internal Service Funds. The budgeted funds are adopted on a basis consistent with GAAP in the United States. Expenditures may not legally exceed budgeted appropriations at the fund level. Management does not have the authority to increase the budget without the approval of the City Council. However, the City Manager may authorize budgetary transfers from one account to another within the same fund, appropriate funds from Committed and Assigned fund balances that have been approved by the City Council for specific purposes, and appropriate funds for asset replacement funded by the City's Internal Services Replacement funds. Current City services include the City Manager's Office (including General Administration, Human Resources/Risk Management, Communications, City Clerk/Records, Disaster Preparedness, Information Systems, and Economic Development), Administrative Services (Finance), 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 150.48 FTE contract employees were included in the City budget in Fiscal Year 2021-22. HIGHLIGHTS Dublin, California has long been known as the "crossroads" of the Bay Area. Dublin sits at the intersection of two major highways: Interstate 580 and Interstate 680. The City delivers a broad range of community services and has a wide range of housing types available to meet the demands of various employers throughout the region. Over the past several years residential builders and developers have constructed a variety of new housing options, which include a mix of transit -oriented development adjacent to the City's two Bay Area Rapid Transit (BART) stations, as well as single-family homes and condominium / townhome developments. The proximity to job centers, 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 voter -approved 1994 Eastern Dublin Specific Plan. This vision has allowed a strong foundation with quality neighborhoods and public facilities to be built citywide. New developments in the Downtown Dublin Specific Plan area 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 community -serving 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 103 vi community's long-term fiscal health to continue to provide high -quality services, particularly as the City reaches build -out. Key City activities and accomplishments during Fiscal Year 2021-22 include the following: Economic Development In Fiscal Year 2021-22, the City continued its Business Concierge Program helping new and existing businesses with opening new sites in Dublin and expanding or relocating in Dublin, as well as its business incentives efforts to assist with the attraction and retention of businesses. The City welcomed many new businesses to Dublin in the dining, services, and retail sectors such as Paik's Noodles, S&G Carpet and More, uBreakiFix, SummerWinds Nursery, Prima Vini Wine Merchants, Brooks Motor Cars, Dublin Kia Auto Dealership, Mr. Biryani, Xiaopei Chinese Dance, Heyday Dental, The Camp Transformation Center, Nara Sushi, Pho Dublin, ACE Hardware, Sephora, Dublin Pediatric Dentistry and Orthodontics, OpSec Security, Mimi's Chocolates, Hively Family Resource Center, NC Marble and Stone Pavers, Bravas, Caltronics, DOMA, BayOptiks, Xpress Eat, Mindart Studio, Crumbl Cookies, Volvo Cars Dublin, Mandarin Delight, and Radiant Waxing. Also in Fiscal Year 2021-22, the City Council took multiple actions including supporting a local recovery campaign, "To Dublin with Love," two Community Benefit Program Agreements for two separate affordable housing development projects in the Downtown, three Commercial Facade Improvement Grants to assist with signage and building frontage improvements, and renewal of the Tri-Valley Tourism Marketing District. COVID-19 Pandemic & Recovery Economic Development staff continued its COVID-19-related newsletters and programs, which included a COVID-19 Business Impacts webpage that provides timely and relevant updates, and the Dublin Business Brief eNewsletter that addresses COVID-19-related announcements. The City also launched two COVID-19-related small business support programs: the Commercial Rent Relief Grant Program (CRRGP) and Outdoor Operations Grant Program (OOGP). The CRRGP provided a one-time $10,000 grant to 100 qualified small business tenants who had at least $10,000 or more in rent arrears due to the pandemic. The OOGP aided local eating establishments and retailers in Dublin who were looking to provide an outdoor area for dining or shopping. In addition, Economic Development staff developed the Business Recovery Playbook: A Post -Pandemic Strategic Action Plan. The objective of the Playbook is to assess the current business climate, build upon current efforts, and implement new strategies to help offset the negative effects of COVID-19. During the fiscal year, several of the Playbook's objectives were met, including the assessment of the business climate by conducting the Dublin Business Needs Survey; enhancing communications, such as implementing the Mobile Text Communication Program; hosting a roundtable for the food and beverage business community; and creating the Small Business Webinar Series and hosting webinars on Labor Challenges and Successful Social Media. Implementation of the Playbook's remaining objectives continued into Fiscal Year 2022-23. The #DublinEats campaign underwent a rebranding effort and was reprogrammed as the "Taste the World in Dublin" campaign to offer residents an easy online passport. Participants who check in to five participating restaurants are then awarded a $25 gift card to a Dublin restaurant. The City also partnered with the Tri-Valley Career Center in co -hosting the Spring Job Fair which provided an in -person opportunity for employers and jobseekers to connect. 104 vii Lastly, the City Council approved amendments to the City's Zoning Ordinance to facilitate outdoor seating for eating and drinking establishments on both a permanent and long-term, temporary basis. The amendments included increasing the number of outdoor seats allowed without providing additional parking spaces. Community Development Housing Element Update The City recently completed the preparation of the State -mandated Housing Element Update for the 2023-2031 Planning Period. In accordance with State requirements, the Housing Element Update includes policies to accommodate the City's Regional Housing Needs Allocation (RHNA). The City's RHNA for this planning period is 3,719 units. The City submitted the draft Housing Element Update to the California Department of Housing and Community Development (HCD) for review. The City held public hearings to adopt the Housing Element Update in October and November 2022. Affordable Housing The City continued to further the City Council's strategic goal to facilitate the production of affordable housing. The City facilitated the acquisition of a 1.3-acre site, valued at approximately $5 million, at no cost to Eden Housing. The site is located on Regional Street in Downtown Dublin and will be the future site of the Dublin Senior Affordable Apartments development. The City allocated $5 million of the City's share of the Alameda County Measure A-1 Bond Funds to the project and additionally secured a $3.3M Local Housing Trust Fund Grant to help further facilitate the development. During the past year, the City approved the Site Development Review Permit and all necessary entitlements for Eden Housing to construct a 113-unit affordable housing project for seniors. The City secured a $3.3 million Local Housing Trust Fund Grant from the State of California for the 300- unit Amador Station/BRIDGE Housing affordable rental project. This grant is in addition to the $7.1 million from the City's Affordable Housing Fund and $2.9 million of the Alameda County Measure A-1 Bond Fund that the City has allocated to this project. City Staff continues to work with the Alameda County Surplus Property Authority to acquire an approximately two -acre site near the East Dublin BART Station. The acquisition would be at low/no cost to an affordable housing developer to facilitate the creation of an affordable housing development on this site. Staff is working with Eden Housing on a proposal to construct approximately 100 units of workforce housing affordable to lower income households. The City also continued to take steps to facilitate the construction of accessory dwelling units (ADU), including preparation of an ADU Manual and website. The website serves as a one -stop -shop for information and resources to assist residents with building an ADU on their property. Key features of the webpage include the permit -ready plans, the ADU manual, information about fee waivers that have been granted by the City, and a list of resources to assist residents looking to construct an ADU on their property. Senate Bill 9 Amendments to the Dublin Municipal Code The City amended the Dublin Municipal Code to implement the California Housing Opportunity and More Efficiency (HOME) Act, also known as Senate Bill 9. The amendments allow homeowners to split their single-family lot and/or build additional units on an existing lot. The amendments also establish affordability requirements and objective design and development standards for projects allowed by SB 9. 105 viii SCS Dublin The SCS Dublin project is located on 76 acres of land in eastern Dublin that is largely surrounded by development. The City completed a year -long community outreach process to gain feedback about the future land use plan for this site. This included engaging the Urban Land Institute and a consultant team to help inform the creation of a preferred plan. The City Council approved that Preferred Plan in February 2022. In November 2022, the City Council approved amendments submitted by the applicant to the General Plan and Eastern Dublin Specific Plan to effectuate the Preferred Plan. Public Safety Dublin Police Services continued its crime enforcement and community policing programs during Fiscal Year 2021-22, including the National Drug "Take -Back Initiative" event to collect prescription drugs, community engagement events such as National Night Out and "Coffee with a Cop," as well as Tobacco Permit Compliance Operations to ensure youth are safe from businesses selling tobacco products to minors. The City continued to incorporate new technology, like Situational Awareness cameras and additional License Plate Reader cameras, to enhance the ability to investigate crimes throughout the Community. Dublin was awarded a $65,000 grant from the California Office of Traffic Safety (OTS) for a year -long program of special enforcement and public awareness efforts to prevent traffic -related deaths and injuries. Dublin was also awarded an $870,000 grant from the California Department of Justice for a three-year tobacco enforcement and education program. The grant funds include the salary and benefits for an additional School Resource Officer (SRO) bringing the total number of SROs to three and enhancing the enforcement of the illegal use of tobacco at our schools and surrounding areas. Also, in Fiscal Year 2021-22 the City approved the addition of the Behavioral Health Unit for Dublin Police Services. Two clinicians and a supervisor were added to the team to help bridge the gap in services between law enforcement and mental health services. The clinicians also serve as victim advocates, provide assistance in obtaining services for the unhoused, and assist families with special needs juveniles. The Behavioral Health Unit has enhanced the overall service that Dublin Police Services provides to the community. Public Works Intergovernmental Relations The City continued to provide janitorial, pest management, and solid waste and recycling services on Camp 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 to provide Dublin San Ramon Services District (DSRSD) landscape maintenance and weed abatement services through the Tri-Valley Intergovernmental Reciprocal Services Master Agreement. 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 GHG-free electric power. On April 5, 2022, the City Council adopted a resolution requesting the City's electric power provider, East Bay Community Energy, to default all non-residential accounts to Renewable 100 power, which provides 100% renewable and 100% GHG-free electricity. To reduce litter and maintenance associated with trash pickup and to help comply with Senate Bill (SB) 1383 requirements, Public Works purchased new three -stream waste collection containers and deployed them at locations around the City including at the entrance to the Iron Horse Trail at Amador Valley Boulevard, at several locations along Village Parkway, and at The Wave. The containers are color - coded and include signage to help identify the proper container to dispose of waste. 106 ix Infrastructure and Capital Improvement Projects The following major capital improvement projects were completed during Fiscal Year 2021-22: Annual Street Resurfacing (2021 Slurry Seal) The project included seal coating a total of approximately 2.3 million square feet of asphalt, 41,000 square feet of asphalt pavement repair, and 2,600 square feet of resurfacing. Butterfly Knoll Park The project constructed a 1.08-acre neighborhood square in the Tassajara Hills Development. The square includes a picnic area with shade structure, fitness area, playgrounds for children ages 2-5 and 5-12, informal lawn area, landscaping, butterfly garden, and pathways for circulation. Dublin Heritage Park Cemetery Improvements The project provided for the restoration of the tree allee along Hawthorne Lane and landscape improvements throughout the site, the addition of shade structure and improvements to the courtyard adjacent to Old St. Raymond's Church, and the renovation of existing pathways within the cemetery. The City has also undertaken or continued work on the following major capital improvement projects in Fiscal Year 2021-22: 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, back-up generators, and advanced control systems. Cultural Arts Center The project will design and construct a 13,000-square-foot Cultural Arts Center on the first floor of the former Dublin Police Services Building at the Civic Center and will renovate the second -floor space to accommodate offices for the Parks and Community Services Department. Don Biddle Community Park The project is for the completion of a 30-acre community park adjacent to the Boulevard Development. Amenities include tennis courts, basketball courts, a picnic and barbeque area, two restroom buildings, two parking lots totaling a great lawn (multi -use lawn area), playgrounds, parent paddock, and community garden. The park opened to the public in September 2022. 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 1.5-mile 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. Fallon Sports Park - Phase 3 The project is the final 14-acre phase of construction for the 60-acre sports complex. This final phase includes a cricket field, lighted batting cages, four volleyball courts, play area, and two little league baseball fields. Phase 3 opened to the public in October 2022. 107 X Iron Horse Trail Bridge at Dublin Boulevard The project will construct a 230-foot free -span pedestrian and bicycle bridge for the Iron Horse Trail over Dublin Boulevard. Wallis Ranch Community Park The project will design and construct an 8.75-acre community park which will include a 0.9-acre dog park, lighted pickleball, tennis, and basketball courts, a 25-stall parking lot, picnic areas, two playground areas, a large turf area, landscaping, and pathways for circulation. Tassajara Road Improvements — North Dublin Ranch Drive to Quarry Lane School The project will design and construct street improvements for Tassajara Road to a four -lane 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. Parks & Community Services In Fiscal Year 2021-2022, the Parks and Community Services Department (PCS) continued to recover from the COVID-19 pandemic by transitioning back to in -person programs and events with safety protocols in place. The Wave opened with limited operating hours and the number of patrons allowed. Through planned improvements, PCS also continued working to improve and enhance its many parks and facilities. As Fiscal Year 2021-22 ended, PCS transitioned back to the normal operations of community centers, all special events, The Wave, classes, programs, and sports leagues. Registration numbers were also on their way to a full recovery. A number of Public Art projects were completed, including the installation of "Metamorphosis" at Butterfly Knoll Park, the completion of the Recovered Wood art project, and the 40" Anniversary Lawn Display special temporary art project. Planning and selecting the next round of Utility Box Art, which included 10 utility boxes, was completed. The Community Art Gallery took place at Splatter, and the Annual Nature in Your Backyard Photo Contest was held. The selection and approval of the Heritage Park Public Art project of a memorial sculpture and artistic park features were completed. The 2022 Parks and Recreation Master Plan was completed. The Master Plan establishes goals, standards, guiding policies, and an action plan to guide the development and management of Dublin's parks and recreation facilities through the build -out of the City. The Adopt -A -Bench program was initiated and approved by the City Council. PCS began the planning and implementation for a yearlong celebration of the 40' anniversary of the City of Dublin's incorporation. The official kickoff was at a reception on February 1, 2022, prior to the City Council meeting. Many activities took place during the year, and Dublin's special events each highlighted the anniversary in a special way. Heritage Park and Museums hosted a special 40" Anniversary exhibit. Financial Outlook The COVID-19 pandemic created not only a public health crisis in 2020, but an economic crisis that continued into 2021 with falling employment levels and the steepest quarterly decline in Gross Domestic Product (GDP) on record. In mid-2021 the economy began to rebound, as could be seen with several key economic indicators: GDP rose, unemployment dropped, and consumer confidence rose. In Fiscal Year 2021-22, The City continued to rebound from the effects of the COVID-19 pandemic, home prices continuing to remain strong, and spending continued to increase as businesses resumed 108 xi normal activities. Charges for Services revenue increased to pre-COVID levels, as more classes and activities resumed in addition to the City bringing additional fields and courts online for rent. The overall effect of improving economic conditions resulted in local revenues exceeding budget projections. Staff is cautiously optimistic but are carefully monitoring the effects of potential areas of concern, including soaring inflation, increasing interest rates, and uncertainty of the economy's reaction to the Russian invasion of Ukraine. Property Tax revenue in Fiscal Year 2021-22 increased as housing prices remained strong, with an increase in net taxable assessed valuation of $1.2 billion (6.08%) over the prior year. Property Tax revenues have continued to increase as home values continued to grow and new developments have come to fruition within the City. There were no significant delinquencies in the fiscal year. Overall Sales Tax came in $1.5 million (6.0%) higher than Fiscal Year 2020-21, as businesses continued to rebound from COVID-19-related shutdowns. Originally, a projected year -over -year decrease of Sales Tax was anticipated in the Adopted Budget due to uncertainty surrounding COVID-19, but strong sales in the Autos and Transportation sector, Fuel and Service Stations, and Restaurants and Hotels exceeded the updated mid -year projections. In Fiscal Year 2022-23, the City is projecting Sales Tax revenue remains flat from Fiscal Year 2021-22 receipts, due to the uncertainty surrounding inflation and rising interest rates. Development -related revenue is the third largest City revenue stream, making up 9.9% of total General Fund revenues in Fiscal Year 2021-22. Year-end development revenue came in at $9.8 million, an increase of $2.4 million (32.6%) from Fiscal Year 2020-21, attributed to an increase in activity based on development project timelines. As development revenue can significantly vary year to year based on the nuances of specific projects, the Fiscal Year 2022-23 Adopted Budget reflects a decrease in revenue in the near term, declining further again as large-scale 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 Fiscal Year 2021-22 finished with a General Fund surplus of approximately $14.1 million including General Fund transfers, long-term fiscal sustainability remains at the forefront of budget discussions. Despite the continued growth in Property Tax that was occurring prior to COVID-19, declining and/or leveling of Sales Tax and Development Revenues, the rising costs of contracted services, and the potential for an economic downturn in the next few years, the City anticipates facing a deficit beginning in Fiscal Year 2029-30 as illustrated in the 10-Year Forecast (Figure 1). The projected deficit will guide the use of reserves and decisions made in the next operating budget cycle. 109 xii Figure 1. 10-Year Forecast 1000:41Q 22-23 7.1w24 24-26 2S-26 26-27 27-26 28-29 29-30 30,31 31-32 sOtlxr Re4-enac Chains Foe Senrce+ ale IntErgovet ime tid - Rentals mad Leases Interest - Imes AE Peti tires • Lie.eru s & Pe.eliii5. Other T232ei DemLapmeni Sales Tax - Nev.:wry Tax*s —TcybulExpenglitturs Financial Planning and Policies In June of 2022, the City Council adopted the City's Fiscal Year 2022-23 and 2023-24 Budget. As in previous years, the primary goals addressed in this budget cycle are: 1) fully fund current City operations; 2) fund future capital endeavors now through the setting aside of specific reserves; and 3) maintain adequate operating reserves over the long term. In addition, the Two -Year Strategic Plan includes a focus on infrastructure maintenance and reinvestment, and organizational health, both of which have budget implications. The City adopts a balanced operational budget in accordance with City policies and uses a two-year budget format. The City Council adopts a final budget and appropriates funds in advance of the July 1st start of the new Fiscal Year. In terms of major capital investments constructed with Impact Fees, the City has historically operated utilizing a pay-as-you-go philosophy. The City has typically operated with little to no debt financing, but due to the historically low interest environment in the first quarter of Fiscal Year 2021-22, the City Council authorized the issuance of 25-year 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 rights -of -way, and other City -owned property. Renewable, resiliency, and disaster preparedness improvements to 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 City has established a reserve to fund future bond payments or to pay off the bonds early, should the opportunity or necessity occur. 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. 110 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, 2021. A copy of the award from this entity is included in this report. This award represents 31 consecutive years 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 Wendy Lam, 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 City Manager Lisa Hisatomi Director of Administrative Services xiv 111 CITY OF DUBLIN PRINCIPAL OFFICERS Fiscal Year 2021/2022 Mayor Melissa Hernandez Vice Mayor Councilmember Jean Josey Sherry Hu Councilmember Councilmember Shawn Kumagai 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 Sarah Monnastes Parks & Community Services Director Jackie Dwyer Public Works Director Andrew Russell 112 Organizational Chart Citizens of Dublin City Council I I I City Attorney City Manager Fire Services J Economic Development Assistant City Manager Non- _ Departmental Public Works - J Information Systems k Police Services J Community Development City Clerk Administrative Services L_ Parks and Community Services Human Resources xvi 113 0 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Dublin California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2021 Executive Director/CEO 114 xvii This page intentionally left blank 115 xviii 1 IN I BADAWI&ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Dublin (City), as of and for the year ended June 30, 2022, and the respective budgetary comparisons for the General Fund and the Affordable Housing Special Revenue Fund, and the related notes to the financial statements, which collectively comprise City's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements 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, 2022, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparisons for the General Fund and the Affordable Housing Special Revenue Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The City's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 116 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, and the required pension and OPEB schedules on pages 5-20 and 95-97 be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 2 117 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 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. Supplementary 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 combining and individual nonmajor fund statements and the budgetary comparison schedules for the major capital project funds and nonmajor governmental funds are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund statements and the budgetary comparison schedules for the major capital project funds and nonmajor governmental funds are the responsibility of management and were derived from and relates 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, the combining and individual nonmajor fund statements and the budgetary comparison schedules for the major capital project funds and nonmajor governmental funds are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the information included in the annual comprehensive financial report but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3 118 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 2, 2022 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 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. 3.1. Badawi & Associates, CPAs Berkeley, California December 2, 2022 4 119 Management's Discussion and Analysis (MDA) June 30, 2022 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, 2022. Please read this overview in conjunction with the accompanying letter of transmittal and the accompanying basic financial statements. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City's basic financial statements, which comprise three components: • Government -wide Financial Statements — These include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the City as a whole and about the overall financial condition of the City in a manner similar to a private -sector business. • Fund Financial Statements — These statements provide additional information about the City's major funds, including how services were financed in the short term and fund balances available for financing future projects. • Notes to the Financial Statements — The notes provide additional detail that is essential to a full understanding of the information provided in the Government -wide and Fund Financial Statements. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's progress in funding its obligation to provide pension benefits to its employees. GOVERNMENT -WIDE FINANCIAL STATEMENTS - DESCRIPTION These statements include all assets and liabilities of the City, using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All current year's revenues and expenses are accounted for regardless of when the cash is paid or received. These statements report the City's net position and changes to the net position during the FY. Net position - the difference between assets and liabilities - are one way to measure the City's financial position. Over time, increases or decreases in the net position are among indicators used to assess whether the financial condition of the City is improving or deteriorating. However, it is also important to consider other nonfinancial factors, such as: changes in the City's property tax values, sales tax outlets, and the condition of the City's infrastructure (i.e. parks and streets), to accurately assess the overall health of the City. The Government -wide statements present information about the City's activities, all of which are considered governmental in nature. These include services provided for police, fire, community development, streets, and 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. 5 120 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. TABLE 1: SUMMARY OF NET POSITION June 30, 2022 and 2021 Governmental Activities June 30, 2022 June 30, 2021 $ Change % Change Item Current and Other Assets $ 384,956,065 $ 337,855,134 $ 47,100,931 13.9% Notes Receivable (Note 5) 14,549,568 15,598,828 (1,049,260) -6.7% Lease Receivable (Note 6) 2,686,338 - 2,686,338 100.0% OPEB Asset (Note 12) 9,048,738 4,087,651 4,961,087 121.4% Capital Assets (Note 7) 554,600,283 537,970,763 16,629,520 3.1% Total Assets 965,840,992 895,512,376 70,328,616 7.9% Deferred Outflows of Resources 4,137,105 4,464,343 (327,238) -7.33% Current Liabilities 34,016,977 23,168,959 10,848,018 46.8% Noncurrent Liabilities 29,104,950 17,501,236 11,603,714 66.3% Total Liabilities 63,121,927 40,670,195 22,451,732 55.2% Deferred Inflows of Resources 17,137,969 2,983,975 14,153,994 474.3% Net Investment in Capital Assets 543,185,634 537,970,764 5,214,870 1.0% Restricted 118,161,236 107,140,245 11,020,991 10.3% Unrestricted 228,371,331 211,211,541 17,159,790 8.1% Total Net Position $ 889,718,201 $ 856,322,550 $ 33,395,651 3.9% As illustrated in the above table, the City's net position increased by $33.4 million (3.9%) during FY 2021- 22. This is due to the following: • Total assets increased $70.3 million, due primarily to increases in cash and investments which is part of current assets and capital assets. Cash and investments increased by $47.1 million which mostly derived from the net revenue off the expenditures for the fiscal year. Capital assets increased by $16.6 million due to the progression of capital projects during the year (i.e. $12 1 million on Citywide Energy Improvements, $5.8 million on Fallon Sports Park Phase 3 and $5.7 million on Don Biddle Community Park Project). • Total liabilities increased in FY 2021-22 with a net difference of $14.2 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 $10.8 million increase in current liabilities reflects the City's increase in unearned revenue from the unspent grant monies and increase in accounts payable. The $11 6 million increase in noncurrent liabilities was due primarily to the City's 2021 Lease Revenue Bond addition offset by a decrease in net pension liability. 6 121 • The City's $543.2 million in net investment in capital assets represents 61.1% of total reported net position. Capital asset investments include the City's investments in land, infrastructure, buildings, and equipment. As the City uses these capital assets to provide current services to residents, the assets are not available for future spending. The change in annual capital assets reflects the addition of capital assets (including Construction in Progress) less accumulated depreciation. • Restricted net positions, including a portion of restricted net positions in the General Fund, Affordable Housing Fund, Impact Fee Funds, and Grant Funds, are resources that have external restrictions on their use. In FY 2021-22, the City's restricted net positions increased by a net of $11.0 million, attributed to repayment of the acquisition cost for the Regional Street site from the Affordable Housing Fund and the Dublin Crossing Contribution. Approximately $228.3 million of the City's total assets (an increase of $17.2 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. 7 122 GOVERNMENTAL ACTIVITIES Table 2 below provides a summary of major program expense categories, program revenues used to fund specific expenses, and general City revenues available for funding all City programs. The information presented here provides detail behind the numbers shown in the Summary of Net Position (Table 1). TABLE 2: SUMMARY OF CHANGES IN NET POSITION June 30, 2022 and 2021 Revenues Program Revenues Charges For Services Operating Contributions & Grants Capital Grants & Contributions Total Program Revenue General Revenues Property Taxes Special Assessments Taxes Sales Taxes Other Taxes Investment Income, Unrestricted Intergovernmental, Unrestricted Other General Revenues Total General Revenue Total Revenues Expenses Governmental Activities: General Government Police Fire Public works and Transportation Park and Community Services Community Development Interest on long-term debt Total Governmental Activites Increase In Net Position Net Position - Beginning of Year Net Position - End of Year June 30, 2022 June 30, 2021 $ Change % Change $ 27,660,672 7,273,101 16,457,860 51,391,633 55,186,388 1,527,036 27,935,894 8,281,142 (12,803,156) 324,519 8,277,075 88,728,898 140,120,531 23,516,577 24,439,146 14,657,052 25,252,334 11,745,611 6,777,210 336,950 106,724,880 33,395,651 856,322,550 $ 889,718,201 $ 20,455,759 5,545,115 5,674,477 $ 7,204,913 1,727,986 10,783,383 35.2% 31.2% 190.0% 31,675,351 19,716,282 62.2% 53,007,086 2,179,302 4.1% 1,550,479 (23,443) -1.5% 26,289,165 1,646,729 6.3% 7,185,319 1,095,823 15.3% (975,548) (11,827,608) 1212.4% 300,618 23,901 8.0% 2,250,111 6,026,964 267.9% 89,607,230 (878,332) -1.0% 121,282,581 23,710,251 24,681,714 15,227,074 23,769,070 9,327,718 11,384,023 108,099,850 13,182,731 843,139,819 18,837,950 15.5% (193,674) -0.8% (242,568) -1.0% (570,022) -3.7% 1,483,264 6.2% 2,417,893 25.9% (4,606,813) 3.0% 336,950 100.0% (1,374,970) -1.3% 20,212,920 153.3 13,182,731 1.6% $ 856,322,550 $ 33,395,651 3.9% As shown in Table 2, revenues from all sources totaled $140.1 million and expenses for all City programs totaled $106.7 million in FY 2021-22. The City's net position increased $33.4 million 8 123 Revenues Total revenues increased $18.8 million, or 15.5%, in FY 2021-22 from the prior year. Details of changes are as follows: • Capital Grants and Contributions showed an increase of $10.8 million due to the payment of impact fees for a five -story apartment building project as well as final map fees paid for three neighborhoods in the Dublin Crossing project. • Charges For Services increased $7.2 million, resulting from an increase in Parks and Community Service programs and events as they recovered from COVID-19 pandemic. • Property Taxes increased $2.2 million, resulting from an increase to overall assessed property valuations from the number of new homes built since last fiscal year, the number of property sales, and the annual increase to taxable valuations. • Sales Taxes increased $1.6 million as the result of the steady economic recovery and businesses resuming normal activities as the COVID-19 regulations relaxed. • Other General Revenue increased $6.0 million, resulting from American Rescue Plan Act grant and repayment of the acquisition cost for the Regional Street site from the Affordable Housing Fund. • Investment Income decreased significantly when accounting for the unrealized loss on investments at year end. An unrealized loss of $11.0 million in FY 2021-22 along with the reversal of a $4.5 million unrealized gain on prior year investments, led to a $15 5 million negative unrealized gain adjustment and slightly lower interest revenue earned cause an overall decrease of $11.8 million. Expenses Total expenses decreased $1.4 million, or 1.3%, in FY 2021-22 compared to the prior year. The following factors contributed to the decrease: • Community Development expenses decreased $4.6 million due to a $5.0 million land purchase for the Regional Street Dublin Family Affordable Apartment development project made in FY 2020- 21, using a developer contribution. • Public Works expenses increased $1.5 million, attributed primarily to increased costs in contracted services for maintenance and development -related projects. • Parks and Community Services expenses increased by $2.4 million due primarily to the higher volume of recreation programs offered after COVID-19 pandemic limitations, which increase seasonal staff salaries, contract services costs for recreational instructors, and operating supplies costs. The increase in expenditures is offset by the increase in program revenues attributed to the recovery from the pandemic. 9 124 Revenues and Expenses by Category The following chart presents the Government -Wide FY 2021-22 revenues (in thousands). Approximately 79.1% of the total revenue is from three sources: 1) Property taxes, 39.4%; 2) Sales Taxes, 19.9%; and 3) Charges for Services, 19.7%. This is relatively consistent with the prior year. Sales Tax $27,936, 19.9% Special Assessments $1,527, 1.1% Property Taxes $55,186, 39.4 0 Investment Income -$12,803, -9.1% Intergovernmental $325, 0.2% Other General Revenue $8,277, 5.9% Charges for Services $27,661, 19.7% Operating Grants and Contributions $7,273, 5.2% Capital Grants and Contributions $16,458, 11.7% 10 125 The following chart demonstrates the allocation of Government -Wide expenses in FY 2021-22 (in thousands). Of the $106 7 million in total expenses, Public safety (Police and Fire Services), Public Works and Transportation are the largest program costs, making up a combined 60.3% of the total, followed by General Government and Parks and Community Services, at 22.0% and 11.0%, respectively. Parks & Community Servi c_e\ s $11,746, 11.0% Public Works and Transportation $25,252, 23.7% Fire Services $14,657, 13.7% FUND FINANCIAL STATEMENTS Community Development $6,777, 6.4% r Interest on LT Debt $337, 0.3% General Government $23,517, 22.0% Police $24,439, 22.9% 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. 11 126 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 9 funds: General Fund; Affordable Housing Fund; 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 fmancial 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 Custodial Funds. The Community Facilities District (CFD) No. 2015-1 "Dublin Crossing" Improvement Area No. 1, 2 and 3 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. 12 127 FINANCIAL ANALYSIS OF THE GOVERNMENTAL FUNDS As of June 30, 2022, the City's governmental funds reported combined ending fund balances of $345.9 million, an increase of $33.9 million from the prior year. Table 3 below illustrates the net change in fund balances over the prior year for these funds. A discussion of the changes follows the table; individual and non -major funds may be found in the Supplemental. TABLE 3: GOVERNMENTAL FUND BALANCE CHANGES June 30, 2022 and 2021 General Fund Affordable Housing Fund Capital Improvement Funds Other Governmental Funds Total Governmental Funds GENERAL FUND June 30, 2022 $ 223,857,506 29,913,316 63,139,381 29,010,964 June 30, 2021 $ Change $ 209,764,496 24,488,291 59,059,972 18,738,644 $ 345,921,167 $ 312,051,403 $ 14,093,010 5,425,025 4,079,409 10,272,320 $ 33,869,764 % Change 6.7% 22.2% 6.9% 54.8% 10.9% The General Fund is the chief operating fund of the City. At the end of FY 2021-22, total fund balance was $223.9 million The unassigned amount of $53.0 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 $64.0 million, representing approximately 8.2 months of budgeted FY 2022-23 expenditures. The remaining balances are committed or assigned in accordance with the policy adopted by the City Council as discussed in Note 9 to the financial statements. During FY 2021-22, General Fund revenues exceeded expenditures by $33.7 million, before transfers in/out and recognition of unrealized gains. Compared to the prior year, General Fund operating revenues came in $11.4 million higher, from $103.3 million in FY 2020-21 to $114.7 million in FY 2021-22. Total revenues, including a negative unrealized gain adjustment of $15.5 million, is $99.1 million, a decrease of $0 2 million from the prior year. Operating expenditures in General Fund departments totaled $80.9 million in FY 2021-22, staying nearly $8.4 million under the final budget (not including transfers out), and coming in $6 8 million higher than actual expenditures in the prior year. The increase was primarily due to the first payment on the City's debt service for the Citywide Energy project; an increase in overall costs for the City's Parks and Community Services Department for programs recovering from COVID, and overall increases in contracted services for Police, Fire and Maintenance. AFFORDABLE HOUSING FUND The Affordable Housing Fund is a special revenue fund which accounts for funds associated with the affordable housing programs. The fund balance totaled $29.9 million as of June 30, 2022, an increase of nearly $5 4 million over the prior year, due to repayment of the acquisition cost for the Regional Street project. The fund balance includes an outstanding loan receivable of $14.4 million as of June 30, 2022. 13 128 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 2021-22 was $9.9 million (including interest earned), an increase of $8.6 million from the prior year, which was due primarily to the payment of $3.9 million in developer fees from Avalon West Dublin. 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. Approximately $10 9 million was utilized to fund General Improvement and Parks Capital Projects. This resulted in a net decrease in fund balance of $1.0 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 2021-22 was approximately $172,000 (including interest earned), approximately $95,000 higher than was collected in the prior year, due to payment received from new development projects. In addition, revenue 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 2021-22 totaled $2.2 million (including interest earned), approximately $1.0 million higher 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 Fund: This fund accounts for the Development Agreement fee, including Community Benefit payments collected from the Dublin Crossing project. Revenue collected in FY 2021-22 totaled $3.5 million (including interest earned), $1 7 million higher than was collected in the prior year due to the payment of Development Agreement fees received from Dublin Crossing, LLC. 14 129 NON -MAJOR FUNDS The City's non -major funds, which are Special Revenue Funds and Energy Improvement Lease Revenue Bond Capital Projects Fund, are presented in the basic financial statements in the aggregate. Total fund balance increased $10.3 million in these funds. Based on the designated use of the funds they can be arranged by function as shown in Table 4 below: TABLE 4: ANALYSIS OF FUND BALANCES - NON -MAJOR GOVERNMENTAL FUNDS, ARRANGED BY FUNCTION June 30, 2022 and 2021 SPECIAL REVENUE FUNDS: Public Safety Transportation Environmental Parks, Culture, Arts Health & Welfare Maintenance Districts CAPITAL PROJECTS FUND: Energy Improvement Lease Bond TOTAL FUND BALANCE June 30, 2022 June 30, 2021 $ Change % Change $ 890,825 8,992,430 1,674,520 4,386,681 11,396 4,015,196 9,039,916 $ 29,010,964 $ 860,430 6,941,162 1,781,358 4,395,485 760,179 4,000,032 $ 18,738,644 $ 30,395 2,051,268 (106,838) (8,804) (748,783) 15,164 3.5% 29.6% - 6.0% - 0.2% -98.5% 0.4% 9,039,916 100.0% $ 10,272,319 54.8% 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. The Energy Improvement Lease Revenue Bond Fund accounts for the proceeds from the City's issuance of lease revenue bonds and their use on energy efficiency capital projects. More information about these aggregated non -major funds can be found in the combining statements following the required supplementary information. 15 130 GENERAL FUND BUDGETARY HIGHLIGHTS A summary of the budgetary comparison schedule for the General Fund is shown in Table 5 below. The complete schedule, as required, is included in the supplementary information following the notes to the financial statements. TABLE 5: SUMMARY OF GENERAL FUND ORIGINAL AND FINAL BUDGET AND ACTUAL Period Ending June 30, 2022 REVENUE Taxes Intergovernmental Licenses and Permits Charges for Services Use of Money & Property Fines and Forfeitures Development Revenue Other Revenue Total Revenue EXPENDITURE General Government Police Fire Public Works Park and Community Services Community Development Debt Principal Total Expenditure OTHER FINANCING SOURCES (USES) Transfer In Transfer Out Total Other Financing Sources (Uses) Budget Amounts Original Final $ 81,163,706 285,000 313,434 5,268,891 2,220,768 107,432 7,721,318 1,317,231 $ 85,713,706 285,000 313,434 5,775,452 2,656,833 107,432 8,816,883 1,402,307 Actual Amount $ 89,577,737 324,519 354,643 8,022,099 (11,607,884) 70,714 9,803,444 2,580,106 Variance from Final Budget $ 3,864,031 39,519 41,209 2,246,647 (14,264,717) (36,718) 986,561 1,177,799 98,397,780 105,071,047 99,125,378 (5,945,669) 15,414,199 25,324,991 15,416,959 15,069,115 8,248,495 5,444,118 84,917,877 56,600 (5,038,550) (4,981,950) NET CHANGE IN FUND BALANCE $ 8,497,953 17,414,394 24,882,918 15,556,474 15,436,210 9,085,624 6,473,506 465,000 89,314,126 191,116 (16,846,223) (16,655,107) $ (898,186) 13,204,104 4,210,290 24,286,868 596,050 15,516,795 39,679 13,413,099 2,023,111 8,689,027 396,597 5,316,164 1,157,342 505,000 (40,000) 80,931,057 8,383,069 234,803 (4,336,114) (4,101,311) $ 14,093,010 43,687 12,510,109 12,553,796 $ 14,991,196 Over the course of the year, revisions were made to the City budget with adjustments that generally fall into one of the following three categories: • Adjustments to carry over operating budgets from the prior year. • Adjustments to carry over capital expenditure budgets, typically in the form of transfers out to capital improvement funds, from the prior year. • Adjustments to revenue and expenditure budgets based on current economic conditions, new revenue sources, and/or operational spending needs after the original budget was adopted. 16 131 In the General Fund total revenues was $5.9 million lower than the final budget as of June 30, 2022, due mainly to the following factors: • Taxes: $3.9 million higher than budget. Property tax came in $1.4 million higher than budget, as the result of an increase to overall assessed property valuations. Sales tax also came in $0.9 million higher due to increased spending that resulted as COVID restriction were lifted and/or reduced. Other increases were realized for transfer and hotel tax which contributed to a combined $0.9 million increase over budget. • Charges for Services: $2.2 million higher than budget. Parks and community service revenue came in higher than budget due to a significant increase in the recreation events and programs after the pandemic. • Use of Money & Property: $14.3 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 $1.3 million higher than budget, reflecting a better performance of the City's investments than was anticipated when the budget was developed. The City recognized an $11.0 million unrealized loss on current year investments and reversed the $4 5 million unrealized gain on prior year investments, for a net change of $15.5 million at the end of FY 2021-22. General Fund expenditures came in $8.4 million lower than the final budget, reflecting overall savings across departments. The following is a discussion of the changes. • General Government: $4.2 million lower than budget. Budget savings resulted from lower professional service contract expenditures in FY 2021-22. Nearly all City contract costs including library, legal, and other professional services came in lower than the budget. Some of the budget savings were due to City staff vacancies throughout the year. There was also an extra unfunded liability contribution to Ca1PERS that has not been deposited yet but is set aside in a General Fund designated reserve. • Public Works: $2.0 million lower than budget. Some of the budget savings resulted from lower contract services related to development projects, underspending of utilities expenditures due to utilization of less recycled water than anticipated due to drought restrictions, and the carry-over of workspace improvement projects from the prior year. • Community Development: $1.2 million lower than budget. The primary driver of fiscal year budget savings in this deparliuent 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. 17 132 CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets The City's investment in capital assets for its governmental activities as of June 30, 2022 amounts to $555 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 2021-22, the City's investment in capital assets increased by approximately $16.6 million (3.1 %), due primarily to additions to Construction in Progress net of the accumulated depreciation. TABLE 6: SUMMARY OF INVESTMENT IN CAPITAL ASSETS June 30, 2022 and 2021 Land Streets Right of Way Construction in Progress Infrastructure Buildings and Improvements Machinery and Equipment Subtotal Less: Accumulated Depreciation Total Net of Depreciation Governmental Activitie s June 30, 2022 $ 182,170,145 37,760,857 87,822,285 448,086,898 118,068,799 24,837,789 898,746,773 June 30, 2021 $ Change $ 182,170,145 $ 37,760,857 58,805,488 448,086,898 118,068,799 21,812,923 % Change 0.0% - 0.0% 29,016,797 49.3% - 0.0% - 0.0% 3,024,866 13.9% 866,705,110 32,041,663 3.7% (344,146,490) (328,734,347) (15,412,143) -4.7/0 $ 554,600,283 $ 537,970,763 $ 16,629,521 3.1 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 2021-22 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 7 to the financial statements. 18 133 TABLE 7: SUMMARY OF CAPITAL IMPROVEMENT PROJECT ACTIVITY As ofJune 30, 2022 PROJECT NAME ACTUAL FY 2021/22 STATUS GENERAL IMPROVEMENTS 12,978,975 Police Services Building 65,163 In Progress IT Infrastructure Improvement 121,428 In Progress Civic Center HVAC and Roof Replacement 110,982 In Progress Cultural Arts Center 211,225 In Progress Citywide Energy Improvements 12,124,804 In Progress Civic Center Rehabilitation 35,998 In Progress EV Charging Stations 5,128 In Progress Financial System Replacement 303,032 In Progress Audio Visual System Upgrade 859 In Progress Maintenance Yard Facility Improve 354 In Progress PARKS 13,400,686 Emerald Glen Park Recre & Aquatic 85,760 In Progress Don Biddle Community Park 5,652,281 In Progress Fallon Sports Park Phase 3 5,848,842 In Progress Public Art - Camp Parks Sign 17,134 In Progress Alamo Creek Pk and Assmt Dist Fence Repl 12,932 In Progress Dublin Heritage Park Cemetery Phase 1,159,801 In Progress Public Art -Don Biddle Community Park 577 In Progress Public Art - Butterfly Knoll Park 13,000 In Progress Public Art - Heritage Park 68,150 In Progress Restrooms Replacement 280 In Progress Jordan Ranch Neighborhood Square 17,928 In Progress Public Art - Sean Diamond Park 598 In Progress Wallis Ranch Community Park 317,615 In Progress Iron Horse Nature Park and Open Space 182,411 In Progress Imagine Playground at Dublin Sports Grou 23,378 In Progress STREETS 4,030,047 Tassajara Road Realignment and Design 109,550 In Progress Annual Street Resurfacing 1,392,908 In Progress Iron Horse Trail Bridge at Dublin Blvd 1,450,832 In Progress Tassajara Rd Impro - N Dublin to Quarry 323,012 In Progress Green Stormwater Infrastructure 301 In Progress Local Roadway Safety Plan 43,301 In Progress Dublin Blvd Extension 48,214 In Progress Downtown Dublin Street Grid Network 10,646 In Progress Dublin Ranch Street Light Improvements 280 In Progress San Ramon Road Trail Improvements 83,117 In Progress Citywide Bicycle & Pedestrian Improvmnts 412,990 In Progress Intelligent Trans Sys Upgrade 19,777 In Progress Citywide Signal Comm. Upgrade 135,118 In Progress TOTAL 30,409,708 19 134 DEBT In September of 2021, the City Council approved and authorized the creation of the Dublin Financing Authority to execute the sale and issuance of the 2021 Lease Revenue Bonds. The City received $20.6 million from the proceeds of the bonds, which will be solely used to finance the City's Energy Efficiency Capital Improvements. As of June 30, 2022, the outstanding principal amount of the bonds was $18,565,000. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The City continued to rebound from the COVID pandemic, both Property Tax and Sales Tax continue to grow, with home prices continuing to remain strong in the East Bay. Charges for Service revenue continues to increase to pre-COVID levels, as more classes and activities come back on line and the City brings additional fields and courts on line for rent. In the upcoming budget the City believes these trends will continue, with moderate growth in both Property and Sales Tax and Charges for Services projected to continue the growth trend. On the expenditure side, personnel costs (salaries and benefits) and contracted services costs (Police, Fire, and Maintenance) are anticipated to rise a combined 4.9% and 2.7% in the first and second year, respectively. In FY 2021-22 the City finished with a General Fund surplus and is projecting a surplus in each of the following two fiscal year budgets, but it is the long-term fiscal sustainability of the City that continues to be at the forefront of budget discussions. As the City reaches build out, based on conservative estimates, the City is projecting an operating deficit of $0.5 million in FY 2029-30. Accordingly, in the next budget cycle the City will focus not only on continuing to provide a high level of community services and maintain top-notch facilities, but also on considering 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. 20 135 BASIC FINANCIAL STATEMENTS This page intentionally left blank 22 137 GOVERNMENT -WIDE FINANCIAL STATEMENTS City of Dublin Statement of Net Position June 30, 2022 Primary Government Governmental Activities ASSETS Current assets: Cash and investments (Note 3) $ 367,202,354 Accounts receivable 16,340,672 Accrued interest receivable 1,020,548 Prepaids 392,491 Total current assets 384,956,065 Noncurrent assets: Notes receivable (Note 5) 14,549,568 Leases receivable (Note 6) 2,686,338 Net OPEB asset - City of Dublin (Note 12) 9,048,738 Capital assets (non -depreciable) (Note 7): Land 182,170,146 Streets right of way 37,760,857 Construction in progress 87,822,284 Capital assets (depreciable): Infrastructures 448,086,899 Building and improvements 118,068,800 Vehicles and equipment 24,837,787 less accumulated depreciation (344,146,490) Total capital assets 554,600,283 Total noncurrent assets Total assets DEFERRED OUTFLOWS OF RESOURCES Deferred outflows of resources related to pension (Note 11) Deferred outflows of resources related to OPEB - City of Dublin (Note 12) 580,884,927 965,840,992 3,623,447 513,658 Total deferred outflows of resources 4,137,105 See accompanying Notes to Basic Financial Statements 24 139 Primary Government Governmental Activities LIABILITIES Current liabilities: Accounts payable 18,581,604 Accrued wages and other payroll liabilities 640,131 Deposits payable 4,991,879 Contract retention payable 1,324,605 Other payables 238,750 Unearned revenue 6,460,090 Compensated absences - due within one year 1,124,918 Long-term debt - due within one year (Note 8) 655,000 Total current liabilities 34,016,977 Noncurrent liabilities: Claims payable 317,749 Compensated absences - due in more than one year 183,124 Long-term debt - due in more than one year (Note 8) 19,799,565 Net pension liability (Note 11) 8,804,512 Total noncurrent liabilities 29,104,950 Total liabilities 63,121,927 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to leases (Note 6) 2,686,338 Deferred inflows of resources related to pension (Note 11) 9,101,225 Deferred inflows of resources related to OPEB - City of Dublin (Note 12) 5,350,406 Total deferred inflows of resources 17,137,969 NET POSITION Net investment in capital assets 543,185,634 Restricted for: Public safety 946,617 Impact fee projects 68,617,056 Highways and streets 14,106,176 Health and welfare 31,113,207 Culture and leisure 1,495,540 Pension 1,882,640 Total restricted 118,161,236 Unrestricted 228,371,331 Total net position $ 889,718,201 See accompanying Notes to Basic Financial Statements 25 140 City of Dublin Statement of Activities For the year ended June 30, 2022 Functions/Programs Expenses Program Revenues Net (Expense) Revenue and Changes in Net Position Charges for Services Operating Grants and Contributions Capital Grants and Contributions Total Governmental Activities Governmental activities: General government Police Fire Public works and transportation Park and community services Community development Interest on long-term debt Total governmental activities $ 23,516,577 24,439,146 14,657,052 25,252,334 11,745,611 6,777,210 336,950 $ 106,724,880 $ 10,129,727 $ 225,957 $ 548,762 $ 10,904,446 $ (12,612,131) 241,962 567,112 - 809,074 (23,630,072) 2,062,704 - - 2,062,704 (12,594,348) 3,361,847 5,973,359 15,678,671 25,013,877 (238,457) 5,145,083 90,812 - 5,235,895 (6,509,716) 6,719,349 415,861 230,427 7,365,637 588,427 - - (336,950) $ 27,660,672 $ 7,273,101 $ 16,457,860 $ 51,391,633 (55,333,247) General Revenues: Taxes: Property taxes Special assessment taxes Sales tax Other taxes Total taxes Intergovernmental, unrestricted Miscellaneous Unrestricted investment earnings Total general revenues Change in net position Net position - beginning of year Net position - end of year 55,186,388 1,527,036 27,935,894 8,281,142 92,930,460 324,519 8,277,075 (12,803,156) 88,728,898 33,395,651 856,322,550 $ 889,718,201 See accompanying Notes to Basic Financial Statements 26 141 FUND FINANCIAL STATEMENTS Governmental Fund Financial Statements Proprietary Fund Financial Statements Fiduciary Fund Financial Statements 27 142 This page intentionally left blank 28 143 GOVERNMENTAL FUND FINANCIAL STATEMENTS 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 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. 29 144 City of Dublin Balance Sheet Governmental Funds June 30, 2022 ASSETS Cash and investments Accounts receivable Accrued interest receivable Due from other funds Notes receivable Leases receivable Advances to other funds Prepaids Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities: Accounts payable Accrued wages and other payroll liabilities Deposits payable Contract retention payable Other payables Unearned revenue Due to other funds Advances from other funds Total liabilities Deferred inflows of resources: Related to leases Total deferred inflows of resources Fund Balances: Nonspendable Restricted Committed Assigned Unassigned Total fund balances Total liabilities, deferred inflows of resources, and fund balances General Fund Special Revenue Fund Capital Project Funds Affordable Housing General Improvement Projects Parks Projects Streets Projects $ 212,233,470 9,186,985 1,020,548 19,939,496 2,686,338 475,904 10,541 $ 15,248,694 275,952 14,394,159 $ 2,457,970 $ 2,370,521 $ 1,090,122 $ 245,553,282 $ 29,918,805 $ 2,457,970 $ 2,370,521 $ 1,090,122 $ 13,095,718 631,128 3,644,397 238,750 1,399,445 $ 1,858 $ 3,631 1,639,754 $ 1,971,809 $ 987,453 818,216 398,712 102,669 19,009,438 5,489 2,457,970 2,370,521 1,090,122 2,686,338 2,686,338 10,541 4,261,640 73,346,367 93,266,322 52,972,636 29,913,316 223,857,506 29,913,316 $ 245,553,282 $ 29,918,805 $ 2,457,970 $ 2,370,521 $ 1,090,122 See accompanying Notes to Basic Financial Statements 30 145 Capital Project Funds Public Dublin Other Total Facilities Fire Impact Traffic Impact Crossing Governmental Governmental Impact Fees Fees Fees Contribution Funds Funds $ 35,172,430 $ 154,414 $ 29,037,519 $ 12,390,648 $ 35,662,010 $ 345,817,798 4,488,006 103,293 324,154 - 1,990,399 16,368,789 - - 1,020,548 - - 19,939,496 - - 155,409 14,549,568 - - 2,686,338 - - 475,904 - - 10,541 $ 39,660,436 $ 257,707 $ 29,361,673 $ 12,390,648 $ 37,807,818 $ 400,868,982 $ - $ - $ 179,902 $ - $ 584,081 $ 18,460,575 - 5,372 640,131 - 6,427 1,341,055 4,991,879 - - 5,008 1,324,605 - - - 238,750 - - 5,060,645 6,460,090 17,868,850 - - 1,800,693 19,669,543 475,904 - - 475,904 18,344,754 179,902 6,427 8,796,854 52,261,477 2,686,338 2,686,338 - - 10,541 21,315,682 257,707 29,181,771 12,384,221 29,886,815 127,201,152 - - 73,346,367 - - 93,266,322 - - (875,851) 52,096,785 21,315,682 257,707 29,181,771 12,384,221 29,010,964 345,921,167 $ 39,660,436 $ 257,707 $ 29,361,673 $ 12,390,648 $ 37,807,818 $ 400,868,982 See accompanying Notes to Basic Financial Statements 31 146 This page intentionally left blank 32 147 City of Dublin Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Position June 30, 2022 Total Fund Balances - Total Governmental Funds 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: 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: Non -depreciable Depreciable, net Total capital assets 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. 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 Deferred outflows of resources related to OPEB - City of Dublin Deferred inflows of resources related to pension Deferred inflows of resources related to OPEB - City of Dublin Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. Compensated absences - due within one year Claims payable Compensated absences - due in more than one year Long term debt - due within one year Long term debt - due in more than one year Net OPEB asset - City of Dublin Net pension liability Total long-term liabilities Net Position of Governmental Activities Government - Wide Statement of Net Position Internal Service Funds $ 345,921,167 Total $ 307,753,287 246,846,996 $ (18,095,013) (24,273,665) 289,658,274 222,573,331 $ 554,600,283 $ (42,368,678) 512,231,605 Government - Wide Statement of Net Position Internal Service Funds 63,716,084 3,623,447 513,658 (9,101,225) (5,350,406) Total $ (1,124,917) (317,749) (183,124) (655,000) (19,799,565) 9,048,738 (8,804,512) (1,124,917) (317,749) (183,124) (655,000) (19,799,565) 9,048,738 (8,804,512) $ (21,836,129) (21,836,129) $ 889,718,201 See accompanying Notes to Basic Financial Statements 33 148 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2022 REVENUES: Property taxes Sales tax Other taxes Intergovernmental Licenses and permits Charges for service Interest income Use of property Unrealized gains (losses) on investments Fines and forfeitures Development revenue Other revenue Special assessments Total revenues EXPENDITURES: Current: General Government Police Fire Public works and transportation Park and community services Community development Capital outlay: General improvements Parks Streets Debt service: Principal Interest and fiscal charges Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Proceeds from long term debt Transfers in Transfers out Total other financing sources (uses) Net change in fund balances FUND BALANCES (DEFICITS): Beginning of year End of year General Fund Special Revenue Fund Capital Project Funds Affordable Housing General Improvement Projects Parks Projects Streets Projects $ 55,186,388 $ 26,110,207 8,281,142 324,519 354,643 8,022,099 2,269,289 1,647,882 (15,525,055) 70,714 9,803,444 2,580,106 95,627 155,318 384,829 73,188 5,000,000 99,125,378 5,708,962 13,204,104 24,286,868 15,516,795 13,413,099 8,689,027 5,316,164 505,000 34,238 249,699 12,978,975 13,400,686 4,030,047 80,931,057 283,937 12,978,975 13,400,686 4,030,047 18,194,321 5,425,025 (12,978,975) (13,400,686) (4,030,047) 234,803 (4,336,114) 12,978,975 13,400,686 4,030,047 (4,101,311) 12,978,975 13,400,686 4,030,047 14,093,010 5,425,025 209,764,496 24,488,291 $ 223,857,506 $ 29,913,316 $ - $ - $ See accompanying Notes to Basic Financial Statements 34 149 Capital Project Funds Public Dublin Other Total Facilities Fire Impact Traffic Impact Crossing Governmental Governmental Impact Fees Fees Fees Contribution Funds Funds $ - $ - $ - $ - $ - $ 55,186,388 26,110,207 8,281,142 9,254,642 9,579,161 354,643 7,824,242 15,941,968 381,551 1,671 318,274 130,140 363,620 3,619,863 2,032,711 (15,525,055) 122,304 193,018 9,477,971 170,550 1,903,966 3,385,362 47,554 24,862,035 180,816 7,760,922 1,527,035 1,527,035 9,859,522 172,221 2,222,240 3,515,502 19,320,213 139,924,038 56,000 13,679 10,245,150 23,539,492 1,094,900 25,381,768 182,285 15,699,080 2,283,403 15,710,181 67,830 8,756,857 229,425 5,795,288 12,978,975 13,400,686 4,030,047 505,000 419,521 419,521 56,000 13,679 14,522,514 126,216,895 9,859,522 116,221 2,208,561 3,515,502 4,797,699 13,707,143 21,042,136 21,042,136 30,644,511 (10,891,254) (529,143) (200,000) (15,567,515) (31,524,026) (10,891,254) (529,143) (200,000) 5,474,621 20,162,621 (1,031,732) 116,221 1,679,418 3,315,502 10,272,320 33,869,764 22,347,414 141,486 27,502,353 9,068,719 18,738,644 312,051,403 $ 21,315,682 $ 257,707 $ 29,181,771 $ 12,384,221 $ 29,010,964 $ 345,921,167 See accompanying Notes to Basic Financial Statements 35 150 This page intentionally left blank 36 151 City of Dublin Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -Wide Statement of Activities For the year ended June 30, 2022 Net Change in Fund Balances - Total Governmental Funds $ 33,869,764 Amounts reported for governmental activities in the Statement of Activities were different because: Governmental funds reported capital outlay as expenditures. However, in the Govemment-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. 28,911,095 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. (12,680,768) 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. (11,530) 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. (21,042,136) Long-term debt repayments 505,000 Amortization of premium on long-term debt 82,571 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 (99,279) 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. 2,181,234 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. (1,542,640) 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. 746,551 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. 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. Change in Net Position of Governmental Activities (24,415) 2,500,204 $ 33,395,651 See accompanying Notes to Basic Financial Statements 37 152 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Property taxes $ 52,763,000 $ 53,763,000 $ 55,186,388 $ 1,423,388 Sales tax 21,918,000 25,218,000 26,110,207 892,207 Other taxes 6,482,706 6,732,706 8,281,142 1,548,436 Intergovernmental 285,000 285,000 324,519 39,519 Licenses and permits 313,434 313,434 354,643 41,209 Charges for services 5,268,891 5,775,452 8,022,099 2,246,647 Investment income (loss) 1,200,000 1,200,000 2,269,289 1,069,289 Use of property 1,020,768 1,456,833 1,647,882 191,049 Unrealized gains (losses) on investments - - (15,525,055) (15,525,055) Fines and forfeitures 107,432 107,432 70,714 (36,718) Development revenue 7,721,318 8,816,883 9,803,444 986,561 Other revenues 1,317,231 1,402,307 2,580,106 1,177,799 Total revenues 98,397,780 105,071,047 99,125,378 (5,945,669) EXPENDITURES: Current: General government 15,414,199 17,414,394 13,204,104 4,210,290 Police 25,324,991 24,882,918 24,286,868 596,050 Fire 15,416,959 15,556,474 15,516,795 39,679 Public works and transportation 15,069,115 15,436,210 13,413,099 2,023,111 Parks and community services 8,248,495 9,085,624 8,689,027 396,597 Community development 5,444,118 6,473,506 5,316,164 1,157,342 Debt service: Principal - 465,000 505,000 (40,000) Total expenditures 84,917,877 89,314,126 80,931,057 8,383,069 REVENUES OVER (UNDER) EXPENDITURES 13,479,903 15,756,921 18,194,321 2,437,400 OTHER FINANCING SOURCES (USES): Transfers in 56,600 191,116 234,803 43,687 Transfers (out) (5,038,550) (16,846,223) (4,336,114) 12,510,109 Total other financing sources (uses) (4,981,950) (16,655,107) (4,101,311) 12,553,796 Net change in fund balance $ 8,497,953 $ (898,186) 14,093,010 $ 14,991,196 FUND BALANCE: Beginning of year 209,764,496 End of year $ 223,857,506 See accompanying Notes to Basic Financial Statements 38 153 City of Dublin Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Affordable Housing For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Charges for services $ 74,816 $ 74,816 $ 95,627 $ 20,811 Interest 125,000 125,000 155,318 30,318 Use of property - - 384,829 384,829 Development revenue - - 73,188 73,188 Other revenues - 5,000,000 5,000,000 Total revenues 199,816 5,199,816 5,708,962 EXPENDITURES: 509,146 Current: General government 68,000 68,000 34,238 33,762 Community development 613,346 613,346 249,699 363,647 Total expenditures REVENUES OVER (UNDER) EXPENDITURES 681,346 681,346 283,937 397,409 (481,530) 4,518,470 5,425,025 906,555 Net change in fund balance $ (481,530) $ 4,518,470 5,425,025 $ 906,555 FUND BALANCE: Beginning of year 24,488,291 End of year $ 29,913,316 See accompanying Notes to Basic Financial Statements 39 154 This page intentionally left blank 40 155 PROPRIETARY FUND FINANCIAL STATEMENTS Proprietary funds 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. 41 156 City of Dublin Statement of Net Position Proprietary Funds June 30, 2022 Govemmental Activities - Internal Service Funds ASSETS Current assets: Cash and investments $ 21,384,556 Accounts receivable 110,919 Prepaids and other 242,913 Total current assets 21,738,388 Noncurrent assets: Capital Assets: Land 10,774,792 Construction in progress 7,320,221 Infrastructure 745,014 Building and improvements 63,219,783 Vehicles and equipment 10,161,491 Less accumulated depreciation (49,852,623) Net capital assets 42,368,678 Total assets 64,107,066 LIABILITIES Current liabilities: Accounts payable and accruals Due to other funds Total current liabilities Total liabilities NET POSITION Net investment in capital assets Unrestricted 121,029 269,953 390,982 390,982 42,368,678 21,347,406 Total net position $ 63,716,084 See accompanying Notes to Basic Financial Statements 42 157 City of Dublin Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Funds For the year ended June 30, 2022 Governmental Activities - Internal Service Funds OPERATING REVENUES: Charges for services $ 4,041,760 Other revenue 932,849 Total operating revenues 4,974,609 OPERATING EXPENSES: Supplies and services (96,616) Retiree health premiums 922,266 Depreciation 2,749,178 Total operating expenses 3,574,828 OPERATING INCOME (LOSS) 1,399,781 NONOPERATING REVENUES (EXPENSES): Interest income Total nonoperating revenues (expenses) 220,908 220,908 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS: 1,620,689 Transfers in 1,000,000 Transfers (out) (120,485) Total transfers Change in net position NET POSITION: 879,515 2,500,204 Beginning of year 61,215,880 End of year $ 63,716,084 See accompanying Notes to Basic Financial Statements 43 158 City of Dublin Statement of Cash Flows Proprietary Funds For the year ended June 30, 2022 Governmental Activities - Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from other funds $ 6,105,555 Payments to suppliers and service providers (2,953,660) Other revenues 932,849 Net cash provided by (used in) operating activities 4,084,744 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash receipts from other funds Cash disbursements to other funds 1,235,695 (120,485) Cash provided by (used in) noncapital financing activities 1,115,210 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of capital assets (3,148,372) Cash used in capital and related financing activities (3,148,372) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 220,908 Cash flows investing activities 220,908 Net Cash Flows 2,272,490 CASH AND CASH EQUIVALENTS - Beginning of year 19,112,066 CASH AND CASH EQUIVALENTS - End of year $ 21,384,556 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) $ 1,399,781 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 2,749,178 Change in assets and liabilities Accounts receivable (103,792) Prepaids (7,406) Accounts payable and accruals 46,983 Net cash provided by (used in) operating activities $ 4,084,744 See accompanying Notes to Basic Financial Statements 44 159 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. 45 160 City of Dublin Statement of Fiduciary Net Position Fiduciary Fund June 30, 2022 Custodial Funds ASSETS Cash and investments $ 45,250,009 Accounts receivable 27,239 Total assets 45,277,248 LIABILITIES Accounts payable Total liabilities NET POSITION Restricted for: Individuals, organizations, and other governments Total net position 23,456 23,456 45,253,792 $ 45,253,792 See accompanying Notes to Basic Financial Statements 46 161 City of Dublin Statement of Changes in Fiduciary Net Position Fiduciary Fund For the year ended June 30, 2022 Custodial Funds ADDITIONS: Special assessments $ 7,194,532 Investment income 169,173 Proceeds from bonds 28,862,448 Property tax distribution 26,199 Other 75,000 Total additions 36,327,352 DEDUCTIONS: Administration 13,614,436 Project payments 336,200 Payments of bonds principal 280,000 Interest expense 4,022,998 Total deductions Change in net position NET POSITION: 18,253,634 18,073,718 Beginning of year 27,180,074 End of year $ 45,253,792 See accompanying Notes to Basic Financial Statements 47 162 This page intentionally left blank 48 163 NOTES TO BASIC FINANCIAL STATEMENTS This page intentionally left blank 50 165 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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, 2022 was 72,932. 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 #119 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, 2022, the City's staff comprised 99 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 150.48 contract employees provide a variety of municipal services from City facilities. As of June 30, 2022, the City had approximately 184 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 generalrevenues. 51 166 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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 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 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. 52 167 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Major Funds, Continued 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. 53 168 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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. 54 169 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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 55 170 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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. 56 171 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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. Leases Receivable The City's leases receivable are measured at the present value of lease payments expected to be received during the lease terms. Deferred inflows of resources are recorded for the leases. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. J. 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, 2022: General Leave Compensated Leave Total Beginning Balance $ 1,277,829 $ 18,684 $ 1,296,513 Additions 1,096,483 21,475 1,117,958 Payments (1,087,650) (18,779) (1,106,429) Ending Balance 1,286,662 21,380 1,308,042 Current Portion $ 1,106,532 $ 18,386 $ 1,124,918 57 172 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued K. CapitalAssets 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. 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. L. 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. 58 173 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued M. 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 (Ca1PERS) plans (Plans) and additions to/deductions from the Plans' fiduciary net position have been determined on the same basis as they are reported by Ca1PERS. 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. N. 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 Plari 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 Measurement Date Measurement Period June 30, 2021 June 30, 2021 July 1, 2020 to June 30, 2021 O. 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. P. Deferred Outflows / inflows of Resources In addition to assets, the statement of financial position or balance sheet report is a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets 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 assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. 59 174 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. 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. 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. 60 175 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Q. Net Position and Fund Balance, Continued Committed fund balances have constraints imposed by resolution of the City Council which may be altered only by formal action (resolution) of the City Council to establish, modify, or rescind a fund balance commitment. The City Council commits fund balance through the adoption of a resolution prior to the end of the fiscal year. Once adopted, the limitation imposed by the resolution remains in place until similar action is taken to remove or revise the limitation. Only the highest level action (a resolution) can be considered a commitment for fund balance classification purposes. Assigned fund balances are amounts constrained by the City's intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. This category includes nonspendable when it is the City's intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or committed. Through a council resolution, the City Council has designated the City Manager to determine the amount of assigned Fund balance. Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds. 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. R. New Pronouncements In 2022, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standard Board Statements: GASB Statement No. 87, Leases - The objective of this statement is to recognize in the financial statements certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. GASB Statement No. 89, Accounting for Interest Cost Incurred before the End of the Construction Period - The objective of this statement is to (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This statement establishes accounting requirements for interest cost incurred before the end of a construction period. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business -type activity or enterprise fund. The requirements of this statement did not apply to the City for the current fiscal year. 61 176 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued R. New Pronouncements, Continued GASB Statement No. 92, Omnibus 2020 - The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The requirements of this statement did not apply to the City for the current fiscal year. GASB Statement No. 99, Omnibus 2022 - The primary objectives of this statement are to enhance the comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during the implementation and application of certain GASB Statements. The requirements of this statement did not apply to the City for the current fiscal year. 2. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: • Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. • The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution. • During the fiscal year, the City Manager is authorized to transfer budgeted amounts between line items, provided that the transfer is within the same fund, regardless of the specific department activity. This includes the authority to transfer from the General Fund budgeted contingency amounts that are approved by the City Council during the budget adoption. The City Manager is authorized to increase revenue and expenditure budget for various departmental functions, when the net budget impact is zero. • The City Manager is authorized to increase the appropriations for the following fiscal year in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to the year-end, but are expected to be expended in the next year consistent with the original purpose. • As part of the annual Budget adoption the City Council authorizes the carry-over unexpended capital project appropriations, for those projects where work and expenditures will continue in the subsequent year. 62 177 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 2. BUDGETS AND BUDGETARY ACCOUNTING, Continued • Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. • Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent with generally accepted accounting principles in the United States. No major capital projects funds incurred expenditures in excess of their budgets for the year ended June 30, 2022. 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. 63 178 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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. Primary Government: Cash and investments Fiduciary Funds: Cash and investments Total cash and investments Cash and investments as of June 30, 2022 consisted of the following: Cash on hand Deposits with financial institutions Investments Section 115 Trust Cash and investments with fiscal agent $ 367,202,354 45,250,009 $ 412,452,363 $ 5,051 6,912,430 376,646,279 1,882,640 27,005,963 Total cash and investments $ 412,452,363 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. Authorized Investment Type Negotiable Certificates of Deposit Bankers' Acceptance U.S. Treasury Bills and Notes U.S. Government Agency Securities California Asset Management Program Commercial Paper Time Certificates of Deposit State Local Agency Investment Fund Asset -Backed Securities Medium -Term Notes Mutual Funds Money Market Funds Municipal Securities Supranationals Maximum Maturity 5 years 180 days 5 years 5 years N/A 270 days 1 year N/A 5 years 5 years N/A N/A 5 years 5 years Minimum Credit Qualiy A-1 A-1 N/A N/A N/A A-1 N/A N/A AA A AAA AAA A AA Maximum Percentage of Portfolio 30% 40% No Limit 25% for callable No Limit 25% 10% No Limit 20% 30% 20% 20% No Limit 30% Maximum Investment In One Issuer 20% 20% of Portfolio No Limit 35% No Limit 20% of Portfolio No Limit No Limit 5% 5% 10% No Limit 5% 10% 64 179 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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: Investment Type 12 Months or 13 to 24 25 to 60 less Months Months Asset -Backed Securities U.S. Treasury Notes Supranationals Medium -Term Notes U.S. Government Agency Securities Local Agency Investment Fund California Asset Management Program Negotiable Certificate of Deposits Money Market Funds $ 1,482,716 2,498,330 3,445,333 5,997,762 49,814,476 89,240,305 3,039,481 $ 1,383,107 11,628,293 15,083,869 22,054,494 Total $ 29,276,346 $ 30,659,453 49,357,433 62,468,442 16,905,458 19,403,788 44,363,015 62,892,217 28,589,586 56,641,842 49,814,476 89,240,305 2,486,275 2,486,275 3,039,481 Total Investments $ 155,518,403 $ 50,149,763 $170,978,113 $ 376,646,279 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, 2022, 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, 2022, the City had $49,814,476 invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset -Backed Securities as compared to 2.31 % in the previous year. The LAIF fair value factor of .987125 was used to calculate the fair value of the investments in LAIF. 65 180 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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, 2022, these investments have an average maturity of 28 days. The City's investments include Asset -Backed Securities in the amount of $30,659,453 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, 2022: Investments By Fair Value Level: Asset -Backed Securities U.S. Treasury Notes Supranationals Medium -Term Notes U.S. Government Agency Securities Negotiable Certificates of Deposit Total Investments Exempt From Disclosure: Local Agency Investment Fund California Asset Management Program Money Market Funds Total Level 2 Total $ 30,659,453 62,468,442 19,403,788 62,892,217 56,641,842 2,486,275 $ 234,552,017 $ 30,659,453 62,468,442 19,403,788 62,892,217 56,641,842 2,486,275 234,552,017 49,814,476 89,240,305 3,039,481 $ 376,646,279 66 181 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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, 2022 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, 2022. Investment Type AAA AA+ AA AA- A+ A A- A-1 BBB+ Total Asset -Backed Securities $ 27,680,128 $ U.S. Treasury Notes Supranationals 16,905,458 Medium Term Notes - U.S. Government Agency Securities California Asset Management Program 89,240,305 Negotiable CDs Money Market Funds 3,039,481 62,468,442 3,722,073 56,641,842 6,197,148 5,341,662 5,240,209 24,441,398 14,121,850 2,486,275 - $ 27,680,128 62,468,442 16,905,458 3,827,877 62,892,217 56,641,842 89,240,305 2,486,275 3,039,481 Total $ 136,865,372 $122,832,357 $ 6,197,148 $ 5,341,662 $ 5,240,209 $ 24,441,398 $ 14,121,850 $ 2,486,275 $ 3,827,877 $ 321,354,148 Not rated: Asset -Backed Securities State Local Agency Investment Fund Supranationals Total Investments 2,979,325 49,814,476 2,498,330 $ 376,646,279 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. Reporting Unit Issuer Investment Type Entity -wide Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Association Federal Farm Credit Bank U.S. Government Agency Securities U.S. Government Agency Securities U.S. Government Agency Securities U.S. Government Agency Securities Reported Amount $ 17,336,375 10,083,796 22,831,194 6,390,477 67 182 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 4. INTERFUND TRANSACTIONS A. Transfers between Funds Transfers between funds during the year ended June 30, 2022 were as follows: Transfers In General Improvements Projects Capital Parks Projects Streets Projects Internal Service Transfers Out General Projects Capital Projects Capital Projects Funds Total Major Funds General Fund $ - $ 583,322 $ 2,588,122 $ 164,671 $ 1,000,000 $ 4,336,115 Public Facilities Impact Fees Capital Projects 211,225 10,680,029 - - 10,891,254 Traffic Impact Fees Capital Projects 529,143 529,143 Dublin Crossing Contribution Capital Projects 200,000 - 200,000 Non -major Governmental Funds 234,803 12,063,943 132,535 3,136,233 15,567,514 Governmental funds subtotal 234,803 12,858,490 13,400,686 4,030,047 1,000,000 31,524,026 Internal Service Funds 120,485 - - 120,485 Total $ 234,803 $ 12,978,975 $ 13,400,686 $ 4,030,047 $ 1,000,000 $ 31,644,511 Significant transfers noted above made to major capital project funds were to fund on -going capital projects including Citywide Energy Improvements, financial system replacement, Cultural Arts Center, sports park and playgrounds, 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, 2022, the following funds have balances due to the General Fund: Due to General Fund: Public Facilities Impact Fees Capital Projects Fund $ 17,868,850 Non -Major Governmental Funds 1,800,693 Internal Service Funds 269,953 Total $ 19,939,496 68 183 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 4. INTERFUND TRANSACTIONS, Continued C. Advances between Funds During the 2020-2021 and 2021-2022 fiscal years, the General Fund advanced funds to the Public Facilities Impact Fees Capital Projects Fund to cover the construction costs of Wallis Ranch Community Park and Jordan Ranch Neighborhood Square. The following interfund advance balance existed at June 30, 2022: Advances from General Fund Public Facilities Impact Fees Capital Projects Fund Total 5. NOTES RECEIVABLE $ 475,904 $ 475,904 The following table summarizes the notes receivable outstanding as of June 30, 2022: First Time Homebuyer Loan Program $ 825,336 Eden (Wicklow) Square Senior Affordable Housing 2,968,681 SBA Microloan Program Receivables 155,409 Arroyo Vista Predevelopment/Construction Loan - Family Housing 2,294,157 Arroyo Vista Predevelopment/Construction Loan - Senior Housing 891,785 Veterans Family Apartment Development Loan 7,414,200 Total $ 14,549,568 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, 2022 was $825,336. As of June 30, 2022, there were no loans in default. 69 184 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 5. NOTES RECEIVABLE, Continued Details of the Revolving Home Loans as of June 30, 2022 were as follows: REPAYMENT OF LOAN ORIGINAL ACCRUED INTEREST AND LOAN LOAN # DATE LOAN AMOUNT INTEREST PRINCIPAL BALANCE #07-14 10/2/2007 $ 19,610 $ 10,124 $ #07-04 10/31/2007 50,000 25,671 #07-15 12/4/2007 24,536 12,518 #07-16 12/28/2007 8,000 4,063 #07-18 2/29/2008 24,170 12,127 #08-07 4/10/2009 27,425 12,695 #08-08 6/30/2009 39,576 18,012 #09-02 9/29/2009 36,595 16,336 #10-03 5/6/2011 26,700 9,650 #11-01 12/9/2011 26,025 9,634 #11-05 1/13/2012 29,999 10,987 #11-08 1/31/2012 35,249 12,849 #11-10 4/3/2012 38,586 13,153 #12-01 10/30/2012 29,999 10,153 #12-04 4/12/2013 36,749 11,859 #12-05 4/26/2013 35,249 11,328 #12-06 6/12/2013 31,499 9,981 #13-04 12/9/2013 40,000 11,984 #17-01 5/25/2018 40,000 5,742 #19-02 11/22/2019 40,000 3,652 #21-01 10/29/2021 40,000 940 (36,350) (51,739) 29,734 75,671 37,054 12,063 36,297 40,120 57,588 52,931 35,659 40,986 48,098 40,152 48,608 46,577 41,480 51,984 45,742 43,652 40,940 Totals $ 679,967 $ 233,458 $ (88,089) $ 825,336 70 185 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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, 2022, the outstanding loan amount was $2,968,681. 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. As of June 30, 2022, the outstanding loan amount was $155,409. 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, 2022, the outstanding loan amounts for the Family Project and the Senior Project were $2,294,157 and $891,785, respectively. 71 186 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 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, 2022, the outstanding loan amount was $7,414,200. 6. LEASES RECEIVABLE Cell Tower Lease In July 2000, the City entered into a lease with New Cingular Wireless PCS , LLC. Under the lease, the lessee pays the City $10,404 per year (with 2% increase every year) for 10 years in exchange for ten (10) pole licenses. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 0.34%, which is FY20-21 Q1 market yield of the City's portfolio. For the year ended June 30, 2022, the City recognized $10,513 of lease revenue and $311 of interest revenue under the lease. Alameda County Fire Department Lease - Fleet In July 2014, the City entered into a lease with Alameda County Fire Department. Under the lease, the lessee pays the City based on a rent schedule for 240 months in exchange for 5777 Scarlett Court, Dublin, CA 94568 for Fleet Maintenance Facility Use. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 0.56%, which is the FY14-15 Q1 market yield of the City's portfolio. For the year ended June 30, 2022, the City recognized $61,718 of lease revenue and $129,656 of interest revenue under the lease. Alameda County Fire Department Lease - Fire In January 2020, the City entered into a lease with Alameda County Fire Department. Under the lease, the lessee pays based on a rent schedule for 60 months in exchange for 6363 Clark Avenue, Dublin, CA 94568 for Fire Department Office Facility Use. The lease receivable is measured as the present value of the future minimum rent payments expected to be received during the lease term at a discount rate of 1.11 %, which is the FY19-20 Q3 market yield of the City's portfolio. For the year ended June 30, 2022, the City recognized $201,576 of lease revenue and $109,521 of interest revenue under the lease. 72 187 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 6. LEASES RECEIVABLE, Continued The future payments on the leases as of June 30, 2022 were as follows: Year Ending Cell Tower Lease ACFD Fleet June 30, Principal Interest Principal Interest ACID Fire Total Principal Interest Principal Interest 2023 2024 2025 2026 2027 2028-2032 2033-2037 $ 10,766 $ 11,023 11,286 11,554 11,827 24,499 275 239 201 163 124 125 $ 77,836 83,233 101,555 108,593 129,426 888,289 506,706 $ 125,017 119,624 113,473 106,435 98,503 335,056 36,228 $ 239,736 283,301 186,708 $ 80,397 45,868 8,382 $ 328,338 $ 205,689 377,557 165,731 299,549 122,056 120,147 106,598 141,253 98,627 912,788 335,181 506,706 36,228 Total $ 80,955 $ 1,127 $ 1,895,638 $ 934,336 $ 709,745 $ 134,647 $ 2,686,338 $ 1,070,110 7. CAPITAL ASSETS A. Current Year Activities Capital asset activities during the year ended June 30, 2022 were as follows: Non -depreciable assets: Land Streets right of way Construction in progress Total non -depreciable assets Depreciable assets: Infrastructure Buildings and improvements Vehicles and equipment Total depreciable assets Less accumulated depreciation: Infrastructure Buildings and improvements Vehicles and equipment Right of way Total accumulated depreciation Total depreciable assets, net Total capital assets Balance Balance July 1, 2021 Additions Retirements June 30, 2022 $ 182,170,145 $ 37,760,857 58,805,488 29,016,797 278,736,490 29,016,797 448,086,898 118,068,799 21,812,923 3,055,073 587,968,620 3,055,073 (264,289,187) (53,924,084) (10,443,780) (77,296) (9,621,429) (3,905,069) (1,822,429) (93,423) (328,734,347) (15,442,350) 259,234,273 (12,387,277) - $ 182,170,145 37,760,857 87,822,285 307,753,287 (30,207) 448,086,898 118,068,799 24,837,789 (30,207) 590,993,486 30,207 (273,910,616) (57,829,153) (12,236,002) (170,719) 30,207 (344,146,490) 246,846,996 $ 537,970,763 $ 16,629,520 $ - $ 554,600,283 73 188 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 7. CAPITAL ASSETS, Continued B. Project Commitments As of June 30, 2022, the City had outstanding commitments with contractors for the following projects: Project Commitment General Improvement Projects $ 10,292,915 Parks Projects 4,517,710 Streets Projects 13,281,750 C. Capital Asset Contributions Some capital assets may be acquired using Federal and State grant funds, or they may be contributed by developers or other governments. GASB Statement 34 requires that these contributions be accounted for as revenues at the time the capital assets are contributed. D. Depreciation Allocation Depreciation expense is charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or programs are as follows: Governmental Activities: General Government $ 1,380,427 Police 682,346 Fire 435,507 Public Works 7,054,807 Parks and Community Service 4,601,326 Community Development 1,287,937 Total depreciation expense $ 15,442,350 74 189 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 8. LONG TERM DEBT A. Current Year Transactions and Balances Long-term debt transactions and balances during the year ended June 30, 2022 were as follows: Due in Balance Balance Due Within More than July 1, 2021 Additions Deletions June 30, 2022 One Year One Year Governmental Activities: 2021 Lease Revenue Bond $ - $ 18,565,000 $ (505,000) $ 18,060,000 $ 655,000 $ 17,405,000 Premium on bond - 2,477,136 (82,571) 2,394,565 - 2,394,565 Total long-term debt $ - $ 21,042,136 $ (587,571) $ 20,454,565 $ 655,000 $ 19,799,565 B. 2021 Lease Revenue Bonds - Original Issue $18,565,000 In October 2021, the Dublin Financing Authority issued the 2021 Lease Revenue Bonds to finance energy efficiency improvements throughout the City. The bonds dated October 14, 2021, and issued at a premium of $2,477,136 mature in 2041. Commencing June 1, 2022, principal payments are due annually on June 1 and interest payments are due annually on June 1 and December 1. Debt service is payable from any source of available funds of the City. Interest on the bonds ranges from 2.5% to 4.0%. The balance at June 30, 2022, including unamortized bond premium of $2,394,565 amounted to $20,454,565. The annual debt service requirements on the bonds at June 30, 2022 are as follow: 2021 Lease Revenue Bonds For the Years Ending June 30, Principal Interest Total 2023 $ 655,000 $ 678,050 $ 1,333,050 2024 680,000 651,850 1,331,850 2025 710,000 624,650 1,334,650 2026 735,000 596,250 1,331,250 2027 765,000 566,850 1,331,850 2028-2032 4,310,000 2,349,850 6,659,850 2033-2037 5,240,000 1,416,250 6,656,250 2038-2041 4,965,000 364,100 5,329,100 Total $ 18,060,000 $ 7,247,850 $ 25,307,850 75 190 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 9. FUND BALANCES Detailed classifications of the City's Fund Balances, as of June 30, 2022, are stated below: Major Funds General General Affordable improvement Fund Housing Projects Parks Projects Public Dublin Other Streets Facilities Fire impact Traffic Impact Crossing Governmental Projects Impact Fees Fees Fees Contribution Funds Total Nonspendable: Prepaids $ 10,541 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 10,541 Subtotal Non -Spendable Fund Balance 10,541 - - - - - - - - - 10,541 Restricted for: Cemetery Endowment 60,000 Public Safety Programs Street Maintenance and Construction Health and Welfare Programs Heritage Park Maintenance 750,000 Culture and Leisure - Impact Fee Capital Projects - Capital Improvement Projects - Developer Contribution -Heritage Park 19,000 Developer Contribution -Nature Park 60,000 Downtown Community Benefit Program 1,490,000 Pension 1,882,640 Housing 60,000 - - - 946,617 946,617 14,106,176 14,106,176 - - - 1,199,891 1,199,891 750,000 - - 666540 666,540 21,315,682 257,707 29,181,771 - 3,927,675 54,682,835 12,384,221 9,039,916 21,424,137 19,000 - - - - 60,000 1,490,000 - - - - 1,882,640 29,913,316 - - - - - 29,913,316 Subtotal Restricted Fund Balance 9,261,640 29,913,316 - - - 21,315,682 257,707 29,181,771 12,384,221 29,886,815 127,201,152 Committed to: Economic Stability 8,000,000 - - - - - - - - - 8,000,000 Downtown Public Improvements 15,176,230 - - - - - - - - - 15,176,230 Emergency Communications 532,113 - - - - - - - - - 532,113 Fire Services OPEB 5,671,094 - - - - - - - - - 5,671,094 Innovations and New Opportunities 1,026,591 - - - - - - - - - 1,026,591 Maintenance Facility 55,088 - - - - - - - - - 55,088 Don Biddle Community Park 675,193 - - - - - - - - - 675,193 Historic Park Cemetery Expansion 13,748 - - - - - - - - - 13,748 One Time Initiatives 6,923,517 - - - - - - - - - 6,923,517 Contribution to Public Facility Fee 6,000,000 - - - - - - - - - 6,000,000 Fallon Sports Park 510,500 - - - - - - - - - 510,500 Utility Undergrounding 3,500,000 - - - - - - - - - 3,500,000 Lease Revenue Bonds Payment 6,000,000 - - - - - - - - - 6,000,000 Public Safety 2,600,000 - - - - - - - - - 2,600,000 Cultural Arts Center 7,139,197 - - - - - - - - - 7,139,197 Advance to Public Facility Fee 9,523,096 - - - - - - - - - 9,523,096 Subtotal Committed Fund Balance 73,346,367 - - - - - - - - - 73,346,367 Assigned to: Non -street ClP 3,276,777 - - - - - - - - - 3,276,777 Employees Accrued Leave 1,308,044 - - - - - - - - - 1,308,044 Operating Carryovers 1,600,546 - - - - - - - - - 1,600,546 up Carryovers 4,088,844 - - - - - - - - - 4,088,844 Catastrophic Loss and Recovery 17,710,320 - - - - - - - - - 17,710,320 Service Continuity Obligations 3,150,000 - - - - - - - - - 3,150,000 Pension and Post Employment Benefits 17,000,000 - - - - - - - - - 17,000,000 Fiscally Responsible Adjustment 325,000 - - - - - - - - - 325,000 Internal Service Fund 1,500,000 - - - - - - - - - 1,500,000 Municipal Regional Permit 2,209,778 - - - - - - - - - 2,209,778 HVAC Replacement 3,278,409 - - - - - - - - - 3,278,409 Relocate Parks 500,000 - - - - - - - - - 500,000 Parks and Street Contingency Maintenance 201,270 - - - - - - - - - 201,270 Commercial Facade Improvement Grant 364,256 - - - - - - - - - 364,256 Police Service Building 87,200 - - - - - - - - - 87,200 Village Parkway Pavement 11,000,000 - - - - - - - - - 11,000,000 Climate Action Plan 3,000,000 - - - - - - - - - 3,000,000 ARPA Revenue Replacement 665,878 - - - - - - - - - 665,878 Dublin Boulevard Extension 20,000,000 - - - - - - - - - 20,000,000 Pavement Management 2,000,000 - - - - - - - - - 2,000,000 Subtotal Assigned Fund Balance 93,266,322 - - - - - - - - - 93,266,322 Unassigned Fund Balance: Fund Balance Deficits - - - - - - - - (875,851) (875,851) Unrealized Gain onInvestments/ (Loss) (11,008,294) - - - - - - - - (11,008,294) Cash Flow Per City Policy 63,980,930 - - - - - - - - 63,980,930 Subtotal Unassigned Fund Balance 52,972,636 - - - - - (875,851) 52,096,785 Total Fund Balance (Deficit) $ 223,857,506 $ 29,913,316 $ 21,315,682 $ 257,707 $ 29,181,771 $ 12,384,221 $ 29,010,964 $ 345,921,167 76 191 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 9. 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, 2022 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, 2022. These deficits are expected to be eliminated by future revenues. Fund Fund Deficit Traffic Safety $ 55,792 Transportation for Clean Air (TFCA) 465,133 Building Homes and Jobs Act 278,013 State Housing Grant 76,913 10. 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. 11. 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 (Ca1PERS). 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. 77 192 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 11. 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 1959 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 Ca1PERS and hired after December 31, 2012. The Plan's provisions and benefits in effect as of June 30, 2022, are summarized as follows: Hire Date Benefit formula Benefit vesting schedule Benefit payment Retirement age Monthly benefits, as a % of annual salary Required employee contribution rates Required employer contribution rates Required unfunded liability payment Miscellaneous Miscellaneous PEPRA Prior to January 1, 2013 2.7%@55 5 years service Monthly for life 55 2.70% 8.00% 14.02% $1,295,630 After January 1, 2013 2%@62 5 years service Monthly for life 62 2.00% 6.25% 7.59% $7,443 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 Ca1PERS. 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, 2021, the City's contributions to the Plan were $1,712,167. B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2022, the City reported $8,804,512 in net pension liabilities for its proportionate share of the net pension liability of the Plan. The General Fund has been used in prior years to liquidate the net pension liabilities. 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, 2021, 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, 2020 rolled forward to June 30, 2021 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. 78 193 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 11. 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, 2020 and 2021 was as follows: Proportion - June 30, 2020 Proportion - June 30, 2021 Change - Increase (Decrease) 0.15646% 0.16280% 0.00634 % For the year ended June 30, 2022, the City recognized net pension expense of $1,542,640 for the Miscellaneous Plan on the Statement of Activities. As of June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of of Resources Resources Pension contributions subsequent to measurement date $ 1,928,720 $ - Changes of assumptions - - Differences between expected and actual experience 987,331 - Changes in employer's proportion 707,396 - Differences between the employer's contribution and the employer's proportionate share of contributions - 1,415,352 Net differences between projected and actual earnings on plan investments - 7,685,873 Total $ 3,623,447 $ 9,101,225 79 194 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 11. PENSION PLAN, Continued B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions, Continued The $1,928,720 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, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Fiscal Year Ending June 30: 2023 $ (1,742,552) 2024 (1,732,157) 2025 (1,807,809) 2026 (2,123,980) Thereafter 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: 1% Decrease Net Pension Liability Current Discount Rate Net Pension Liability 1 % Increase Net Pension Liability 6.15% $ 19,141,100 7.15% $ 8,804,512 8.15% $ 259,402 80 195 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 11. 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, 2021, the total pension liabilities were determined by rolling forward the June 30, 2020 total pension liability. The June 30, 2020 total pension liabilities were based on the following actuarial methods and assumptions: Valuation Date Measurement Date Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Projected Salary Increases Investment Rate of Return (1) Mortality June 30, 2020 June 30, 2021 Entry -Age Normal Cost Method 7.15% 2.50% Varies by entry age and service 7.15% Derived by Ca1PERS' Membership Data for all Funds (1) Net of pension plan administrative expenses All other actuarial assumptions used in the June 30, 2020 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 Ca1PERS 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, Ca1PERS 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 Ca1PERS 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, Ca1PERS 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. 81 196 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 11. 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. Asset Class (1) Assumed Asset Allocation Real Return Years 1 -10 (2) Real Return Years 11+ (3)' (4) Global Equity Fixed Income Inflation Assets Private Equity Real Assets Liquidity Total 50.00% 28.00% 0.00% 8.00% 13.00% 1.00% 100.00% 4.80% 1.00% 0.77% 6.30% 3.75% 0.00% 5.98% 2.62% 1.81% 7.23% 4.93% -0.92% (1) In the System's Comprehensive Annual Financial Report, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (2) An expected inflation of 2.00% used for this period. (3) An expected inflation of 2.92% used for this period (4) Figures are based on previous ALM of 2017 Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net position is available in the separately issued Ca1PERS financial reports. 12. 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. 82 197 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 12. OTHER POST EMPLOYMENT BENEFITS, Continued A. City of Dublin Retiree Health Plan, Continued Contributions - There is no requirement imposed by Ca1PERS, to contribute any amount beyond the pay-as- you-go contributions. The cost of monthly insurance premiums may be shared between the retiree and 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 Ca1PERS 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 2020-21, the City contributed $411,587. Employees Covered Inactive employees or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees 75 5 96 Total 176 Net OPEB Liability The City's net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to the calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021, based on the following actuarial methods and assumptions: Valuation Date June 30, 2021 Measurement Date June 30, 2021 Actuarial Cost Method Entry -Age Normal Cost Method Actuarial Assumptions: Discount Rate 6.20% Inflation 2.50% Contribution Policy Contributes full ADC Salary Increases 3.00% Investment Rate of Return 6.10% Mortality CaIPERS 2017 Experience Study Post Retirement Benefit Increase MacLeod Watts Scale 2020 Healthcare Trend 5.7% in 2022 fluctuating down to 4.0% by 2076 83 198 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 12. 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. Asset Class Target Expected Real Allocation Rate of Return* Global Equity 40.00% 4.80% Fixed Income 43.00 % 1.10 % TIPS 5.00 % 0.25 % Commodities 4.00 % 1.50% REITS 8.00 % 3.20% Assumed Long -Term Rate of Inflation 2.00% Assumed Long -Term Investment Expenses n/a Expected Long -Term Net Rate of Return, Rounded 6.20% Discount Rate** 6.20% *Real rates of return come from a geometric representation of returns that assume a general inflation rate of 2.00 %. **The fiduciary net position is projected to be sufficient to make projected benefit payments, and the plan assets are expected to be invested using the strategy to achieve the expected return. Discount Rate The discount rate used to measure the total OPEB liability was 6.20 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. 84 199 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 12. 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: Increase (Decrease) Balance at June 30, 2021 Changes in the year: Service cost Interest on the total pension liability Differences between actual and expected experience Changes in assumptions Changes in benefit terms Contribution - employer Contribution - employee Net investment income Administrative expenses Benefit payments , including refunds of employee contributions Investment Experience Net changes Balance at June 30, 2022 Total OPEB Liability $ 18,263,880 895,299 1,164,147 (775,744) 307,694 (1,065,659) 525,737 Plan Fiduciary Net Position $ 22,351,531 411,587 6,149,340 (8,444) (1,065,659) 5,486,824 $ 18,789,617 $ Net OPEB Liability/ (Asset) $ (4,087,651) 895,299 1,164,147 (775,744) 307,694 (411,587) (6,149,340) 8,444 (4,961,087) 27,838,355 $ (9,048,738) Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability (asset) 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, 2021: 1% Decrease (5.20%) Current Discount Rate (6.20 %) 1 % Increase (7.20%) Net OPEB Liability (Asset) $ (6,766,427) $ (9,048,738) $ (10,938,357) 85 200 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 12. 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, 2021: 1% Decrease Current Healthcare Trend Rate 1% Increase Net OPEB Liability (Asset) $ (11,068,841) $ (9,048,738) $ (6,599,879) 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: Net difference between projected and actual earnings on OPEB plan investments All other amounts 5 year straight-line recognition Straight-line recogntion over the expected average remaining service lifetime (EARSL) of all members that are provided with benefits, determined as of the beginning of the Measurement Period. In determining the EARSL, all active, retired and inactive (vested) members are counted, with the latter two groups having 0 remaining service years. OPEB Expense and Deferred Outflows/(Inflows) of Resources Related to OPEB For the fiscal year ended June 30, 2022, the City recognized OPEB expense (income) of $(746,551). For the fiscal year ended June 30, 2022, the City reported deferred outflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of of Resources Resources OPEB contributions subsequent to measurement date $ 252,514 $ Differences between actual and expected experience 1,439,654 Changes in assumptions 261,144 385,808 Net differences between projected and actual earnings on plan investments - 3,524,944 Total $ 513,658 $ 5,350,406 86 201 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 12. 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 $252,514 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2023. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows: Fiscal Year Ending June 30: 2023 (1,300,575) 2024 (1,240,101) 2025 (1,242,432) 2026 (1,192,149) 2027 (70,809) Thereafter (43,196) 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, 2022 those cost totaled $38,726. 13. 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. 87 202 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 13. 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, 2022, the City paid The Cities Group $3,256 in premium. Financial Statements may be obtained from The Cities Group, P.O. 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, $317,749, is adequate to cover IBNR claims. Therefore no adjustment was made in fiscal year 2021-2022 as the City's exposure is for the $5,000 deductible per general liability claim. 88 203 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 14. 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 2021-2022, the City contributed $195,787 or 11.43 % toward the annual operating shelter services and $32,672 representing 2.53% 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. 15. 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. 89 204 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 15. 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, 2022, was $2,669,196 which is net of the $42,342 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, 2022 was $99,393,288. The reduction of $1,596,271 to the credit balance was mainly due to credit used for the fiscal years which was $39,834,080. 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 Ca1PERS 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 based on the most recent actuarial valuation dated June 30, 2021, the City's Actuarial Accrued Liability (AAL) for benefits was $12,696,000 and the Actuarial Value of Plan Asset was $14,419,000 resulting in an Unfunded Actuarial Accrued Liability (UAAL) of $1,723,000. At June 30, 2022, the Actuarial Value of the Plan Asset was $14,250,423. 16. 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. 90 205 City of Dublin Notes to Basic Financial Statements For the year ended June 30, 2022 16. 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. On August 4, 2021 the City issued $26,000,000 of City 2021 Improvement Area No. 3 Special Tax Bonds by and through its Community Facilities District No. 2015-1 (Dublin Crossing) Improvement Area No. 3. 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, 2022 was $95,985,000. 17. 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, 2022, under these sales -tax reimbursement agreements, the City has abatements totaling $346,696. 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. 18. SUBSEQUENT EVENTS In October 2022, the City issued special tax bonds in the total amount of $21,720,000 through its Community Facilities District No. 2015-1 (Dublin Crossing) Improvement Area No. 4. The proceeds are to be used for public improvements and fees related to the Boulevard Project. 91 206 This page intentionally left blank 92 207 REQUIRED SUPPLEMENTARY INFORMATION This page intentionally left blank 94 209 City of Dublin Required Supplementary Information For the year ended June 30, 2022 1. DEFINED BENEFIT PENSION PLAN A. Schedule of the City's Proportionate Share of the Net Pension Liability - Last 10 Years* Fiscal year: Measurement date: 2022 2021 2020 2019 2018 2017 2016 2015* 6/30/2021 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 Proportion of the net pension liability 0.16280% 0.15646% 0.15132% 0.14569% 0.14518% 0.15006% 0.14788% 0.12593% Proportionate share of the net pension liability $ 8,804,512 $ 17,023,464 $ 15,505,908 $ 14,038,811 $ 14,398,145 $ 12,984,969 $ 10,150,590 $ 7,835,901 Covered payroll $ 10,751,196 $ 10,591,772 $ 10,124,753 $ 9,753,107 $ 10,443,838 $ 9,268,029 $ 8,463,027 $ 8,716,918 Proportionate Share of the net pension liability as percentage of covered payroll 81.89% 160.72% 153.15% 143.94% 137.86% 140.10% 119.94% 89.89% Plan fiduciary net position as a percentage of the total pension liability 88.29% 75.10% 75.26% 75.26% 73.31% 74.06% 78.40 % 79.82% Notes to Schedule: * Fiscal year 2015 was the 1st year of implementation. The Ca1PERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016, and then decreased from 7.65% to 7.15% in fiscal year 2018. The Ca1PERS mortality rate assumptions were adjusted in fiscal year 2019. B. Schedule of Contributions - Last 10 Years* Fiscal year 2022 2021 2020 2019 2018 2017 2016 2015* Contractually required contribution (actuarially determined) $ 1,928,720 $ 1,712,167 $ 1,522,330 $ 1,241,065 $ 1,018,096 $ 988,634 $ 869,497 $ 1,411,959 Contribution in relation to the actuarially determined contributions (1,928,720) (1,712,167) (1,522,330) (1,241,065) (1,018,096) (1,738,634) (869,497) (1,411,959) Contribution deficiency (excess) $ - $ - $ - $ - $ $ (750,000) $ - $ - Covered payroll $ 11,848,706 $ 10,751,196 $ 10,591,772 $ 10,124,753 $ 9,753,107 $ 10,443,838 $ 9,268,029 $ 8,463,027 Contributions as a percentage of covered payroll 16.28% 15.93% 14.37% 12.26% 10.44% 26.79% 22.41% 18.59% Note to Schedule *Fiscal year 2015 was the 1st year of implementation, therefore only eight years are shown. Methods and assumptions used to determine contribution rates: tually required contribution): 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 Actuarial cost method: Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Entry Age Amortization method: (1) (1) (1) (1) (1) (1) (1) (1) Assets valuation method: Market Value Market Value Market Value Market Value Market Value Market Value Market Value 15 Year Smoothed Market Method Inflation: 2.50% 2.50% 2.63% 2.75% 2.75% 2.75% 2.75% 2.75% Salary increases: (2) (2) (2) (2) (2) (2) (2) (2) Investment rate of return: 7.00% 7.00% 7.25% 7.375% 7.50% 7.50% 7.50% 7.50% Retirement age: (3) (3) (3) (3) (3) (3) (3) (3) Mortality: (4) (4) (4) (4) (4) (4) (4) (4) (1) Level percentage of payroll, closed (2) Depending on age, service, and type of employment (3) 50 for all plans, with the exception of 52 for Miscellaneous PEPRA 2 %@62 (4) Mortality assumptions are based on mortality rates resulting from the most recent Ca1PERS Experience Study adopted by the Ca1PERS Board. 95 210 City of Dublin Required Supplementary Information For the year ended June 30, 2022 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) Measurement Period 2021 2020 2019 2018 2017 Total OPEB Liability Service Cost $ 895,299 $ 869,222 $ 843,905 $ 852,382 $ 827,000 Interest on the total OPEB liability 1,164,147 1,103,053 1,169,182 1,099,559 1,032,000 Differences between expected and actual experience (775,744) (1,450,926) - Changes of assumptions 307,694 (716,501) - Benefit payments, including refunds of employee contributions (1,065,659) (976,033) (882,052) (776,911) (805,000) Net change in total OPEB liability 525,737 996,242 (1,036,392) 1,175,030 1,054,000 Total OPEB liability - beginning 18,263,880 17,267,638 18,304,030 17,129,000 16,075,000 Total OPEB liability - ending (a) $ 18,789,617 $ 18,263,880 $ 17,267,638 $ 18,304,030 $ 17,129,000 Plan Fiduciary Net Position Contributions - employer Net investment income Benefit payments, including refunds of employee contributions Administrative expense Net change in plan fiduciary net position Plan fiduciary net position - beginning Plan fiduciary net position - ending (b) 411,587 $ 1,116,396 $ 1,073,623 $ 1,588,507 $ 1,878,000 6,149,340 763,014 1,244,479 1,431,381 1,665,000 (1,065,659) (976,033) (882,052) (776,911) (805,000) (8,444) (10,512) (6,155) (33,206) (8,000) 5,486,824 892,865 1,429,895 2,209,771 2,730,000 22,351,531 21,458,666 20,028,771 17,819,000 15,089,000 27,838,355 $ 22,351,531 $ 21,458,666 $ 20,028,771 $ 17,819,000 Net OPEB liability/(asset) - ending (a) - (b) $ Plan fiduciary net position as a percentage of the total OPEB liability Covered -employee payroll $ Net OPEB liability as a percentage of covered -employee payroll (1) Fiscal year 2018 was the 1sf year of implementation. (9,048,738) $ (4,087,651) $ (4,191,028) $ (1,724,741) $ (690,000) 148.2% 122.4% 124.3% 109.4% 104.0% 10,751,196 $ 10,533,380 $ 10,037,794 $ 9,997,000 $ 10,431,000 -84.2% -38.8% -41.8% -17.3% -6.6% 96 211 City of Dublin Required Supplementary Information For the year ended June 30, 2022 2. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued B. Schedule of City Retiree Health Plan Contributions - Last 10 Years 0) Fiscal Year Ended June 30 Actuarially Determined Contribution (ADC) Contributions in relation to the ADC Contribution deficiency (excess) Covered -employee payroll 2022 2021 2020 2019 2018 (252,514) (252,514) $ 122,000 $ 138,000 $ 851,000 $ 861,000 (411,587) (1,116,396) (1,075,930) (1,589,000) (289,587) (978,396) (224,930) (728,000) $ 11,706,708 $ 10,751,196 $ 10,533,380 $ 10,037,794 $ 9,997,000 Contributions as a percentage of covered - employee payroll 2.16% 3.83% 10.60% 10.72% 15.89% (1) Fiscal year 2018 was the 1st year of implementation. 97 212 This page intentionally left blank 98 213 SUPPLEMENTARY INFORMATION This page intentionally left blank 100 215 City of Dublin Schedule of Budget Versus Actual Revenues By Sources General Fund For the year ended June 30, 2022 Property taxes Sales tax Other taxes Intergovernmental Licenses and permits Charges for services: General government Police Fire Public works and transportation Parks and community services Community development Investment income (loss): Use of property Unrealized gain/ (loss) on investment Fines and forfeitures Development revenue Other revenues Budgeted Amounts Actual Original Final Amounts Variance with Final Budget Positive (Negative) $ 52,763,000 $ 53,763,000 $ 55,186,388 21,918,000 25,218,000 26,110,207 6,482,706 6,732,706 8,281,142 285,000 285,000 324,519 313,434 313,434 354,643 1,525,721 1,525,721 1,766,145 29,140 29,140 33,841 1,088,429 1,088,429 2,026,830 17,000 17,000 31,585 2,608,001 3,114,562 4,162,314 600 600 1,384 1,200,000 1,200,000 2,269,289 1,020,768 1,456,833 1,647,882 - - (15,525,055) 107,432 107,432 70,714 7,721,318 8,816,883 9,803,444 1,317,231 1,402,307 2,580,106 $ 1,423,388 892,207 1,548,436 39,519 41,209 240,424 4,701 938,401 14,585 1,047,752 784 1,069,289 191,049 (15,525,055) (36,718) 986,561 1,177,799 Total revenues 98,397,780 105,071,047 99,125,378 (5,945,669) 101 216 City of Dublin Schedule of Budget Versus Actual Departmental Expenditures General Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) General government: City council 521,830 521,830 423,136 98,694 City manager 1,807,840 1,807,840 1,435,057 372,783 City clerk 620,168 675,575 574,615 100,960 Election 3,120 3,120 1,839 1,281 Human resources 961,072 1,092,264 721,369 370,895 Insurance 2,176,596 2,436,086 1,864,778 571,308 Finance 2,329,499 2,342,819 2,164,756 178,063 Non-departamental 2,572,800 3,630,187 1,925,192 1,704,995 Disaster preparedness 205,709 254,421 179,968 74,453 Crossing guards 254,608 303,341 302,886 455 Animal control 327,076 327,076 258,531 68,545 Waste management 67,411 67,411 17,375 50,036 Community TV 144,135 144,135 122,655 21,480 Communications 541,150 541,150 500,425 40,725 Economic development 746,076 746,076 684,943 61,133 Human services 204,355 169,135 123,322 45,813 Library services 961,728 987,830 904,715 83,115 Dougherty Regional Fire Authority 922,026 922,026 872,148 49,878 Non-departamental - Other 47,000 442,072 126,394 315,678 Sub -total Police: Police operations Police operations support Sub -total 15,414,199 17,414,394 13,204,104 4,210,290 22,944,006 2,380,985 22,437,777 2,445,141 22,191,142 2,095,726 246,635 349,415 25,324,991 24,882,918 24,286,868 596,050 Fire: Fire operations 14,700,509 14,790,166 14,790,166 Fire prevention 460,657 460,657 432,501 28,156 Fire station maintenance 255,793 305,651 294,128 11,523 Sub -total 15,416,959 15,556,474 15,516,795 39,679 Public works: Maintenance 9,125,607 8,962,338 8,031,693 930,645 Engineering 3,798,515 4,055,743 3,196,724 859,019 Public works administration 1,446,955 1,688,455 1,576,610 111,845 Transportation 56,575 56,575 8,278 48,297 Environmental services 641,463 673,099 599,794 73,305 Sub -total 15,069,115 15,436,210 13,413,099 2,023,111 102 217 City of Dublin Schedule of Budget Versus Actual Departmental Expenditures (Continued) General Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) Parks and community services: Cultural and special events 806,642 872,642 952,923 (80,281) Heritage Center and programs 372,406 382,406 344,377 38,029 Parks and community services administration 1,505,771 1,505,771 1,476,050 29,721 Shannon Center and programs 1,423,906 1,524,087 1,284,042 240,045 Stager and other facility operations 996,754 1,226,174 1,244,548 (18,374) Senior Center and programs 647,561 760,139 729,747 30,392 The Wave and programs 2,495,455 2,814,405 2,657,340 157,065 8,248,495 9,085,624 8,689,027 396,597 Sub -total Community development: Planning 2,200,785 3,230,173 2,565,211 664,962 Building and safety 3,243,333 3,243,333 2,750,932 492,401 Housing - - 21 (21) Sub -total 5,444,118 6,473,506 5,316,164 1,157,342 Debt service: Principal - 465,000 505,000 (40,000) Sub -total - 465,000 505,000 (40,000) Total current expenditures 84,917,877 89,314,126 80,931,057 8,423,069 Total expenditures $ 84,917,877 $ 89,314,126 $ 80,931,057 $ 8,423,069 103 218 This page intentionally left blank 104 219 BUDGETED MAJOR GOVERNMENTAL FUNDS OTHER THAN GENERAL FUND AND SPECIAL REVENUE FUNDS The General Improvements Projects Capital Projects Fund - is used to manage the programming of funds and activities associated with major Capital Improvements Projects. The fund accumulates resources for capital expenditures and utilizes those resources to support projects that are general in nature and are not Streets, Parks, or Community Improvements Projects. The 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. 105 220 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual General Improvement Projects Capital Projects Fund For the year ended June 30, 2022 EXPENDITURES: Capital outlay: General improvements Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 6,991,969 $ 36,077,700 $ 12,978,975 $ 23,098,725 Total expenditures 6,991,969 36,077,700 12,978,975 23,098,725 OTHER FINANCING SOURCES (USES): Transfers in 6,991,969 36,077,700 12,978,975 (23,098,725) Total other financing sources (uses) 6,991,969 36,077,700 12,978,975 (23,098,725) Net change in fund balance $ - $ FUND BALANCE: Beginning of year End of year $ 106 221 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Parks Project Capital Projects Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) EXPENDITURES: Capital outlay: Parks $ 8,477,916 $ 32,229,875 $ 13,400,686 $ 18,829,189 Total expenditures 8,477,916 32,229,875 13,400,686 18,829,189 OTHER FINANCING SOURCES (USES): Transfers in 8,477,916 32,229,875 13,400,686 (18,829,189) Total other financing sources (uses) 8,477,916 32,229,875 13,400,686 (18,829,189) Net change in fund balance $ - $ - - $ FUND BALANCE: Beginning of year - End of year $ - 107 222 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Streets Projects Capital Projects Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) EXPENDITURES: Capital outlay: Streets $ 5,687,686 $ 41,315,485 $ 4,030,047 $ 37,285,438 Total expenditures 5,687,686 41,315,485 4,030,047 37,285,438 OTHER FINANCING SOURCES (USES): Transfers in 5,687,686 41,315,485 4,030,047 (37,285,438) Total other financing sources (uses) 5,687,686 41,315,485 4,030,047 (37,285,438) Net change in fund balance $ - $ - - $ FUND BALANCE: Beginning of year - End of year $ 108 223 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Public Facilities Impact Fees Capital Projects Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 295,550 $ 295,550 $ 381,551 $ 86,001 Development revenue 4,735,946 4,474,946 9,477,971 5,003,025 Total revenues 5,031,496 4,770,496 9,859,522 5,089,026 OTHER FINANCING SOURCES (USES): Transfers out (11,165,700) (30,483,139) (10,891,254) 19,591,885 Total other financing sources (uses) (11,165,700) (30,483,139) (10,891,254) 19,591,885 Net change in fund balance $ (6,134,204) $ (25,712,643) (1,031,732) $ 24,680,911 FUND BALANCE: Beginning of year 22,347,414 End of year $ 21,315,682 109 224 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Fire Impact Fees Capital Projects Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 1,500 $ 1,500 $ 1,671 $ Development revenue 44,250 44,250 170,550 171 126,300 Total revenues 45,750 45,750 172,221 126,471 EXPENDITURES: Current: General government 56,000 56,000 56,000 Total expenditures 56,000 56,000 56,000 REVENUES OVER (UNDER) EXPENDITURES (10,250) (10,250) 116,221 126,471 Net change in fund balance $ (10,250) $ (10,250) 116,221 $ 126,471 FUND BALANCE: Beginning of year 141,486 End of year $ 257,707 110 225 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Traffic Impact Fees Capital Projects Fund For the year ended June 30, 2022 REVENUES: Interest Development revenue Total revenues EXPENDITURES: Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 180,000 $ 180,000 $ 318,274 $ 138,274 255,862 1,282,862 1,903,966 621,104 435,862 1,462,862 2,222,240 759,378 Current: General government 200,000 200,000 - 200,000 Public works and transportation - 7,237 13,679 (6,442) Total expenditures 200,000 207,237 13,679 193,558 REVENUES OVER (UNDER) EXPENDITURES 235,862 1,255,625 2,208,561 952,936 OTHER FINANCING SOURCES (USES): Transfers out (1,911,076) (19,004,377) (529,143) 18,475,234 Total other financing sources (uses) (1,911,076) (19,004,377) (529,143) 18,475,234 Net change in fund balance $ (1,675,214) $ (17,748,752) 1,679,418 $ 19,428,170 FUND BALANCE: Beginning of year 27,502,353 End of year $ 29,181,771 111 226 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Dublin Crossing Contribution Capital Project Fund For the year ended June 30, 2022 REVENUES: Interest Development revenue Total revenues Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 60,000 $ 60,000 $ 130,140 $ - - 3,385,362 70,140 3,385,362 60,000 60,000 3,515,502 3,455,502 OTHER FINANCING SOURCES (USES): Transfers out - (1,000,000) (200,000) 800,000 Total other financing sources (uses) - (1,000,000) (200,000) 800,000 Net change in fund balance $ 60,000 $ (940,000) 3,315,502 $ 4,255,502 FUND BALANCE: Beginning of year 9,068,719 End of year $ 12,384,221 112 227 NON -MAJOR GOVERNMENTAL FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than major capital projects) that are legally restricted to expenditures for specific purposes. SPECIAL REVENUE FUNDS 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. 113 228 NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS, Continued 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. 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. 114 229 NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS, Continued 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 to 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. The American Rescule 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. Mesure RR - Safe Routes to BART is used to account for funds allocated by Bay Area Rapid Transit (BART) for using voter approved Measure RR capital fund to help local agencies improve access for BART customers travelling to BART stations by walking or biking. Maintenance Districts established to account for revenue and related expenditures of lighting and landscape districts. Capital Project Funds are used to account for financial resources ussed for the acquisition and construction of capital projects. CAPITAL PROJECT FUNDS Energy Improvement Lease Revenue Bond Fund accounts for the funds received from the City's lease revenue bond for energy improvements and related expenditures. 115 230 City of Dublin Combining Balance Sheet Governmental Funds June 30, 2022 Special Revenue Funds Special Supplemental Criminal Vehicle Law Traffic Federal Asset Activity Abatement Enforcement Safety Seizure ASSETS Cash and investments $ 1,441,138 $ 326,823 $ 280,383 $ - $ Accounts receivable - - 11,562 Notes receivable - - - Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 1,441,138 326,823 280,383 11,562 Liabilities: Accounts payable 8,161 2 14,469 Deposits payable 1,340,648 - - Contract retention payable - - - Unearned revenue - - - Due to other funds - - 52,885 Advances from other funds - - - Total liabilities 1,348,809 2 67,354 Fund Balances: Nonspendable - - - Restricted: Public safety programs 92,329 326,823 280,381 - Street maintenance and construction - - - Health and welfare programs - - - Culture and leisure - - - Capital improvement projects - - - Unassigned - - (55,792) Total fund balances Total liabilities, deferred inflows of resources, and fund balances 92,329 326,823 280,381 (55,792) $ 1,441,138 $ 326,823 $ 280,383 $ 11,562 $ 116 231 Special Revenue Funds 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 $ 265,144 $ - $ 3,647,670 $ 908,466 $ 337,815 $ 187,917 $ 412,737 $ 295,256 673 161,481 136,918 7,735 2,802 - 335,600 110,520 265,817 161,481 3,784,588 916,201 340,617 187,917 748,337 405,776 20,257 - 52,915 577 5,008 - 159,957 20,257 159,957 57,923 577 245,560 1,524 3,726,665 916,201 340,040 187,917 748,337 405,776 245,560 1,524 3,726,665 916,201 340,040 187,917 748,337 405,776 $ 265,817 $ 161,481 $ 3,784,588 $ 916,201 $ 340,617 $ 187,917 $ 748,337 $ 405,776 117 232 City of Dublin Combining Balance Sheet Governmental Funds June 30, 2022 Special Revenue Funds ACTC Transportation Road Maint & Vehicle Measure BB for Clean Air Rehab Account Registration Grants (TFCA) (RMRA) Fee TDA ASSETS Cash and investments $ - $ - $ 2,604,859 $ 197,081 $ 17,416 Accounts receivable 382,682 219,486 278,415 49,101 Notes receivable - - - Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 382,682 219,486 2,883,274 246,182 17,416 Liabilities: Accounts payable 1 - 3,748 Deposits payable - - - Contract retention payable - - - Unearned revenue - - - Due to other funds 359,369 684,619 33,809 - Advances from other funds - - - Total liabilities 359,370 684,619 33,809 3,748 Fund Balances: Nonspendable - - - Restricted: Public safety programs - - - Street maintenance and construction 23,312 2,849,465 242,434 Health and welfare programs - - - Culture and leisure - - - Capital improvement projects - - - Unassigned - (465,133) - - Total fund balances 17,416 23,312 (465,133) 2,849,465 242,434 17,416 Total liabilities, deferred inflows of resources, and fund balances $ 382,682 $ 219,486 $ 2,883,274 $ 246,182 $ 17,416 118 233 Special Revenue Funds AVI Economic Benefit/Business Storm Garbage/ Assistance Water Recycling Program Management Box Culvert Public Art Miscellaneous Community Special Development State Grant Revenue Block Grant Park $ 1,047,439 $ 169,514 $ 75,152 - 235,073 $ 398,344 $ 3,974,223 $ 453,809 $ - $ - - 31,322 54,970 105,639 - 1,122,591 275,153 235,073 398,344 3,974,223 485,131 54,970 81,488 - - 46,548 1,000 - 407 14,484 33,886 81,488 - - 46,548 1,407 48,370 - 235,073 398,344 - 1,041,103 - - 92,337 275,153 - 391,387 - - 3,927,675 - 6,600 1,041,103 275,153 235,073 398,344 3,927,675 483,724 6,600 $ 1,122,591 $ 275,153 $ 235,073 $ 398,344 $ 3,974,223 $ 485,131 $ 54,970 $ 119 234 City of Dublin Combining Balance Sheet Governmental Funds June 30, 2022 Special Revenue Funds Federal Building State COVID-19 American Homes and Housing COVID-19 Financial Rescue Jobs Act Grant Grants Assistance Plan Act ASSETS Cash and investments $ - $ - $ - $ 10,081 $ 5,210,513 Accounts receivable - - - - Notes receivable - - 49,770 - Total assets LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 59,851 5,210,513 Liabilities: Accounts payable - - - - 144,496 Deposits payable - - - - - Contract retention payable - - - - - Unearned revenue - - - 5,060,645 Due to other funds 278,013 76,913 - - - Advances from other funds - - - - Total liabilities 278,013 76,913 - - 5,210,513 Fund Balances: Nonspendable - - - - - Restricted: Public safety programs - - - - Street maintenance and construction - - - - Health and welfare programs - - 59,851 - Culture and leisure - - - - Capital improvement projects - - - - Unassigned (278,013) (76,913) - - - Total fund balances (278,013) (76,913) - 59,851 - Total liabilities, deferred inflows of resources, and fund balances $ - $ - $ - $ 59,851 $ 5,210,513 120 235 Special Revenue Funds Capital Projects Fund Maintenance Districts Energy Measure RR - 1983-1 1983-2 1986-1 1997-1 1999-1 Dublin Improvement Safe Routes Street Stagecoach Dougherty Santa Rita East Dublin Crossing Lease Revenue to BART Lighting Landscape Landscape Landscape Street Lighting CFD No. 2017-1 Bond $ - $ 640,618 $ 371,250 $ 558,766 $ 1,321,922 $ 978,846 $ 328,991 $ 9,039,916 121,242 1,699 225 194 7,422 937 261 121,242 642,317 371,475 558,960 1,329,344 979,783 329,252 9,039,916 20,241 16,314 9,022 133,654 16,704 121,242 121,242 20,241 16,314 9,022 133,654 16,704 622,076 355,161 549,938 1,195,690 963,079 329,252 - 9,039,916 622,076 355,161 549,938 1,195,690 963,079 329,252 9,039,916 $ 121,242 $ 642,317 $ 371,475 $ 558,960 $ 1,329,344 $ 979,783 $ 329,252 $ 9,039,916 121 236 Total Nonmajor Governmental Funds $ 35,662,010 1,990,399 155,409 37,807,818 584,081 1,341,055 5,008 5,060,645 1,800,693 8,796,854 946,617 14,106,176 1,199,891 666,540 12,967,591 (875,851) 29,010,964 $ 37,807,818 122 237 This page intentionally left blank 123 238 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2022 Special Revenue Funds Special Supplemental Criminal Vehicle Law Traffic Federal Asset Activity Abatement Enforcement Safety Seizure REVENUES: Intergovernmental $ - $ 82,562 $ 211,285 $ - $ Charges for service - - - Interest 659 3,417 3,086 Fines and forfeitures - - 122,304 Development revenue - - - Other revenue 80,816 Special assessments - - - Total revenues 81,475 85,979 214,371 122,304 EXPENDITURES: Current: General Government - - - Police 13,874 9,782 150,002 - 650 Fire - - - Public works - - 168,247 Park and community services - - - Community development - - - Debt service: Principal - - - Interest and fiscal charges - - - Total expenditures 13,874 9,782 150,002 168,247 650 REVENUES OVER (UNDER) EXPENDITURES 67,601 76,197 64,369 (45,943) (650) OTHER FINANCING SOURCES (USES): Proceeds from long term debt - - - Transfers out - (25,803) - - Total other financing sources (uses) - (25,803) - - Net change in fund balances 67,601 50,394 64,369 (45,943) (650) FUND BALANCES (DEFICITS): Beginning of year 24,728 276,429 216,012 (9,849) 650 End of year $ 92,329 $ 326,823 $ 280,381 $ (55,792) $ 124 239 Special Revenue Funds 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 $ $ 314,362 $ 2,838 1,532,287 $ 542,520 $ 39,397 8,939 207,063 - - 196,506 $ - $ 817,456 $ 269,205 3,056 2,109 4,188 2,890 209,901 314,362 1,571,684 551,459 199,562 2,109 821,644 272,095 182,285 314,362 - - 532,834 6,654 - - 182,285 314,362 532,834 6,654 27,616 1,038,850 551,459 192,908 2,109 821,644 272,095 (132,993) (387,671) (530,456) (57,711) (441,051) (52,871) (132,993) (387,671) (530,456) (57,711) (441,051) (52,871) 27,616 (132,993) 651,179 21,003 135,197 2,109 380,593 219,224 217,944 134,517 3,075,486 895,198 204,843 185,808 367,744 186,552 $ 245,560 $ 1,524 $ 3,726,665 $ 916,201 $ 340,040 $ 187,917 $ 748,337 $ 405,776 125 240 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2022 Special Revenue Funds ACTC Transportation Road Maint & Vehicle Measure BB for Clean Air Rehab Account Registration Grants (TFCA) (RMRA) Fee TDA REVENUES: Intergovernmental $ 444,014 $ 274,581 $ 1,382,546 $ 287,282 $ 17,317 Charges for service - - - Interest - 25,582 2,421 99 Fines and forfeitures - - - Development revenue - - - Other revenue - - - - Special assessments - - - Total revenues 444,014 274,581 1,408,128 289,703 17,416 EXPENDITURES: Current: General Government - - - Police - - - Fire - - - Public works - - 246,927 Park and community services - - - Community development - - - Debt service: Principal - - - Total expenditures - - 246,927 REVENUES OVER (UNDER) EXPENDITURES 444,014 274,581 1,408,128 42,776 17,416 OTHER FINANCING SOURCES (USES): Proceeds from long term debt - - - Transfers out (309,856) (739,714) (476,561) (18,821) Total other financing sources (uses) (309,856) (739,714) (476,561) (18,821) Net change in fund balances 134,158 (465,133) 931,567 23,955 17,416 FUND BALANCES (DEFICITS): Beginning of year (110,846) 1,917,898 218,479 End of year $ 23,312 $ (465,133) $ 2,849,465 $ 242,434 $ 17,416 126 241 Special Revenue Funds AVI Economic Benefit/Business Storm Garbage/ Assistance Water Recycling Program Management Box Culvert Public Art Miscellaneous Community Special Development State Grant Revenue Block Grant Park $ 317,749 $ 7,697,411 12,757 1,217 $ - $ - 1,985 4,422 100,000 - $ - $ - $ 405,780 $ - 126,831 - 44,971 4,437 - 45,893 1,661 - 8,027,917 101,217 1,985 4,422 90,864 132,929 405,780 7,721,768 403,914 314,028 - 5,980 63,361 405,780 67,830 - 8,035,796 403,914 5,980 67,830 63,361 405,780 (7,879) (302,697) (3,995) 4,422 23,034 69,568 - (99,385) (99,458) - - (99,385) (99,458) - - (107,264) (302,697) (3,995) 4,422 (76,424) 69,568 - 1,148,367 577,850 239,068 393,922 4,004,099 414,156 6,600 $ 1,041,103 $ 275,153 $ 235,073 $ 398,344 $ 3,927,675 $ 483,724 $ 6,600 $ 127 242 City of Dublin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2022 Special Revenue Funds Federal Building State COVID-19 American Homes and Housing COVID-19 Financial Rescue Jobs Act Grant Grants Assistance Plan Act REVENUES: Intergovernmental $ - $ - $ - $ 10,081 $ 2,027,867 Charges for service - - - Interest - - - Fines and forfeitures - - - Development revenue - - - Other revenue - - - Special assessments - - - Total revenues - 10,081 2,027,867 EXPENDITURES: Current: General Government - - 309,370 1,340,957 Police - - - 606,230 Fire - - - Public works - - - Park and community services - - - Community development 90,657 58,088 - 80,680 Debt service: Principal - - - Total expenditures 90,657 58,088 309,370 2,027,867 REVENUES OVER (UNDER) EXPENDITURES (90,657) (58,088) (299,289) - OTHER FINANCING SOURCES (USES): Proceeds from long term debt - - - Transfers out - - - Total other financing sources (uses) - - - Net change in fund balances (90,657) (58,088) (299,289) - FUND BALANCES (DEFICITS): Beginning of year (187,356) (18,825) 359,140 - End of year $ (278,013) $ (76,913) $ - $ 59,851 $ - 128 243 Special Revenue Funds Capital Projects Fund Maintenance Districts Energy Measure RR - 1983-1 1983-2 1986-1 1997-1 1999-1 Dublin Improvement Safe Routes Street Stagecoach Dougherty Santa Rita East Dublin Crossing Lease Revenue to BART Lighting Landscape Landscape Landscape Street Lighting CFD No. 2017-1 Bond $ 121,242 $ - $ - $ - $ - $ - $ - $ 6,528 3,681 5,769 13,682 13,103 3,196 149,191 315,143 99,852 160,498 359,941 310,590 73,948 121,242 321,671 103,533 166,267 373,623 323,693 77,144 149,191 259,306 57,131 98,762 354,352 233,945 5,237 419,521 259,306 57,131 98,762 354,352 233,945 5,237 419,521 121,242 62,365 46,402 67,505 19,271 89,748 71,907 (270,330) (121,242) (121,242) - - - - 21,042,136 - (9,699) (332,333) - (11,731,890) - (9,699) (332,333) - 9,310,246 62,365 46,402 57,806 19,271 (242,585) 71,907 9,039,916 559,711 308,759 492,132 1,176,419 1,205,664 257,345 $ - $ 622,076 $ 355,161 $ 549,938 $ 1,195,690 $ 963,079 $ 329,252 $ 9,039,916 129 244 Total Nonmajor Governmental Funds $ 9,254,642 7,824,242 363,620 122,304 47,554 180,816 1,527,035 19,320,213 10,245,150 1,094,900 182,285 2,283,403 67,830 229,425 419,521 14,522,514 4,797,699 21,042,136 (15,567,515) 5,474,621 10,272,320 18,738,644 $ 29,010,964 130 245 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Special Criminal Activity Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 200 $ 200 $ 659 $ Other revenues - 74,000 80,816 Total revenues 459 6,816 200 74,200 81,475 7,275 EXPENDITURES: Current: Police - 35,000 13,874 21,126 Total expenditures - 35,000 13,874 21,126 REVENUES OVER (UNDER) EXPENDITURES 200 39,200 67,601 28,401 Net change in fund balance $ 200 $ 39,200 67,601 $ 28,401 FUND BALANCE: Beginning of year 24,728 End of year $ 92,329 131 246 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Vehicle Abatement Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 34,000 $ 34,000 $ 82,562 $ 48,562 Interest 2,000 2,000 3,417 1,417 Total revenues 36,000 36,000 85,979 49,979 EXPENDITURES: Current: Police - 45,458 9,782 35,676 Total expenditures - 45,458 9,782 35,676 REVENUES OVER (UNDER) EXPENDITURES 36,000 (9,458) 76,197 85,655 OTHER FINANCING SOURCES (USES): Transfers out (50,000) (50,000) (25,803) 24,197 Total other financing sources (uses) (50,000) (50,000) (25,803) 24,197 Net change in fund balance $ (14,000) $ (59,458) 50,394 $ 109,852 FUND BALANCE: Beginning of year 276,429 End of year $ 326,823 132 247 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Supplemental Law Enforcement Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 100,000 $ 150,000 $ 211,285 $ 61,285 Interest 1,000 1,000 3,086 2,086 Total revenues 101,000 151,000 214,371 63,371 EXPENDITURES: Current: Police 100,000 150,000 150,002 (2) Total expenditures 100,000 150,000 150,002 (2) REVENUES OVER (UNDER) EXPENDITURES 1,000 1,000 64,369 63,369 Net change in fund balance $ 1,000 $ 1,000 64,369 $ 63,369 FUND BALANCE: Beginning of year 216,012 End of year $ 280,381 133 248 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Traffic Safety Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 200 $ 200 $ - $ Fines and forfeitures 140,000 140,000 122,304 (200) (17,696) Total revenues 140,200 140,200 122,304 (17,896) EXPENDITURES: Current: Public works and transportation 123,600 176,735 168,247 8,488 Total expenditures 123,600 176,735 168,247 8,488 REVENUES OVER (UNDER) EXPENDITURES 16,600 (36,535) (45,943) (9,408) Net change in fund balance $ 16,600 $ FUND BALANCE: Beginning of year End of year (36,535) (45,943) $ (9,408) (9,849) $ (55,792) 134 249 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Federal Asset Seizure Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) EXPENDITURES: Current: Police $ - $ 650 $ 650 $ Total expenditures - 650 650 Net change in fund balance $ - $ (650) (650) $ FUND BALANCE: Beginning of year 650 End of year $ 135 250 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Emergency Medical Services Special Revenue Fund For the year ended June 30, 2022 REVENUES: Interest Special assessments Total revenues EXPENDITURES: Current: Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 1,500 $ 1,500 $ 2,838 $ 1,338 207,789 207,789 207,063 (726) 209,289 209,289 209,901 612 Fire 183,030 183,030 182,285 745 Total expenditures 183,030 183,030 182,285 745 REVENUES OVER (UNDER) EXPENDITURES 26,259 26,259 27,616 1,357 Net change in fund balance $ 26,259 $ FUND BALANCE: Beginning of year End of year 26,259 27,616 $ 1,357 217,944 $ 245,560 136 251 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Enforcement Grants Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 329,590 $ 329,590 $ 314,362 $ (15,228) Interest 500 500 - (500) Total revenues 330,090 330,090 314,362 (15,728) EXPENDITURES: Current: Police 329,590 329,590 314,362 15,228 Total expenditures 329,590 329,590 314,362 15,228 REVENUES OVER (UNDER) EXPENDITURES 500 500 - (500) OTHER FINANCING SOURCES (USES): Transfers out - (134,516) (132,993) 1,523 Total other financing sources (uses) - (134,516) (132,993) 1,523 Net change in fund balance $ 500 $ (134,016) (132,993) $ FUND BALANCE: Beginning of year 134,517 End of year $ 1,524 1,023 137 252 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual State Gas Tax Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 1,611,931 $ 1,611,931 $ 1,532,287 $ (79,644) Interest 20,000 20,000 39,397 19,397 Total revenues 1,631,931 1,631,931 1,571,684 (60,247) EXPENDITURES: Current: Public works and transportation 666,248 704,638 532,834 171,804 Total expenditures 666,248 704,638 532,834 171,804 REVENUES OVER (UNDER) EXPENDITURES 965,683 927,293 1,038,850 111,557 OTHER FINANCING SOURCES (USES): Transfers out (784,000) (3,546,383) (387,671) 3,158,712 Total other financing sources (uses) (784,000) (3,546,383) (387,671) 3,158,712 Net change in fund balance $ 181,683 $ (2,619,090) 651,179 $ 3,270,269 FUND BALANCE: Beginning of year 3,075,486 End of year $ 3,726,665 138 253 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B Sales Tax Local Streets Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 594,000 $ 594,000 $ 542,520 $ (51,480) Interest 3,000 3,000 8,939 5,939 Total revenues 597,000 597,000 551,459 (45,541) OTHER FINANCING SOURCES (USES): Transfers out (572,000) (1,186,161) (530,456) 655,705 Total other financing sources (uses) (572,000) (1,186,161) (530,456) 655,705 Net change in fund balance $ 25,000 $ (589,161) 21,003 $ 610,164 FUND BALANCE: Beginning of year 895,198 End of year $ 916,201 139 254 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B Sales Tax Bike/Pedestrian Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 216,000 $ 216,000 $ 196,506 $ (19,494) Interest 1,500 1,500 3,056 1,556 Total revenues 217,500 217,500 199,562 (17,938) EXPENDITURES: Current: Public works and transportation 18,000 18,000 6,654 11,346 Total expenditures 18,000 18,000 6,654 11,346 REVENUES OVER (UNDER) EXPENDITURES 199,500 199,500 192,908 (6,592) OTHER FINANCING SOURCES (USES): Transfers out (18,400) (403,117) (57,711) 345,406 Total other financing sources (uses) (18,400) (403,117) (57,711) 345,406 Net change in fund balance $ 181,100 $ (203,617) 135,197 $ 338,814 FUND BALANCE: Beginning of year 204,843 End of year $ 340,040 140 255 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B Grants Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ - $ - $ 2,109 $ 2,109 Total revenues - - 2,109 2,109 Net change in fund balance $ - $ - 2,109 $ 2,109 FUND BALANCE: Beginning of year 185,808 End of year $ 187,917 141 256 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB Sales Tax Streets and Roads Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 533,000 $ 533,000 $ 817,456 $ 284,456 Interest 4,000 4,000 4,188 188 Total revenues 537,000 537,000 821,644 284,644 OTHER FINANCING SOURCES (USES): Transfers out (374,000) (887,031) (441,051) 445,980 Total other financing sources (uses) (374,000) (887,031) (441,051) 445,980 Net change in fund balance $ 163,000 $ (350,031) 380,593 $ 730,624 FUND BALANCE: Beginning of year 367,744 End of year $ 748,337 142 257 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB Sales Tax Bike/Pedestrian Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 176,000 $ 176,000 $ 269,205 $ 93,205 Interest 1,000 1,000 2,890 1,890 Total revenues 177,000 177,000 272,095 95,095 OTHER FINANCING SOURCES (USES): Transfers out (38,758) (358,457) (52,871) 305,586 Total other financing sources (uses) (38,758) (358,457) (52,871) 305,586 Net change in fund balance $ 138,242 $ (181,457) 219,224 $ 400,681 FUND BALANCE: Beginning of year 186,552 End of year $ 405,776 143 258 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB Grants Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 4,751,000 $ 4,751,000 $ 444,014 $ (4,306,986) Total revenues 4,751,000 4,751,000 444,014 (4,306,986) OTHER FINANCING SOURCES (USES): Transfers out - (5,381,871) (309,856) 5,072,015 Total other financing sources (uses) - (5,381,871) (309,856) 5,072,015 Net change in fund balance $ 4,751,000 $ (630,871) 134,158 $ 765,029 FUND BALANCE: Beginning of year (110,846) End of year $ 23,312 144 259 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Transportation for Clean Air (TFCA) Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 856,419 $ 1,002,419 $ 274,581 $ (727,838) Total revenues 856,419 1,002,419 274,581 (727,838) OTHER FINANCING SOURCES (USES): Transfers out - (1,002,419) (739,714) 262,705 Total other financing sources (uses) - (1,002,419) (739,714) 262,705 Net change in fund balance $ 856,419 $ - (465,133) $ (465,133) FUND BALANCE: End of year $ (465,133) 145 260 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Road Maintenance & Rehabilitation Account (RMRA) Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 1,220,339 $ 1,220,339 $ 1,382,546 $ 162,207 Interest 5,000 5,000 25,582 20,582 Total revenues 1,225,339 1,225,339 1,408,128 182,789 OTHER FINANCING SOURCES (USES): Transfers out (1,242,281) (2,887,249) (476,561) 2,410,688 Total other financing sources (uses) (1,242,281) (2,887,249) (476,561) 2,410,688 Net change in fund balance $ (16,942) $ (1,661,910) 931,567 $ 2,593,477 FUND BALANCE: Beginning of year 1,917,898 End of year $ 2,849,465 146 261 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual ACTC Vehicle Registration Fee Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 267,867 $ 267,867 $ 287,282 $ 19,415 Interest 2,000 2,000 2,421 421 Total revenues 269,867 269,867 289,703 19,836 EXPENDITURES: Current: Public works and transportation 262,400 262,400 246,927 15,473 Total expenditures 262,400 262,400 246,927 15,473 REVENUES OVER (UNDER) EXPENDITURES 7,467 7,467 42,776 35,309 OTHER FINANCING SOURCES (USES): Transfers out (8,000) (123,896) (18,821) 105,075 Total other financing sources (uses) (8,000) (123,896) (18,821) 105,075 Net change in fund balance $ (533) $ (116,429) 23,955 $ 140,384 FUND BALANCE: Beginning of year 218,479 End of year $ 242,434 147 262 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual TDA Special Revenue Fund For the year ended June 30, 2022 REVENUES: Intergovernmental Interest Total revenues Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ - $ 17,317 $ - - 99 17,317 99 17,416 17,416 OTHER FINANCING SOURCES (USES): Transfers out - (17,317) - 17,317 Total other financing sources (uses) - (17,317) - 17,317 Net change in fund balance $ - $ (17,317) 17,416 $ 34,733 FUND BALANCE: End of year $ 17,416 148 263 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Garbage/Recycling Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 263,000 $ 263,000 $ 317,749 $ 54,749 Charges for services 6,787,400 7,594,125 7,697,411 103,286 Interest 7,500 7,500 12,757 5,257 Other revenues 1,000 1,000 - (1,000) Total revenues 7,058,900 7,865,625 8,027,917 162,292 EXPENDITURES: Current: General government 6,787,400 7,594,125 7,721,768 (127,643) Public works and transportation 387,220 652,961 314,028 338,933 Total expenditures 7,174,620 8,247,086 8,035,796 211,290 REVENUES OVER (UNDER) EXPENDITURES (115,720) (381,461) (7,879) 373,582 OTHER FINANCING SOURCES (USES): Transfers out - (110,808) (99,385) 11,423 Total other financing sources (uses) - (110,808) (99,385) 11,423 Net change in fund balance $ (115,720) $ (492,269) (107,264) $ 385,005 FUND BALANCE: Beginning of year 1,148,367 End of year $ 1,041,103 149 264 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual AVI Economic Benefit/Business Assistance Program Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ - $ - $ 1,217 $ Other revenues 100,000 100,000 100,000 1,217 Total revenues 100,000 100,000 101,217 1,217 EXPENDITURES: Current: General government 100,000 100,000 403,914 (303,914) Total expenditures 100,000 100,000 403,914 (303,914) REVENUES OVER (UNDER) EXPENDITURES - - (302,697) (302,697) Net change in fund balance $ - $ - (302,697) $ (302,697) FUND BALANCE: Beginning of year 577,850 End of year $ 275,153 150 265 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Storm Water Management Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 1,750 $ 1,750 $ 1,985 $ 235 Total revenues 1,750 1,750 1,985 235 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 (10,250) (10,250) (3,995) 6,255 Net change in fund balance $ (10,250) $ (10,250) (3,995) $ 6,255 FUND BALANCE: Beginning of year 239,068 End of year $ 235,073 151 266 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Box Culvert Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 3,000 $ 3,000 $ 4,422 $ 1,422 Total revenues 3,000 3,000 4,422 1,422 Net change in fund balance $ 3,000 $ 3,000 4,422 $ 1,422 FUND BALANCE: Beginning of year 393,922 End of year $ 398,344 152 267 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Public Art Special Revenue Fund For the year ended June 30, 2022 REVENUES: Interest Development revenue Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 45,000 $ 45,000 $ 44,971 $ - - 45,893 (29) 45,893 Total revenues 45,000 45,000 90,864 45,864 EXPENDITURES: Current: Parks and community services 80,000 100,000 67,830 32,170 Total expenditures 80,000 100,000 67,830 32,170 REVENUES OVER (UNDER) EXPENDITURES (35,000) (55,000) 23,034 78,034 OTHER FINANCING SOURCES (USES): Transfers out (544,700) (1,395,317) (99,458) 1,295,859 Total other financing sources (uses) (544,700) (1,395,317) (99,458) 1,295,859 Net change in fund balance $ (579,700) $ (1,450,317) (76,424) $ 1,373,893 FUND BALANCE: Beginning of year 4,004,099 End of year $ 3,927,675 153 268 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Miscellaneous Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Charges for services $ 183,000 $ 183,000 $ 126,831 $ (56,169) Interest 1,600 1,600 4,437 2,837 Development revenue 714 714 1,661 947 Total revenues 185,314 185,314 132,929 (52,385) EXPENDITURES: Current: General government 70,558 70,558 63,361 7,197 Total expenditures 70,558 70,558 63,361 7,197 REVENUES OVER (UNDER) EXPENDITURES 114,756 114,756 69,568 (45,188) Net change in fund balance $ 114,756 $ 114,756 69,568 $ (45,188) FUND BALANCE: Beginning of year 414,156 End of year $ 483,724 154 269 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Community Development Block Grant Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 105,783 $ 405,783 $ 405,780 $ (3) Total revenues 105,783 405,783 405,780 (3) EXPENDITURES: Current: General government 99,183 399,183 405,780 (6,597) Total expenditures 99,183 399,183 405,780 (6,597) 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 $ - $ - - $ FUND BALANCE: Beginning of year 6,600 End of year $ 6,600 155 270 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual State Grant Park Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ - $ 271,600 $ - $ (271,600) Total revenues - 271,600 - (271,600) Net change in fund balance $ - $ 271,600 - $ (271,600) FUND BALANCE: End of year $ 156 271 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Building Homes and Jobs Act Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ - $ 310,000 $ - $ (310,000) Total revenues - 310,000 - (310,000) EXPENDITURES: Current: Community development - 122,645 90,657 31,988 Total expenditures - 122,645 90,657 31,988 REVENUES OVER (UNDER) EXPENDITURES - 187,355 (90,657) (278,012) Net change in fund balance $ - $ 187,355 (90,657) $ (278,012) FUND BALANCE: Beginning of year (187,356) End of year $ (278,013) 157 272 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual State Housing Grant Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) EXPENDITURES: Current: Community development $ - $ 281,175 $ 58,088 $ 223,087 Total expenditures - 281,175 58,088 223,087 Net change in fund balance $ - $ (281,175) (58,088) $ 223,087 FUND BALANCE: Beginning of year (18,825) End of year $ (76,913) 158 273 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Federal COVID-19 Financial Assistance Special Revenue Fund For the year ended June 30, 2022 REVENUES: Intergovernmental Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ $ 10,081 $ 10,081 Total revenues - - 10,081 10,081 EXPENDITURES: Current: General government - - 309,370 (309,370) Total expenditures - - 309,370 (309,370) REVENUES OVER (UNDER) EXPENDITURES - - (299,289) (299,289) Net change in fund balance $ - $ - (299,289) $ (299,289) FUND BALANCE: Beginning of year 359,140 End of year $ 59,851 159 274 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual American Rescue Plan Act Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ 6,101,038 $ 3,544,256 $ 2,027,867 $ (1,516,389) Total revenues 6,101,038 3,544,256 2,027,867 (1,516,389) EXPENDITURES: Current: General government 6,101,038 1,852,407 1,340,957 511,450 Police - 828,826 606,230 222,596 Community development - 97,000 80,680 16,320 Total expenditures 6,101,038 2,778,233 2,027,867 750,366 REVENUES OVER (UNDER) EXPENDITURES - 766,023 - (766,023) Net change in fund balance $ - $ 766,023 - $ (766,023) FUND BALANCE: End of year 160 275 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure RR Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Intergovernmental $ - $ 1,500,000 $ 121,242 $ (1,378,758) Total revenues - 1,500,000 121,242 (1,378,758) OTHER FINANCING SOURCES (USES): Transfers out - (1,500,000) (121,242) 1,378,758 Total other financing sources (uses) - (1,500,000) (121,242) 1,378,758 Net change in fund balance $ - $ - - $ FUND BALANCE: End of year $ 161 276 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1983-1 Street Lighting Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 2,500 $ 2,500 $ 6,528 $ 4,028 Special assessments 320,395 320,395 315,143 (5,252) Total revenues 322,895 322,895 321,671 (1,224) EXPENDITURES: Current: Public works and transportation 280,130 280,130 259,306 20,824 Total expenditures 280,130 280,130 259,306 20,824 REVENUES OVER (UNDER) EXPENDITURES 42,765 42,765 62,365 19,600 Net change in fund balance $ 42,765 $ 42,765 62,365 $ 19,600 FUND BALANCE: Beginning of year 559,711 End of year $ 622,076 162 277 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1983-2 Stagecoach Landscape Special Revenue Fund For the year ended June 30, 2022 REVENUES: Interest Special assessments Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 1,500 $ 105,838 1,500 $ 105,838 3,681 $ 99,852 2,181 (5,986) Total revenues 107,338 107,338 103,533 (3,805) EXPENDITURES: Current: Public works and transportation 78,138 78,138 57,131 21,007 Total expenditures 78,138 78,138 57,131 21,007 REVENUES OVER (UNDER) EXPENDITURES 29,200 29,200 46,402 17,202 Net change in fund balance $ 29,200 $ FUND BALANCE: Beginning of year End of year 29,200 46,402 $ 17,202 308,759 $ 355,161 163 278 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1986-1 Dougherty Landscape Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 2,500 $ 2,500 $ 5,769 $ Special assessments 141,856 141,856 160,498 3,269 18,642 Total revenues 144,356 144,356 166,267 21,911 EXPENDITURES: Current: Public works and transportation 135,512 135,512 98,762 36,750 Total expenditures 135,512 135,512 98,762 36,750 REVENUES OVER (UNDER) EXPENDITURES 8,844 8,844 67,505 58,661 OTHER FINANCING SOURCES (USES): Transfers out (400,000) (400,000) (9,699) 390,301 Total other financing sources (uses) (400,000) (400,000) (9,699) 390,301 Net change in fund balance $ (391,156) $ (391,156) 57,806 $ 448,962 FUND BALANCE: Beginning of year 492,132 End of year $ 549,938 164 279 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1997-1 Santa Rita Landscape Special Revenue Fund For the year ended June 30, 2022 REVENUES: Interest Special assessments Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 7,000 $ 7,000 $ 13,682 $ 397,549 397,549 359,941 6,682 (37,608) Total revenues 404,549 404,549 373,623 (30,926) EXPENDITURES: Current: Public works and transportation 363,164 363,164 354,352 8,812 Total expenditures 363,164 363,164 354,352 8,812 REVENUES OVER (UNDER) EXPENDITURES 41,385 41,385 19,271 (22,114) Net change in fund balance $ 41,385 $ 41,385 19,271 $ (22,114) FUND BALANCE: Beginning of year 1,176,419 End of year $ 1,195,690 165 280 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Maintenance Districts 1999-1 East Dublin Street Lighting Special Revenue Fund For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Interest $ 8,000 $ 8,000 $ 13,103 $ Special assessments 340,669 340,669 310,590 5,103 (30,079) Total revenues 348,669 348,669 323,693 (24,976) EXPENDITURES: Current: Public works and transportation 251,900 251,900 233,945 17,955 Total expenditures 251,900 251,900 233,945 17,955 REVENUES OVER (UNDER) EXPENDITURES 96,769 96,769 89,748 (7,021) OTHER FINANCING SOURCES (USES): Transfers out (40,106) (837,242) (332,333) 504,909 Total other financing sources (uses) (40,106) (837,242) (332,333) 504,909 Net change in fund balance $ 56,663 $ (740,473) (242,585) $ 497,888 FUND BALANCE: Beginning of year 1,205,664 End of year $ 963,079 166 281 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Dublin Crossing Community Facilities District No. 2017-1 Special Revenue Fund For the year ended June 30, 2022 REVENUES: Interest Special assessments Total revenues Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 750 $ 115,000 750 $ 115,000 3,196 $ 73,948 2,446 (41,052) 115,750 115,750 77,144 (38,606) EXPENDITURES: Current: Public works and transportation 23,077 23,077 5,237 17,840 Capital outlay: Streets 8,019 8,019 - 8,019 REVENUES OVER (UNDER) EXPENDITURES 84,654 84,654 71,907 (12,747) Net change in fund balance $ 84,654 $ 84,654 71,907 $ (12,747) FUND BALANCE: Beginning of year 257,345 End of year $ 329,252 167 282 City of Dublin Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Energy Improvement Lease Revenue Bond Capital Projects Fund For the year ended June 30, 2022 REVENUES: Interest Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ - $ 149,191 $ 149,191 Total revenues - - 149,191 149,191 EXPENDITURES: Interest and fiscal charges - - 419,521 (419,521) Total expenditures - - 419,521 (419,521) REVENUES OVER (UNDER) EXPENDITURES - - (270,330) (270,330) OTHER FINANCING SOURCES (USES): Proceeds from long-term debt - 20,622,615 21,042,136 419,521 Transfers out - (20,622,615) (11,731,890) 8,890,725 Total other financing sources (uses) - - 9,310,246 9,310,246 Net change in fund balance $ - $ - 9,039,916 $ 9,039,916 FUND BALANCE: Beginning of year - End of year $ 9,039,916 168 283 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. 169 284 City of Dublin Combining Statement of Net Position Internal Service Funds June 30, 2022 Vehicle Building Equipment Replacement Replacement Replacement ASSETS Current assets: Cash and investments $ 2,005,017 $ 10,212,651 $ 7,649,348 Accounts receivable - Prepaids and other - Total current assets 2,005,017 10,212,651 7,649,348 Noncurrent assets: Capital Assets: Land - Construction in progress Infrastructure - Building and improvements - Vehicles and equipment 8,151,712 Less accumulated depreciation (3,979,765) 10,774,792 5,815,642 622,831 63,177,051 (44,700,692) 659,563 122,183 1,963,695 (1,129,458) Net capital assets 4,171,947 35,689,624 1,615,983 Total assets 6,176,964 45,902,275 9,265,331 LIABILITIES Current liabilities: Accounts payable and accruals - 7,237 Due to other funds - Total current liabilities - 7,237 Total liabilities - 7,237 NET POSITION (DEFICIT) Net investment in capital assets 4,171,947 35,689,624 Unrestricted 2,005,017 10,212,651 1,615,983 7,642,111 Total net position (deficit) $ 6,176,964 $ 45,902,275 $ 9,258,094 170 285 Retiree Information Health Care Technology Total $ - $ 1,517,540 $ 21,384,556 110,919 - 110,919 195,695 47,218 242,913 306,614 1,564,758 21,738,388 - 10,774,792 845,016 7,320,221 - 745,014 42,732 63,219,783 46,084 10,161,491 (42,708) (49,852,623) 891,124 42,368,678 306,614 2,455,882 64,107,066 (11,721) 125,513 121,029 269,953 - 269,953 258,232 125,513 390,982 258,232 125,513 390,982 - 891,124 42,368,678 48,382 1,439,245 21,347,406 $ 48,382 $ 2,330,369 $ 63,716,084 171 286 City of Dublin Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds For the year ended June 30, 2022 Vehicle Building Equipment Replacement Replacement Replacement OPERATING REVENUES: Charges for services $ 539,535 $ 348,508 $ 988,715 Other revenue - Total operating revenues 539,535 348,508 988,715 OPERATING EXPENSES: Supplies and services (2,082,184) 60,375 Retiree health premiums - Depreciation 437,157 2,135,061 166,700 Total operating expenses (1,645,027) 2,135,061 227,075 OPERATING INCOME (LOSS) 2,184,562 (1,786,553) 761,640 NONOPERATING REVENUES (EXPENSES): Interest income Total nonoperating revenues (expenses) 25,051 100,264 80,994 25,051 100,264 80,994 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS: 2,209,613 (1,686,289) Transfers in - 1,000,000 Transfers (out) - Total transfers Change in net position NET POSITION (DEFICIT): 842,634 - 1,000,000 2,209,613 (686,289) 842,634 Beginning of year 3,967,351 46,588,564 8,415,460 End of year $ 6,176,964 $ 45,902,275 $ 9,258,094 172 287 Retiree Information Health Care Technology Total $ - $ 2,165,002 $ 4,041,760 932,849 - 932,849 932,849 2,165,002 4,974,609 922,266 1,925,193 (96,616) - 922,266 10,260 2,749,178 922,266 1,935,453 3,574,828 10,583 229,549 1,399,781 14,599 220,908 14,599 220,908 10,583 244,148 1,620,689 - 1,000,000 (120,485) (120,485) (120,485) 879,515 10,583 123,663 2,500,204 37,799 2,206,706 61,215,880 $ 48,382 $ 2,330,369 $ 63,716,084 173 288 City of Dublin Combining Statement of Cash Flows Internal Service Funds For the year ended June 30, 2022 Vehicle Building Equipment Replacement Replacement Replacement CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers $ 2,603,330 $ 348,508 $ Payments to suppliers and service providers - Other revenues - 988,715 (53,138) Net cash provided by (used in) operating activities 2,603,330 348,508 935,577 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Cash receipts from other funds 1,000,000 Cash disbursements to other funds Net cash provided by (used in) noncapital financing activities 1,000,000 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Purchase of capital assets (2,804,106) - (223,782) Net cash used in capital and related financing activities (2,804,106) - (223,782) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 25,051 100,264 80,994 Net cash provided by investing activities 25,051 100,264 80,994 Net Cash Flows (175,725) 1,448,772 792,789 CASH AND CASH EQUIVALENTS - Beginning of year 2,180,742 8,763,879 6,856,559 CASH AND CASH EQUIVALENTS - End of year $ 2,005,017 $ 10,212,651 $ 7,649,348 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: Operating income (loss) $ 2,184,562 $ (1,786,553) $ 761,640 Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities: Depreciation 437,157 2,135,061 166,700 Change in assets and liabilities Prepaids Accounts payable and accruals (18,389) - 7,237 Net cash provided by (used in) operating activities $ 2,603,330 $ 348,508 $ 935,577 174 289 Retiree Information Health Care Technology Total $ - $ 2,165,002 $ 6,105,555 (1,168,544) (1,731,978) (2,953,660) 932,849 932,849 (235,695) 433,024 4,084,744 235,695 1,235,695 - (120,485) (120,485) 235,695 (120,485) 1,115,210 (120,484) (3,148,372) (120,484) (3,148,372) 14,599 220,908 14,599 220,908 206,654 2,272,490 1,310,886 19,112,066 $ - $ 1,517,540 $ 21,384,556 $ 10,583 $ 229,549 $ 1,399,781 (142,484) 10,260 2,749,178 135,078 (7,406) (2) 58,137 46,983 $ (235,695) $ 433,024 $ 4,084,744 175 290 This page intentionally left blank 176 291 CUSTODIAL FUNDS 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. 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 Custodial Fund is custodial in nature (uses the economic resources measurement focus). CFD bonds are not debt obligations of the City. 177 292 City of Dublin Combining Statement of Fiduciary Net Position Custodial Funds June 30, 2022 Dublin Geologic Hazard Abatement Districts 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 $ 9,414 $ 8,051,809 $ 5,854,322 $ 2,397,703 $ 28,936,761 $ 45,250,009 Accounts receivable 4,980 - 787 21,472 27,239 Due to trustee - - - - Total assets 9,414 8,056,789 5,854,322 2,398,490 28,958,233 45,277,248 LIABILITIES Accounts payable 7,595 15,079 782 - 23,456 Total liabilities 7,595 15,079 782 - 23,456 NET POSITION Restricted for: Individuals, organizations, and other governments 9,414 8,049,194 5,839,243 2,397,708 28,958,233 45,253,792 Total net position $ 9,414 $ 8,049,194 $ 5,839,243 $ 2,397,708 $ 28,958,233 $ 45,253,792 178 293 City of Dublin Combining Statement of Changes in Fiduciary Net Position Custodial Funds For the year ended June 30, 2022 ADDITIONS: Special assessments Investment income Proceeds from bonds Property tax distribution Other Total additions DEDUCTIONS: Dublin Geologic Hazard Abatement Districts Boulevard Fallon Community Extension Crossing Facilities Total Assessment Fallon Schnaefer (North District Custodial District Village Ranch Tassajara) No. 2015-1 Funds $ - $ 1,143,973 $ 550,073 $ 680,838 $ 4,819,648 $ 7,194,532 105 83,032 62,280 22,346 1,410 169,173 - - 28,862,448 28,862,448 3,228 1,656 5,425 15,890 26,199 - - 75,000 75,000 105 1,230,233 614,009 708,609 33,774,396 36,327,352 Administration - - 13,614,436 13,614,436 Project payments 158,830 146,660 30,710 - 336,200 Payments of bonds principal - - 280,000 280,000 Interest expense - - 4,022,998 4,022,998 Total deductions 158,830 146,660 30,710 17,917,434 18,253,634 Change in net position 105 1,071,403 467,349 677,899 15,856,962 18,073,718 NET POSITION: Beginning of year 9,309 6,977,791 5,371,894 1,719,809 13,101,271 27,180,074 End of year $ 9,414 $ 8,049,194 $ 5,839,243 $ 2,397,708 $ 28,958,233 $ 45,253,792 179 294 This page intentionally left blank 180 295 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. Index Financial Trends These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability issues additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. 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. 181 296 CITY OF DUBLIN, CALIFORNIA Net Position by Component Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2013 2014 2015 2016 Governmental Activities Net Investment in Capital Assets $ 432,722,323 $ 445,529,366 $ 444,832,546 $ 460,963,292 Restricted 52,548,095 60,808,540 74,738,217 97,592,438 Unrestricted 99,084,771 97,918,858 107,176,361 111,725,077 Total Primary Government $ 584,355,189 $ 604,256,764 $ 626,747,124 $ 670,280,807 Source: City of Dublin Administrative Services Department 182 297 Fiscal Year 2017 2018 2019 2020 2021 2022 $ 487,123,214 $ 501,516,781 $ 531,251,006 $ 539,809,963 $ 537,970,764 $ 543,285,634 94,745,655 107,452,493 105,409,183 109,947,040 107,140,245 118,161,236 120,464,219 141,008,993 177,705,220 193,382,816 211,211,541 228,371,331 $ 702,333,088 $ 749,978,267 $ 814,365,409 $ 843,139,819 $ 856,322,550 $ 889,818,201 183 298 CITY OF DUBLIN, CALIFORNIA Changes in Net Position Last Ten Fiscal Years (Accrual Basis of Accounting) Expenses Governmental Activities General government Police Fire Public works Parks and community services Community development Interest on long-term debt Total Governmental Activities Expenses Program Revenues Governmental Activities Charges for Services General government Police Fire Public works Parks and community services Community development Operating Contributions and Grants Capital Contributions and Grants Total Governmental Activities Program Revenues Net (Expense)/Revenue Governmental Activities General Revenues and Other Changes in Net Position Governmental Activities Taxes Property taxes Special assessment taxes Sales tax Other taxes Investment Income, Unrestricted Other General Revenues Total Governmental Activities Change in Net Position Governmental Activities Fiscal Year 2013 2014 $ 10,265,476 $ 17,492,272 $ 15,847,910 16,393,410 10,998,135 11,376,701 10,995,138 8,363,186 10,772,868 9,018,161 9,979,877 9,169,788 172,949 2015 11,296,896 $ 15,325,113 12,198,769 15,336,225 12,149,716 5,713,196 156,897 2016 19,689,049 18,316,420 14,725,476 13,883,008 14,625,459 11,410,946 147,195 68,859,404 71,986,467 72,176,812 92,797,553 $ 142,353 328,275 2,153,785 3,892,845 2,463,146 9,540,241 1,135,050 28,689,753 $ 153,544 286,220 1,877,865 4,116,145 2,753,911 10,393,367 1,674, 815 20,914,994 $ 5,777,971 399,802 1,746,581 2,987,235 3,009,383 7,657,467 955,677 21,931,981 $ 5,209,378 362,054 1,633,056 2,698,767 2,931,553 13,217,027 1,629,137 38,433,119 48,345,448 42,170,861 44,466,097 66,114,091 $ (20,513,956) $ (29,815,606) $ (27,710,715) $ (26,683,462) 22,646,498 943,604 15,359,340 5,054,257 (399,590) 4,93 8,165 24,274,856 1,011,452 17,833,314 5,427,627 853,147 316,785 29,437,951 1,264,204 19,211,823 6,159,654 592,881 429,328 33,598,601 1,359,212 22,070,547 6,606,016 2,937,999 3,644,670 48,542,274 49,717,181 57,095,841 70,217,045 $ 28,028,318 $ Source: City of Dublin Administrative Services Department 19,901,575 $ 29,385,126 $ 43,533,583 184 299 Fiscal Year 2017 $ 14,276,843 $ 17,080,942 13,687,195 18,351,543 11,193,876 14,249,950 136,867 2018 16,803,802 $ 19,423,830 13,315,788 17,147,611 15,640,280 7,074,630 125,881 2019 15,387,028 $ 21,814,982 14,152,331 24,131,711 12,750,878 5,606,118 2020 24,851,393 $ 22,483,378 14,122,166 21,103,350 10,548,537 5,406,572 2021 2022 23,710,251 $ 24,681,714 15,227,074 23,769,070 9,327,718 11,384,023 23,516,577 24,439,146 14,657,052 25,252,334 11,745,611 6,777,210 336,950 88,977,216 89,531,822 93,843,048 98,515,396 108,099,850 106,724,880 $ 5,402,925 322,231 1,426,973 3,386,621 2,950,625 9,334,477 8,008,289 21,133,748 $ 6,060,099 335,929 1,551,899 3,517,700 4,638,050 10,139,788 12,577,699 23,43 8,110 $ 6,520,152 330,280 1,708,807 3,132,543 5,287,193 7,742,076 7,633,916 34,517,687 $ 7,507,286 $ 244,363 1,603,243 2,471,032 3,237,611 4,402,789 4,940,586 9,192,691 9,113,104 214,223 2,103,228 2,453,787 1,388,778 5,182,639 5,545,115 5,674,477 $ 10,129,727 241,962 2,062,704 3,361,847 5,145,083 6,719,349 7,273,101 16,457,860 51,965,889 62,259,274 66,872,654 33,599,601 31,675,351 51,391,633 $ (37,011,327) $ (27,272,548) $ (26,970,394) $ (64,915,795) $ (76,424,499) $ (55,333,247) 36,964,785 40,628,040 44,293,602 1,416,721 1,472,933 1,469,840 21,186,333 21,134,636 26,297,803 6,834,545 43,787 8,223,510 (710,595) (558,269) 8,589,252 3,371,819 3,335,600 2,483,530 49,086,335 1,523,257 22,506,975 7,280,323 10,485,543 2,276,391 53,007,086 55,186,388 1,550,479 1,527,036 26,289,165 27,935,894 7,185,319 8,281,142 (975,548) (12,803,156) 2,550,729 8,601,594 69,063,608 66,056,727 91,357,537 93,158,824 89,607,230 88,728,898 $ 32,052,281 $ 38,784,179 $ 64,387,143 $ 28,243,029 $ 13,182,731 $ 33,395,651 185 300 General Fund Unreserved, designated for: Capital Improvements Projects Carryover Unreserved, undesignated: Non -Spendable Restricted Committed Assigned Unassigned Total General Fund All Other Governmental Funds Non -Spendable Restricted Committed Assigned Unassigned Total All Other Governmental Funds Total Governmental Funds CITY OF DUBLIN, CALIFORNIA Fund Balances of Governmental Funds Last Ten Fiscal Years (Accrual Basis of Accounting) Fiscal Year 2013 $ $ 2,836,130 500,000 36,020,171 23,912,896 14,047,932 77,317,129 2014 43,787 2,465,678 $ 500,000 34,124,267 29,259,333 13,228,484 79,621,549 2015 1,475,691 $ 500,000 38,531,179 35,875,264 21,324,360 97,706,494 2016 729,883 579,000 38,928,755 39,078,695 29,867,693 109,184,026 $ 53,646,702 $ 61,710,448 $ 75,646,848 $ 84,453,929 (1,098,607) (923,409) (930,131) 13,138,509 52,548,095 60,787,039 74,716,717 97,592,438 $ 129,865,224 $ 140,408,588 $ 172,423,211 $ 206,776,464 Source: City of Dublin Administrative Services Department 186 301 Fiscal Year 2017 2018 2019 2020 2021 2022 $ 198,878 $ 1,762,000 36,213,714 50,126,807 34,114,263 122,415,662 7,391 $ 1,938,000 43,740,492 57,267,840 39,158,943 142,112,666 12,818 $ 1,938,000 47,267,326 60,771,810 61,235,819 171,225,773 13,061 $ 1,938,000 57,828,475 64,004,658 66,865,027 190,649,221 13,266 $ 4,493,314 70,694,542 66,743,519 67,819,855 209,764,496 10,541 4,261,640 73,346,367 93,266,322 52,972,636 223,857,506 $ $ 82,686,743 650 105,476,681 $ 11,808,233 (1,998,366) 94,494,976 103 ,478,965 $ 216,910,638 $ 245,591,631 $ $ 107,090,763 (3,737,589) 103,353,174 274,578,947 $ 25,000 104,872,535 $ (3,522,706) 101,374,829 292,024,050 $ 102,613,783 $ (326,876) 102,286,907 312,051,403 $ 122,939,512 (875,851) 122,063,661 345,921,167 187 302 CITY OF DUBLIN, CALIFORNIA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Accrual Basis of Accounting) Revenues Property taxes Taxes other than property Intergovernmental Licenses and permits* Charges for services Investment income Use of property Fines and forteitures Development fees* Special assessments Other revernues Total Revenues Expenditures Current: General government Police Fire Public works Parks and community services Community development Capital Outlay: General Community improvements Parks Streets Debt Service: Principal Interest and fiscal charges Total Expenditures Excess of Revenues Over (Under) Expenditures Other Financing Sources (Uses) Proceeds from Debt Transfers In Transfers Out Total Other Financing Sources (Uses) Net Change in Fund Balances Debt Service as percentage of non -capital expenditures Fiscal Year 2013 $ 23,742,336 $ 20,915,025 4,534,748 258,782 11,979,079 (185,467) 580,507 326,027 24,413,988 980,775 9,232,055 2014 25,448,254 23,769,133 2,574,159 293,941 12,326,848 1,101,634 1,591,784 323,601 21,358,140 1,025,239 2,762,970 2015 $ 29,437,951 25,371,476 3,245,822 301,072 13,737,934 1,071,936 2,352,810 320,629 24,276,317 1,264,201 3,499,480 2016 $ 33,598,601 28,676,662 3,303,521 314,206 13,846,381 3,689,940 6,751,864 290,871 43,038,360 1,359,214 1,351,331 96,777,855 92,575,703 104,879,628 13 6,220, 951 7,600,102 8,411,507 11,471,412 20,715,735 15,719,694 16,155,083 15,697,432 17, 886,990 10,923,855 11,226,414 11,930,245 12,265,614 7,246,097 7,422,110 8,481,686 8,616,323 8,919,816 9,349,729 9,731,003 10,791,185 8,586,129 9,102,734 6,059,180 11,348,674 8,866,096 13,316,472 1,241,494 666,478 81,234 21,497 68,190 117,104 2,324,586 9,451,657 4,742,328 23,469,847 4,946,527 2,403,926 3,568,142 3,652,808 75,214,136 21,563,719 86,861,129 5,714,574 72,991,112 31,888,516 109,530,758 26,690,193 16,338,838 (9,515,805) 6,823,033 $ 28,386,752 $ 0.0% 25,192,268 9,625,456 27,912,037 (20,385,523) (9,455,561) (29,903,351) 4,806,745 169,895 (1,991,314) 10,521,319 $ 32,058,411 $ 24,698,879 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. 0.0% 0.0% Source: City of Dublin Administrative Services Department 188 303 Fiscal Year 2017 $ 36,964,784 28,020,877 9,352,861 318,981 14,185,768 168,792 1,539,669 260,220 26,866,804 1,416,721 1,763,454 2018 $ 40,628,040 27,089,866 12,415,367 318,400 17,859,770 666,808 1,669,841 275,665 24,465,477 1,472,932 7,363,700 2019 $ 44,293,602 32,949,484 8,961,332 291,788 16,786,806 10,345,636 1,519,342 265,971 21,426,005 1,469,839 4,963,646 2020 $ 49,086,335 28,312,778 7,411,403 236,972 14,433,980 12,006,831 1,381,729 196,840 10,178,191 1,523,256 1,675,842 2021 2022 $ 53,007,086 31,826,343 10,805,708 334,852 11,934,020 183,258 1,208,739 177,477 10,891,389 1,550,480 2,124,277 $ 55,186,388 34,391,349 9,579,161 354,643 15,941,968 (11,905,192) 2,032,711 193,018 24,862,035 7,760,922 1,527,035 120,858,931 134,225,866 143,273,451 126,444,157 124,043,629 139,924,038 13,313,517 14,020,898 14,894,745 23,151,872 22,104,295 23,539,492 17,183,853 19,355,889 21,983,278 22,177,174 23,755,356 25,381,768 13,442,239 13,431,891 14,269,535 14,244,913 14,760,311 15,699,080 13,433,983 10,718,547 14,708,764 13,821,133 14,105,010 15,710,181 8,934,718 13,585,706 9,708,040 7,228,275 6,085,251 8,756,857 11,652,735 6,700,773 5,543,073 4,989,648 10,033,900 5,795,288 1,922,766 2,380,766 11,240,369 9,828,253 6,614,602 12,978,975 3,854 76,795 26,113,810 10,606,254 1,081,809 6,180,120 4,170,540 13,400,686 10,516,675 12,832,455 14,666,554 5,488,030 3,116,314 4,030,047 1,345,484 1,368,186 1,368,186 1,368,186 505,000 419,521 116,518,150 4,340,781 105,055,458 29,170,408 109,464,353 33,809,098 108,477,604 17,966,553 106,113,765 17,929,864 126,216,895 13,707,143 5,450,042 38,313,026 (37,969,675) 5,793,393 $ 10,134,174 $ 0.0% 24,363,489 (24,852,904) (489,415) 28,680,993 $ 1.7% 27,100,426 (31,922,207) (4,821,781) 28,987,317 $ 1.9% 21,651,510 (22,172,960) (521,450) 17,445,103 $ 1.5% 14,046,539 (11,949,050) 2,097,489 20,027,353 $ 21,042,136 30,644,511 (31,524,026) 20,162,621 33,869,764 1.4% 1.0% 189 304 CITY OF DUBLIN, CALIFORNIA Assessed Value of Taxable Property Last Ten Fiscal Years 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 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% 2022 16,240,797,288 2,126,716,219 342,361,488 1,436,361,129 (240,405,849) 19,905,830,274 0.2358% Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls, 2012/13 through 2021/22 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. 190 305 This page intentionally left blank 191 306 CITY OF DUBLIN, CALIFORNIA Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (Rate per $100 of assessed value) City Direct Rates Overlapping Rates (1) 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 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 2021-22 1.00000 0.23582 0.00600 0.00000 0.04580 0.19640 0.00200 Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls, 2012/13 through 2021/22 (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. 192 307 Flood Zone 7 Livermore Valley State Water Joint Unified Bonds School Board Total City's Share County Wide Direct & Overlapping of 1% Levy per Go Bond Tax Rate Proposition 13 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 0.03070 0.00000 0.00410 1.28500 0.2817 193 308 CITY OF DUBLIN, CALIFORNIA Principal Property Tax Payers Current year and Nine Years Ago 2021-22 2012-13 Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Kaiser $ 339,231,020 1 1.70% Avalon at Dublin Station II, LP 209,809,146 2 1.05% California Commuity Housing Agency 197,562,928 3 0.99% GH Pacvest LLC 143,693,765 4 0.72% Dublin Crossing LLC 138,208,246 5 0.69% Ross Dress for Less 129,500,156 6 0.65% 4800 Tassajara Road Apts Invest LLC 128,178,499 7 0.64% Dublin Station Owner LLC 122,877,517 8 0.61% Dublin Corporate Center Owner LLC 116,926,847 9 0.59% Essex Dublin Owner, LP 110,905,485 10 0.56% Trust NOIP Dublin, LP $ 149,125,836 1 1.70% 4800 Tassajara Road Apts Invest LLC 112,164,410 2 1.28% Avalon at Dublin Station II, LP 87,066,583 3 0.99% Dublin Corporate Center I, LP 86,682,500 4 0.99% Bere Island Properties I, LLC 85,520,155 5 0.97% Tishman Speyer Archstone Smith 79,711,972 6 0.91% BIT Holding Sixty -Three, Inc 73,178,626 7 0.83% Standard Pacific Coporation 72,829,445 8 0.83% Kaiser 64,521,989 9 0.73% Ross Dress for Less 60,565,894 10 0.69% Subtotal $ 1,636,893,609 8.19% $ 871,367,410 9.91% Source: HDL Coren & Cone and Alameda County Assessor Combined Tax Rolls 194 309 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 2013 $ 24,769,806 $ 23,997,036 96.88% $ 527,988 $ 24,525,024 96.88% 2014 27,001,559 26,200,578 97.03% 432,070 26,632,648 97.03% 2015 31,129,982 30,434,412 97.77% 412,643 30,847,054 97.77% 2016 35,304,627 34,734,843 98.39% 357,472 35,092,315 98.39% 2017 38,529,558 38,100,547 98.89% 335,955 38,436,502 98.89% 2018 41,708,007 41,594,518 99.73% 362,487 41,957,005 99.73% 2019 45,499,386 45,357,078 99.69% 330,947 45,688,025 99.69% 2020 50,245,147 50,102,147 99.72% 379,250 50,481,396 99.72% 2021 54,024,719 53,621,996 99.25% 520,190 54,142,186 99.25% 2022 56,098,611 56,018,305 99.86% 425,907 56,444,212 99.86% Source: Alameda County Assessor Office 195 310 CITY OF DUBLIN, CALIFORNIA Direct and Overlapping Debt June 30, 2022 Total Property Tax Assessed Value of Taxable Property Estimated Outstanding Percentage Share of Debt Applicable to Overlapping 6/30/2022 City of Dublin (I) Debt OVERLAPPING TAX AND ASSESSMENT DEBT: Alameda County $ 183,745,000 5.765% $ 10,592,899 Bay Area Rapid Transit District 2,521,570,000 2.246% 56,634,462 Chabot -Las Positas Community College District 805,595,000 13.736% 110,656,529 Dublin Joint Unified School District 654,219,641 99.983% 654,108,424 East Bay Regional Park District 184,590,000 3.525% 6,506,798 City of Dublin Community Facilities District No. 2015-1 95,985,000 100.00% 95,985,000 California Statewide Communities Development Authority 1915 Act Bonds 797,180 100.00% 797,180 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 935,281,292 DIRECT AND OVERLAPPING GENERAL FUND DEBT Alameda County General Fund Obligations 742,688,000 5.765% 42,815,963 Alameda -Contra Costa Transit District Certificates of Participation 11,655,000 0.175% 20,396 City of Dublin General Fund Obligations (2) 20,454,565 100.00% 20,454,565 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 63,290,924 TOTAL DIRECT DEBT $ 20,454,565 TOTAL OVERLAPPING DEBT $ 978,117,651 COMBINED TOTAL DEBT (3) $ 998,572,216 RATIOS TO ASSESSED VALUATION: Total Overlapping Tax and Assessment Debt 4.68% Total Direct Debt 0.09% Combined Total Debt.. 4.99% Source: California Municipal Statistics, Inc. Notes: (I) 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 lease agreement dated 7/1/22. (3) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non -bonded capital lease obligations. 196 311 This page intentionally left blank 197 312 Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit CITY OF DUBLIN, CALIFORNIA Legal Debt Margin Information Last Ten Fiscal Years Fiscal Year 2012-13 2013-14 2014-15 2015-16 $ 333,865,688 $ 361,622,926 $ 416,774,836 $ 469,892,998 $ 333,865,688 $ 361,622,926 $ 416,774,836 $ 469,892,998 0.0% 0.0% 0.0% 0.0% (1) Source: City of Dublin Administrative Services Department (2) The legal debt margin for the City of Dublin, California, is calculated using a debt limit of 15 percent of the assessed value of property within the City limits. (Gov Code of State of California) (3) The government code provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel in now assessed at 100% of market value (as of the most recent change in ownership parcel) in ownership for that parcel. The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. 198 313 Legal Debt Margin Calculation for Fiscal Year 2021-22 Assessed value (net) - June 30, 2022 (1) Debt limit: 15% of assessed value Less total bonded debt, general obligation Legal debt margin (2) Conversion Percentage for Calculation of Debt Limit (3) Fiscal Year $ 19,905,830,274 2,985,874,541 $ 2,985,874,541 25% $ 746,468,635 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 $ 512,779,367 $ 555,041,084 $ 605,495,926 $ 668,604,022 $ 718,872,674 $ 746,468,635 $ 512,779,367 $ 555,041,084 $ 605,495,926 $ 668,604,022 $ 718,872,674 $ 746,468,635 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 199 314 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) 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 2021 71,674 4,465,505 62,303 4.2% 119 Sources: (1) US Census Buraeu, most recent estimates July 1, 2021 (2) State of California, Employment Development Department June 2022 (3) State of California, Department of Finance - California Cities Ranked by January 2022 Total Population 200 315 Fiscal Year Ended 30-Jun 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 CITY OF DUBLIN, CALIFORNIA Property Value, Construction, and Bank Deposits Last Ten Fiscal Years Total Number of Building Permits Issued (1) 2,425 2,443 2,068 2,812 2,806 2,803 1,866 2,393 2,437 Commercial Construction Value (1) $ 21,139,964 57,812,261 60,793,275 102,148,173 177,500,725 54,086,352 119,498,163 45,031,310 42,330,706 70,148,588 Source: 1) City of Dublin Community Development Depaitiiient Residential Construction Value (1) $ 386,984,935 322,511,777 295,988,465 323,747,409 308,916,668 383,817,023 272,846,465 157,262,586 177,291,325 258,217,767 Bank Deposits (2) N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 201 316 Employer CITY OF DUBLIN, CALIFORNIA Principal Employers Current Year and Prior Year (Dollars in thousands) 2013 2014 2015 2016 Estimated Estimated Estimated Estimated Number of Number of Number of Number of 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 5 465 6 465 6 325 6 Dublin Unified School District 755 2 733 3 1,117 3 915 2 Ross Stores Headquarters - NA 1,200 2 1,200 2 500 4 Patelco Credit Union - NA - NA - NA - NA Zeiss Meditec 535 4 535 5 535 5 500 4 Kaiser Permanente - NA - NA - NA - NA Target Stores - NA 412 7 388 7 350 5 Snowflake, Inc. - NA - NA - NA - NA TriNet - NA - NA - NA - NA City of Dublin 208 9 221 10 N/A N/A 237 9 SAP (Formerly: Sybase Corporation) 604 3 604 4 604 4 700 3 De Silva Gates Construction NA N/A N/A 300 9 300 7 Whole Foods NA NA NA NA Callidus Cloud NA N/A N/A 350 8 350 5 Micro Dental Laboratories 242 8 242 8 - NA - NA Safeway 284 7 284 9 284 10 280 8 Taleo - NA - NA - NA - NA Franklin Templeton Investments 200 10 - NA - NA - NA Subtotal 5,393 Total City Day Population Source: City of Dublin Office of Economic Development 6,796 7,343 6,557 202 317 Employer 2017 2018 2019 2020 Estimated Estimated Estimated Estimated Number of Number of Number of Number of Employees Rank Employees Rank Employees Rank Employees Rank United States Government & Federal Correction Institute 2,100 1 2,100 1 1,450 1 1,400 1 County of Alameda 860 3 870 4 975 4 1,165 2 Dublin Unified School District 975 2 1,007 2 1,096 3 1,115 3 Ross Stores Headquarters 800 4 950 3 1,100 2 1,100 4 Patelco Credit Union - NA - NA - NA 380 8 Zeiss Meditec 481 5 465 5 450 6 450 6 Kaiser Permanente - NA - NA 600 5 510 5 Target Stores 350 8 325 9 380 9 380 8 Snowflake, Inc. - NA - NA - NA - NA TriNet - NA 343 8 400 8 400 7 City of Dublin 377 7 433 6 400 7 332 10 SAP (Formerly: Sybase Corporation) NA - NA NA NA De Silva Gates Construction 300 9 NA NA NA Whole Foods NA 240 NA 350 10 NA Callidus Cloud 400 6 NA NA NA Micro Dental Laboratories - NA - NA - NA - NA Safeway 280 10 - NA - NA - NA Taleo - NA - NA - NA - NA Franklin Templeton Investments - NA - NA - NA - NA Subtotal 6,923 6,733 7,201 7,232 203 318 Employer CITY OF DUBLIN, CALIFORNIA Principal Employers Current Year and Prior Year (Dollars in thousands) (Continued) 2021 2022 Estimated Estimated Number of Number of Employees Rank Employees Rank United States Government & Federal Correction Institute 1,608 1 1,589 1 County of Alameda 1,165 2 1,307 2 Dublin Unified School District 1,070 4 1,200 3 Ross Stores Headquarters 1,100 3 1,160 4 Patelco Credit Union 404 7 831 5 Zeiss Meditec 620 5 692 6 Kaiser Permanente 600 6 601 7 Target Stores 350 9 344 8 Snowflake, Inc. - NA 250 9 TriNet 363 8 215 10 City of Dublin 250 10 NA SAP (Formerly: Sybase Corporation) NA NA De Silva Gates Construction NA NA Whole Foods NA NA Callidus Cloud NA NA Micro Dental Laboratories - NA - NA Safeway - NA - NA Taleo - NA - NA Franklin Templeton Investments - NA - NA Subtotal 7,530 8,189 204 319 This page intentionally left blank 205 320 CITY OF DUBLIN CALIFORNIA Full -Time Equivalent City and Contract Government Employees by Function Last Ten Fiscal Years Function General government City Manager Administrative Services Economic Development Disaster Preparedness 2013 2014 2015 2016 9.59 8.25 8.59 8.84 11.50 11.75 11.75 11.75 2.50 3.50 3.50 3.50 0.59 0.33 0.33 0.33 Public Safety Police 59.00 60.00 60.00 61.00 Fire 39.64 39.90 39.91 39.91 Transportation Public Works 5.45 7.18 9.45 7.95 Streets Maintenance 10.08 10.32 14.08 11.60 Engineering 9.00 9.00 8.00 8.00 Health and welfare Environmental 2.59 2.59 1.50 1.50 Housing 2.25 2.50 2.50 2.56 Waste Management 1.08 1.08 1.83 1.83 Culture and leisure services Parks Community Services Facility and Park Maintenance Library Services Community Development Planning & Building Total 22.20 24.87 22.76 24.76 10.10 11.65 13.07 15.55 0.37 0.37 0.38 0.38 22.45 23.45 24.45 24.64 208.39 216.74 222.10 224.10 Source: City of Dublin Administrative Services Department Note: Include Full Time, Part Time, Temporary, and Contract Employees 206 321 2017 2018 2019 2020 2021 2022 9.84 10.84 11.40 11.70 19.15 22.15 12.00 12.00 12.00 12.00 8.90 8.90 3.50 3.50 3.80 3.80 2.10 2.10 0.33 0.33 0.25 0.25 0.75 0.75 61.00 63.00 65.00 67.00 67.00 71.00 39.99 39.59 39.58 39.58 39.56 39.56 5.70 4.70 6.60 6.60 5.45 5.45 17.25 22.09 22.27 22.27 18.00 20.82 10.75 10.75 9.25 9.25 10.25 10.55 3.00 3.00 2.60 2.60 2.30 2.00 1.75 1.75 1.90 1.90 1.85 1.85 0.33 0.33 0.35 0.35 0.10 0.10 26.02 24.18 23.10 23.10 22.00 23.00 15.68 17.45 17.27 17.27 18.27 16.70 0.42 0.42 0.00 0.00 0.00 0.00 27.39 28.68 28.38 27.24 23.82 24.55 234.95 242.61 243.75 244.91 239.50 249.48 207 322 Function/Program CITY OF DUBLIN CALIFORNIA Operating Indicators by Function/Program Last Ten Fiscal Years 2013 2014 2015 2016 Police: Calls for Service 34,966 34,567 32,496 35,005 Citations Issued 8,699 8,530 7,175 7,087 Arrests 1,419 1,934 1,091 1,225 Fire: Emergency calls 2,688 2,859 2,667 2,734 Inspections 3,538 3,664 3,948 4,304 Building Plan Reviews and Consultations 1,492 1,561 1,072 1,633 Public Works: Bike Path Maintenance (hours) 668 749 416 799 Street Sign Maintenance (number of signs) 205 426 368 510 Curb Painting (linear feet) 6,400 5,808 32,512 2,922 Replace Street Asphalt (square feet) 37,000 18,112 15,800 31,000 Street Sweeping (curb miles) 5,901 5,931 5,953 5,993 Parks and Community Services: Museum Visitors 8,612 8,256 5,272 3,591 Afterschool Recreation (participants/day) 228 322 364 363 Preschool Classes Participants 571 430 327 335 Youth Basketball League Participants 812 911 994 1,074 Senior Center Average Daily Attendance 211 220 233 236 Community Development: Planning Applications 77 59 56 52 Building Permits 2,425 2,443 2,068 2,812 Building Inspections 26,045 22,345 20,197 20,784 Source: City of Dublin 208 323 2017 2018 2019 2020 2021 2022 38,688 38,568 38,480 34,643 30,018 30,414 7,164 7,051 7,968 5,806 5,582 5,367 1,315 1,653 1,821 1,510 1,514 1,496 2,848 3,247 3,245 3,443 3,692 4,797 4,141 4,034 4,284 2,964 2,628 1,875 1,654 1,195 797 490 606 873 695 742 969 863 874 1,071 359 1,838 2,569 546 664 428 3,846 3,216 3,893 14,502 123 305 73,436 75,087 1,636,012 2,270,000 117,767 36,695 6,026 8,033 7,936 7,210 8,146 8,733 3,525 3,422 2,757 2,011 147 560 367 405 416 334 649 528 158 131 160 185 98 308 1,156 1,035 1,075 792 0 683 274 279 299 245 222 166 58 48 31 40 52 44 2,806 2,803 2,350 1,866 2,393 2,437 25,186 25,574 20,951 13,339 10,759 14,178 209 324 CITY OF DUBLIN, CALIFORNIA Capital Asset Statistics by Function/Program Last Ten Fiscal Years Fiscal Year 2013 2014 2015 2016 Function/Program Public safety: Police stations 1 1 1 1 Fire stations 3 3 3 3 Public works: Street Lights 4,354 4,513 4,520 4,530 Miles of Streets 116 120 120 120 Miles of curbs 242 248 248 248 Traffic Signals 91 93 93 94 City Street Trees 7,408 7,477 7,521 8,556 City Landscape (acres) 67 69 70 74 Parks and recreation: Number of Community Facilities 7 7 6 6 Number of City Parks 17 18 18 18 Acres of City Parks 166 171 171 171 Acres of Open Space 125 125 125 125 Source: City of Dublin 210 325 Fiscal Year 2017 2018 2019 2020 2021 2022 1 1 1 1 1 1 3 3 3 3 3 3 4,540 4,631 4,631 4,736 5,131 5,095 127 128 151 151 151 148 254 256 305 305 305 305 95 97 98 98 98 98 8,526 8,776 9,263 12,355 12,208 13,130 74 103 107 150 176 178 7 7 7 7 7 7 18 20 21 23 23 25 171 200 210 223 223 267 125 125 125 125 125 125 211 326 CITY OF DUBLIN, CALIFORNIA Top 25 Sales Tax Producers 2021-22 Business Name Airport Appliance All Natural Stone East Bay Best Buy Carl Zeiss Meditec USA Curtis Blue Line Dick's Sporting Goods Dougherty Road Shell Dublin Buick/GMC/Chevrolet/h Dublin Hyundai Genesis Dublin Nissan Dublin Infiniti Eastbay Motorcars Fallon Gateway Chevron Graybar Electric Honda Lowes Mazda Nordstrom Rack Pace Supply Corp Safeway Safeway Fuel Station Target Tesla Motors Toyota Volkswagen WHCI Plumbing Supply Compa Business Category Household Appliance Store Home Centers Electronics/Appliances Store Health/Medical Machinery, Equipment, and Supplies Sporting Goods/Bike Store Service Station Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Used Car dealer Service Station Electrical Equipment Motor Vehicle Dealer Lumber/Building Materials Motor Vehicle Dealer Family Apparel Plumbing/Electrical Supplies Grocery/Liquor Stores Service Stations Discount Dept Stores Motor Vehicle Dealer Motor Vehicle Dealer Motor Vehicle Dealer Plumbing/Electrical Supplies Source: City of Dublin Office of Economic Development 212 327 CITY OF DUBLIN, CALIFORNIA Miscellaneous Statistical Data June 30, 2022 General Date of Incorporation February 1, 1982 Form of Government Council/ Manager Total Population (Estimated per the California Dept. of Finance, January 1, 2021) 71,674 Number of Registered Voters 34,350 Employees, City, and Contract (Full Time Equivalent) 249.48 Area (Square Miles) 15.23 Parks and Recreation Parks 25 Acres in Parks 267 Acres in Open Space 125 Public Education Elementary Schools 7 K-8 1 Middle Schools 2 High School 1 Continuation High School 1 Under Construction (Emerald High) 1 School Enrollment 12,896 Police Protection Number of Stations Police Personnel (Full Time Equivalent) Fire Protection Number of Stations Fire Personnel (Full Time Equivalent) 1 71 3 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 213 328 Attachment #3 (0) ► BADAWI &ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS December 2, 2022 To the Honorable Mayor and Members of the City Council of the City of Dublin City, California We have audited the financial statements of the City of Dublin (City) as of and for the year ended June 30, 2022, and have issued our report thereon dated December 2, 2022. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility in Relation to the Financial Statement Audit and the Single Audit As communicated in our engagement letter dated July 29, 2022, our responsibility, as described by professional standards, is to form and express an opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. 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. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 329 Attachment #3 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 We conducted our audit consistent with the planned scope and timing we previously communicated to you. Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence. Significant Risks Identified We have identified the following significant risks: • Risk of Management Override of Internal Controls - A risk of management override of internal controls exists at any entity where management can change or decide not to perform that entity's internal controls. • Revenue Recognition Risk - Errors in revenue recognition can affect bond covenant ratios and the net position of the City. Qualitative Aspects of the Entity's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during the year ended June 30, 2022. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on 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 markedly from management's current judgments. 330 Attachment #3 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 The most sensitive accounting estimates affecting the financial statements are investment valuations, capital asset depreciation and useful life, and pension and other post -employment benefits (OPEB) plan assumptions. Management's estimate of investment valuations, capital assets depreciation and useful life, and pension and OPEB plan assumptions are based on historical useful lives of such assets, actuarial assumptions, and the City's investment custodians, respectively. We evaluated the key factors and assumptions used to develop the estimate of investment valuations, capital assets depreciation and useful life, and pension and OPEB plan assumptions and determined that they are reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City's financial statements relate to: • Summary of Significant Accounting Policies • Cash and Investments • Long-term Debt • Capital Assets • Employee Retirement Plans • Other Post -Employment Benefits (OPEB) Plan • Commitments and Contingencies Significant Difficulties Encountered during the Audit We encountered no significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. Uncorrected misstatements or matters underlying those uncorrected misstatements could potentially cause future -period financial statements to be materially misstated, even though the uncorrected misstatements are immaterial to the financial statements currently under audit. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit 331 Attachment #3 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 4 procedures. The following material misstatements that we identified as a result of our audit procedures were brought to the attention of, and corrected by, management: • To reverse CFD special tax remittance as of June 30, 2022. • To adjust revenue and unearned revenue related to ARPA as of June 30, 2022. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City's financial statements or the auditor's report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated December 2, 2022. Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Matters, Findings, or Issues In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City's auditors. Single Audit Compliance 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. Required Supplementary Information We applied certain limited procedures to the required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management 332 Attachment #3 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 5 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. Supplementary Information We were engaged to report on the combining and individual nonmajor fund statements and budgetary comparison schedules for the major capital project funds and nonmajor governmental funds (supplementary information) 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. Other Information Included in Annual Comprehensive Financial Report Pursuant to professional standards, our responsibility as auditors for the introductory and statistical sections, whether financial or nonfinancial, included in the City's annual comprehensive financial report, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have read the information and considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements. 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. 31. A.a. Badawi & Associates, CPAs Berkeley, California December 2, 2022 333 Attachment 4 City of Dublin Measure B Funds Dublin, California Financial Statements and Independent Auditor's Reports For the year ended June 30, 2022 J 334 City of Dublin Alameda County Transportation Commission - Measure B Funds Financial Statements For the year ended June 30, 2022 Table of Contents Page Independent Auditor's Report 1 Financial Statements: Balance Sheet 5 Statement of Revenues, Expenditures and Changes in Fund Balances 6 Notes to Financial Statements 7 Supplementary Information: Budgets and Budgetary Accounting 12 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Measure B - ACTC Streets and Roads Special Revenue Fund 13 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Measure B - ACTC Bikes and Pedestrians Special Revenue Fund 14 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 15 Report on Compliance and on Internal Control over Compliance for Measure B 17 335 1 IN I BADAWI&ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Report on the Audit of the Financial Statements Opinions We have audited 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, 2022, and the related notes to the financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the Measure B Funds of the City, as of June 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Measure B Funds of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The City's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Measure B Funds' ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 336 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 Measure B Funds' internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Measure B Funds' ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Supplementary 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 is 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 337 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, budgetary 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 2, 2022 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 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. Bile. 4 A..4 Badawi & Associates, CPAs Berkeley, California December 2, 2022 338 This page intentionally left blank 339 City of Dublin Alameda County Transportation Commission- Measure B Funds Balance Sheet June 30, 2022 ASSETS: Cash and investments Direct local distribution program receivables ACTC ACTC Streets and Bikes and Roads Pedestrians Total $ 908,466 $ 337,815 $ 1,246,281 7,735 2,802 10,537 Total assets $ 916,201 $ 340,617 $ 1,256,818 LIABILITIES: Accounts payable and accrued liabilities $ - $ 577 $ 577 Total liabilities - 577 577 Fund Balances: Restricted 916,201 340,040 1,256,241 Total fund balances 916,201 340,040 1,256,241 Total liabilities and fund balances $ 916,201 $ 340,617 $ 1,256,818 See accompanying Notes to Financial Statements. 340 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, 2022 REVENUES: Measure B revenue Interest Income ACTC ACTC Streets and Bikes and Roads Pedestrians Total $ 542,520 $ 196,506 $ 739,026 8,939 3,056 11,995 Total revenues 551,459 199,562 751,021 EXPENDITURES: Bikes and Pedestrians - 6,655 6,655 Streets and Roads 530,455 57,711 588,166 Total expenditures 530,455 64,366 594,821 REVENUES OVER (UNDER) EXPENDITURES 21,004 135,196 156,200 FUND BALANCES: Beginning of year 895,197 204,844 1,100,041 End of year $ 916,201 $ 340,040 $ 1,256,241 See accompanying Notes to Financial Statements. 341 City of Dublin Alameda County Transportation Commission - Measure B Funds Notes to Financial Statements For the year ended June 30, 2022 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. 342 City of Dublin Alameda County Transportation Commission - Measure B Funds Notes to Financial Statements For the year ended June 30, 2022 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, 2022: Cash and Investments $ 1,246,281 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 Negotiable Certificates of Deposit Bankers' Acceptance U.S. Treasury Bills and Notes U.S. Government Agency Securities California Asset Management Program Commercial Paper Time Certificates of Deposit State Local Agency Investment Fund Asset -Backed Securities Medium -Term Notes Mutual Funds Money Market Funds Municipal Securities Supranationals Maximum Maturity 5 years 180 days 5 years 5 years N/A 270 days 1 year N/A 5 years 5 years N/A N/A 5 years 5 years Minimum Credit Quality A-1 A-1 N/A N/A N/A A-1 N/A N/A AA A AAA AAA A AA Maximum Percentage of Portfolio 30% 40% No Limit 25% for callable No Limit 25 % 10% No Limit 20 % 30 % 20 % 20 % No Limit 30% Maximum Investment In One Issuer 20% 20% of Portfolio No Limit 35 % No Limit 20% of Portfolio No Limit No Limit 5% 5% 10% No Limit 5% 10% 343 City of Dublin Alameda County Transportation Commission - Measure B Funds Notes to Financial Statements For the year ended June 30, 2022 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, 2022, 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, 2022, the City invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset -Backed Securities as compared to 2.31 % in the previous year. The LAIF fair value factor of .98712 was used to calculate the fair value of the investments in LAIF. 344 City of Dublin Alameda County Transportation Commission - Measure B Funds Notes to Financial Statements For the year ended June 30, 2022 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, 2022. 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. 345 SUPPLEMENTARY INFORMATION 346 City of Dublin Alameda County Transportation Commission - Measure B Funds Supplementary Information For the year ended June 30, 2022 1. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: • Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. • The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution. • 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. • The City Manager is authorized to increase the appropriations for the following fiscal year in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to the year-end, but are expected to be expended in the next year consistent with the original purpose. • As part of the annual Budget adoption the City Council authorizes the carry-over unexpended capital project appropriations, for those projects where work and expenditures will continue in the subsequent year. • Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. • Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent with generally accepted accounting principles in the United States. 347 City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B - ACTC Streets and Roads For the year ended June 30, 2022 REVENUES: Measure B revenue Interest Income Total revenues EXPENDITURES: Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 594,000 $ 594,000 $ 542,520 $ (51,480) 3,000 3,000 8,939 5,939 597,000 597,000 551,459 (45,541) Streets and Roads 572,000 1,186,161 530,455 655,706 Total expenditures 572,000 1,186,161 530,455 655,706 Net change in fund balance $ 25,000 $ (589,161) 21,004 $ 610,165 FUND BALANCE: Beginning of year 895,197 End of year $ 916,201 348 City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure B - ACTC Bikes and Pedestrians For the year ended June 30, 2022 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Measure B revenue $ 216,000 $ 216,000 $ 196,506 $ (19,494) Interest Income 1,500 1,500 3,056 1,556 Total revenues 217,500 217,500 199,562 (17,938) EXPENDITURES: Bikes and Pedestrians 18,000 18,000 6,655 11,345 Streets and Roads 18,400 403,117 57,711 345,406 Total expenditures 36,400 421,117 64,366 356,751 Net change in fund balance $ 181,100 $ (203,617) 135,196 $ 338,813 FUND BALANCE: Beginning of year 204,844 End of year $ 340,040 349 COD ► B.ADAWI&ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS 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, 2022, and the related notes to the financial statements, and have issued our report thereon dated December 2, 2022. 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. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 350 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. 21.. Badawi & Associates, CPAs Berkeley, California December 2, 2022 351 1 COD ► BADAWL&ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER COMPLIANCE FOR MEASURE B 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 Measure B Opinion on Compliance for Measure B We have audited City of Dublin's (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission that could have a direct and material effect on its Measure B 2000 Funds (Measure B Funds) for the year ended June 30, 2022. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its Measure B Funds for the year ended June 30, 2022. Basis for Opinion on Measure B We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the agreement between the City and Alameda County Transportation Commission. Our responsibilities under those standards and are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City's Measure B Funds. Our audit does not provide a legal determination of the Measure B Funds compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's Measure B Funds. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 352 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Measure B Fund's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Measure B Fund's compliance with the requirements of the agreement between the City and Alameda County Transportation Commission. In performing an audit in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Measure B Funds' compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the agreement between the City and Alameda County Transportation Commission, but not for the purpose of expressing an opinion on the effectiveness of City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Other Matters Under Measure B, approved by the voters of Alameda County in 2000, the City has received a total of 12 months of revenue from July 2021 through June 2022. The Local Street and Roads program has received $542,520 and the Bike and Pedestrian program has received $196,506. 353 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 Report on Internal Control over Compliance Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. 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 the agreement between the City and the Alameda County Transportation Commission 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 the agreement between the City and the Alameda County Transportation Commission 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 the agreement between the City and the Alameda County Transportation Commission 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 audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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 the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 2, 2022 354 Attachment 5 City of Dublin Measure BB Funds Dublin, California Financial Statements and Independent Auditor's Reports For the year ended June 30, 2022 J 355 City of Dublin Alameda County Transportation Commission - Measure BB Funds Financial Statements For the year ended June 30, 2022 Table of Contents Page Independent Auditor's Report 1 Financial Statements: Balance Sheet 5 Statement of Revenues, Expenditures and Changes in Fund Balances 6 Notes to Financial Statements 7 Supplementary Information: Budgets and Budgetary Accounting 12 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Measure BB - ACTC Streets and Roads Special Revenue Fund 13 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual: Measure BB - ACTC Bikes and Pedestrians Special Revenue Fund 14 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 15 Report on Compliance and on Internal Control over Compliance for Measure BB 17 356 I COD BADAWI&ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Report on the Audit of the Financial Statements Opinions We have audited 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, 2022, and the related notes to the financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the Measure BB Funds of the City, as of June 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Measure BB Funds of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The City's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Measure BB Funds' ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 357 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 Measure BB Funds' internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Measure BB Funds' ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Supplementary 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 is 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 358 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, budgetary 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 2, 2022 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 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. 34. 4..4 Badawi & Associates, CPAs Berkeley, California December 2, 2022 359 This page intentionally left blank. 360 City of Dublin Alameda County Transportation Commission - Measure BB Funds Balance Sheet June 30, 2022 ASSETS: Cash and investments Direct local distribution program receivables ACTC ACTC Streets and Bikes and Roads Pedestrians Total $ 412,737 $ 295,256 $ 707,993 335,600 110,520 446,120 Total assets $ 748,337 $ 405,776 $ 1,154,113 FUND BALANCES: Restricted Total fund balances $ 748,337 $ 405,776 $ 1,154,113 $ 748,337 $ 405,776 $ 1,154,113 See accompanying Notes to Financial Statements. 361 City of Dublin Alameda County Transportation Commission - Measure BB Funds Statement of Revenues, Expenditures and Changes in Fund Balances For the year ended June 30, 2022 REVENUES: Measure BB revenue Use of money and property Total revenues EXPENDITURES: Bikes and Pedestrians ACTC ACTC Streets and Bikes and Roads Pedestrians Total $ 817,456 $ 269,205 $ 1,086,661 4,188 2,890 7,078 821,644 272,095 1,093,739 Streets and Roads 441,051 52,871 493,922 Total expenditures 441,051 52,871 493,922 REVENUES OVER (UNDER) EXPENDITURES FUND BALANCES: 380,593 219,224 599,817 Beginning of year 367,744 186,552 554,296 End of year $ 748,337 $ 405,776 $ 1,154,113 See accompanying Notes to Financial Statements. 362 City of Dublin Alameda County Transportation Commission - Measure BB Funds Notes to Financial Statements For the year ended June 30, 2022 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. 363 City of Dublin Alameda County Transportation Commission - Measure BB Funds Notes to Financial Statements For the year ended June 30, 2022 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, 2022: Cash and Investments $707,993 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. Authorized Investment Type Negotiable Certificates of Deposit Bankers' Acceptance U.S. Treasury Bills and Notes U.S. Government Agency Securities California Asset Management Program Commercial Paper Time Certificates of Deposit State Local Agency Investment Fund Asset -Backed Securities Medium -Term Notes Mutual Funds Money Market Funds Municipal Securities Supranationals Maximum Maturity 5 years 180 days 5 years 5 years N/A 270 days 1 year N/A 5 years 5 years N/A N/A 5 years 5 years Minimum Credit Quality A-1 A-1 N/A N/A N/A A-1 N/A N/A AA A AAA AAA A AA Maximum Percentage of Portfolio 30% 40% No Limit 25% for callable No Limit 25% 10% No Limit 20% 30% 20% 20% No Limit 30% Maximum Investment In One Issuer 20% 20% of Portfolio No Limit 35% No Limit 20% of Portfolio No Limit No Limit 5% 5% 10% No Limit 5% 10% 364 City of Dublin Alameda County Transportation Commission - Measure BB Funds Notes to Financial Statements For the year ended June 30, 2022 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, 2022, 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, 2022, the City had invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset -Backed Securities as compared to 2.31% in the previous year. The LAIF fair value factor of .98712 was used to calculate the fair value of the investments in LAIF. 365 City of Dublin Alameda County Transportation Commission - Measure BB Funds Notes to Financial Statements For the year ended June 30, 2022 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, 2022. 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. 366 SUPPLEMENTARY INFORMATION 367 City of Dublin Alameda County Transportation Commission - Measure BB Funds Supplementary Information For the year ended June 30, 2022 1. BUDGETS AND BUDGETARY ACCOUNTING The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: • Prior to June 30 the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. • The public is given an opportunity to comment on the budget at a noticed City Council meeting. Prior to July 1, the budget is legally enacted through passage of a resolution. • 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. • The City Manager is authorized to increase the appropriations for the following fiscal year in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to the year-end, but are expected to be expended in the next year consistent with the original purpose. • As part of the annual Budget adoption the City Council authorizes the carry-over unexpended capital project appropriations, for those projects where work and expenditures will continue in the subsequent year. • Formal budgetary integration is employed as a management control device during the year for the general fund, special revenue funds and capital projects funds. • Budgets for the general, special revenue and capital projects funds are adopted on a basis consistent with generally accepted accounting principles in the United States. 368 City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB - ACTC Streets and Roads For the year ended June 30, 2022 REVENUES: Measure BB revenue Use of money and property Total revenues EXPENDITURES: Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 533,000 $ 533,000 $ 817,456 $ 284,456 4,000 4,000 4,188 188 537,000 537,000 821,644 284,644 Streets and Roads 374,000 887,031 441,051 445,980 Total expenditures 374,000 887,031 441,051 445,980 Net change in fund balance $ 163,000 $ (350,031) 380,593 $ 730,624 FUND BALANCE: Beginning of year End of year 367,744 $ 748,337 369 City of Dublin Supplementary Information, Continued Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Measure BB - ACTC Bikes and Pedestrians For the year ended June 30, 2022 REVENUES: Measure BB revenue Use of money and property Total revenues EXPENDITURES: Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 176,000 $ 176,000 $ 269,205 $ 93,205 1,000 1,000 2,890 1,890 177,000 177,000 272,095 95,095 Streets and Roads 38,758 358,457 52,871 305,586 Total expenditures 38,758 358,457 52,871 305,586 Net change in fund balance $ 138,242 $ (181,457) 219,224 $ 400,681 FUND BALANCE: Beginning of year End of year 186,552 $ 405,776 370 COD ► B.ADAWI&ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS 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, 2022, and the related notes to the financial statements, and have issued our report thereon dated December 2, 2022. 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. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 371 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 2, 2022 372 1 (0) ► BADAWI &ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER COMPLIANCE FOR MEASURE BB 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 Measure BB Opinion on Compliance for Measure BB We have audited City of Dublin's (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission that could have a direct and material effect on its Measure BB Funds (Measure BB Funds) for the year ended June 30, 2022. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its Measure BB Funds for the year ended June 30, 2022. Basis for Opinion on Measure BB We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the agreement between the City and Alameda County Transportation Commission. Our responsibilities under those standards and are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City's Measure BB Funds. Our audit does not provide a legal determination of the Measure BB Funds compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's Measure BB Funds. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 373 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Measure BB Fund's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Measure BB Fund's compliance with the requirements of the agreement between the City and Alameda County Transportation Commission. In performing an audit in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Measure BB Funds' compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the agreement between the City and Alameda County Transportation Commission, but not for the purpose of expressing an opinion on the effectiveness of City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Other Matters 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 2021 through June 2022. The Local Street and Roads program has received $817,456 and the Bike and Pedestrian program has received $269,205. 374 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 Report on Internal Control over Compliance Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. 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 the agreement between the City and the Alameda County Transportation Commission 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 the agreement between the City and the Alameda County Transportation Commission 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 the agreement between the City and the Alameda County Transportation Commission 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 audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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 the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose. Badawi & Associates, CPAs Berkeley, California December 2, 2022 375 Attachment 6 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Dublin, California Financial Statements and Independent Auditor's Reports For the year ended June 30, 2022 J 376 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Financial Statements For the year ended June 30, 2022 Table of Contents Page Independent Auditor's Report 1 Financial Statements: Balance Sheet 5 Statement of Revenues, Expenditures and Changes in Fund Balance 6 Notes to Financial Statements 7 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 11 Report on Compliance and Internal Control over Compliance for Measure F 13 377 1 toy BADAWI &ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Report on the Audit of the Financial Statements Opinions We have audited 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, 2022, and the related notes to the financial statements as listed in the table of contents. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the VRF Fund of the City, as of June 30, 2022, and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the VRF Fund of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements The City's management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the VRF Fund's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Address: 2855 Telegraph Avenue, Suite 312 Berkelelc CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 378 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 VRF Fund's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the VRF Fund's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. 379 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 2, 2022 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 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. 3u1sux 4 A46004/ Badawi & Associates, CPAs Berkeley, California December 2, 2022 380 This page intentionally left blank. 381 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Balance Sheet June 30, 2022 ASSETS: Cash and investments Direct local distribution program receivables Total assets LIABILITIES: $ 197,081 49,101 $ 246,182 Other accrued liabilities $ 3,748 Total liabilities 3,748 Fund Balance: Restricted Total fund balance 242,434 $ 246,182 See accompanying Notes to Financial Statements. 382 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Statement of Revenues, Expenditures and Changes in Fund Balance For the year ended June 30, 2022 REVENUES: Measure F revenues Use of money and property $ 287,282 2,421 Total revenues 289,703 EXPENDITURES: Contractual services Streets and roads 246,927 18,821 Total expenditures 265,748 REVENUES OVER EXPENDITURES 23,955 FUND BALANCE: Beginning of year 218,479 End of year $ 242,434 See accompanying Notes to Financial Statements. 383 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2022 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. 384 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2022 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: • Interest Rate Risk • Credit 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: • Local Road Improvement and Repair Program (60 percent) • Transit for Congestion Relief (25 percent) • Local Transportation Technology (10 percent) • Pedestrian and Bicyclist Access and Safety Program (5 percent) 385 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2022 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, 2022: Cash and Investments $ 197,081 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. Authorized Investment Type Negotiable Certificates of Deposit Bankers' Acceptance U.S. Treasury Bills and Notes U.S. Government Agency Securities California Asset Management Program Commercial Paper Time Certificates of Deposit State Local Agency Investment Fund Asset -Backed Securities Medium -Term Notes Mutual Funds Money Market Funds Municipal Securities Supranationals Maximum Maturity 5 years 180 days 5 years 5 years N/A 270 days 1 year N/A 5 years 5 years N/A N/A 5 years 5 years Minimum Credit Quality A-1 A-1 N/A N/A N/A A-1 N/A N/A AA A AAA AAA A AA Maximum Percentage of Portfolio 30% 40% No Limit 25% for callable No Limit 25% 10% No Limit 20% 30% 20% 20% No Limit 30% Maximum Investment In One Issuer 20% 20% of Portfolio No Limit 35% No Limit 20% of Portfolio No Limit No Limit 5% 5% 10% No Limit 5% 10% 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. 386 City of Dublin Measure F Alameda County Vehicle Registration Fee Fund Notes to Financial Statements For the year ended June 30, 2022 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, 2022, 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, 2022, the City had invested in LAIF, which had invested 1.88% of the pool investment funds in Structured Notes and Asset -Backed Securities as compared to 2.31% in the previous year. The LAIF fair value factor of .98712 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, 2022. 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. 387 (0) ► BADAWI &ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS 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, 2022, and the related notes to the financial statements, and have issued our report thereon dated December 2, 2022. 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. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 388 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 2, 2022 389 1 (0) ► BADAWI &ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER COMPLIANCE FOR MEASURE F 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 Measure F Opinion on Compliance for Measure F We have audited City of Dublin's (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission that could have a direct and material effect on its Measure F Alameda County Vehicle Registration Fee Fund (VRF Fund) for the year ended June 30, 2022. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its VRF Fund for the year ended June 30, 2022. Basis for Opinion on Measure F We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the agreement between the City and Alameda County Transportation Commission. Our responsibilities under those standards and are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City's VRF Fund. Our audit does not provide a legal determination of the VRF Fund's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City's VRF Fund. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 390 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the VRF Fund's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the VRF Fund's compliance with the requirements of the agreement between the City and Alameda County Transportation Commission. In performing an audit in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the VRF Fund's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the agreement between the City and Alameda County Transportation Commission, but not for the purpose of expressing an opinion on the effectiveness of City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. 391 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 3 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 the agreement between the City and the Alameda County Transportation Commission 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 the agreement between the City and the Alameda County Transportation Commission 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 the agreement between the City and the Alameda County Transportation Commission 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 audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 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 the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose. ButooL claim Badawi & Associates, CPAs Berkeley, California December 2, 2022 392 Attachment 7 r City of Dublin Dublin, California Single Audit Report For the year ended June the year ended June 30, 2022 J 393 City of Dublin Single Audit Report For the year ended June 30, 2022 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 Report on Internal Control over Compliance in Accordance with the Uniform Guidance and on the Schedule of Expenditures of Federal Awards 3 Schedule of Expenditures of Federal Awards 7 Notes to the Schedule of Expenditures of Federal Awards 8 Schedule of Findings and Questioned Costs 9 394 1 (OD M• r BADAVVI&ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS 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, 2022, 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 2, 2022. 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. Addrr: 2855 Telegraph Avenue, Suite 312 BerkeLN CA 94705 • Phanc 510.768.8251 • foot; 510.768.8249 395 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 2 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. Butpx ci�Gu Badawi & Associates, CPAs Berkeley, California December 2, 2022 396 1 le) BADAWI&ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS REPORT ON COMPLIANCE FOR EACH FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE AND ON THE SCHEDULE OF FEDERAL 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 Opinion on Compliance for Each Major Federal Program We have audited the City of Dublin (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, 2022. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each major federal program for the year ended June 30, 2022. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); 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). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City's compliance with the compliance requirements referred to above. Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to each of the City's major federal programs. Address: 2855 Telegraph Avenue, Suite 312 Berkeleyy CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 397 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 4 Auditor's Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about City's compliance with the requirements of each major federal program. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City's internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances 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 the City's internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. 398 To the Honorable Mayor and Members of the City Council of the City of Dublin Dublin, California Page 5 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. 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. 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, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated December 2, 2022, 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 2, 2022 399 This page intentionally left blank 400 City of Dublin Schedule of Expenditures of Federal Awards For the year ended June 30, 2022 Federal Grantor/Pass-Through Grantor Program Title Assistance Listing Number Agency or Pass -Through Number Federal 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 B22-UC-060001 $ 405,780 Total U.S. Department of Housing and Urban Development 405,780 U.S. Department of the Treasury Direct Program: American Rescue Plan Act - CSLFRF - COVID-19 21.027 Not available 2,027,867 Total U.S. Department of the Treasury 2,027,867 Total Federal Expenditures $ 2,433,647 401 City of Dublin Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30, 2022 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. 402 City of Dublin Schedule of Findings and Questioned Costs For the year ended June 30, 2022 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: Internal control over financial reporting: • Material weakness(es) identified? • Significant deficiency(ies) identified? Any noncompliance material to the financial statements noted Federal Awards Internal control over major programs: • Material weakness(es) identified? • Significant deficiency(ies) identified? Type of auditor's report issued on compliance for major programs Any audit findings disclosed that are required to be reported in accordance with section 200.516(a) Identification of major programs: Assistance Listing Number Name of Federal Program or Cluster 21.027 American Rescue Plan Act - CSLFRF - COVID-19 Total Expenditures of All Major Federal Programs Total Expenditures of Federal Awards Percentage of Total Expenditures of Federal Awards Dollar threshold used to distinguish between type A and type B program Unmodified No None noted No No None noted Unmodified No Expenditures 2,027,867 2,027,867 2,433,647 83.3% $750,000 Auditee qualified as low -risk auditee under section 200.520? No 403 City of Dublin Schedule of Findings and Questioned Costs For the year ended June 30, 2022 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. 404 Attachment 8 City of Dublin Dublin, California Independent Accountants' Report on Agreed -Upon Procedures Applied to Appropriations Limit Schedule For the fiscal year ending June 30, 2023 In BADAWI&ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS 4 5 (0) ► BADAWI &ASSOCIATES CERTIFIED PUBLIC ACCOUNTANTS 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, 2023. 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, 2023, 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. Address: 2855 Telegraph Avenue, Suite 312 Berkeley, CA 94705 • Phone: 510.768.8251 • Fax: 510.768.8249 406 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. 31. 4 Ld. Badawi & Associates, CPAs Berkeley, California December 2, 2022 407 City of Dublin Appropriations Limit Schedule For the fiscal year ending June 30, 2023 Amount Source A. Appropriations limit for the year ended June 30, 2022 $ 419,772,690 Prior year resolution B. Calculation Factors: 1. Population increase % 2. Inflation increase % 3. Total adjustment factor % 0.9969 1.0755 1.0722 State Department of Finance County of Alameda B1*B2 C. Annual Adjustment Increase 30,307,588 [(B3-1)A)] D. Other Adjustments N/A E. Total Adjustments 30,307,588 (C+D) F. Appropriations limit for the year ending June 30, 2023 $ 450,080,278 (A+E) 408 City of Dublin Notes to Appropriations Limit Schedule For the fiscal year ending June 30, 2023 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 2022-2023 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 2022-2023 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, 2023. 409